Document:

Exhibit 4.1.3

 

FORTITUDE GOLD CORPORATION 

2020 EQUITY INCENTIVE PLAN

NOTICE OF GRANT OF RESTRICTED STOCK
UNITS

 

This Restricted Stock
Unit Agreement consists of this Notice of Grant of Restricted Stock Units (the “Grant Notice”) and the Restricted
Stock Unit Award Agreement immediately following. The Restricted Stock Unit Agreement sets forth the specific terms and conditions
governing Restricted Stock Unit Awards under the Fortitude Gold Corporation 2020 Equity Incentive Plan (the “Plan”).
All of the terms of the Plan are incorporated herein by reference.

 

	Name of Grantee:	 
	 	 
	Total No. of Restricted Stock Units:	 
	 	 
	Grant Date:	 
	 	 
	Vesting Schedule:	  

 

by
executing this RESTRICTED STOCK UNIT AGREEMENT, GRANTEE accepts participation in the plan, acknowledges that he or she has read
and understands the provisions of this grant NOTICE and the plan, and agrees that this grant NOTICE, the award agreement AND THE
pLAN shall govern the terms and conditions of thIS AWARD.

 

IN WITNESS WHEREOF,
the Company and Grantee have duly executed this Restricted Stock Unit Agreement, and this Restricted Stock Unit Agreement shall
be effective as of the Grant Date set forth above.

 

	FORTITUDE GOLD CORPORATION	
        GRANTEE

	 	 
	By:	 
	 	 
	Print Name:	 
	 	
        Signature

	Its: CEO and President	 
	 	 
	 	Print Name

 

    1

     

    

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

UNDER THE FORTITUDE GOLD CORPORATION

2020 EQUITY INCENTIVE PLAN

 

This Restricted Stock
Unit Award Agreement (this “Agreement”) is between Fortitude Gold Corporation, a Colorado corporation (the “Company”)
and the individual (the “Grantee”) identified in the Notice of Grant of Restricted Stock Units (the “Grant
Notice”), and is effective as of the date of grant referenced in the Grant Notice (the “Grant Date”).
This Agreement supplements the Grant Notice to which it is attached, and, together, with the Grant Notice, constitutes the “Restricted
Stock Unit Agreement” referenced in the Grant Notice.

 

RECITALS

 

A.               
The Board of Directors of the Company (the “Board”) has adopted and the shareholders have approved
the Fortitude Gold Corporation 2020 Equity Incentive Plan (the “Plan”) to promote the success an enhance the
value of the Company by linking the personal interests of the Plan’s participants to those of the Company’s shareholders
by providing such individuals with an incentive for outstanding performance.

 

B.                
The Committee and/or the Board has approved the grant of Restricted Stock Units to Grantee pursuant to Section 8.2
of the Plan.

 

C.                
To the extent not specifically defined in this Agreement, all capitalized terms used in this Agreement shall have the
meaning set forth in the Plan.

 

D.                
In consideration of the mutual covenants and conditions hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and Grantee agree as follows:

 

AGREEMENT

 

1.                 
Grant of Restricted Stock Units. Subject to the terms of this Agreement and Section 8.2 of the Plan, the
Company grants to Grantee the aggregate number of Restricted Stock Units specified in the Grant Notice.

 

2.                 
Vesting of Restricted Stock Units. Subject to Grantee’s continued employment (or service) with the Company,
the Restricted Stock Units shall vest and become nonforfeitable according to the vesting schedule set forth in the Grant Notice.

 

3.                 
Payment of Restricted Stock Units. The Restricted Stock Units that become vested and nonforfeitable pursuant
to Section 2 above will be paid in whole unrestricted and fully transferable shares of Stock within 30 days of each Vesting
Date identified in the Grant Notice unless Grantee has signed a timely election to defer the payment of Stock pursuant to the attached
Restricted Stock Unit Deferral Election.

 

4.                 
No Shareholder Rights. During the restriction period and until the date of payment of Restricted Stock Units
pursuant to Section 3, the Grantee will not have any of the rights of a shareholder of the Company with respect to the Restricted
Stock Units.

 

    2

     

    

 

5.                 
 Withholding. As described in Article 13 of the Plan, the Company shall have the right to deduct or withhold,
or to require Grantee to remit to the Company, an amount necessary to satisfy any federal, state or local taxes (including Grantee’s
FICA obligation) as are required by law to be withheld with respect to the Restricted Stock Units granted pursuant this Agreement.

 

6.                 
No Right to Continued Employment (or Service). This Agreement shall not be construed to confer upon Grantee
any right to continue employment (or service) with the Company and shall not limit the right of the Company, in its sole and absolute
discretion, to terminate Grantee’s employment (or service) at any time.

 

7.                 
Administration. This Agreement shall at all times be subject to the terms and conditions of the Plan and the
Plan shall in all respects be administered by the Committee in accordance with the terms of and as provided in the Plan. The Committee
shall have the sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of the Committee
with respect thereto and to this Agreement shall be final and binding upon Grantee and the Company. In the event of any conflict
between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

 

8.                 
Adjustments. The number of shares of Stock subject to the Restricted Stock Units issued to Grantee pursuant to
this Agreement shall be adjusted by the Committee pursuant to Section 5.4 of the Plan, in its discretion, in the event of
a change in the Company’s capital structure.

 

9.                 
Copy of Plan. By the execution of this Agreement, Grantee acknowledges receipt of a copy of the Plan.

 

10.              
Governing Law. This Agreement shall be interpreted and administered under the laws of the State of Colorado.

 

11.              
Amendment. Except as otherwise provided in the Plan, this Agreement may be amended only by a written agreement
executed by the Company and Grantee. The provisions of this Agreement may not be waived or modified unless such waiver or modification
is in writing and signed by a representative of the Committee.

 

12.              
Clawback. Pursuant to Section 11.7 of the Plan, every Award issued pursuant to the Plan is subject
to potential forfeiture or “clawback” to the fullest extent called for by applicable federal or state law or any policy
of the Company. By accepting this Award, Grantee agrees to be bound by, and comply with, the terms of any such forfeiture or “clawback”
provision imposed by applicable federal or state law or prescribed by any policy of the Company.

 

13.              Section
409A Compliance. The Restricted Stock Units, if any, that become payable pursuant to this Notice may be considered
 “nonqualified deferred compensation” that is subject to the requirements of Section 409A of the Code. The Company
intends, but does not and cannot warrant or guaranty, that the Restricted Stock Units will be paid in compliance with Section
409A of the Code or an applicable exception. Neither the time nor the schedule of the payment of the Restricted Stock Units
may be accelerated or subject to a further deferral except as permitted pursuant to (i) Section 409A of the Code and the
applicable regulations and (ii) the Grantee’s timely election to defer the payment of Stock in accordance with the
attached Restricted Stock Unit Deferral Election. Payment of the Restricted Stock Units may be delayed only in accordance
with Section 409A of the Code and the applicable regulations. This Notice shall be administered in compliance with Section
409A of the Code or an exception thereto and each provision shall be interpreted, to the extent possible, to comply with
Section 409A of the Code and the applicable regulations.

 

MANY OF THE PROVISION OF THIS AWARD
AGREEMENT ARE SUMMARIES OF SIMILAR PERTINENT PROVISIONS OF THE PLAN. TO THE EXTENT THAT THIS AGREEMENT IS SILENT ON AN ISSUE OR
THERE IS A CONFLICT BETWEEN THE PLAN AND THIS AGREEMENT, THE PLAN PROVISIONS SHALL CONTROL.

 

    3Exhibit 4.2

 

SHAREHOLDER RIGHTS AGREEMENT

 

FORTITUDE gOLD
Corporation

2886 Carriage Manor Point,

Colorado Springs, Colorado 80906

 

     

     

    

 

TABLE OF CONTENTS

 

	SECTION	 	PAGE
	 	 	 
	1	Certain Definitions	3
	2	Appointment of Rights
Agent	7
	3	Issue of Right Certificates	7
	4	Form of Right Certificates	9
	5	Countersignature
and Registration	9
	6	Transfer, Split-Up, Combination and
    Exchange of Rights Certificates; Lost, Stolen,
    Destroyed or Mutilated Right Certificates	9
	7	Exercise of Rights; Purchase Price;
    Expiration Date of Rights	 10
	8	Cancellation and
Destruction of Right Certificates	11
	9	Reservation and
Availability of Common Shares	12
	10	Common Shares Record
Date	13
	11	Adjustment of Purchase Price, Number
    and Kind of Shares or Number of Rights	 13
	12	Certificate of Adjusted
Purchase Price or Number of Shares	 21
	13	Consolidation, Merger, Statutory Share Exchange or Sale or Transfer of Assets or Earning Power	 21
	14	Fractional Rights
and Fractional Shares	24
	15	Rights of Action	24
	16	Agreement of Right
Holders	25
	17	Right Certificate
Holder Not Deemed a Shareholder	25
	18	Concerning the Rights
Agent	26
	19 	Merger or Consolidation or Change of
    Name of  Rights Agent	 26
	20	Duties of Rights
Agent	27
	21	Change of Rights
Agent	29
	22	Issuance of New
Right Certificates	29
	23	Redemption	30
	24	Exchange	30
	25	Notice of Certain
Events	32
	26	Notices	32
	27	Supplements and
Amendments	33
	28	Successors	33
	29	Benefits of this
Agreement	33
	30	Severability	34
	31	Governing Law	34
	32	Counterparts	34
	33	Descriptive Headings	34

 

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SHAREHOLDER RIGHTS AGREEMENT

 

Agreement, dated
as of October 15, 2020, between Fortitude Gold Corporation, a Colorado corporation (the "Company"), and Computershare
Trust Company, N.A.. (the “Rights Agent”).

 

The Board of Directors
of the Company has authorized and declared a dividend of one Series A Right and one Series B Right (individually a "Series
A Right" or a "Series B Right" and collectively the "Rights" for each Common Share (as defined in this
Agreement) of the Company outstanding on October 15, 2020 (the “Record Date”). Each Series A Right initially represents
the right to purchase one share of the Company's Common Stock (as defined in this Agreement), upon the terms and subject to the
conditions set forth in this Agreement. Each Series B Right is initially exercisable at $100 (the "Purchase Price" for
the Series B Right). The Board of Directors has further authorized the issuance of one Series A Right and one Series B Right (as
such number may hereafter be adjusted) with respect to each Common Share that shall become outstanding between the Record Date
and the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date (as such terms are defined in this
Agreement).

 

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 meanings indicated:

 

(a)       "Acquiring
Person" shall mean any Person (as such term is defined in this Agreement) who or which, together with all Affiliates and Associates
(as such terms are defined in this Agreement) of such Person, shall be the Beneficial Owner (as such terms are defined in this
Agreement) of 15% or more of the Common Shares of the Company then outstanding, but shall not include (i) the Company, (ii) any
wholly owned Subsidiary (as such term is defined in this Agreement) of the Company, or (iii) any employee benefit plan of the Company
or of any Subsidiary of the Company. Notwithstanding the foregoing, no Person shall become an "Acquiring Person" as the
result of an acquisition of Common Shares by the Company which, by reducing the number of Common Shares Outstanding, increases
the proportionate number of shares beneficially owned by such Person to 15% or more of the Common Shares of the Company then outstanding;
provided, however, that if a Person shall, together with all Affiliates or Associates of such Person, become the
Beneficial Owner of 15% or more of the Common Shares of the Company then outstanding by reason of share acquisitions by the Company
and if such Person or such Person's Affiliates or Associates shall, after such share acquisitions by the Company, become the Beneficial
Owner of any additional Common Shares of the Company, and, immediately after becoming the Beneficial Owner of such additional Common
Shares, such Person shall, together with all Affiliates and Associates of such Person, be the Beneficial Owner of 15% or more of
the Common Shares of the Company then outstanding, then such Person (unless such Person shall be (1) the Company, (2) any wholly
owned subsidiary of the Company, or (3) any employee benefit plan of the Company or of any Subsidiary of the Company) shall be
deemed an "Acquiring Person".

