Exhibit 4.1


 





 



 


LIPOCINE
INC.


 


and


 


AMERICAN
STOCK TRANSFER & TRUST COMPANY, LLC, as Rights Agent


 


RIGHTS
AGREEMENT


 


Dated
as of November 13, 2015


 





 



 




    	 	 	 



     


    

 


TABLE OF CONTENTS


 


	 	Page
	 	 
	Section 1. Certain Definitions	1
	 	 
	Section 2. Appointment of Rights Agent	7
	 	 
	Section 3. Issue of Right Certificates.	7
	 	 
	Section 4. Form of Right Certificates	9
	 	 
	Section 5. Countersignature and Registration.	10
	 	 
	Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates; Uncertificated Rights.	10
	 	 
	Section 7. Exercise of Rights, Purchase Price; Expiration Date of Rights.	11
	 	 
	Section 8. Cancellation and Destruction of Right Certificates	12
	 	 
	Section 9. Availability of Shares of Preferred Stock.	13
	 	 
	Section 10. Preferred Stock Record Date	14
	 	 
	Section 11. Adjustment of Purchase Price, Number and Kind of Shares and Number of Rights.	14
	 	 
	Section 12. Certificate of Adjusted Purchase Price or Number of Shares	22
	 	 
	Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power.	23
	 	 
	Section 14. Fractional Rights and Fractional Shares.	26
	 	 
	Section 15. Rights of Action	27
	 	 
	Section 16. Agreement of Right Holders	27
	 	 
	Section 17. Right Certificate Holder Not Deemed a Stockholder	28
	 	 
	Section 18. Concerning the Rights Agent.	28
	 	 
	Section 19. Merger or Consolidation or Change of Name of Rights Agent.	29
	 	 
	Section 20. Duties of Rights Agent	29
	 	 
	Section 21. Change of Rights Agent	32
	 	 
	Section 22. Issuance of New Right Certificates.	32


 




    	 	 	 



     


    

 


	Section 23. Redemption.	33
	 	 
	Section 24. Exchange.	34
	 	 
	Section 25. Notice of Certain Events.	35
	 	 
	Section 26. Notices	35
	 	 
	Section 27. Supplements and Amendments.	36
	 	 
	Section 28. Successors	37
	 	 
	Section 29. Benefits of this Agreement	37
	 	 
	Section 30. Determinations and Actions by the Board of Directors	37
	 	 
	Section 31. Severability	37
	 	 
	Section 32. Governing Law	37
	 	 
	Section 33. Counterparts	37
	 	 
	Section 34. Descriptive Headings	37


 




    	 	 	 



     


    

 


RIGHTS
AGREEMENT


 


Rights Agreement, dated
as of November 13, 2015 ("Agreement"), between Lipocine Inc., a
Delaware corporation (the "Company"), and American Stock Transfer & Trust Company LLC, as Rights Agent (the
"Rights Agent").


 


The Board of Directors
of the Company has adopted resolutions creating a series of preferred stock designated as "Series A Junior Participating Preferred
Stock" and authorized and declared a dividend of one preferred share purchase right (a "Right") for each
share of Common Stock (as hereinafter defined) outstanding as of the Close of Business (as defined below) on November 30, 2015
(the "Record Date"), each Right initially representing the right to purchase one one-thousandth (subject to adjustment)
of a share of Preferred Stock (as hereinafter defined), upon the terms and subject to the conditions herein set forth, and has
further authorized and directed the issuance of one Right (subject to adjustment as provided herein) with respect to each share
of Common Stock that shall become outstanding between the Record Date and the earlier of the Distribution Date and the Expiration
Date (as such terms are hereinafter defined); provided, however, that Rights may be issued with respect to shares
of Common Stock that shall become outstanding after the Distribution Date and prior to the Expiration Date in accordance with Section
22.


 


Accordingly, in consideration
of the premises and the mutual agreements herein set forth, the parties hereby agree as follows:


 


Section 1. Certain
Definitions. For purposes of this Agreement, the following terms have the meaning indicated:


 


(a)          "Acquiring
Person" shall mean any Person (as such term is hereinafter defined) who or which shall be the Beneficial Owner (as such term
is hereinafter defined) of 15% or more of the shares of Common Stock then outstanding, but shall not include an Exempt Person (as
such term is hereinafter defined); provided, however, that


 


(i)          if
the Board of Directors of the Company determines that a Person who would otherwise be an "Acquiring Person" became
the Beneficial Owner of a number of shares of Common Stock such that the Person would otherwise qualify as an "Acquiring
Person" inadvertently (including, without limitation, because (A) such Person was unaware that it beneficially owned that
number of shares of Common Stock that would otherwise cause such Person to be an "Acquiring Person" or (B) such
Person was aware of the extent of its Beneficial Ownership of Common Stock but had no actual knowledge of the consequences of such
Beneficial Ownership under this Agreement) and without any intention of obtaining, changing or influencing control of the Company,
then such Person shall not be deemed to be or to have become an "Acquiring Person" for any purposes of this Agreement
unless and until such Person shall have failed to divest itself, as soon as practicable (as determined by the Board of Directors
of the Company), of Beneficial Ownership of a sufficient number of shares of Common Stock so that such Person would no longer otherwise
qualify as an "Acquiring Person";


 




    	 	1	 



     


    

 


(ii)         if,
as of the date hereof or prior to the first public announcement of the adoption of this Agreement, any Person is or becomes the
Beneficial Owner of 15% or more of the shares of Common Stock outstanding, such Person shall not be deemed to be or to become an
"Acquiring Person" unless and until such time as such Person shall, after the first public announcement of the
adoption of this Agreement, become the Beneficial Owner of additional shares of Common Stock representing 1% or more of the shares
of Common Stock then outstanding (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding
Common Stock or pursuant to a split or subdivision of the outstanding Common Stock), unless, upon becoming the Beneficial Owner
of such additional shares of Common Stock, such Person is not then the Beneficial Owner of 15% or more of the shares of Common
Stock then outstanding;


 


(iii)        no
Person shall become an "Acquiring Person" solely as a result of any unilateral grant of any security by the Company
or through the exercise of any options, warrants, rights or similar interests (including restricted stock) granted by the Company
to its directors, officers and employees;


 


(iv)        no
Person shall become an "Acquiring Person" solely as the result of an acquisition of shares of Common Stock by
the Company which, by reducing the number of shares of Common Stock outstanding, increases the proportion of the shares of Common
Stock beneficially owned by such Person to 15% or more of the Common Stock then outstanding; provided, however, that
if a Person shall become the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding by reason of such share
acquisitions by the Company and shall thereafter become the Beneficial Owner of any additional shares of Common Stock (other than
pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Stock or pursuant to a split or subdivision
of the outstanding Common Stock), then such Person shall be deemed to be an "Acquiring Person" unless, upon becoming
the Beneficial Owner of such additional shares of Common Stock, such Person does not beneficially own 15% or more of the shares
of Common Stock then outstanding; and


 


(v)         no
Person shall become an "Acquiring Person" solely as the result of the acquisition by such Person of Beneficial
Ownership of shares of Common Stock from an individual who, on the later of the date hereof and the first public announcement of
this Agreement, is the Beneficial Owner of 15% or more of the Common Stock then outstanding if such shares of Common Stock are
received by such Person upon such individual's death pursuant to such individual's will or pursuant to a charitable trust created
by such individual for estate planning purposes.


 




    	 	2	 



     


    

 


With respect to any Person, for all purposes
of this Agreement, any calculation of the number of shares of Common Stock outstanding at any particular time, including for purposes
of determining the particular percentage of the outstanding shares of Common Stock of which any such Person is the Beneficial Owner,
shall include the number of shares of Common Stock not outstanding at the time of such calculation that such Person is otherwise
deemed to beneficially own for purposes of this Agreement, but the number of shares of Common Stock not outstanding that such Person
is otherwise deemed to beneficially own for purposes of this Agreement shall not be included for the purpose of computing the percentage
of the outstanding shares of Common Stock beneficially owned by any other Person (unless such other Person is also deemed to beneficially
own for purposes of this Agreement such shares of Common Stock not outstanding).


 


(b)          "Affiliate"
and "Associate" shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and
Regulations under the Exchange Act (as such term is hereinafter defined).


 


(c)          A
Person shall be deemed the "Beneficial Owner" of, shall be deemed to have "Beneficial Ownership" of
and shall be deemed to "beneficially own" any securities:


 


(i)          which
such Person or any of such Person's Affiliates or Associates is deemed to beneficially own, directly or indirectly, within the
meaning of Rule l3d-3 of the General Rules and Regulations under the Exchange Act;


 


(ii)         which
such Person or any of such Person's Affiliates or Associates has: (A) the right to acquire (whether such right is exercisable immediately
or only after the passage of time or upon the satisfaction of conditions) pursuant to any agreement, arrangement or understanding
(other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering
of securities), or upon the exercise of conversion rights, exchange rights, rights (other than the Rights), warrants or options,
or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own,
(w) securities tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person's Affiliates
or Associates until such tendered securities are accepted for purchase, (x) securities which such Person has a right to acquire
upon the exercise of Rights at any time prior to the time that any Person becomes an Acquiring Person, (y) securities issuable
upon the exercise of Rights from and after the time that any Person becomes an Acquiring Person if such Rights were acquired by
such first Person or any of such first Person's Affiliates or Associates prior to the Distribution Date or pursuant to Section
3(a) or Section 22 hereof ("Original Rights") or pursuant to Section 11(i) or Section 11(n) with respect to an
adjustment to Original Rights, or (z) securities which such Person or any of such Person's Affiliates or Associates may acquire,
does or do acquire or may be deemed to have the right to acquire, pursuant to any merger or other acquisition agreement between
the Company and such Person (or one or more of such Person's Affiliates or Associates) if such agreement has been approved by the
Board of Directors of the Company prior to such Person's becoming an Acquiring Person; or (B) the right to vote pursuant to
any agreement, arrangement or understanding (whether or not in writing); provided, however, that a Person shall not
be deemed the Beneficial Owner of, or to beneficially own, any security by reason of such agreement, arrangement or understanding
if the agreement, arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given
to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules
and regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or
any comparable or successor report); or


 




    	 	3	 



     


    

 


(iii)        which
are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate of such other Person) and with
respect to which such first Person or any of such first Person's Affiliates or Associates has (x) any agreement, arrangement or
understanding (whether or not in writing) (other than customary agreements with and between underwriters and selling group members
with respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting (except to the extent
contemplated by the proviso to Section 1(c)(ii)(B)) or disposing of such securities or (y) any agreement, arrangement or understanding
(whether or not in writing) to cooperate in obtaining, changing or influencing control of the issuer of such securities.


 


provided, however,
that no Person who is an officer, director or employee of an Exempt Person shall be deemed, solely by reason of such Person's status
or authority as such, to be the "Beneficial Owner" of, to have "Beneficial Ownership" of or to
"beneficially own" any securities that are "beneficially owned" (as defined in this Section l(c)),
including, without limitation, in a fiduciary capacity, by an Exempt Person or by any other such officer, director or employee
of an Exempt Person.


 


(d)          "Book
Entry" shall mean an uncertificated book entry for the Common Stock.


 


(e)          "Business
Day" shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the State of New York
or the city in which the principal office of the Rights Agent is located are authorized or obligated by law or executive order
to close.


 


(f)          "Certificate
of Incorporation" shall mean the Amended and Restated Certificate of Incorporation of the Company, as filed with the Secretary
of State of the State of Delaware on July 24, 2013, as the same may be amended and restated from time to time.


 


(g)          "Close
of Business" on any given date shall mean 5:00 P.M., New York City time, on such date; provided, however,
that if such date is not a Business Day it shall mean 5:00 P.M., New York City time, on the next succeeding Business Day.


 


(h)          "Common
Stock" when used with reference to the Company or without reference shall mean the Common Stock, presently par value $0.0001
per share of the Company. "Common Stock" when used with reference to any Person other than the Company shall mean
the common stock (or, in the case of any entity other than a corporation, the equivalent equity interest) with the greatest voting
power of such other Person or, if such other Person is a Subsidiary (as such term is hereinafter defined) of another Person, the
Person or Persons which ultimately control such first-mentioned Person.


 




    	 	4	 



     


    

 


(i)          "Common
Stock Equivalents" shall have the meaning set forth in Section 11(a)(iii) hereof.


 


(j)          "Current
Value" shall have the meaning set forth in Section 11(a)(iii) hereof.


 


(k)          "Distribution
Date" shall have the meaning set forth in Section 3 hereof.


 


(l)          "Equivalent
Preferred Shares" shall have the meaning set forth in Section 11(b) hereof.


 


(m)          "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended.


 


(n)          "Exempt
Person" shall mean the Company or any Subsidiary of the Company, in each case including, without limitation, in its fiduciary
capacity, or any employee benefit plan of the Company or of any Subsidiary of the Company, or any entity or trustee holding (or
acting in a fiduciary capacity in respect of) Common Stock for or pursuant to the terms of any such plan or for the purpose of
funding any such plan or funding other employee benefits for employees of the Company or of any Subsidiary of the Company.


 


(o)          "Exchange
Ratio" shall have the meaning set forth in Section 24 hereof.


 


(p)          "Expiration
Date" shall have the meaning set forth in Section 7 hereof.


 


(q)          "Final
Expiration Date" shall have the meaning set forth in Section 7 hereof.


 


(r)          "Flip-In
Event" shall have the meaning set forth in Section 11(a)(ii) hereof.


 


(s)          "NASDAQ"
shall mean The NASDAQ Stock Market LLC.


 


(t)          "New
York Stock Exchange" shall mean the New York Stock Exchange, Inc.


