Document:

EX-4.3

 Exhibit 4.3 

STATE STREET CORPORATION 

TO 
 WELLS FARGO BANK,
NATIONAL ASSOCIATION 
 Trustee 
  

 
 INDENTURE

 Subordinated Securities 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	Page	 
		
	 ARTICLE 1      DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	 	1	  
			
	 Section 101.
	  	 Definitions
	  	 	1	  
	 Section 102.
	  	 Compliance Certificates and Opinions
	  	 	7	  
	 Section 103.
	  	 Form of Documents Delivered to Trustee
	  	 	7	  
	 Section 104.
	  	 Acts of Holders; Record Dates
	  	 	8	  
	 Section 105.
	  	 Notices, Etc., to Trustee and Company
	  	 	10	  
	 Section 106.
	  	 Notice to Holders; Waiver
	  	 	10	  
	 Section 107.
	  	 Conflict with Trust Indenture Act
	  	 	10	  
	 Section 108.
	  	 Effect of Headings and Table of Contents
	  	 	11	  
	 Section 109.
	  	 Successors and Assigns
	  	 	11	  
	 Section 110.
	  	 Separability Clause
	  	 	11	  
	 Section 111.
	  	 Benefits of Indenture
	  	 	11	  
	 Section 112.
	  	 Governing Law
	  	 	11	  
	 Section 113.
	  	 Legal Holidays
	  	 	11	  
		
	 ARTICLE 2      SECURITY FORMS
	  	 	11	  
			
	 Section 201.
	  	 Forms Generally
	  	 	11	  
	 Section 202.
	  	 Form of Face of Security
	  	 	12	  
	 Section 203.
	  	 Form of Reverse of Security
	  	 	13	  
	 Section 204.
	  	 Form of Legend for Global Securities
	  	 	17	  
	 Section 205.
	  	 Form of Trustee’s Certificate of Authentication
	  	 	17	  
		
	 ARTICLE 3      THE SECURITIES
	  	 	18	  
			
	 Section 301.
	  	 Amount Unlimited; Issuable in Series
	  	 	18	  
	 Section 302.
	  	 Denominations
	  	 	20	  
	 Section 303.
	  	 Execution, Authentication, Delivery and Dating
	  	 	20	  
	 Section 304.
	  	 Temporary Securities
	  	 	22	  
	 Section 305.
	  	 Registration, Registration of Transfer and Exchange
	  	 	22	  
	 Section 306.
	  	 Mutilated, Destroyed, Lost and Stolen Securities
	  	 	24	  
	 Section 307.
	  	 Payment of Interest; Interest Rights Preserved
	  	 	24	  
	 Section 308.
	  	 Persons Deemed Owners
	  	 	25	  
	 Section 309.
	  	 Cancellation
	  	 	26	  
	 Section 310.
	  	 Computation of Interest
	  	 	26	  
		
	 ARTICLE 4      SATISFACTION AND DISCHARGE
	  	 	26	  
			
	 Section 401.
	  	 Satisfaction and Discharge of Indenture
	  	 	26	  
	 Section 402.
	  	 Application of Trust Money
	  	 	27	  
		
	 ARTICLE 5      REMEDIES
	  	 	27	  
			
	 Section 501.
	  	 Events of Default
	  	 	27	  
	 Section 502.
	  	 Acceleration of Maturity; Rescission and Annulment
	  	 	28	  
	 Section 503.
	  	 Collection of Indebtedness and Suits for Enforcement by Trustee
	  	 	29	  

  
 i 

							
	 Section 504.
	  	 Trustee May File Proofs of Claim
	  	 	31	  
	 Section 505.
	  	 Trustee May Enforce Claims Without Possession of Securities
	  	 	31	  
	 Section 506.
	  	 Application of Money Collected
	  	 	32	  
	 Section 507.
	  	 Limitation on Suits
	  	 	32	  
	 Section 508.
	  	 Unconditional Right of Holders to Receive Principal, Premium and Interest
	  	 	32	  
	 Section 509.
	  	 Restoration of Rights and Remedies
	  	 	33	  
	 Section 510.
	  	 Rights and Remedies Cumulative
	  	 	33	  
	 Section 511.
	  	 Delay or Omission Not Waiver
	  	 	33	  
	 Section 512.
	  	 Control by Holders
	  	 	33	  
	 Section 513.
	  	 Waiver of Past Defaults
	  	 	33	  
	 Section 514.
	  	 Undertaking for Costs
	  	 	34	  
	 Section 515.
	  	 Waiver of Usury, Stay or Extension Laws
	  	 	34	  
		
	 ARTICLE 6      THE TRUSTEE
	  	 	34	  
			
	 Section 601.
	  	 Certain Duties and Responsibilities
	  	 	34	  
	 Section 602.
	  	 Notice of Defaults
	  	 	35	  
	 Section 603.
	  	 Certain Rights of Trustee
	  	 	35	  
	 Section 604.
	  	 Not Responsible for Recitals or Issuance of Securities
	  	 	36	  
	 Section 605.
	  	 May Hold Securities
	  	 	36	  
	 Section 606.
	  	 Money Held in Trust
	  	 	36	  
	 Section 607.
	  	 Compensation and Reimbursement
	  	 	36	  
	 Section 608.
	  	 Conflicting Interests
	  	 	37	  
	 Section 609.
	  	 Corporate Trustee Required; Eligibility
	  	 	37	  
	 Section 610.
	  	 Resignation and Removal; Appointment of Successor
	  	 	37	  
	 Section 611.
	  	 Acceptance of Appointment by Successor
	  	 	38	  
	 Section 612.
	  	 Merger, Conversion, Consolidation or Succession to Business
	  	 	39	  
	 Section 613.
	  	 Preferential Collection of Claims Against Company
	  	 	40	  
	 Section 614.
	  	 Appointment of Authenticating Agent
	  	 	40	  
		
	 ARTICLE 7      HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	  	 	42	  
			
	 Section 701.
	  	 Company to Furnish Trustee Names and Addresses of Holders
	  	 	42	  
	 Section 702.
	  	 Preservation of Information; Communications to Holders
	  	 	42	  
	 Section 703.
	  	 Reports by Trustee
	  	 	42	  
	 Section 704.
	  	 Reports by Company
	  	 	43	  
		
	 ARTICLE 8      CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
	  	 	43	  
			
	 Section 801.
	  	 Company May Consolidate, Etc., Only on Certain Terms
	  	 	43	  
	 Section 802.
	  	 Successor Substituted
	  	 	44	  
		
	 ARTICLE 9      SUPPLEMENTAL INDENTURES
	  	 	44	  
			
	 Section 901.
	  	 Supplemental Indentures Without Consent of Holders
	  	 	44	  
	 Section 902.
	  	 Supplemental Indentures With Consent of Holders
	  	 	45	  
	 Section 903.
	  	 Execution of Supplemental Indentures
	  	 	46	  
	 Section 904.
	  	 Effect of Supplemental Indentures
	  	 	46	  
	 Section 905.
	  	 Conformity with Trust Indenture Act
	  	 	46	  
	 Section 906.
	  	 Reference in Securities to Supplemental Indentures
	  	 	47	  
		
	 ARTICLE 10    COVENANTS
	  	 	47	  

  
 ii 

							
			
	 Section 1001.
	  	 Payment of Principal, Premium and Interest
	  	 	47	  
	 Section 1002.
	  	 Maintenance of Office or Agency
	  	 	47	  
	 Section 1003.
	  	 Money for Securities Payments to Be Held in Trust
	  	 	48	  
	 Section 1004.
	  	 Statement by Officers as to Default
	  	 	49	  
	 Section 1005.
	  	 Existence
	  	 	49	  
	 Section 1006.
	  	 [OMITTED.]
	  	 	49	  
	 Section 1007.
	  	 [OMITTED.]
	  	 	49	  
	 Section 1008.
	  	 Waiver of Certain Covenants
	  	 	49	  
		
	 ARTICLE 11    REDEMPTION OF SECURITIES
	  	 	49	  
			
	 Section 1101.
	  	 Applicability of Article
	  	 	50	  
	 Section 1102.
	  	 Election to Redeem; Notice to Trustee
	  	 	50	  
	 Section 1103.
	  	 Selection by Trustee of Securities to Be Redeemed
	  	 	50	  
	 Section 1104.
	  	 Notice of Redemption
	  	 	51	  
	 Section 1105.
	  	 Deposit of Redemption Price
	  	 	51	  
	 Section 1106.
	  	 Securities Payable on Redemption Date
	  	 	51	  
	 Section 1107.
	  	 Securities Redeemed in Part
	  	 	52	  
		
	 ARTICLE 12    SINKING FUNDS
	  	 	52	  
			
	 Section 1201.
	  	 Applicability of Article
	  	 	52	  
	 Section 1202.
	  	 Satisfaction of Sinking Fund Payments with Securities
	  	 	52	  
	 Section 1203.
	  	 Redemption of Securities for Sinking Fund
	  	 	53	  
		
	 ARTICLE 13    DEFEASANCE AND COVENANT DEFEASANCE
	  	 	53	  
			
	 Section 1301.
	  	 Company’s Option to Effect Defeasance or Covenant Defeasance
	  	 	53	  
	 Section 1302.
	  	 Defeasance and Discharge
	  	 	53	  
	 Section 1303.
	  	 Covenant Defeasance
	  	 	54	  
	 Section 1304.
	  	 Conditions to Defeasance or Covenant Defeasance
	  	 	54	  
	 Section 1305.
	  	 Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions
	  	 	56	  
	 Section 1306.
	  	 Reinstatement
	  	 	57	  
		
	 ARTICLE 14    SUBORDINATION OF SECURITIES
	  	 	57	  
			
	 Section 1401.
	  	 Agreement That Securities be Subordinate
	  	 	57	  
	 Section 1402.
	  	 Subordination to Senior Indebtedness
	  	 	57	  
	 Section 1403.
	  	 Payment of Senior Indebtedness of Certain Amounts Received by Securityholders
	  	 	59	  
	 Section 1404.
	  	 Notice to Trustee of Specified Events; Reliance on Certificate of Liquidating Agent
	  	 	59	  
	 Section 1405.
	  	 Subrogation
	  	 	60	  
	 Section 1406.
	  	 Obligation to Pay Not Impaired
	  	 	60	  
	 Section 1407.
	  	 Reliance by Senior Indebtedness on Subordination Provisions
	  	 	61	  
	 Section 1408.
	  	 Certain Payments and Credits Permitted
	  	 	61	  
	 Section 1409.
	  	 Subordination Not to be Prejudiced by Certain Acts
	  	 	61	  
	 Section 1410.
	  	 Trustee Authorized to Effectuate Subordination
	  	 	62	  
	 Section 1411.
	  	 Trustee’s Rights Regarding Senior Indebtedness Held by It
	  	 	62	  
	 Section 1412.
	  	 Trustee and Paying Agents Not Chargeable with Knowledge Until Notice
	  	 	62	  

  
 iii 

							
	 Section 1413.
	  	 Limitation on Securing Securities
	  	 	62	  
	 Section 1414.
	  	 Limitation on Premature Deposit of Funds
	  	 	63	  
	 Section 1415.
	  	 Securities to Rank Pari Passu with Existing Subordinated Indebtedness
	  	 	63	  

  
 iv 

 SUBORDINATED INDENTURE, dated as of October 31, 2014, between State Street Corporation, a
corporation duly organized and existing under the laws of the Commonwealth of Massachusetts (herein called the “Company”), having its principal office at One Lincoln Street, Boston, Massachusetts, and Wells Fargo Bank, National
Association, a national banking association duly organized and existing under the laws of the United States of America, as Trustee (herein called the “Trustee”). 

RECITALS OF THE COMPANY 
 The
Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured debentures, notes or other evidences of indebtedness (herein called the “Securities”), to be issued in
one or more series as in this Indenture provided. 
 All things necessary to make this Indenture a valid agreement of the Company, in
accordance with its terms, have been done. 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 

For and in consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually agreed, for the equal and
proportionate benefit of all Holders of the Securities or of series thereof, as follows: 
 ARTICLE 1 

DEFINITIONS AND OTHER PROVISIONS 

OF GENERAL APPLICATION 
 Section 101.
Definitions. 
 For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires: 

 

	(1)	the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular; 

 

	(2)	all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; 

 

	(3)	all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles, and, except as otherwise herein expressly provided, the term
“generally accepted accounting principles” with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted at the date of such computation; 

 

	(4)	unless the context otherwise requires, any reference to an “Article” or a “Section” refers to an Article or a Section, as the case may be, of this Indenture; and 

	(5)	the words “herein”, “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

 “Act”, when used with respect to any Holder, has the meaning specified in Section 104. 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 

“Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 614 to act on behalf of the Trustee to
authenticate Securities of one or more series. 
 “Bank” means State Street Bank and Trust Company and its successors (whether by
consolidation, merger, conversion or transfer of substantially all their assets and business or otherwise) so long as State Street Bank and Trust Company or any such successor is a Subsidiary. 

“Board of Directors” means either the board of directors of the Company or any duly authorized committee of that board. 

“Board Resolution” means a copy of a resolution certified by the Clerk or an Assistant Clerk of the Company to have been duly
adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee. 

“Business Day”, when used with respect to any Place of Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in that Place of Payment are authorized or obligated by law or executive order to close. 

“Commission” means the Securities and Exchange Commission, from time to time constituted, created under the Exchange Act, or, if at
any time after the execution of this instrument 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. 

“Company” means the Person named as the “Company” in the first paragraph of this instrument until a successor Person shall
have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person. 

“Company Request” or “Company Order” means a written request or order signed in the name of the Company by its Chairman of
the Board, its Vice Chairman of the Board, its President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Clerk or an Assistant Clerk, and delivered to the Trustee. 

“Corporate Trust Office” means the principal corporate trust office of the Trustee in the City of New York, New York at which at any
particular time its corporate trust business shall be administered. 

  
 - 2 - 

 “corporation” means a corporation, association, company, limited liability company,
joint-stock company, trust, trust company or business trust. 
 “Covenant Defeasance” has the meaning specified in
Section 1303. 
 “Default” has the meaning specified in Section 503. “Defaulted Interest” has the meaning
specified in Section 307. “Defeasance” has the meaning specified in Section 1302. 
 “Depositary” means, with
respect to Securities of any series issuable in whole or in part in the form of one or more Global Securities, a clearing agency registered under the Exchange Act that is designated to act as Depositary for such Securities as contemplated by
Section 301. 
 “Event of Default” has the meaning specified in Section 501. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any statute successor thereto, in each case as amended
from time to time. 
 “Existing Subordinated Indebtedness” means the 3.10% Senior Subordinated Notes Due 2023. 

“Expiration Date” has the meaning specified in Section 104. 

“Global Security” means a Security that evidences all or part of the Securities of any series and bears the legend set forth in
Section 204 (or such legend as may be specified as contemplated by Section 301 for such Securities). 
 “Holder” means a
Person in whose name a Security is registered in the Security Register. 
 “Indenture” means this instrument as originally
executed and as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern this instrument and any such supplemental indenture, respectively. The term “Indenture” shall also include the terms of particular series of
Securities established as contemplated by Section 301. 
 “interest”, when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity, means interest payable after Maturity. 
 “Interest Payment Date”,
when used with respect to any Security, means the Stated Maturity of an installment of interest on such Security. 
 “Investment
Company Act” means the Investment Company Act of 1940, as amended, and any statute successor thereto, in each case as amended from time to time. 

“Maturity”, when used with respect to any Security, means the date on which the principal of such Security or an installment of
principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 

  
 - 3 - 

 “Notice of Default” means a written notice of the kind specified in
Section 503(3)(D). 
 “Officers’ Certificate” means a certificate signed by the Chairman of the Board, a Vice Chairman
of the Board, the President or a Vice President, and by the Treasurer, an Assistant Treasurer, the Clerk or an Assistant Clerk, of the Company, and delivered to the Trustee. One of the officers signing an Officers’ Certificate given pursuant to
Section 1004 shall be the principal executive, financial or accounting officer of the Company. 
 “Opinion of Counsel” means
a written opinion of counsel, who may be counsel for the Company, and who shall be acceptable to the Trustee. 
 “Original Issue
Discount Security” means any Security which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 502. 

“Outstanding”, when used with respect to Securities, means, as of the date of determination, all Securities theretofore
authenticated and delivered under this Indenture, except: 
  

	 	(1)	Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation; 

  

	 	(2)	Securities for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the
Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities; provided that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor
satisfactory to the Trustee has been made; 

  

	 	(3)	Securities as to which Defeasance has been effected pursuant to Section 1302; and 

  

	 	(4)	Securities which have been paid pursuant to Section 306 or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in
respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such Securities are valid obligations of the Company; 

provided, however, that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given, made or taken any
request, demand, authorization, direction, notice, consent, waiver or other action hereunder as of any date, (A) the principal amount of an Original Issue Discount Security which shall be deemed to be Outstanding shall be the amount of the
principal thereof which would be due and payable as of such date upon acceleration of the Maturity thereof to such date pursuant to Section 502, (B) if, as of such date, the principal amount payable at the Stated Maturity of a Security is
not determinable, the principal 

  
 - 4 - 

 
amount of such Security which shall be deemed to be Outstanding shall be the amount as specified or determined as contemplated by Section 301, (C) the principal amount of a Security
denominated in one or more foreign currencies or currency units which shall be deemed to be Outstanding shall be the U.S. dollar equivalent, determined as of such date in the manner provided as contemplated by Section 301, of the principal
amount of such Security (or, in the case of a Security described in Clause (A) or (B) above, of the amount determined as provided in such Clause), and (D) Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice,
consent, waiver or other action, only Securities which the Trustee knows to be so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction
of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor. 

“Paying Agent” means any Person authorized by the Company to pay the principal of or any premium or interest on any Securities on
behalf of the Company. 
 “Person” means any individual, corporation, partnership, joint venture, trust, trust company,
unincorporated organization or government or any agency or political subdivision thereof. 
 “Place of Payment”, when used with
respect to the Securities of any series, means the place or places where the principal of and any premium and interest on the Securities of that series are payable as specified as contemplated by Section 301. 

“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 306 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security. 
 “Redemption Date”, when used with respect to any
Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture. 
 “Redemption Price”, when
used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture. 
 “Regular
Record Date” for the interest payable on any Interest Payment Date on the Securities of any series means the date specified for that purpose as contemplated by Section 301. 

“Responsible Officer”, when used with respect to the Trustee, means any assigned by the Trustee to administer corporate trust
matters and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his or her knowledge of and familiarity with the particular subject. 

  
 - 5 - 

 “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture. 
 “Securities Act” means the Securities Act
of 1933, as amended and any statute successor thereto, in each case as amended from time to time. 
 “Security Register” and
“Security Registrar” have the respective meanings specified in Section 305. 
 “Senior Indebtedness” means
the principal of and premium, if any, and interest on (1) (A) indebtedness of the Company for money borrowed; (B) similar obligations of the Company arising from off-balance sheet guarantees and direct credit substitutes, and
(C) all obligations of the Company for claims in respect of derivative products such as interest rate and foreign exchange contracts, commodity contracts and similar arrangements (and for purposes of this definition, “claim” shall
have the meaning assigned thereto in Section 101(4) of the Bankruptcy Code of 1978, as amended and in effect on the date of execution of this Indenture), and (2) renewals, extensions or deferrals of any indebtedness or obligation described
in clauses (1) (A), (B) and (C) in each case, whether outstanding on the date of execution of this Indenture or thereafter created, assumed or incurred, provided that in each case Senior Indebtedness shall not include
(x) the Securities; (y) the Existing Subordinated Indebtedness; and (z) such other indebtedness of the Company as is by its terms expressly stated not to be senior in right of payment to, or to rank pari passu with, the Securities or
the other securities referred to in clause (y). 
 The term “indebtedness of the Company for money borrowed” means any obligation of, or
any obligation guaranteed by, the Company for the repayment of money borrowed, whether or not evidenced by bonds, debentures, notes or other written instruments, and any deferred obligation for the payment of the purchase price of property or
assets. 
 “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to
Section 307. 
 “Stated Maturity”, when used with respect to any Security or any installment of principal thereof or interest
thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable. 

“stock” means all shares, interests, participations or other equivalents in the equity interests (however designated) of a Person.

 “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is owned, directly or indirectly, by
the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock” means stock which ordinarily has voting power for the election of directors,
managers or trustees, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. 

“Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of which this instrument was executed;
provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended. 

  
 - 6 - 

 “Trustee” means the Person named as the “Trustee” in the first paragraph of
this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee hereunder, and if at any time there
is more than one such Person, “Trustee” as used with respect to the Securities of any series shall mean the Trustee with respect to Securities of that series. 

“U.S. Government Obligation” has the meaning specified in Section 1304. 

“Vice President”, when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a
number or a word or words added before or after the title “vice president”. 
 Section 102. Compliance Certificates and Opinions. 

Upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee such certificates and opinions as may be required under the Trust Indenture Act. Each such certificate or opinion shall be given in the form of an Officers’ Certificate, if to be given by an officer of the Company, or an
Opinion of Counsel, if to be given by counsel, and shall comply with the requirements of the Trust Indenture Act and any other requirements set forth in this Indenture. 

Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (except for certificates
provided for in Section 1004) shall include, 
  

	(1)	a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto; 

 

	(2)	a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 

 

	(3)	a statement that, in the opinion of each such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has
been complied with; and 

  

	(4)	a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with. 

Section 103. Form of Documents Delivered to Trustee. 

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that
all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 

  
 - 7 - 

 Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which
his certificate or opinion is based are erroneous. Any such certificate or opinion of counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company
stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to
such matters are erroneous. 
 Where any Person is required to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 

Section 104. Acts of Holders; Record Dates. 

Any request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Indenture to be given,
made or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agent duly appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are
herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 601) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section. 
 The
fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also
constitute sufficient proof of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 

The ownership of Securities shall be proved by the Security Register. 

Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future
Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such Security. 
 The Company may set any day as a record date for the
purpose of determining the Holders of Outstanding Securities of any series entitled to give, make or take any request, demand, 

  
 - 8 - 

 
authorization, direction, notice, consent, waiver or other action provided or permitted by this Indenture to be given, made or taken by Holders of Securities of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph shall not apply with respect to, the giving or making of any notice, declaration, request or direction referred to in the next paragraph. If any record date is set pursuant
to this paragraph, the Holders of Outstanding Securities of the relevant series on such record date, and no other Holders, shall be entitled to take the relevant action, whether or not such Holders remain Holders after such record date; provided
that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities of such series on such record date. Nothing in this paragraph shall be
construed to prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person
be cancelled and of no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite principal amount of Outstanding Securities of the relevant series on the date such action is taken.
Promptly after any record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Trustee in writing and to
each Holder of Securities of the relevant series in the manner set forth in Section 106. 
 The Trustee may set any day as a record
date for the purpose of determining the Holders of Outstanding Securities of any series entitled to join in the giving or making of (i) any Notice of Default, (ii) any declaration of acceleration referred to in Section 502,
(iii) any request to institute proceedings referred to in Section 507(2) or (iv) any direction referred to in Section 512, in each case with respect to Securities of such series. If any record date is set pursuant to this
paragraph, the Holders of Outstanding Securities of such series on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request or direction, whether or not such Holders remain Holders after such record
date; provided that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding Securities of such series on such record date. Nothing in this
paragraph shall be construed to prevent the Trustee from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no
action by any Person be cancelled and of no effect), and nothing in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite principal amount of Outstanding Securities of the relevant series on the date
such action is taken. Promptly after any record date is set pursuant to this paragraph, the Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given
to the Company in writing and to each Holder of Securities of the relevant series in the manner set forth in Section 106. 
 With
respect to any record date set pursuant to this Section, the party hereto which sets such record dates may designate any day as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or later day;
provided that no such change shall be effective unless notice of the proposed new Expiration Date is given to the other party hereto in writing, and to each Holder of Securities of the relevant series in the manner set forth in Section 106, on
or prior to the existing Expiration Date. If an Expiration Date is not designated with respect to any record date set pursuant to this Section, the party hereto which set such record date 

  
 - 9 - 

 
shall be deemed to have initially designated the 180th day after such record date as the Expiration Date with respect thereto, subject to its right to change the Expiration Date as provided in
this paragraph. Notwithstanding the foregoing, no Expiration Date shall be later than the 180th day after the applicable record date. 

Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with regard to any particular Security may do so with
regard to all or any part of the principal amount of such Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any part of such principal amount. 

Section 105. Notices, Etc., to Trustee and Company. 

Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this
Indenture to be made upon, given or furnished to, or filed with, 
  

	(1)	the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at its Corporate Trust Office, Attention: Corporate Trust
Services, or 

  

	(2)	the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to the Company addressed to
it at the address of its principal office specified in the first paragraph of this instrument or at any other address previously furnished in writing to the Trustee by the Company. 

Section 106. Notice to Holders; Waiver. 

Where this Indenture provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing (including telecopy) and mailed, first-class postage prepaid, to each Holder affected by such event, at his address as it appears in the Security Register, not later than the latest date (if any), and not earlier than the
earliest date (if any), prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 

In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by
mail, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder. 

Section 107. Conflict with Trust Indenture Act. 

  
 - 10 - 

 If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act which is required under such Act to be a part of and govern this Indenture, the latter provision shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act which may be so modified or
excluded, the latter provision shall be deemed to apply to this Indenture as so modified or to be excluded, as the case may be. 
 Section 108. Effect
of Headings and Table of Contents. 
 The Article and Section headings herein and the Table of Contents are for convenience only and shall
not affect the construction hereof. 
 Section 109. Successors and Assigns. 

All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 

Section 110. Separability Clause. 
 In case
any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 111. Benefits of Indenture. 

Nothing in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto and their
successors hereunder, the holders of Senior Indebtedness and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture. 

Section 112. Governing Law. 
 This Indenture
and the Securities shall be governed by and construed in accordance with the law of the State of New York. 
 Section 113. Legal Holidays. 

In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the Securities (other than a provision of any Security which specifically states that such provision shall apply in lieu of this Section)) payment of interest or principal
(and premium, if any) need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on the Interest Payment Date or Redemption Date, or
at the Stated Maturity. 
 ARTICLE 2 

SECURITY FORMS 
 Section 201. Forms
Generally. 

  
 - 11 - 

 The Securities of each series shall be in substantially the form set forth in this Article, or in
such other form as shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted
by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or Depositary therefor or as may,
consistently herewith, be determined by the officers executing such Securities, as evidenced by their execution thereof. If the form of Securities of any series is established by action taken pursuant to a Board Resolution, a copy of an appropriate
record of such action shall be certified by the Clerk or an Assistant Clerk of the Company and delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section 303 for the authentication and delivery of such
Securities. 
 The definitive Securities shall be printed, lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers executing such Securities, as evidenced by their execution of such Securities. 
 Section 202. Form of
Face of Security. 
 [Insert any legend required by the Internal Revenue Code and the Regulations thereunder.] 

[STATE STREET CORPORATION] 

[Title of Security] 
  

			
	No.             	 	$             

 State Street Corporation, a corporation duly organized and existing under the laws of The Commonwealth of
Massachusetts (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to
             or registered assigns, the principal sum of              Dollars on [if the Security is to bear interest prior to
Maturity, insert —, and to pay interest thereon from              or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on
             and              in each year, commencing             ,
at the rate of         % per annum, until the principal hereof is paid or made available for payment [if applicable, insert —, provided that any principal and premium, and any such installment of
interest, which is overdue shall bear interest at the rate of         % per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they
are paid or made available for payment, and such interest shall be payable on demand]. 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 Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the              or
             (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 will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the 

  
 - 12 - 

 
Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture]. 

[If the Security is not to bear interest prior to Maturity, insert — The principal of this Security shall not bear interest except in the
case of a default in payment of principal upon acceleration, upon redemption or at Stated Maturity and in such case the overdue principal and any overdue premium shall bear interest at the rate of         %
per annum (to the extent that the payment of such interest shall be legally enforceable), from the dates such amounts are due until they are paid or made available for payment. Interest on any overdue principal or premium shall be payable on demand.
Any such interest on overdue principal or premium which is not paid on demand shall bear interest at the rate of         % per annum (to the extent that the payment of such interest on interest shall be
legally enforceable), from the date of such demand until the amount so demanded is paid or made available for payment. Interest on any overdue interest shall be payable on demand.] 

Payment of the principal of (and premium, if any) and [if applicable, insert — any such] interest on this Security will be made at the
office or agency of the Company maintained for that purpose in             , 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 [if applicable, insert —; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the
Security Register]. 
 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has
been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

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

Dated: 
  

			
	 
		
	By.	 	 

  

	
	Attest:
	   

 Section 203. Form of Reverse of Security. 

  
 - 13 - 

 This Security is one of a duly authorized issue of securities of the Company (herein called the
“Securities”), issued and to be issued in one or more series under an Indenture, dated as of                 , 2014 (herein called the
“Indenture”, which term shall have the meaning assigned to it in such instrument), between the Company and Wells Fargo Bank, National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee
under the Indenture), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, the holders of Senior Debt and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof [if applicable, insert —, limited in aggregate principal amount of
$    ]. 
 [If applicable, insert — The Securities of this series are subject to redemption upon not less than 30
days’ notice by mail, [if applicable, insert— (1) on              in any year commencing with the year              and
ending with the year              through operation of the sinking fund for this series at a Redemption Price equal to 100% of the principal amount, and (2)] at any time [if applicable,
insert — on or after             , 20    ], as a whole or in part, at the election of the Company, at the following Redemption Prices (expressed as percentages of
the principal amount): If redeemed [if applicable insert — on or before         ,         %, and if redeemed] during the 12-month period beginning of the years
indicated, 
  

							
	 Year
	 	 Redemption Price
	 	 Year
	  	 Redemption Price

and thereafter at a Redemption Price equal to         % of the principal amount, together in the case of any such
redemption [if applicable, insert — (whether through operation of the sinking fund or otherwise)] with accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to such Redemption Date will be
payable to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of business on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture.] 

[If applicable, insert — The Securities of this series are subject to redemption upon not less than 30 days’ notice by mail, (1) on
in any year commencing with the year and ending with the year              through operation of the sinking fund for this series at the Redemption Prices for redemption through operation of
the sinking fund (expressed as percentages of the principal amount) set forth in the table below, and (2) at any time [if applicable, insert -on or after     ], as a whole or in part, at the election of the Company, at the
Redemption Prices for redemption otherwise than through operation of the sinking fund (expressed as percentages of the principal amount) set forth in the table below: If redeemed during the 12- month period beginning of the years indicated, 

 

					
	 Year
	 	 Redemption Price for

Redemption Through

Operation of the Sinking

Fund
	 	 Redemption Price for

Redemption Otherwise Than

Through Operation of the

Sinking Fund

  
 - 14 - 

 and thereafter at a Redemption Price equal to         % of the principal
amount, together in the case of any such redemption (whether through operation of the sinking fund or otherwise) with accrued interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to such Redemption Date
will be payable to the Holders of such Securities, or one or more Predecessor Securities, of record at the close of business on the relevant Record Dates referred to on the face hereof, all as provided in the Indenture.] 

[If applicable, insert — Notwithstanding the foregoing, the Company may not, prior to
            , redeem any Securities of this series as contemplated by [if applicable, insert — Clause (2) of] the preceding paragraph as a part of, or in anticipation of, any
refunding operation by the application, directly or indirectly, of moneys borrowed having an interest cost to the Company (calculated in accordance with generally accepted financial practice) of less than
        % per annum.] 
 [If applicable, insert — The sinking fund for this series provides for
the redemption on              in each year beginning with the year and ending with the year              of [if applicable,
insert — not less than $             (“mandatory sinking fund”) and not more than ] $             aggregate
principal amount of Securities of this series. Securities of this series acquired or redeemed by the Company otherwise than through [if applicable, insert — mandatory] sinking fund payments may be credited against subsequent [if applicable,
insert — mandatory] sinking fund payments otherwise required to be made [if applicable, insert —, in the inverse order in which they become due].] 

[If the Security is subject to redemption of any kind, insert — In the event of redemption of this Security in part only, a new Security
or Securities of this series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof.] 