 

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(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 Securities Exchange Act of 1934, as amended (the "Exchange Act"), as in effect on the date of this Agreement.
Notwithstanding anything in this definition of "Affiliate" or "Associate" to the contrary, no trustee or other
Person holding Common Shares for or pursuant to the terms of any employee benefit plan of the Company or of any Subsidiary of the
Company (and no Affiliate or Associate of such trustee or other Person), and no member of any investment committee for any such
employee benefit plan (and no Affiliate or Associate of such member) shall be deemed an Affiliate or Associate of any such employee
benefit plan with respect to which such Person (or such Person's Affiliate or Associate) is trustee, holder, beneficiary or member
of any investment committee and any such employee benefit plan shall not be deemed an Affiliate or Associate of such trustee, beneficiary,
member of any investment committee or other Person (or of any Affiliate or Associate of such trustee, beneficiary, member of any
investment committee or other Person).

 

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

 

(i)       which
such Person or any of such Person's Affiliates or Associates beneficially owns, directly or indirectly, including without limitation
securities with respect to which such Person or any of such Person's Affiliates or Associates has "beneficial ownership"
pursuant to Rule 13d-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, directly or indirectly, (A) the right to acquire (whether such
right is exercisable immediately or only after the passage of time) pursuant to 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), or upon the exercise of conversion rights, exchange rights, other 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, or to have beneficial ownership of, any securities pursuant to subparagraph (i), (ii) or (iii) of this
paragraph (c) solely because such securities are 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 or exchange; or (B) the
right to vote or dispose of (including without limitation 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,
or to have beneficial ownership of, any securities pursuant to subparagraph (i), (ii) or (iii) of this paragraph (c) solely because
of the right to vote such securities pursuant to an agreement, arrangement or understanding if the agreement, arrangement or understanding
to vote such securities (1) arises solely from a revocable proxy or consent given to such Person or any of such Person's Affiliates
or Associates in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules
and regulations under the Exchange Act and (2) is not also then reportable by such Person on Schedule 13D under the Exchange Act
(or any comparable or successor report) as being beneficially owned by such person; or

 

    4

     

    

 

(iii)       which
are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person
(or any of such Person's Affiliates or Associates) has 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) for the purpose
of acquiring, holding, voting (except pursuant to a revocable proxy as described in the proviso to subparagraph (ii) of this paragraph
(c)) or disposing of any voting securities of the Company.

 

Notwithstanding anything
in these definitions to the contrary, the phrase "then outstanding", when used with reference to a Person's beneficial
ownership of securities of the Company, shall mean the number of such securities then issued and outstanding together with the
number of such securities not then actually issued and outstanding which such Person would be deemed to beneficially own under
this Agreement.

 

Notwithstanding anything
in these definitions to the contrary, no trustee or other Person holding Common Shares for or pursuant to the terms of any employee
benefit plan of the Company or of any Subsidiary of the Company (and no Affiliate or Associate of such trustee or other Person),
and no member of any investment committee for any such employee benefit plan (an no Affiliate or Associate of such member) shall
be deemed the Beneficial Owner of, or to beneficially own, or to have beneficial ownership of, any Common Share of the Company
beneficially owned by any employee benefit plan of the Company or of any Subsidiary of the Company with respect to which such Person
(or such Person's Affiliate or Associate) is trustee, holder, beneficiary or member of any investment committee (including without
limitation Common Shares held of record by such trustee, beneficiary member of any investment committee or other Person for or
pursuant to the terms of any such employee benefit plan) and any such employee benefit plan shall not be deemed to be the Beneficial
Owner of, or to beneficially own, or to have beneficial ownership of, any Common Shares of the Company beneficially owned by such
trustee, beneficiary, member of any investment committee or other Person.

 

(d)       "Business
Day" shall mean any day other than a Saturday, Sunday or a day on which banking institutions in the State of New York or Colorado
are authorized or obligated by law or executive order to close.

 

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

 

(f)       "Common
Shares", when used with reference to the Company, shall mean Common Shares of the Company. "Common Shares", when
used with reference to any Person other than the Company, shall mean the capital stock (or equity interest) with the greatest voting
power of such other Person.

 

(g)       "Continuing
Director" shall mean any Person who is a member of the Board of Directors of the Company, while such Person is a member of
the Board of Directors, who is not an Acquiring Person, a Tender Offer Person or an Affiliate or Associate of an Acquiring Person
or a Tender Offer Person, or a representative or nominee of an Acquiring Person or a Tender Offer Person or of any such Affiliate
or Associate, and who was a member of the Board of Directors of the Company on the date of this Agreement. A “Continuing
Director” shall also mean any Person who subsequently becomes a member of the Board of Directors of the Company, while such
Person is a member of the Board of Directors, who is not an Acquiring Person or a Tender Offer Person, or an Affiliate or Associate,
or a representative or nominee of any such Person or of any such Affiliate or Associate, if such Person's initial nomination for
election or initial election to the Board of Directors is recommended or approved by the Board of Directors (at a time when a majority
of the directors then serving are Continuing Directors).

 

    5

     

    

 

(h)       “Distribution
Date” shall have the meaning set forth in Section 3.

 

(i)       “Final
Expiration Date” shall be __________.

 

(j)       “Person”
shall mean an individual, firm, corporation, partnership or other entity, and shall include any successor (by merger or otherwise)
of any such entity.

 

(k)       "Preferred
Shares" shall mean any Preferred Shares or any series or class of Preferred Shares which may be issued or designated by the
Company's Board of Directors.

 

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

 

(m)       "Section
11(a)(ii) Event" shall mean any event described in Section 11(a)(ii)(A) or (B).

 

(n)       "Section
13 Event" shall mean any event described in clauses (w), (x), (y) or (z) of Section 13(a).

 

(o)       "Share
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.

 

(p)       "Subsidiary"
of any Person shall mean any corporation or other entity of which a majority of the voting power of the voting equity securities
or other equity interests entitled to vote in the election of directors (or Persons with comparable responsibilities if the entity
has no directors) is beneficially owned, directly or indirectly, by such Person, or otherwise controlled by such Person.

 

(q)       "Tender
Offer Person" shall mean any person who commences, or publicly announces the intention to commence (which intention shall
not have been withdrawn within five Business Days after the commencement of such tender offer or such public announcement), a tender
or exchange offer the consummation of which would result in beneficial ownership by a Person (other than the Company, any wholly
owned Subsidiary of the Company or any employee benefit plan of the Company or of any Subsidiary of the Company) of 15% or more
of the Company's then outstanding Common Shares.

 

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

 

    6

     

    

 

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, shall prior to the Distribution Date also be the holders of the Common Shares)
in accordance with the terms and conditions of this Agreement, 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.

 

Section 3.
Issue of Right Certificates. (a) Until the earlier of (i) the Close of Business on the 15th business day after the Share
Acquisition Date or (ii) the Close of Business on the 15th business day (or such later date as may be determined by action of the
Board of Directors prior to such time as any Person becomes an Acquiring Person) after the date of the commencement of, or first
public announcement of the intention of any Person to commence (which intention shall not have been withdrawn within five Business
Days after such public announcement), a tender or exchange offer the consummation of which would result in beneficial ownership
by a Person (other than the Company, any wholly owned Subsidiary of the Company or any employee benefit plan of the Company or
of any Subsidiary of the Company) of 15% or more of the then outstanding Common Shares (including any such date that is after the
date of this Agreement and prior to the issuance of the Rights) the earlier of such dates being herein referred to as the "Distribution
Date", (x) the Rights will be evidenced (subject to the provisions of paragraph (b) of this Section) by the certificates for
Common Shares registered in the names of the holders thereof (which certificates shall also be deemed to be Right Certificates
where the context so requires ) and not by separate Right Certificates, and (y) the right to receive Right Certificates will be
transferable only in connection with the transfer of Common Shares. 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, postage-prepaid mail, to each record holder of Common Shares as of the close of business
on the Distribution Date, at the address of such holder shown on the records of the Company, Right Certificates, in substantially
the form of Exhibit A (the "Right Certificates"), evidencing one Series A Right and one Series B Right for each Common
Share so held. In the event that an adjustment has been made pursuant to Section 11, at the time Right Certificates are distributed,
the Company may, to the extent provided in Section 14(a), make the necessary and appropriate rounding adjustments (as set forth
in Section 14(a)) so that Right Certificates are distributed representing only whole numbers of Rights and pay cash in lieu of
fractional Rights pursuant to Section 14(a). As of and after the Distribution Date, the Rights will be evidenced solely by such
Right Certificates.

 

Notwithstanding the
above, the Distribution Date may be deferred indefinitely by action of the Board of Directors if an Acquiring Person becomes such
pursuant to a transaction at a price and on terms approved by the Board of Directors of the Company at a time when a majority of
directors the serving are Continuing Directors.

 

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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 Common Shares,
in substantially the form of Exhibit B (the "Summary of Rights"), to each record holder of Common Shares as of the close
of business on the Record Date, at the address of such holder shown on the records of the Company. With respect to certificates
for Common Shares 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 and the registered holders of the Common Shares shall also be registered holders
of the associated Rights. Until the Distribution Date (or the earlier of the Redemption Date or the Final Expiration Date), the
surrender for transfer of any certificate for Common Shares, with or without a copy of the Summary of Rights attached thereto,
shall also constitute the transfer of the Rights associated with the Common Shares represented thereby.

 

(c)              
Rights shall be issued in respect of all Common Shares that are issued after the Record Date but prior to the earliest of
the Distribution Date, the Redemption Date or the Final Expiration Date. Certificates for Common Shares which become outstanding
after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date or the Final Expiration 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 the Company and Computershare
Trust Company, N.A.., dated as of __________, 2020 (the "Rights Agreement"), the terms of which (including restrictions
on the transfer of such Rights) are incorporated herein by reference and a copy of which is on file with the Secretary 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 to its Secretary from such holder. Under
certain circumstances, as set forth in the Rights Agreement, Rights issued to or held by a Person who is, was or becomes an Acquiring
Person or any Associate or Affiliate thereof (as such terms are defined in the Rights Agreement), or certain transferees of such
Person, may become null and void.

 

With respect to certificates
containing this legend, until the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date, the Rights
associated with the Common Shares represented by such certificates shall be evidenced by such certificates alone, the registered
holders of the Common Shares shall also be the registered holders of the associated Rights and the surrender for transfer of any
such certificate shall also constitute the transfer of the Rights associated with the Common Shares represented thereby. In the
event that the Company purchases or acquires any Common Shares after the Record Date but prior to the Distribution Date, any rights
associated with such Common Shares shall be deemed cancelled and retired so that the Company shall not be entitled to exercise
any Rights associated with the Common Shares which are no longer outstanding.

 

    8

     

    

 

Section 4.
Form of Right Certificates. The Right Certificates (and the forms of election and of assignment to be printed on the reverse
thereof) shall be in substantially the form of Exhibit A 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, rule or regulation or to conform to usage. Subject to
the provisions of Section 11 and 22, the initial Right Certificates, whenever distributed, shall be dated as of the Record Date
and on their face shall entitle the holders thereof to purchase such securities as shall be set forth therein at the price set
forth therein (the "Purchase Price"), but the amount and type of securities purchasable upon the exercise of each Right
and the Purchase Price shall be subject to adjustment as provided in this Agreement.

 

Section 5.
Countersignature and Registration.

 

(a)       The
Right Certificates shall be executed on behalf of the Company by its Chairman, Chief Executive Officer, President, any Vice President
or Secretary, either manually or by facsimile signature. The Right Certificates shall be manually countersigned by the Rights Agent
and shall not be valid for any purpose unless so 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 signing 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 Rights 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 its principal office or the office or offices designated
as the appropriate place for surrender of Right Certificates upon exercise or transfer, books for registration and transfer of
the Right Certificates. 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 Rights Certificates; Lost, Stolen, Destroyed or Mutilated Right Certificates.