 


(u)          "Person"
shall mean any individual, firm, corporation, partnership, limited liability company, trust or other entity, and shall include
any successor (by merger or otherwise) to such entity.


 




    	 	5	 



     


    

 


(v)         "Preferred
Stock" shall mean the Series A Junior Participating Preferred Stock, par value $0.0001 per share, of the Company having
the rights and preferences set forth in the Form of Certificate of Designation attached to this Agreement as Exhibit A.


 


(w)          "Principal
Party" shall have the meaning set forth in Section 13(b) hereof.


 


(x)          "Purchase
Price" shall have the meaning set forth in Section 7(b) hereof.


 


(y)          "Record
Date" shall have the meaning set forth in the recitals hereto.


 


(z)          "Redemption
Date" shall have the meaning set forth in Section 7 hereof.


 


(aa)         "Redemption
Price" shall have the meaning set forth in Section 23 hereof.


 


(bb)         "Right"
shall have the meaning set forth in the recitals hereto.


 


(cc)         "Right
Certificate" shall have the meaning set forth in Section 3 hereof.


 


(dd)         "Securities
Act" shall mean the Securities Act of 1933, as amended.


 


(ee)         "Section
11(a)(ii) Trigger Date" shall have the meaning set forth in Section 11(a)(iii) hereof.


 


(ff)         "Spread"
shall have the meaning set forth in Section 11(a)(iii) hereof.


 


(gg)         "Stock
Acquisition Date" shall mean the first date of public announcement (which, for purposes of this definition, shall include,
without limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the Company or an Acquiring Person that an
Acquiring Person has become such, or such earlier date as a majority of the Board of Directors of the Company shall become aware
of the existence of an Acquiring Person.


 


(hh)         "Subsidiary"
of any Person shall mean any corporation or other entity of which securities or other ownership interests having ordinary voting
power sufficient to elect a majority of the board of directors or other persons performing similar functions are beneficially owned,
directly or indirectly, by such Person, and any corporation or other entity that is otherwise controlled by such Person.


 




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(ii)         "Substitution
Period" shall have the meaning set forth in Section 11(a)(iii) hereof.


 


(jj)         "Summary
of Rights" shall have the meaning set forth in Section 3(b) hereof.


 


(kk)         "Trading
Day" shall have the meaning set forth in Section 11(d)(i) hereof.


 


(ll)         "Trust"
shall have the meaning set forth in Section 24(a) hereof.


 


(mm)         "Trust
Agreement" shall have the meaning set forth in Section 24(a) hereof.


 


Section 2. Appointment
of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company and the holders of the Rights
(who, in accordance with Section 3 hereof, shall prior to the Distribution Date be the holders of Common Stock) in accordance with
the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint
such co-Rights Agents as it may deem necessary or desirable (the term "Rights Agent" being used herein to refer,
collectively, to the Rights Agent together with any such co-Rights Agents). In the event the Company appoints one or more co-Rights
Agents, the respective duties of the Rights Agent and any co-Rights Agents shall be as the Company shall determine; provided, however,
that the Rights Agent shall have no duty to supervise, and will in no event be liable for the acts or omissions of, any co-Rights
Agent.


 


Section 3. Issue of
Right Certificates.


 


(a)          Until
the Close of Business on the earlier of (i) the tenth Business Day after the Stock Acquisition Date or (ii) the tenth Business
Day (or such later date as may be determined by action of the Board of Directors of the Company prior to such time as any Person
becomes an Acquiring Person) after the date of the commencement by any Person (other than an Exempt Person) of, or of the first
public announcement of the intention of any Person (other than an Exempt Person) to commence, a tender or exchange offer the consummation
of which would result in any Person (other than an Exempt Person) having beneficial ownership or becoming the Beneficial Owner
of 15% or more of the shares of Common Stock then outstanding (the earlier of such dates being herein referred to as the "Distribution
Date", provided, however, that the Distribution Date shall in no event be prior to the Record Date), (x)
the Rights will be evidenced (subject to the provisions of Sections 3(b) and 3(c) hereof) by the certificates representing the
Common Stock registered in the names of the holders thereof (or by Book Entry shares in respect of such Common Stock) and not by
separate Right Certificates, and (y) the Rights will be transferable only in connection with the transfer of Common Stock. As soon
as practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign and the Company
will send or cause to be sent (and the Rights Agent will, if requested, send) by first-class, insured, postage-prepaid mail, to
each record holder of Common Stock as of the Close of Business on the Distribution Date (other than any Acquiring Person or any
Associate or Affiliate of an Acquiring Person), at the address of such holder shown on the records of the Company, a Right Certificate,
in substantially the form of Exhibit B hereto (a "Right Certificate"), evidencing one Right (subject to adjustment
as provided herein) for each share of Common Stock so held. As of the Distribution Date, the Rights will be evidenced solely by
such Right Certificates.


 




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(b)          On
the Record Date, or as soon as practicable thereafter, the Company will send a copy of a Summary of Rights to Purchase Shares of
Preferred Stock, in substantially the form of Exhibit C hereto (the "Summary of Rights"), by first-class, postage-prepaid
mail, to each record holder of Common Stock as of the Close of Business on the Record Date (other than any Acquiring Person or
any Associate or Affiliate of any Acquiring Person), at the address of such holder shown on the records of the Company. With respect
to certificates representing Common Stock (or Book Entry shares of Common Stock) outstanding as of the Record Date, until the Distribution
Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof (or such Book Entry shares)
together with the Summary of Rights. Until the Distribution Date (or, if earlier, the Expiration Date), the surrender for transfer
of any certificate representing Common Stock (or any Book Entry shares of Common Stock) outstanding on the Record Date, with or
without a copy of the Summary of Rights, shall also constitute the transfer of the Rights associated with the Common Stock represented
thereby.


 


(c)          Rights
shall, without any further action, be issued in respect of all shares of Common Stock issued or disposed of by the Company after
the Record Date but prior to the earlier of the Distribution Date and the Expiration Date, or in certain circumstances provided
in Section 22 hereof, after the Distribution Date. Certificates issued for Common Stock after the Record Date but prior to the
earlier of the Distribution Date and the Expiration Date, or in certain circumstances provided in Section 22 hereof, after the
Distribution Date shall have impressed on, printed on, written on or otherwise affixed to them the following legend:


 


This certificate also evidences
and entitles the holder hereof to certain Rights as set forth in a Rights Agreement between Lipocine Inc. (the "Company")
and American Stock Transfer & Trust Company LLC, as Rights Agent, dated as of November 13, 2015
and as amended from time to time (the "Rights Agreement"), the terms of which are hereby incorporated herein by
reference and a copy of which is on file at the principal executive offices of the Company. Under certain circumstances, as set
forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate.
The Company will mail to the holder of this certificate a copy of the Rights Agreement without charge after receipt of a written
request therefor. Under certain circumstances, as set forth in the Rights Agreement, Rights owned by or transferred to any Person
who is or becomes an Acquiring Person (as defined in the Rights Agreement) and certain transferees thereof will become null and
void and will no longer be transferable.


 




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With respect to any Book Entry shares of
Common Stock, such legend shall be included in a notice to the record holder of such shares in accordance with applicable law.
With respect to such certificates containing the foregoing legend, or any notice of the foregoing legend delivered to holders of
Book Entry shares, until the Distribution Date, the Rights associated with the Common Stock represented by such certificates or
Book Entry shares shall be evidenced by such certificates or Book Entry shares alone, and the surrender for transfer of any such
certificate or Book Entry share, except as otherwise provided herein, shall also constitute the transfer of the Rights associated
with the Common Stock represented thereby. In the event that the Company purchases or otherwise acquires any Common Stock after
the Record Date but prior to the Distribution Date, any Rights associated with such Common Stock shall be deemed canceled and retired
so that the Company shall not be entitled to exercise any Rights associated with the Common Stock which are no longer outstanding.


 


Notwithstanding this
paragraph (c), neither the omission of a legend nor the failure to deliver the notice of such legend required hereby shall affect
the enforceability of any part of this Agreement or the rights of any holder of the Rights.


 


Section 4. Form of
Right Certificates. The Right Certificates (and the forms of election to purchase shares and of assignment to be printed on
the reverse thereof) shall be substantially in the form set forth in Exhibit B hereto and may have such marks of identification
or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any stock exchange or interdealer quotation system on which the Rights may from
time to time be listed or quoted, or to conform to usage. Subject to the provisions of this Agreement, each Right Certificate shall
entitle the holder thereof to purchase such number of one one-thousandths of a share of Preferred Stock as shall be set forth therein
at the Purchase Price, but the number of such one one-thousandths of a share of Preferred Stock and the Purchase Price shall be
subject to adjustment as provided herein.


 




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Section 5. Countersignature
and Registration.


 


(a)          The
Right Certificates shall be executed on behalf of the Company by the President, the Chief Executive Officer, the Chief Financial
Officer, the Treasurer or the Secretary of the Company, either manually or by facsimile signature, shall have affixed thereto the
Company's seal or a facsimile thereof and shall be attested by the Secretary of the Company, either manually or by facsimile signature.
The Right Certificates shall be manually or by facsimile countersigned by the Rights Agent and shall not be valid for any purpose
unless countersigned. In case any officer of the Company who shall have signed any of the Right Certificates shall cease to be
such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates,
nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as
though the Person who signed such Right Certificates had not ceased to be such officer of the Company; and any Right Certificate
may be signed on behalf of the Company by any Person who, at the actual date of the execution of such Right Certificate, shall
be a proper officer of the Company to sign such Right Certificate, although at the date of the execution of this Agreement any
such Person was not such an officer.


 


(b)          Following
the Distribution Date, the Rights Agent will keep or cause to be kept, at an office or agency designated for such purpose, books
for registration and transfer of the Right Certificates issued hereunder. Such books shall show the names and addresses of the
respective holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right Certificates and
the date of each of the Right Certificates.


 


Section 6. Transfer,
Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates; Uncertificated
Rights.


 


(a)          Subject
to the provisions of this Agreement, at any time after the Distribution Date and prior to the Expiration Date, any Right Certificate
or Right Certificates (other than Right Certificates representing Rights that have become void pursuant to Section 11(a)(ii) hereof
or that have been exchanged pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Right
Certificate or Right Certificates, entitling the registered holder to purchase a like number of one one-thousandths of a share
of Preferred Stock as the Right Certificate or Right Certificates surrendered then entitled such holder to purchase. Any registered
holder desiring to transfer, split up, combine or exchange any Right Certificate or Right Certificates shall make such request
in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to be transferred, split
up, combined or exchanged at the office or agency of the Rights Agent designated for such purpose. Thereupon the Rights Agent shall
countersign and deliver to the Person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested.
The Company may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with
any transfer, split up, combination or exchange of Right Certificates.


 


(b)          Subject
to the provisions of this Agreement, at any time after the Distribution Date and prior to the Expiration Date, upon receipt by
the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a
Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them, and, at
the Company's request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will make and deliver a new Right
Certificate of like tenor to the Rights Agent for delivery to the registered holder in lieu of the Right Certificate so lost, stolen,
destroyed or mutilated.


 




    	 	10	 



     


    

 


(c)          Notwithstanding
any other provision hereof, the Company and the Rights Agent may amend this Agreement to provide for uncertificated Rights in addition
to or in place of Rights evidenced by Right Certificates, to the extent permitted by applicable law.


 


Section 7. Exercise
of Rights, Purchase Price; Expiration Date of Rights.


 


(a)          Except
as otherwise provided herein, the Rights shall become exercisable on the Distribution Date, and thereafter the registered holder
of any Right Certificate (other than Right Certificates representing Rights that have become void pursuant to Section 11(a)(ii)
hereof or that have been exchanged pursuant to Section 24 hereof) may, subject to Section 11(a)(ii) hereof and except as otherwise
provided herein, exercise the Rights evidenced thereby in whole or in part upon surrender of the Right Certificate, with the form
of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the office or agency of the Rights Agent
designated for such purpose, together with payment of the aggregate Purchase Price with respect to the total number of one one-thousandths
of a share of Preferred Stock (or other securities, cash or other assets, as the case may be) as to which the Rights are exercised,
at any time which is both after the Distribution Date and prior to the time (the "Expiration Date") that is the
earliest of (i) the Close of Business on November 12, 2018 (the "Final Expiration Date"), (ii) the time at which
the Rights are redeemed as provided in Section 23 hereof (the "Redemption Date"), (iii) the closing of any merger
or other acquisition transaction involving the Company pursuant to an agreement of the type described in Sections 1(c)(ii)(A)(z)
and 13(f) at which time the Rights are terminated, or (iv) the time at which such Rights are exchanged as provided in Section 24
hereof.


 


(b)          The
Purchase Price shall be initially $63.96 for each one one-thousandth of a share of Preferred Stock purchasable upon the exercise
of a Right. The Purchase Price and the number of one one-thousandths of a share of Preferred Stock or other securities or property
to be acquired upon exercise of a Right shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof
and shall be payable in lawful money of the United States of America in accordance with paragraph (c) of this Section 7.


 




    	 	11	 



     


    

 


(c)          Except
as otherwise provided herein, upon receipt of a Right Certificate representing exercisable Rights, with the form of election to
purchase duly executed, accompanied by payment of the aggregate Purchase Price for the shares of Preferred Stock (or other securities,
cash or other assets, as the case may be) to be purchased and an amount equal to any applicable transfer tax required to be paid
by the holder of such Right Certificate in accordance with Section 9 hereof, in cash or by certified check, cashier's check or
money order payable to the order of the Company, the Rights Agent shall thereupon promptly (i) (A) requisition from any transfer
agent of the Preferred Stock, or make available if the Rights Agent is the transfer agent for the Preferred Stock, certificates
for the number of shares of Preferred Stock to be purchased, and the Company hereby irrevocably authorizes its transfer agent to
comply with all such requests, or (B) requisition from a depositary agent appointed by the Company depositary receipts representing
interests in such number of one one-thousandths of a share of Preferred Stock as are to be purchased (in which case certificates
for the Preferred Stock represented by such receipts shall be deposited by the transfer agent with the depositary agent), and the
Company hereby directs any such depositary agent to comply with such request, (ii) when appropriate, requisition from the Company
the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 14 hereof, (iii) promptly after
receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the order of the registered holder
of such Right Certificate, registered in such name or names as may be designated by such holder and (iv) when appropriate, after
receipt, promptly deliver such cash to or upon the order of the registered holder of such Right Certificate.


