Document:

Exhibit 4.2

 

DESCRIPTION
OF CAPITAL STOCK

 

The following is
a summary of all material characteristics of the capital stock of Acacia Research Corporation, as set forth in our Amended and
Restated Certificate of Incorporation, as amended, or our Charter, and our Second Amended and Restated Bylaws, as amended, or our
Bylaws. References to “we,” “us,” or “our” refer to Acacia Research Corporation The summary
does not purport to be complete and is qualified in its entirety by reference to our Charter and Bylaws, copies of which have been
filed as exhibits to our public filings with the Securities and Exchange Commission.

 

Common Stock

 

General. We may issue shares
of our common stock from time to time. We are authorized to issue 300,000,000 shares of common stock, par value $0.001 per share.

 

Dividend Rights. Subject to
preferences that may apply to any shares of preferred stock outstanding at the time, the holders of outstanding shares of our common
stock are entitled to receive dividends out of funds legally available at the times and in the amounts that our board of directors
may determine.

 

Voting Rights. Holders of our
common stock are entitled to one vote for each share held on all matters submitted to a vote at a meeting of stockholders and do
not have cumulative voting rights.

 

No Preemptive or Similar Rights. Our
common stock is not entitled to preemptive rights, and is not subject to redemption. There are no sinking fund provisions applicable
to our common stock.

 

Conversion. Our common stock
is not convertible into any other shares of our capital stock.

 

Right to Receive Liquidation Distributions. Upon
our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable
ratably among the holders of our common stock after payment of liquidation preferences, if any, on any outstanding shares of preferred
stock and payment of claims of creditors.

 

Series A Convertible Preferred Stock

 

Pursuant to the terms of our Charter, our
board of directors is authorized, subject to limitations prescribed by Delaware law, to issue up to 10,000,000 shares of preferred
stock, par value $0.001 per share, in one or more series, to establish from time to time the number of shares to be included in
each series, and to fix the designation, powers, preferences and rights of the shares of each series and any of its qualifications,
limitations or restrictions, in each case without further action by our stockholders. On November 18, 2019, we filed a Certificate
of Designations, Preferences, and Rights of Series A Convertible Preferred Stock with the Secretary of State of the State of Delaware,
or the Certificate of Designations establishing the rights, preferences, privileges, qualifications, restrictions and limitations
relating to 350,000 shares of our Series A Convertible Preferred Stock, par value $0.001 per share. Our Series A Convertible Preferred
Stock rank senior to our common stock and any other class or series of capital stock, with respect to rights as to as to dividends,
distributions, redemptions and payments upon the liquidation, dissolution and winding up of Acacia. Holders of our Series A Convertible
Preferred Stock have the right to vote with holders of our common stock on an as-converted basis on all matters.

 

 

 

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Delaware Law and Certain Charter and Bylaw Provisions

 

The provisions of Delaware law, as well
as certain terms of our Charter and Bylaws, may have the effect of delaying, deferring or discouraging another person from acquiring
control of us by means of a tender offer, a proxy contest or otherwise, or removing incumbent officers and directors. These provisions,
some of which are summarized below, are expected to discourage certain types of coercive takeover practices and takeover bids that
our board of directors may consider inadequate and to encourage any person seeking to acquire control of us to first negotiate
with our board of directors.

 

Delaware Law. We are governed by
the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a public Delaware corporation from engaging in a “business
combination” with an “interested stockholder” for a period of three years after the date such stockholder became
an “interested stockholder.” A “business combination” includes mergers, asset sales or other transactions
resulting in a financial benefit to the stockholder. An “interested stockholder” is a person who, together with affiliates
and associates, owns, or within three years did, prior to the determination of interested stockholder status, own, 15% or more
of the corporation’s outstanding voting stock.

 

Charter and Bylaw Provisions. Each
of our Charter and Bylaws include a number of other provisions that may have the effect of deterring hostile takeovers or delaying
or preventing changes in control or our management, including the following:

 

		·	Issuance of Undesignated Preferred Stock. Our board of directors has the authority, subject to the rights of the holders
of our Series A Convertible Preferred Stock, to issue an additional 9,650,000 shares of preferred stock with rights and preferences
designated from time to time by our board of directors.

 

		·	Advance Notice Requirements for Stockholder Proposals and Director Nominations. Our Bylaws provide advance notice
procedures for stockholders seeking to bring business before our annual meeting of stockholders, or to nominate candidates for
election as directors at our annual meeting of stockholders.

 

		·	Amendment. Our Charter provides that our Bylaws may only be amended by our board of directors or by the holders
of 66 and 2/3 percent, or a super-majority, of the outstanding shares of our common stock, which makes it more difficult for our
stockholders to amend or repeal our Bylaws.

 

		·	No Cumulative Voting. The DGCL provides that stockholders are denied the right to cumulate votes in the election
of directors unless our Charter provides otherwise. Our Charter does not provide for cumulative voting.