 

(a)       Subject
to the provisions of Section 14, at any time after the close of business on the Distribution Date, and at or prior to the close
of business on the earlier of the Redemption Date or the Final Expiration Date, any Right Certificate or Right Certificates (other
than Right Certificates representing Rights that have become void pursuant to Section 11(a)(ii) or that have been exchanged pursuant
to Section 24) 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 securities as the Right Certificate or Right Certificates surrendered then entitled
such holder (or former holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine
or exchange any Right Certificate or Rights 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
offices of the Rights Agent designated for such purpose. Thereupon the Rights Agent shall, subject to Section 14, 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 by the registered holder 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. Neither the Rights Agent nor the Company
shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Right Certificate until the
registered holder shall have duly completed and executed the form of assignment on the reverse side of such Right Certificate and
shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) of such Right
Certificate or Affiliates or Associates thereof as the Company shall reasonably request.

 

    9

     

    

 

(b)       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 countersignature and delivery to the registered owner in lieu of the
Right Certificate so lost, stolen, destroyed or mutilated.

 

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

 

(a)       Subject
to Section 11(a)(ii), the registered holder of any Series A Right may exercise the Rights evidenced thereby (except as otherwise
provided in this Agreement) in whole or in part at any time after the Distribution Date upon surrender of the Right Certificate,
with the form of election to purchase on the reverse side thereof duly completed and executed, to the Rights Agent at the office
or offices of the Rights Agent designated for such purpose, together with payment of the Purchase Price for which the Rights are
exercised, at or prior to the earliest of (i) the close of business on the Final Expiration Date, (ii) the time at which the Rights
are redeemed as provided in Section 23 (the "Redemption Date"), or (iii) the time at which such Rights are exchanged
as provided in Section 24.

 

(b)       The
Purchase Price for each Common Share issuable pursuant to the exercise of a Series A Right shall initially be 20% (the "Purchase
Price Percentage") of the current per share market price of the Company's Common Shares computed as of the Distribution Date
and in accordance with Section 11(d) of this Agreement. The Purchase Price Percentage shall be subject to adjustment from time
to time as provided in this Agreement and the Purchase Price shall be payable in lawful money of the United States in accordance
with paragraph (c) below.

 

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(c)       Upon
receipt of a Right Certificate representing exercisable Series A Rights, with the form of election to purchase duly completed and
executed, accompanied by payment of the Purchase Price for the shares 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 in cash, or by certified check or
bank cashier check or money order payable to the order of the Company, the Rights Agent shall, subject to Section 20(k), thereupon
promptly (i) (A) requisition from any transfer agent of the Common Shares (or make available, if the Rights Agent is the transfer
agent for such shares) certificates for the number of Common Shares to be purchased and the Company hereby irrevocably authorizes
its transfer agent to comply with all such requests, or (B) if the Company shall have elected to deposit the total number of Common
Shares issuable upon exercise of the Series A Rights under this Agreement with a depositary agent, requisition from the depositary
agent depositary receipts representing such number of Common Shares as are to be purchased (in which case certificates for the
Common Shares represented by such receipts shall be deposited by the transfer agent with the depositary agent) and the Company
hereby directs the 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 interests in shares in accordance with Section 14, (iii) 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,
deliver such cash for fractional interests in Common Shares to or upon the order of the registered holder of such Right Certificate.

 

(d)       In
case the registered holder of any Series A Right Certificate shall exercise less than all the Series A Rights evidenced thereby,
a new Right Certificate evidencing Series A Rights equivalent to the Rights remaining unexercised shall be issued by the Rights
Agent and delivered to the registered holder of such Right Certificate or to such holder's duly authorized assigns, subject to
the provisions of Section 14.

 

(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 upon the occurrence of any purported exercise as set forth in this Section unless such registered
holder shall have (i) duly completed and executed the form of election to purchase set forth on the reverse side of the Right Certificate
surrendered for such exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial
Owner) of such Right Certificate or Affiliates or Associates 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 cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Right Certificates
shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Rights 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 cancelled Right
Certificates to the Company, or shall, at the written request of the Company, destroy such cancelled Right Certificates after any
retention period required by the Securities and Exchange Commission has lapsed, and in such case shall deliver a certificate of
destruction thereof to the Company.

 

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Section 9. Reservation and Availability
of Common Shares.

 

(a)       The
Company covenants and agrees that it will use its best efforts to reserve and keep available out of its authorized and unissued
Common Shares, the number of Common Shares Shares that will be sufficient to permit the exercise in full of all outstanding Rights.

 

(b)       At
such time, if any, as the Common Shares issuable upon the exercise of Rights may be listed on any national securities exchange,
the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable (but only to the extent
that it is reasonably likely that the Rights will be exercised), all shares reserved for such issuance to be listed on such exchange
upon official notice of issuance upon such exercise.

 

(c)       The
Company will prepare and file, as soon as practicable following the Share Acquisition Date or any announcement of a Tender Offer
or Exchange Offer as contemplated by Section 3, a registration statement under the Securities Act of 1933, as amended (the "Act"),
with respect to the Rights and the securities purchasable upon exercise of the Rights on an appropriate form, and use its best
efforts to cause such registration statement to (i) become effective as soon as practicable after such filing, and (ii) remain
effective (with a prospectus at all times meeting the requirements of the Act) until the earlier of (A) the date as of which the
Rights are no longer exercisable for such securities or (B) the Final Expiration Date. The company will also take such action as
may be appropriate under, or to ensure compliance with, the securities or "blue sky" laws of the various states in connection
with the exercisability of the Rights. The Company may temporarily suspend, for a period of time not to exceed 90 days after the
date the registration statement is filed, the exercise of the Rights in order to permit the registration statement to become effective.
Upon any such suspension, the Company shall issue a public announcement stating that the exercise 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 if the requisite qualification in such
jurisdiction shall not have been obtained or the exercise thereof is not permitted under applicable law.

 

(d)       The
Company covenants and agrees that it will take all such action as may be necessary to ensure that all Common Shares delivered upon
exercise of Rights shall, at the time of delivery of the certificates for such Common Shares (subject to payment of the Purchase
Price and any applicable transfer taxes), 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
that may be payable in respect of the issuance or delivery of the Right Certificates or of any Common Shares upon the exercise
of Rights. The Company shall not, however, be required to pay any transfer tax that 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
Common Shares 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 Common Shares upon the exercise of any Rights, until any such
tax shall have been paid (any such tax being payable by the holder of such Right Certificate at the time of surrender) or until
it has been established to the Company's satisfaction that no such tax is due.

 

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Section 10.
Common Shares Record Date. Each person in whose name any certificate for Common Shares is issued upon the exercise of Rights
shall for all purposes be deemed to have become the holder of record of the Common Shares 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 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 transfer books of the Company
are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate as such shall not be entitled
to any rights of a holder of Common Shares 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 or Number of Rights. The Purchase Price, the number and kind of
shares covered by 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 a dividend on the Common Shares payable in Common Shares, (B) subdivide
the outstanding Common Shares, (C) combine the outstanding Common Shares into a smaller number of Common Shares or (D) issue any
shares of its capital stock in a reclassification of the Common Shares (including any such reclassification in connection with
a consolidation, merger or statutory share exchange in which the Company is the continuing, surviving or acquiring corporation),
except as otherwise provided in this Section 11(a), the Purchase Price and/or Purchase Price Percentage in effect at the time of
the record date for such dividend or of the effective date of such subdivision, combination or reclassification, and the number
and kind of shares of capital stock issuable on such date pursuant to the exercise of the Rights, shall be proportionately adjusted
so that the holder of any Right exercised after such time shall be entitled to receive, upon payment of the Purchase Price then
in effect (and any applicable transfer taxes), 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 transfer books of the Company were open, such holder would
have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification;
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. If an event occurs which
would require an adjustment under both Section 11(a)(i) and Section 11(a)(ii), the adjustment provided for in this Section 11(a)(i)
shall be in addition to, and shall be made prior to any adjustment required pursuant to Section 11(a)(ii).

 

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(ii)        Subject
to Section 24 of this Agreement, in the event:

 

(A)       any
Person shall become an Acquiring Person or a Tender Offer Person other than (1) pursuant to any transaction set forth in Section
13(a) or (2) as a result of an acquisition of Common Shares of the Company pursuant to a tender offer or an exchange offer for
all outstanding Common Shares of the Company at a price and on terms determined by the Board of Directors of the Company, at a
time when a majority of the directors then serving are Continuing Directors and after receiving advice from one or more investment
banking firms, to be (a) fair to shareholders (taking into account all factors which the Board of Directors deems relevant), and
(b) otherwise in the best interests of the Company and its shareholders and which the Board of Directors determines to recommend
to the shareholders of the Company, or

 

(B)       during
such time as there is an Acquiring Person or a Tender Offer Person, there shall be any reclassification of securities (including
any reverse stock split) or recapitalization or reorganization of the Company or other transaction or series of related transactions
involving the Company (whether or not with or into or otherwise involving an Acquiring Person, or a Tender Offer Person or any
of their Affiliates or Associates) which has the effect, directly or indirectly, of increasing by more than 1% the proportionate
share of the outstanding shares of any class of equity securities or of securities exercisable for or convertible into equity securities
of the Company or any of its Subsidiaries that is directly or indirectly beneficially owned in the aggregate by any Acquiring Person
or a Tender Offer Person or any of their Associates or Affiliates, then, from and after the first occurrence of a Section 11(a)(ii)
Event, any Rights that are beneficially owned by (i) any Acquiring Person or Tender Offer Person or any Associate or Affiliate
of such Acquiring Person or Tender Offer Person, (ii) a transferee of an Acquiring Person or Tender Offer Person (or of any such
Associate or Affiliate) who becomes a transferee after the Acquiring Person or Tender Offer Person becomes such, or (iii) a transferee
of an Acquiring Person or Tender Offer Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently
with the Acquiring Person or Tender Offer Person becoming such and receives such Rights pursuant to either (A) a transfer (whether
or not for consideration) from the Acquiring Person or Tender Offer Person to holders of equity interests in such Acquiring Person
or Tender Offer Person or to any Person with whom the Acquiring Person or Tender Offer Person has any continuing agreement, arrangement
or understanding regarding the transferred Rights or (B) a transfer which the Board of Directors of the Company has determined
is a part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of this paragraph, shall
become null and void without any further action and no holder of such Rights shall have any rights whatsoever with respect to such
Rights, whether under any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to insure that
the provisions hereof are complied with, but shall have no liability to any holder of a Right Certificate or other Person as a
result of its failure to make any determinations with respect to an Acquiring Person, a Tender Offer Person or its Affiliates,
Associates or Transferrees.

 

(iii)       If,
on the date of the first occurrence of a Section 11(a)(ii) Event (the "Adjustment Date"), the Company does not have sufficient
authorized, unissued and unreserved Common Shares available to permit the exercise in full of all Series A Rights that are exercisable
on the Adjustment Date for the number of Common Shares provided by such Series A Rights, then the Exercise Price (as defined below)
and the number of Common Shares to be delivered by the Company upon exercise of a Series A Right shall be further adjusted as provided
in this subparagraph (iii).

 

    14

     

    

 

(1)       Definitions:

 

(A)       "Remaining
Rights" are the number of Rights remaining outstanding immediately prior to the Adjustment Date (which number shall not include
the Rights that are or were beneficially owned by any Acquiring Person or Tender Offer Person (or any Associate or Affiliate or
certain transferees thereof) that shall have become void pursuant to Section 11(a)(ii)).

 

(B)       The
 "Available Shares" are all unreserved Common Shares which are authorized and unissued immediately prior to the Adjustment
Date.

 

(C)       The
 "Exercise Price" is the amount of the payment that must be made by the holder of a Series A Right in connection with
the exercise of one Series A Right immediately prior to the Adjustment Date.