 


(d)          Except
as otherwise provided herein, in case the registered holder of any Right Certificate shall exercise less than all of the Rights
evidenced thereby, a new Right Certificate evidencing Rights equivalent to the exercisable Rights remaining unexercised shall be
issued by the Rights Agent to the registered holder of such Right Certificate or to his duly authorized assigns, subject to the
provisions of Section 14 hereof.


 


(e)          Notwithstanding
anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action
with respect to a registered holder of Rights upon the occurrence of any purported transfer or exercise of Rights pursuant to Section
6 hereof or this Section 7 unless such registered holder shall have (i) completed and signed the certificate contained in the form
of assignment or form of election to purchase set forth on the reverse side of the Right Certificate surrendered for such transfer
or exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) thereof
as the Company shall reasonably request.


 


Section 8. Cancellation
and Destruction of Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation
or in canceled form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Right Certificates shall be issued
in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights
Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or
acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all canceled Right Certificates
to the Company, or shall, at the written request of the Company, destroy such canceled Right Certificates, and in such case shall
deliver a certificate of destruction thereof to the Company.


 




    	 	12	 



     


    

 


Section 9. Availability
of Shares of Preferred Stock.


 


(a)          The
Company covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued shares of
Preferred Stock or any shares of Preferred Stock held in its treasury, the number of shares of Preferred Stock that will be sufficient
to permit the exercise in full of all outstanding Rights.


 


(b)          So
long as the shares of Preferred Stock issuable upon the exercise of Rights may be listed or admitted to trading on any national
securities exchange, the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable,
all shares reserved for such issuance to be listed or admitted to trading on such exchange upon official notice of issuance upon
such exercise.


 


(c)          From
and after such time as the Rights become exercisable, the Company shall use its best efforts, if then necessary to permit the issuance
of shares of Preferred Stock upon the exercise of Rights, to register and qualify such shares of Preferred Stock under the Securities
Act and any applicable state securities or "Blue Sky" laws (to the extent exemptions therefrom are not available), cause
such registration statement and qualifications to become effective as soon as possible after such filing and keep such registration
and qualifications effective (with a prospectus at all times meeting the requirements of the Securities Act) until the earlier
of the date as of which the Rights are no longer exercisable for such securities and the Expiration Date. The Company may temporarily
suspend, for a period of time not to exceed 120 days, the exercisability of the Rights in order to prepare and file a registration
statement under the Securities Act and permit it to become effective. Upon any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at
such time as the suspension is no longer in effect. Notwithstanding any provision of this Agreement to the contrary, the Rights
shall not be exercisable in any jurisdiction unless the requisite qualification in such jurisdiction shall have been obtained and
until a registration statement under the Securities Act shall have been declared effective, unless an exemption therefrom is available.


 


(d)          The
Company covenants and agrees that it will take all such action as may be necessary to ensure that all shares of Preferred Stock
(or other securities of the Company) delivered upon exercise of Rights shall, at the time of delivery of the certificates therefor
(subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable shares.


 


(e)          The
Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges
which may be payable in respect of the issuance or delivery of the Right Certificates or of any shares of Preferred Stock (or other
securities of the Company) upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax which
may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance or delivery
of certificates or depositary receipts for the Preferred Stock (or other securities of the Company) in a name other than that of,
the registered holder of the Right Certificate evidencing Rights surrendered for exercise or to issue or deliver any certificates
or depositary receipts for Preferred Stock (or other securities of the Company) upon the exercise of any Rights until any such
tax shall have been paid (any such tax being payable by that holder of such Right Certificate at the time of surrender) or until
it has been established to the Company's reasonable satisfaction that no such tax is due.


 




    	 	13	 



     


    

 


Section 10. Preferred
Stock Record Date. Each Person in whose name any certificate for Preferred Stock is issued upon the exercise of Rights shall
for all purposes be deemed to have become the holder of record of the shares of Preferred Stock (or other securities of the Company)
represented thereby on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was
duly surrendered and payment of the Purchase Price (and any applicable transfer taxes) was made; provided, however,
that if the date of such surrender and payment is a date upon which the Preferred Stock transfer books of the Company are closed,
such Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding
Business Day on which the Preferred Stock transfer books of the Company are open. Prior to the exercise of the Rights evidenced
thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred Stock for which the Rights
shall be exercisable, including, without limitation, the right to vote or to receive dividends or other distributions, and shall
not be entitled to receive any notice of any proceedings of the Company, except as provided herein.


 


Section 11. Adjustment
of Purchase Price, Number and Kind of Shares and Number of Rights. The Purchase Price, the number of shares of Preferred Stock
or other securities or property purchasable upon exercise of each Right and the number of Rights outstanding are subject to adjustment
from time to time as provided in this Section 11.


 


(a)          (i)
In the event the Company shall at any time after the date of this Agreement (A) declare and pay a dividend on the Preferred Stock
payable in shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C) combine the outstanding Preferred Stock
into a smaller number of shares of Preferred Stock or (D) issue any shares of its capital stock in a reclassification of the Preferred
Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), except as otherwise provided in this Section 11(a), the number and kind of shares of capital stock issuable
upon exercise of a Right as of the record date for such dividend or the effective date of such subdivision, combination or reclassification
shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate
number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such date and at a time
when the Preferred Stock transfer books of the Company were open, the holder would have owned upon such exercise and been entitled
to receive by virtue of such dividend, subdivision, combination or reclassification.


 




    	 	14	 



     


    

 


(ii)         Subject
to Section 24 of this Agreement, in the event any Person becomes an Acquiring Person (the first occurrence of such event being
referred to hereinafter as the "Flip-In Event"), then (A) the Purchase Price shall be adjusted to be the Purchase
Price in effect immediately prior to the Flip-In Event multiplied by the number of one one-thousandths of a share of Preferred
Stock for which a Right was exercisable immediately prior to such Flip-In Event, whether or not such Right was then exercisable,
and (B) each holder of a Right, except as otherwise provided in this Section 11(a)(ii) and Section 11(a)(iii) hereof, shall thereafter
have the right to receive, upon exercise thereof at a price equal to the Purchase Price (as so adjusted), in accordance with the
terms of this Agreement and in lieu of shares of Preferred Stock, such number of shares of Common Stock as shall equal the result
obtained by dividing the Purchase Price (as so adjusted) by 50% of the current per share market price of the Common Stock (determined
pursuant to Section 11(d) hereof) on the date of such Flip-In Event; provided, however, that the Purchase Price (as
so adjusted) and the number of shares of Common Stock so receivable upon exercise of a Right shall, following the Flip-In Event,
be subject to further adjustment as appropriate in accordance with Section 11(f) hereof. Notwithstanding anything in this Agreement
to the contrary, however, from and after the Flip-In Event, any Rights that are beneficially owned by (x) any Acquiring Person
(or any Affiliate or Associate of any Acquiring Person), (y) a transferee of any Acquiring Person (or of any such Affiliate or
Associate) who becomes a transferee after the Flip-In Event or (z) a transferee of any Acquiring Person (or of any such Affiliate
or Associate) who became a transferee prior to or concurrently with the Flip-In Event pursuant to either (I) a transfer (whether
or not for consideration) from the Acquiring Person to holders of its equity securities or to any Person with whom it has any continuing
agreement, arrangement or understanding (whether or not in writing) regarding the transferred Rights or (II) a transfer which
the Board of Directors of the Company has determined is part of a plan, arrangement or understanding which has the purpose or effect
of avoiding the provisions of this paragraph, and subsequent transferees, either direct transferees or transferees through one
or more intermediate transferees, of such Persons, shall be void without any further action and any holder of such Rights shall
thereafter have no rights whatsoever with respect to such Rights under any provision of this Agreement. The Company shall use all
reasonable efforts to ensure that the provisions of this Section 11(a)(ii) are complied with, but shall have no liability to any
holder of Right Certificates or other Person as a result of its failure to make any determinations with respect to an Acquiring
Person, its Affiliates or Associates or its or their transferees hereunder. From and after the Flip-In Event, no Right Certificate
shall be issued pursuant to Section 3 or Section 6 hereof that represents Rights that are or have become void pursuant to the provisions
of this paragraph, and any Right Certificate delivered to the Rights Agent that represents Rights that are or have become void
pursuant to the provisions of this paragraph shall be canceled. From and after the occurrence of an event specified in Section
13(a) hereof, any Rights that theretofore have not been exercised pursuant to this Section 11(a)(ii) shall thereafter be exercisable
only in accordance with Section 13 and not pursuant to this Section 11(a)(ii).


 




    	 	15	 



     


    

 


(iii)        The
Company may at its option substitute for a share of Common Stock issuable upon the exercise of Rights in accordance with the foregoing
subparagraph (ii) a number of shares of Preferred Stock or fraction thereof such that the current per share market price of one
share of Preferred Stock multiplied by such number or fraction is equal to the current per share market price of one share of Common
Stock. In the event that there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued
to permit the exercise in full of the Rights in accordance with the foregoing subparagraph (ii), the Board of Directors of the
Company shall, with respect to such deficiency, to the extent permitted by applicable law and any material agreements then in effect
to which the Company is a party, (A) determine the excess (such excess, the "Spread") of (1) the value of the
shares of Common Stock issuable upon the exercise of a Right in accordance with the foregoing subparagraph (ii) (the "Current
Value") over (2) the Purchase Price (as adjusted in accordance with the foregoing subparagraph (ii)), and (B) with respect
to each Right (other than Rights which have become void pursuant to the foregoing subparagraph (ii)), make adequate provision to
substitute for the shares of Common Stock issuable in accordance with the foregoing subparagraph (ii) upon exercise of the Right
and payment of the Purchase Price (as adjusted in accordance therewith), (1) cash, (2) a reduction in such Purchase Price, (3)
shares of Preferred Stock or other equity securities of the Company (including, without limitation, shares or fractions of shares
of preferred stock which, by virtue of having dividend, voting and liquidation rights substantially comparable to those of the
shares of Common Stock are determined by the Board of Directors of the Company to have substantially the same value as the shares
of Common Stock (such shares of Preferred Stock and shares or fractions of shares of preferred stock are hereinafter referred to
as "Common Stock Equivalents")), (4) debt securities of the Company, (5) other assets, or (6) any combination
of the foregoing, having a value which, when added to the value of the shares of Common Stock issued upon exercise of such Right,
shall have an aggregate value equal to the Current Value (less the amount of any reduction in such Purchase Price), where such
aggregate value has been determined by the Board of Directors of the Company; provided, however, that if the Company
shall not make adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the Flip-In Event
(the date of the Flip-In Event being the "Section 11(a)(ii) Trigger Date"), then the Company shall be obligated
to deliver, to the extent permitted by applicable law and any material agreements then in effect to which the Company is a party,
upon the surrender for exercise of a Right and without requiring payment of such Purchase Price, shares of Common Stock (to the
extent available), and then, if necessary, such number or fractions of shares of Preferred Stock (to the extent available) and
then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If, upon the occurrence of the
Flip-In Event, the Board of Directors of the Company shall determine that it is likely that sufficient additional shares of Common
Stock could be authorized for issuance upon exercise in full of the Rights, then, if the Board of Directors of the Company so elects,
the thirty (30) day period set forth above may be extended to the extent necessary, but not more than ninety (90) days after the
Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the authorization of such additional
shares (such thirty (30) day period, as it may be extended, is herein called the "Substitution Period"). To the
extent that the Company determines that some action need be taken pursuant to the second and/or third sentence of this Section
11(a)(iii), the Company (x) shall provide, subject to Section 11(a)(ii) hereof and the last sentence of this Section 11(a)(iii)
hereof, that such action shall apply uniformly to all outstanding Rights and (y) may suspend the exercisability of the Rights until
the expiration of the Substitution Period in order to seek any authorization of additional shares and/or to decide the appropriate
form of distribution to be made pursuant to such second sentence and to determine the value thereof. In the event of any such suspension,
the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as
well as a public announcement at such time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the
per share value of the shares of Common Stock shall be the current per share market price (as determined pursuant to Section 11(d)(i))
on the Section 11(a)(ii) Trigger Date and the per share or fractional value of any Common Stock Equivalent shall be deemed to equal
the current per share market price of the Common Stock. The Board of Directors of the Company may, but shall not be required to,
establish procedures to allocate the right to receive shares of Common Stock upon the exercise of the Rights among the holders
of Rights pursuant to this Section 11(a)(iii).