 

		·	Size of Board and Vacancies. Our Charter and Bylaws provide that the exact number of directors on our board of
directors is fixed exclusively by our board of directors. Newly created directorships resulting from any increase in our authorized
number of directors, and any vacancies resulting from death, resignation, retirement, disqualification, removal from office or
other cause, will generally be filled by a majority of our board of directors then in office.

 

		·	Transfer Restrictions. Our Charter generally restricts any direct or indirect transfers of our common stock if the effect
would be to (i) increase the direct or indirect ownership of our common stock by any person or group from less than 4.899% to 4.899%
or more of our common stock; or (ii) increase the percentage of our common stock owned directly or indirectly by a person or group
owning or deemed to own 4.899% or more of our common stock.

 

Tax Benefits Preservation Plan

 

Under the terms of our Tax Benefits Preservation
Plan, in general, if a person or group acquires beneficial ownership of 4.9% or more of the outstanding shares of our Common Stock
without prior approval of our board of directors or without meeting certain exceptions, the rights would become exercisable and
our stockholders (other than the acquiring person) will have the right to purchase securities from us at a discount to such securities’
fair market value, thus causing substantial dilution to the acquiring person. As a result, the Tax Benefits Preservation Plan may
have the effect of inhibiting or impeding a change in control not approved by our board of directors.

 

 

 

    	 	2Exhibit 10.1

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION
AGREEMENT (the “Agreement”) is made as of the ____ day of ______________, ____ by and between Acacia Research
Corporation, a Delaware corporation (the “Company”), and ____________________ (“Indemnitee”).

 

WHEREAS, directors,
officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and
time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the
Company or business enterprise itself;

 

WHEREAS, highly competent
persons have become more reluctant to serve corporations as directors or in other capacities unless they are provided with adequate
protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out
of their service to and activities on behalf of the corporation;

 

WHEREAS, the Board
of Directors of the Company (the “Board”) has determined that the increased difficulty in attracting and retaining
such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to assure
such persons that there will be increased certainty of such protection in the future;

 

WHEREAS, it is reasonable,
prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such
persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue
concern that they will not be so indemnified;

 

WHEREAS, Indemnitee
does not regard the protection available under the Company’s Bylaws and insurance as adequate in the present circumstances,
may not be willing to serve as an officer or director without adequate protection, and is willing to serve on the condition that
he be so indemnified;

 

WHEREAS, although the
Bylaws of the Company require indemnification of the officers and directors of the Company or any other Enterprise, and Indemnitee
may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the “DGCL”),
the Bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby
contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons
with respect to indemnification; and

 

WHEREAS, this Agreement
is a supplement to and in furtherance of the Bylaws of the Company and any resolutions adopted pursuant thereto, and shall not
be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

NOW, THEREFORE, in
consideration of Indemnitee’s agreement to serve as a [director] [officer] [employee] [agent] [fiduciary] after the date
hereof, the parties hereto agree as follows:

 

1.            
Definitions. For purposes of this Agreement:

 

(a)           
“Corporate Status” describes the status of a person who is or was a director, officer, employee, agent
or fiduciary of the Company or any other Enterprise.

 

(b)          
“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding
in respect of which indemnification is sought by Indemnitee.

 

 

 

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(c)          
“Enterprise” shall mean the Company, any wholly- or majority-owned subsidiary of the Company and any
other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other entity or enterprise
that Indemnitee is or was serving at the request or consent of the Company, or any subsidiary, as a director, officer, employee,
agent or fiduciary.

 

(d)          
“Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs,
fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery
service fees and all other disbursements or expenses of the types that may be incurred in connection with prosecuting, defending,
preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding. Expenses
also shall include the foregoing incurred in connection with any appeal resulting from any Proceeding, including without limitation
the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent.
Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(e)           
“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of
corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company, any other
Enterprise, or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee
under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding
giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel”
shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict
of interest in representing either the Company, any other Enterprise, or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement.

 

(f)           
“Proceeding” includes any threatened, pending or completed action, suit, arbitration, alternate dispute
resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether
brought by or in the right of the Company, or any other Enterprise, or otherwise and whether civil, criminal, administrative or
investigative, in which Indemnitee was, is or will be involved as a party or otherwise, by reason of the fact that Indemnitee is
or was acting in his or her Corporate Status, by reason of any action taken by him or of any inaction on his part while acting
in his or her Corporate Status, or by reason of the fact that he or she is or was serving at the request of the Company, or any
other Enterprise, as a director, officer, employee, agent or fiduciary; in each case whether or not he was or is acting or serving
in any such capacity before or after the date of this Agreement and whether or not he was or is acting or serving in any such capacity
at the time any liability or expense is incurred for which indemnification can be provided under this Agreement; including one
pending on or before the date of this Agreement, but excluding one initiated by Indemnitee pursuant to Section 8 of this
Agreement to enforce his rights under this Agreement.