[The indebtedness evidenced by this Security is, to the extent provided in the Indenture, subordinate and subject in right of payment to the
prior payment in full of all Senior Indebtedness of the Company. The Securities will rank pari passu with Existing Subordinated Indebtedness of the Company. Each Holder of this Security, by accepting the same, (i) agrees to and shall be bound
by such provisions, (ii) authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the subordination so provided and (iii) appoints the Trustee his attorney-in-fact for any and
all such purposes.] 
 [Payment of principal on the Securities may be accelerated only in the case of certain events involving the
bankruptcy, insolvency or reorganization of the Company. There is no right of acceleration in the case of a default in the performance of any covenant of the Company, including the payment of principal or interest. In case a Default with respect to
this Security shall occur and be continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the holders of the Securities through appropriate judicial proceedings. The Indenture defines a Default to
include, without limitation, default in the payment of principal of these Securities when due and default for 30 days in any payment of interest on any Security of this series.] 

[If applicable, insert — The Indenture contains provisions for defeasance at any time of [the entire indebtedness of this Security] [or] [certain
restrictive covenants and Events of Default with respect to this Security] [, in each case] upon compliance with certain conditions set forth in the Indenture.] 

  
 - 15 - 

 [If the Security is not an Original Issue Discount Security, insert — If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.] 

[If the Security is an Original Issue Discount Security, insert — If an Event of Default with respect to Securities of this series shall
occur and be continuing, an amount of principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. Such amount shall be equal to — insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and payable and (ii) of interest on any overdue principal, premium and interest (in each case to the extent that the payment of such interest shall be legally
enforceable), all of the Company’s obligations in respect of the payment of the principal of and premium and interest, if any, on the Securities of this series shall terminate.] 

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

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

  
 - 16 - 

 As provided in the Indenture and subject to certain limitations therein set forth, the transfer
of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are
payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more
new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

The Securities of this series are issuable only in registered form without coupons in denominations of
$             and any integral multiple thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary. 
 All terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture. 
 Section 204. Form of Legend for Global Securities. 

Unless otherwise specified as contemplated by Section 301 for the Securities evidenced thereby, every Global Security authenticated and
delivered hereunder shall bear a legend in substantially the following form: 
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN
THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 Section 205.
Form of Trustee’s Certificate of Authentication. 
 The Trustee’s certificates of authentication shall be in substantially the
following form: 

  
 - 17 - 

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

					
	 	 	,
		 	As Trustee
		
	By:	 	 
		 	Authorized Officer

 ARTICLE 3 

THE SECURITIES 
 Section 301. Amount
Unlimited; Issuable in Series. 
 The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture
is unlimited. 
 The Securities may be issued in one or more series. There shall be established in or pursuant to a Board Resolution and,
subject to Section 303, set forth, or determined in the manner provided, in an Officers’ Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series, 

 

	(1)	the title of the Securities of the series (which shall distinguish the Securities of the series from Securities of any other series); 

 

	(2)	any limit upon the aggregate principal amount of the Securities of the series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to Section 304, 305, 306, 906 or 1107 and except for any Securities which, pursuant to Section 303, are deemed never to have been authenticated and
delivered hereunder); 

  

	(3)	the Person to whom any interest on a Security of the series shall be payable, if other than the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest; 

  

	(4)	the date or dates on which the principal of any Securities of the series is payable; 

  

	(5)	the rate or rates at which any Securities of the series shall bear interest, if any, the date or dates from which any such interest shall accrue, the Interest Payment Dates on which any such interest shall be payable
and the Regular Record Date for any such interest payable on any Interest Payment Date; 

  

	(6)	the place or places where the principal of and any premium and interest on any Securities of the series shall be payable; 

  
 - 18 - 

	(7)	the period or periods within which, the price or prices at which and the terms and conditions upon which any Securities of the series may be redeemed, in whole or in part, at the option of the Company and, if other than
by a Board Resolution, the manner in which any election by the Company to redeem the Securities shall be evidenced; 

  

	(8)	the obligation, if any, of the Company to redeem or purchase any Securities of the series pursuant to any sinking fund or analogous provisions or at the option of the Holder thereof and the period or periods within
which, the price or prices at which and the terms and conditions upon which any Securities of the series shall be redeemed or purchased, in whole or in part, pursuant to such obligation; 

 

	(9)	if other than denominations of $1,000 and any integral multiple thereof, the denominations in which any Securities of the series shall be issuable; 

 

	(10)	if the amount of principal of or any premium or interest on any Securities of the series may be determined with reference to an index or pursuant to a formula, the manner in which such amounts shall be determined;

  

	(11)	if other than the currency of the United States of America, the currency, currencies or currency units in which the principal of or any premium or interest on any Securities of the series shall be payable and the manner
of determining the equivalent thereof in the currency of the United States of America for any purpose, including for purposes of the definition of “Outstanding” in Section 101; 

 

	(12)	if the principal of or any premium or interest on any Securities of the series is to be payable, at the election of the Company or the Holder thereof, in one or more currencies or currency units other than that or those
in which such Securities are stated to be payable, the currency, currencies or currency units in which the principal of or any premium or interest on such Securities as to which such election is made shall be payable, the periods within which and
the terms and conditions upon which such election is to be made and the amount so payable (or the manner in which such amount shall be determined); 

  

	(13)	if other than the entire principal amount thereof, the portion of the principal amount of any Securities of the series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to
Section 502; 

  

	(14)	if the principal amount payable at the Stated Maturity of any Securities of the series will not be determinable as of any one or more dates prior to the Stated Maturity, the amount which shall be deemed to be the
principal amount of such Securities as of any such date for any purpose thereunder or hereunder, including the principal amount thereof which shall be due and payable upon any Maturity other than the Stated Maturity or which shall be deemed to be
Outstanding as of any date prior to the Stated Maturity (or, in any such case, the manner in which such amount deemed to be the principal amount shall be determined); 

 

	(15)	if applicable, that the Securities of the series, in whole or any specified part, shall be defeasible pursuant to Section 1302 or Section 1303 or both such Sections and, if other than by a Board Resolution,
the manner in which any election by the Company to defease such Securities shall be evidenced; 

  
 - 19 - 

	(16)	if applicable, that any Securities of the series shall be issuable in whole or in part in the form of one or more Global Securities and, in such case, the respective Depositaries for such Global Securities, the form of
any legend or legends which shall be borne by any such Global Security in addition to or in lieu of that set forth in Section 204 and any circumstances in addition to or in lieu of those set forth in Clause (2) of the last paragraph of
Section 305 in which any such Global Security may be exchanged in whole or in part for Securities registered, and any transfer of such Global Security in whole or in part may be registered, in the name or names of Persons other than the
Depositary for such Global Security or a nominee thereof; 

  

	(17)	any addition to or change in the Events of Default which applies to any Securities of the series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount
thereof due and payable pursuant to Section 502; 

  

	(18)	any addition to or change in the covenants set forth in Article Ten which applies to Securities of the series; and 

  

	(19)	any other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture, except as permitted by Section 901 (5)) . 

All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or
pursuant to the Board Resolution referred to above and (subject to Section 303) set forth, or determined in the manner provided, in the Officers’ Certificate referred to above or in any such indenture supplemental hereto. 

If any of the terms of the series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the Clerk or an Assistant Clerk of the Company and delivered to the Trustee at or prior to the delivery of the Officers’ Certificate setting forth the terms of the series. 

The Securities shall be subordinated in right of payment to Senior Indebtedness as provided in Article Fourteen. The Securities shall not be
superior in right of payment to and shall rank pari passu with the Existing Subordinated Indebtedness. 
 Section 302. Denominations. 

The Securities of each series shall be issuable only in registered form without coupons and only in such denominations as shall be specified as
contemplated by Section 301. In the absence of any such specified denomination with respect to the Securities of any series, the Securities of such series shall be issuable in denominations of $1,000 and any integral multiple thereof. 

Section 303. Execution, Authentication, Delivery and Dating. 

The Securities shall be executed on behalf of the Company by its Chairman of the Board, its Vice Chairman of the Board, its President or one of
its Vice Presidents, under its corporate seal reproduced thereon attested by its Clerk or one of its Assistant Clerks. The signature of any of these officers on the Securities may be manual or facsimile. 

  
 - 20 - 

 Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such
Securities. 
 At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of
any series executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver such
Securities. If the form or terms of the Securities of the series have been established by or pursuant to one or more Board Resolutions as permitted by Sections 201 and 301, in authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating, 

 

	(1)	if the form of such Securities has been established by or pursuant to Board Resolution as permitted by Section 201, that such form has been established in conformity with the provisions of this Indenture;

  

	(2)	if the terms of such Securities have been established by or pursuant to Board Resolution as permitted by Section 301, that such terms have been established in conformity with the provisions of this Indenture; and

  

	(3)	that such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding
obligations of the Company enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and
to general equity principles. 

 If such form or terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably
acceptable to the Trustee. 
 Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all Securities of a
series are not to be originally issued at one time, it shall not be necessary to deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order and Opinion of Counsel otherwise required pursuant to such
preceding paragraph at or prior to the authentication of each Security of such series if such documents are delivered at or prior to the authentication upon original issuance of the first Security of such series to be issued. 

Each Security shall be dated the date of its authentication. 

No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such
Security a certificate of authentication substantially in the form provided for herein executed by the Trustee by manual signature and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has
been 

  
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duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the
Company shall deliver such Security to the Trustee for cancellation as provided in Section 309, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be
entitled to the benefits of this Indenture. 
 Section 304. Temporary Securities. 

Pending the preparation of definitive Securities of any series, the Company may execute, and upon Company Order the Trustee shall authenticate
and deliver, temporary Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities. 

If temporary Securities of any series are issued, the Company will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of definitive Securities of such series, the temporary Securities of such series shall be exchangeable for definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Company in a Place of Payment for that series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Securities of any series, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor one or more definitive Securities of the same series, of any authorized denominations and of like tenor and aggregate principal amount. Until so exchanged, the temporary Securities of any series shall in
all respects be entitled to the same benefits under this Indenture as definitive Securities of such series and tenor. 
 Section 305. Registration,
Registration of Transfer and Exchange. 
 The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register (the
register maintained in such office and in any other office or agency of the Company in a Place of Payment being herein sometimes collectively referred to as the “Security Register”) in which, subject to such reasonable regulations as it
may prescribe, the Company shall provide for the registration of Securities and of transfers of Securities. State Street Bank and Trust Company, a trust company organized and existing under the laws of the Commonwealth of Massachusetts and having
its principal office at One Lincoln Street, Boston, Massachusetts, is hereby appointed “Security Registrar” and the Trustee is hereby initially appointed a Co-Security Registrar, in each case for the purpose of registering Securities and
transfers of Securities as herein provided. 
 Upon surrender for registration of transfer of any Security of a series at the office or
agency of the Company in a Place of Payment for that series, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of the same series, of any
authorized denominations and of like tenor and aggregate principal amount. 
 At the option of the Holder, Securities of any series may be
exchanged for other Securities of the same series, of any authorized denominations and of like tenor and aggregate principal 

  
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amount, upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive. 
 All Securities issued upon any
registration of transfer or exchange of Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or
exchange. 
 Every Security presented or surrendered for registration of transfer or for exchange shall (if so required by the Company or
the Trustee) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed, by the Holder thereof or his attorney duly authorized in writing. 

No service charge shall be made for any registration of transfer or exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 304, 906 or 1107 not involving any transfer. 

If the Securities of any series (or of any series and specified tenor) are to be redeemed in part, the Company shall not be required
(A) to issue, register the transfer of or exchange any Securities of that series (or of that series and specified tenor, as the case may be) during a period beginning at the opening of business 15 days before the day of the mailing of a notice
of redemption of any such Securities selected for redemption under Section 1103 and ending at the close of business on the day of such mailing, or (B) to register the transfer of or exchange any Security so selected for redemption in whole
or in part, except the unredeemed portion of any Security being redeemed in part. 
 The provisions of Clauses (1), (2), (3) and
(4) below shall apply only to Global Securities: 
  

	(1)	Each Global Security authenticated under this Indenture shall be registered in the name of the Depositary designated for such Global Security or a nominee thereof and delivered to such Depositary or a nominee thereof or
custodian therefor, and each such Global Security shall constitute a single Security for all purposes of this Indenture. 

  

	(2)	Notwithstanding any other provision in this Indenture, no Global Security may be exchanged in whole or in part for Securities registered, and no transfer of a Global Security in whole or in part may be registered, in
the name of any Person other than the Depositary for such Global Security or a nominee thereof unless (A) such Depositary (i) has notified the Company that it is unwilling or unable to continue as Depositary for such Global Security or
(ii) has ceased to be a clearing agency registered under the Exchange Act, (B) there shall have occurred and be continuing an Event of Default with respect to such Global Security or (C) there shall exist such circumstances, if any,
in addition to or in lieu of the foregoing as have been specified for this purpose as contemplated by Section 301. 

  

	(3)	Subject to Clause (2) above, any exchange of a Global Security for other Securities may be made in whole or in part, and all Securities issued in exchange for a Global Security or any portion thereof shall be
registered in such names as the Depositary for such Global Security shall direct. 

  
 - 23 - 

	(4)	Every Security authenticated and delivered upon registration of transfer of, or in exchange for or in lieu of, a Global Security or any portion thereof, whether pursuant to this Section, Section 304, 306, 906 or
1107 or otherwise, shall be authenticated and delivered in the form of, and shall be, a Global Security, unless such Security is registered in the name of a Person other than the Depositary for such Global Security or a nominee thereof.

 Section 306. Mutilated, Destroyed, Lost and Stolen Securities. 

If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding. 

If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any
Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona
fide purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of the same series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding. 
 In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and
payable, the Company in its discretion may, instead of issuing a new Security, pay such Security. 
 Upon the issuance of any new Security
under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith. 
 Every new Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall
constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series duly issued hereunder. 
 The provisions of this Section are exclusive and
shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 

Section 307. Payment of Interest; Interest Rights Preserved. 

Except as otherwise provided as contemplated by Section 301 with respect to any series of Securities, interest on any Security which is
payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest. 

  
 - 24 - 

 Any interest on any Security of any series which is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be
paid by the Company, at its election in each case, as provided in Clause (1) or (2) below: 
  

	(1)	The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security of such series and
the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice to the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be given to each Holder of Securities of such series in the manner set forth in Section 106, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record
Date therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date
and shall no longer be payable pursuant to the following Clause (2). 

  

	(2)	The Company may make payment of any Defaulted Interest on the Securities of any series in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed,
and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this Clause, such manner of payment shall be deemed practicable by the Trustee. 

Subject to the foregoing provisions of this Section, each Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 

Section 308. Persons Deemed Owners. 

  
 - 25 - 

 Prior to due presentment of a Security for registration of transfer, the Company, the Trustee and
any agent of the Company or the Trustee may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of and any premium and (subject to Section 307) any interest
on such Security and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 

Section 309. Cancellation. 
 All Securities
surrendered for payment, redemption, registration of transfer or exchange or for credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it.
The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person
for delivery to the Trustee) for cancellation any Securities previously authenticated hereunder which the Company has not issued and sold, and all Securities so delivered shall be promptly cancelled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of in accordance with the
Trustee’s customary procedures. 
 Section 310. Computation of Interest. 

Except as otherwise specified as contemplated by Section 301 for Securities of any series, interest on the Securities of each series shall
be computed on the basis of a 360-day year of twelve 30-day months. 
 ARTICLE 4 

SATISFACTION AND DISCHARGE 
 Section 401.
Satisfaction and Discharge of Indenture. 
 This Indenture shall upon Company Request cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein expressly provided for), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

  

	(1)	either 

 (A) all Securities theretofore authenticated and delivered (other than
(i) Securities which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 306 and (ii) Securities for whose payment money has theretofore been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 1003) have been delivered to the Trustee for cancellation; or 

(B) all such Securities not theretofore delivered to the Trustee for cancellation 

  
 - 26 - 

 (i) have become due and payable, or 

(ii) will become due and payable at their Stated Maturity within one year, or 

(iii) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice
of redemption by the Trustee in the name, and at the expense, of the Company, 
 and the Company, in the case of (i), (ii) or
(iii) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose money in an amount sufficient to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal and any premium and interest to the date of such deposit (in the case of Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; 

 

	(2)	the Company has paid or caused to be paid all other sums payable hereunder by the Company; and 

  

	(3)	the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this
Indenture have been complied with. 

 Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 607, the obligations of the Company to any Authenticating Agent under Section 614 and, if money shall have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of this
Section, the obligations of the Trustee under Section 402 and the last paragraph of Section 1003 shall survive. 
 Section 402. Application
of Trust Money. 
 Subject to the provisions of the last paragraph of Section 1003, all money deposited with the Trustee pursuant to
Section 401 shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as
the Trustee may determine, to the Persons entitled thereto, of the principal and any premium and interest for whose payment such money has been deposited with the Trustee. 

ARTICLE 5 
 REMEDIES 

Section 501. Events of Default. 
 “Event
of Default”, wherever used herein with respect to Securities of any series, means any one of the following events (whatever the reason for such Event of Default and whether it shall be occasioned by the provisions of Article Fourteen or be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 

  
 - 27 - 

	(1)	the entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or (B) a decree or order appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or all or substantially all of its property (other
than the appointment of a conservator with respect to any depository institution Subsidiary of the Company), or ordering the winding up or liquidation of its affairs, and, in the case of either clause (A) or (B), the continuance of any such
decree or order for relief or any such other decree or order unstayed and in effect for a period of 90 consecutive days; or 

  

	(2)	the commencement by the Company of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law, or the consent by it to the entry of a decree or order
for relief in respect of the Company in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law, or the consent by it to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of all or substantially all of its property (other than the appointment of a conservator with respect to any depository institution
Subsidiary of the Company), or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company in
furtherance of any such action; or 

  

	(3)	any other Event of Default provided with respect to Securities of that series. 

 Section 502. Acceleration
of Maturity; Rescission and Annulment. 
 If an Event of Default (other than an Event of Default specified in Section 501(2)) with
respect to Securities of any series at the time Outstanding occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities of that series may declare the principal
amount of all the Securities of that series (or, if any Securities of that series are Original Issue Discount Securities, such portion of the principal amount of such Securities as may be specified by the terms thereof), together with any accrued
and unpaid interest thereon, to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) shall become immediately due
and payable. If an Event of Default specified in Section 501(2) with respect to Securities of any series at the time Outstanding occurs, the principal amount of all the Securities of that series (or, if any Securities of that series are
Original Issue Discount Securities, such portion of the principal amount of such Securities as may be specified by the terms thereof) shall automatically, and without any declaration or other action on the part of the Trustee or any Holder, become
immediately due and payable. For the avoidance of doubt, upon payment of such amount, all obligations of the Company in respect of principal and interest of the Securities of such series shall terminate. 

At any time after such a declaration of acceleration with respect to Securities of any series has been made and before a judgment or decree
for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences, and, for the avoidance of doubt, any Event of Default giving rise to such declaration shall not be deemed to have occurred, if: 

  
 - 28 - 

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

 (A) all overdue
interest on all Securities of that series, 
 (B) the principal of (and premium, if any, on) any Securities of that series which have become
due otherwise than by such declaration of acceleration and any interest thereon at the rate or rates prescribed therefor in such Securities, 

(C) to the extent that payment of such interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in such
Securities, and 
 (D) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel; and 
  

	(2)	all Events of Default with respect to Securities of that series, other than the non-payment of the principal of Securities of that series which have become due solely by such declaration of acceleration, have been cured
or waived as provided in Section 513 or otherwise remedied. 

 No such rescission shall affect any subsequent default or
impair any right consequent thereon. 
 For the avoidance of doubt, the maturity of the Securities may only be accelerated upon the
occurrence of an Event of Default and in accordance with this Section 502, and may not be accelerated for any other reason. 
 Section 503.
Collection of Indebtedness and Suits for Enforcement by Trustee. 
 The Company covenants that if 

 

	(1)	default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days, or 

 

	(2)	default is made in the payment of the principal of (or premium, if any, on) any Security at the Maturity thereof, 

the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such
Securities for principal, including any sinking fund payment or analogous obligations (and premium, if any) and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal (and premium,
if any) and on any overdue interest, at the rate or rates prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 

  
 - 29 - 

 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name
and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor
upon such Security or Securities and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated. 

 

	(3)	“Default”, wherever used herein with respect to Securities of any series, means any one of the following events (whatever the reason for such Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body): 

(A) an Event of Default with respect to any Securities of that series specified in Section 501; or 

(B) the events referred to in subsections 503(1) through (2) above with respect to any Securities of that series; or 

(C) default in the deposit of any sinking fund payment, when and as due by the terms of a Security of that series; or 

(D) default in the performance, or breach, of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty a
default in whose performance or whose breach is elsewhere in this Section specifically dealt with or which has expressly been included in this Indenture solely for the benefit of series of Securities other than that series); and continuance of such
default or breach for a period of 90 days after there has 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 principal amount of the Outstanding Securities
of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or 

(E) the entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Bank in an involuntary
case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or (B) a decree or order appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar
official or of all or substantially all of the property of the Bank (other than the appointment of a conservator with respect to any depositary institution Subsidiary of the Bank), or ordering the winding up or liquidation of the affairs of the
Bank, in the case of either clause (A) or clause (B), and the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of 60 consecutive days; or 

(F) the commencement by the Bank of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization
or other similar law, or the consent by it to the entry of a decree or order for relief in respect of the Bank in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law, or
the consent by the Bank to the appointment of or taking possession by a 

  
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custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Bank or of all or substantially all of the property of the Bank (other than the appointment of a
conservator with respect to any depositary institution Subsidiary of the Bank), or the making by the Bank of an assignment for the benefit of creditors pursuant to applicable state law, or the admission by it in writing of its inability to pay its
debts generally as they become due, or the taking of corporate action by the Bank in furtherance of any such action; or 
 (G) any other
Default provided with respect to Securities of that series. 
 If a Default with respect to Securities of any series occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and
enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 

Section 504. Trustee May File Proofs of Claim. 

In case of any judicial proceeding relative to the Company (or any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or otherwise, to take any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee
any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 607. 

No provision of this Indenture shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding; provided, however, that
the Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other similar committee. 

Section 505. Trustee May Enforce Claims Without Possession of Securities. 

All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of
any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

  
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 Section 506. Application of Money Collected. 

Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money on account of principal or any premium or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid: 

FIRST: To the payment of all amounts due the Trustee under Section 607; and 

SECOND: Subject to Article Fourteen, to the payment of the amounts then due and unpaid for principal of and any premium and interest on the
Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal and any premium and interest,
respectively. 
 Section 507. Limitation on Suits. 

No Holder of any Security of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless 
  

	(1)	such Holder has previously given written notice to the Trustee of a continuing Default with respect to the Securities of that series; 

 

	(2)	the Holders of not less than 25% in principal amount of the Outstanding Securities of that series shall have made written request to the Trustee to institute proceedings in respect of such Default in its own name as
Trustee hereunder; 

  

	(3)	such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request; 

 

	(4)	the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and 

 

	(5)	no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities of that series;

 it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and ratable benefit of all of such Holders. 
 Section 508. Unconditional Right of
Holders to Receive Principal, Premium and Interest. 
 Notwithstanding any other provision in this Indenture, the Holder of any Security
shall have the right, which is absolute and unconditional, to receive payment of the principal of and any 

  
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premium and (subject to Section 307) interest on such Security on the respective Stated Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date) and to
institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 
 Section 509.
Restoration of Rights and Remedies. 
 If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the
Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted. 

Section 510. Rights and Remedies Cumulative. 

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy. 
 Section 511. Delay or Omission Not Waiver. 

No delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Default shall impair
any such right or remedy or constitute a waiver of any such Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be. 
 Section 512. Control by Holders. 

The Holders of a majority in principal amount of the Outstanding Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such series, provided that 

 

	(1)	such direction shall not be in conflict with any rule of law or with this Indenture, and 

  

	(2)	the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction. 

Section 513. Waiver of Past Defaults. 

  
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 The Holders of not less than a majority in principal amount of the Outstanding Securities of any
series may on behalf of the Holders of all the Securities of such series waive any past default hereunder with respect to such series and its consequences, except a default 
  

	(1)	in the payment of the principal of or any premium or interest on any Security of such series, or 

  

	(2)	in respect of a covenant or provision hereof which under Article Nine cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series affected. 

Upon any such waiver, such default shall cease to exist, and any Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. 
 Section 514.
Undertaking for Costs. 
 In any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for
any action taken, suffered or omitted by it as Trustee, a court may require any party litigant in such suit to file an undertaking to pay the costs of such suit, and may assess costs against any such party litigant, in the manner and to the extent
provided in the Trust Indenture Act; provided that neither this Section nor the Trust Indenture Act shall be deemed to authorize any court to require such an undertaking or to make such an assessment in any suit instituted by the Company. 

Section 515. Waiver of Usury, Stay or Extension Laws. 

The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent that
it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted. 
 ARTICLE 6 

THE TRUSTEE 
 Section 601. Certain Duties
and Responsibilities. 
 The duties and responsibilities of the Trustee shall be as provided by the Trust Indenture Act. Notwithstanding the
foregoing, no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if
it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. Whether or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section. 

  
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 Section 602. Notice of Defaults. 

If a default occurs hereunder with respect to Securities of any series, the Trustee shall give the Holders of Securities of such series notice
of such default as and to the extent provided by the Trust Indenture Act; provided, however, that in the case of any default of the character specified in Section 503(3) (D) with respect to Securities of such series, no such notice to
Holders shall be given until at least 60 days after the occurrence thereof. For the purpose of this Section, the term “default” means any event which is, or after notice or lapse of time or both would become, a Default with respect to
Securities of such series. 
 Section 603. Certain Rights of Trustee. 

Subject to the provisions of Section 601: 
  

	(1)	the Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 

  

	(2)	any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order, and any resolution of the Board of Directors shall be sufficiently evidenced by a Board
Resolution; 

  

	(3)	whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officers’ Certificate; 

  

	(4)	the Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it
hereunder in good faith and in reliance thereon; 

  

	(5)	the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall
have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction; 

 

	(6)	the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make
such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney; and 

  
 - 35 - 

	(7)	the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it hereunder. 

 Section 604. Not Responsible for Recitals or
Issuance of Securities. 
 The recitals contained herein and in the Securities, except the Trustee’s certificates of authentication,
shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of
the Securities. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of Securities or the proceeds thereof. 

Section 605. May Hold Securities. 
 The
Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 608 and 613, may otherwise
deal with the Company with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent. 

Section 606. Money Held in Trust. 
 Money
held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the
Company. 
 Section 607. Compensation and Reimbursement. 

The Company agrees 
  

	(1)	to pay to the Trustee from time to time reasonable compensation for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an
express trust); 

  

	(2)	except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this
Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith; and 

 

	(3)	to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration
of the trust or trusts hereunder, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. 

  
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 Section 608. Conflicting Interests. 

If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate
such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture. To the extent permitted by such Act, the Trustee shall not be deemed to have a conflicting interest
by virtue of being a trustee under this Indenture with respect to Securities of more than one series. 
 Section 609. Corporate Trustee Required;
Eligibility. 
 There shall at all times be one (and only one) Trustee hereunder with respect to the Securities of each series, which may be
Trustee hereunder for Securities of one or more other series. Each Trustee shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000. If any such Person
publishes reports of condition at least annually, pursuant to law or to the requirements of its supervising or examining authority, then for the purposes of this Section and to the extent permitted by the Trust Indenture Act, the combined capital
and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee with respect to the Securities of any series shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article. 

Section 610. Resignation and Removal; Appointment of Successor. 

No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 611. 
 The Trustee may
resign at any time with respect to the Securities of one or more series by giving written notice thereof to the Company. If the instrument of acceptance by a successor Trustee required by Section 611 shall not have been delivered to the Trustee
within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series. 

The Trustee may be removed at any time with respect to the Securities of any series by Act of the Holders of a majority in principal amount of
the Outstanding Securities of such series, delivered to the Trustee and to the Company. 
 If at any time: 

 

	(1)	the Trustee shall fail to comply with Section 608 after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or 

  
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	(2)	the Trustee shall cease to be eligible under Section 609 and shall fail to resign after written request therefor by the Company or by any such Holder, or 

 

	(3)	the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the
Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then, in any such case, (A) the Company by a Board Resolution may remove the Trustee with respect to all Securities, or (B) subject to
Section 514, any Holder who has been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect
to all Securities and the appointment of a successor Trustee or Trustees. 

 If the Trustee shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, with respect to the Securities of one or more series, the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to
the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the
Securities of any particular series) and shall comply with the applicable requirements of Section 611. If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to
the Securities of any series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 611, become the successor Trustee with respect to the Securities of such series and to that extent supersede the successor Trustee
appointed by the Company. If no successor Trustee with respect to the Securities of any series shall have been so appointed by the Company or the Holders and accepted appointment in the manner required by Section 611, any Holder who has been a
bona fide Holder of a Security of such series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities
of such series. 
 The Company shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any
series and each appointment of a successor Trustee with respect to the Securities of any series to all Holders of Securities of such series in the manner provided in Section 106. Each notice shall include the name of the successor Trustee with
respect to the Securities of such series and the address of its Corporate Trust Office. 
 Section 611. Acceptance of Appointment by Successor. 

In case of the appointment hereunder of a successor Trustee with respect to all Securities, every such successor Trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor Trustee, 

  
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such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. 
 In case
of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of one or more series shall execute
and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor
Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which
the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent
provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which
the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the appointment of such successor Trustee relates. 
 Upon request
of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in the first or second preceding
paragraph, as the case may be. 
 No successor Trustee shall accept its appointment unless at the time of such acceptance such successor
Trustee shall be qualified and eligible under this Article. 
 Section 612. Merger, Conversion, Consolidation or Succession to Business. 

Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee
had itself authenticated such Securities. 

  
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 Section 613. Preferential Collection of Claims Against Company. 

If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Securities), the Trustee shall be subject
to the provisions of the Trust Indenture Act regarding the collection of claims against the Company (or any such other obligor). 
 Section 614.
Appointment of Authenticating Agent. 
 The Trustee, with the Company’s consent, may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon original issue and upon exchange, registration of transfer or partial redemption thereof or
pursuant to Section 306, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this
Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by
Federal or State authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital
and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease to be eligible in accordance with
the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section. 

Any corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent. 

An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of 

  
 - 40 - 

 
this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give notice of such appointment in the manner provided in
Section 106 to all Holders of Securities of the series with respect to which such Authenticating Agent will serve. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers
and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section. 

The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section. 

If an appointment with respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an alternative certificate of authentication in the following form: 

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

 

					
	 	 	,
		 	As Trustee
		
	By:	 	 
		 	As Authenticating Agent
		
	By:	 	 
		 	Authorized Officer

  
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 ARTICLE 7 

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY 

Section 701. Company to Furnish Trustee Names and Addresses of Holders. 

The Company will furnish or cause to be furnished to the Trustee 
  

	(1)	semi-annually, not later than 15 days after each Regular Record Date in each year, a list, in such form as the Trustee may reasonably require, of the names and addresses of the Holders of Securities of each series as of
such Regular Record Date, and 

  

	(2)	at such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time
such list is furnished; 

 excluding from any such list names and addresses received by the Trustee in its capacity as Security Registrar.

 Section 702. Preservation of Information; Communications to Holders. 

The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 701 and the names and addresses of Holders received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 701 upon
receipt of a new list so furnished. 
 The rights of Holders to communicate with other Holders with respect to their rights under this
Indenture or under the Securities, and the corresponding rights and privileges of the Trustee, shall be as provided by the Trust Indenture Act. 

Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the
Trustee nor any agent of either of them shall be held accountable by reason of any disclosure of information as to names and addresses of Holders made pursuant to the Trust Indenture Act. 

Section 703. Reports by Trustee. 
 The
Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto. 

A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which any
Securities are listed, with the Commission and with the Company. The Company will notify the Trustee when any Securities are listed on any stock exchange. 

  
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 Reports so required to be transmitted at stated intervals of not more than 12 months shall be
transmitted no later than July 15 in each calendar year, commencing in 2015. 
 Section 704. Reports by Company. 

The Company shall file with the Trustee and the Commission, and transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant to such Act; provided that any such information, documents or reports electronically filed with the Commission pursuant to
Section 13 or 15(d) of the Exchange Act shall be deemed filed with, and delivered to the Trustee and transmitted to the Holders at the same time as filed with the Commission (it being understood that the Trustee shall have no responsibility
whatsoever to determine if any information has been filed). The Trustee’s receipt of such information, documents or reports shall not constitute constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to conclusively rely exclusively on an Officer’s Certificate). 