 




    	 	16	 



     


    

 


(b)          In
case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Preferred Stock entitling
them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Stock (or shares
having the same rights, privileges and preferences as the Preferred Stock ("Equivalent Preferred Shares")) or
securities convertible into Preferred Stock or Equivalent Preferred Shares at a price per share of Preferred Stock or Equivalent
Preferred Shares (or having a conversion price per share, if a security convertible into shares of Preferred Stock or Equivalent
Preferred Shares) less than the then current per share market price of the Preferred Stock (determined pursuant to Section 11(d)
hereof) on such record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase
Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of shares of Preferred
Stock and Equivalent Preferred Shares outstanding on such record date plus the number of shares of Preferred Stock and Equivalent
Preferred Shares which the aggregate offering price of the total number of shares of Preferred Stock and/or Equivalent Preferred
Shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase
at such current market price, and the denominator of which shall be the number of shares of Preferred Stock and Equivalent Preferred
Shares outstanding on such record date plus the number of additional shares of Preferred Stock and/or Equivalent Preferred Shares
to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible);
provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than
the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right. In case such subscription
price may be paid in consideration part or all of which shall be in a form other than cash, the value of such consideration shall
be as determined by the Board of Directors of the Company, whose determination shall be described in a statement filed with the
Rights Agent. Shares of Preferred Stock and Equivalent Preferred Shares owned by or held for the account of the Company shall not
be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record
date is fixed; and in the event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to
be the Purchase Price which would then be in effect if such record date had not been fixed.


 




    	 	17	 



     


    

 


(c)          In
case the Company shall fix a record date for the making of a distribution to all holders of the Preferred Stock (including any
such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation)
of evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend payable in Preferred Stock)
or subscription rights or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after
such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the then current per share market price of the Preferred Stock (determined pursuant to Section
11(d) hereof) on such record date, less the fair market value (as determined by the Board of Directors of the Company whose determination
shall be described in a statement filed with the Rights Agent) of the portion of the assets or evidences of indebtedness so to
be distributed or of such subscription rights or warrants applicable to one share of Preferred Stock, and the denominator of which
shall be such current per share market price (determined pursuant to Section 11(d) hereof) of the Preferred Stock; provided,
however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par
value of the shares of capital stock of the Company to be issued upon exercise of one Right. Such adjustments shall be made successively
whenever such a record date is fixed; and in the event that such distribution is not so made, the Purchase Price shall again be
adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed.


 


(d)          (i)          Except
as otherwise provided herein, for the purpose of any computation hereunder, the "current per share market price"
of any security (a "Security" for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the
average of the daily closing prices per share of such Security for the 30 consecutive Trading Days (as such term is hereinafter
defined) immediately prior to such date; provided, however, that in the event that the current per share market price
of the Security is determined during a period following the announcement by the issuer of such Security of (A) a dividend or distribution
on such Security payable in shares of such Security or securities convertible into such shares, or (B) any subdivision, combination
or reclassification of such Security, and prior to the expiration of 30 Trading Days after the ex-dividend date for such dividend
or distribution, or the record date for such subdivision, combination or reclassification, then, and in each such case, the current
per share market price shall be appropriately adjusted to reflect the current market price per share equivalent of such Security.
The closing price for each day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as reported by the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or NASDAQ or, if the Security
is not listed or admitted to trading on the New York Stock Exchange or NASDAQ, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national securities exchange on which the Security is listed
or admitted to trading or, if the Security is not listed on a national securities exchange, the last quoted price or, if not so
quoted, the average of the high and low asked prices in the over-the-counter market as reported by any system then in use, or,
if not so quoted, the average of the closing bid and asked prices as furnished by a professional market maker making a market in
the Security selected by the Board of Directors of the Company. The term "Trading Day" shall mean a day on which
the principal national securities exchange on which the Security is listed or admitted to trading is open for the transaction of
business or, if the Security is not listed or admitted to trading on any national securities exchange, a Business Day.


 




    	 	18	 



     


    

 


(ii)         For
the purpose of any computation hereunder, if the Preferred Stock is publicly traded, the "current per share market price"
of the Preferred Stock shall be determined in accordance with the method set forth in Section 11(d)(i). If the Preferred Stock
is not publicly traded but the Common Stock is publicly traded, the "current per share market price" of the Preferred
Stock shall be conclusively deemed to be the current per share market price of the Common Stock as determined pursuant to Section
11(d)(i) multiplied by the then applicable Adjustment Number (as defined in and determined in accordance with the Certificate of
Designation for the Preferred Stock). If neither the Common Stock nor the Preferred Stock is publicly traded, "current
per share market price" shall mean the fair value per share as determined by the Board of Directors of the Company, whose
determination shall be described in a statement filed with the Rights Agent.


 


(e)          No
adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1%
in the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required
to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11
shall be made to the nearest cent or to the nearest one hundred-thousandth of a share of Preferred Stock or one-hundredth of a
share of Common Stock or other share or security as the case may be. Notwithstanding the first sentence of this Section 11(e),
any adjustment required by this Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction
which requires such adjustment and (ii) the Expiration Date.


 


(f)          If
as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any Right thereafter exercised shall become entitled
to receive any shares of capital stock of the Company other than the Preferred Stock, thereafter the Purchase Price and the number
of such other shares so receivable upon exercise of a Right shall be subject to adjustment from time to time in a manner and on
terms as nearly equivalent as practicable to the provisions with respect to the Preferred Stock contained in Sections 11(a), 11(b),
11(c), 11(e), 11(h), 11(i) and 11(m) hereof, as applicable, and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect
to the Preferred Stock shall apply on like terms to any such other shares.


 




    	 	19	 



     


    

 


(g)          All
Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right
to purchase, at the adjusted Purchase Price, the number of one one-thousandths of a share of Preferred Stock purchasable from time
to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein.


 


(h)          Unless
the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price as a result
of the calculations made in Sections 11(b) and 11(c), each Right outstanding immediately prior to the making of such adjustment
shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths of a share
of Preferred Stock (calculated to the nearest one hundred-thousandth of a share of Preferred Stock) obtained by (i) multiplying
(x) the number of one one-thousandths of a share purchasable upon the exercise of a Right immediately prior to such adjustment
by (y) the Purchase Price in effect immediately prior to such adjustment and (ii) dividing the product so obtained by the Purchase
Price in effect immediately after such adjustment.


 


(i)          The
Company may elect on or after the date of any adjustment of the Purchase Price pursuant to Sections 11(b) or 11(c) hereof to adjust
the number of Rights, in substitution for any adjustment in the number of one one-thousandths of a share of Preferred Stock purchasable
upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights shall be exercisable
for the number of one one-thousandths of a share of Preferred Stock for which a Right was exercisable immediately prior to such
adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated
to the nearest one-hundredth) obtained by dividing the Purchase Price in effect immediately prior to adjustment of the Purchase
Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement
of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount
of the adjustment to be made. Such record date may be the date on which the Purchase Price is adjusted or any day thereafter, but,
if the Right Certificates have been issued, shall be at least 10 days later than the date of the public announcement. If Right
Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company may, as
promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates
evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment,
or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the
Right Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company,
new Right Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Right Certificates
to be so distributed shall be issued, executed and countersigned in the manner provided for herein and shall be registered in the
names of the holders of record of Right Certificates on the record date specified in the public announcement.


 




    	 	20	 



     


    

 


(j)          Irrespective
of any adjustment or change in the Purchase Price or the number of one one-thousandths of a share of Preferred Stock issuable upon
the exercise of a Right, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and
the number of one one-thousandths of a share of Preferred Stock which were expressed in the initial Right Certificates issued hereunder.


 


(k)          Before
taking any action that would cause an adjustment reducing the Purchase Price below the then par value, if any, of the fraction
of Preferred Stock or other shares of capital stock issuable upon exercise of a Right, the Company shall take any corporate action
which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and nonassessable
shares of Preferred Stock or other such shares at such adjusted Purchase Price.


 


(l)          In
any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date
for a specified event, the Company may elect to defer until the occurrence of such event issuing to the holder of any Right exercised
after such record date the Preferred Stock and other capital stock or securities of the Company, if any, issuable upon such exercise
over and above the Preferred Stock and other capital stock or securities of the Company, if any, issuable upon such exercise on
the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver
to such holder a due bill or other appropriate instrument evidencing such holder's right to receive such additional shares upon
the occurrence of the event requiring such adjustment.


 


(m)          Anything
in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such adjustments in the Purchase Price,
in addition to those adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion shall
determine to be advisable in order that any consolidation or subdivision of the Preferred Stock, issuance wholly for cash of any
shares of Preferred Stock at less than the current market price, issuance wholly for cash of Preferred Stock or securities which
by their terms are convertible into or exchangeable for Preferred Stock, dividends on Preferred Stock payable in shares of Preferred
Stock or issuance of rights, options or warrants referred to hereinabove in Section 11(b), hereafter made by the Company to holders
of its Preferred Stock shall not be taxable to such stockholders.


 


(n)          Anything
in this Agreement to the contrary notwithstanding, in the event that at any time after the date of this Agreement and prior to
the Distribution Date, the Company shall (i) declare and pay any dividend on the Common Stock payable in Common Stock, or (ii)
effect a subdivision, combination or consolidation of the Common Stock (by reclassification or otherwise than by payment of a dividend
payable in Common Stock) into a greater or lesser number of shares of Common Stock, then, in each such case, the number of Rights
associated with each share of Common Stock then outstanding, or issued or delivered thereafter, shall be proportionately adjusted
so that the number of Rights thereafter associated with each share of Common Stock following any such event shall equal the result
obtained by multiplying the number of Rights associated with each share of Common Stock immediately prior to such event by a fraction
the numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to the occurrence of the
event and the denominator of which shall be the total number of shares of Common Stock outstanding immediately following the occurrence
of such event.


 




    	 	21	 



     


    

 


(o)          The
Company agrees that, after the earlier of the Distribution Date or the Stock Acquisition Date, it will not, except as permitted
by Sections 23, 24 or 27 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably
foreseeable that such action will diminish substantially or eliminate the benefits intended to be afforded by the Rights.


 


Section 12. Certificate
of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 or 13 hereof, the
Company shall promptly (a) prepare a certificate setting forth such adjustment, and a brief statement of the facts accounting for
such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Stock and the Preferred Stock a copy
of such certificate and (c) mail a brief summary thereof to each holder of a Right Certificate in accordance with Section 25 hereof
(if so required under Section 25 hereof). Notwithstanding the foregoing sentence, the failure of the Company to make such certification
or give such notice shall not affect the validity of such adjustment or the force or effect of the requirement for such adjustment.
The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment therein contained and shall
not be deemed to have knowledge of any such adjustment unless and until it shall have received such certificate.


 




    	 	22	 



     


    

 


Section 13. Consolidation,
Merger or Sale or Transfer of Assets or Earning Power.


 


(a)          In
the event, directly or indirectly, at any time after the Flip-In Event (i) the Company shall consolidate with or shall merge
into any other Person, (ii) any Person shall merge with and into the Company and the Company shall be the continuing or surviving
corporation of such merger and, in connection with such merger, all or part of the Common Stock shall be changed into or exchanged
for stock or other securities of any other Person (or of the Company) or cash or any other property, or (iii) the Company shall
sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one or more transactions,
assets or earning power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a
whole) to any other Person (other than the Company or one or more wholly-owned Subsidiaries of the Company), then upon the first
occurrence of such event, proper provision shall be made so that: (A) each holder of a Right (other than Rights which have become
void pursuant to Section 11(a)(ii) hereof) shall thereafter have the right to receive, upon the exercise thereof at the Purchase
Price (as theretofore adjusted in accordance with Section 11(a)(ii) hereof), in accordance with the terms of this Agreement and
in lieu of shares of Preferred Stock or Common Stock of the Company, such number of validly authorized and issued, fully paid,
non-assessable and freely tradeable shares of Common Stock of the Principal Party (as such term is hereinafter defined), not subject
to any liens, encumbrances, rights of first refusal or other adverse claims, as shall equal the result obtained by dividing the
Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii) hereof) by 50% of the current per share market price
of the Common Stock of such Principal Party (determined pursuant to Section 11(d) hereof) on the date of consummation of such consolidation,
merger, sale or transfer; provided, however, that the Purchase Price (as theretofore adjusted in accordance with
Section 11(a)(ii) hereof) and the number of shares of Common Stock of such Principal Party so receivable upon exercise of a Right
shall be subject to further adjustment as appropriate in accordance with Section 11(f) hereof to reflect any events occurring in
respect of the Common Stock of such Principal Party after the occurrence of such consolidation, merger, sale or transfer; (B) such
Principal Party shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all
the obligations and duties of the Company pursuant to this Agreement; (C) the term "Company" shall thereafter
be deemed to refer to such Principal Party; and (D) such Principal Party shall take such steps (including, but not limited to,
the reservation of a sufficient number of its shares of Common Stock in accordance with Section 9 hereof) in connection with such
consummation of any such transaction as may be necessary to assure that the provisions hereof shall thereafter be applicable, as
nearly as reasonably may be, in relation to the shares of its Common Stock thereafter deliverable upon the exercise of the Rights;
provided that, upon the subsequent occurrence of any consolidation, merger, sale or transfer of assets or other extraordinary transaction
in respect of such Principal Party, each holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and
payment of the Purchase Price as provided in this Section 13(a), such cash, shares, rights, warrants and other property which such
holder would have been entitled to receive had such holder, at the time of such transaction, owned the Common Stock of the Principal
Party receivable upon the exercise of a Right pursuant to this Section 13(a), and such Principal Party shall take such steps (including,
but not limited to, reservation of shares of stock) as may be necessary to permit the subsequent exercise of the Rights in accordance
with the terms hereof for such cash, shares, rights, warrants and other property.