 

(2)         (A)
       The number of Common Shares to be delivered by the Company upon exercise of a Series A Right shall be adjusted to equal
the number obtained by multiplying (i) the number of Common Shares issuable upon the exercise of all remaining Series A
Rights on the Adjustment Date by (ii) the ratio obtained by dividing the Available Shares by the number of Common Shares
issuable upon the exercise of all remaining Series A Rights on the Adjustment Date;

 

(B)       the
New Exercise Price shall equal the Exercise Price multiplied by the ratio described in (2)(A) above; and

 

(C)       in
lieu of issuing Common Shares (in whole or in part upon the exercise of Rights) the Company may issue, upon the exercise of Rights,
other equity securities of the Company (including, without limitation, shares, or units or fractions of shares, or preferred stock
which the Board of Directors of the Company has determined to have substantially the same value as Common Shares (such equity securities
are herein called "common share equivalents")). To the extent that such common share equivalents (or fractions thereof)
are substituted for Common Shares upon exercise of the Rights following the occurrence of a Section 11(a)(ii) Event, they shall
be substituted on a pro-rata basis with respect to all Rights (other than Rights that are or were beneficially owned by any Acquiring
Person or Tender Offer Person (or any Associate or Affiliate or certain transferees thereof) that shall have become void pursuant
to Section 11(a) (ii)). Such common share equivalents shall not be included in Available Shares, and all of the Available Shares
shall be reserved, as of the Adjustment Date, for issuance, on a pro-rata basis, upon exercise of the Rights and may not be substituted
for common share equivalents upon the exercise of any Right except to the extent that the number of Common Shares required to be
delivered upon the exercise of such Rights exceeds the number of Available Shares.

 

    15

     

    

 

(3)        If,
at the time any adjustment is required pursuant to this Section 11(a)(iii), the Common Shares shall have no par value, then for
the purposes of this Section 11(a)(iii) the par value of the Common Shares shall be deemed to be $.001 per share.

 

(4)        In
the event that there shall not be sufficient authorized but unissued and unreserved Common Shares (or common share equivalents
the issuance of which is permitted under Section 11(a)(iii)(2)(C)) to permit the exercise in full of the Rights in accordance with
this subparagraph, the Company shall use its best efforts to cause the authorization of sufficient additional Common Shares or
common share equivalents to permit such exercise, and if the Board of Directors of the Company shall determine in good faith that
it is likely that sufficient additional Common Shares or common share equivalents could be authorized to permit such exercise,
the Company may suspend the exercisability of the Series A Rights for a period not to exceed 90 days in order to seek any authorization
of additional Common Shares or other common share equivalents. 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.

 

(b)       In
case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Common Shares entitling
them to subscribe for or purchase Common Shares (or shares having the same rights, privileges and preferences as the Common Shares
("equivalent common shares")) or securities convertible into Common Shares or equivalent common shares at a price per
Common Share or equivalent common share (or having a conversion price per share, if a security convertible into Common Shares or
equivalent common shares) less than the current per share market price of the Common Shares (as determined pursuant to Section
11(d)) on such record date, the Purchase Price Percentage to be in effect after such record date shall be determined by multiplying
the Purchase Price Percentage in effect immediately prior to such record date by a fraction, the numerator of which shall be the
number of Common Shares outstanding on such record date, plus the number of Common Shares which the aggregate offering price of
the total number of Common Shares and/or equivalent common 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 per share market price, and the denominator of
which shall be the number of Common Shares outstanding on such record date, plus the number of additional Common Shares and/or
equivalent common 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 Series A Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise
of one Series A Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other
than cash, the value of such consideration shall be as determined in good faith by a majority of the Continuing Directors (or,
if there are no Continuing Directors, by the Board of Directors of the Company), whose determination shall be described in a statement
filed with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. Common 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 or warrants are not so issued; the Purchase
Price Percentage shall again be adjusted to be the Purchase Price Percentage which would then be in effect if such record date
had not been fixed.

 

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(c)       In
case the Company shall fix a record date for the making of a distribution to all holders of the Common Shares (including any such
distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation
or in a statutory share exchange) of evidences or indebtedness or cash or non-cash assets (other than a regular cash dividend or
a dividend payable in Common Shares) or subscription rights or warrants (excluding those referred to in Section 11(b)), the Purchase
Price Percentage to be in effect after such record date shall be determined by multiplying the Purchase Price Percentage in effect
immediately prior to such record date by a fraction, the numerator of which shall be the current per share market price of the
Common Shares (as determined pursuant to Section 11(d)) on such record date, less the fair market value (as determined in good
faith by a majority of the Continuing Directors or, if there are no Continuing Directors, 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 evidences of indebtedness
or cash or non-cash assets so to be distributed on, or the fair market value of such subscription rights or warrants applicable
to, one Common Share, and the denominator of which shall be such current per share market price of the Common Shares; provided,
however, that in no event shall the consideration to be paid upon the exercise of one Series A Right be less than the aggregate
par value of the shares of capital stock of the Company to be issued upon exercise of one Series A 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 Percentage shall again be adjusted to be the Purchase Price Percentage that would then be in effect if such record date had
not been fixed.

 

(d)         (1)
       For the purpose of any computation hereunder, the "current per share market price" of the Common Shares on any
date shall be deemed to be the average of the daily closing prices per share of such Common Shares for the five 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 Common Shares is determined during a period following the
announcement by the issuer of such Common Shares of (A) a dividend or distribution on such Common Shares payable in such
Common Shares or securities convertible into such Common Shares (other than the Rights) or (B) any subdivision, combination
or reclassification of such Common Shares, and prior to the expiration of five 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 common
share equivalent. 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 in the principal
consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock
Exchange or, if the Common Shares are not listed or admitted to trading on the New York Stock Exchange, as reported in the
principal consolidated transaction reporting system with respect to securities listed on the principal national securities
exchange on which the Common Shares are listed or admitted to trading or, if the Common Shares 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 the National Association of Securities Dealers, Inc. Automated
Quotations System ("NASDAQ") or such other system then in use, or, if on any such day the Common shares 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 Common Shares selected by a majority of the Continuing Directors (or, if there are no Continuing
Directors, the Board of Directors of the Company). If on any such day no market maker is making a market in the Common
Shares, the fair value of such shares on such day as determined in good faith by a majority of the Continuing Directors (or,
if there are no Continuing Directors, the Board of Directors of the Company) shall be used in lieu of the closing price for
such day. The term "Trading Day" shall mean a day on which the principal national securities exchange on which the
Common Shares are listed or admitted to trading is open for the transaction of business or, if the Common Shares are not
listed or admitted to trading on any national securities exchange, a Business Day. If the Common Shares are not publicly held
or not so listed or traded, the current per share market price shall mean the fair value per share as determined in good
faith by a majority of the Continuing Directors (or, if there are no Continuing Directors, the Board of Directors of the
Company), whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all
purposes.

 

    17

     

    

 

(e)       Except
as provided below, no adjustment in the Purchase Price Percentage shall be required unless such adjustment would require an increase
or decrease of at least one-half of 1% in the Purchase Price Percentage; 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. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11, but for the first
sentence of this Section 11(e), shall be made no later than the earlier of (i) three days from the date of the transaction that
requires such adjustment or (ii) the Final Expiration Date.

 

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

 

(g)       All
Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price Percentage under this Agreement
shall evidence the right to purchase, at the adjusted Purchase Price Percentage, the number of Common Shares (or other securities)
purchasable from time to time under this Agreement upon exercise of the Rights, all subject to further adjustment as provided in
this Agreement.

 

(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 Section 11(b) and (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 Common Shares (calculated to the nearest
one onetenth of a Common Share) obtained by (i) multiplying (x) the number of one Common Share covered by a Series A Right immediately
prior to this adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price and (ii)
dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

 

    18

     

    

 

(i)       The
Company may elect on or after the date of any adjustment of the Purchase Price or Purchase Price Percentage to adjust the number
of Series A Rights, in substitution for any adjustment in the number of Common Shares purchasable upon the exercise of a Series
A Right. Each of the Series A Rights outstanding after such adjustment of the number of Series A Rights shall be exercisable for
the number of Common Shares for which a Series A Right was exercisable immediately prior to such adjustment. Each Series A Right
held of record prior to such adjustment of the number of Series A Rights shall become that number of Rights (calculated to the
nearest one tenthousandth) obtained by multiplying the number one by the Purchase Price in effect immediately prior to adjustment
of the Purchase Price and then dividing such amount 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 Series A Rights, indicating the record
date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on
which the Purchase Price is adjusted or any day thereafter, but, if the Series A Right Certificates have been issued on or after
the Distribution Date, shall be at least three days later than the date of the public announcement. If Series A Right Certificates
have been issued on or after the Distribution Date, upon each adjustment of the number of Series A Rights pursuant to this Section
11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Series A Right Certificates
on such record date Series A Right Certificates evidencing, subject to Section 14, the additional Series A 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 Series A Right Certificates held by such holders prior to the date of
adjustment, and upon surrender thereof, if required by the Company, new Series A Right Certificates evidencing all the Series A
Rights to which such holders shall be entitled after such adjustment. Series A Right Certificates so to be distributed shall be
issued, executed and countersigned in the manner provided for in this Agreement, may bear, at the option of the Company, the adjusted
Purchase Price or Purchase Price Percentage, and shall be registered in the names of the holders of record of Series A Right Certificates
on the record date specified in the public announcement.

 

(j)       Irrespective
of any adjustment or change in the Purchase Price, the Purchase Price Percentage or the number of Common Shares issuable upon the
exercise of the Rights and the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price,
the Purchase Price Percentage and the number of Common Shares which were expressed in the initial Right Certificates issued under
this Agreement.

 

(k)       Before
taking any action that would cause an adjustment reducing the Purchase Price below the then par value, if any, of the Common Shares
issuable upon exercise of the Rights, the Company shall take such corporate action, if any, which may, in the opinion of its counsel,
be necessary in order that the Company may validly and legally issue fully paid and nonassessable Common Shares at such adjusted
Purchase Price.

 

    19

     

    

 

(l)       In
any case in which this Section 11 shall require that an adjustment in the Purchase Price or Purchase Price Percentage be made effective
as of a record date for a specified event, the Company may elect to defer until the occurrence of such event the issuing to the
holder of any Right exercised after such record date the Common Shares and other capital stock or securities of the Company, if
any, issuable upon such exercise over and above the Common Shares and other capital stock or securities of the Company, if any,
issuable upon such exercise on the basis of the Purchase Price or Purchase Price Percentage 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 reductions in the Purchase Price
or Purhase Price Percentage, in addition to those adjustments expressly required by this Section 11, as and to the extent that
in their sole discretion a majority of the Continuing Directors (or, if there are no Continuing Directors, the Board of Directors
of the Company) shall determine to be advisable in order that any (i) consolidation or subdivision of the Common Shares, (ii) issuance
wholly for cash of any of the Common Shares at less than the current market price, (iii) issuance wholly for cash of Common Shares
or securities which by their terms are convertible into or exchangeable for Common Shares, (iv) dividends on Common Shares payable
in Common Shares or (v) issuance of rights, options or warrants referred to in paragraph (b) of this Section 11, hereafter made
by the Company to holders of its Common Shares shall not be taxable to such shareholders.

 

(n)       The
Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 23, 24 or 27, take
(or permit any Subsidiary of the Company to take) any action if at the time such action is taken it is reasonably foreseeable that
such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights unless such action
is approved by the Board of Directors of the Company at a time when a majority of the directors then serving are Continuing Directors.

 

(o)       Anything
in this Agreement or the Rights 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 or pay any dividend on the Common Shares payable in Common Shares
or (ii) effect a subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise) into a greater
or lesser number of Common Shares, then in any such case (x) the number of Common Shares purchasable after such event upon proper
exercise of each Series A Right shall be determined by multiplying the number of Common Shares so purchasable immediately prior
to such event by a fraction, the numerator of which is the number of Common Shares outstanding immediately after such event and
the denominator of which is the number of Common Shares outstanding immediately before such event and (y) each Common Share outstanding
immediately before such event shall have issued with respect to it that number of Rights which each Common Share outstanding immediately
prior to such event had issued with respect to it. The adjustments provided for in this Section 11(o) shall be made successively
whenever such a dividend is declared or paid or such a subdivision, combination or consolidation is effected. If an event occurs
which would require an adjustment under Section 11(a)(ii) and this Section 11(o), the adjustments provided for in this Section
11(o) shall be in addition and prior to any adjustment required pursuant to Section 11(a)(ii).

 

    20

     

    

 

(p)       If
any adjustment in the Purchase Price pursuant to this Section 11 would not be permitted by law or under the Company's Articles
of Incorporation, no issuance of securities or distribution of evidences of indebtedness or other assets or subscription rights
or warrants, as the case may be, that would require such an adjustment but for the limitations established by law or the Company's
Articles of Incorporation shall be made by the Company.