ARTICLE 8 
 CONSOLIDATION, MERGER,
CONVEYANCE, TRANSFER OR LEASE 
 Section 801. Company May Consolidate, Etc., Only on Certain Terms. 

The Company shall not consolidate with or merge into any other Person or convey, transfer or lease its properties and assets substantially as
an entirety to any Person, unless: 
  

	(1)	in case the Company shall consolidate with or merge into another Person or convey, transfer or lease its properties and assets substantially as an entirety to any Person, the Person formed by such consolidation or into
which the Company is merged or the Person which acquires by conveyance or transfer, or which leases, the properties and assets of the Company substantially as an entirety shall be a corporation, partnership, trust company or trust, shall be
organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, the due and punctual payment of the principal of and any premium and interest on all the Securities and the performance or observance of every covenant of this Indenture on the part of the Company to be performed or observed;

  

	(2)	immediately after giving effect to such transaction and treating any indebtedness which becomes an obligation of the Company or any Subsidiary as a result of such transaction as having been incurred by the Company or
such Subsidiary at the time of such transaction, no Default, and no event which, after notice or lapse of time or both, would become a Default, shall have happened and be continuing; and 

 

	(3)	the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required
in connection with such transaction, such supplemental indenture comply with this Article and that all conditions precedent herein provided for relating to such transaction have been complied with. 

  
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 Section 802. Successor Substituted. 

Upon any consolidation of the Company with, or merger of the Company into, any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance with Section 801, the successor Person formed by such consolidation or into which the Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this Indenture and the Securities. 
 ARTICLE 9 

SUPPLEMENTAL INDENTURES 
 Section 901.
Supplemental Indentures Without Consent of Holders. 
 Without the consent of any Holders, the Company, when authorized by a Board
Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 

 

	(1)	to evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company herein and in the Securities; or 

 

	(2)	to add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the benefit of less than all series of Securities, stating that such
covenants are expressly being included solely for the benefit of such series) or to surrender any right or power herein conferred upon the Company; or 

  

	(3)	to add any additional Defaults or Events of Default for the benefit of the Holders of all or any series of Securities (and if such additional Defaults or Events of Default are to be for the benefit of less than all
series of Securities, stating that such additional Defaults or Events of Default are expressly being included solely for the benefit of such series); or 

  

	(4)	to add or to change any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the issuance of Securities in bearer form, registrable or not registrable as to principal, and
with or without interest coupons, or to permit or facilitate the issuance of Securities in uncertificated, certificated or global form; or 

  

	(5)	to add to, change or eliminate any of the provisions of this Indenture in respect of one or more series of Securities, provided that any such addition, change or elimination (A) shall neither (i) apply to any
Security of any series issued prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor (ii) modify the rights of the Holder of any such Security with respect to such provision or (B) shall
become effective only when there is no such Security Outstanding; or 

  
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	(6)	to secure the Securities of any series or provide for guarantees of the Securities of any series; or 

  

	(7)	to establish the form or terms of Securities of any series as permitted by Sections 201 and 301; or 

  

	(8)	to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 611; 

  

	(9)	to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein, or to make any other provisions with respect to matters or questions arising
under this Indenture, provided that such action pursuant to this Clause (9) shall not adversely affect the interests of the Holders of Securities of any series in any material respect; or 

 

	(10)	to conform the text of this Indenture or the Securities of any series to any provision of the section entitled “Description of Debt Securities,” or any similarly captioned section in the prospectus, as
supplemented by any applicable prospectus supplement, relating to the offering of such series of Securities as evidenced in an Officer’s Certificate provided to the Trustee. 

Section 902. Supplemental Indentures With Consent of Holders. 

With the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of Securities of such series under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security affected thereby, 
  

	(1)	change the Stated Maturity of the principal of, or any installment of principal of or interest on, any Security, or reduce the principal amount thereof or the rate of interest thereon or any premium payable upon the
redemption thereof, or reduce the amount of the principal of an Original Issue Discount Security or any other Security which would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 502, or reduce
the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation, or change any Place of Payment where, or the coin or currency in which, any Security or any premium or 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), or modify the provisions of this Indenture with respect to the subordination of
the Securities in a manner adverse to the Holders, or 

  
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	(2)	reduce the percentage in principal amount of the Outstanding Securities of any series, 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 Indenture or certain defaults hereunder and their consequences) provided for in this Indenture, or 

  

	(3)	or modify any of the provisions of this Section, Section 513 or Section 1008, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived
without the consent of the Holder of each Outstanding Security affected thereby; provided, however, that this clause shall not be deemed to require the consent of any Holder with respect to changes in the references to “the Trustee” and
concomitant changes in this Section and Section 1008, or the deletion of this proviso, in accordance with the requirements of Sections 611 and 901(8). 

A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly been included
solely for the benefit of one or more particular series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series. 
 It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 

Section 903. Execution of Supplemental Indentures. 

In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. 

Section 904. Effect of Supplemental Indentures. 

Upon the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby. 

Section 905. Conformity with Trust Indenture Act. 

Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act. 

  
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 Section 906. Reference in Securities to Supplemental Indentures. 

Securities of any series authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities of any series so modified as to conform, in the opinion of
the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities of such series. 

ARTICLE 10 
 COVENANTS 

Section 1001. Payment of Principal, Premium and Interest. 

The Company covenants and agrees for the benefit of each series of Securities that it will duly and punctually pay the principal of and any
premium and interest on the Securities of that series in accordance with the terms of the Securities and this Indenture. 
 The Company
shall have the right to require a Holder, in connection with the payment of the principal of (and premium, if any) or interest, if any, on a Security, to present at the office or agency of the Company at which such payment is made a certificate, in
such form as the Company may from time to time prescribe, to enable the Company to determine its duties and liabilities with respect to any taxes, assessments or governmental charges which it may be required to deduct or withhold therefrom under any
present or future law of the United States of America or of any State, county, municipality or taxing authority therein or other domestic or foreign taxing authorities and the Company shall be entitled to determine its duties and liabilities with
respect to such deduction of withholding on the basis of information contained in such certificate or, if no such certificate shall be so presented, on the basis of any presumption created by any such law, and shall be entitled to act in accordance
with such determination. Notwithstanding anything to the contrary contained in this Indenture, the Company or the Paying Agent may, to the extent it is require to do so by law, deduct or withhold taxes imposed by the United States of America or
other domestic or foreign taxing authorities from the principal of (and premium, if any) and interest payments hereunder. 
 Section 1002. Maintenance
of Office or Agency. 
 The Company will maintain in each Place of Payment for any series of Securities an office or agency where Securities
of that series may be presented or surrendered for payment, where Securities of that series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of that series
and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to
receive all such presentations, surrenders, notices and demands. 

  
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 The Company may also from time to time designate one or more other offices or agencies where the
Securities of one or more series may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of
its obligation to maintain an office or agency in each Place of Payment for Securities of any series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency. 
 Section 1003. Money for Securities Payments to Be Held in Trust. 

If the Company shall at any time act as its own Paying Agent with respect to any series of Securities, it will, on or before each due date of
the principal of or any premium or interest on any of the Securities of that series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal and any premium and interest so becoming due until
such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its action or failure so to act. 

Whenever the Company shall have one or more Paying Agents for any series of Securities, it will, prior to each due date of the principal of or
any premium or interest on any Securities of that series, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be held as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or failure so to act. 
 The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will (1) comply with the provisions of the
Trust Indenture Act applicable to it as a Paying Agent and (2) during the continuance of any default by the Company (or any other obligor upon the Securities of that series) in the making of any payment in respect of the Securities of that
series, upon the written request of the Trustee, forthwith pay to the Trustee all sums held in trust by such Paying Agent for payment in respect of the Securities of that series. 

The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of or any
premium or interest on any Security of any series and remaining unclaimed for two years after such principal, premium or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and
all liability of the Company as trustee thereof, shall thereupon cease. 

  
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 Section 1004. Statement by Officers as to Default. 

The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of the Company ending after the date hereof, an
Officers’ Certificate, stating whether or not to the best knowledge of the signers thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder) and, if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may have knowledge. 

Section 1005. Existence. 
 Subject to
Article Eight, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and that of the Bank and the rights (charter and statutory) and franchises of the Company and of the
Bank; provided, however, that the Company or the Bank, as applicable, shall not be required to preserve any such right or franchise if the Company or the Bank, as applicable, shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Company and the Bank taken as a whole, and that the loss thereof is not disadvantageous in any material respect to the Holders. For the avoidance of doubt, the provisions of this Section 1005 shall not
prohibit the Company from consolidating with or merging into any other Person or from conveying, transferring or leasing its property and assets substantially as an entirety to any Person as otherwise permitted pursuant to Article Eight. 

Section 1006. [OMITTED.] 
 Section 1007.
[OMITTED.] 
 Section 1008. Waiver of Certain Covenants. 

Except as otherwise specified as contemplated by Section 301 for Securities of such series, the Company may, with respect to the
Securities of any series, omit in any particular instance to comply with any term, provision or condition set forth in any covenant provided pursuant to Section 301(18), 901(2) or 901(7) for the benefit of the Holders of such series if before
the time for such compliance the Holders of at least a majority in principal amount of the Outstanding Securities of such series shall, by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such term, provision 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 term, provision or condition shall remain in full force and effect. 
 ARTICLE 11 

REDEMPTION OF SECURITIES 

  
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 Section 1101. Applicability of Article. 

Securities of any series which are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 301 for such Securities) in accordance with this Article. 
 Section 1102. Election to Redeem;
Notice to Trustee. 
 The election of the Company to redeem any Securities shall be evidenced by a Board Resolution or in another manner
specified as contemplated by Section 301 for such Securities. In case of any redemption at the election of the Company of the Securities of any series (including any such redemption affecting only a single Security), the Company shall, at least
60 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date, of the principal amount of Securities of such series to be redeemed and, if
applicable, of the tenor of the Securities to be redeemed. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company
shall furnish the Trustee with an Officers’ Certificate evidencing compliance with such restriction. 
 Section 1103. Selection by Trustee of
Securities to Be Redeemed. 
 If less than all the Securities of any series are to be redeemed (unless all the Securities of such series and
of a specified tenor are to be redeemed or unless such redemption affects only a single Security), the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, by such method as the Trustee shall deem fair and appropriate and which may provide for the selection for redemption of a portion of the principal amount of any Security of such series,
provided that the unredeemed portion of the principal amount of any Security shall be in an authorized denomination (which shall not be less than the minimum authorized denomination) for such Security. If less than all the Securities of such series
and of a specified tenor are to be redeemed (unless such redemption affects only a single Security), the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series and specified tenor not previously called for redemption in accordance with the preceding sentence. 
 The Trustee
shall promptly notify the Company in writing of the Securities selected for redemption as aforesaid and, in case of any Securities selected for partial redemption as aforesaid, the principal amount thereof to be redeemed. 

The provisions of the two preceding paragraphs shall not apply with respect to any redemption affecting only a single Security, whether such
Security is to be redeemed in whole or in part. In the case of any such redemption in part, the unredeemed portion of the principal amount of the Security shall be in an authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security. 
 For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to
the redemption of Securities shall relate, in the case of any Securities redeemed or to be redeemed only in part, to the portion of the principal amount of such Securities which has been or is to be redeemed. 

  
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 Section 1104. Notice of Redemption. 

Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at his address appearing in the Security Register. 
 All notices of redemption shall
state: 
  

	(1)	the Redemption Date, 

  

	(2)	the Redemption Price, 

  

	(3)	if less than all the Outstanding Securities of any series consisting of more than a single Security are to be redeemed, the identification (and, in the case of partial redemption of any such Securities, the principal
amounts) of the particular Securities to be redeemed and, if less than all the Outstanding Securities of any series consisting of a single Security are to be redeemed, the principal amount of the particular Security to be redeemed,

  

	(4)	that on the Redemption Date the Redemption Price will become due and payable upon each such Security to be redeemed and, if applicable, that interest thereon will cease to accrue on and after said date,

  

	(5)	the place or places where each such Security is to be surrendered for payment of the Redemption Price, and 

  

	(6)	that the redemption is for a sinking fund, if such is the case. 

 Notice of redemption of
Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company and shall be irrevocable. 

Section 1105. Deposit of Redemption Price. 

On or prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date. 
 Section 1106. Securities Payable on Redemption Date. 

Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at
the Redemption Price therein specified, and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest) such Securities shall cease to bear interest. Upon surrender of any such

  
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Security for redemption in accordance with said notice, such Security shall be paid by the Company at the Redemption Price, together with accrued interest to the Redemption Date; provided,
however, that, unless otherwise specified as contemplated by Section 301, installments of interest whose Stated Maturity is on or prior to the Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record Dates according to their terms and the provisions of Section 307. 

If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal and any premium shall, until
paid, bear interest from the Redemption Date at the rate prescribed therefor in the Security. 
 Section 1107. Securities Redeemed in Part. 

Any Security which is to be redeemed only in part shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of the same series and of like tenor, of any authorized denomination as requested by such Holder, in aggregate principal amount equal
to and in exchange for the unredeemed portion of the principal of the Security so surrendered. 
 ARTICLE 12 

SINKING FUNDS 
 Section 1201. Applicability
of Article. 
 The provisions of this Article shall be applicable to any sinking fund for the retirement of Securities of any series except
as otherwise specified as contemplated by Section 301 for such Securities. 
 The minimum amount of any sinking fund payment provided
for by the terms of any Securities is herein referred to as a “mandatory sinking fund payment”, and any payment in excess of such minimum amount provided for by the terms of such Securities is herein referred to as an “optional
sinking fund payment”. If provided for by the terms of any Securities, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 1202. Each sinking fund payment shall be applied to the redemption of
Securities as provided for by the terms of such Securities. 
 Section 1202. Satisfaction of Sinking Fund Payments with Securities. 

The Company (1) may deliver Outstanding Securities of a series (other than any previously called for redemption) and (2) may apply as
a credit Securities of a series which have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities,
in each case in satisfaction of all or any part of any sinking fund payment with respect to any Securities of such series required to be made pursuant to the terms of such Securities as and 

  
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to the extent provided for by the terms of such Securities; provided that the Securities to be so credited have not been previously so credited. The Securities to be so credited shall be received
and credited for such purpose by the Trustee at the Redemption Price, as specified in the Securities so to be redeemed, for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

 Section 1203. Redemption of Securities for Sinking Fund. 

Not less than 45 days prior to each sinking fund payment date for any Securities, the Company will deliver to the Trustee an Officers’
Certificate specifying the amount of the next ensuing sinking fund payment for such Securities pursuant to the terms of such Securities, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities pursuant to Section 1202 and will also deliver to the Trustee any Securities to be so delivered. Not less than 30 days prior to each such sinking fund payment date, the Trustee shall
select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 1103 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 1106 and 1107. 

ARTICLE 13 
 DEFEASANCE AND
COVENANT DEFEASANCE 
 Section 1301. Company’s Option to Effect Defeasance or Covenant Defeasance. 

The Company may elect, at its option at any time, to have Section 1302 or Section 1303 applied to any Securities or any series of
Securities, as the case may be, designated pursuant to Section 301 as being defeasible pursuant to such Section 1302 or 1303, in accordance with any applicable requirements provided pursuant to Section 301 and upon compliance with the
conditions set forth below in this Article. Any such election shall be evidenced by a Board Resolution or in another manner specified as contemplated by Section 301 for such Securities. 

Section 1302. Defeasance and Discharge. 

Upon the Company’s exercise of its option (if any) to have this Section applied to any Securities or any series of Securities, as the case
may be, the Company shall be deemed to have been discharged from its obligations, and the provisions of Article Fourteen shall cease to be effective, with respect to such Securities as provided in this Section on and after the date the conditions
set forth in Section 1304 are satisfied (hereinafter called “Defeasance”). For this purpose, such Defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by such Securities and
to have satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the same), subject to the
following which shall survive until otherwise terminated or discharged hereunder: (1) the rights of Holders of such Securities to receive, solely from the trust fund described in Section 1304 and as more fully set forth in such Section,
payments in respect of the principal of and any 

  
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premium and interest on such Securities when payments are due, (2) the Company’s obligations with respect to such Securities under Sections 304, 305, 306, 1002 and 1003, (3) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and (4) this Article. Subject to compliance with this Article, the Company may exercise its option (if any) to have this Section applied to any Securities notwithstanding
the prior exercise of its option (if any) to have Section 1303 applied to such Securities. For the avoidance of doubt, following a Defeasance of any series of Securities, payment of the Securities of such series may not be accelerated because
of an Event of Default. 
 Section 1303. Covenant Defeasance. 

Upon the Company’s exercise of its option (if any) to have this Section applied to any Securities or any series of Securities, as the case
may be, (1) the Company shall be released from its obligations under Section 801(3), Section 1008, and any covenants provided pursuant to Section 301(18), 901(2) or 901(7) for the benefit of the Holders of such Securities,
(2) the occurrence of any event specified in Section 503(3)(D) (with respect to any of Section 801(3), Section 1008, and any such covenants provided pursuant to Section 301(18), 901(2) or 901(7)), and the occurrence of any
event specified pursuant to Section 501(3) shall be deemed not to be or result in an Event of Default and (3) the provisions of Article Fourteen shall cease to be effective, in each case with respect to such Securities as provided in this
Section on and after the date the conditions set forth in Section 1304 are satisfied (hereinafter called “Covenant Defeasance”). For this purpose, such Covenant Defeasance means that, with respect to such Securities, the Company may
omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such specified Section (to the extent so specified pursuant to Section 503(3)(D)) or Article Fourteen, whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or Article or by reason of any reference in any such Section or Article to any other provision herein or in any other document, but the remainder of this Indenture and such
Securities shall be unaffected thereby. For the avoidance of doubt, following a Covenant Defeasance with respect to any Securities or series of Securities, the Trustee may not exercise any right of the Trustee or the Holders under Section 503
because of Default specified in clause (2) of this Section 1303. 
 Section 1304. Conditions to Defeasance or Covenant Defeasance. 

The following shall be the conditions to the application of Section 1302 or Section 1303 to any Securities or any series of
Securities, as the case may be: 
  

	(1)	 The Company shall irrevocably have deposited or caused to be deposited with the Trustee (or another trustee which satisfies the requirements
contemplated by Section 609 and agrees to comply with the provisions of this Article applicable to it) as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the
benefits of the Holders of such Securities, (A) money in an amount, or (B) U.S. Government Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later
than one day before the due date of any payment, money in an amount, or (C) a combination thereof, in each case sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the 

  
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Trustee, to pay and discharge, and which shall be applied by the Trustee (or any such other qualifying trustee) to pay and discharge, the principal of and any premium and interest on such
Securities on the respective Stated Maturities, in accordance with the terms of this Indenture and such Securities. Before such deposit, the Company may make arrangements satisfactory to the Trustee for the redemption of Securities at a future date
or dates in accordance with Article Eleven, which shall be given effect in applying the foregoing. As used herein, “U.S. Government Obligation” means (x) any security which is (i) a direct obligation of the United States of
America for the payment of which the full faith and credit of the United States of America is pledged or (ii) an obligation of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which, in either case (i) or (ii) , is not callable or redeemable at the option of the issuer thereof, and (y) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act) as custodian with respect to any U.S. Government Obligation which is specified in Clause (x) above and held by such bank for the account of the
holder of such depositary receipt, or with respect to any specific payment of principal of or interest on any U.S. Government Obligation which is so specified and held, provided that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment of principal or interest evidenced by such depositary
receipt. 
  

	(2)	In the event of an election to have Section 1302 apply to any Securities or any series of Securities, as the case may be, the Company shall have delivered to the Trustee an Opinion of Counsel stating that
(A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (B) since the date of this instrument, there has been a change in the applicable Federal income tax law, in either case (A) or
(B) to the effect that, and based thereon such opinion shall confirm that, the Holders of such Securities will not recognize gain or loss for Federal income tax purposes as a result of the deposit, Defeasance and discharge to be effected with
respect to such Securities and will be subject to Federal income tax on the same amount, in the same manner and at the same times as would be the case if such deposit, Defeasance and discharge were not to occur. 

 

	(3)	In the event of an election to have Section 1303 apply to any Securities or any series of Securities, as the case may be, the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that the
Holders of such Securities will not recognize gain or loss for Federal income tax purposes as a result of the deposit and Covenant Defeasance to be effected with respect to such Securities and will be subject to Federal income tax on the same
amount, in the same manner and at the same times as would be the case if such deposit and Covenant Defeasance were not to occur. 

  

	(4)	[OMITTED.] 

  

	(5)	No event which is, or after notice or lapse of time or both would become, a Default with respect to such Securities or any other Securities shall have occurred and be continuing at the time of such deposit or, with
regard to any such event specified in Sections 501(1) and (2), at any time on or prior to the 90th day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until after such 90th day).

  
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	(6)	Such Defeasance or Covenant Defeasance shall not cause the Trustee to have a conflicting interest within the meaning of the Trust Indenture Act. 

 

	(7)	Such Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under, any other agreement or instrument to which the Company is a party or by which it is bound.

  

	(8)	Such Defeasance or Covenant Defeasance shall not result in the trust arising from such deposit constituting an investment company within the meaning of the Investment Company Act unless such trust shall be registered
under such Act or exempt from registration thereunder. 

  

	(9)	At the time of such deposit, (A) no default in the payment of any principal of or premium or interest on any Senior Indebtedness shall have occurred and be continuing, (B) no event of default with respect to
any Senior Indebtedness shall have resulted in such Senior Indebtedness becoming, and continuing to be, due and payable prior to the date on which it would otherwise have become due and payable (unless payment of such Senior Indebtedness has been
made or duly provided for), and (C) no other event of default with respect to any Senior Indebtedness shall have occurred and be continuing permitting (after notice or lapse of time or both) the holders of such Senior Indebtedness (or a trustee
on behalf of such holders) to declare such Senior Indebtedness due and payable prior to the date on which it would otherwise have become due and payable. 

  

	(10)	The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent with respect to such Defeasance or Covenant Defeasance have been
complied with. 

 Section 1305. Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions. 

Subject to the provisions of the last paragraph of Section 1003, all money and U.S. Government Obligations (including the proceeds
thereof) deposited with the Trustee or other qualifying trustee (solely for the purposes of this Section and Section 1306, the Trustee and any such other trustee are referred to collectively as the “Trustee”) pursuant to
Section 1304 in respect of any Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or through any such Paying Agent (including
the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Securities, of all sums due and to become due thereon in respect of principal and any premium and interest, but money so held in trust need not be
segregated from other funds except to the extent required by law. Money and U.S. Government Obligations so held in trust shall not be subject to the provisions of Article Fourteen. 

The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 1304 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of Outstanding Securities. 

  
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 Anything in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to the
Company from time to time upon Company Request any money or U.S. Government Obligations held by it as provided in Section 1304 with respect to any Securities which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect the Defeasance or Covenant Defeasance, as the case may be, with respect to
such Securities. 
 Section 1306. Reinstatement. 

If the Trustee or the Paying Agent is unable to apply any money in accordance with this Article with respect to any Securities by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the obligations under this Indenture and such Securities from which the Company has been discharged or released pursuant
to Section 1302 or 1303 shall be revived and reinstated as though no deposit had occurred pursuant to this Article with respect to such Securities, until such time as the Trustee or Paying Agent is permitted to apply all money held in trust
pursuant to Section 1305 with respect to such Securities in accordance with this Article; provided, however, that if the Company makes any payment of principal of or any premium or interest on any such Security following such reinstatement of
its obligations, the Company shall be subrogated to the rights (if any) of the Holders of such Securities to receive such payment from the money so held in trust. 

ARTICLE 14 
 SUBORDINATION OF
SECURITIES 
 Section 1401. Agreement That Securities be Subordinate. 

The Company covenants and agrees, and each Holder of a Security issued hereunder by his acceptance thereof likewise covenants and agrees, that
all Securities issued hereunder shall be issued subject to the provisions of this Article; and each Person holding any Security, whether upon original issue or upon transfer or assignment thereof, accepts and agrees to be bound by such provisions.
The provisions of this Article constitute a continuing offer to all persons who, in reliance upon such provisions, become holders of, or continue to hold, Senior Indebtedness, and such provisions are made for the benefit of the holders of Senior
Indebtedness, and such holders are hereby made obliges hereunder the same as if their names were written herein as such, and they and/or each of them may proceed to enforce such provisions. 

Section 1402. Subordination to Senior Indebtedness. 

Anything in this Indenture or in any Security to the contrary notwithstanding, the indebtedness evidenced by each Security shall be subordinate
and junior, to the extent and in the manner hereinafter set forth, to all Senior Indebtedness: 

  
 - 57 - 

	(1)	In the event of any insolvency or bankruptcy proceedings, and any receivership, liquidation, reorganization, or other similar proceedings in connection therewith, relative to the Company or to all or substantially all
its property, and in the event of any proceedings for voluntary liquidation, dissolution, or other winding up of the Company, whether or not involving insolvency or bankruptcy, then the holders of Senior Indebtedness shall be entitled to receive
payment in full of all principal of (and premium, if any) and interest on all Senior Indebtedness before the Holders of the Securities are entitled to receive any payment on account of principal of (or premium, if any) or interest on the Securities,
and to that end (but subject to the power of a court of competent jurisdiction to make other equitable provision reflecting the rights conferred by these subordination provisions upon the Senior Indebtedness and the holders thereof with respect to
the subordinated indebtedness represented by the Securities and the Holders thereof by a lawful plan of reorganization under applicable bankruptcy law) the holders of Senior Indebtedness shall be entitled to receive for application in payment
thereof any payment or distribution of any kind or character, whether in cash or property or securities, which may be payable or deliverable in any such proceedings in respect of the Securities, except securities which are subordinate and junior in
right of payment to the payment of all Senior Indebtedness then outstanding; 

  

	(2)	Without in any way limiting the effect of the foregoing provisions, during the continuance of any default in the payment of principal of (or premium, if any) or interest on any Senior Indebtedness, no payment of
principal (or premium, if any) or interest shall be made on or with respect to the indebtedness evidenced by any Security, or any renewals or extensions thereof, if (a) notice of such default in writing or by telegram has been given to the
Company by any holder or holders of any Senior Indebtedness, provided that judicial proceedings shall be commenced with respect to such default within 180 days thereafter, or (b)judicial proceedings shall be pending in respect of such default; but
except under the circumstances provided for in the preceding clause (1) and except in the circumstances covered by this clause (2), payments by the Company of principal of (and premium, if any) and interest on the indebtedness evidenced by any
Security, or any renewals or extensions thereof, shall not be deemed to be affected by any of the subordination provisions hereof; and 

  

	(3)	 Each Holder (hereinafter in this Article called a “Securityholder”), by his acceptance of a Security issued hereunder (i) irrevocably
authorizes and empowers (without imposing any obligation on) each holder of Senior Indebtedness (hereinafter in this clause (3) called a “Senior Holder”) at the time outstanding and such Senior Holder’s representatives to demand,
sue for, collect and receipt for such Securityholder’s ratable share of all payments and distributions in respect of the Securities which are required to be paid or delivered to the Senior Holders as provided in clause (1) above, and to
file and prove all claims therefor and take all such other action (including the right to vote such Securityholder’s ratable share of the Securities), in the name of such Securityholder or otherwise, as such Senior Holder or such Senior
Holder’s representatives may determine to be necessary or appropriate for the enforcement of clause (1) above, provided, however, that no action may be taken by any Senior Holder or such Senior Holder’s representatives pursuant to the
authorization conferred by this item (a) of this clause (3) unless written notice shall have been given by such Senior Holder or such Senior Holder’s representatives to a

  
 - 58 - 

	 	
Securityholder requesting such Securityholder to take such action and such Securityholder shall not have taken such action within 15 days after the giving of such notice; and (b) agrees to
execute and deliver to each Senior Holder and such Senior Holder’s representatives all such further instruments confirming the above authorization, and all such powers of attorney, proofs of claim, assignments of claim and other instruments,
and to take all such other action, as may be requested by such Senior Holder or such Senior Holder’s representatives in order to enable such Senior Holder to enforce all claims upon or in respect of such Securityholder’s ratable share of
the Securities. 

 The Company agrees, for the benefit of the holder of Senior Indebtedness, that in the event that any
Security is declared due and payable by the Trustee or the Holder thereof before its express maturity for any reason, (a) the Company will give prompt notice in writing of such happening to the holders of Senior Indebtedness and (b) all
Senior Indebtedness shall forthwith become due and payable upon demand, regardless of the expressed maturity thereof. 
 Section 1403. Payment of
Senior Indebtedness of Certain Amounts Received by Securityholders. 
 In the event that, notwithstanding the provisions of Section 1402
prohibiting such distribution or payment, any distribution of assets of the Company or payment by or on behalf of the Company of any kind or character, whether in cash, property or securities, to which the Holders of the Securities or the Trustee
would be entitled but for the provisions of this Article prohibiting such distribution or payment, shall be received by the Trustee or the Holders of the Securities before the principal of (and premium, if any) and interest on all Senior
Indebtedness is paid in full, or provision is made for its payment, such distribution or payment shall be held in trust for the benefit of, and shall be paid over or delivered to, the holders of such Senior Indebtedness or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account of the Senior
Indebtedness held or represented by each, for application to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to pay the principal of (and premium, if any) and interest on all such Senior Indebtedness in full, after
giving effect to any concurrent distribution or payment, or provision therefor, from any source, to the Holders of such Senior Indebtedness or their representatives or trustees. 

Section 1404. Notice to Trustee of Specified Events; Reliance on Certificate of Liquidating Agent. 

The Company shall give prompt written notice to the Trustee of any insolvency or bankruptcy proceeding in respect of the Company and of any
proceedings for voluntary liquidation, dissolution or other winding up of the Company (whether or not involving insolvency or bankruptcy), within the meaning of Section 1402(1), of the declaration of any Security as due and payable before its
expressed maturity within the meaning of Section 1402(3), and of any event which pursuant to Section 1402(2) would prevent payment by the Company on account of the principal of (and premium, if any) or interest on the Securities. The
Trustee, subject to the provisions of Section 601, shall be entitled to assume that no such event has occurred unless the Company, or a holder of Senior Indebtedness or any trustee therefor, has given such notice. 

  
 - 59 - 

 Upon any distribution of assets of the Company or payment by or on behalf of the Company referred
to in this Article Fourteen, the Trustee and the Holders of the Securities shall be entitled to rely upon any order or decree of court of competent jurisdiction in which any proceedings of the nature referred to in Section 1402 are pending, and
the Trustee, subject to the provisions of Section 601 hereof, and the Holders of the Securities shall be entitled to rely upon a certificate of the liquidating trustee or agent or other Person making any distribution to the Trustee or to the
Holders of the Securities for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of the Senior Indebtedness, and other indebtedness of the Company, the amount thereof or payable thereon, the amount of
amounts paid or distributed thereon and all other facts pertinent thereto or to this Article. In the event that the Trustee determines in good faith, that further evidence is required with respect to the right of any Person as a holder of Senior
Indebtedness to participate in any payment or distribution pursuant to this Article, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person,
as to the extent to which such Person is entitled to participate in such payment or distribution, and as to other facts pertinent to the rights of such Person under this Article, and if such evidence is not furnished, the Trustee may defer any
payment to such Person pending judicial determination as to the right of such Person to receive such payment. 
 The Trustee, however, shall
not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness but shall have only such obligations to such holders as are expressly set forth in this Article. 

Section 1405. Subrogation. 
 Subject to the
payment in full of the principal of (and premium, if any) and interest on all Senior Indebtedness, the Holders of the Securities (together with the holders of any other indebtedness of the Company which is subordinate in right of payment to the
payment of other indebtedness of the Company, but is not subordinate in right of payment to the Securities and by its terms grants such right of subrogation to the holders thereof, including, without limitation, the holders of Existing Subordinated
Indebtedness) shall be subrogated to the rights of the holders of Senior Indebtedness to receive distributions of assets of the Company, or payments by or on behalf of the Company, made on the Senior Indebtedness, until the principal of (and
premium, if any) and interest on the Securities shall be paid in full; and, for the purposes of such subrogation, no distributions or payments to the holders of Senior Indebtedness of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled except for the provisions of this Article, and no payment over pursuant to the provisions of this Article to the holders of Senior Indebtedness by the Holders of the Securities or the Trustee, shall, as
between the Company, its creditors other than the holders of Senior Indebtedness and the Holders of the Securities be deemed to be a payment by the Company to or on account of Senior Indebtedness, it being understood that the provisions of this
Article, are, and are intended, solely for the purpose of defining the relative rights of the Holders of the Securities, on the one hand, and the holders of Senior Indebtedness, on the other hand. 