 


(b)          "Principal
Party" shall mean:


 


(i)          in
the case of any transaction described in (i) or (ii) of the first sentence of Section 13(a) hereof: (A) the Person that is the
issuer of the securities into which the shares of Common Stock are converted in such merger or consolidation, or, if there is more
than one such issuer, the issuer of the shares of Common Stock of which have the greatest aggregate market value of shares outstanding,
or (B) if no securities are so issued, (x) the Person that is the other party to the merger, if such Person survives said merger,
or, if there is more than one such Person, the Person the shares of Common Stock of which have the greatest aggregate market value
of shares outstanding or (y) if the Person that is the other party to the merger does not survive the merger, the Person that does
survive the merger (including the Company if it survives) or (z) the Person resulting from the consolidation; and


 




    	 	23	 



     


    

 


(ii)         in
the case of any transaction described in (iii) of the first sentence of Section 13(a) hereof, the Person that is the party receiving
the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions, or, if each Person
that is a party to such transaction or transactions receives the same portion of the assets or earning power so transferred or
if the Person receiving the greatest portion of the assets or earning power cannot be determined, whichever of such Persons is
the issuer of Common Stock having the greatest aggregate market value of shares outstanding;


 


provided, however, that in
any such case described in the foregoing clause (b)(i) or (b)(ii), if the Common Stock of such Person is not at such time or has
not been continuously over the preceding 12-month period registered under Section 12 of the Exchange Act, then (1) if such Person
is a direct or indirect Subsidiary of another Person the Common Stock of which is and has been so registered, the term "Principal
Party" shall refer to such other Person, or (2) if such Person is a Subsidiary, directly or indirectly, of more than one
Person, the Common Stock of all of which is and has been so registered, the term "Principal Party" shall refer
to whichever of such Persons is the issuer of Common Stock having the greatest aggregate market value of shares outstanding, or
(3) if such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned, directly
or indirectly, by the same Person, the rules set forth in clauses (1) and (2) above shall apply to each of the owners having an
interest in the venture as if the Person owned by the joint venture was a Subsidiary of both or all of such joint venturers, and
the Principal Party in each such case shall bear the obligations set forth in this Section 13 in the same ratio as its interest
in such Person bears to the total of such interests.


 


(c)          The
Company shall not consummate any consolidation, merger, sale or transfer referred to in Section 13(a) hereof unless prior thereto
the Company and the Principal Party involved therein shall have executed and delivered to the Rights Agent an agreement confirming
that the requirements of Sections 13(a) and (b) hereof shall promptly be performed in accordance with their terms and that such
consolidation, merger, sale or transfer of assets shall not result in a default by the Principal Party under this Agreement as
the same shall have been assumed by the Principal Party pursuant to Sections 13(a) and (b) hereof and providing that, as soon as
practicable after executing such agreement pursuant to this Section 13, the Principal Party will:


 


(i)          prepare
and file a registration statement under the Securities Act, if necessary, with respect to the Rights and the securities purchasable
upon exercise of the Rights on an appropriate form, use its best efforts to cause such registration statement to become effective
as soon as practicable after such filing and use its best efforts to cause such registration statement to remain effective (with
a prospectus at all times meeting the requirements of the Securities Act) until the Expiration Date and similarly comply with applicable
state securities laws;


 


(ii)         use
its best efforts, if the Common Stock of the Principal Party shall be listed or admitted to trading on the New York Stock Exchange,
NASDAQ or on another national securities exchange, to list or admit to trading (or continue the listing of) the Rights and the
securities purchasable upon exercise of the Rights on the New York Stock Exchange or such securities exchange, or, if the Common
Stock of the Principal Party shall not be listed or admitted to trading on the New York Stock Exchange, NASDAQ or a national securities
exchange, to cause the Rights and the securities receivable upon exercise of the Rights to be authorized for quotation on any other
system then in use;


 




    	 	24	 



     


    

 


(iii)        deliver
to holders of the Rights historical financial statements for the Principal Party which comply in all respects with the requirements
for registration on Form 10 (or any successor form) under the Exchange Act; and


 


(iv)        obtain
waivers of any rights of first refusal or preemptive rights in respect of the Common Stock of the Principal Party subject to purchase
upon exercise of outstanding Rights.


 


(d)          In
case the Principal Party has a provision in any of its authorized securities or in its certificate of incorporation or by-laws
or other instrument governing its affairs, which provision would have the effect of (i) causing such Principal Party to issue (other
than to holders of Rights pursuant to this Section 13), in connection with, or as a consequence of, the consummation of a transaction
referred to in this Section 13, shares of Common Stock or Common Stock Equivalents of such Principal Party at less than the then
current market price per share thereof (determined pursuant to Section 11(d) hereof) or securities exercisable for, or convertible
into, Common Stock or Common Stock Equivalents of such Principal Party at less than such then current market price, or (ii) providing
for any special payment, tax or similar provision in connection with the issuance of the Common Stock of such Principal Party pursuant
to the provisions of Section 13, then, in such event, the Company hereby agrees with each holder of Rights that it shall not consummate
any such transaction unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights
Agent a supplemental agreement providing that the provision in question of such Principal Party shall have been canceled, waived
or amended, or that the authorized securities shall be redeemed, so that the applicable provision will have no effect in connection
with, or as a consequence of, the consummation of the proposed transaction.


 


(e)          The
Company covenants and agrees that it shall not, at any time after the Flip-In Event, enter into any transaction of the type described
in clauses (i) through (iii) of Section 13(a) hereof if (i) at the time of or immediately after such consolidation, merger, sale,
transfer or other transaction there are any rights, warrants or other instruments or securities outstanding or agreements in effect
which would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights, (ii) prior to,
simultaneously with or immediately after such consolidation, merger, sale, transfer or other transaction, the stockholders of the
Person who constitutes, or would constitute, the Principal Party for purposes of Section 13(b) hereof shall have received a distribution
of Rights previously owned by such Person or any of its Affiliates or Associates or (iii) the form or nature of organization of
the Principal Party would preclude or limit the exercisability of the Rights.


 




    	 	25	 



     


    

 


(f)          Notwithstanding
anything contained herein to the contrary, in the event of any merger or other acquisition transaction involving the Company pursuant
to a merger or other acquisition agreement between the Company and any Person (or one or more of such Person's Affiliates or Associates)
which agreement has been approved by the Board of Directors prior to any Person becoming an Acquiring Person, this Agreement and
the rights of holders of Rights hereunder shall be terminated in accordance with Section 7(a).


 


Section 14. Fractional
Rights and Fractional Shares.


 


(a)          The
Company shall not be required to issue fractions of Rights (except prior to the Distribution Date in accordance with Section 11(n)
hereof) or to distribute Right Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be
paid to the registered holders of the Right Certificates with regard to which such fractional Rights would otherwise be issuable,
an amount in cash equal to the same fraction of the current market value of a whole Right. For the purposes of this Section 14(a),
the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the
date on which such fractional Rights would have been otherwise issuable. The closing price for any day shall be the last sale price,
regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in
either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted
to trading on the New York Stock Exchange or NASDAQ or, if the Rights are not listed or admitted to trading on the New York Stock
Exchange or NASDAQ, as reported in the principal consolidated transaction reporting system with respect to securities listed on
the principal national securities exchange on which the Rights are listed or admitted to trading or, if the Rights are not listed
or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market, as reported by any system then in use or, if on any such date the Rights
are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market
maker making a market in the Rights selected by the Board of Directors of the Company. If on any such date no such market maker
is making a market in the Rights, the fair value of the Rights on such date as determined by the Board of Directors of the Company
shall be used.


 


(b)          The
Company shall not be required to issue fractions of shares of Preferred Stock (other than fractions which are integral multiples
of one one-thousandth of a share of Preferred Stock) or to distribute certificates which evidence fractional shares of Preferred
Stock (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock) upon the exercise
or exchange of Rights. Interests in fractions of shares of Preferred Stock in integral multiples of one one-thousandth of a share
of Preferred Stock may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate agreement
between the Company and a depositary selected by it; provided that such agreement shall provide that the holders of such depositary
receipts shall have all the rights, privileges and preferences to which they are entitled as beneficial owners of the Preferred
Stock represented by such depositary receipts. In lieu of fractional shares of Preferred Stock that are not integral multiples
of one one-thousandth of a share of Preferred Stock, the Company shall pay to the registered holders of Right Certificates at the
time such Rights are exercised or exchanged as herein provided an amount in cash equal to the same fraction of the current market
value of a whole share of Preferred Stock (as determined in accordance with Section 14(a) hereof) for the Trading Day immediately
prior to the date of such exercise or exchange.


 




    	 	26	 



     


    

 


(c)          The
Company shall not be required to issue fractions of shares of Common Stock or to distribute certificates which evidence fractional
shares of Common Stock upon the exercise or exchange of Rights. In lieu of such fractional shares of Common Stock, the Company
shall pay to the registered holders of the Right Certificates with regard to which such fractional shares of Common Stock would
otherwise be issuable an amount in cash equal to the same fraction of the current market value of a whole share of Common Stock.
For purposes of this Section 14(c), the current market value of one share of Common Stock for which a Right is exercisable shall
be deemed to be the closing price of one share of Common Stock (as determined in accordance with Section 11(d)(i) hereof), for
the Trading Day immediately prior to the date of such exercise.


 


(d)          The
holder of a Right by the acceptance of the Right expressly waives his right to receive any fractional Rights or any fractional
shares upon exercise or exchange of a Right (except as provided above).


 


Section 15. Rights
of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under
Section 18 hereof, are vested in the respective registered holders of the Right Certificates (and, prior to the Distribution Date,
the registered holders of the Common Stock); and any registered holder of any Right Certificate (or, prior to the Distribution
Date, of the Common Stock), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior
to the Distribution Date, of the Common Stock), on his own behalf and for his own benefit, may enforce, and may institute and maintain
any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise the Rights
evidenced by such Right Certificate (or, prior to the Distribution Date, such Common Stock) in the manner provided therein and
in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled to specific
performance of the obligations under, and injunctive relief against actual or threatened violations of, the obligations of any
Person subject to this Agreement.


 


Section 16. Agreement
of Right Holders. Every holder of a Right, by accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:


 


(a)          prior
to the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common Stock;


 




    	 	27	 



     


    

 


(b)          after
the Distribution Date, the Right Certificates are transferable only on the registry books of the Rights Agent if surrendered at
the office or agency of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer;
and


 


(c)          the
Company and the Rights Agent may deem and treat the Person in whose name the Right Certificate (or, prior to the Distribution Date,
the Common Stock certificate (or Book Entry shares in respect of Common Stock)) is registered as the absolute owner thereof and
of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right Certificates or the Common
Stock certificate (or notices provided to holders of Book Entry shares of Common Stock) made by anyone other than the Company or
the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent, subject to Section 7(e) hereof, shall
be affected by any notice to the contrary.


 


Section 17. Right
Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose the holder of the Preferred Stock or any other securities of the Company which may at any
time be issuable on the exercise or exchange of the Rights represented thereby, nor shall anything contained herein or in any Right
Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the
Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders
(except as provided in this Agreement), or to receive dividends or subscription rights, or otherwise, until the Rights evidenced
by such Right Certificate shall have been exercised or exchanged in accordance with the provisions hereof.


 


Section 18. Concerning
the Rights Agent.


 


(a)          The
Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration
and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify
the Rights Agent for, and to hold it harmless against, any loss, liability or expense, incurred without gross negligence, bad faith
or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with the
acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability arising
therefrom, directly or indirectly.


 


(b)          The
Rights Agent shall be protected and shall incur no liability for, or in respect of any action taken, suffered or omitted by it
in connection with, its administration of this Agreement in reliance upon any Right Certificate or certificate representing the
Preferred Stock, the Common Stock or any other securities of the Company, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate, statement or other paper or document believed by it to
be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons, or otherwise
upon the advice of counsel as set forth in Section 20 hereof.


 




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Section 19. Merger
or Consolidation or Change of Name of Rights Agent.


 


(a)          Any
entity into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any entity
resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any entity
succeeding to the stock transfer or corporate trust powers of the Rights Agent or any successor Rights Agent, shall be the successor
to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of
the parties hereto; provided that such entity would be eligible for appointment as a successor Rights Agent under the provisions
of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any
of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature
of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Right Certificates
shall have the full force provided in the Right Certificates and in this Agreement.


 


(b)          In
case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have been countersigned
but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Right Certificates so countersigned;
and in case at that time any of the Right Certificates shall not have been countersigned, the Rights Agent may countersign such
Right Certificates either in its prior name or in its changed name and in all such cases such Right Certificates shall have the
full force provided in the Right Certificates and in this Agreement.


 


Section 20. Duties
of Rights Agent. The Rights Agent undertakes the duties and obligations expressly set forth in this Agreement and no implied
duties or obligations shall be read into this Agreement against the Rights Agent. The Rights Agent shall perform those duties and
obligations upon the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their
acceptance thereof, shall be bound:


 


(a)          The
Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel shall be
full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in
accordance with such opinion.


 




    	 	29	 



     


    

 


(b)          Whenever
in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter
be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence
in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate
signed by the President, the Chief Executive Officer, the Chief Financial Officer, the Treasurer or the Secretary of the Company
and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights Agent for any action taken or
suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate.


 


(c)          The
Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct.


 


(d)          The
Rights Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in
the Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals
are and shall be deemed to have been made by the Company only.


 


(e)          The
Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except
its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained
in this Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including
the Rights becoming void pursuant to Section 11(a)(ii) hereof) or any adjustment in the terms of the Rights provided for in Sections
3, 11, 13, 23 and 24, or the ascertaining of the existence of facts that would require any such change or adjustment (except with
respect to the exercise of Rights evidenced by Right Certificates after receipt of a certificate furnished pursuant to Section
12, describing such change or adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as
to the authorization or reservation of any shares of Preferred Stock or other securities to be issued pursuant to this Agreement
or any Right Certificate or as to whether any shares of Preferred Stock or other securities will, when issued, be validly authorized
and issued, fully paid and nonassessable.


 


(f)          The
Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered
all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying
out or performing by the Rights Agent of the provisions of this Agreement.