 

Section 12.
Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in this Agreement,
the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting
for such adjustment, (b) promptly file with the Rights Agent and with the transfer agent for the Common Shares a copy of such certificate
and (c) at any time after the Distribution Date, mail a brief summary thereof to each holder of record of a Right Certificate in
accordance with Section 25. The Rights Agent shall be fully protected in relying on such certificate and on any adjustment therein
contained.

 

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

 

(a)       In
the event, after the Distribution Date or within 15 days prior thereto, directly or indirectly,

 

(w)       the
Company shall consolidate with, or merge with an into, any other Person (other than a Subsidiary of the Company), and the Company
shall not be the continuing or surviving corporation of such consolidation or merger,

 

(x)       any
Person (other than a Subsidiary of the Company) shall consolidate with the Company, or merge with and into the Company and the
Company shall be the continuing or surviving corporation of such merger and, in connection with such consolidation or merger, all
or part of the outstanding Common Shares of the Company held by existing shareholders of the Company shall be changed into or exchanged
for stock or other securities of any other Person (or the Company) or money or any other property,

 

(y)       The
Company shall effect a statutory share exchange with the outstanding Common Shares of the Company being exchanged for stock or
other securities of any other Person, money or other property, or

 

(z)       the
Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one or a series
of related 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 or Persons (other than the Company or one or more of its wholly owned Subsidiaries),
then, and in each such case (except as may be contemplated by Section 13(e)), proper provision shall be made so that (i) each holder
of a Series B Right (except as otherwise provided herein) shall thereafter have the right to receive, upon the exercise thereof
by payment of the then current Purchase Price in accordance with the terms of this Agreement, such number of validly authorized
and issued, fully paid, nonassessable and freely tradeable Common Shares (and/or fraction of shares thereof) of the Principal Party
(as hereinafter defined), not subject to any liens, encumbrances, rights of first refusal or adverse claims, as shall be equal
to the result obtained by dividing the then current Purchase Price for the Series B Right by 50% of the then current per share
market price of the Common Shares of such Principal Party (determined pursuant to Section 11(d)) on the date of consummation of
such Section 13 Event; (ii) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such merger, consolidation,
statutory share exchange, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (iii) the
term "Company" shall thereafter be deemed to refer to such Principal Party; and (iv) such Principal Party shall take
such steps (including, but not limited to, the reservation of a sufficient number of its Common Shares to permit the exercise of
all outstanding Rights) in connection with the 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 its Common Shares thereafter deliverable
upon the exercise of the Rights.

 

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(b)       "Principal
Party" shall mean:

 

(i)       in
the case of any transaction described in clauses (w), (x) or (y) of Section 13(a), the Person that is the issuer of any securities
into which Common Shares of the Company are converted in such merger, consolidation or exchange, or if no securities are so issued,
the Person that is the other party to such merger, consolidation or exchange; and

 

(ii)       in
the case of any transaction described in clause (z) of Section 13(a), the Person that is the party receiving the greatest portion
of the assets or earning power transferred pursuant to such transaction or transactions; provided, however, that
in any such case, (1) if the Common Shares of such Person are not at such time or have not been continuously over the preceding
12 month period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another
Person the Common Shares of which are and have been so registered, "Principal Party" shall refer to such other Person,
and (2) in case such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Shares of two or more
of which are and have been so registered, "Principal Party" shall refer to whichever of such Persons is the issuer of
the Common Shares having the greatest aggregate market value.

 

(c)       The
Company shall not consummate any Section 13 Event unless the Principal Party shall have a sufficient number of authorized, unreserved
Common Shares which have not been issued or are held in treasury to permit the exercise in full of the Rights in accordance with
this Agreement and unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent
a supplemental agreement providing for the terms set forth in paragraphs (a) and (b) of this Section 13 and further providing that,
as soon as practicable after the date of any Section 13 Event, the Principal Party will:

(i)       prepare
and file a registration statement under the Act, with respect to the Rights and the securities purchasable upon exercise of the
Rights, on an appropriate form, and use its best efforts to cause such registration statement to (A) become effective as soon as
practicable after such filing and (B) remain effective (with a prospectus at all times meeting the requirements of the Act) until
the earlier of (1) the date as of which the Rights are no longer exercisable for such securities or (2) the Final Expiration Date;

 

    22

     

    

 

(ii)       take
such action as may be appropriate under, or to ensure compliance with, the securities or "blue sky" laws of the various
states in connection with the exercisability of the Rights; and

 

(iii)       deliver
to holders of the Rights historical financial statements for the Principal Party and each of its Affiliates which comply in all
respects with the requirements for registration on Form 10 under the Exchange Act.

 

(d)       The
Company shall not enter into any transaction of the kind referred to in this Section 13 if at the time of such transaction there
are any rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a result of the consummation
of such transaction, would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights. Without
limiting the generality of the preceding sentence, in case the Principal Party which is to be a party to a transaction of the kind
referred to in this Section 13 has a provision in any of its authorized securities or in its articles of incorporation or by-laws
or other instrument governing its corporate affairs, which provision would have the effect of (i) causing such Principal party
to issue, in connection with, or as a consequence of, the consummation of a transaction of the kind referred to in this Section
13, Common Shares of such Principal Party at less than the then current per share market price (determined pursuant to Section
11(d)) or securities exercisable for or convertible into Common Shares of such Principal Party at less than such then current market
price (other than to holders of Rights pursuant to this Agreement) or (ii) providing for any special payment, tax or similar provisions
in connection with the issuance of Common Shares of such Principal Party pursuant to the provisions of Section 13; then, in such
event, the Company shall not consummate any such transaction unless prior thereto the provision in question of such Principal Party
shall have been cancelled, waived or amended so as to avoid any of the effects referred to in clauses (i) and (ii), or the authorized
securities shall have been 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)       Notwithstanding
anything in this Agreement to the contrary, Section 13 shall not be applicable to a transaction described in Section 13(a) if (i)
such transaction is consummated with a Person or Persons who acquired Common Shares pursuant to a tender offer or exchange offer
for all outstanding Common Shares which complies with the provisions of clause (2) of Section 11(a)(ii)(A) (or a wholly owned Subsidiary
of any such Person or Person), (ii) the price per Common Share offered in such transaction is not less than the price per Common
Share paid to all holders of Common Shares whose shares were purchased pursuant to such tender offer or exchange offer and (iii)
the form of consideration being offered to the remaining holders of Common Shares pursuant to such transaction is the same as the
form of consideration paid pursuant to such tender offer or exchange offer. Upon consummation of any such transaction contemplated
by this Section 13(e), all Rights not yet exercised hereunder shall expire.

 

The provisions of
this Section 13 shall similarly apply to successive mergers, consolidations, statutory share exchanges or sales or other transfers.

 

    23

     

    

 

Section 14. Fractional Rights
and Fractional Shares.

 

(a)       The
Company may, but shall not be required to issue fractions of Rights or to distribute Right Certificates which evidence fractional
Rights. In lieu of such fractional Rights, there may 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, if the Rights are
not listed or admitted to trading on the New York Stock Exchange, 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 NASDAQ or such
other 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 a majority of the Continuing
Directors (or if there are no Continuing Directors, 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 in good faith by a majority of
the Continuing Directors (or if there are no Continuing Directors, the Board of Directors of the Company) shall be used in lieu
of the closing price for such day.

 

(b)       The
Company may, but shall not be required to issue fractions of Common Shares upon exercise of the Series A Rights or to distribute
certificates which evidence fractions of Common Shares. In lieu of fractional Common Shares, the Company may pay to the registered
holders of Series A Rights at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction
of the current market value of one Common Share. For purposes of this Section 14(b), the current market value of a Common Share
shall be the closing price of a Common Share (as determined pursuant to Section 11(d)(ii)) for the Trading Day immediately prior
to the date of such exercise.

 

(c)       The
holder of a Right by the acceptance of the Rights expressly waives such holder's right to receive any fractional Rights or any
fractional shares (except as provided above) upon exercise of a Right.

 

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, are vested in the respective registered holders of the Right Certificates (and, prior to the Distribution
Date, the registered holders of the Common Shares); and any registered holder of any Right Certificate (or, prior to the Distribution
Date, of any Common Share), 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 Shares), may, in such holder's own behalf and for such holder's own benefit, enforce, and
may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such
holder's right to exercise the Rights evidenced by such Right Certificate (or, prior to the Distribution Date, the Common Shares
certificate) in the manner provided in such Right Certificate 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 this Agreement.

 

    24

     

    

 

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 Shares;

 

(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 offices of the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper instrument of
transfer;

 

(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 associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding
any notations of ownership or writing on the Right Certificate or the associated Common Shares certificate made by anyone other
than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected
by any notice to the contrary;

 

(d)       the
Company may issue Rights after the Record Date but prior to the Distribution Date as provided in this Agreement; and

 

(e)       notwithstanding
anything in this Agreement or the Rights Certificates to the contrary, the Company, the Rights Agent, the Board of Directors of
the Company and the Continuing Directors shall not have any liability to any holder of a Right or other Person as a result of the
inability of the Company or the Rights Agent to perform any of its obligations under this Agreement by reason of any preliminary
or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental, regulatory
or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental
authority prohibiting or otherwise restraining performance of such obligation.

 

Section 17.
Right Certificate Holder Not Deemed a Shareholder. 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 Common Shares or any other securities of the Company which may
at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained in this Agreement or in
any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a shareholder
of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders
(except as provided in Section 25), or to receive dividends or subscriptions rights, or otherwise, until the Right or Rights evidenced
by such Right Certificates shall have been exercised in accordance with the provisions of this Agreement.

 

    25

     

    

 

Section 18.
Concerning the Rights Agent.

 

(a)       The
Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it under this Agreement 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 under this Agreement. Prior to transmitting to the
Company the Purchase Price derived from the exercise of the Right Certificates, the Rights Agent is authorized to deduct therefrom
an amount sufficient to pay in full any outstanding fees and expenses incurred in the 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 (including
the costs and expenses of defending against any claim of liability), 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.

 

(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 for the Common Shares
or for 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 advise of its counsel as
set forth in Section 20.

 

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

 

(a)       Any
corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any
corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party,
or any corporation succeeding to the corporate trust or stock transfer business 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 to this Agreement; provided, however, that such corporation would be eligible for
appointment as a successor Rights Agent under the provisions of Section 21. If 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.

 

    26

     

    

 

(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 imposed by this Agreement upon the following
terms and conditions, by all of which the Company and holders of Right Certificates (or, prior to the Distribution Date, the Common
Shares certificates), by their acceptance of the Rights, 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.

 

(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
(including, without limitation , the identify of any Acquiring Person and the determination of the "current per share market
price") be proved or established by the Company prior to taking or suffering any action under this Agreement, 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 any one of the Chairman, the Chief Executive Officer, the President, any Vice President
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 to the Company and any other Person 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.

 

    27

     

    

 

(e)       The
Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery of
this Agreement (except the due execution 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 this Agreement) or any adjustment in the terms of the Rights (including the manner, method
or amount thereof), 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 actual notice that such change or adjustment is required);
nor shall it by any act under this Agreement be deemed to make any representation or warranty as to the authorization or reservation
of any securities to be issued pursuant to this Agreement or any Right Certificate or as to whether any Common Shares or other
security 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.

 

(g)       The
Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties under this
Agreement from any one of the Chairman, the Chief Executive Officers, the President, any Vice President 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 to be taken by it in good faith in accordance with instructions of any such officer or for delay in
acting while waiting for those instructions.

 

(h)       The
Rights Agent and any shareholder, 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 or its Subsidiaries
may be interested, or contract with or lend money to the Company or its Subsidiaries or otherwise act as fully and freely as though
it were not the Rights Agent under this Agreement. Nothing in this Agreement shall preclude the Rights Agent from acting in any
other capacity for the Company or its Subsidiaries 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 under this Agreement
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)       No
provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties under this Agreement or in the exercise of its rights or powers if there shall be reasonable
grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably
assured to it.