Section 1406. Obligation to Pay Not Impaired. 

  
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 Nothing contained in this Article or elsewhere in this Indenture, or in the Securities, is
intended to or shall alter or impair, as among the Company, its creditors other than the holders of Senior Indebtedness and the Holders of the Securities, the obligation of the Company, which is absolute and unconditional, to pay to the Holders of
the Securities the principal of (and premium, if any) and interest on the Securities at the time and place and at the rate and in the currency therein prescribed, or to affect the relative rights of the Holders of the Securities and creditors of the
Company other than the holders of Senior Indebtedness, nor shall anything herein or therein prevent the Trustee or the Holder of any Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, under this Article of the holders of Senior Indebtedness to receive cash, property or securities otherwise payable or deliverable to the Holders of the Securities. 

Section 1407. Reliance by Senior Indebtedness on Subordination Provisions. 

Each Holder of any Security by his acceptance thereof acknowledges and agrees that the subordination provisions provided for herein are, and
are intended to be, an inducement and a consideration to each Holder of any Senior Indebtedness whether such Senior Indebtedness was created or acquired before or after the issuance of the Securities, to acquire and continue to hold, or to continue
to hold, such Senior Indebtedness, and such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring and continuing to hold, or in continuing to hold, such Senior Indebtedness. 

Section 1408. Certain Payments and Credits Permitted. 

Nothing contained in this Article or elsewhere in this Indenture, or in any of the Securities, shall prevent (1) the Company from making
payment of the principal of (or premium, if any) or interest on the Securities, or from depositing with the Trustee or any Paying Agent moneys for such payments, not then contrary to the conditions described in Sections 1402 and 1414, (2) the
application by the Trustee or any Paying Agent of any moneys so deposited with it under this Indenture to the payment of or on account of the principal of (or premium, if any) or interest on the Securities unless the Trustee has actual knowledge of
a default on the Senior Indebtedness, or (3) the retention by the Holders of Securities of moneys so applied and paid to them on account of the principal of (or premium, if any) or interest on the Securities, whether or not at the time of such
application described in (2) or payment described in (3) payment of principal of (or premium, if any) or interest on the Securities would then be precluded pursuant to Section 1402. 

Section 1409. Subordination Not to be Prejudiced by Certain Acts. 

No right of any present or future holder of any Senior Indebtedness to enforce subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any
knowledge thereof any such holder may have or be otherwise charged with. 
 Without in any way limiting the generality of the foregoing
paragraph, the holders of Senior Indebtedness may, at any time and from time to time, without the consent of or notice to the Trustee or the Holders of the Securities, without incurring responsibility to the Holders of the

  
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Securities and without impairing or releasing the subordination provided for in this Article or the obligations hereunder of the Holders of the Securities to the holders of the Senior
Indebtedness, do any one or more of the following: (1) change the manner, place or terms of payment or extend the time of payment of, or renew or alter, Senior Indebtedness, or otherwise amend or supplement in any manner Senior Indebtedness or
any instrument evidencing the same or any agreement under which Senior Indebtedness is outstanding; (2) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing Senior Indebtedness; (3) release
any Person liable in any manner for the collection of Senior Indebtedness; and (4) exercise or refrain from exercising any rights against the Company and any other Person. 

Section 1410. Trustee Authorized to Effectuate Subordination. 

Each Holder of Securities by his acceptance thereof authorizes and directs the Trustee on his behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination as provided in this Article and appoints the Trustee his attorney-in-fact for any and all such purposes. 

Section 1411. Trustee’s Rights Regarding Senior Indebtedness Held by It. 

The Trustee shall be entitled to all the rights set forth in this Article in respect of any Senior Indebtedness at any time held by it, to the
same extent as any other holder of Senior Indebtedness and nothing in Section 613 or elsewhere in this Indenture shall deprive the Trustee of any of its rights as such holder. 

Section 1412. Trustee and Paying Agents Not Chargeable with Knowledge Until Notice. 

Notwithstanding any of the provisions of this Article or any other provision of this Indenture, the Trustee and any Paying Agent shall not at
any time be charged with knowledge of the existence of any facts which would prohibit the making of any payment of moneys to or by the Trustee or any Paying Agent, unless and until the Trustee or such Paying Agent, as the case may be, shall have
received written notice thereof from the Company, a holder of Senior Indebtedness or any trustee therefor together with proof satisfactory to the Trustee of the status of the holder of such Senior Indebtedness or the authority of such trustee; and,
prior to the receipt of any such written notice, the Trustee, subject to the provisions of Section 601, and any Paying Agent shall be entitled to assume that no such facts exist. If at least three Business Days prior to the date upon which by
the terms hereof any such moneys may become payable for any purpose (including, without limitation, the payment of either the principal of or the interest on any Security) a Responsible Officer of the Trustee or Paying Agent, as the case may be,
shall not have received with respect to such moneys the notice provided for in this Section, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such moneys and to apply the
same to the purpose for which they were received and shall not be affected by any notice to the contrary which may be received by it on or after the commencement of such three-day period. 

Section 1413. Limitation on Securing Securities. 

The Company will not give, and neither the Holders of the Securities nor the Trustee will take or receive, any security interest for the
payment of the principal of (or premium, if any) or interest on the Securities, other than cash required or permitted to be paid to the Trustee or any Paying Agent hereunder. 

  
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 Section 1414. Limitation on Premature Deposit of Funds. 

The Company will not deposit funds for the redemption of any Security with the Trustee or any Paying Agent more than 35 days prior to the date
fixed for redemption; and, except as a part of funds deposited for redemption of Securities as aforesaid, the Company will not deposit funds for the payment of interest on the Securities more than 15 days prior to the date on which such interest is
due. 
 Section 1415. Securities to Rank Pari Passu with Existing Subordinated Indebtedness. 

 

	(1)	Subject to the provisions of this Section and to any provisions established or determined with respect to Securities of any series pursuant to Section 301, the Securities shall rank pari passu in right of payment
with all other Securities and the Existing Subordinated Indebtedness. 

  

	(2)	Upon the occurrence of any of the events specified in Section 1402(1), the provisions of that Section and the corresponding provisions of each indenture or other instrument or document establishing or governing the
terms of any Existing Subordinated Indebtedness shall be given effect on a pro rata basis to determine the amount of cash, property or securities which may be payable or deliverable as between the holders of Senior Indebtedness, on the one hand, and
the Holders of Securities and holders of Existing Subordinated Indebtedness, on the other hand. 

*        *        * 

  
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 This instrument may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
 IN WITNESS
WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as of the day and year first above written. 
  

			
	STATE STREET CORPORATION
		
	By	 	/s/ David J. Gutschenritter
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	By	 	/s/ Stefan VictoryExhibit 10.14

 

THIS INSTRUMENT IS SUBJECT TO THE
TERMS OF A SUBORDINATION AGREEMENT DATED AS OF NOVEMBER 13, 2014 IN FAVOR OF FIFTH THIRD BANK, WHICH SUBORDINATION AGREEMENT (AS
AMENDED IN ACCORDANCE WITH ITS TERMS) IS INCORPORATED HEREIN BY REFERENCE.

 

NOTE AND WARRANT PURCHASE AGREEMENT

 

by and between

 

TWINLAB CONSOLIDATED HOLDINGS, INC.,
TWINLAB CONSOLIDATION CORPORATION, TWINLAB HOLDINGS, INC., ISI BRANDS INC., TWINLAB CORPORATION and

 

PENTA MEZZANINE SBIC FUND I, L.P.

 

for

 

$10,000,000 Principal Amount

 

of

 

Secured Notes Due 2019

 

and

 

Warrant to Purchase Equity Interests

 

Dated: November 13, 2014

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	Section 1.	Definitions	1
	 	 	 
	Section 2.	Purchase and Sale of Securities	16
	 	 	 
	2.1	Purchase and Sale of Securities	16
	 	 	 
	2.2	Registration of Securities	19
	 	 	 
	2.3	Delivery Expenses	19
	 	 	 
	2.4	Issue Taxes	19
	 	 	 
	2.5	General Provisions Regarding Payments	20
	 	 	 
	2.6	Use of Proceeds	20
	 	 	 
	2.7	Margin Regulations	20
	 	 	 
	2.8	Maximum Interest	21
	 	 	 
	Section 3.	Collateral:  General Terms	21
	 	 	 
	3.1	Security Interest Created; Obligations Secured	21
	 	 	 
	3.2	Financing Statements	21
	 	 	 
	Section 4.	Representations and Warranties	22
	 	 	 
	4.1	Companies’ Representations and Warranties	22
	 	 	 
	4.2	Purchaser’s Representations and Warranties	30
	 	 	 
	Section 5.	Affirmative Covenants	30
	 	 	 
	5.1	Reports	31
	 	 	 
	5.2	Payment of Taxes and Claims; Tax Consolidation; Filing of Tax Returns	35
	 	 	 
	5.3	Key Person Insurance	35
	 	 	 
	5.4	Further Assurances	36
	 	 	 
	5.5	Reservation of Equity Interests	36
	 	 	 
	5.6	No Impairment	36
	 	 	 
	5.7	Board Seat and Rights to Meet with Directors.	37
	 	 	 
	5.8	Good Standing; Regular Course of Business	37
	 	 	 
	5.9	Maintenance of Property Insurance	37
	 	 	 
	5.10	Compliance with Statutes, etc	39
	 	 	 
	5.11	Violations	39

 

    	ii

    	 

    

 

	5.12	Financial Covenants	39
	 	 	 
	5.13	Performance of Transaction Documents	41
	 	 	 
	5.14	Maintenance of Books and Records; Inspection Rights	41
	 	 	 
	5.15	Audit	41
	 	 	 
	5.16	Keyman Litigation Proceeds.	42
	 	 	 
	5.17	Post-Closing Obligations.	42
	 	 	 
	Section 6.	Negative Covenants	42
	 	 	 
	6.1	Restrictions on Fundamental Changes; Mergers; Consolidations; Asset Sales and Acquisitions; New Subsidiaries	42
	 	 	 
	6.2	Creation of Liens	43
	 	 	 
	6.3	Investments	43
	 	 	 
	6.4	Loans	43
	 	 	 
	6.5	Capital Expenditures	43
	 	 	 
	6.6	Dividends	43
	 	 	 
	6.7	Indebtedness	44
	 	 	 
	6.8	Nature of Business; Name Change	44
	 	 	 
	6.9	Transactions with Affiliates	44
	 	 	 
	6.10	Fiscal Year	44
	 	 	 
	6.11	Entering Into or Modification of Certain Agreements	45
	 	 	 
	6.12	Inconsistent Agreements	45
	 	 	 
	6.13	Reserved	45
	 	 	 
	6.14	Stay, Extension and Usury Laws	45
	 	 	 
	6.15	Purchaser’s Consent	46
	 	 	 
	6.16	Disposition of Assets	46
	 	 	 
	Section 7.	Conditions Precedent	46
	 	 	 
	7.1	Transaction Documents	46
	 	 	 
	7.2	Filings, Registrations and Recordings	46
	 	 	 
	7.3	Corporate Proceedings of Companies	46
	 	 	 
	7.4	Incumbency Certificates of Companies	47
	 	 	 
	7.5	Organization Documents	47
	 	 	 
	7.6	Good Standing Certificates	47
	 	 	 
	7.7	Legal Opinion	47

 

    	iii

    	 

    

 

	7.8	No Litigation	47
	 	 	 
	7.9	Fees	48
	 	 	 
	7.10	Financial Statements	48
	 	 	 
	7.11	Insurance	48
	 	 	 
	7.12	Payment Instructions	48
	 	 	 
	7.13	Consents	48
	 	 	 
	7.14	Existing Indebtedness	49
	 	 	 
	7.15	Solvency Certificate	49
	 	 	 
	7.16	Officer’s Certificate	49
	 	 	 
	7.17	No Prohibition	49
	 	 	 
	Section 8.	Redemption	49
	 	 	 
	8.1	The Companies’ Right to Redeem	49
	 	 	 
	Section 9.	General Indemnity	50
	 	 	 
	9.1	Indemnity Obligations	50
	 	 	 
	9.2	Settlement; Survival	51
	 	 	 
	Section 10.	Actions by Purchaser; Lost Security	51
	 	 	 
	10.1	Actions by Purchaser	51
	 	 	 
	10.2	Lost Security	52
	 	 	 
	Section 11.	Events of Default and Remedies	52
	 	 	 
	11.1	Events of Default	52
	 	 	 
	11.2	Remedies	56
	 	 	 
	11.3	Retention of Collateral	57
	 	 	 
	Section 12.	Miscellaneous	58
	 	 	 
	12.1	Amendments and Waivers	58
	 	 	 
	12.2	Transfers	58
	 	 	 
	12.3	Notices	59
	 	 	 
	12.4	Independent of Covenants	59
	 	 	 
	12.5	Survival of Representations, Warranties and Agreements	60
	 	 	 
	12.6	Failure or Indulgence Not Waiver; Remedies Cumulative	60
	 	 	 
	12.7	Severability	60

 

    	iv

    	 

    

 

	12.8	Headings	60
	 	 	 
	12.9	Governing Law; Submission to Jurisdiction; Service of Process	61
	 	 	 
	12.10	Successors and Assigns	61
	 	 	 
	12.11	Waiver of Jury Trial	61
	 	 	 
	12.12	Facsimile; Counterparts; Effectiveness	62
	 	 	 
	12.13	Entire Agreement	62
	 	 	 
	12.14	Waivers of Provisions	62
	 	 	 
	12.15	Termination and Release	63
	 	 	 
	12.16	Guaranty; Joint and Several	63
	 	 	 
	12.17	Purchaser as Subordinated Lender; Replacement of Senior Lender	63

 

Schedules:

 

	3.1	Premises and Leases
	4.1(a)	Financial Information
	4.1(e)	Litigation
	4.1(f)	Benefit Plans
	4.1(i)	Real Property
	4.1(l)	Federal Tax Identification Number
	4.1(o)	Patents, Trademarks, Copyrights and Licenses
	4.1(q)	Existing Indebtedness
	4.1(r)	Defaults
	4.1(u)	Owners of Equity Interests
	4.1(aa)	Trade Names
	5.17	Post-Closing Obligations
	6.2	Existing Liens
	6.3	Investments

 

Exhibits:

 

	2.1(a)(i)	Form of Initial Note
	2.1(a)(ii)(A)	Form of Initial Warrant
	2.1(b)	Company’s Wire Transfer Instruction
	2.1(c)(i)	Form of Deferred Draw Note
	2.1(c)(ii)	Form of Deferred Warrant
	5.1	Form of Compliance Certificate
	7.16	Form of Certificate re:  Sections 7.15 and 7.16

 

    	v

    	 

    

 

NOTE AND WARRANT PURCHASE AGREEMENT

 

This NOTE AND WARRANT
PURCHASE AGREEMENT (this “Agreement”), dated as of November 13, 2014 (the “Effective Date”)
is made by and between PENTA MEZZANINE SBIC FUND I, L.P., a Delaware limited partnership (the “Purchaser”),
TWINLAB CONSOLIDATED HOLDINGS, INC., a Nevada corporation (“Parent”), TWINLAB CONSOLIDATION CORPORATION, a Delaware
corporation (“TCC”), TWINLAB HOLDINGS, INC., a Michigan corporation (“Twinlab Holdings”),
ISI BRANDS INC., a Michigan corporation (“ISI Brands”), and TWINLAB CORPORATION, a Delaware corporation (“Twinlab
Corporation”; together with Parent, TCC, Twinlab Holdings and ISI Brands, the “Companies”; and each
individually, a “Company”).

 

RECITALS

 

WHEREAS, the Companies
desire that the Purchaser purchase up to $10,000,000 principal amount of the Notes in accordance with the terms and conditions
set forth below; and

 

WHEREAS, the Parent
desires to grant the Purchaser the Warrants for the acquisition of 4,960,741 shares of common stock of the Parent.

 

NOW, THEREFORE, in
consideration of the mutual conditions and agreements set forth herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

Section
1.          Definitions

 

“Acquisition”
means (a) the purchase or other acquisition by a Person of all or substantially all of the assets of (or any division or business
line of) any other Person, or (b) the purchase or other acquisition (whether by means of a merger, consolidation, or otherwise)
by a Person of all or substantially all of the Equity Interests of any other Person.

 

“Adjusted
EBITDA” means EBITDA plus any expenses relating to Acquisitions through the end of the first Fiscal Year following the
Effective Date, plus severance payments and other costs relating to permanent headcount reductions, all as determined by GAAP.

 

“Affiliate”
or “Affiliated” means, as applied to (i) any Person, directly or indirectly, in which such Person holds, beneficially
or of record, ten percent (10%) or more of the equity of voting securities; (ii) any Person that holds, of record or beneficially,
ten percent (10%) or more of the equity or voting securities of such Person; (iii) any director, officer, partner or individual
holding a similar position in respect of such Person; (iv) as to any natural Person, any Person related by blood, marriage or adoption
and any Person owned by such Persons, including any spouse, parent, grandparent, aunt, uncle, child, grandchild, sibling, cousin
or in-law of such Person; or (v) any other Person directly or indirectly controlling, controlled by, or under common control with,
that Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”,
“controlled by” and “under common control with”), as applied to any Person, means the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the
ownership of voting securities or by contract or otherwise.

 

    	 

    	 

    

 

“Agreement”
has the meaning set forth in the opening paragraph.

 

“Anti-Money
Laundering Laws” means all applicable laws, regulations and government guidance on the prevention and detection of money
laundering, including, without limitation, 18 U.S.C. §§ 1956 and 1957, and the BSA.

 

“Applicable
Regulations” has the meaning set forth in Section 4.1(h).

 

“Bankruptcy
Code” means Title 11 of the United States Code, 11 U.S.C. § 101 et seq., as amended.

 

“BSA”
means the Bank Secrecy Act (31 U.S.C. §§ 5311 et seq.), and its implementing regulations, Title 31 Part 103
of the U.S. Code of Federal Regulations.

 

“Business
Day” means any day excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of Florida
or is a day on which banking institutions located in such state are authorized or required by law or other governmental action
to close.

 

“Capital Expenditures”
means, as applied to any Person for any period, the aggregate of all expenditures (whether paid in cash or other consideration
or accrued as a liability and including that portion of Capital Leases which is capitalized on the balance sheet of such Person
and its Subsidiaries) by such Person and its Subsidiaries during that period that, in conformity with GAAP, are included in “additions
to property, plant or equipment” or comparable items reflected in the consolidated statement of cash flows of such Person
and its Subsidiaries.

 

“Capital Lease”
means, as applied to any Person, any lease of any property (whether real, personal or mixed) by that Person as lessee that, in
conformity with GAAP, is accounted for as a capital lease on the balance sheet of that Person.

 

“CERCLA”
shall mean the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et seq.

 

“Change in
Control” means, at any time, that:

 

(a)          the
Parent shall cease to (i) own, directly or indirectly, 100% of the Equity Interests of TCC; (ii) own, directly or indirectly,
and be able to vote or direct the voting of, the voting securities of TCC representing 100% of the combined ordinary voting power
(as opposed to such power only by reason of the happening of a contingency) of all Equity Interests of TCC, and (iii) control and
cause the direction of the management and policies of TCC by contract or otherwise;

 

(b)          TCC
shall cease to (i) own, directly or indirectly, 100% of the Equity Interests of each other Company (other than Parent); (ii) own,
directly or indirectly, and be able to vote or direct the voting of, the voting securities of each other Company (other than Parent)
representing 100% of the combined ordinary voting power (as opposed to such power only by reason of the happening of a contingency)
of all Equity Interests of such Companies, and (iii) control and cause the direction of the management and policies of each other
Company (other than Parent) by contract or otherwise;

 

    	2

    	 

    

 

(c)          the
closing of any merger, combination, joint venture, consolidation, reorganization, recapitalization or similar business transaction
directly or indirectly involving any Company in which current owners of Equity Interest in such Company are not the holder, directly
or indirectly, of a majority of the ordinary voting equity securities of the surviving Person in such transaction immediately after
such closing;

 

(d)          the
closing of any sale or transfer by any Company of all or substantially all of its assets to an acquiring Person in which the current
owners of Equity Interest in such Company are not the holder of a majority of the ordinary voting equity securities of the acquiring
Person immediately after such closing;

 

(e)          the
closing of any sale by the holders of the Equity Interests in any Company of an amount of the Equity Interests in such Company
that equals or exceeds a majority of the Equity Interests in such Company immediately prior to such closing to a Person in which
the holders of the Equity Interests in the Company immediately prior to such closing are not the holders of a majority of the ordinary
voting equity securities of such Person immediately after such closing; or

 

(f)          any
Person or any two or more Persons acting in concert acquiring beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act), directly or indirectly, of the Equity Interests of any Company (or other securities convertible into such
Equity Interests) representing more than 35% (on a Fully-Diluted Basis) or more of the combined voting power of all equity securities
of such Company entitled to vote; provided, however, that there shall be no Change in Control as a result of a Permitted Acquisition
under subsection (c) of the definition thereof.

 

“Closing”
has the meaning set forth in Section 2.1(b).

 

“Collateral”
has the meaning set forth in the Security Agreement.

 

“Companies”
has the meaning set forth in the opening paragraph.

 

“Company Materials”
has the meaning set forth in Section 5.1.

 

    	3

    	 

    

 

“Contingent
Obligation” or “Contingent Obligations” means, as applied to any Person, any direct or indirect liability,
contingent or otherwise, of such Person (i) with respect to any Indebtedness, lease, dividend or other obligation of another if
the primary purpose or intent thereof by the Person incurring such obligation is to provide assurance to the obligee of such obligation
of another that such obligation of another will be paid or discharged, or that any agreements relating thereto will be complied
with, or that the holders of such obligation will be protected (in whole or in part) against loss in respect thereof, (ii) with
respect to any letter of credit issued for the account of that Person or as to which that Person is otherwise liable for reimbursement
of drawings, or (iii) under any Interest Rate Agreement. Contingent Obligations shall include (a) the direct or indirect guaranty,
endorsement (other than for collection or deposit in the Ordinary Course of Business), co-making, discounting with recourse or
sale with recourse by such Person of the obligation of another, (b) the obligation to make take-or-pay or similar payments if required
regardless of non-performance by any other party or parties to an agreement, and (c) any liability of such Person for the obligation
of another through any agreement (contingent or otherwise) (x) to purchase, repurchase or otherwise acquire such obligation or
any security thereof, or to provide funds for the payment or discharge of such obligation (whether in the form of loans, advances,
stock purchases, capital contributions or otherwise) or (y) to maintain the solvency or any balance sheet item, level of income
or financial condition of another if, in the case of any agreement describe under subclauses (x) or (y) of this sentence, the primary
purpose or intent thereof is as described in the preceding sentence. The amount of any Contingent Obligation shall be equal to
the amount of the obligation so guaranteed or otherwise supported or, if less, the amount to which such Contingent Obligation is
specifically limited.

 

“Controlled
Group” shall mean, at any time, the Companies and all members of a controlled group of corporations and all trades or
businesses (whether or not incorporated) under common control and all other entities which, together with the Companies, are treated
as a single employer under Section 414 of the IRC.

 

“Cure Period”
has the meaning set forth in Section 11.1(e)(i).

 

“Default”
shall mean any event which is, or after notice or passage of time would be, an Event of Default.

 

“Default Rate”
has the meaning set forth in the Notes.

 

“Deferred
Draw Closing Date” has the meaning set forth in Section 2.1(c).

 

“Deferred
Draw Note” has the meaning set forth in Section 2.1(c).

 

“Deferred
Warrant” has the meaning set forth in Section 2.1(c).

 

“EBITDA”
shall mean Net Income, minus extraordinary gains, interest income, non-operating income, non-cash income and income tax benefits
and decreases in any change in LIFO or any other inventory reserves, plus non-cash extraordinary losses (including non-cash expenses
with respect to stock option and stock based employee compensation programs), Interest Expense (including expenses relating to
the Warrant), income taxes, depreciation and amortization and increases in any change in LIFO reserves for such period, in each
case, determined on a consolidated basis in accordance with GAAP.

 

“Effective
Date” has the meaning set forth in the recitals.

 

“Environmental
Claim” means any accusation, allegation, notice of violation, claim, demand, abatement order or other order or direction
(conditional or otherwise) by any Governmental Authority or any Person for any damage, including personal injury (including sickness,
disease or death), tangible or intangible property damage, contribution, indemnity, indirect or consequential damages, damage to
the environment, nuisance, pollution, contamination or other adverse effects on the environment, or for fines, penalties or restrictions,
in each case relating to, resulting from or in connection with Hazardous Materials and relating to any Company, any of its respective
Subsidiaries or any Premises or assets of any Company.

 

    	4

    	 

    

 

“Environmental
Laws” means all statutes, ordinances, orders, rules or regulations relating to (i) environmental matters, including those
relating to fines, injunctions, penalties, damages, contribution, cost recovery compensation, losses or injuries resulting from
the Release or threatened Release of Hazardous Materials, (ii) the generation, use, storage, transportation or disposal of Hazardous
Materials, or (iii) occupational safety and health, industrial hygiene, or the protection of human, plant or animal health or welfare
from injury as a result of exposure to Hazardous Materials or loss of ecological resources, in any manner applicable to the Corporation
or any of its predecessors or any of its respective properties, including the Comprehensive Environmental Response, Compensation,
and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et
seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Federal Water Pollution Control
Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances
Control Act (15 U.S.C. § 2601 et seq.), the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S.C. §136
et seq.), the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.) and the Emergency Planning and Community
Right-to-Know Act (42 U.S.C. § 11001 et seq.), each as amended or supplemented, and any analogous future or present
local, state and Federal statutes and regulations promulgated pursuant thereto, each as in effect as of the date of determination.

 

“Equipment”
shall have the meaning set forth in the Uniform Commercial Code in effect from time to time in the relevant jurisdiction.

 

“Equity Interest”
shall mean the interest of (i) a shareholder in a corporation, (ii) a partner (whether general or limited) in a partnership (whether
general, limited or limited liability), (iii) a member in a limited liability company, or (iv) any other Person having any other
form of equity security or ownership interest in any Person.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor statute.

 

    	5

    	 

    

 

“ERISA Event”
means (i) a Reportable Event within the meaning of Section 4043 of ERISA and the regulations issued thereunder with respect
to any Pension Benefit Plan (excluding those for which the provision for 30-day notice to the PBGC has been waived by regulation)
which could reasonably be expected to result in the termination of such Pension Benefit Plan or in a material liability of any
Company; (ii) the failure to meet the minimum funding standard of Section 412 of the IRC with respect to any Pension Benefit
Plan (whether or not waived in accordance with Section 412(d) of the IRC) or the failure to make by its due date a required
installment under Section 412(m) of the IRC with respect to any Pension Benefit Plan or the failure to make any required contribution
to a Multiemployer Plan, where the missed contribution or installment is of a material amount or could result in the imposition
of a lien under ERISA or the IRC; (iii) the provision by the administrator of any Pension Benefit Plan pursuant to Section 4041(a)(2)
of ERISA of a notice of intent to terminate such plan in a distress termination described in Section 4041(c) of ERISA; (iv)
the withdrawal by any Company from any Pension Benefit Plan with two or more contributing sponsors or the termination of any such
Pension Benefit Plan resulting in material liability pursuant to Sections 4063 or 4064 of ERISA; (v) the institution
by the PBGC of proceedings to terminate any Pension Benefit Plan, or the occurrence of any event or condition which might constitute
grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Benefit Plan; (vi) the imposition
of material liability on any Company pursuant to Section 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c)
of ERISA; (vii) the withdrawal by any Company in a complete or partial withdrawal (within the meaning of Sections 4203 and
4205 of ERISA) from any Multiemployer Plan if there is any potential material liability therefor, or the receipt by any Company
of notice from any Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA,
or that it intends to terminate or has terminated under Section 4041A or 4042 of ERISA; (viii) the occurrence of an act or
omission which could give rise to the imposition on any Company of material fines, penalties, taxes or related charges under Chapter
43 of the IRC or under Section 409 or 502(c), (i) or (1) or 4071 of ERISA in respect of any Employee Benefit Plan; (ix) the
assertion of a material claim (other than routine claims for benefits) against any Employee Benefit Plan other than a Multiemployer
Plan or the assets thereof, or against any Company in connection with any such Employee Benefit Plan; (x) receipt from the
Internal Revenue Service of notice of the failure of any Pension Benefit Plan (or any other Employee Benefit Plan intended to be
qualified under Section 401(a) of the IRC) to qualify under Section 401(a) of the IRC, or the failure of any trust forming
part of any Pension Benefit Plan to qualify for exemption from taxation under Section 501(a) of the IRC; or (xi) the imposition
of a Lien pursuant to Section 401(a)(29) or 412(n) of the IRC or pursuant to ERISA with respect to any Pension Benefit Plan.
For purposes of clauses (i), (ii), (iv), (vi), (vii), (viii) and (ix) of this definition, a material liability, amount, fine or
claim is an amount in excess of $25,000.00 in the aggregate.

 

“Essex Debt”
means Indebtedness pursuant to that certain Commercial Lease Agreement, dated as of August 21, 2014, between Twinlab Corporation
and Essex Capital Corporation, and a lease agreement to be entered into between one or more of the Companies and Essex Capital
Corporation, together in an aggregate principal amount not to exceed $5,800,000.

 

“Event of
Default” has the meaning set forth in Section 11.1.

 

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

 

“Financial
Information” has the meaning set forth in Section 4.1(a).

 

“Financial
Statements” has the meaning set forth in Section 7.10.

 

“Fiscal Year”
means the fiscal year of the Companies, ending December 31 of each year.

 

“Fixed Charge
Coverage Ratio” means, with respect to the Companies and their Subsidiaries for any period, the ratio of i) Adjusted
EBITDA for such period, minus (a) Non-Financed Capital Expenditures made (to the extent not already incurred
in a prior period) or incurred during such period, (b) cash taxes paid during such period, to the extent greater than zero,
and (c) all Junior Payments consisting of Tax Distributions to (ii) Fixed Charges for such period.

 

“Fixed Charges”
means, with respect to any fiscal period and with respect to the Companies and their Subsidiaries determined on a consolidated
basis in accordance with GAAP, the sum, without duplication, of (a) cash Interest Expense paid during such period (other than
interest paid-in-kind, amortization of financing fees, and other non-cash Interest Expense), (b) principal payments paid in
cash in respect of Indebtedness paid during such period, including cash payments with respect to Capital Leases, but excluding
principal payments made with respect to the Permitted Senior Debt, and (c) all Junior Payments (other than Tax Distributions) and
other distributions paid in cash during such period.

 

    	6

    	 

    

 

“Fully-Diluted
Basis” means, as applied to the calculation of the number of Equity Interests outstanding at any time, after giving effect
to (a) all Equity Interests outstanding at the time of determination, (b) all Equity Interests issuable upon the exercise of any
option, warrant or similar right to purchase Equity Interests granted and outstanding at the time of determination and (c) all
Equity Interests issuable upon the conversion or exchange of any issued and outstanding security convertible into or exchangeable
for Equity Interests. Such calculation will not be made in accordance with the “treasury method.”

 

“GAAP”
shall mean generally accepted accounting principles in the United States as of the relevant date in question, consistently applied.

 

“Governmental
Authority” has the meaning set forth in Section 4.1(e).

 

“Guaranty”
shall mean, collectively, (i) the guaranties by each Company of the Obligations of each other Company hereunder as set forth in
Section 12.17 and (ii) each guaranty agreement delivered at any time by a Guarantor in favor of the Purchaser.

 

“Guarantor”
shall mean (i) each Company with respect to the Obligations of each other Company hereunder and (ii) each Person that becomes a
guarantor on or after the Effective Date.

 

“Hazardous
Substance” shall mean, without limitation, any flammable explosives, radon, radioactive materials, asbestos, urea formaldehyde
foam insulation, polychlorinated biphenyls, petroleum and petroleum products, methane, hazardous materials, Hazardous Wastes, hazardous
or Toxic Substances or related materials as defined in CERCLA, the Hazardous Materials Transportation Act (49 U.S.C. Sections 1801
et seq.), RCRA, or any other applicable Environmental Law and in the regulations adopted pursuant thereto.