 




    	 	30	 



     


    

 


(g)          The
Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from
any person reasonably believed by the Rights Agent to be one of the President, the Chief Executive Officer, the Chief Financial
Officer, the Treasurer or the Secretary of the Company, and to apply to such officers for advice or instructions in connection
with its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with instructions
of any such officer or for any delay in acting while waiting for those instructions. Any application by the Rights Agent for written
instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted
by the Rights Agent under this Agreement and the date on and/or after which such action shall be taken or such omission shall be
effective. The Rights Agent shall not be liable for any action taken by, or omission of, the Rights Agent in accordance with a
proposal included in any such application on or after the date specified in such application (which date shall not be less than
five Business Days after the date any officer of the Company actually receives such application unless any such officer shall have
consented in writing to an earlier date) unless, prior to taking any such action (or the effective date in the case of an omission),
the Rights Agent shall have received written instructions in response to such application specifying the action to be taken or
omitted.


 


(h)          The
Rights Agent and any stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights
or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested,
or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this
Agreement. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other legal
entity.


 


(i)          The
Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself
or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect
or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct,
provided reasonable care was exercised in the selection and continued employment thereof.


 


(j)          If,
with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the certificate contained in the
form of assignment or the form of election to purchase set forth on the reverse thereof, as the case may be, has not been completed
to certify the holder is not an Acquiring Person (or an Affiliate or Associate thereof) or a transferee thereof, the Rights Agent
shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company.


 




    	 	31	 



     


    

 


Section 21. Change
of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Agreement
upon 30 days' notice in writing mailed to the Company and to each transfer agent of the Common Stock or Preferred Stock by registered
or certified mail, and, following the Distribution Date, to the holders of the Right Certificates by first-class mail. The Company
may remove the Rights Agent or any successor Rights Agent upon 30 days' notice in writing, mailed to the Rights Agent or successor
Rights Agent, as the case may be, and to each transfer agent of the Common Stock or Preferred Stock by registered or certified
mail, and, following the Distribution Date, to the holders of the Right Certificates by first-class mail. If the Rights Agent shall
resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent.
If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it has
been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a
Right Certificate (who shall, with such notice, submit his Right Certificate for inspection by the Company), then the registered
holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any
successor Rights Agent, whether appointed by the Company or by such a court, shall be a corporation organized and doing business
under the laws of the United States or the laws of any state of the United States or the District of Columbia, in good standing,
having an office in the State of Delaware or the State of New York, which is authorized under such laws to exercise corporate trust
or stock transfer powers and is subject to supervision or examination by federal or state authority and which has at the time of
its appointment as Rights Agent a combined capital and surplus of at least $100 million. After appointment, the successor Rights
Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent
without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property
at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose.
Not later than the effective date of any such appointment the Company shall file notice thereof in writing with the predecessor
Rights Agent and each transfer agent of the Common Stock or Preferred Stock, and, following the Distribution Date, mail a notice
thereof in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section
21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent
or the appointment of the successor Rights Agent, as the case may be.


 


Section 22. Issuance
of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company
may, at its option, issue new Right Certificates evidencing Rights in such forms as may be approved by its Board of Directors to
reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property
purchasable under the Right Certificates made in accordance with the provisions of this Agreement. In addition, in connection with
the issuance or sale of Common Stock following the Distribution Date and prior to the Expiration Date, the Company may with respect
to shares of Common Stock so issued or sold (i) pursuant to the exercise of stock options, (ii) under any employee plan or arrangement,
(iii) upon the exercise, conversion or exchange of securities, notes or debentures issued by the Company or (iv) pursuant to a
contractual obligation of the Company, in each case existing prior to the Distribution Date, issue Rights Certificates representing
the appropriate number of Rights in connection with such issuance or sale.


 




    	 	32	 



     


    

 


Section 23. Redemption.


 


(a)          The
Board of Directors of the Company may, at any time prior to the Flip-In Event, redeem all but not less than all the then outstanding
Rights at a redemption price of $0.001 per Right, appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring in respect of the Common Stock after the date hereof (the redemption price being hereinafter referred to
as the "Redemption Price"). The redemption of the Rights may be made effective at such time, on such basis and
with such conditions as the Board of Directors of the Company in its sole discretion may establish. The Redemption Price shall
be payable, at the option of the Company, in cash, shares of Common Stock or such other form of consideration as the Board of Directors
of the Company shall determine.


 


(b)          Immediately
upon the action of the Board of Directors of the Company ordering the redemption of the Rights pursuant to paragraph (a) of this
Section 23 (or at such later time as the Board of Directors of the Company may establish for the effectiveness of such redemption),
and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter
of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such redemption;
provided, however, that the failure to give, or any defect in, any such notice shall not affect the validity of such
redemption. Within 10 days after such action of the Board of Directors of the Company ordering the redemption of the Rights (or
such later time as the Board of Directors of the Company may establish for the effectiveness of such redemption), the Company shall
mail a notice of redemption to all the holders of the then outstanding Rights at their last addresses as they appear upon the registry
books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Stock.
Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice.
Each such notice of redemption shall state the method by which the payment of the Redemption Price will be made.


 




    	 	33	 



     


    

 


Section 24. Exchange.


 


(a)          The
Board of Directors of the Company may, at its option, at any time after the Flip-In Event, exchange all or part of the then outstanding
Rights (which shall not include Rights that have become void pursuant to the provisions of Section 11(a)(ii) hereof) for shares
of Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring in respect of the Common Stock, after the date hereof (such amount per Right being
hereinafter referred to as the "Exchange Ratio"). Notwithstanding the foregoing, the Board of Directors of the
Company shall not be empowered to effect such exchange at any time after an Acquiring Person shall have become the Beneficial Owner
of 50% or more of the shares of the Common Stock then outstanding. From and after the occurrence of an event specified in Section
13(a) hereof, any Rights that theretofore have not been exchanged pursuant to this Section 24(a) shall thereafter be exercisable
only in accordance with Section 13 and may not be exchanged pursuant to this Section 24(a). The exchange of the Rights by the Board
of Directors of the Company may be made effective at such time, on such basis and with such conditions as the Board of Directors
of the Company in its sole discretion may establish. Prior to effecting an exchange pursuant to this Section 24, the Board of Directors
of the Company may direct the Company to enter into a Trust Agreement in such form and with such terms as the Board of Directors
of the Company shall then approve (the "Trust Agreement"). If the Board of Directors of the Company so directs,
the Company shall enter into the Trust Agreement and shall issue to the trust created by such agreement (the "Trust")
all of the shares of Common Stock issuable pursuant to the exchange, and all Persons entitled to receive shares pursuant to the
exchange shall be entitled to receive such shares (and any dividends or distributions made thereon after the date on which such
shares are deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the
Trust Agreement.


 


(b)          Immediately
upon the effectiveness of the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant to paragraph
(a) of this Section 24 and without any further action and without any notice, the right to exercise such Rights shall terminate
and the only right thereafter of a holder of such Rights shall be to receive that number of shares of Common Stock equal to the
number of such Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any
such exchange; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity
of such exchange. The Company shall promptly mail a notice of any such exchange to all of the holders of the Rights so exchanged
at their last addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein
provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method
by which the exchange of the shares of Common Stock for Rights will be effected and, in the event of any partial exchange, the
number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other
than Rights which have become void pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder of Rights.


 


(c)          The
Company may at its option substitute, and, in the event that there shall not be sufficient shares of Common Stock issued but not
outstanding or authorized but unissued to permit an exchange of Rights for Common Stock as contemplated in accordance with this
Section 24, the Company shall substitute to the extent of such insufficiency, for each share of Common Stock that would otherwise
be issuable upon exchange of a Right, a number of shares of Preferred Stock or fraction thereof (or Equivalent Preferred Shares,
as such term is defined in Section 11(b)) such that the current per share market price (determined pursuant to Section 11(d) hereof)
of one share of Preferred Stock (or Equivalent Preferred Share) multiplied by such number or fraction is equal to the current per
share market price of one share of Common Stock (determined pursuant to Section 11(d) hereof) as of the date of such exchange.


 




    	 	34	 



     


    

 


Section 25. Notice
of Certain Events.


 


(a)          In
case the Company shall at any time after the earlier of the Distribution Date or the Stock Acquisition Date propose (i) to pay
any dividend payable in stock of any class to the holders of its Preferred Stock or to make any other distribution to the holders
of its Preferred Stock (other than a regular quarterly cash dividend), (ii) to offer to the holders of its Preferred Stock rights
or warrants to subscribe for or to purchase any additional shares of Preferred Stock or shares of stock of any class or any other
securities, rights or options, (iii) to effect any reclassification of its Preferred Stock (other than a reclassification involving
only the subdivision or combination of outstanding Preferred Stock), (iv) to effect the liquidation, dissolution or winding up
of the Company, or (v) to pay any dividend on the Common Stock payable in Common Stock or to effect a subdivision, combination
or consolidation of the Common Stock (by reclassification or otherwise than by payment of dividends in Common Stock), then, in
each such case, the Company shall give to each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of
such proposed action, which shall specify the record date for the purposes of such dividend or distribution or offering of rights
or warrants, or the date on which such liquidation, dissolution, winding up, reclassification, subdivision, combination or consolidation
is to take place and the date of participation therein by the holders of the Common Stock and/or Preferred Stock, if any such date
is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least 10 days
prior to the record date for determining holders of the Preferred Stock for purposes of such action, and in the case of any such
other action, at least 10 days prior to the date of the taking of such proposed action or the date of participation therein by
the holders of the Common Stock and/or Preferred Stock, whichever shall be the earlier. The failure to give notice required by
this Section 25 or any defect therein shall not affect the legality or validity of the action taken by the Company or the vote
upon any such action.


 


(b)          In
case any event described in Section 11(a)(ii) or Section 13 shall occur then the Company shall as soon as practicable thereafter
give to each holder of a Right Certificate (or if occurring prior to the Distribution Date, the holders of the Common Stock) in
accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe such event and the consequences
of such event to holders of Rights under Section 11(a)(ii) and Section 13 hereof, and all references in the preceding paragraph
to Preferred Stock shall be deemed thereafter to refer to Common Stock and/or, if appropriate, other securities.


 


Section 26. Notices.
Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Right Certificate
to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Rights Agent) as follows:


 




    	 	35	 



     


    

 


Lipocine Inc.


675 Arapeen Drive, Suite 202


Salt Lake City, Utah 84108


Attention: Chief Executive
Officer


 


Subject to the provisions of Section 21
hereof, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Right Certificate
to or on the Rights Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Company) as follows:


 


American Stock Transfer & Trust Company, LLC


6201 15th Avenue


Brooklyn, New York 11219


Attention: Relationship Management


 


Notices or demands authorized by this Agreement
to be given or made by the Company or the Rights Agent to the holder of any Right Certificate shall be sufficiently given or made
if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books
of the Company.


 


Section 27. Supplements
and Amendments. Except as provided in the penultimate sentence of this Section 27, for so long as the Rights are then redeemable,
the Company may in its sole and absolute discretion, and the Rights Agent shall if the Company so directs, supplement or amend
any provision of this Agreement in any respect without the approval of any holders of the Rights. At any time when the Rights are
no longer redeemable, except as provided in the penultimate sentence of this Section 27, the Company may, and the Rights Agent
shall, if the Company so directs, supplement or amend this Agreement without the approval of any holders of Rights, provided
that no such supplement or amendment may (a) adversely affect the interests of the holders of Rights as such (other than an Acquiring
Person or an Affiliate or Associate of an Acquiring Person), (b) cause this Agreement again to become amendable other than in accordance
with this sentence or (c) cause the Rights again to become redeemable. Notwithstanding anything contained in this Agreement to
the contrary, no supplement or amendment shall be made which changes the Redemption Price. Upon the delivery of a certificate from
an appropriate officer of the Company which states that the supplement or amendment is in compliance with the terms of this Section
27, the Rights Agent shall execute such supplement or amendment, provided that any supplement or amendment that does not amend
Sections 18, 19, 20 or 21 hereof or this Section 27 in a manner adverse to the Rights Agent shall become effective immediately
upon execution by the Company, whether or not also executed by the Rights Agent.


 




    	 	36	 



     


    

 


Section 28. Successors.
All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure
to the benefit of their respective successors and assigns hereunder.


 


Section 29. Benefits
of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent
and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Stock) any legal or equitable
right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the
Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Stock).


 


Section 30. Determinations
and Actions by the Board of Directors. The Board of Directors of the Company shall have the exclusive power and authority to
administer this Agreement and to exercise the rights and powers specifically granted to the Board of Directors of the Company or
to the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the
right and power to (i) interpret the provisions of this Agreement and (ii) make all determinations deemed necessary or advisable
for the administration of this Agreement (including, without limitation, a determination to redeem or not redeem the Rights or
to amend or not amend this Agreement). All such actions, calculations, interpretations and determinations that are done or made
by the Board of Directors of the Company in good faith shall be final, conclusive and binding on the Company, the Rights Agent,
the holders of the Rights, as such, and all other parties.


 


Section 31. Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority
to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall
remain in full force and effect and shall in no way be affected, impaired or invalidated.


 


Section 32. Governing
Law. This Agreement and each Right Certificate issued hereunder shall be deemed to be a contract made under the laws of the
State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable
to contracts to be made and performed entirely within such State.


 


Section 33. Counterparts.
This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and the same instrument.


 


Section 34. Descriptive
Headings. Descriptive headings of the several Sections of this Agreement are inserted for convenience only and shall not control
or affect the meaning or construction of any of the provisions hereof.


 




    	 	37	 



     


    

 


IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed, all as of the day and year first above written.


 


	 	LIPOCINE INC.
	 	 