 

(k)       If,
with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the form of assignment or form
of election to purchase, as the case may be, has either not been duly completed and executed or indicates an affirmative response
to enumerated clause 1 and/or 2 on the reverse side of the applicable Right Certificate, the Rights Agent shall not take any further
action with respect to such requested exercise or transfer without first consulting with the Company.

 

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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 Shares by registered
or certified mail, and, after 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 Shares by registered or certified mail, and, after 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 such holder's 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) a corporation organized and doing business under the laws of
the United States or of the States of Colorado or New York (or of any other state of the United States so long as such corporation
is authorized to do business in the States of Colorado or New York), in good standing, having an office in the States of Colorado
or 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 or (b) an affiliate of a corporation described in clause (a) of this sentence. 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 under this Agreement, 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 Shares and, after 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, 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 the such form as may be approved by its Board
of Directors to reflect any adjustment or change in the Purchase Price, the Purchase Price Percentage or the number or kind or
class of Common Shares or other securities or property purchasable under the Right Certificates made in accordance with the provisions
of this Agreement.

 

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Section 23. Redemption.

 

(a)       Subject
to the provisions of Section 27, the Board of Directors of the Company may, at its option, at any time prior to the Close of Business
on the Distribution Date redeem all but not less than all of the then outstanding Series A Rights or Series B Rights, or all outstanding
Series A and Series B Rights at a redemption price of $.0001 per Right, appropriately adjusted to reflect any stock split, stock
dividend or similar transaction occurring after the date of this Agreement (such redemption price being hereinafter referred to
as the "Redemption Price"); provided, however, that for the purposes hereof the Board of Directors of the
Company shall be entitled to so redeem the Rights after the time at which any Person first becomes an Acquiring Person only if
a majority of the directors then serving are Continuing Directors. The Company may, at its option, pay the Redemption Price in
cash, Common Shares of the Company (based on the current per share market price of the Common Shares at the time of redemption)
or any other form of consideration deemed appropriate by the Board of Directors. The redemption of the Rights by the Board of Directors
may be made effective at such time and on such basis and with such conditions as the Board of Directors and the Company shall not
have any liability to any person as a result of the redemption of Rights pursuant to the terms of this Section 23.

 

(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, 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 for each Right so held. Promptly after the action
of the Board of Directors ordering the redemption of the Rights, the Company shall give notice of such redemption to the Rights
Agent and the holders of the then outstanding Rights by mailing such notice to all such holders 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 Shares; provided, however, that the failure to give, or any defect in, any such notice shall not affect
the validity of such redemption. Any notice which is mailed in the manner provided in this paragraph shall be deemed given whether
or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption
Price will be made. Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights
at any time except as specifically set forth in this Section or in Section 24 or in connection with the purchase of Common Shares
prior to the Distribution Date.

 

Section 24.
Exchange.

 

(a)       The
Board of Directors of the Company may (at a time when a majority of the directors then serving are Continuing Directors), at its
option, at any time after a Person becomes an Acquiring Person or a Tender Offer Person, exchange all or part of the then outstanding
and exercisable Series A Rights and/or Series B. Rights (which shall not include Rights that have become void pursuant to the provisions
of Section 11(a) (ii)) for Common Shares, with each Right to be exchanged for one Common Share (such number of shares being hereinafter
referred to as the "Exchange Ratio"). The Exchange Ratio shall be appropriately adjusted to reflect any stock split,
stock dividend or similar transaction affecting the Common Shares that occurs after the Adjustment Date. Notwithstanding the foregoing,
the Board of Directors of the Company shall not be empowered to effect such exchange at any time after any Person (other than (1)
the Company, (2) any wholly owned Subsidiary of the Company or (3) any employee benefit plan of the Company or of any Subsidiary
of the Company), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the
Common Shares then outstanding.

 

    30

     

    

 

(b)       Immediately
upon 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 Common Shares 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
promptly shall mail a notice of any such exchange to all of the holders of such Rights 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 Common Shares
for Rights will be effected and, in the event of any partial exchange, the number of Rights 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)) held by each holder of Rights.

 

(c)       In
any exchange pursuant to this Section 24, the Company, at its option, may substitute common share equivalents, as such term is
defined in Section 11(a)(iii)(3)(C)), for Common Shares exchangeable for Rights, at the initial rate of one common share equivalent
for each Common Share, as appropriately adjusted to reflect stock splits, stock dividends or similar transactions affecting the
Common Shares that occur after the date of this Agreement.

 

(d)       In
the event that there shall not be sufficient Common Shares or common share equivalents, authorized, unissued and unreserved to
permit any exchange or Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may
be necessary to authorize additional Common Shares or common share equivalents for issuance upon exchange of the Rights.

 

(e)       The
Company may, but shall not be required to issue fractions of Common Shares or to distribute certificates which evidence fractional
Common Shares. In lieu of such fractional Common Shares, the Company may pay to the registered holders of the Right Certificates
with regard to which such fractional Common Shares would otherwise be issuable an amount in cash equal to the same fraction of
the current market value of a whole Common Share. For the purposes of this paragraph (e), the current market value of a whole Common
Share shall be the closing price of a Common Share (as determined pursuant to Section 11) for the Trading Day immediately prior
to the date of exchange pursuant to this Section. The Board of Directors and the Company shall not have any liability to any Person
as a result of the exchange of Rights pursuant to the terms of this Section.

 

    31

     

    

 

Section 25. Notice of Certain
Events.

 

(a)       In
case the Company shall propose, at any time after the Distribution Date, (i) to pay any dividend payable in stock of any class
to the holders of its Common Shares or to make any other distribution to the holders of its Common Shares, or (ii) to offer to
the holders of its Common Shares rights or warrants to subscribe for or to purchase any additional Common Shares or shares of stock
of any class or any other securities, rights or options, or (iii) to effect any reclassification of its Common Shares (other than
a reclassification involving only the subdivision of outstanding Common Shares), or (iv) to effect any consolidation or merger
into or with any other Person (other than a wholly owned Subsidiary of the Company), or to effect any sale or other transfer (or
to permit one or more of its Subsidiaries to effect any sale or other transfer), on one or a series of related transactions, of
50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any other Person or Persons
(other than the Company and/or any of its wholly owned Subsidiaries), or (v) to effect any statutory share exchange with the outstanding
Common Shares of the Company being exchanged for stock or other securities of any other corporation or money or other property,
or (vi) to effect the liquidation, dissolution or winding up of the Company, or (vii) to declare or pay any dividend on the Common
Shares payable in Common Shares or to effect a subdivision, combination or consolidation of the Common Shares (by reclassification
or otherwise), then, in each such case, the Company shall give to each holder of a Right Certificate, to the extent feasible and
in accordance with Section 26, a notice of such proposed action, which shall specify the record date for the purposes of such stock
dividend, distribution of rights or warrants, or the date on which such reclassification, consolidation, merger, exchange, sale,
transfer, liquidation, dissolution, or winding up is to take place and the date of participation therein by the holders of the
Common Shares, 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 Common Shares for purposes of such action,
and in the case of any such other action, at least l0 days prior to the date of the taking of such proposed action or the date
of participation therein by the holders of the Common Shares, whichever shall be the earlier.

 

(b)       In
case any Section ll(a)(ii) Event shall occur, then, in any such case, the Company shall as soon as practicable thereafter give
to each holder of a Right Certificate, in accordance with Section 26, a notice of the occurrence of such event, which shall specify
the event and the consequences of the event to holders of Rights under Section ll(a) (ii).

 

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:

 

FORTITUDE GOLD CORPORATION

2886 Carriage Manor Point,

Colorado Springs, Colorado 80906

 

    32

     

    

 

Subject to the provisions of Section 2l,
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:

 

Computershare Trust Company, N.A..

350 Indiana St., Suite 800

Golden, CO 80401-5099

 

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, postageprepaid, addressed to such holder at the address of such holder as shown on the registry books
of the Company.

 

Section 27.
Supplements and Amendments. The Company may and the Rights Agent shall, if so directed by the Company, from time to time
supplement or amend this Agreement, provided that at the time of such supplement or amendment no Person has become an Acquiring
Person or a majority of the directors are Continuing Directors, without the approval of any holders of Common Shares or Right Certificates
in order (i) to extend the Final Expiration Date or the period during which the Rights may be redeemed, notwithstanding anything
to the contrary provided in clause (iv) hereof, (ii) to cure any ambiguity, or to correct or supplement any provision contained
in this Agreement which may be defective or inconsistent with any other provisions in this Agreement, (iii) prior to the Distribution
Date, to otherwise change or supplement any provision in this Agreement in any manner which the Company may deem necessary or desirable,
or (iv) following the Distribution Date, to otherwise change or supplement any provision in this Agreement in any manner which
the Company may deem necessary or desirable and which shall not adversely affect the interests of the holders of Right Certificates
(other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person). Without limiting the foregoing, the Company
may at any time prior to such time as any Person becomes an Acquiring Person or a Tender Offer Person amend this Agreement to change
the thresholds set forth in Sections l(a) and 3(a) of this Agreement.

 

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.

 

(a)            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 registered holders of Common Shares) any legal or equitable
right, remedy or claim under this Agreement. 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 registered holders of Common
Shares).

 

    33

     

    

 

(b)           
The Board of Directors of the Company (and/or, as provided for in this Agreement, the Continuing Directors) shall have the
exclusive power and total and complete authority to administer this Agreement and to exercise all rights and powers specifically
granted to the Board of Directors or the Company (and/or, as provided for in this Agreement, a majority of the Continuing Directors,
as the case may be) or necessary or advisable in the administration of this Agreement, including without limitation the right and
power to interpret this Agreement and to make conclusively all determinations deemed necessary or advisable for the administration
of this Agreement. All such acts, calculations, interpretations and determinations (including, for purposes of clause (y) below,
all omissions with respect to the foregoing) that are done or made by the Board of Directors and/or a majority of the Continuing
Directors, as the case may be, in good faith shall (x) be final, conclusive and binding on the Company, the Rights Agent and the
holders of the Rights and all other parties and (y) not subject the Board of Directors or the Continuing Directors to any liability
to the holders of the Rights or any other party.

 

Section 30.
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; provided,
however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction
is held by such court or authority to be invalid, void or unenforceable and the Board of Directors of the Company determines, at
a time when a majority of the directors then serving are Continuing Directors, in their good faith judgment that severing the invalid
language from this Agreement would adversely affect the purpose or effect of this Agreement, the right of redemption set forth
in Section 23 shall be reinstated and shall not expire until the close of business on the tenth day following the date of such
determination by the Board of Directors.

 

Section 3l.
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 Colorado and for all purposes shall be governed by and construed in accordance with the laws of the State
of Colorado.

 

Section 32.
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 33.
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 of this Agreement.

 

    34

     

    

 

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

 

	 	FORTITUDE GOLD CORPORATION
	 	 
	 	By	                 
	 	 	Jason Reid, President
	 	 
	 	COMPUTERSHARE TRUST COMPANY, N.A..
	 	 
	 	By	 

 

    35

     

    

 

SERIES A RIGHTS CERTIFICATE

 

FORTITUDE GOLD CORPORATION

 

	Certificate No. R -	             Rights

 

NOT EXERCISABLE
AFTER _________, OR SUCH EARLIER DATE AS THE BOARD OF DIRECTORS ORDERS REDEMPTION OR EXCHANGE OF THE RIGHTS. THE RIGHTS ARE SUBJECT
TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.000l PER RIGHT (SUBJECT TO ADJUSTMENT) AND TO EXCHANGE ON THE TERMS SET FORTH
IN THE RIGHTS AGREEMENHT. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS BENEFICIALLY OWNED BY A PERSON
WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT) AND SUBSEQUENT HOLDERS OF SUCH RIGHTS MAY BECOME NULL AND VOID.

 

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 September __, 2020 (the “Rights
Agreement”) between Fortitude Gold Corporation, a Colorado corporation (the "Company"), and Computershare Trust
Company, N.A.. (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. (Denver, Colorado) on _______ at the office of or offices of the
Rights Agent designated for such purpose, or of its successor as Rights Agent, one share of the Common Stock (the "Common
Shares") of the Company, at a purchase price equal to 20% of the current per share market price of the Company's Common Stock,
computed in accordance with the Rights Agreement (the "Purchase Price"), upon presentation and surrender of this Right
Certificate with the Form of Election to Purchase duly completed and executed.