 

“Hazardous
Wastes” shall mean all waste materials subject to regulation under CERCLA, RCRA or applicable state law, and any other
applicable federal and state laws now in force or hereafter enacted relating to hazardous waste disposal.

 

“Holder”
shall mean the Purchaser (so long as it holds any Securities).

 

    	7

    	 

    

 

“Indebtedness”
as to any Person means, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect
of letters of credit, bankers acceptances, or other financial products, (c) all obligations of such Person as a lessee under Capital
Leases, (d) all obligations or liabilities of others secured by a Lien on any asset of such Person, irrespective of whether such
obligation or liability is assumed, (e) all obligations of such Person to pay the deferred purchase price of assets (other than
trade payables incurred in the ordinary course of business and repayable in accordance with customary trade practices), (f) all
obligations of such Person owing under hedge agreements (which amount shall be calculated based on the amount that would be payable
by such Person if the hedge agreement were terminated on the date of determination), (g) any Prohibited Preferred Stock of such
Person, and (h) any obligation of such Person guaranteeing or intended to guarantee (whether directly or indirectly guaranteed,
endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that constitutes Indebtedness under any
of clauses (a) through (g) above. For purposes of this definition, (i) the amount of any Indebtedness represented by a guaranty
or other similar instrument shall be the lesser of the principal amount of the obligations guaranteed and still outstanding and
the maximum amount for which the guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Indebtedness,
and (ii) the amount of any Indebtedness described in clause (d) above shall be the lower of the amount of the obligation and the
fair market value of the assets of such Person securing such obligation.

 

“Indemnified
Party” has the meaning set forth in Section 9.

 

“Initial Note”
has the meaning set forth in Section 2.1(a)(i).

 

“Initial Warrant”
has the meaning set forth in Section 2.1(a)(ii).

 

“Insolvency
Proceeding” shall mean any voluntary or involuntary insolvency, bankruptcy, receivership, custodianship, liquidation,
dissolution, reorganization, assignment for the benefit of creditors, appointment of a custodian, receiver, trustee or other officer
with similar powers or any other proceeding for the liquidation, dissolution or other winding up of a Person.

 

“Intellectual
Property” has the meaning set forth in Section 4.1(o).

 

“Interest
Expense” means, for any period, the aggregate of the interest expense of Companies and their Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP.

 

“Interest
Rate Agreement” means, with respect to any Person, any interest rate swap agreement, interest rate cap agreement, interest
rate collar agreement or other similar agreement or arrangement designed to protect such Person against fluctuations in interest
rates.

 

“Inventory”
shall have the meaning set forth in the Uniform Commercial Code in effect from time to time in the relevant jurisdiction.

 

“IRC”
shall mean the Internal Revenue Code of 1986, as amended.

 

“Junior Payment”
has the meaning given to such term in Section 6.6.

 

    	8

    	 

    

 

“Leases”
has the meaning set forth in Section 4.1(i).

 

“Lessors”
has the meaning set forth in Section 4.1(i).

 

“Lien”
shall mean any mortgage, deed of trust, pledge, hypothecation, assignment, security interest, lien (whether statutory or otherwise),
charge, claim, encumbrance or preference, priority or other security agreement or preferential arrangement held or asserted in
respect of any asset or property of any kind or nature whatsoever, including any conditional sale or other title retention agreement,
any lease having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing
statement under the UCC or comparable law of any jurisdiction.

 

“Litigation”
has the meaning set forth in Section 5.1(b).

 

“Little Harbor
Debt” means Indebtedness pursuant to that certain Debt Repayment Agreement, dated as of July 31, 2014, between Twinlab
Holdings and Little Harbor LLC, a Nevada limited liability company.

 

“Little Harbor
Subordination Agreement” means that certain subordination agreement to be entered into between Little Harbor LLC, a Nevada
limited liability company, and the Purchaser, in form and substance reasonably satisfactory to the Purchaser, and all alterations,
amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements thereof, as applicable.

 

“Losses”
has the meaning set forth in Section 9.

 

“Material
Adverse Effect” shall mean any event, act, omission, condition or circumstance which has or would reasonably be expected
to have a material adverse effect on (a) the business, operations, properties, assets or condition, financial or otherwise,
of any Company or the Companies and their Subsidiaries, taken as a whole, (b) the ability of any Company or any Subsidiary to perform
any of its obligations under any of the Transaction Documents, or (c) the validity or enforceability of, or the Purchaser’s
rights and remedies under, any of the Transaction Documents, other than due to the acts or omissions of the Purchaser or one of
its Affiliates.

 

“Maturity
Date” means November 13, 2019.

 

“Multiemployer
Plan” shall mean a “multiemployer plan” as defined in Sections 3(37) and 4001(a)(3) of ERISA.

 

“Net Income”
shall mean the consolidated net income (or loss) of the Companies and their Subsidiaries for the period in question, after giving
effect to deduction of or provision for all operating expenses, all taxes and reserves (including reserves for deferred taxes)
and all other proper deductions, all determined in accordance with GAAP; provided, however, that for purposes of calculating Net
Income, there shall be excluded and no effect shall be given to (a) one-time extraordinary income items, as determined in
accordance with GAAP, and (b) any Net Income attributable to any Subsidiary to the extent that any Company (or any Subsidiary through
which such Company owns the subject Subsidiary) is prohibited (by law, contract minority ownership rights or otherwise) from receiving
a distribution of such Net Income from such Subsidiary.

 

    	9

    	 

    

 

“Non-Financed
Capital Expenditures” means Capital Expenditures not financed by the seller of the capital asset, by a third party lender
(other than by means of an advance under the Permitted Senior Debt) or by Purchaser.

 

“Note Register”
has the meaning set forth in Section 2.2.

 

“Notes”
shall mean the Secured Notes issued under this Agreement, including without limitation the Initial Notes and Deferred Draw Notes,
and all replacements, renewals and any other note or notes of like tenor hereafter issued by the Companies in substitution or exchange
for any thereof.

 

“Obligations”
shall mean and include any and all loans, advances, debts, liabilities, obligations, covenants, agreements and duties owing by
any Company to the Purchaser under or pursuant to the Transaction Documents, of every kind or nature, present or future (including
any interest accruing thereon after maturity, or after the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding relating to any Company or any of its Subsidiaries, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding), whether or not evidenced by any note, guaranty or other instrument, whether
or not for the payment of money, whether direct or indirect (including those acquired by assignment or participation), absolute
or contingent, joint or several, due or to become due, now existing or hereafter arising, contractual or tortious, liquidated or
unliquidated, regardless of how such indebtedness or liabilities arise, including, but not limited to, any and all of such Company’s
Indebtedness, liabilities and/or obligations under this Agreement, the Warrants and the “put” obligations thereunder,
the other Transaction Documents and any amendments, extensions, renewals or increases, Contingent Obligations of such Company and
all reasonable costs and expenses of the Purchaser incurred in the documentation, negotiation, modification, enforcement, collection
or otherwise in connection with any of the foregoing, including but not limited to reasonable attorneys’ fees and expenses
and all obligations and/or agreements of such Company to the Purchaser to perform acts or refrain from taking any action.

 

“OFAC Laws
and Regulations” means Executive Order 13224 issued by the President of the United States of America, the Terrorism Sanctions
Regulations (Title 31 Part 595 of the U.S. Code of Federal Regulations), the Terrorism List Governments Sanctions Regulations
(Title 31 Part 596 of the U.S. Code of Federal Regulations), the Foreign Terrorist Organizations Sanctions Regulations (Title 31
Part 597 of the U.S. Code of Federal Regulations), and the Cuban Assets Control Regulations (Title 31 Part 515 of the U.S.
Code of Federal Regulations), and all other present and future federal, state and local laws, ordinances, regulations, policies,
lists (including, without limitation, the Specially Designated Nationals and Blocked Persons List) and any other requirements of
any Governmental Authority (including, without limitation, the United States Department of the Treasury Office of Foreign Assets
Control) addressing, relating to, or attempting to eliminate, terrorist acts and acts of war, each as hereafter supplemented, amended
or modified from time to time, and the present and future rules, regulations and guidance documents promulgated under any of the
foregoing, or under similar laws, ordinances, regulations, policies or requirements of other states or localities.

 

    	10

    	 

    

 

“Operating
Lease” means, as applied to any Person, any lease (including leases that may be terminated by the lessee at any time)
of any property (whether real, personal or mixed) under which the Person is the lessee and that is not a Capital Lease.

 

“Ordinary
Course of Business” shall mean the ordinary course of the Companies’ business as conducted at Closing and from
time to time thereafter materially consistent with past practice.

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation.

 

“Pension Benefit
Plan” shall mean at any time any employee pension benefit plan (including a Multiple Employer Plan, but not a Multiemployer
Plan) which is covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the IRC
and either (i) is maintained by any member of the Controlled Group for employees of any member of the Controlled Group; or (ii)
has at any time within the preceding five years been maintained by any entity which was at such time a member of the Controlled
Group for employees of any entity which was at such time a member of the Controlled Group.

 

“Penta Director”
has the meaning set forth in Section 5.7.

 

“Permitted
Acquisition” means any of the following:

 

(a)          the
Target 1 Acquisition so long as no Default or Event of Default shall have occurred and be continuing or would result from the consummation
of the Target 1 Acquisition;

 

(b)          the
Target 2 Acquisition so long as no Default or Event of Default shall have occurred and be continuing or would result from the consummation
of the Target 2 Acquisition;

 

(c)          any
Acquisition between Companies in which a Company is the surviving entity; or

 

(d)          any
other Acquisition so long as no Default or Event of Default shall have occurred and be continuing or would result from the consummation
of the proposed Acquisition, the proposed Acquisition is consensual and the Purchaser shall have consented in writing (such consent
not to be unreasonably withheld or delayed) to such Acquisition.

 

“Permitted
Dispositions” means any of the following:

 

(a)          sales,
abandonment, or other dispositions of Equipment that is substantially worn, damaged, or obsolete in the Ordinary Course of Business;

 

(b)          sales
of Inventory in the Ordinary Course of Business;

 

(c)          the
granting of Permitted Encumbrances;

 

    	11

    	 

    

 

(e)          surrender
of contractual rights in the Ordinary Course of Business or (ii) the settlement, release or surrender of any contract, tort or
other litigation claims in the Ordinary Course of Business;

 

(f)          any
sale of the real property designated on the tax map of the Office of the Assessor of Miami County, Indiana as Tax Parcel No. 022-16410-00
and having an address at 51 Strawtown Pike, Peru, Indiana; and

 

(g)          any
sale of the real property designated on the tax map of the Office of the Assessor of Utah County, Utah as Lot 1, Plat “M”,
Utah Valley Business Park Subdivision, American Fork, Utah, according to the official plat thereof on file and of record in the
Office of the Utah County Recorder.

 

“Permitted
Encumbrances” means the following types of Liens (other than any such Lien imposed pursuant to the IRC or by ERISA):

 

(i)          Liens
for taxes, assessments or governmental charges or claims the payment of which is not, at the time, required by Section 5.2;

 

(ii)         statutory
Liens of landlords, Liens of carriers, warehousemen, mechanics and materialmen and other Liens imposed by law incurred in the Ordinary
Course of Business for sums not yet delinquent or being contested in good faith, if such reserve or other appropriate provision,
if any, as shall be required by GAAP shall have been made therefor;

 

(iii)        Liens
incurred or deposits made in the Ordinary Course of Business in connection with workers compensation, unemployment insurance and
other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids,
leases, government contracts, trade contracts, performance and return-of-money bonds and other similar obligations (exclusive of
obligations for the payment of borrowed money);

 

(iv)        leases
or subleases granted to others not interfering in any material respect with the Ordinary Course of Business of the Company or any
of its Subsidiaries;

 

(v)         easements,
rights-of-way, restrictions (including zoning restrictions), minor defects, encroachments or irregularities in title and other
similar charges or encumbrances not interfering in any material respect with the Ordinary Course of Business of any Company or
any of its Subsidiaries;

 

(vi)        any
(A) interest or title of a lessor or sublessor under any Operating Lease or Capital Lease not prohibited by this Agreement, (B) restriction
or encumbrance that the interest or title of such lessor or sublessor may be subject to, or (C) subordination of the interest of
the lessee or sublessee under such lease to any restriction or encumbrance referred to in the preceding subclause (B);

 

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(vii)       Liens
in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the
importation of goods;

 

(viii)      Liens
securing the Obligations;

 

(ix)         Liens
for purchase money security interests for equipment purchased in the Ordinary Course of Business or Liens relating to Indebtedness
permitted under Section 6.7(e);

 

(x)          Liens
existing on the Effective Date and set forth or described on Schedule 6.2 hereof; provided, however,
that to qualify as a Permitted Encumbrance, any such Lien described on Schedule 6.2 shall only secure the Indebtedness that
it secures on the Effective Date;

 

(xi)         Liens
(i) in favor of collecting banks arising under the applicable UCC on items in the course of collection, (ii) in favor of a banking
or other depositary institution arising as a matter of law encumbering deposits (including the right of set-off) and which are
within the general parameters customary to the banking industry, (iii) in favor of a financial institution arising as a matter
of law encumbering financial assets on deposit in securities accounts (including the right of set-off) and which are within the
general parameters customary to the securities industry and (iv) that are contractual rights of set-off relating to the establishment
of depository and cash management relations with banks not given in connection with the issuance of Indebtedness for borrowed money
and which are within the general parameters customary to the banking industry;

 

(xii)        Liens
(including the right of set-off) in favor of a bank or other depository institution arising as a matter of law encumbering deposits;

 

(xiii)       Liens
arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into by the
Company or any Subsidiary of the Company in the Ordinary Course of Business;

 

(xiv)      Liens
on insurance policies and the proceeds thereof (whether accrued or not) and rights or claims against an insured to secure liabilities
for premiums to insurance carriers; and

 

(xv)       Liens
securing Permitted Senior Debt.

 

“Person”
shall mean any individual, corporation, partnership, limited liability company, trust, unincorporated organization, or any other
form of entity.

 

“Permitted
Senior Debt” means Indebtedness that is senior or superior or pari passu in right of payment (to any extent) to the Notes
(or any guaranty of the Notes) in an amount equal to or less than $25,000,000 and is otherwise on terms and conditions reasonably
satisfactory to Purchaser.

 

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“Plan”
shall mean any employee benefit plan within the meaning of Section 3(3) of ERISA (including a Pension Benefit Plan), maintained
for employees of any Company or any member of the Controlled Group or any such Plan to which any Company or any member of the Controlled
Group is required to contribute on behalf of any of its employees.

 

“Premises”
has the meaning set forth in Schedule 3.1.

 

“Prepayment
Penalty” has the meaning set forth in the Notes.

 

“Prohibited
Preferred Stock” means any preferred Equity Interest that by its terms is mandatorily redeemable or subject to any other
payment obligation (including any obligation to pay dividends, other than dividends of shares of preferred Equity Interest of the
same class and series payable in kind or dividends of shares of common stock) on or before a date that is less than 1 year after
the Maturity Date, or, on or before the date that is less than 1 year after the Maturity Date, is redeemable at the option of the
holder thereof for cash or assets or securities (other than distributions in kind of shares of preferred Equity Interest of the
same class and series or of shares of common stock).

 

“Purchaser”
has the meaning set forth in the opening paragraph.

 

“Put Price”
has the meaning set forth in the Warrants.

 

“Put Rights”
means the rights of the Holders set forth in Section 4.2 of the Warrants.

 

“RCRA”
shall mean the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq.

 

“Refinancing
Indebtedness” shall mean refinancings, renewals, or extensions of Indebtedness so long as such refinancings, renewals,
or extensions do not result in an increase in the principal amount of the Indebtedness so refinanced, renewed, or extended, other
than by the amount of premiums paid thereon and the fees and expenses incurred in connection therewith and by the amount of unfunded
commitments with respect thereto.

 

“Releases”
has the meaning set forth in Section 4.1(n)(iii).

 

“Reportable
Event” shall mean a reportable event described in Section 4043(b) of ERISA or the regulations promulgated thereunder.

 

“Restricted
Payment” has the meaning given to such term in Section 6.6.

 

“Securities”
shall mean the Notes, the Warrants and the Warrant Equity Interest.

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, and any successor statute.

 

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“Security
Agreement” shall mean each and every grant of a security interest, pledge or lien on any property for the purpose of
securing payment of the Obligations or performance by the Security Agreement issued under this Agreement, and all replacements,
renewals and any other note or notes of like tenor hereafter issued by the Company in substitution or exchange for any thereof.

 

“Senior Lender”
means the holder of Permitted Senior Debt and all successors and assigns. On the Effective Date, the Senior Lender shall be Fifth
Third Bank.

 

“Senior Loan
Documents” means any credit agreement, loan agreement, note agreement other primary debt agreement, note, guaranty, security
agreement, mortgage and any other instrument or agreement relating to the Permitted Senior Debt entered into, now or in the future,
by any Company and the Senior Lender or given by any Company to the Senior Lender, and all alterations, amendments, changes, extensions,
modifications, renewals, replacements, substitutions, joinders, and supplements thereof, as applicable.

 

“Solvent”
means, with respect to any Person, that as of the date of determination both (a) (i) the then fair saleable value of the property
of such Person is (A) greater than the total amount of liabilities (including contingent liabilities) of such Person and (B) not
less than the amount that will be required to pay the probable liabilities of such Person’s then existing debts as they become
absolute and matured considering all financing alternatives and potential asset sales, reasonably available to such Person; (ii)
such Person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction;
and (iii) such Person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond
its ability to pay such debts as they become due; and (b) such Person is “solvent” within the meaning given that term
and similar terms under applicable laws relating to fraudulent transfers and conveyances. For purposes of this definition, the
amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

“Subordination
Agreement” shall mean, that certain Subordination Agreement, dated as of the date hereof, between Purchaser and the Senior
Lender as of the Effective Date, any other subordination or intercreditor agreement with respect to any Permitted Senior Debt which
is in form and substance reasonably satisfactory to Purchaser, and all alterations, amendments, changes, extensions, modifications,
renewals, replacements, substitutions, joinders, and supplements thereof, as applicable.

 

“Subsidiary”
shall mean a corporation or other entity any of whose Equity Interests having ordinary voting power (other than Equity Interests
having such power only by reason of the happening of a contingency) to elect a majority of the directors of such corporation, or
other Persons performing similar functions for such entity, are owned, directly or indirectly, by such Person.

 

“Target 1”
means Target No. 1 as defined on page 39 of the Parent’s 8-K dated September 16, 2014.

 

“Target 2”
means Target No. 2 as defined on page 40 of the Parent’s 8-K filed on September 16, 2014.

 

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“Target 1
Acquisition” means consummation of the acquisition contemplated by the Option Agreement between Target 1 and TCC, dated
September 2, 2014, described on page 39 of the Parent’s 8-K dated September 16, 2014 and previously provided to the Purchaser.

 

“Target 2
Acquisition” means consummation of the acquisition contemplated by the Option Agreement between Target 2 and TCC, dated
September 13, 2014, described on page 40 of the Parent’s 8-K dated September 16, 2014 and previously provided to the Purchaser.

 

“Tax Distributions”
shall mean distributions to equity holders of any Company for the purpose of paying required State and Federal income taxes on
profits generated by such Company.

 

“Total Funded
Debt” shall mean, at any date of determination, all Indebtedness of the Companies and their Subsidiaries for borrowed
money, purchase money Indebtedness, installment sale obligations, Capital Lease obligations, Contingent Obligations of the Companies
and their Subsidiaries, and all other obligations evidenced by notes or bonds, all of the foregoing as determined on a consolidated
basis in accordance with GAAP.

 

“Transaction
Documents” shall mean this Agreement, the Notes, the Warrants, the Security Agreement, the Guaranty and all agreements,
documents, certificates and instruments delivered in connection with any of the foregoing.

 

“UCC”
has the meaning set forth in Section 3.2.

 

“Utah Lease”
shall mean that certain Lease, dated February 6, 2013, between Twinlab and Utah Lab LLC, relating to the Companies’ facility
located at 600 E. Quality Dr., American Fork, UT 84003.

 

“Warrant”
means the Initial Warrant to be issued by the Parent to the Purchaser at the Closing and any the Deferred Warrants issued in connection
with the Deferred Draw Note.

 

“Warrant Equity
Interest” means the Equity Interest of the Parent into which the Warrant shall be exercisable, as provided in the Warrant.

 

“Warrant Register”
has the meaning set forth in Section 2.2.

 

Section
2.            Purchase and Sale of Securities

 

2.1         Purchase
and Sale of Securities.

 

(a)          Purchase
and Sale. The Purchaser hereby agrees, subject to the terms and conditions of this Agreement, to purchase from the Companies,
and the Companies hereby agree to sell to the Purchaser, at the Closing the following Securities:

 

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(i)          The
Note in the stated principal amount of Eight Million Dollars ($8,000,000) (the “Initial Note”).
The Initial Note shall be substantially in the form attached hereto as Exhibit 2.1(a)(i) and shall include such notations,
legends or endorsements set forth therefor or required by law. The Initial Note shall be dated the date of its issuance. The terms
and provisions contained in the Initial Note shall constitute, and are hereby expressly made, a part of this Agreement and, to
the extent applicable, the Company and the Purchaser, by their execution and delivery of this Agreement, expressly agree to such
terms and provisions and to be bound thereby; and

 

(ii)         The
Warrants. The Initial Warrant shall be substantially in the form attached hereto as Exhibit 2.1(a)(ii)(A) and shall
be exercisable into the Equity Interest of the Company as provided therein. Warrants in an amount 4,091,122 shares of common stock
of the Parent will be issued in connection with the purchase of the Initial Note (the “Initial Warrant”). The
terms and provisions contained in the Warrants shall constitute, and are hereby expressly made, a part of this Agreement and, to
the extent applicable, the Parent and the Purchaser, by their execution and delivery of this Agreement, expressly agree to such
terms and provisions and to be bound thereby.

 

(b)          Closing.
The purchase and sale of the Initial Note and the Initial Warrant shall take place on the Effective Date at a closing (the “Closing”)
at a mutually agreed upon location on the date of this Agreement. At the Closing, the Companies will deliver to the Purchaser the
Initial Note and the Parent will deliver to the Purchaser the Initial Warrant, dated as of the Effective Date, to be purchased
by the Purchaser in accordance with Section 2.1(a) (in such permitted denomination or denominations and registered in the
Purchaser’s name or the name of such nominee or nominees as the Purchaser may reasonably request) against payment of Eight
Million Dollars ($8,000,000) (less certain fees and expenses as set forth in Section 2.1(c)(i) below) as the total consideration
for the Initial Note and the Initial Warrant by wire transfer to the bank account of the Companies as set forth on Exhibit 2.1(b)
or as otherwise acceptable to Companies.

 

(c)          Deferred
Draw Note. The Purchaser hereby agrees to purchase from the Companies and the Companies hereby agree to sell to the Purchaser,
on such date (the “Deferred Draw Closing Date”) as is mutually agreed to by the Companies and the Purchaser
but in any event on or prior to the first anniversary hereof, an additional Note in the stated principal amount of Two Million
dollars ($2,000,000) (the “Deferred Draw Note”), provided that (i) both before and after the consummation of
the purchase of the Deferred Draw Note and the use of proceeds thereof, no Default or Event of Default shall have occurred and
be continuing and (ii) the proceeds of the Deferred Draw Note shall be used as set forth in Section 2.6. The Deferred Draw Note
shall be substantially in the form attached hereto as Exhibit 2.1(c)(i) and shall include such notations, legends or endorsements
set forth therefor or required by law. The Deferred Draw Note shall be dated the date of its issuance. The terms and provisions
contained in the Deferred Draw Note shall constitute, and are hereby expressly made, a part of this Agreement and, to the extent
applicable, the Companies and the Purchaser, by their execution and delivery of this Agreement, expressly agree to such terms and
provisions and to be bound thereby. A Warrant in an amount equal to 4,960,740 shares of common stock of the Parent (reduced by
the number of Equity Interests issued under the Initial Warrant) will be issued to the Purchaser in connection with the purchase
of the Deferred Draw Note (the “Deferred Warrant”).  The Deferred Warrant shall be substantially in the
form attached hereto as Exhibit 2.1(c)(ii) and shall be exercisable into the Equity Interest of the Company as provided therein;
provided, further, that, upon the issuance of the Deferred Warrant, the Initial Warrant shall be cancelled and replaced in its
entirety by such Deferred Warrant and the Purchaser, the Parent and the Companies agree to take all reasonably necessary steps
to effect the foregoing upon the purchase of the Deferred Draw Note.

 

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(d)          Other
Fees and Expenses.

 

(i)          At
the Closing, the Companies shall pay to the Purchaser or to such other Persons as the Purchaser shall direct, by wire transfer
payment (or, at the Purchaser’s election, the Purchaser shall be entitled to deduct such amounts from the purchase price
for the Securities) all reasonable fees and expenses relating to this Agreement and the other Transaction Documents, including:
(A) the Purchaser’s out-of-pocket expenses incurred in connection with the transactions contemplated by this Agreement and
the other Transaction Documents, including expenses and all costs incurred in connection with such Purchaser’s review of
the Companies’ financial records and the Companies’ business and operations; (B) the reasonable fees, expenses
and other charges of the Purchaser’s counsel; and (C) a fee to Purchaser of One Hundred Sixty Thousand Dollars ($160,000)
less any deposit previously paid by the Companies.

 

(ii)         Thereafter,
upon demand by the Purchaser, the Companies shall pay (A) any out-of-pocket fees and expenses (including the reasonable fees and
expenses of counsel) in connection with any registration or qualification of the Securities required in connection with the offer
and sale of the Securities pursuant to this Agreement under the securities or “blue sky” laws of any jurisdiction requiring
such registration or qualification or in connection with obtaining any exemptions from such requirements; and (B) the Purchaser’s
expenses (including the fees and expenses of counsel) relating to any amendment, supplement or modification of, or any waiver,
consent, enforcement or preservation of rights under, this Agreement, the Securities or any other Transaction Document, or any
other documents contemplated hereby or thereby, including any refinancing or restructuring of the Obligations in the nature of
a “work-out” or pursuant to bankruptcy or insolvency proceedings, or in any litigation or other Proceeding.

 

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(iii)        On
the Deferred Draw Closing Date, the Companies shall pay to the Purchaser or to such other Persons as the Purchaser shall direct,
by wire transfer payment (or, at the Purchaser’s election, the Purchaser shall be entitled to deduct such amounts from the
purchase price for the Securities) all reasonable fees and expenses relating to this Agreement and the other Transaction Documents,
including: (A) the Purchaser’s out-of-pocket expenses incurred in connection with the Deferred Draw Note contemplated by
this Agreement and the other Transaction Documents, including expenses and all costs incurred in connection with such Purchaser’s
review of the Companies’ financial records and the Companies’ business and operations; (B) the reasonable fees,
expenses and other charges of the Purchaser’s counsel; and (C) a fee to Purchaser of Forty Thousand Dollars ($40,000).

 

(e)          Issue
Price. The Companies and the Purchaser agree that for purposes of Section 1271 et seq. of the IRC, the aggregate
issue price of each Note is 100% of its principal amount and the price of each Warrant is the price set forth in the agreement
relating to the issuance thereof, and that this agreement is intended to constitute agreement as to the issue price for all federal
and other income tax purposes.

 

2.2         Registration
of Securities.

 

The Parent
shall cause to be kept at its principal office a register for the registration and transfer of the Notes (the “Note Register”)
and a register for the registration and transfer of the Warrants (the “Warrant Register”). The name and address
of the Holders of the Notes and the names and addresses of the transferee or transferees of the Notes (if the Notes are transferred)
shall be registered in the Note Register. The name and address of the Holder of Warrants and the names and addresses of the transferee
or transferees of the Warrants (if any Warrant is transferred) shall be registered in the Warrant Register. The Person in whose
name any registered Security shall be registered shall be deemed and treated as the owner and holder thereof for all purposes of
this Agreement and the Companies shall not be affected by any notice to the contrary, until due presentment of such Security for
registration of transfer so provided in this Section 2.2. Payment of or on account of the principal, premium, if any, and
interest on, or any other amount in respect of, any registered Securities shall be made to or upon the written order of such registered
holder.

 

2.3         Delivery
Expenses.

 

If a Holder
surrenders any Note or any Warrant to the Companies for any reason, the Companies agrees to pay the cost of delivering to the Holder’s
home office the surrendered Security and each Security issued in substitution or replacement for the surrendered Security.

 

2.4         Issue
Taxes.

 

The Companies
agree to pay all taxes, including the documentary stamp taxes, (other than taxes in the nature of income, franchise or gift taxes)
in connection with the issuance, sale, delivery or transfer by the Companies to the Purchaser of the Notes and the Warrants and
the execution and delivery of the agreements and instruments contemplated hereby and any modification of any of such Securities,
agreements and instruments and will hold the Purchaser harmless without limitation as to time against any and all liabilities with
respect to any and all such taxes. The obligations of the Companies under this Section 2.4 shall survive the payment or prepayment
of the Notes, the exercise of the Warrants and the termination of this Agreement.

 

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2.5         General
Provisions Regarding Payments.

 

(a)          Manner
and Time of Payment. All payments by the Companies of principal, premium, if any, interest and other amounts hereunder shall
be made in U.S. dollars in same day funds, without defense, setoff or counterclaim, free of any restriction or condition, and delivered
the Holder’s account not later than 4:00 p.m. (New York time) on the date due unless such day is not a Business Day,
in which case the Companies shall make such payments on the next succeeding Business Day, and interest shall accrue on the aggregate
amount of such payments until such amount is paid and payment of such accrued interest shall be made concurrently with the payment
of such amount. Funds received by the Holder after 4:00 p.m. (New York time) on the date due shall be deemed to have been paid
by the Companies on the next succeeding Business Day and interest shall accrue on such amount paid until such next succeeding Business
Day.

 

(b)          Application
of Payments to Principal and Interest. All payments in respect of the principal amount of the Note shall include payment of
accrued interest on the principal amount being paid, and all such payments shall be applied to the payment of interest before application
to principal; provided, however, that from and after the occurrence of an Event of Default, in addition to such payments of principal
and interest, all payments hereunder shall include fees, costs and expenses due to the Purchaser hereunder, and the Purchaser may
apply all payments made hereunder to such Obligations, including all fees, costs and expenses, and in such order, as it may elect
in its sole discretion.

 

The Companies
shall repay the outstanding principal amount of each Note with interest thereon in the manner and in accordance with the terms
and conditions of such Note and the other Transaction Documents.

 

2.6         Use
of Proceeds.

 

The Companies
shall use the proceeds of Notes and the Warrants solely to (a) pay a portion of the consideration for the Target 2 Acquisition,
(b) pay costs relating to the Closing and the closing of the Deferred Draw Note and the Target 2 Acquisition ,(c) for working capital
and general corporate purposes, or (d) to pay down the revolving loan under the Senior Loan Documents which can be re-drawn (subject
to the limitations set forth in the Senior Loan Documents) for any of the foregoing.

 

2.7         Margin
Regulations.

 

No portion
of the proceeds of any Securities under this Agreement shall be used by the Companies in any manner that would reasonably be expected
to cause the issuance and sale of the Securities or the application of such proceeds to violate Regulation U, Regulation T or Regulation
X of the Board of Governors of the Federal Reserve System or any other regulation of such Board or to violate the Exchange Act,
in each case as in effect on the date or dates of such issuance and sale and such use of proceeds.

 

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2.8         Maximum
Interest.

 

At no time
shall the Companies be obligated or required to pay interest on the principal balance due hereunder at a rate which could subject
the Purchaser to either civil or criminal liability as a result of being in excess of the maximum interest rate which the Companies
are permitted by applicable law to contract or agree to pay. If by the terms of the Notes, this Agreement and/or the other Transaction
Documents, the Company is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in
excess of such maximum rate, the applicable interest rate or the Default Rate or other payments pursuant to the Transaction Documents
deemed to be interest, as the case may be, shall be deemed to be immediately reduced to such maximum rate and all previous payments
in excess of the maximum rate shall be deemed to have been payments in reduction of principal and not on account of the interest
due hereunder. All sums paid or agreed to be paid to the Purchaser on account of the Obligations, shall, to the extent permitted
by applicable law, be amortized, prorated, allocated, and spread throughout the full stated term of the applicable Note until payment
in full so that the rate or amount of interest on account of the Obligations does not exceed the maximum lawful rate of interest
from time to time in effect and applicable to the Obligations for so long as the Obligations are outstanding.