	 	By:	 
	 	Name:  Mahesh V. Patel
	 	Title:  President and Chief Executive Officer
	 	 
	 	AMERICAN STOCK TRANSFER & TRUST COMPANY LLC
	 	as Rights Agent
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:


 




    	 	38	 



     


    

 


Exhibit A


 


FORM
OF


 


CERTIFICATE
OF DESIGNATION


 


of


 


SERIES
A JUNIOR PARTICIPATING PREFERRED STOCK


 


of


 


LIPOCINE
INC.


 


Pursuant
to Section 151 of the General Corporation


Law
of the State of Delaware


 


Lipocine Inc., a corporation
organized and existing under the laws of the State of Delaware (the "Corporation"), in accordance with the provisions
of Section 103 thereof, DOES HEREBY CERTIFY:


 


That pursuant to the
authority vested in the Board of Directors of the Corporation (the "Board of Directors") in accordance with the
provisions of the Amended and Restated Certificate of Incorporation of the said Corporation (the "Certificate of Incorporation"),
the said Board of Directors on November 12, 2015 adopted the following resolution
creating a series of 50,000 shares of Preferred Stock designated as "Series A Junior Participating Preferred Stock":


 


RESOLVED, that pursuant to the
authority granted to and vested in the Directors in accordance with the provisions of the Certificate of Incorporation, as amended,
the Board of Directors hereby create a series of Preferred Stock, par value $0.0001 per share, of the Corporation, and hereby states
the designation and number of shares, and fix the relative rights, preferences and limitations thereof, in addition to the provisions
set forth in the Certificate of Incorporation, as amended, which are applicable to the Preferred Stock of all classes and series,
as set forth as follows:


 




    	 	A-1	 



     


    

 


Series A Junior Participating Preferred
Stock


 





1.          Designation
and Amount. There shall be a series of Preferred Stock that shall be designated as "Series A Junior Participating
Preferred Stock," and the number of shares constituting such series shall be 50,000. Such number of shares may
be increased or decreased by resolution of the Board of Directors; provided, however, that no decrease shall reduce the number
of shares of Series A Junior Participating Preferred Stock to less than the number of shares then issued and outstanding plus
the number of shares issuable upon exercise of outstanding rights, options or warrants or upon conversion of outstanding securities
issued by the Corporation.


 










2.          Dividends
and Distributions.


 


(A)         Subject
to the prior and superior rights of the holders of any shares of any class or series of stock of the Corporation ranking prior
and superior to the shares of Series A Junior Participating Preferred Stock with respect to dividends, the holders of shares of
Series A Junior Participating Preferred Stock, in preference to the holders of shares of any class or series of stock of the Corporation
ranking junior to the Series A Junior Participating Preferred Stock in respect thereof, shall be entitled to receive, when, as
and if declared by the Board of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on
each of March 31, June 30, September 31 and December 31, in each year (each such date being referred to herein as a "Quarterly
Dividend Payment Date"), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or
fraction of a share of Series A Junior Participating Preferred Stock, in an amount per share (rounded to the nearest cent) equal
to the greater of (a) $10.00 and (b) the sum of (1) the Adjustment Number (as defined below) times the aggregate per share amount
of all cash dividends, plus (2) the Adjustment Number times the aggregate per share amount (payable in kind) of all non-cash dividends
or other distributions other than a dividend payable in shares of Common Stock, par value $0.0001 per share, of the Corporation
(the "Common Stock"), or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise),
in each case declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to
the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Junior Participating
Preferred Stock. The "Adjustment Number" shall initially be 1,000. In the event the Corporation shall at any time
after November __, 20151 (i) declare and pay any dividend on Common Stock
payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock or (iii) combine the outstanding Common Stock into
a smaller number of shares, then in each such case the Adjustment Number in effect immediately prior to such event shall be adjusted
by multiplying such Adjustment Number by a fraction the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.


 


 






 


1 To be the date of filing the Certificate
of Designation with the Secretary of State of the State of Delaware.


 




    	 	A-2	 



     


    

 


(B)         The
Corporation shall declare a dividend or distribution on the Series A Junior Participating Preferred Stock as provided in paragraph
(A) above immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares
of Common Stock).


 


(C)         Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A Junior Participating Preferred Stock from the Quarterly
Dividend Payment Date next preceding the date of issue of such shares of Series A Junior Participating Preferred Stock, unless
the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date; in which case dividends
on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend
Payment Date or is a date after the record date for the determination of holders of shares of Series A Junior Participating Preferred
Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such
dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall
not bear interest. Dividends paid on the shares of Series A Junior Participating Preferred Stock in an amount less than the total
amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among
all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares
of Series A Junior Participating Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which
record date shall be no more than 60 days prior to the date fixed for the payment thereof.


 


3.          Voting
Rights. The holders of shares of Series A Junior Participating Preferred Stock shall have the following voting rights:


 


(A)         Each
share of Series A Junior Participating Preferred Stock shall entitle the holder thereof to a number of votes equal to the Adjustment
Number on all matters submitted to a vote of the stockholders of the Corporation.


 


(B)         Except
as required by law, by Section 3(C) and by Section 10 hereof, holders of Series A Junior Participating Preferred Stock shall have
no special voting rights and their consent shall not be required (except to the extent they are entitled to vote with holders of
Common Stock as set forth herein) for taking any corporate action.


 




    	 	A-3	 



     


    

 


(C)         If,
at the time of any annual meeting of stockholders for the election of directors, the equivalent of six quarterly dividends (whether
or not consecutive) payable on any share or shares of Series A Junior Participating Preferred Stock are in default, the number
of directors constituting the Board of Directors shall be increased by two. In addition to voting together with the holders of
Common Stock for the election of other directors of the Corporation, the holders of record of the Series A Junior Participating
Preferred Stock, voting separately as a class to the exclusion of the holders of Common Stock, shall be entitled at said meeting
of stockholders (and at each subsequent annual meeting of stockholders), unless all dividends in arrears on the Series A Junior
Participating Preferred Stock have been paid or declared and set apart for payment prior thereto, to vote for the election of two
directors of the Corporation, the holders of any Series A Junior Participating Preferred Stock being entitled to cast a number
of votes per share of Series A Junior Participating Preferred Stock as is specified in paragraph (A) of this Section 3. Each such
additional director shall serve until the next annual meeting of stockholders for the election of directors, or until his successor
shall be elected and shall qualify, or until his right to hold such office terminates pursuant to the provisions of this Section
3(C). Until the default in payments of all dividends which permitted the election of said directors shall cease to exist, any director
who shall have been so elected pursuant to the provisions of this Section 3(C) may be removed at any time, without cause, only
by the affirmative vote of the holders of the shares of Series A Junior Participating Preferred Stock at the time entitled to cast
a majority of the votes entitled to be cast for the election of any such director at a special meeting of such holders called for
that purpose, and any vacancy thereby created may be filled by the vote of such holders. If and when such default shall cease to
exist, the holders of the Series A Junior Participating Preferred Stock shall be divested of the foregoing special voting rights,
subject to revesting in the event of each and every subsequent like default in payments of dividends. Upon the termination of the
foregoing special voting rights, the terms of office of all persons who may have been elected directors pursuant to said special
voting rights shall forthwith terminate, and the number of directors constituting the Board of Directors shall be reduced by two.
The voting rights granted by this Section 3(C) shall be in addition to any other voting rights granted to the holders of the Series
A Junior Participating Preferred Stock in this Section 3.


 


4.          Certain
Restrictions.


 


(A)         Whenever
quarterly dividends or other dividends or distributions payable on the Series A Junior Participating Preferred Stock as provided
in Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared,
on shares of Series A Junior Participating Preferred Stock outstanding shall have been paid in full, the Corporation shall not:


 


(i)          declare
or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of
stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Junior Participating
Preferred Stock other than (A) such redemptions or purchases that may be deemed to occur upon the exercise of stock options, warrants
or similar rights or grant, vesting or lapse of restrictions on the grant of any other performance shares, restricted stock, restricted
stock units or other equity awards to the extent that such shares represent all or a portion of (x) the exercise or purchase price
of such options, warrants or similar rights or other equity awards and (y) the amount of withholding taxes owed by the recipient
of such award in respect of such grant, exercise, vesting or lapse of restrictions; (B) the repurchase, redemption, or other acquisition
or retirement for value of any such shares from employees, former employees, directors, former directors, consultants or former
consultants of the Corporation or their respective estate, spouse, former spouse or family member, pursuant to the terms of the
agreements pursuant to which such shares were acquired;


 




    	 	A-4	 



     


    

 


(ii)         declare
or pay dividends on or make any other distributions on any shares of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Junior Participating Preferred Stock, except dividends paid ratably on
the Series A Junior Participating Preferred Stock and all such parity stock on which dividends are payable or in arrears in proportion
to the total amounts to which the holders of all such shares are then entitled; or


 


(iii)        purchase
or otherwise acquire for consideration any shares of Series A Junior Participating Preferred Stock, or any shares of stock ranking
on a parity with the Series A Junior Participating Preferred Stock, except in accordance with a purchase offer made in writing
or by publication (as determined by the Board of Directors) to all holders of Series A Junior Participating Preferred Stock, or
to such holders and holders of any such shares ranking on a parity therewith, upon such terms as the Board of Directors, after
consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes,
shall determine will result in fair and equitable treatment among the respective series or classes.


 


(B)         The
Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of
stock of the Corporation unless the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such
shares at such time and in such manner.


 


5.          Reacquired
Shares. Any shares of Series A Junior Participating Preferred Stock purchased or otherwise acquired by the Corporation in any
manner whatsoever shall be retired promptly after the acquisition thereof. All such shares shall upon their retirement become authorized
but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock to be created by resolution
or resolutions of the Board of Directors, subject to any conditions and restrictions on issuance set forth herein.


 


6.          Liquidation,
Dissolution or Winding Up. (A) Upon any liquidation, dissolution or winding up of the Corporation, voluntary or otherwise,
no distribution shall be made to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution
or winding up) to the Series A Junior Participating Preferred Stock unless, prior thereto, the holders of shares of Series A Junior
Participating Preferred Stock shall have received an amount per share (the "Series A Liquidation Preference")
equal to the greater of (i) $1,000 plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not
declared, to the date of such payment, and (ii) the Adjustment Number times the per share amount of all cash and other property
to be distributed in respect of the Common Stock upon such liquidation, dissolution or winding up of the Corporation.


 


(B)         In
the event, however, that there are not sufficient assets available to permit payment in full of the Series A Liquidation Preference
and the liquidation preferences of all other classes and series of stock of the Corporation, if any, that rank on a parity with
the Series A Junior Participating Preferred Stock in respect thereof, then the assets available for such distribution shall be
distributed ratably to the holders of the Series A Junior Participating Preferred Stock and the holders of such parity shares in
proportion to their respective liquidation preferences.


 




    	 	A-5	 



     


    

 


(C)         Neither
the merger or consolidation of the Corporation into or with another entity nor the merger or consolidation of any other entity
into or with the Corporation shall be deemed to be a liquidation, dissolution or winding up of the Corporation within the meaning
of this Section 6.


 


7.          Consolidation,
Merger, Etc. In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which
the outstanding shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property,
then in any such case each share of Series A Junior Participating Preferred Stock shall at the same time be similarly exchanged
or changed in an amount per share equal to the Adjustment Number times the aggregate amount of stock, securities, cash and/or any
other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged.


 


8.          No
Redemption. Shares of Series A Junior Participating Preferred Stock shall not be subject to redemption by the Corporation.


 


9.          Ranking.
The Series A Junior Participating Preferred Stock shall rank junior to all other series of Preferred Stock as to the payment
of dividends and as to the distribution of assets upon liquidation, dissolution or winding up, unless the terms of any such series
shall provide otherwise, and shall rank senior to the Common Stock as to such matters.


 


10.         Amendment.
At any time that any shares of Series A Junior Participating Preferred Stock are outstanding, the Certificate of Incorporation
of the Corporation shall not be amended, by merger, consolidation or otherwise, which would materially alter or change the powers,
preferences or special rights of the Series A Junior Participating Preferred Stock so as to affect them adversely without the affirmative
vote of the holders of two-thirds of the outstanding shares of Series A Junior Participating Preferred Stock, voting separately
as a class.


 


11.         Fractional
Shares. Series A Junior Participating Preferred Stock may be issued in fractions of a share that shall entitle the holder,
in proportion to such holder's fractional shares, to exercise voting rights, receive dividends, participate in distributions and
to have the benefit of all other rights of holders of Series A Junior Participating Preferred Stock.


 




    	 	A-6	 



     


    

 


IN WITNESS WHEREOF, the
undersigned has executed this Certificate this __ day of November, 2015.


 


	 	LIPOCINE INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:


 




    	 	A-7	 



     


    

 


Exhibit B


 


Form of Right Certificate


 


Certificate No. R-______


 


NOT EXERCISABLE AFTER NOVEMBER
__, 2018 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.001 PER RIGHT AND TO EXCHANGE
ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED
BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES
THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.


 


RIGHT CERTIFICATE


 


LIPOCINE INC.


 


This certifies that ____________________________
or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Rights Agreement, dated as of November 13, 2015, as the same may be amended
from time to time (the "Rights Agreement"), between Lipocine Inc., a Delaware corporation (the "Company"),
and American Stock Transfer & Trust Company LLC, as Rights Agent (the "Rights Agent"), to purchase from the
Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 P.M., New York
City time, on November 12, 2018 at the office or agency of the Rights Agent designated for such purpose, or of its successor as
Rights Agent, one one-thousandth of a fully paid non-assessable share of Series A Junior Participating Preferred Stock, par value
$0.0001 per share (the "Preferred Stock"), of the Company at a purchase price of $63.96 per one one-thousandth
of a share of Preferred Stock (the "Purchase Price"), upon presentation and surrender of this Right Certificate
with the Form of Election to Purchase duly executed. The number of Rights evidenced by this Rights Certificate (and the number
of one one-thousandths of a share of Preferred Stock which may be purchased upon exercise hereof) set forth above, and the Purchase
Price set forth above, are the number and Purchase Price as of November __, 2015, based on the Preferred Stock as constituted at
such date. As provided in the Rights Agreement, the Purchase Price, the number of one one-thousandths of a share of Preferred Stock
(or other securities or property) which may be purchased upon the exercise of the Rights and the number of Rights evidenced by
this Right Certificate are subject to modification and adjustment upon the happening of certain events.