 

As provided in
the Rights Agreement, the number of Rights evidenced by this Rights Certificate, the Purchase Price and the number of shares of
Common Stock which may be purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification
and adjustment upon the happening of certain events.

 

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 which contains a full description of the rights, limitations, obligations,
duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates (which limitations of
rights include the suspension of the exercisability of such Rights under certain circumstances specified in the Rights Agreement).
Copies of the Rights Agreement are on file with the Secretary at the principal executive office of the Company and will be mailed
without charge by the Company or the Rights Agent to the holder of this certificate promptly following receipt by the Company or
the Rights Agent of a written request therefor.

 

    

     

    

  

Upon the occurrence
of a Section ll(a)(ii) Event (as such term is defined in the Rights Agreement), any Rights evidenced by this Right Certificate
that are beneficially owned by (i) an Acquiring Person, a Tender Offer Person or an Associate or Affiliate of such Acquiring Person
or Tender Offer Person (as such terms are defined in the Rights Agreement), (ii) a transferee of any such Acquiring Person, Tender
Offer Person or Associate or Affiliate who becomes a transferee after the Acquiring Person or Tender Offer Person becomes such
or (iii) under certain circumstances specified in the Rights Agreement, a transferee of such Acquiring Person, Tender Offer Person
or Associate or Affiliate who becomes a transferee prior to or concurrently with the Acquiring Person or Tender Offer Person becoming
such, shall be null and void from and after the occurrence of such Section ll(a)(ii) Event.

 

This Right Certificate,
with or without other Right Certificates, upon surrender at the office or offices 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 Common Stock as the Rights evidenced by the Right Certificate or Right Certificates
surrendered. 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 Rights not exercised.

 

Subject to the provisions
of the Rights Agreement, the Rights evidenced by this Certificate (i) may, but are not required to, be redeemed by the Company
(but, in certain events, only if a majority of the directors then serving are Continuing Directors, as defined in the Rights Agreement)
at a redemption price of $.000l per Right, subject to adjustment as provided in the Rights Agreement, payable in cash, Common Shares
(as such term is defined in the Rights Agreement) or any other form of consideration deemed appropriate by the Board of Directors,
and (ii) may, but are not required to, be exchanged by the Company (if a majority of the directors then serving are Continuing
Directors) in whole or in part for Common Shares or other property. The Board of Directors of the Company and the Company shall
not have any liability to any person as a result of the redemption or exchange of the Rights pursuant to the provisions of the
Rights Agreement.

 

Fractional Shares,
if required, may be issued upon the exercise of any Right or Rights evidenced hereby. In the alternative, the Company may, in lieu
of issuing Fractional Shares, redeem the Fractional Shares for cash or other property 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 Common Shares
or of any other securities of the Company which may at any time be issuable on the exercise 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 shareholder of
the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders
(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 as provided in the Rights Agreement.

 

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

 

WITNESS the manual
or facsimile signature of the proper officer of the Company.

 

   Dated:_______________________

 

	 	FORTITUDE GOLD CORPORATION
	 	 
	 	By:	                  

 

Title: ____________________________________

 

Countersigned:

 

Computershare Trust Company, N.A..

  

	By: 	 	 
	 	   Authorized Signature	 

 

     

     

    

  

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 the within Right Certificate on the books of the within-named Company, with full power of substitution.

 

Please insert social
security or other identifying number of Transferee: _________________

  

Dated: ___________

 

	 	 
	 	Signature

  

Signature Guaranteed:

  

The signature must
be medallion guaranteed by a financial institution (commercial bank, stockbroker, savings and loan, credit union or trust company)
that is a participant in the Securities Transfer Agents Medallion Program, pursuant to Rule 17Ad-15 under the Securities Exchange
Act of 1934, as amended. A notary public is not sufficient.).

 

     

     

    

 

CERTIFICATE

  

The undersigned hereby
certifies (after due inquiry and to the best of its knowledge) by checking the appropriate boxes that:

 

(l) this Right Certificate

 

[    ] is

[    ] is not

 

being sold, assigned and transferred by
or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are
defined in the Rights Agreement); and

 

(2) the undersigned

 

[    ] did

[    ] did not

 

acquire the Rights evidenced by this Right
Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of an Acquiring
Person.

  

	 	 
	 	Signature

 

NOTICE

 

The signature of the
foregoing Assignment and Certificate must correspond to the name as written upon the face of this Right Certificate in every particular,
without alteration or enlargement or any change whatsoever.

 

     

     

    

 

FORM OF ELECTION TO EXERCISE

 

(To be executed if holder desires to exercise

Rights represented by the Right Certificate)

  

To FORTITUDE GOLD CORPORATION

 

The undersigned hereby
irrevocably elects to exercise __________ Rights represented by this Right Certificate to purchase the Common Shares issuable upon
the exercise of such Rights (or such other securities of the Company or of any other person which may be issuable upon exercise
of the Rights) and requests that certificates for such shares be issued in the name of:

 

__________________________________________

(Please print name and address of transferee)

 

__________________________________________

 

__________________________________________

 

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 print name and address of transferee)

 

__________________________________________

 

__________________________________________

 

Please insert social security

or other identifying number: ______________

 

Dated: ______________

 

	 	 
	 	Signature

  

Signature Guaranteed:

  

The signature must
be medallion guaranteed by a financial institution (commercial bank, stockbroker, savings and loan, credit union or trust company)
that is a participant in the Securities Transfer Agents Medallion Program, pursuant to Rule 17Ad-15 under the Securities Exchange
Act of 1934, as amended. A notary public is not sufficient.)

 

     

     

    

 

CERTIFICATE

  

The undersigned hereby
certifies (after due inquiry and to the best of its knowledge) by checking the appropriate boxes that:

 

(l) the Rights evidenced
by this Right Certificate

 

[    ] are

[    ] are not

 

being exercised by or on behalf of a Person
who is or was an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights
Agreement); and

 

(2) the undersigned

 

[    ] did

[    ] did not

 

acquire the Rights evidenced by this Right
Certificate from any Person who is, was or subsequently became an Acquiring Person or an affiliate or Associate of an Acquiring
Person.

 

	 	 
	 	Signature

  

NOTICE

 

The signature of the
foregoing Election to Exercise and Certificate must correspond to the name as written upon the face of this Right Certificate in
every particular, without alternation or enlargement or any change whatsoever.

  

     

     

    

 

 

SERIES B RIGHTS CERTIFICATE

 

FORTITUDE GOLD CORPORATION

 

	Certificate No. R-	 	           
    Rights

 

NOT EXERCISABLE
AFTER __________, OR SUCH EARLIER DATE AS THE BOARD OF DIRECTORS ORDERS REDEMPTION OR EXCHANGE OF THE RIGHTS. THE RIGHTS ARE SUBJECT
TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.000l PER RIGHT (SUBJECT TO ADJUSTMENT) AND TO EXCHANGE ON THE TERMS SET FORTH
IN THE RIGHTS AGREEMENHT. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS BENEFICIALLY OWNED BY A PERSON
WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT) AND SUBSEQUENT HOLDERS OF SUCH RIGHTS MAY BECOME NULL AND VOID.

 

This certifies that
 , or registered assigns, is the registered owner of the number of Rights set forth above. The Rights are subject to
the terms, provisions and conditions of the Rights Agreement dated September __, 2020 (the “Rights Agreement”) between
Fortitude Gold Corporation, a Colorado corportaion (the “Company”), and Computershare Trust Company, N.A.. (the “Rights
Agent”). The Rights may be exercised at the office or offices of the Rights Agent designated for such purpose, or of its
successor as Rights Agent, or any other office designated by the Company, by payment of $100 for each Right exercised (the Purchase
Price) upon presentation and surrender of this Right Certificate with the Form of Election to Purchase duly completed and executed.

 

The Rights represented
by this Certificate, if not exercised, redeemed or exchanged in accordance with the Rights Agreement, will expire at 5:00 p.m.
(Mountain Time) on __________.

 

In the event, after
the Distribution Date (as that term is defined in the Rights Agreement) or within 15 days prior thereto, directly or indirectly,

 

(a)       the
Company shall consolidate with, or merge with an into, any other Person (other than a Subsidiary of the Company), and the Company
shall not be the continuing or surviving corporation of such consolidation or merger,

 

(b)       any
Person (other than a Subsidiary of the Company) shall consolidate with the Company, or merge with and into the Company and the
Company shall be the continuing or surviving corporation of such merger and, in connection with such consolidation or merger, all
or part of the outstanding Common Shares of the Company held by existing shareholders of the Company shall be changed into or exchanged
for stock or other securities of any other Person (or the Company) or money or any other property,

 

    

     

    

 

(c)       The
Company shall effect a statutory share exchange with the outstanding Common Shares of the Company being exchanged for stock or
other securities of any other Person, money or other property, or

 

(d)       the
Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one or a series
of related 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 or Persons (other than the Company or one or more of its wholly owned Subsidiaries),

 

then, and in each such case, proper provision
shall be made so that the holder of this Series B Right Certificate (except as otherwise provided in the Rights Agreement) shall
thereafter have the right to receive, upon the exercise thereof by payment of the then current Purchase Price in accordance with
the terms of the Rights Agreement, such number of validly authorized and issued, fully paid, non-assessable and freely tradeable
Common Shares (and/or fraction of shares thereof) of the Principal Party, not subject to any liens, encumbrances, rights of first
refusal or adverse claims, as shall be equal to the result obtained by dividing the Purchase Price for each Series B Right represented
by this Certificate by 50% of the then current per share market price of the Common Shares of such Principal Party (determined
pursuant to the Rights Agreement) on the date of such consolidation, merger or other event specified above.

 

Principal Party (except
as otherwise provided in the Rights Agreement means (i) in the case of any transaction described in clauses (a), (b) or (c) above,
the Person that is the issuer of any securities into which Common Shares of the Company are converted in such merger, consolidation
or exchange, or if no securities are so issued, the Person that is the other party to such merger, consolidation or exchange; and
(ii) in the case of any transaction described in (d) above, the Person that is the party receiving the greatest portion of the
assets or earning power transferred pursuant to such transaction or transactions.

 

Notwithstanding the
above, the Rights evidenced by this Certificate may not be exercised if a transaction described in (a), (b), (c), or (d) above
is with a person who acquired Common Shares through a tender offer or exchange offer for all outstanding Common Shares approved
by the Board of Directors of the Company in accordance with the terms of the Rights Agreement.

 

As provided in the
Rights Agreement, the number of Rights evidenced by this Rights Certificate, the Purchase Price and the securities which may be
purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the
happening of certain events.

 

    

     

    

 

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 which contains a full description of the rights, limitations, obligations,
duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates (which limitations of
rights include the suspension of the exercisability of such Rights under certain circumstances specified in the Rights Agreement).
Copies of the Rights Agreement are on file with the Secretary at the principal executive office of the Company and will be mailed
without charge by the Company or the Rights Agent to the holder of this certificate promptly following receipt by the Company or
the Rights Agent of a written request therefor.

 

Upon the occurrence
of a Section ll(a)(ii) Event (as such term is defined in the Rights Agreement), any Rights evidenced by this Right Certificate
that are beneficially owned by (i) an Acquiring Person, a Tender Offer Person or an Associate or Affiliate of such Acquiring Person
or Tender Offer Person (as such terms are defined in the Rights Agreement), (ii) a transferee of any such Acquiring Person, Tender
Offer Person or Associate or Affiliate who becomes a transferee after the Acquiring Person or Tender Offer Person becomes such
or (iii) under certain circumstances specified in the Rights Agreement, a transferee of such Acquiring Person, Tender Offer Person
or Associate or Affiliate who becomes a transferee prior to or concurrently with the Acquiring Person or Tender Offer Person becoming
such, shall be null and void from and after the occurrence of such Section ll(a)(ii) Event.