 

Section
3.            Collateral: General Terms

 

3.1         Security
Interest Created; Obligations Secured.

 

To secure
the prompt payment and performance to the Purchaser of the Obligations, the Companies hereby assign, pledge and grant to the Purchaser
a continuing security interest in and Lien on the Collateral subject only to Permitted Encumbrances. The Companies (other than
Parent) shall cause each present or future owner of any Equity Interest of any Company to assign, pledge and grant to the Purchaser
a continuing security interest in and Lien on their Equity Interest in such Company and to execute deliver a security agreement
covering such Equity Interests in form and content satisfactory to the Purchaser.

 

3.2         Financing
Statements.

 

The Companies
authorize the Purchaser to file financing statements with respect to the security interest of the Purchaser, continuation statements
with respect thereto, and any amendments to such financing statements. The Companies agrees that, notwithstanding any provision
in the Uniform Commercial Code in the applicable jurisdiction (the “UCC”) to the contrary, the Companies shall
not file a termination statement of any financing statement filed by the Purchaser in connection with any security interest granted
under this Agreement without Purchaser’s written consent.

 

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Section
4.            Representations and Warranties

 

4.1         Companies’
Representations and Warranties.

 

Each Company
represents and warrants to the Purchaser as of the Effective Date as follows:

 

(a)          Financial
Information. All financial statements and other information concerning the Companies and their Subsidiaries delivered to Purchaser
by the Companies and their Subsidiaries in connection with the transaction described in this Agreement (collectively, the “Financial
Information”) are true, correct and complete in all material respects; there have been no restatements of or adjustments
to the Financial Information since the date such Financial Information was prepared or delivered to the Purchaser, and the Companies
and their Subsidiaries understand that the Purchaser is relying upon the Financial Information and the Companies and their Subsidiaries
represent that such reliance is reasonable. All financial statements of the Companies and their Subsidiaries included in the Financial
Information were prepared in accordance with customary accounting practices applied on a consistent basis during the periods involved,
and fairly present as of the date of such financial statements the financial condition of each individual or entity to which they
pertain. No change has occurred with respect to the financial condition of any of the Companies, the Companies’ Subsidiaries
or the Collateral as reflected in the Financial Information which has not been disclosed in writing to the Purchaser or has had,
or could reasonably be expected to result in a Material Adverse Effect. Attached as Schedule 4.1(a) is a true and correct
copy of: (i) Twinlab Holdings’ and its Subsidiaries’ consolidated income statement for the Fiscal Year ending
December 31, 2013, and (ii) a copy of the unaudited consolidated balance sheet of TCC and its Subsidiaries as of August 31, 2014
and the related consolidated statements of income and retained earnings and the related statements of cash flows of the Companies
and its Subsidiaries for the period from January 1, 2014 through August 31, 2014.

 

(b)          Formation
and Qualification. Each of the Companies and their Subsidiaries are duly organized or formed, validly existing and in good
standing under the laws of its state of incorporation or formation. Each of the Companies and their Subsidiaries are qualified
as a foreign corporation to do business in the state(s) where the failure to be qualified would reasonably be expected to result
in a Material Adverse Effect. No Company is a “foreign corporation,” “foreign partnership,” “foreign
trust,” “foreign estate” or “foreign person” (as those terms are defined by the IRC, as amended).

 

(c)          Authority.
All necessary action has been taken to authorize the execution, delivery and performance by each Company of this Agreement and
the other Transaction Documents. The person(s) who have executed this Agreement on behalf of each Company are duly authorized so
to do. Upon execution by each Company, this Agreement and the other Transaction Documents shall constitute the legal, valid and
binding obligations of such Company enforceable against such Company in accordance with their respective terms, except (a) as the
same may be limited by bankruptcy, insolvency, reorganization moratorium or similar laws now or hereafter in effect relating to
creditors rights generally and (b) that the remedy of specific performance and injunctive and other forms of equitable relief may
be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

 

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(d)          Solvency.
Each Company is and shall at all times remain Solvent.

 

(e)          Litigation.
Except as set forth in Schedule 4.1(e), there are no suits, actions, proceedings or investigations pending, or to its actual
knowledge, threatened against or involving a Company or any of its Subsidiaries, the Collateral or the Premises (as defined on
Schedule 3.1 hereto) before any arbitrator or any governmental authority, agency, department, commission, bureau, board,
instrumentality, court or quasi-governmental authority having jurisdiction or supervisory or regulatory authority over the Collateral
or any of the Companies or the Companies’ Subsidiaries (“Governmental Authority”), except for such suits,
actions, proceedings or investigations which, individually or in the aggregate, have not had, and could not reasonably be expected
to result in, a Material Adverse Effect.

 

(f)          Employee
Benefit Plan. Other than as set forth on Schedule 4.1(f) hereto, the Companies and their Subsidiaries have no Plans
and have never had any Plans.

 

(g)          No
Conflict. No Company is, and the authorization, execution, delivery and performance of this Agreement and the other Transaction
Documents will not result, in any breach or default under any other document, instrument or agreement to which a Company or any
of its Subsidiaries is a party or to which a Company or any of its Subsidiaries, the Premises, the Collateral or any of the property
of a Company or any of its Subsidiaries is subject or bound, except for such breaches or defaults which, individually or in the
aggregate, have not had, and would not reasonably be expected to result in, a Material Adverse Effect. The authorization, execution,
delivery and performance of this Agreement and the other Transaction Documents will not violate any applicable law, statute, regulation,
rule, ordinance, code, rule or order. The Collateral is not subject to any right of first refusal, right of first offer or option
to purchase or lease granted to a third party.

 

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(h)          Location
and Condition of Collateral. The Collateral is in compliance with all applicable statutes, regulations, rules, ordinances,
codes, licenses, permits, orders and approvals of each Governmental Authority having jurisdiction over the Collateral, and all
policies or rules of common law, in each case, as amended, and any judicial or administrative interpretation thereof, including
any judicial order, consent, decree or judgment applicable to any Company or any of its Subsidiaries (collectively, the “Applicable
Regulations”), except for such noncompliance which has not had, and could not reasonably be expected to result in, a
Material Adverse Effect. All required licenses and permits, both governmental and private, to use and operate the Collateral and
to use and operate each of the Premises are in full force and effect, except for such licenses and permits the failure of which
to obtain has not had, and could not reasonably be expected to result in, a Material Adverse Effect. Except for Collateral having
an aggregate value of $200,000 or less, the Collateral is located at the Premises and is in good and efficient order, condition
and repair and well-maintained, ordinary wear and tear excepted, and is fully operational. The Companies own the Collateral, free
and clear of all liens, encumbrances, charges and security interests of any nature whatsoever except for Permitted Encumbrances.
The Collateral consists in part of all the inventory, equipment (to the extent owned and not leased by a Company), machinery (to
the extent owned and not leased by a Company), furniture, appliances, trade fixtures, and goods required to be maintained by the
Companies and necessary for the proper and prudent operation of the business of the Companies. Purchaser shall have a perfected
lien upon and continuing security interest in the Collateral pursuant to this Agreement, the Security Agreement and the UCC-1 Financing
Statements filed by Purchaser with respect to the security interest created by this Agreement and the Security Agreement subject
only to Permitted Encumbrances.

 

(i)          Leases.
The Companies have delivered to Purchaser a true, correct and complete copy of each lease, together with all amendments thereto,
with respect to each of the Premises set forth on Schedule 3.1 (the “Leases”). The Leases are the only
agreements between the lessors (“Lessors”) and Companies and their Subsidiaries with respect to the Premises.
The Leases are in full force and effect. Except in favor of Senior Lender, no Company nor any of its Subsidiaries has assigned,
transferred, mortgaged, hypothecated or otherwise encumbered any of its rights or interests in the Leases. Neither the Companies
nor any of their Subsidiaries nor, to each Company’s actual knowledge, Lessors are currently in default (beyond applicable
grace and cure periods) of any of their obligations under the Leases. To each Company’s actual knowledge, no event has occurred
and no condition exists that, with the giving of notice or the lapse of time or both, would constitute a default by a Company,
any of its Subsidiaries, or Lessors under the Leases. No Company nor any of its Subsidiaries owns any real property except as set
forth in Schedule 4.1(i).

 

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(j)          Patriot
Act. As of the Effective Date and as of the date of execution of any of the Transaction Documents: (i) none of the Companies,
Guarantor, any individual or entity owning directly or indirectly any interest in the Companies or any of their Subsidiaries, is
an individual or entity whose property or interests are subject to being blocked under any of the OFAC Laws and Regulations or
is otherwise in violation of any of the OFAC Laws and Regulations; (ii) the Companies and their Subsidiaries have taken all reasonable
measures, in accordance with all applicable Anti-Money Laundering Laws, with respect to each holder of a direct or indirect interest
in any Company or any of its Subsidiaries, to assure that funds invested by such holders in any Company or any of its Subsidiaries
are derived from legal sources; (iii) to each Company’s knowledge after making due inquiry, neither any Company nor any of
its Subsidiaries nor any holder of a direct or indirect interest in any Company or any of its Subsidiaries (A) is under investigation
by any Governmental Authority for, or has been charged with, or convicted of, any violation of any Anti-Money Laundering Laws,
or drug trafficking, terrorist-related activities or other money laundering predicated crimes or a violation of the BSA, (B) has
been assessed civil penalties under these or related laws, or (C) has had any of its funds seized or forfeited in an action under
these or related laws; and (iv) the Companies and their Subsidiaries have taken reasonable steps, consistent with industry practice
for comparable organizations and in any event as required by law, to ensure that each Company and each of the Companies’
Subsidiaries are and shall be in compliance with all (A) Anti-Money Laundering Laws and (B) OFAC Laws and Regulations.

 

(k)          Survival
of Representations and Warranties. All representations and warranties of each Company and each of its Subsidiaries contained
in this Agreement and the other Transaction Documents shall be true at the time of such Company’s execution of this Agreement
and the other Transaction Documents, and shall survive the execution, delivery and acceptance thereof by the parties thereto and
the closing of the transactions described therein or related thereto.

 

(l)          Tax
Returns. Each Company’s and each of its Subsidiaries’ federal tax identification number is set forth on Schedule
4.1(l). Each Company and each of its Subsidiaries has filed (or is on extension granted by the applicable taxing authority
with respect to file) all federal, state and local tax returns and other reports required by law to file and has paid all taxes,
assessments, fees and other governmental charges that are due and payable and that no tax liens exist. Federal, state and local
income tax returns of each Company and each of its Subsidiaries have been filed with the appropriate taxing authority or closed
by applicable statute and satisfied for all Fiscal Years prior to and including the Fiscal Year ending 2013. The provision for
taxes, if applicable, on the books of the Companies and their Subsidiaries is adequate for all years not closed by applicable statutes,
and for its current Fiscal Year, and no Company nor any of its Subsidiaries has knowledge of any deficiency or additional assessment
in connection therewith not provided for on its books. No Company nor any of its Subsidiaries has been the subject of any tax audit
nor has it been notified of any upcoming tax audits except as set forth on Schedule 4.1(l).

 

(m)          Corporate
Name. Except as disclosed in the Parent’s Securities and Exchange Commission filings, no Company nor any of its Subsidiaries
has been known by any other corporate name and does not sell Inventory under any other name except as disclosed on Schedule 4.1(aa)
nor has Company nor any of its Subsidiaries been the surviving corporation of a merger or consolidation or acquired all or substantially
all of the assets of any Person.

 

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(n)          O.S.H.A.
and Environmental Compliance.

 

(i)          Each
Company and each of its Subsidiaries has duly complied in all material respects with, and its facilities, business, assets, property,
leaseholds and Equipment are in compliance in all material respects with, the provisions of the Federal Occupational Safety and
Health Act and all Environmental Laws; there are no outstanding citations, notices or orders of non-compliance issued to any Company
or any of its Subsidiaries or relating to their business, assets, property, leaseholds or Equipment under any such laws, rules
or regulations.

 

(ii)         Each
Company and each of its Subsidiaries has been issued all required federal, state and local licenses, certificates or permits relating
to all applicable Environmental Laws.

 

(iii)        There
are no visible signs of releases, spills, discharges, leaks or disposal (collectively referred to as “Releases”)
of Hazardous Substances at, upon, under or within any real property owned or leased by any Company or any of its Subsidiaries except
Releases handled in accordance with all applicable government regulations; to each Company’s actual knowledge, there are
no underground storage tanks or polychlorinated biphenyls on any real property leased by any Company or any of its Subsidiaries;
to each Company’s actual knowledge, no real property owned or leased by any Company or any of its Subsidiaries has ever been
used as a treatment, storage or disposal facility of Hazardous Waste; and to each Company’s actual knowledge, no Hazardous
Substances are present on any Premises leased by any Company or any of its Subsidiaries, excepting such quantities as are handled
in accordance with all applicable manufacturer’s instructions and governmental regulations and in proper storage containers
and as are necessary for the operation of the commercial business of such Company, any of its Subsidiaries or of its tenants.

 

(o)          Patents,
Trademarks, Copyrights and Licenses. All patents, patent applications, trademarks, trademark applications, service marks, service
mark applications, copyrights, copyright applications, design rights, tradenames, assumed names, trade secrets and licenses owned
or utilized by any Company (the “Intellectual Property”) are set forth on Schedule 4.1(o). To each Company’s
knowledge, all such Intellectual Property is valid and has been duly registered or filed with all appropriate Governmental Authorities
and constitutes all of the intellectual property rights which are necessary for the operation of its business. To each Company’s
actual knowledge, there is no objection to or pending challenge to the validity of any such Intellectual Property and no Company
is aware of any grounds for any challenge.

 

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(p)          Licenses
and Permits. Each Company and each of its Subsidiaries (i) is in compliance with and (ii) has procured and is now in possession
of, all material licenses or permits required by any applicable law or regulation for the operation of its business in each jurisdiction
wherein it is now conducting business and where the failure to procure such licenses or permits would have a Material Adverse Effect
on such Company or any of its Subsidiaries.

 

(q)          Default
of Indebtedness. All Indebtedness of the Companies and their Subsidiaries existing on the Effective Date is set forth on Schedule
4.1(q). No Company nor any of its Subsidiaries is in default in the payment of the principal of or interest on any Indebtedness
or under any instrument or agreement under or subject to which any Indebtedness has been issued and no event has occurred under
the provisions of any such instrument or agreement which with or without the lapse of time or the giving of notice, or both, constitutes
or would constitute an event of default thereunder.

 

(r)          No
Default. Except for past due payments owed on trade payables incurred in the ordinary course of business or as otherwise set
forth on Schedule 4.1(r), no Company nor any of its Subsidiaries is in default in the payment or performance of any of its contractual
obligations and no Event of Default is existing and no event has occurred which with or without the lapse of time or the giving
of notice, or both, constitutes or would constitute an Event of Default.

 

(s)          No
Burdensome Restrictions. No Company nor any of its Subsidiaries is party to any contract or agreement the performance of which
would have a Material Adverse Effect on such Company or any of its Subsidiaries. No Company nor any of its Subsidiaries has agreed
or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now
owned or hereafter acquired, to be subject to a Lien which is not a Permitted Encumbrance.

 

(t)          No
Labor Disputes. No Company nor any of its Subsidiaries is involved in any labor dispute; there are no strikes or walkouts or
union organization of any Company’s or any of its Subsidiaries’ employees threatened or in existence and no labor contract
is scheduled to expire prior to the Maturity Date.

 

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(u)          Authorized
Capital. The authorized Equity Interests of Parent consist of (i) 5,000,000,000 shares of common stock, of which 220,000,000
common shares are issued and outstanding as of the date hereof and (ii) 500,000,000 shares of preferred stock, of which no preferred
shares are issued and outstanding. All outstanding Equity Interests are duly and validly issued, fully paid and nonassessable and
are owned beneficially and of record by the Persons specified in Schedule 4.1(u). The issuance and sale of such Equity
Interests, upon such issuance and sale, (A) has either been registered or qualified under applicable Federal and state securities
laws or (B) is exempt therefrom. There are no outstanding subscriptions, options, warrants, rights (including registration rights
and preemptive rights) or any other agreements or commitments of any nature relating to any Equity Interests of the Company, except
as disclosed in Schedule 4.1(u). The Purchaser has been furnished a true and complete copy of each certificate, agreement
and document disclosed in Schedule 4.1(u). The Equity Interest into which the Initial Warrant is exercisable on the
Effective Date is equal to 4,091,122 shares of common stock of the Parent and the Equity Interest into which the Deferred Warrant
is exercisable on the Deferred Draw Closing Date is equal to 869,618 shares of the common stock of the Parent, each as specified
in Schedule 4.1(u).

 

(v)         Swaps.
No Company nor any of its Subsidiaries is a party to, nor will it be a party to, any swap agreement whereby the Company has agreed
or will agree to swap interest rates or currencies unless same provides that damages upon termination following an event of default
thereunder are payable on an unlimited “two way basis” without regard to fault on the part of either party.

 

(w)          Conflicting
Agreements. Except as provided in the Senior Loan Documents, no provision of any mortgage, indenture, contract, agreement,
judgment, decree or order binding on a Company or any of its Subsidiaries or affecting the Collateral conflicts with, or requires
any third party consent which has not already been obtained to, or would in any way prevent the execution, delivery or performance
of, the terms of this Agreement or the other Transaction Documents.

 

(x)          [Reserved].

 

(y)          Business
and Property of Company. On the Effective Date, each Company and each of its Subsidiaries owns or leases all the property and
possesses all of the rights and consents necessary for the conduct of the business of such Company and its Subsidiaries.

 

(z)          Compliance
with Laws. Neither the Companies nor any of the Companies’ Subsidiaries is in violation of any applicable law in any
respect which would reasonably be expected to have a Material Adverse Effect on the Companies or any of their Subsidiaries, nor
is any Company or any of such Company’s Subsidiaries in violation of any order of any Governmental Authority or arbitration
board or other tribunal.

 

(aa)         Trade
Names. All trade names or styles under which a Company or any of its Subsidiaries sells Inventory or Equipment, creates Receivables
or conducts a portion of its business, or to which instruments in payment of Receivables are made payable, are listed in Schedule 4.1(aa).

 

(bb)         Not
a Regulated Entity. Neither the Companies nor any of its Subsidiaries is (i) an “investment company” registered
or required to be registered under the Investment Company Act of 1940, nor is it controlled by such a company; (ii) a “holding
company,” or a “subsidiary company” of a “holding company,” or an “affiliate” of a “holding
company” or of a “subsidiary company” of a “holding company,” within the meaning of the Public Utility
Holding Company Act of 1935 or (iii) subject to regulation under the Federal Power Act, the Interstate Commerce Act, any public
utilities code or any other Applicable law regarding its authority to incur the Indebtedness arising under any Transaction Document.

 

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(cc)         
Certain Fees. No brokers or finders fee or commission will be payable with respect to this Agreement, any other Transaction
Documents or any of the transactions contemplated hereby.

 

(dd)         Private
Offering. Based upon the representations and warranties for the Purchaser set forth in Section 4.2 hereof, at Closing and at
the closing of the Deferred Draw Note, the sale of the Securities hereunder shall be exempt from the registration and prospectus
delivery requirements of the Securities Act. In the case of each offer or sale of the Securities, no form of general solicitation
or general advertising was used by any Company or its respective representatives, including advertisements, articles, notices or
other communication published in any newspaper, magazine or similar medium or broadcast over television or radio, or any seminar
or meeting whose attendees have been invited by any general solicitation or general advertising. Except as disclosed in the Parent’s
Securities and Exchange Commission filings or otherwise disclosed to the Purchaser in writing, no securities have been issued and
sold by any Company within the six-month period immediately prior to the Effective Date. Each Company agrees that neither it, nor
anyone acting on its behalf, will offer or sell the Securities, or any portion of them, if such offer or sale would bring the issuance
and sale of the Securities to the Purchaser hereunder within the provisions of Section 5 of the Securities Act nor offer any
similar securities for issuance or sale to, or solicit any offer to acquire any of the same from, or otherwise approach or negotiate
with respect thereto with, anyone if the sale of the Securities and any such securities could be integrated as a single offering
for the purposes of the Securities Act, including Regulation D thereunder.

 

(ee)         Disclosure.
No representation or warranty made by any Company or any of its Subsidiaries in this Agreement, in any other Transaction Document
or in any financial statement, report, certificate or any other document furnished in connection herewith contains any untrue statement
of a material fact or omits to state any material fact necessary to make the statements herein or therein not misleading. There
is no fact known to any Company or any of its Subsidiaries which reasonably should be known to such Company or any of its Subsidiary
which such Company has not disclosed to the Purchaser in writing which would reasonably be expected to have a Material Adverse
Effect on such Company or any of its Subsidiaries.

 

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4.2         Purchaser’s
Representations and Warranties.

 

The Purchaser
represents and warrants to the Companies as of the Effective Date as follows:

 

(a)          Purchase
for Own Account. The Purchaser is purchasing the Securities to be purchased by it solely for its own account, for investment
purposes, and not as nominee or agent for any other Person and not with a view to, or for offer or sale in connection with, any
distribution thereof (within the meaning of the Securities Act) that would be in violation of the securities laws of the United
States of America or any state thereof, without prejudice, however, to its right at all times to sell or otherwise dispose of all
or any part of said Securities pursuant to a registration statement under the Securities Act or pursuant to an exemption from the
registration requirements of the Securities Act, and subject, nevertheless, to the disposition of its property being at all times
within its control.

 

(b)          Accredited
Investor. The Purchaser (i) is knowledgeable, sophisticated and experienced in business and financial matters; (ii) previously
invested in securities similar to the Securities and it acknowledges that the Securities have not been registered under the Securities
Act and understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities
Act or such sale is permitted pursuant to an available exemption from such registration requirement; (iii) is able to bear the
economic risk of its investment in the Securities and is presently able to afford the complete loss of such investment; and (iv)
is an “accredited investor” as defined in Regulation D promulgated under the Securities Act.

 

(c)          Authorization,
etc. The Purchaser has full power and authority, as the case may be, to enter into this Agreement and to carry out the transactions
contemplated hereby. This Agreement is a valid and binding agreement of the Purchaser, enforceable against it in accordance with
its terms except (a) as the same may be limited by bankruptcy, insolvency, reorganization moratorium or similar laws now or hereafter
in effect relating to creditors rights generally and (b) that the remedy of specific performance and injunctive and other
forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor
may be brought.

 

(d)          No
Conflict. The execution, delivery and performance of this Agreement and the related Transaction Documents by Purchaser does
not conflict with or result in a default under any other agreement, document or instrument to which Purchaser is a party.

 

Section
5.            Affirmative Covenants

 

Each Company covenants
and agrees that, until payment in full of all the Obligations, unless the Purchaser shall otherwise give prior written consent,
it shall perform, or cause the performance of, all covenants in this Section 5.

 

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5.1         Reports.

 

Each Company
will deliver to the Purchaser:

 

(a)          Events
of Default, etc.. Promptly upon any officer, director (other than any director designated by the Purchaser) or employee of
such Company obtaining actual knowledge (i) that any Person has given any written notice to such Company or any of its Subsidiaries
or taken any other material action with respect to a claimed default or event or condition of the type referred to in Section 11.1,
(ii) of any condition or event that constitutes a default or event of default with respect to or under the Indebtedness, or having
actual knowledge that any holder of Indebtedness has given any written notice or taken any other material action with respect to
a claimed default or event of default, with respect to any portion of such Indebtedness, or (iii) of the occurrence of any event
or change that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect, an officer’s certificate
specifying the nature and period of existence of such condition, event or change, or specifying the notice given or action taken
by any such Person and the nature of such claimed Default, Event of Default, event or condition, and what action such Company has
taken, is taking and proposes to take with respect thereto;

 

(b)          Litigation
or Other Proceedings. Promptly, but in no event later than three (3) Business Days after, upon any officer, director (other
than any director designated by the Purchaser) or employee of such Company obtaining actual knowledge of (A) the institution of
any action, suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration against
or affecting such Company, any of its Subsidiaries or any property of the Company (collectively, “Litigation”)
not previously disclosed in writing by the Company and its Subsidiaries to the Purchaser or (B) any material development in any
Insolvency Proceeding that, in the case of subclause (A) or (B):

 

(i)          if
adversely determined, has a reasonable possibility of exceeding $250,000.00 in damages; or

 

(ii)         seeks
to enjoin or otherwise prevent the consummation of, or to recover any damages or obtain relief as a result of, the transactions
contemplated hereby;

 

written notice thereof describing
material details of such matters together with such other information as may be reasonably available to such Company to enable
Purchaser and their counsel to evaluate such matters; and (ii) within twenty (20) days after the end of each fiscal quarter of
such Company, a schedule of all Litigation involving an alleged liability of, or claims against or affecting, such Company equal
to or greater than $250,000.00, and promptly after written request by the Purchaser such other information as may be reasonably
requested by the Purchaser to enable the Purchaser and its counsel to evaluate any of such Litigation;

 

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(c)          ERISA
Events. Promptly upon obtaining actual knowledge of the occurrence of or forthcoming occurrence of an ERISA Event, a written
notice specifying the nature thereof, what action such Company has taken, is taking or proposes to take with respect thereto and,
when known, any action taken or threatened by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto;

 

(d)          ERISA
Notices. With reasonable promptness, copies of (i) each Schedule B (Actuarial Information) to the annual report (Form
5500 Series) filed by such Company or any of its Subsidiaries with the Internal Revenue Service with respect to each Pension Benefit
Plan; (ii) all written notices received by such Company or any of its Subsidiaries from a Multiemployer Plan sponsor concerning
an ERISA Event; and (c) such other documents or governmental reports or filings relating to any Employee Benefit Plan maintained
or contributed to by such Company or any of its Subsidiaries as the Purchaser shall reasonably request;

 

(e)          Financial
Plans. As soon as available and in any event no later than 30 days before the beginning of each Fiscal Year, a plan and financial
forecast for such Fiscal Year, including (i) forecasted balance sheets and forecasted statements of income and cash flows of such
Company for each such Fiscal Year and an explanation of all of the assumptions on which such forecasts are based, (ii) forecasted
statements of income and cash flows of such Company for each month of each such Fiscal Year, together with an explanation of all
of the assumptions on which such forecasts are based, and (iii) such other information and projections as the Purchaser may reasonably
request in writing;

 

(f)          Environmental
Audits and Reports of Events. As soon as practicable following receipt thereof, copies of all environmental audits and reports,
whether prepared by personnel of such Company, any of its Subsidiaries or by independent consultants, with respect to a significant
environmental matter at any Premises, or which relate to an Environmental Claim which would reasonably be expected to result in
a Material Adverse Effect. Each Company will also promptly advise the Purchaser in writing and in reasonable detail of (i) such
Company’s actual knowledge of (a) any Release of any Hazardous Substance required to be reported to any federal, state or
local governmental or regulatory agency under any applicable Environmental Laws or (b) any Environmental Claims that have a reasonable
possibility of giving rise to a Material Adverse Effect, (iii) any remedial action taken by such Company or any other Person in
response to (x) any Hazardous Substance on, under or about any Premises, the existence of which has a reasonable possibility of
resulting in an Environmental Claim having a Material Adverse Effect or (y) any Environmental Claim that is reasonably likely to
have a Material Adverse Effect, (iv) such Company’s or any of its Subsidiaries’ discovery of any occurrence or condition
on any real property adjoining or in the vicinity of any Premises that is reasonably likely to cause such Premises or any part
thereof to be subject to any restrictions on the ownership occupancy, transferability or use thereof under any Environmental Laws
which would have a Material Adverse Effect and (v) any request for information from any governmental agency that suggests such
agency is investigating whether such Company or any of its Subsidiaries may be potentially responsible for a Release of Hazardous
Substance;

 

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(g)          Monthly
Financial Statements. Within 30 days (or 60 days in the case of the twelfth month of the Fiscal Year) after the close of each
monthly accounting period in each Fiscal Year of the Companies, (i) the unaudited consolidated balance sheets of the Companies
and their consolidated Subsidiaries as of the end of such monthly period, (ii) the related unaudited consolidated statements of
income and retained earnings and consolidated statements of cash flows for such monthly period and for the elapsed portion of the
Fiscal Year ended with the last day of such monthly period, in each case setting forth comparative figures for the related periods
in the prior Fiscal Year, and (iii) statement and reconciliation of all cash of the Companies and their Subsidiaries; all of such
items (i), (ii) and (iii) of this Section shall be certified by the chief financial officer of Parent, subject to normal year-end
audit adjustments and the absence of footnotes;

 

(h)          Annual
Financial Statements. Within 120 days after the close of each Fiscal Year of the Companies, the consolidated balance sheets
of the Companies and their consolidated Subsidiaries as of the end of such Fiscal Year and the related consolidated statements
of income and retained earnings and consolidated statements of cash flows for such Fiscal Year, in each case setting forth comparative
figures for the preceding Fiscal Year and audited by independent certified public accountants of recognized national or regional
standing reasonably acceptable to the Purchaser, in each case together with a report of such accounting firm stating that in the
course of its regular audit of the financial statements of the Companies, which audit was conducted in accordance with generally
accepted auditing standards, such accounting firm obtained no knowledge of any Event of Default which has occurred and is continuing
or, if in the opinion of such accounting firm such an Event of Default has occurred and is continuing, a statement as to the nature
thereof;

 

(i)          Compliance
Certificates.

 

(i)          Concurrently
with the financial statements furnished pursuant to subsections (g) and (h) of this Section 5.1, an officer’s certificate
signed by an authorized officer of Parent which Compliance Certificate shall be substantially in the form of Exhibit 5.1(i) attached
hereto, certifying such financial statements, each Company’s and each of its Subsidiaries’ compliance with the terms
of the Transaction Documents, certifying that no Event of Default has occurred under the Transaction Documents, and setting forth
computations in reasonable detail showing whether or not as at the end of such fiscal period there existed any breach or violation
of any of the provisions of Section 5.12;

 

    	33

    	 

    

 

(ii)         With
regard to any Permitted Senior Debt, all borrowing base certificates, borrowing base reports and compliance certificates delivered
to any holders of Permitted Senior Debt.

 

(j)          Management
Letters. Promptly after such Company’s receipt thereof, a copy of any “management letter,” schedule of adjusting
journal entries, schedule of waived journal entries, governance communication letters and any internal control communication received
by such Company or any of its Subsidiaries from its certified public accountants;

 

(k)          Filings
with Governmental Agencies. Within thirty (30) days of filing thereof, copies of all tax returns and other related tax documents
filed by such Company with federal, state or local governmental agencies;

 

(l)          Aging
Reports. Furnish to the Purchaser within thirty (30) days after the end of each month, aging summary reports of all of such
Company’s accounts receivable, aged by invoice date; and

 

(m)          Other
Information: With reasonable promptness, (i) such other material information and data with respect to such Company or any of
its Subsidiaries, as from time to time may be reasonably requested in writing by the Purchaser, and (ii) a copy of all material
reports and other documents delivered from time to time to the Senior Lender.

 

The Purchaser
acknowledges that US securities laws prohibit any Person who has received from an issuer any material, non-public information from
purchasing or selling securities of such issuer or from communicating such information to any other Person under circumstances
in which it is reasonably foreseeable that such Person is likely to purchase or sell such securities. As a result of the Companies’
providing certain of the financial information required by this Section 5.1 to the Purchaser, the Purchaser will be in possession
of material, non-public information pertaining to the Companies. Accordingly, the Purchaser agrees not to (i) communicate any of
such information to any other Person under circumstances in which it is reasonably foreseeable that such Person is likely to purchase
or sell any of the Parent’s securities and (ii) purchase or sell any of the Parent’s Securities unless and until such
information has been publicly disclosed by the Parent. Notwithstanding anything in this Section 5.1 or any other provision in the
Transaction Documents to the contrary, the Companies and their Subsidiaries shall not be required to deliver to the Purchaser and/or
any of Purchaser’s Affiliates, originals or copies of any documents, instruments, notices, communications or other information
under or in connection with this Agreement or any other Transaction Document (collectively, the “Company Materials”)
as specifically requested from time to time in writing by the Purchaser and/or any of the Purchaser’s Affiliates with respect
to a specific document, instrument, notice or other written communication at the time of receipt of such request and then only
in accordance with such specific request. The Companies hereby agree that if either they, any parent company or any Subsidiary
of the Companies has publicly traded equity or debt securities in the United States, they shall (and shall cause such parent company
or Subsidiary, as the case may be, to) (i) identify in writing, and (ii) to the extent reasonably practicable, clearly and conspicuously
mark such Company Materials that contain only information that is publicly available or that is not material for purposes of United
States federal and state securities laws as “PUBLIC”. The Companies agree that by identifying such Company Materials
as “PUBLIC” or publicly filing such Company Materials with the Securities and Exchange Commission, then the Purchaser
and/or its Affiliates shall be entitled to treat such Company Materials as not containing any material, non-public information
for purposes of United States federal and state securities laws.