 




    	 	B-1	 



     


    

 


This Right Certificate
is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description
of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders
of the Right Certificates. Copies of the Rights Agreement are on file at the principal executive offices of the Company and the
above-mentioned office or agency of the Rights Agent. The Company will mail to the holder of this Right Certificate a copy of the
Rights Agreement without charge after receipt of a written request therefor.


 


This Right Certificate,
with or without other Right Certificates, upon surrender at the office or agency of the Rights Agent designated for such purpose,
may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder
to purchase a like aggregate number of shares of Preferred Stock as the Rights evidenced by the Right Certificate or Right Certificates
surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall
be entitled to receive upon surrender hereof another Right Certificate or Right Certificates for the number of whole Rights not
exercised.


 


Subject to the provisions
of the Rights Agreement, the Rights evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of $0.001
per Right or (ii) may be exchanged in whole or in part for shares of the Company's Common Stock, par value $0.0001 per share, or
shares of Preferred Stock.


 


No fractional shares
of Preferred Stock or Common Stock will be issued upon the exercise or exchange of any Right or Rights evidenced hereby (other
than fractions of Preferred Stock which are integral multiples of one one-thousandth of a share of Preferred Stock, which may,
at the election of the Company, be evidenced by depository receipts), but in lieu thereof a cash payment will be made, as provided
in the Rights Agreement.


 


No holder of this Right
Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Stock
or of any other securities of the Company which may at any time be issuable on the exercise or exchange hereof, nor shall anything
contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder
of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders
(except as provided in the Rights Agreement) or to receive dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by this Right Certificate shall have been exercised or exchanged as provided in the Rights Agreement.


 




    	 	B-2	 



     


    

 


This Right Certificate
shall not be valid or obligatory for any purpose until it shall have been countersigned by the Rights Agent.


 


WITNESS the facsimile
signature of the proper officers of the Company and its corporate seal. Dated as of November __, 2015.


 


	 	LIPOCINE INC.
	 	 
	 	By:	 
	 	Name:
	 	Title:


 


ATTEST:


 


	 	 
	Name:	 
	Title:	 


 


Countersigned:


 


AMERICAN STOCK TRANSFER & TRUST COMPANY LLC, as Rights Agent


 


	By	 	 
	Name:	 
	Title:	 


 




    	 	B-3	 



     


    

 


Form of Reverse Side of Right Certificate


 


FORM OF ASSIGNMENT


 


(To be executed by the registered holder
if such


holder desires to transfer the Right Certificate)


 


FOR VALUE RECEIVED
__________________________ hereby sells, assigns and transfers unto ____________________________________________________________________________________________


 


(Please print name and
address of transferee)


 


_______ Rights represented by this Right
Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint ______________________________
Attorney, to transfer said Rights on the books of the within-named Company, with full power of substitution.


 


Dated: ____________________________


 


	 	 
	 	Signature


 


Signature Guaranteed:


 


Signatures must be guaranteed
by a bank, trust company, broker, dealer or other eligible institution participating in a recognized signature guarantee medallion
program.


 


	 	 	 
	 	(To be completed)	 


 


The undersigned hereby
certifies that the Rights evidenced by this Right Certificate are not beneficially owned by, were not acquired by the undersigned
from, and are not being assigned to an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement).


 


	 	 
	 	Signature


 




    	 	B-4	 



     


    

 


Form of Reverse Side of Right Certificate
- continued


 


FORM OF ELECTION TO PURCHASE


 


(To be executed if holder desires to exercise


Rights represented by the Rights Certificate)


 


To Lipocine Inc.:


 


The undersigned hereby
irrevocably elects to exercise ________ Rights represented by this Right Certificate to purchase the shares of Preferred Stock
(or other securities or property) issuable upon the exercise of such Rights and requests that certificates for such shares of Preferred
Stock (or such other securities) be issued in the name of:


 


	 	 	 
	 	 (Please print name and address)	 
	 	 	 
	 	 	 


 


If such number of Rights shall not be all
the Rights evidenced by this Right Certificate, a new Right Certificate for the balance remaining of such Rights shall be registered
in the name of and delivered to:


 


Please insert social security


or other identifying number


 





	 	 	 
	 	 (Please print name and address)	 
	 	 	 
	 	 	 


  


Dated:________________________


 


	 	 
	 	Signature


 


(Signature must conform to holder specified
on Right Certificate)


 


Signature Guaranteed:


 


Signature must be guaranteed
by a bank, trust company, broker, dealer or other eligible institution participating in a recognized signature guarantee medallion
program.


 




    	 	B-5	 



     


    

 


Form of Reverse Side of Right Certificate
- continued


 


	 	 	 
	 	 (To be completed)	 


 


The undersigned certifies
that the Rights evidenced by this Right Certificate are not beneficially owned by, and were not acquired by the undersigned from,
an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement).


 


	 	 
	 	Signature


 


	 


 


NOTICE


 


The signature in the
Form of Assignment or Form of Election to Purchase, as the case may be, must conform to the name as written upon the face of this
Right Certificate in every particular, without alteration or enlargement or any change whatsoever.


 


In the event the certification
set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, such Assignment
or Election to Purchase will not be honored.


 




    	 	B-6	 



     


    

 


Exhibit C


 


UNDER CERTAIN CIRCUMSTANCES, AS
SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED
IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.


 


SUMMARY OF RIGHTS TO PURCHASE


SHARES OF PREFERRED STOCK OF


LIPOCINE INC.


 


On November 12, 2015,
the Board of Directors of Lipocine Inc. (the "Company") declared a dividend of one preferred share purchase right
(a "Right") for each outstanding share of common stock, par value $0.0001 per share, of the Company (the "Common
Stock"). The dividend is payable on November 30, 2015 (the "Record Date") to the stockholders of record
on that date. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A
Junior Participating Preferred Stock, par value $0.0001 per share, of the Company (the "Preferred Stock") at a
price of $63.96 per one one-thousandth of a share of Preferred Stock (the "Purchase Price"), subject to adjustment.
The description and terms of the Rights are set forth in a Rights Agreement dated as of November 13, 2015, as the same may be amended
from time to time (the "Rights Agreement"), between the Company and American Stock Transfer and Trust Company
LLC, as Rights Agent (the "Rights Agent").


 


Until the earlier to
occur of (i) 10 business days following a public announcement that a person or group of affiliated or associated persons (with
certain exceptions, an "Acquiring Person") has acquired beneficial ownership of 15% or more of the outstanding
shares of Common Stock or (ii) 10 business days (or such later date as may be determined by action of the Board of Directors of
the Company prior to such time as any person or group of affiliated persons becomes an Acquiring Person) following the commencement
of, or announcement of an intention to make, a tender offer or exchange offer the consummation of which would result in the beneficial
ownership by a person or group of 15% or more of the outstanding shares of Common Stock (the earlier of such dates being called
the "Distribution Date"), the Rights will be evidenced, with respect to any of the Common Stock certificates outstanding
as of the Record Date, by such Common Stock certificate together with this Summary of Rights.


 




    	 	C-1	 



     


    

 


The Rights Agreement
provides that, until the Distribution Date (or earlier expiration of the Rights), the Rights will be transferred with and only
with the Common Stock. Until the Distribution Date (or earlier expiration of the Rights), new Common Stock certificates issued
after the Record Date upon transfer or new issuances of Common Stock will contain a notation incorporating the Rights Agreement
by reference. Until the Distribution Date (or earlier expiration of the Rights), the surrender for transfer of any certificates
for shares of Common Stock (or book entry shares of Common Stock) outstanding as of the Record Date, even without such notation
or a copy of this Summary of Rights, will also constitute the transfer of the Rights associated with the shares of Common Stock
represented by such certificate. As soon as practicable following the Distribution Date, separate certificates evidencing the Rights
("Right Certificates") will be mailed to holders of record of the Common Stock as of the close of business on
the Distribution Date and such separate Right Certificates alone will evidence the Rights.


 


The Rights are not exercisable
until the Distribution Date. The Rights will expire on November 12, 2018 (the "Final Expiration Date"), unless
the Final Expiration Date is advanced or extended or unless the Rights are earlier redeemed or exchanged by the Company, in each
case as described below, or upon the occurrence of certain transactions.


 


The Purchase Price payable,
and the number of shares of Preferred Stock or other securities or property issuable, upon exercise of the Rights is subject to
adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification
of, the Preferred Stock, (ii) upon the grant to holders of the Preferred Stock of certain rights or warrants to subscribe for or
purchase Preferred Stock at a price, or securities convertible into Preferred Stock with a conversion price, less than the then-current
market price of the Preferred Stock or (iii) upon the distribution to holders of the Preferred Stock of evidences of indebtedness
or assets (excluding regular periodic cash dividends or dividends payable in Preferred Stock) or of subscription rights or warrants
(other than those referred to above).


 


The number of outstanding
Rights is subject to adjustment in the event of a stock dividend on the Common Stock payable in shares of Common Stock or subdivisions,
consolidations or combinations of the Common Stock occurring, in any such case, prior to the Distribution Date.


 


Shares of Preferred Stock
purchasable upon exercise of the Rights will not be redeemable. Each share of Preferred Stock will be entitled, when, as and if
declared, to a minimum preferential quarterly dividend payment of the greater of (a) $10.00 per share, and (b) an amount equal
to 1000 times the dividend declared per share of Common Stock. In the event of liquidation, dissolution or winding up of the Company,
the holders of the Preferred Stock will be entitled to a minimum preferential payment of the greater of (a) $1000 per share (plus
any accrued but unpaid dividends), and (b) an amount equal to 1000 times the payment made per share of Common Stock. Each share
of Preferred Stock will have 1000 votes, voting together with the Common Stock. Finally, in the event of any merger, consolidation
or other transaction in which outstanding shares of Common Stock are converted or exchanged, each share of Preferred Stock will
be entitled to receive 1000 times the amount received per share of Common Stock. These rights are protected by customary antidilution
provisions.


 




    	 	C-2	 



     


    

 


Because of the nature
of the Preferred Stock's dividend, liquidation and voting rights, the value of the one one-thousandth interest in a share of Preferred
Stock purchasable upon exercise of each Right should approximate the value of one share of Common Stock.


 


In the event that any
person or group of affiliated or associated persons becomes an Acquiring Person, each holder of a Right, other than Rights beneficially
owned by the Acquiring Person (which will thereupon become void), will thereafter have the right to receive upon exercise of a
Right that number of shares of Common Stock having a market value of two times the exercise price of the Right.


 


In the event that, after
a person or group has become an Acquiring Person, the Company is acquired in a merger or other business combination transaction
or 50% or more of its consolidated assets or earning power are sold, proper provisions will be made so that each holder of a Right
(other than Rights beneficially owned by an Acquiring Person which will have become void) will thereafter have the right to receive
upon the exercise of a Right that number of shares of common stock of the person with whom the Company has engaged in the foregoing
transaction (or its parent) that at the time of such transaction have a market value of two times the exercise price of the Right.


 


At any time after any
person or group becomes an Acquiring Person and prior to the earlier of one of the events described in the previous paragraph or
the acquisition by such Acquiring Person of 50% or more of the outstanding shares of Common Stock, the Board of Directors of the
Company may exchange the Rights (other than Rights owned by such Acquiring Person which will have become void), in whole or in
part, for shares of Common Stock or Preferred Stock (or a series of the Company's preferred stock having equivalent rights, preferences
and privileges), at an exchange ratio of one share of Common Stock, or a fractional share of Preferred Stock (or other preferred
stock) equivalent in value thereto, per Right.


 


With certain exceptions,
no adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of at least 1% in such
Purchase Price. No fractional shares of Preferred Stock or Common Stock will be issued (other than fractions of shares of Preferred
Stock which are integral multiples of one one-thousandth of a share of Preferred Stock, which may, at the election of the Company,
be evidenced by depositary receipts), and in lieu thereof an adjustment in cash will be made based on the current market price
of the Preferred Stock or the Common Stock.


 




    	 	C-3	 



     


    

 


At any time prior to
the time an Acquiring Person becomes such, the Board of Directors of the Company may redeem the Rights in whole, but not in part,
at a price of $0.001 per Right (the "Redemption Price") payable, at the option of the Company, in cash, shares
of Common Stock or such other form of consideration as the Board of Directors of the Company shall determine. The redemption of
the Rights may be made effective at such time, on such basis and with such conditions as the Board of Directors of the Company
in its sole discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate
and the only right of the holders of Rights will be to receive the Redemption Price.


 


For so long as the Rights
are then redeemable, the Company may, except with respect to the Redemption Price, amend the Rights Agreement in any manner. After
the Rights are no longer redeemable, the Company may, except with respect to the Redemption Price, amend the Rights Agreement in
any manner that does not adversely affect the interests of holders of the Rights.


 


Until a Right is exercised
or exchanged, the holder thereof, as such, will have no rights as a stockholder of the Company, including, without limitation,
the right to vote or to receive dividends.


 




    	 	C-4	 



     


    

 


A copy of the Rights
Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Current Report on Form 8-K on November
[__], 2015. A copy of the Rights Agreement is available free of charge from the Company. This summary description of the Rights
does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, as the same may be amended
from time to time, which is hereby incorporated herein by reference.


 




    	 	C-5