 

This Right Certificate,
with or without other Right Certificates, upon surrender at the office or offices 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 Common Stock as the Rights evidenced by the Right Certificate or Right Certificates
surrendered. 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 Rights not exercised.

 

Subject to the provisions
of the Rights Agreement, the Rights evidenced by this Certificate (i) may, but are not required to, be redeemed by the Company
(but, in certain events, only if a majority of the directors then serving are Continuing Directors, as defined in the Rights Agreement)
at a redemption price of $.000l per Right, subject to adjustment as provided in the Rights Agreement, payable in cash, Common Shares
(as such term is defined in the Rights Agreement) or any other form of consideration deemed appropriate by the Board of Directors,
and (ii) may, but are not required to, be exchanged by the Company (if a majority of the directors then serving are Continuing
Directors) in whole or in part for Common Shares or other property. The Board of Directors of the Company and the Company shall
not have any liability to any person as a result of the redemption or exchange of the Rights pursuant to the provisions of the
Rights Agreement.

 

Fractional Shares,
if required, may be issued upon the exercise of any Right or Rights evidenced hereby. In lieu of issuing Fractional Shares, cash
or other property may be paid 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 Common
Shares or of any other securities of the Company which may at any time be issuable on the exercise 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 shareholder of
the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders
(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 as provided in the Rights Agreement.

 

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

 

WITNESS the manual
or facsimile signature of the proper officer of the Company.

 

	Dated:  	 	 	 	
	 	 	 	FORTITUDE
    GOLD CORPORATION
	 	 	 	 
	 	 	 	 
	 	 	 	By:	                       
	 	 	 	 
	 	 	 	Title: 	 

 

	 	 
	Countersigned:	 
	 	 
	Computershare
    Trust Company, N.A..	 
	 	 
	 	 
	By:	                   	 
	 	Authorized Signature	 

 

    

     

    

 

[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 the within Right Certificate on the books of the within-named Company, with full power of substitution.

 

Please insert social
security or other identifying number of Transferee:                           

 

Dated:                   

 

	 	        
	 	Signature

 

Signature Guaranteed:

 

The signature must be
medallion guaranteed by a financial institution (commercial bank, stockbroker, savings and loan, credit union or trust company)
that is a participant in the Securities Transfer Agents Medallion Program, pursuant to Rule 17Ad-15 under the Securities Exchange
Act of 1934, as amended. A notary public is not sufficient.)

 

     

     

    

 

CERTIFICATE

 

The undersigned
hereby certifies (after due inquiry and to the best of its knowledge) by checking the appropriate boxes that:

 

(l) this Right Certificate

 

[    ] is

[    ] is not

 

being sold, assigned and transferred by
or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are
defined in the Rights Agreement); and

 

(2) the undersigned

 

[    ] did

[    ] did not

 

acquire the Rights evidenced by this Right
Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of an Acquiring
Person.

 

 

	 	        
	 	Signature

 

NOTICE

 

The signature of the
foregoing Assignment and Certificate must correspond to the name as written upon the face of this Right Certificate in every particular,
without alteration or enlargement or any change whatsoever.

 

    

     

    

 

FORM OF ELECTION TO EXERCISE

 

(To be executed if holder desires to exercise

Rights represented by the Right Certificate)

 

To FORTITUDE GOLD CORPORATION

 

The undersigned hereby
irrevocably elects to exercise __________ Rights represented by this Right Certificate to purchase the Common Shares issuable upon
the exercise of such Rights (or such other securities of the Company or of any other person which may be issuable upon exercise
of the Rights) and requests that certificates for such shares be issued in the name of:

 

	 		 
	 	(Please
    print name and address of transferee)	 
	 	 

                                                                                 
	 
	 	 	 
	 	 	 

 

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
    print name and address of transferee)	 
	 	 

                                                                                 
	 
	 	 	 
	 	 	 

 

	Please insert social security or other identifying number:	 	 

 

	Dated:	 	 

 

	 	        
	 	Signature

 

Signature Guaranteed:

 

The signature must
be medallion guaranteed by a financial institution (commercial bank, stockbroker, savings and loan, credit union or trust company)
that is a participant in the Securities Transfer Agents Medallion Program, pursuant to Rule 17Ad-15 under the Securities Exchange
Act of 1934, as amended. A notary public is not sufficient.).

 

    

     

    

 

CERTIFICATE

 

The undersigned
hereby certifies (after due inquiry and to the best of its knowledge) by checking the appropriate boxes that:

 

(l) the Rights evidenced
by this Right Certificate

 

[    ] are

[    ] are not

 

being exercised by or on behalf of a Person
who is or was an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights
Agreement); and

 

(2) the undersigned

 

[    ] did

[    ] did not

 

acquire the Rights evidenced by this Right
Certificate from any Person who is, was or subsequently became an Acquiring Person or an affiliate or Associate of an Acquiring
Person.

 

	 	        
	 	Signature

 

NOTICE

 

The signature
of the foregoing Election to Exercise and Certificate must correspond to the name as written upon the face of this Right Certificate
in every particular, without alternation or enlargement or any change whatsoever.

 

    

     

    

 

EXHIBIT B

 

FORTITUDE GOLD CORPORATION

SUMMARY OF SHAREHOLDER RIGHTS PLAN

 

On September __,
2020, the Board of Directors of Fortitude Gold Corporation (the “Company”) declared a dividend of one Series A Right
and one Series B Right (collectively the “Rights”) for each outstanding share of Common Stock (the “Common Shares”),
of the Company. The dividend is payable on September __, 2020 (the “Record Date”) to the shareholders of record as
of that date. When the Rights become exercisable, each Series A Right will entitle the registered holder, subject to the terms
of the Rights Agreement, to purchase from the Company one Common Share at a purchase price equal to 20% (the “Purchase Price
Percentage”) of the market price of the Company's Common Stock on the exercise date (the “Purchase Price”), although
the price may be adjusted as described below. If after a person becomes an Acquiring Person or a Tender Offer Person (i) the Company
is acquired in a merger or other business combination transaction and the Company is not the surviving corporation, (ii) any person
consolidates or merges with the Company and all or part of the Company's Common Shares are converted or exchanged for securities,
cash or property of any other person, or (iii) 50% or more of the Company's consolidated assets or earning power are sold, proper
provision will be made so that each holder of a Series B Right will thereafter have the right to receive, upon the exercise thereof
at the exercise price of $100 (subject to adjustment), that number of shares of common stock of the acquiring company which at
the time of such transaction will have a market value that is twice the exercise price of the Series B Right.

 

The description and
terms of the Rights are set forth in a Rights Agreement (the “Rights Agreement”) between the Company and Computershare
Trust Company, N.A as Rights Agent (the "Rights Agent").

 

Trading and Distribution
of Rights

 

Initially, shareholders
will not receive separate certificates for the Rights as the Rights will be represented by outstanding Common Share certificates.
Until the Exercise Date, the Rights cannot be bought, sold or otherwise traded separately from the Common Shares. Certificates
for Common Shares issued after the Record Date will carry a notation that indicates that Rights are attached to the Common Shares
and incorporate the terms of the Rights Agreement.

 

Separate certificates
representing the Rights will be distributed as soon as practicable after the earliest to occur of:

 

    

     

    

 

(1)       15
business days following a public announcement that a person or group of affiliated or associated persons (an "Acquiring Person")
has acquired beneficial ownership of 15% or more of the outstanding Common Shares, or

 

(2)       15
business days (or such later date as may be determined by action of the Board of Directors prior to such time as any Person 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 such outstanding Common Shares.

 

The earlier of
such dates described above is called the "Distribution Date".

 

Until the Distribution
Date (or earlier redemption or expiration of the Rights), the surrender for transfer of any certificates for Common Shares outstanding
as of the Record Date, even without such notation, will also constitute the transfer of the Rights associated with the Common Shares
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 Shares as of the close of business on the Distribution
Date and such separate Right Certificates alone will evidence the Rights.

 

Exercise and Expiration

 

The holders of the
Rights are not required to take any action until the Rights become exercisable. The Rights are not exercisable until the Distribution
Date. Holders of the Rights will be notified by the Company that the Rights have become exercisable. The Rights will expire on
________ (the "Final Expiration Date"), unless the Final Expiration Date is extended or unless the Rights are earlier
redeemed by the Company as described below.

 

Adjustments

 

In order to protect
the value of the Rights to the holders, the Purchase Price payable, and the number of Common Shares or other securities or property
issuable upon exercise of the Rights are subject to adjustment from time to time (i) in the event of a stock dividend on, or a
subdivision, combination or reclassification of, the Common Shares, (ii) upon the grant to holders of the Common Shares of certain
rights or warrants to subscribe for or purchase Common Shares at a price, or securities convertible into Common Shares with a conversion
price, less than the then current market price of Common Shares, or (iii) upon the distribution to holders of the Common Shares
of evidences of indebtedness or assets (excluding regular periodic cash dividends paid out of earnings or retained earnings or
dividends payable in Common Shares) or of subscription rights or warrants (other than those referred to above.

 

The foregoing adjustments
are intended to ensure that a holder of the Rights will not be adversely affected by the occurrence of certain events. With certain
exceptions, the Company is not required to adjust the Purchase Price Percentage until cumulative adjustments require a change of
at least 1% in the Purchase Price Percentage. The Company may elect not to issue fractional Common Shares upon the exercise of
the Rights and in lieu thereof, an adjustment in cash or other property will be made based on the market price of the Common Shares
on the last trading day prior to the date of exercise.

 

    

     

    

 

Redemption

 

At any time prior to
the Distribution Date, the Board of Directors of the Company may redeem the Rights in whole, but not in part, at a price of $.0001
per Right (the "Redemption Price"). Subject to the foregoing, the redemption of the Rights may be made effective at such
time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish. Immediately upon any
redemption of the Rights, the right to exercise the Rights will terminate and the only entitlement of the holders of Rights will
be to receive the Redemption Price.

 

Exchange Option

 

At any time after a
person becomes an Acquiring Person or a Tender Offer Person, and prior to the acquisition by such Acquiring Person of 50% or more
of the outstanding Common Shares, the Board of Directors of the Company may exchange the Rights (other than Rights owned by such
person or group which have become void), in whole or in part, at an exchange ratio of one Common Share per Right (subject to adjustment).

 

Other Provisions

 

The terms of the Rights
may be amended by the Board of Directors of the Company without the consent of the holders of the Rights, except that from and
after such time as any person becomes an Acquiring Person no such amendment may adversely affect the interests of the holders of
the Rights.

 

Until a Right is exercised,
the holder of the Right, as such, will not have any rights as a shareholder of the Company, including, without limitation, the
right to vote or to receive divideds.

 

As of September __,
2020 ______ shares of the Company's Common Stock were issued and outstanding. Each outstanding share on September __, 2020 will
receive one Series A Right and one Series B Right. As long as the Rights are attached to the Common Shares, the Company will issue
one Series A Right and one Series B Right for each Common Share issued between the Record Date and the Distribution Date.

 

The Rights may have
certain anti-takeover effects. The Rights will cause substantial dilution to a person or group that attempts to acquire the Company
on terms not approved by the Board of Directors. However, the Rights should not interfere with any merger or other business combination
approved by a majority of the Board of Directors since the Rights may be redeemed by the Company at any time prior to the Distribution
Date. Thus, the Rights are intended to encourage persons who may seek to acquire control of the Company to initiate such an acquisition
through negotiations with the Board of Directors. However, the effect of the Rights may be to discourage a third party from making
a partial tender offer or otherwise attempting to obtain a substantial position in the equity securities of, or seeking to obtain
control of, the Company. To the extent any potential acquisition is deterred by the Rights, the Rights may have the effect of preserving
incumbent management in office.

 

In certain events specified
in the Rights Agreement, the Company is permitted to temporarily suspend the exercisability of the Rights.

 

A copy of
the Rights Agreement is available free of charge from the Company by contacting the Secretary at Fortitude Gold Corporation, 2866
Carriage Manor Point, Colorado Springs, Colorado 80906. This summary description of the Rights does not purport to be complete
and is qualifed in its entirety by reference to the Rights Agreement, which is hereby incorporated herein by reference.

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