 

    	34

    	 

    

 

5.2         Payment
of Taxes and Claims; Tax Consolidation; Filing of Tax Returns.

 

Each Company
and its Subsidiaries will pay, (a) all taxes, assessments and other governmental and quasi-governmental charges and/or fees imposed
upon it or any of its properties or assets or in respect of any of its income, businesses or franchises before any penalty accrues
thereon, and (b) all claims (including claims for labor, services, materials and supplies) for sums that have become due and
payable and that by law have or may become a Lien upon any of its properties or assets, prior to the time when any penalty or fine
shall be incurred with respect thereto; provided, that no such charge or claim need be paid if being contested in
good faith by appropriate proceedings promptly instituted and diligently conducted, no penalty or fine is accruing thereon, and
if such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made therefor.
No Company will file or consent to the filing of any consolidated income tax return with any Person other than its wholly-owned
Subsidiaries or as otherwise required by law. Each Company and its Subsidiaries shall file, or cause to be filed, all tax returns
(federal, state, local and foreign) required to be filed.

 

5.3         Key
Person Insurance, Disability Insurance.

 

The Companies
shall obtain and deliver to the Purchaser by December 1, 2014, and shall thereafter at all times when the Obligations are outstanding
maintain and timely pay for, key-person life insurance on the life of Thomas Tolworthy (or any successors to Thomas Tolworthy as
chief executive officer and/or president of the Companies) having a death benefit in the amount equal to the then outstanding principal
amount of the Obligations, payable to the benefit of the Purchaser, with such insurance companies as shall be satisfactory to the
Purchaser, such insurance policy to provide that it cannot be cancelled or terminated without a thirty (30) days prior written
notice to the Purchaser. The Companies shall deliver to the Purchaser, in form and substance satisfactory to the Purchaser, certified
copies of such insurance policies, together with loss payable endorsements naming the Purchaser as loss payee.

 

    	35

    	 

    

 

In addition,
the Companies shall deliver to Purchaser by December 1, 2014, and shall thereafter at all times when the Obligations are outstanding
maintain and timely pay for a disability policy in favor of Purchaser relating to Thomas Tolworthy (or any successors to Thomas
Tolworthy as chief executive officer and/or president of the Companies) in the amount of the then outstanding principal amount
of the Note and in form and content reasonably acceptable to Purchaser. The Companies shall deliver to the Purchaser, in form and
substance satisfactory to the Purchaser, certified copies of such insurance policies.

 

5.4         Further
Assurances.

 

At any time
or from time to time upon the request of the Purchaser, each Company will, at its expense, promptly and duly execute, acknowledge
and deliver such further agreements, documents and instruments and do or cause to be done such other acts and things as (i) the
Purchaser may reasonably request in order to effect fully the purposes of the Transaction Documents and to provide for payment
of the Obligations in accordance with the terms of this Agreement, the Notes and the other Transaction Documents and (ii) as may
be necessary or proper to evidence, perfect, maintain and enforce the security interests and the priority thereof in the Collateral.

 

5.5         Reservation
of Equity Interests.

 

The Parent
shall have reserved, and shall at all times keep reserved, out of its authorized Equity Interests, a number of unissued Equity
Interests sufficient to allow the Parent to satisfy the terms of the Warrants at all times as if the Warrants were exercised, free
of any preemptive rights, Liens, claims or encumbrances of any kind or nature whatsoever.

 

5.6         No
Impairment.

 

No Company
nor any of its Subsidiaries shall, by amendment of its Articles of Incorporation, bylaws, any agreements among or between any of
the holders of any Equity Interests of such Company or any of its Subsidiaries or through any consolidation, merger, reorganization,
recapitalization, business combination or other similar arrangement, joint venture, transfer of assets, dissolution, issue or sale
of securities or any other action of any kind, avoid or seek to avoid the observance or performance of any of the terms of this
Agreement or the Transaction Documents.

 

    	36

    	 

    

 

5.7         Board
Seat and Rights to Meet with Directors.

 

(a)          From
the Closing until the Notes and other Obligations are repaid in full, the Parent shall maintain a board of directors which shall
schedule meetings not less frequently than twice per year commencing with the Fiscal Year beginning January 1, 2015. Until the
earlier of (i) the date on which less than $5,000,000 of principal remains outstanding under the Notes or (ii) the date
on which the Parent has a market cap of $400,000,000 or more and EBITDA for the four fiscal quarters then ending of greater than
or equal to $20,000,000, the Purchaser shall be entitled to appoint one member to the board of directors of Parent (which appointee
may be an employee, officer or director of Purchaser) (the "Penta Director"). At all times thereafter, the Purchaser
will be notified of time and place of meetings of the board of managers not less than seven (7) days in advance and may have a
representative attend all board meetings. The Companies shall pay the reasonable costs and expenses incurred by such representative
in traveling to and attending such meetings.

 

(b)          While
the Purchaser shall be entitled to appoint a Penta Director, the Penta Director shall timely (i) comply with all Securities and
Exchange Commission reporting requirements applicable to a director, including, but not limited, to filing Forms 3, 4, and 5, as
applicable; (ii) promptly furnish the Companies with any required information concerning the Penta Director for 8-K filings, proxy
statements and any other Securities and Exchange Commission filings; (iii) complete standard director and officer questionnaires
from time to time as requested by the Companies to the extent such questionnaires are usual and customary and are executed by each
other director of the Parent and (iv) deliver a resignation in blank to be held in escrow by the Parent.

 

(c) In the
event that either event in Section 5.7(a)(i) or (a)(ii) occurs, the Parent may give notice of its request for the Penta Director's
resignation delivered under Section 5.7(b)(iv), and the Penta Director will be deemed to have resigned effective as of the date
of such notice.

 

5.8         Good
Standing; Regular Course of Business.

 

Each Company
agrees to, and shall cause each of its Subsidiaries to, maintain its existence and its good standing in its jurisdiction of organization
and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a Material
Adverse Effect on the financial condition, operations or business of such Company or any of its Subsidiaries. Each Company and
its Subsidiaries agrees that on and after the Effective Date it will carry on its business diligently and in the ordinary course
and substantially in the same manner as heretofore carried on and will use commercially reasonable efforts to preserve its present
business organization intact.

 

5.9         Maintenance
of Property Insurance.

 

The Companies
have delivered to the Purchaser a certificate from their insurance broker which sets forth a true and complete listing of all insurance
maintained by the Companies and their Subsidiaries as of Closing, with the amounts insured at Closing set forth therein. Such insurance
shall be in such amounts and against such risks as is customarily maintained in similar businesses operating in the same vicinity
with Purchaser named as an additional loss payee.

 

    	37

    	 

    

 

Each Company
will, and will cause each of its Subsidiaries to:

 

(i)          keep
all property useful and necessary in its business in good working order and condition, ordinary wear and tear excepted,

 

(ii)         acquire
and maintain at its sole cost and expense throughout the term of this Agreement commercial general liability insurance on all its
property underwritten by an insurance company with a Best’s rating of at least A-/XII and licensed to do business in the
applicable state in at least such amounts with such deductibles and against at least such risks as are consistent and in accordance
with industry practice, including (without limitation) personal injury and bodily injury, product liability, products/completed
operations, and business interruption insurance, and

 

(iii)        maintain
a bond or insurance in such amounts as is customary in the case of companies engaged in businesses similar to such Company insuring
against larceny, embezzlement or other criminal misappropriation of insured’s officers and employees who may either singly
or jointly with others at any time have access to the assets or funds of such Company or any of its Subsidiaries either directly
or through authority to draw upon such funds or to direct generally the disposition of such assets.

 

Each Company
shall cooperate with the Purchaser in obtaining for the Purchaser the benefits of any insurance proceeds lawfully or equitably
payable in connection with such Company, its Subsidiaries or any of their assets subject to the provisions of the Permitted Senior
Debt; provided, so long as no Event of Default exists and subject to the provisions of the Permitted Senior Debt, such Company
shall have the right to use such proceeds to repair or replace the assets damaged by such casualty. Each Company shall not permit
any such material item of Collateral to become a fixture to real estate or an accession to other personal property, without the
prior written consent of the Purchaser. Each Company shall not permit any such material item of Collateral to be operated or maintained
in violation of any applicable law, statute, rule or regulation. With respect to items of leased equipment (to the extent the Purchaser
has any security interest in any residual Company’s interest in such equipment under the lease), each Company shall keep,
maintain, repair, replace and operate such leased equipment in accordance with the terms of the applicable lease.

 

Prior to
the Effective Date, certificates of insurance issued by the Companies’ insurance company evidencing the insurance required
as set forth above shall have been provided to the Purchaser by the Companies. Each certificate provided at any time in accordance
with this section shall set forth, minimally, that the Purchaser is an additional insured party, the amount of insurance, the additional
insured endorsement (whether as part of the certificate or as a separate document), the policy number, the date or expiration,
an endorsement that the Purchaser shall receive thirty (30) days (or 15 days in the case of non-payment of premium) written notice
prior to termination, reduction or modification of the coverage. The certificates shall bear an inked or stamped signature. Certificates
shall be furnished to the Purchaser upon renewal of insurance or upon request by the Purchaser. In the event a Company does not
at any time provide its certificate of insurance as required herein, the Purchaser shall have the right to procure such coverage
and charge the expense incurred to such Company. In the event a Company’s insurance is canceled and replacement insurance
is not obtained prior to the effective date of such cancellation, the Purchaser shall have the right to procure such coverage and
charge the expenses incurred to such Company. Upon request, each Company shall furnish a copy of the insurance policy to the Purchaser.

 

    	38

    	 

    

 

5.10       Compliance
with Statutes, etc.

 

Each Company
will, and will cause each of its Subsidiaries to, comply in all material respects with all applicable statutes, regulations, rules
and orders of, and all applicable restrictions imposed by, all governmental and quasi-governmental bodies, domestic or foreign,
in respect of the conduct of its business and operations and the ownership of its property (including, without limitation, applicable
statutes, regulations, orders and restrictions relating to (i) environmental standards and controls and (ii) the Anti-Money Laundering
Laws, the OFAC Laws and Regulations). Notwithstanding the foregoing, each Company will, and will cause each of its Subsidiaries
to endeavor to substantially comply with applicable laws, regulations, and regulatory oversight from the Food and Drug Administration
(“FDA”), The Federal Trade Commission (“FTC”) and the United States Department of Agriculture (“USDA”).
 

 

5.11       Violations.

 

Promptly
notify Purchaser in writing of any violation of any law, statute, regulation or ordinance, as to which such Company or any of its
Subsidiaries have been notified or otherwise have knowledge of, of any Governmental Authority, or of any agency thereof, applicable
to such Company or any of its Subsidiaries which could reasonably be expected to have a Material Adverse Effect on such Company
or any of its Subsidiaries.

 

5.12       Financial
Covenants.

 

(a)          Minimum
Adjusted EBITDA. Commencing with the fiscal quarter ending March 31, 2015 and until such time as all Obligations are paid,
satisfied and discharged in full, the Companies shall not, as of the end of any measurement period set forth below, permit the
Adjusted EBITDA for such measurement period to be less than the amount set forth in the table below opposite such measurement period;
provided that (i) commencing with the first fiscal quarter ending 6 months after the earlier of the consummation of the Target
1 Acquisition or the Target 2 Acquisition, compliance shall no longer be required with respect to the financial covenant in this
clause (a) and (ii) if neither the Target 1 Acquisition nor the Target 2 Acquisition have been consummated on or prior to June
30, 2015, the Purchaser shall have the right to require the Companies to continue to comply with the financial covenant in this
clause (a) for such future periods and at such covenant levels as the Purchaser may reasonably require.

 

    	39

    	 

    

 

	Measurement Period	 	Minimum Adjusted EBITDA	 
	January 1, 2015 to March 31, 2015	 	$	-2,500,000	
	January 1, 2015 to June 30, 2015	 	$	-1,750,000	 
	July 1, 2015 to September 30, 2015	 	$	2,000,000	 
	July 1, 2015 to December 31, 2015	 	$	4,500,000	 

  

(b)          Fixed
Charge Coverage Ratio. Commencing with the first fiscal quarter ending 6 months after earlier of the consummation of the Target
1 Acquisition or Target 2 Acquisition and until such time as all Obligations are paid, satisfied and discharged in full, the Companies
shall not, as of the end of any fiscal quarter, permit the Fixed Charge Coverage Ratio for the period of four consecutive fiscal
quarters most recently ended on or prior to such date to be less than 1.15x. Notwithstanding the foregoing, it is hereby agreed
that (i) the applicable measurement period for the fiscal quarter ending September 30, 2015 shall be from July 1, 2015 to September
30, 2015, (ii) the applicable measurement period for the fiscal quarter ending December 31, 2015 shall be from July 1, 2015 to
December 31, 2015 and (iii) the applicable measurement period for the fiscal quarter ending March 31, 2016 shall be from July 1,
2015 to March 31, 2016.

 

(c)          Total
Funded Debt to Adjusted EBITDA Ratio. Commencing with the fiscal quarter ending March 31, 2016 and until such time as all Obligations
are paid, satisfied and discharged in full, the Companies shall not, as of the end of any fiscal quarter, permit the applicable
ratio set forth in the table below to exceed the amount set forth therein:

 

	If as of the end of any fiscal quarter:	 	Both the Target 1 Acquisition and the Target 2 Acquisition have been consummated	 	(x) the Target 1 Acquisition and the Target 2 Acquisition have not been consummated or (y) only Target 2 Acquisition has been consummated
	 	 	 	 	 
	Applicable ratio:	 	(A) Total Funded Debt (calculated without giving effect to any Indebtedness that is subordinate to the Obligations) to (B) Adjusted EBITDA for the period of four consecutive fiscal quarters most recently ended on or prior to such date to exceed 4.0x	 	(A) Total Funded Debt (calculated without giving effect to the Little Harbor Debt) to (B) Adjusted EBITDA for the period of four consecutive fiscal quarters most recently ended on or prior to such date to exceed 4.0x

 

    	40

    	 

    

 

For the purposes
of this clause (c), Adjusted EBITDA (1) for the measurement period ending on March 31, 2016, shall equal the Adjusted EBITDA for
the fiscal quarter ending March 31, 2016 multiplied by 4, (2) for the measurement period ending on June 30, 2016, shall equal the
sum of Adjusted EBITDA for the fiscal quarters ending March 31, 2016 and June 30, 2016, multiplied by 2 and (3) for the measurement
period ending on September 30, 2016, shall equal the sum of the Adjusted EBITDA for the fiscal quarters ending March 31, 2016,
June 30, 2016 and September 30, 2016, multiplied by 4 and divided by 3.

 

5.13       Performance
of Transaction Documents.

 

Each Company
shall observe, perform and satisfy all the terms, provisions, covenants and conditions required to be observed, performed or satisfied
by it, and shall pay when due all reasonable costs, fees and expenses required to be paid by it under this Agreement, the Note
and all other Transaction Documents, subject to any applicable cure periods provided therein.

 

5.14       Maintenance
of Books and Records; Inspection Rights.

 

Each Company
and its Subsidiaries shall maintain, or cause to be maintained, at the expense of such Company, in accordance with GAAP, a comprehensive
system of internal controls over financial reporting, office records, books and accounts (which books, records and accounts shall
be and remain the property of the Company and its Subsidiaries) in which shall be entered fully and accurately each and every financial
transaction with respect to such Company and its Subsidiaries and their operations and business. Each Company shall maintain the
books, records and accounts in a safe manner and separate from any records not related to such Company, its operations and business.
Upon three (3) days written notice, the Purchaser shall have the right to inspect and copy during normal business hours any and
all of each Company’s books and records. The right to examination provided by this Section 5.14 shall include the right
to make copies of the books of accounts and other books, documents and records of each Company for any purpose, including, without
limitation, conducting an evaluation of each Company’s internal controls over financial reporting.

 

5.15       Audit.

 

The Purchaser
shall have the right upon reasonable advance written notice during normal business hours to audit the financial information provided
by each Company pursuant to the terms of this Agreement in accordance with the then customary audit policies and procedures of
the Purchaser. Unless an Event of Default then exists, the Purchaser shall not perform more than one (1) such audit per calendar
year. The Purchaser shall pay for the costs of its auditors, provided that if (a) such audit shall have been commenced
when an Event of Default exists or (b) such audit reveals a material discrepancy from the information previously provided to the
Purchaser, the Companies shall pay the cost and expenses of such audit not to exceed $50,000.00 in the aggregate.

 

    	41

    	 

    

 

5.16      Keyman
Litigation Proceeds.

 

In the event
that any Company recovers any proceeds from any claims or actions initiated by such Company against Thomas Tolworthy asserting
breach of the duty of loyalty, breach of the duty of care, or embezzlement, such Company shall pay over the net proceeds to the
Purchaser for application against the Obligations. For purposes of this Section 5.16, “net proceeds” shall include
any payments received in settlement of such claims or actions, but shall be net of any costs incurred in asserting and/or prosecuting
the claims or actions, including attorney fees. The obligations of this Section 5.16, shall in no way obligate any Company to assert
or commence any action against Thomas Tolworthy and shall not apply to any derivative actions.

 

5.17      Post-Closing
Obligations.

 

Each Company
agrees to deliver or to cause to be delivered to the Purchaser, in form and substance reasonably satisfactory to the Purchaser,
the items described on Schedule 5.17 on or before the dates specified with respect to such items, or such later dates as
may be agreed to by the Purchaser, in its sole discretion.

 

Section
6.            Negative Covenants

 

Subject to Section 6.15
below, each Company and its Subsidiaries shall not, until satisfaction in full of the Obligations and termination of this Agreement
or unless a prior written consent of the Purchaser is obtained (which consent may be withheld by the Purchaser in its sole and
absolute discretion):

 

6.1         Restrictions
on Fundamental Changes; Mergers; Consolidations; Asset Sales and Acquisitions; New Subsidiaries.

 

(a)          Other
than Permitted Acquisitions, (i) enter into any merger, consolidation, recapitalization, joint venture, business combination or
other reorganization or similar transaction with or into any other Person, (ii) file a bankruptcy or insolvency petition or otherwise
institute insolvency proceedings, (iii) file or solicit the filing of an involuntary bankruptcy petition against any Company, any
of its Subsidiaries or the Guarantor, (iv) liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution), (v)
acquire all or a material portion of the assets or Equity Interests of any Person, or (vi) permit any other Person to consolidate
or combine with or merge with it.

 

(b)          Other
than Permitted Dispositions, sell, convey, lease, sublease, transfer or otherwise dispose of, in one transaction or a series of
transactions, all or any part of its business, property or fixed assets, whether now owned or hereafter acquired.

 

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(c)          Create
or acquire any Subsidiaries other than pursuant to the Target 1 Acquisition and the Target 2 Acquisition or any other Permitted
Acquisition.

 

6.2         Creation
of Liens.

 

Create or
suffer to exist any Lien or transfer upon or against any of its property or assets now owned or hereafter acquired, except Permitted
Encumbrances.

 

6.3         Investments.

 

Without the
Purchaser’s prior written consent, purchase or acquire any obligations or Equity Interests of, or any other interest in,
any Person, other than those Equity Interests and investments listed on Schedule 6.3 or other than pursuant to any Permitted Acquisition.

 

6.4         Loans.

 

Make advances,
loans or extensions of credit to any Person, except for (i) advances to employees of the Company for travel or other reasonable
expenses in the Ordinary Course of Business in an aggregate principal amount at any time outstanding not to exceed $50,000, (ii)
investments in customers acquired in connection with accounts in the ordinary course of business (iii) prepaid expenses in the
ordinary course of business, (iv) advances made in connection with purchases of goods or services in the ordinary course of business,
(v) advances, loans or extensions of credit from one Company to another; or (vi) loans or extensions of credit to customers, vendors
or other strategic business partners in an aggregate principal amount at any time outstanding not to exceed $100,000.        

 

6.5         Capital
Expenditures.

 

Contract
for, purchase or make any Capital Expenditures or commitment for Capital Expenditures in the aggregate in any fiscal year in excess
of $2,500,000.

 

6.6         Dividends/Junior
Payments.

 

Each Company
may declare, pay or make any dividend or distribution on or with respect to any of the Equity Interests of such Company, including
Tax Distributions, or apply any of its funds, property or assets to the purchase, redemption or other retirement of any Equity
Interests (each of the foregoing, a "Junior Payment") at any time that no more than $5,000,000 of principal remains outstanding
under the Notes so long as, (i) immediately after making any such dividend, distribution or application, the Companies shall be
in pro forma compliance with all of the financial covenants set forth in Section 5.12 and (ii) no Event of Default shall exist.
Notwithstanding the foregoing, each Company may pay Tax Distributions without prior approval from Purchaser provided that (a) such
Company has retained sufficient cash to fund adequate operating reserves; and (b) such Company has given Purchaser not less than
ten (10) days prior notice of intended distributions; and (c) no Event of Default exists and such payment shall not cause such
Company to be in default of its financial covenants and such Company has provided a compliance certificate to so demonstrate. Any
distribution not referenced herein would be subject to Purchaser’s prior written consent.

 

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6.7         Indebtedness.

 

Create, incur,
assume or suffer to exist any Indebtedness (exclusive of trade debt) except in respect of (a) the Indebtedness to Purchaser, (b)
Permitted Senior Debt, (c) the Essex Debt, (d) the Little Harbor Debt, (e) Indebtedness, incurred at the time of, or within 20
days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof, (f)
the Utah Lease, and (g) Refinancing Indebtedness with respect to any of the foregoing; provided that any Refinancing Indebtedness
that (i) is a renewal or extension of Permitted Senior Debt is renewed or extended in accordance with Section 15 of the Subordination
Agreement or (ii) is a refinancing of Permitted Senior Debt is on terms reasonably satisfactory to the Purchaser.

 

6.8         Nature
of Business; Name Change.

 

(i) Materially
change the nature of the business in which it is presently engaged, (ii) except as specifically permitted in this Agreement, purchase
or invest, directly or indirectly, in any material assets or property not useful in, necessary for or to be used in its business
as presently conducted or reasonably related to the conduct of such business activities, or (iii) change the name or jurisdiction
of incorporation or organization of any Company or any of its Subsidiaries.

 

6.9         Transactions
with Affiliates.

 

Directly
or indirectly, purchase, acquire or lease any property from, or sell, transfer or lease any property to, or make any type of loan
or credit extension to, or enter into any agreement or arrangement (oral or written) of any type or otherwise deal with, any Affiliate,
except (i) transactions disclosed in writing to the Purchaser or (ii) transactions on an arm’s length basis on terms no less
favorable than terms which would have been obtainable from a Person other than an Affiliate or (iii) so long as it has been approved
by such Company’s Board of Directors, the payment of reasonable compensation, severance, or employee benefit arrangements
to employees, officers, and directors of such Company.

 

6.10       Fiscal
Year.

 

Change its
Fiscal Year.

 

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6.11      Entering
Into or Modification of Certain Agreements.

 

The Companies
and their Subsidiaries shall not amend, restate, supplement or otherwise modify (or permit or consent to any amendment, restatement,
supplement or modification of) the terms of (i) its articles or certificate of incorporation, bylaws, any agreement between or
among any of the holders of any Company’s or any of its Subsidiaries’ Equity Interests, any other organizational document,
in each case which would be materially adverse to the Purchaser and (ii) any of the Transaction Documents, the documents and/or
instruments evidencing the Permitted Senior Debt (unless permitted under the Subordination Agreement), the documents and/or instruments
evidencing the Little Harbor Debt (unless permitted under the Little Harbor Subordination Agreement) or any of the leases for the
Premises, in each case which would result in a Material Adverse Effect.

 

6.12      Inconsistent
Agreements.

 

Each Company
and its Subsidiaries shall not enter into an agreement or arrangement which is or will be inconsistent with the obligations of
such Company and its Subsidiaries under this Agreement, the Securities or any other Transaction Document, to the extent that it
adversely affects, in any material manner, the rights of the Purchaser.

 

6.13       Reserved.

 

6.14       Stay,
Extension and Usury Laws.

 

Each Company
covenants and agrees (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit of or advantage of, and will use commercially reasonable efforts to resist any attempts to
claim or take the benefit of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which would
affect the covenants or the performance of its obligations or agreements under this Agreement or the Notes, and each Company (to
the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will
not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Purchaser, but will suffer
and permit the execution of every such power as though no such law has been enacted.

 

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6.15      Purchaser’s
Consent.

 

In the event
any Company desires to engage in any act, event or transaction requiring the consent of the Purchaser, such Company shall notify
the Purchaser in writing of all information available to such Company or its Affiliates relating to such act, event or transaction,
in sufficient detail to permit the Purchaser to evaluate whether to provide its consent. The Purchaser shall have twenty (20) Business
Days from receipt of the written notice from such Company to determine whether to consent to such act, event or transaction. If
the Purchaser fails to notify such Company in writing during the twenty (20) Business Day period that it is withholding its consent,
then consent shall be deemed given by the Purchaser, and such Company shall be free to engage in such act, event or transaction
without requiring any further action from the Purchaser. If the Purchaser provides written notice to such Company that it is withholding
its consent to such act, event or transaction, then the representatives of the Purchaser and such Company shall meet and confer
to seek to reach an amicable resolution to the matter. If, after twenty (20) Business Days following the receipt of the written
notice from the Purchaser that it has not consented to such act, event or transaction, such Company and the Purchaser are unable
to reach an amicable resolution, then such Company shall have the right to proceed with such act, event or transaction but only
so long as, prior to consummating such act, event or transaction, all Obligations are paid, satisfied and discharged in full.

 

6.16       Disposition
of Assets.

 

Other than
Permitted Dispositions, allow the sale, conveyance, lease, sublease, transfer or other disposition of, in one transaction or a
series of transactions, all or substantially all of any Company’s or any of its Subsidiaries’ business, property or
assets, whether now owned or hereafter acquired or merger or consolidation of such Company or any of its Subsidiaries not consented
to by Purchaser.

 

Section
7.            Conditions Precedent

 

7.1         Transaction
Documents.

 

The Purchaser
shall have received from the Companies executed originals of this Agreement, the Initial Note (duly executed in accordance with
Section 2.1 and drawn to the order of the Purchaser), the Initial Warrant and the other Transaction Documents and documents
and instruments to be delivered in connection therewith.

 

7.2         Filings,
Registrations and Recordings.

 

Each document
(including any UCC financing statement) required by this Agreement, or any other Transaction Document or under applicable law or
reasonably requested by the Purchaser to be filed, registered or recorded in order to create, in favor of the Purchaser, a perfected
security interest in or Lien upon the Collateral shall have been properly filed, registered or recorded in each jurisdiction in
which the filing, registration or recordation thereof is so required or requested, and the Purchaser shall have received an acknowledgment
copy, or other evidence satisfactory to it, of each such filing, registration or recordation and satisfactory evidence of the payment
of any necessary fee, tax or expense relating thereto.

 

7.3         Corporate
Proceedings of Companies.

 

The Purchaser
shall have received a copy of the resolutions in form and substance reasonably satisfactory to the Purchaser, of the managers or
board of directors, as applicable, of each Company authorizing (i) the execution, delivery and performance of this Agreement,
the Notes, any related agreements, and each of the other Transaction Documents and (ii) the granting by each Company of the security
interest in and Liens upon the Collateral, in each case certified by the officer of each Company as of the Effective Date; and,
such certificate shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded as of
the date of such certificate.

 

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7.4         Incumbency
Certificates of Companies.

 

The Purchaser
shall have received a certificate of the officer of each Company, dated the Effective Date, as to the incumbency and signature
of the officers of such Company executing this Agreement, other Transaction Documents, any certificate or other documents to be
delivered by it pursuant hereto, together with evidence of the incumbency of such officer.

 

7.5         Organization
Documents.

 

The Purchaser
shall have received a copy of all organization documents of each Company, and all amendments thereto, certified by the applicable
Secretary of State of the jurisdiction of organization and the officer of such Company and the written certification of the officer
of such Company that no amendment or modification to the organization documents of such Company has become effective since the
date on which the organization documents of such Company were last delivered to the Purchaser, and copies of all agreements of
the holders of Equity Interests in such Company certified as accurate and complete by the officer of such Company.

 

7.6         Good
Standing Certificates.

 

The Purchaser
shall have received good standing certificates for each Company dated not more than thirty (30) days prior to the Effective Date,
issued by the applicable Secretary of State of the jurisdiction of organization and each jurisdiction where the conduct of such
Company’s business activities or the ownership of its properties necessitates qualification.

 

7.7         Legal
Opinion.

 

The Purchaser
shall have received favorable written legal opinions of each Company’s counsel in form and substance satisfactory to the
Purchaser, and each Company hereby authorizes and directs such counsel to deliver such opinions to the Purchaser.

 

7.8         No
Litigation.

 

No litigation,
investigation or proceeding before or by any arbitrator or Governmental Authority shall be continuing or threatened against any
Company, any of the Companies’ Subsidiaries or against any officers or directors of any Company (A) in connection with any
of the Transaction Documents or any of the transactions contemplated thereby and which, in the Purchaser’s sole and absolute
discretion, is deemed material or (B) which could, in the Purchaser’s sole and absolute discretion, have a Material Adverse
Effect; and no injunction, writ, restraining order or other order of any nature materially adverse to any Company or the conduct
of its business or inconsistent with the due consummation of the transactions contemplated hereby shall have been issued by any
Governmental Authority.

 

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7.9         Fees.

 

The Purchaser
shall have received all fees and expenses payable to it on or prior to the Effective Date pursuant to Section 2 hereof.

 

7.10       Financial
Statements.

 

The Purchaser
shall have received the following financial statements and information (the “Financial Statements”): (i) Twinlab
Holdings’ and its Subsidiaries’ consolidated income statement for the Fiscal Year ending December 31, 2013, which income
statement will be satisfactory to the Purchaser, and (ii) a copy of the unaudited consolidated balance sheet of TCC and its Subsidiaries
as of August 31, 2014 and the related consolidated statements of income and retained earnings and the related statements of cash
flows of the Companies and its Subsidiaries for the period from January 1, 2014 through August 31, 2014. Since August 31, 2014,
no Material Adverse Effect shall have occurred with respect to the Companies in the sole and absolute discretion of the Purchaser.

 

7.11      Insurance.

 

The Purchaser
shall have received in form and substance satisfactory to the Purchaser, (i) certified copies of the Companies’ casualty
insurance policies, together with loss payable endorsements naming the Purchaser as loss payee, and (ii) subject to Section 5.17,
certified copies of the Companies’ liability insurance policies, together with endorsements naming the Purchaser as a co
insured.

 

7.12       Payment
Instructions.

 

The Purchaser
shall have received written instructions from the Companies directing the application of proceeds of the issuance of the Initial
Note on the Effective Date.

 

7.13       Consents.

 

The Purchaser
shall have received any and all consents necessary to permit the effectuation of the transactions contemplated by any of the Transaction
Documents. The Purchaser shall have received such third party consents and waivers of such third parties as might assert claims
with respect to the Collateral, as the Purchaser and its counsel shall deem necessary.

 

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7.14      Existing
Indebtedness.

 

The Purchaser
shall have received, in form and substance reasonably satisfactory to it, a schedule detailing the outstanding Permitted Senior
Debt, the Essex Debt and the Little Harbor Debt of the Company, with copies of any documentation evidencing such Permitted Senior
Debt, Essex Debt and Little Harbor Debt.

 

7.15      Solvency
Certificate.

 

The Purchaser
shall have received an officer’s Certificate of each Company, dated as of the Effective Date, certifying that each Company
is Solvent after giving effect to the consummation of the transactions contemplated hereby, such certificate to be in form and
substance to the reasonable satisfaction of the Purchaser.

 

7.16       Officer’s
Certificate.

 

The Company
shall have delivered to the Purchaser a Certificate of each Company, substantially in the form of Exhibit 7.16, to the effect
that (i) the representations and warranties in Section 4 of this Agreement are true, correct and complete on and as of the
Effective Date, (ii) none of the Transaction Documents contain any untrue statement of a material fact or omit a material
fact necessary to make the statements therein not misleading, (iii) each Company shall have performed all agreements and satisfied
all conditions which this Agreement and the other Transaction Documents provide shall be performed or satisfied by it on or before
the Effective Date except as otherwise disclosed to and agreed to in writing by the Company and the Purchaser, and (iv) no Default
or Event of Default shall have occurred and be continuing.

 

7.17      No
Prohibition.

 

On the Effective
Date, the Purchaser’s purchase of the Securities shall not be prohibited by any applicable law or governmental regulation
and shall not subject it to any penalty or, in the Purchaser’s reasonable judgment, other onerous conditions under or pursuant
to any applicable law or governmental regulation. The offering, issuance, and sale of the Securities shall have complied with all
applicable requirements of federal and state securities laws, and the Purchaser shall have received evidence of such compliance
in form and substance satisfactory to the Purchaser.

 

Section
8.            Redemption

 

8.1         The
Companies’ Right to Redeem.

 

(a)          The
Companies may prepay the outstanding amounts of the Notes in whole or in part at any time subject to the Prepayment Penalty.

 

(b)          The
Companies may redeem the Warrants in full but not in part at its election pursuant to the redemption provision in the Warrants.

 

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Section
9.            General Indemnity

 

9.1         Indemnity
Obligations.

 

(a)          Except
as provided in subsection (b) of this Section 9.1, each Company shall, without limitation as to time, at its sole cost and expense,
protect, defend, indemnify, release and hold harmless the Purchaser and each partner, member, manager, director, officer, shareholder,
beneficial owner, any partner, member, manager, director, officer, shareholder, trustee, beneficial owner, partner, member of any
shareholder, beneficial owner, partner or member of the Purchaser, and all employees, agents, servants, representatives, contractors,
subcontractors, affiliates, subsidiaries, participants, successors and assigns of any of the foregoing (each, an “Indemnified
Party” and, collectively, the “Indemnified Parties”) for, from and against any and all claims, suits,
liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations, debts, damages, losses, costs,
expenses, diminutions in value, fines, penalties, charges, fees, expenses, judgments, awards, amounts paid in settlement and damages
of whatever kind or nature (including, without limitation, reasonable attorneys’ fees, court costs and other costs of defense)
(collectively, “Losses”) incurred by it or them and arising out of or in connection with this Agreement, the
Securities, or any other Transaction Document, or the transactions contemplated hereby or thereby, or caused by, incurred or resulting
from any Company’s or any of its Subsidiaries’ operations of or relating in any manner to the business of any Company
or any of its Subsidiaries, the Collateral or the Premises, or from any breach of, default under, or failure to perform, any representation,
warranty, covenant, agreement or any other term or provision of this Agreement by any Company or any of its Subsidiaries, the holders
of any Company’s or any of its Subsidiaries’ Equity Interests, the Company’s or any of its Subsidiaries’
directors, officers, employees, agents or other persons. Without limiting the generality of the foregoing, this indemnity shall
extend to any Losses arising from (a) any accident, injury to or death of any person or loss of or damage to property occurring
in connection with any Company or any of its Subsidiaries, their business or operations, the Collateral or the Premises or any
portion thereof, (b) any use, non-use or condition in, on or about, or possession, alteration, repair, operation, maintenance or
management of, the Collateral or the Premises or any portion thereof or the sidewalks, curbs, parking areas, streets or ways adjoining
the Premises, (c) any representation or warranty made herein by any Company or any of its Subsidiaries in any certificate delivered
in connection herewith or in any other agreement to which any Company is a party or pursuant thereto being false or misleading
in any material respect as of the date such representation or warranty was made, (d) performance of any labor or services
or the furnishing of any materials or other property in respect to any Company or any of its Subsidiaries, their business or operations,
the Collateral or the Premises or any portion thereof, (e) any taxes, assessments or other charges which any Company or any of
its Subsidiaries is required to pay under Section 5.2, (f) any lien, encumbrance or claim arising on or against the Collateral
or the Premises or any portion thereof under any applicable regulation or otherwise which any Company or any of its Subsidiaries
is obligated hereunder to remove and discharge, or the failure to comply with any applicable regulation, (g) the claims of any
licensees, tenants or other occupants of all or any portion of the Collateral or the Premises or any Person acting through or under
any Company or any of its Subsidiaries or otherwise acting under or as a consequence of this Agreement or any sublease, (h) any
act or omission of any Company or any of its Subsidiaries or their respective agents, contractors, licensees, subtenants or invitees,
(i) any disclosures of information, financial or otherwise, obtained from any credit reporting agency with respect to any Company,
any Guarantor, any Affiliate of the Company, or any operator or lessee of the Premises; (j) any Environmental Laws or similar laws
by reason of any Company’s or any other Person’s failure to comply with laws applicable to solid or hazardous waste
materials, including Hazardous Substances and Hazardous Waste, or other Toxic Substances, (k) any taxes (excluding taxes imposed
upon or measured solely by the net income of the Purchaser, but including any intangibles taxes, stamp tax, recording tax or franchise
tax) which shall be payable by the Purchaser or any Company on account of the execution or delivery of this Agreement, or the execution,
delivery, issuance or recording of the Securities or any of the other Transaction Documents, or the creation or repayment of any
of the Obligations hereunder, by reason of any applicable law now or hereafter in effect.

 

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(b)          Notwithstanding
anything to the contrary in Section 9.1(a) above, no Company shall be obligated to protect, defend, indemnify, release or hold
harmless any Indemnified Party from any Losses arising from an Indemnified Party’s gross negligence or willful misconduct
as finally determined by a court of competent jurisdiction.

 

9.2         Settlement;
Survival.

 

Each Company
agrees that it will not, without the Indemnified Party’s prior written consent (such consent not to be unreasonably withheld)
settle or compromise any pending or threatened claim, action or suit in respect of which indemnification or contribution may be
sought hereunder unless the foregoing contains an unconditional release of the Indemnified Parties from all liability and obligation
arising therefrom. It is expressly understood and agreed that each Company’s obligations under this Section shall survive
the expiration or earlier termination of this Agreement for any reason.

 

Section
10.          Actions by Purchaser; Lost Security

 

10.1       Actions
by Purchaser.

 

The Company
agrees that the Purchaser may, at its option, and without any obligation to do so, upon a prior written notice to the Companies,
pay, perform, and discharge any and all amounts, costs, expenses and liabilities that are the responsibility of any Company under
the Transaction Documents if such Company fails to timely pay, perform or discharge the same, and all amounts expended by the Purchaser
in so doing or in respect of or in connection with the Collateral shall become part of the obligations secured by the Transaction
Documents and shall be immediately due and payable by the Companies to the Purchaser upon demand therefor and shall bear interest
at the Default Rate (as defined in the Notes). Each Company agrees that the Transaction Documents shall remain in full effect,
without waiver or surrender of any of the Purchaser’s rights thereunder, notwithstanding the occurrence of any one or more
of the following: (i) extension of the time of payment of the whole or any part of the Notes; (ii) any change in the terms
and conditions of the Notes; (iii) substitution of any other evidence of indebtedness for the Notes; (iv) acceptance by the Purchaser
of any collateral or security of any kind for the payment of the Notes; (v) surrender, release, exchange or alteration of any Collateral,
collateral or other security, either in whole or in part; or (vi) release, settlement, discharge, compromise, change or amendment,
in whole or in part, of any claim of the Purchaser against any Company or of any claim against any Guarantor or other party secondarily
or additionally liable for the payment of the Notes, other than payment in full of the Obligations.

 

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10.2      Lost
Security.

 

Each Company
shall, if a Security is mutilated, destroyed, lost or stolen (a “Lost Security”), promptly deliver to the Purchaser,
upon receipt from the Purchaser of an affidavit stipulating that the Lost Security has been mutilated, destroyed, lost or stolen
and customary and reasonable indemnification with respect thereto, in substitution therefor, a new Security containing the same
terms and conditions as the Lost Security with a notation thereon of the unpaid principal and accrued and unpaid interest.

 

Section
11.          Events of Default and Remedies

 

11.1       Events
of Default.

 

Each of the
following conditions, occurrences or events described in this Section 11.1 shall constitute an “Event of Default”:

 

(a)          Failure
to Make Payments When Due.

 

(i)          Any
Company shall fail to pay any principal or premium, if any, of the Notes within five (5) Business Days of when due under this Agreement
or any other Transaction Documents, whether at stated maturity, by acceleration, by notice of optional redemption or prepayment,
by mandatory redemption or prepayment or otherwise; or

 

(ii)         Any
Company shall fail to pay any interest on the Notes or any other amount (other than an amount referred to in the preceding clause (a))
within five (5) Business Days of when due under this Agreement or any other Transaction Document.

 

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(b)          Default
in Other Agreements.

 

(i)          (A)
There shall have occurred one or more defaults by any Company or any of its Subsidiaries in the payment of the principal of (or
premium, if any, on) any Indebtedness (excluding Indebtedness evidenced by the Notes) aggregating $200,000 or more when the same
becomes due and payable at its final maturity and beyond the end of any grace period provided therefor or (B) Indebtedness (excluding
the Note) of any Company or any of its Subsidiaries aggregating $200,000 or more shall have been accelerated or otherwise declared
due and payable prior to its maturity, or shall have been required to be prepaid or repurchased (other than by regularly scheduled
required prepayments or repayments in respect of asset sales, excess cash flow, or new financings), including any demand for cash
collateralization or payment under guaranties, if any, in an amount aggregating $200,000 or more of any letter or letters of credit
prior to their maturity.

 

(ii)         (A)
Any Person entitled to take the actions described in this Section 11.1(b)(ii), after the occurrence of an event of default
under any agreement or instrument evidencing any Indebtedness (other than Permitted Senior Debt) or Contingent Obligations of any
Company or any of its Subsidiaries in excess of $200,000 in the aggregate, shall commence proceedings, or take any action (including
by way of set-off) to retain in satisfaction of any Indebtedness, or to collect on, seize or dispose of, any assets of any Company
or any of its Subsidiaries that have been pledged to or for the benefit of such Person to secure such Indebtedness (including funds
on deposit or held pursuant to lock-box and other similar arrangements), pursuant to the terms of an agreement or instrument evidencing
any such Indebtedness or in accordance with applicable law or (B) the holders of the Permitted Senior Debt shall have accelerated
such Indebtedness or shall have commenced enforcement actions with respect thereto.

 

(c)          Breach
of Covenants. Any Company or any of its Subsidiaries shall fail to perform or comply with any term, provision, condition, covenant
or agreement contained in Section 5 or Section 6 hereof and such failure shall continue uncured until the expiration
of the Cure Period (as defined in Section 11.1(e)(i) below) provided no Cure Period is applicable for failure to perform or
comply with Section 5.17 or the Financial Covenants set forth in paragraph 5.12.

 

(d)          Breach
of Representation or Warranty. Any representation, warranty or certification (i) made by any Company or any of its Subsidiaries
in any Transaction Document, or (ii) made by any Company or any of its Subsidiaries in any statement or certificate at any
time given by any Company in writing pursuant hereto or in any Transaction Document or in connection herewith or therewith, shall
be false in any material respect on the date as of which it was made.

 

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(e)          Other
Defaults Under Transaction Documents.

 

(i)          Any
Company or any of its Subsidiaries shall fail to perform or comply with any term or provision (other than those referred to in
Sections 11.1(a), 11.1(c) and 11.1(d)) contained in this Agreement or any of the other Transaction Document and such failure
shall continue uncured (1) until the expiration of the applicable notice and cure period (if any) set forth in this Agreement or
the applicable Transaction Document or (2) if there is no applicable notice and cure period set forth in this Agreement or the
applicable Transaction Document, for a period of thirty (30) days after the earlier to occur of (x) the receipt of notice from
the Purchaser to cure such default or (y) the date on which such default first becomes known to the Company (either such period
described in clause (1) or (2), the “Cure Period”); provided that in no event shall a Cure Period
apply in the case of any failure to observe any term, provision, condition, covenant or agreement which is not capable of being
completely cured within the relevant time period designated for such Cure Period.

 

(ii)         Any
Company or any of its Subsidiaries shall fail to perform or comply with any term or provision the Articles of Incorporation, the
bylaws of such Company or such Subsidiary, any agreement between or among any of the holders of such Company’s or such Subsidiary’s
Equity Interests, any other organizational document of such Company or such Subsidiary or any of the leases for the Premises and
any such failure or compliance results in a Material Adverse Effect.

 

(f)          Involuntary
Bankruptcy; Appointment of Receiver, etc.

 

(i)          A
court having jurisdiction in the premises shall enter a decree or order for relief in respect of any Company or any of its Subsidiaries
in an involuntary case under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter
in effect, which decree or order is not stayed; or any other similar relief shall be granted under any applicable federal or state
law; or

 

(ii)         an
involuntary case shall be commenced against any Company or any of its Subsidiaries under the Bankruptcy Code or under any other
applicable bankruptcy, insolvency or similar law now or hereafter in effect; or a decree or order of a court having jurisdiction
in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar
powers over any Company or any of its Subsidiaries, or over all or a substantial part of their property, shall have been entered;
or there shall have occurred the involuntary appointment of an interim receiver, trustee or custodian of any Company or any of
its Subsidiaries for all or a substantial part of their property; or a warrant of attachment, execution or similar process shall
have been issued against any substantial part of the property of any Company or any of its Subsidiaries, and any such event described
in this clause (ii) shall continue for 60 days unless dismissed, bonded or discharged.

 

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(g)          Voluntary
Bankruptcy; Appointment of Receiver, etc.

 

(i)          Any
Company or any of its Subsidiaries shall have an order for relief entered with respect to it or shall commence a voluntary case
under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or shall
consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary
case, under any such law, or shall consent to the appointment of or taking possession by a receiver, trustee or other custodian
for all or a substantial part of its property; or any Company or any of its Subsidiaries shall make any assignment for the benefit
of creditors; or

 

(ii)         Any
Company or any of its Subsidiaries shall be unable, or shall fail generally, to pay its debts as such debts become due; or the
Board of Directors of any Company or any of its Subsidiaries (or any committee thereof) shall adopt any resolution or otherwise
authorize any action to approve any of the actions referred to in clause (i) of this Section 11(g) or this clause (ii).

 

(h)          Guaranty.
The Guaranty or any provision thereof shall cease to be in full force or effect, or any Guarantor shall deny or disaffirm its obligations
under the Guaranty or shall default in the due performance or observance of any term, covenant or agreement on its part to be performed
or observed pursuant to the Guaranty.

 

(i)          Judgments
and Attachments. Any money judgment, writ or warrant of attachment or similar process involving (i) in any individual case
an amount in excess of $250,000.00 or (ii) in the aggregate at any time an amount in excess of $500,000.00 (in either case not
adequately and fully covered by insurance as to which a Solvent and unaffiliated insurance company has acknowledged coverage) shall
be entered or filed against any Company or any of its Subsidiaries or any of their respective assets and shall remain undischarged,
unvacated, unbonded or unstayed for a period of sixty (60) days (or in any event later than five (5) days prior to the date of
any proposed sale thereunder).

 

(j)          Dissolution.
Any order, judgment or decree shall be entered against any Company or any of its Subsidiaries decreeing the dissolution or split
up of such Company or such Subsidiary and such order shall remain undischarged or unstayed for a period in excess of thirty (30)
days.

 

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(k)          Employee
Benefit Plans.

 

(i)          There
shall occur one or more ERISA Events which individually or in the aggregate results in, or would reasonably be expected to result
in, liability of any Company or any of its Subsidiaries in excess of $50,000 during the term of this Agreement; or

 

(ii)         there
shall exist, as of any valuation date for a Pension Benefit Plan maintained or contributed to by any Company or any of its Subsidiaries,
an excess of the actuarial present value (determined on the basis of reasonable assumptions employed by the independent actuary
for such Pension Plan for purposes of Section 412 of the IRC or Section 302 of ERISA) of benefit liabilities (as defined
in Section 4001(a)(16) of ERISA) over the fair market value of the assets of such Pension Plan, individually or in the aggregate
for all Pension Benefit Plans maintained or contributed to by any Company or any of its Subsidiaries (excluding for purposes of
such computation any Pension Benefit Plans with respect to which assets exceed benefit liabilities), which exceeds $50,000.00.

 

(l)          Change
in Control. A Change in Control shall have occurred.

 

(m)          Material
Adverse Effect. There shall occur any condition or event that has a Material Adverse Effect.

 

11.2      Remedies.

 

(a)          Upon
the occurrence and during the continuance of an Event of Default, subject to the limitations set forth in Section 11.1, subject
to the terms of the Subordination Agreement, the Purchaser shall have all rights and remedies of a secured party in, to and against
the Collateral granted by the UCC and otherwise available at law or in equity, including, without limitation: (i) the right to
declare any or all payments due under the Notes, the other Transaction Documents, and all other documents evidencing the Obligations
immediately due and payable without any presentment, demand, protest or notice of any kind, except as otherwise expressly provided
herein, and each Company hereby waives notice of intent to accelerate the Obligations and notice of acceleration; (ii) the right
to recover all fees and expenses (including reasonable attorney fees) in connection with the collection or enforcement of the Obligations,
which fees and expenses shall constitute additional Obligations of the Companies hereunder; (iii) the right to act as, and each
Company hereby constitutes and appoints the Purchaser as, such Company’s true, lawful and irrevocable attorney-in-fact (which
appointment shall be deemed coupled with an interest) to demand, receive and enforce payments and to give receipts, releases, satisfaction
for and to sue for moneys payable to such Company or any of its Subsidiaries under or with respect to any of the Collateral, and
actions taken pursuant to this appointment may be taken either in the name of such Company or in the name of the Purchaser with
the same force and effect as if this appointment had not been made; (iv) the right to take immediate and exclusive possession of
the Collateral, or any part thereof, and for that purpose, with or without judicial process and notice to any Company, enter (if
this can be done without breach of the peace) upon any premises on which the Collateral or any part thereof may be situated and
remove the same there from (provided that if the Collateral is affixed to real estate, such removal shall be subject
to the conditions stated in the UCC); (v) the right to hold, maintain, preserve and prepare the Collateral for sale, until
disposed of; (vi) the right to require each Company to assemble and package the Collateral and make it available to the Purchaser
for its possession at a place to be designated by the Purchaser which is reasonably convenient to the Purchaser; and (vii) the
right to sell, lease, hold or otherwise dispose of all or any part of the Collateral.

 

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The Purchaser
shall be entitled to receive on demand, as additional Obligations hereunder, interest accruing at the Default Rate on all amounts
not paid when due under the Notes or this Agreement until the date of actual payment. The Purchaser shall have no duty to mitigate
any loss to any Company occasioned by enforcement of any remedy hereunder and shall have no duty of any kind to any subordinated
creditor of any Company. Neither the acceptance of this Agreement nor its enforcement shall prejudice or in any manner affect the
Purchaser’s right to realize upon or enforce any other security now or hereafter held by the Purchaser, it being agreed that
the Purchaser shall be entitled to enforce this Agreement and any other security now or hereafter held by Purchaser in such order
and manner as it may in its absolute discretion determine. No remedy herein conferred upon or reserved to the Purchaser is intended
to be exclusive of any other remedy given hereunder or now or hereafter existing at law or in equity or by statute. Every power
or remedy given by any of the Transaction Documents to the Purchaser, or to which the Purchaser may be otherwise entitled, may
be exercised, concurrently or independently, from time to time and as often as may be deemed expedient by the Purchaser.

 

(b)          Should
the Purchaser exercise the rights and remedies specified in the preceding subsection (a), any proceeds received thereby shall be
first applied to pay the reasonable costs and expenses, including reasonable attorneys’ fees, incurred by the Purchaser as
a result of the Event of Default. The remainder of any proceeds, after payment of the Purchaser’s costs and expenses, shall
be applied to the satisfaction of the Obligations and any excess paid over to the Companies.

 

11.3      Retention
of Collateral.

 

Until an
Event of Default shall occur, the Companies may retain possession of the Collateral and may use it in any lawful manner not inconsistent
with this Agreement, with the provisions of any policies of insurance thereon or the other Transaction Documents.

 

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Section
12.         Miscellaneous

 

12.1      Amendments
and Waivers.

 

No amendment,
restatement, modification, termination or waiver of any provision of this Agreement or the Notes, or consent to any departure by
the Company therefrom, shall in any event be effective without the written concurrence of the Purchaser. Executed or true and complete
copies of any amendment, restatement, modification, termination or waiver effected pursuant to the provisions of this Section 12.1
shall be delivered by the Companies to the Purchaser of the Notes forthwith following the date on which the same shall have been
executed.

 

12.2      Transfers.

 

The Purchaser
shall be permitted to transfer the Notes or any portion thereof (and the rights relating thereto under this Agreement and the other
Transaction Documents) to any Person; provided that: (i) such transfer is made in connection with any of the following:
any change of control of the Purchaser or its general partner; any liquidation, winding-up or dissolution of the Purchaser or any
of its partners or principals (or suffer any liquidation or dissolution); Purchaser’s merger, consolidation, recapitalization,
joint venture, business combination or other reorganization or similar transaction with or into any other Person; Purchaser’s
filing of any bankruptcy or insolvency petition or otherwise instituting insolvency proceedings, filing or soliciting the filing
of an involuntary bankruptcy petition against the Purchaser or any of its partners or principals; any sale, transfer or any other
disposition of, in one transaction or a series of transactions, all or any part of Purchaser’s business or assets, whether
now owned or hereafter acquired; any acquisition of any portion of the business, property or assets of, or any Equity Interests
of, any Person; (ii) such transfer is made pursuant to a registration statement under the Securities Act (it being acknowledged
that, the Companies shall not be obligated to assist in any manner in any such registration) or pursuant to an exemption from the
registration requirements of the Securities Act; (iii) the applicable transferee is an “accredited investor” as defined
in Regulation D promulgated under the Securities Act; and (iv) such transferee (A) represents to the Companies in writing
that it is acquiring the Notes solely for its own account and not as nominee or agent for any other Person and not with a view
to, or for offer or sale in connection with, any distribution thereof (within the meaning of the Securities Act) that would be
in violation of the securities laws of the United States of America or any state thereof, without prejudice, however, to its right
at all times to sell or otherwise dispose of all or any part of the Notes pursuant to a registration statement under the Securities
Act or pursuant to an exemption from the registration requirements of the Securities Act, and subject, nevertheless, to the disposition
of its property being at all times within its control.

 

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Within three
(3) Business Days after its receipt of notice that a transfer is being made pursuant to this Section 12.2, but not prior to
the effective date of such transfer, the Companies shall deliver to the applicable transferee a new Note evidencing the aggregate
principal amount transferred and, if the Purchaser making such transfer is retaining an interest in the Note, a replacement Note
in the aggregate principal amount being retained by the Purchaser (such Note to be in exchange for, but not in payment of the Note
then held by the Purchaser). Each such Note shall be dated the date of the predecessor Note. The Purchaser making such transfer
shall mark the predecessor Note “exchanged” and deliver it to the Companies.

 

12.3      Notices.

 

Unless otherwise
specifically provided herein, any notice or other communication herein required or permitted to be given shall be in writing and
shall be made by electronic mail, personal service, facsimile or reputable courier service:

 

(a)          If
to any Purchaser or subsequent Holder, to PENTA MEZZANINE SBIC FUND I, L.P., 20 N. Orange Avenue, Suite 1550, Orlando, Florida
32801, Attention: Seth Ellis, Principal, Facsimile:  (407) 641-9286, e-mail:  sellis@pentamezz.com, or
such other address as shall be designated in a written notice delivered to the Companies, with copies to Katten Muchin Rosenman
LLP, 575 Madison Avenue, New York, New York 10022, Attention: Angela L. Batterson, Facsimile:  (212) 940-8776, e-mail:
angela.batterson@katten.com.

 

(b)          If
to the Companies, to Twinlab Consolidation Corporation, 600 East Quality Drive, American Fork, UT 84003, Attention: Mark Jaggi,
Chief Financial Officer, Facsimile: (801) 772-2903, e-mail: mjaggi@twinlab.com, and to Twinlab Consolidation Corporation,
632 Broadway, Suite 201, New York, NY 10012, Attention: Richard Neuwirth, Chief Legal Officer, Facsimile: (212) 260-1853, e-mail:
Rneuwirth@twinlab.com or such other address as shall be designated in a written notice delivered to the other parties hereto,
with copies to Varnum LLP, Bridgewater Place, P.O. Box 352, Grand Rapids, MI 49501, Attention: Mary Kay Shaver, Facsimile: (616)
336-7000, e-mail: mkshaver@varnumlaw.com

 

Unless otherwise
specifically provided herein, any notice or other communication shall be deemed to have been given when delivered in person or
by courier service, upon receipt of electronic mail or upon receipt of facsimile.

 

12.4      Independent
of Covenants.

 

All covenants
hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants,
the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall
not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

 

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12.5      Survival
of Representations, Warranties and Agreements.

 

(a)          All
representations, warranties and agreements made herein shall survive the execution and delivery of this Agreement and the issuance
and sale of the Securities hereunder.

 

(b)          Notwithstanding
anything in this Agreement or implied by law to the contrary, the agreements of the Company set forth in Sections 2.1(c),
2.5, and Section 9, shall survive the payment of the Notes, the exercise of the Warrants, and the termination of this Agreement.

 

12.6      Failure
or Indulgence Not Waiver; Remedies Cumulative.

 

No failure
or delay on the part of the Purchaser in the exercise of any power, right or privilege hereunder or under any other Transaction
Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor
shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any
other power, right or privilege. All rights and remedies existing under this Agreement and the other Transaction Documents are
cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

12.7       Severability.

 

In case any
provision in or obligation under this Agreement or the Notes shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

 

12.8       Headings.

 

Section and
subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of
this Agreement for any other purpose or be given any substantive effect.

 

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12.9      Governing
Law; Submission to Jurisdiction; Service of Process.

 

THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAWS RULES AND
PRINCIPLES. THE PARTIES HEREBY EXPRESSLY AND IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN
NEW YORK COUNTY, NEW YORK FOR THE PURPOSE OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT, AND IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. THE PARTIES HEREBY
EXPRESSLY AND IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH THEY MAY HAVE OR HEREAFTER MAY HAVE
TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT PERMITTED BY LAW AND TO THE EXTENT THAT ANY PARTY HAS OR HEREAFTER MAY
ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR
TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE PARTY HEREBY IRREVOCABLY
WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT. EACH COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE
OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK.

 

12.10    Successors
and Assigns.

 

This Agreement
shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of the parties
hereto and the successors and assigns of the Purchaser.

 

12.11     Waiver
of Jury Trial.

 

EACH OF THE
PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE OTHER TRANSACTION DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT
MATTER OF THIS TRANSACTION. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED
IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT
TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH
WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT
HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE OTHER TRANSACTION DOCUMENTS
OR TO ANY OTHER DOCUMENTS EXECUTED IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT. IN THE EVENT OF LITIGATION,
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

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12.12    Facsimile;
Counterparts; Effectiveness.

 

A facsimile,
telecopy or other reproduction of this Agreement may be executed by the parties (in counterparts or otherwise) and shall be considered
valid, binding and effective for all purposes. At the request of any party, the parties hereto agree to execute an original of
this Agreement as well as any facsimile, telecopy or other reproduction. This Agreement and any amendments, restatements, waivers,
consents or supplements hereto or in connection herewith may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts
and attached to a single counterpart so that all signature pages are physically attached to the same document. This Agreement shall
become effective upon the execution and delivery of a counterpart hereof by each of the parties hereto.

 

12.13    Entire
Agreement.

 

This Agreement,
together with the Securities, is intended by the parties as a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein
and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein
and therein. This Agreement, together with the Securities, supersedes all prior agreements and understandings between the parties
with respect to such subject matter.

 

12.14    Waivers
of Provisions.

 

All amendments
of this Agreement and all waivers and suspensions by Purchaser of any provision of this Agreement or of the Transaction Documents
and all waivers and suspensions by Purchaser of any default or Event of Default hereunder shall be effective only if (i) in writing
and signed by a duly authorized representative of Purchaser. The Purchaser may charge out-of-pocket expenses incurred by Purchaser
in administration of this Agreement or in evaluation of the proposed waiver, amendment or suspension, as well as additional facility
fees and administrative fees that may be required by Purchaser in connection with the Companies’ request. The fees may include
additional compensation to Purchaser for the extension of the credit facilities represented by this Agreement. Any such amendment,
waiver, or suspension may be granted only in the sole discretion of Purchaser.

 

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12.15    Termination
and Release.

 

The Obligations
of each Company hereunder (other than those that survive by their terms) shall terminate when all the Obligations (other than any
Obligations with respect to the Warrants) have been fully and indefeasibly paid and performed. Notwithstanding the foregoing, until
exercise of the Warrants in accordance with its terms the obligations of each Company under Section 5.1(g) and (h) shall remain
in effect. Upon a Permitted Disposition, Purchaser agrees to release its any Lien any property which is subject to such Permitted
Disposition so long as to the extent requested by Purchaser, Purchaser receives releases from the Companies each in form and substance
acceptable to the Purchaser.

 

12.16    Guaranty;
Joint and Several.

 

To induce
the Purchaser to purchase the Notes and to make credit available to or for the benefit of the Companies, each Company hereby, jointly
and severally, absolutely, unconditionally and irrevocably guarantees, as primary obligor and not merely as surety, the full and
punctual payment when due, whether at stated maturity or earlier, by reason of acceleration, mandatory prepayment or otherwise
in accordance with any Transaction Document, of all the Obligations of each other Company whether existing on the date hereof or
hereinafter incurred or created. This Guaranty by each Company hereunder constitutes a guaranty of payment and not of collection.
The Companies and Guarantors agree that the Obligations of the Companies and Guarantors hereunder and under the other Transaction
Documents are joint and several.

 

12.17    Purchaser
as Subordinated Lender; Replacement of Senior Lender.

 

(a)          Purchaser
acknowledges that it is a mezzanine lender subject to the first-priority lien of the Senior Lender and agrees, notwithstanding
anything to contrary in this Agreement or any other Transaction Document, that the terms of, and obligations of the Companies under,
the Transaction Documents are subject to the terms of the Subordination Agreement.

 

(b)          The
Purchaser acknowledges that the Companies are seeking to replace the existing Senior Lender, Fifth Third Bank, with a new Senior
Lender. In connection with this, the Purchaser agrees to negotiate, in good faith, the terms of a new subordination agreement and
such other amendments, agreements, documents and instruments as the new Senior Lender may reasonably request in order to replace
Fifth Third Bank.

 

[Signature pages
follow.]

 

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	 	PURCHASER:
	 	 
	 	PENTA MEZZANINE SBIC FUND I, L.P., a Delaware limited partnership
	 	 	 
	 	By:	Penta Mezzanine SBIC Fund I GP, LLC, its General Partner
	 	 	 
	 	 	By:	/s/ Richard E. Mount
	 	 	Name:  Richard E. Mount
	 	 	Title:  Authorized Member

 

    	 

    	 

    

 

	 	COMPANIES:
	 	 
	 	TWINLAB CONSOLIDATED HOLDINGS, INC., a Nevada corporation
	 	 	 	 
	 	By:	/s/ Thomas A. Tolworthy	 
	 	Name: 	Thomas A. Tolworthy	 
	 	Title:	Chief Executive Officer and President	 
	 	 	 	 
	 	TWINLAB CONSOLIDATION CORPORATION, a Delaware corporation
	 	 	 	 
	 	By:	/s/ Thomas A. Tolworthy	 
	 	Name:	Thomas A. Tolworthy	 
	 	Title:	Chief Executive Officer and President	 
	 	 	 	 
	 	TWINLAB HOLDINGS, INC., a Michigan corporation
	 	 	 	 
	 	By:	/s/ Thomas A. Tolworthy	 
	 	Name:	Thomas A. Tolworthy	 
	 	Title:	Chief Executive Officer and President	 
	 	 
	 	ISI BRANDS INC., a Michigan corporation
	 	 	 	 
	 	By:	/s/ Thomas A. Tolworthy	 
	 	Name:	Thomas A. Tolworthy	 
	 	Title:	Chief Executive Officer and President	 
	 	 	 	 
	 	TWINLAB CORPORATION, a Delaware corporation
	 	 	 	 
	 	By:	/s/ Thomas A. Tolworthy	 
	 	Name:	Thomas A. Tolworthy	 
	 	Title:	Chief Executive Officer and President

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