 

2.            
Indemnity of Indemnitee. The Company hereby agrees to defend, hold harmless and indemnify Indemnitee to the fullest
extent permitted by applicable law, as such may be amended from time to time. In furtherance of the foregoing indemnification,
and without limiting the generality thereof:

 

(a)           
Proceedings Other Than Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights
of indemnification provided in this Section 2(a) if, by reason of his or her Corporate Status or otherwise, Indemnitee is,
or is threatened to be made, a party to or participant in any Proceeding other than a Proceeding by or in the right of the Company.
Pursuant to this Section 2(a), Indemnitee shall be indemnified against all Expenses, judgments, penalties, excise taxes,
fines and amounts paid or to be paid in settlement (if such settlement is approved in advance by the Company, which approval shall
not be unreasonably withheld) actually and reasonably incurred by Indemnitee, or on Indemnitee’s behalf, in connection with
such Proceeding or any claim, issue or matter therein until such time as it has been determined in accordance with Section 7
or 8 that Indemnitee (i) did not act in good faith and did not act in a manner Indemnitee not unreasonably believed to be
in or not opposed to the best interests of the Company, and with respect to any criminal Proceeding, or (ii) did not have a reasonable
cause to believe Indemnitee’s conduct was lawful.

 

 

 

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(b)          
Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided
in this Section 2(b) if, by reason of Indemnitee’s Corporate Status or otherwise, Indemnitee is, or is threatened
to be made, a party to or participant in any Proceeding brought by or in the right of the Company. Pursuant to this Section
2(b), Indemnitee shall be indemnified against all Expenses, judgments, penalties, fines, excise taxes and amounts paid or to
be paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld)
actually and reasonably incurred by Indemnitee, or on Indemnitee’s behalf, in connection with such Proceeding or any claim,
issue or matter therein until such time as as it has been determined in accordance with Section 7 or 8 that Indemnitee
(i) did not act in good faith and did not act in a manner Indemnitee not unreasonably believed to be in or not opposed to the best
interests of the Company, or (ii) did not have a reasonable cause to believe Indemnitee’s conduct was lawful; provided,
however, if applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim,
issue or matter in such Proceeding as to which it shall be finally determined (under the procedures, and subject to the presumptions,
set forth in Section 7 and Section 8 hereof), that Indemnitee is liable to the Company unless and to the extent that
the Court of Chancery of the State of Delaware shall determine that such indemnification may be made.

 

(c)           
Overriding Right to Indemnification if Successful on the Merits. Notwithstanding any other provision of this Agreement,
to the extent that Indemnitee is, by reason of his Corporate Status or otherwise, a party to and is successful, on the merits or
otherwise, in any Proceeding, he shall be indemnified to the maximum extent permitted by applicable law, as such may be amended
from time to time, against all Expenses, judgments, penalties, excise taxes, fines and amounts paid or to be paid in settlement
(if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably
incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful,
on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall
indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
with (i) each successfully resolved claim, issue or matter and (ii) each other claim, issue or matter not resolved in Indemnitee’s
favor that does not or did not involve a violation of law or a demonstration of bad faith by Indemnitee. For purposes of this Section
and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice,
shall be deemed to be a successful result as to such claim, issue or matter.

 

3.            
Additional Indemnity. In addition to, and without regard to any limitations on, the indemnification provided for
in Section 2 of this Agreement, and subject to the other provisions of this Agreement, the Company shall, and hereby does
indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties, excise taxes, fines and amounts paid or to be
paid in settlement actually and reasonably incurred by him or on his behalf if, by reason of his Corporate Status or otherwise,
he or she is, or is threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right
of the Company), including, without limitation, all liability arising out of the alleged or actual negligence or active or passive
wrongdoing of Indemnitee. The only limitation that shall exist upon the Company’s obligations pursuant to this Agreement
shall be that the Company shall not be obligated to make any payment to Indemnitee that is finally determined (under the procedures,
and subject to the presumptions, set forth in Section 7 and Section 8 hereof) to be unlawful.

 

4.            
Contribution.

 

(a)           
Whether or not the indemnification provided in Section 2 and Section 3 hereof is available, in respect of
any threatened, pending or completed action, suit or proceeding in which the Company or any other Enterprise is jointly liable
with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall pay, in the first instance, the entire
amount of any judgment or settlement of such action, suit or proceeding without requiring Indemnitee to contribute to such payment,
and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee. Neither the
Company nor any other Enterprise shall enter into any settlement of any action, suit or proceeding in which the Company or any
other Enterprise is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding) unless such settlement
provides for a full and final release of all claims asserted against Indemnitee.

 

 

 

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(b)          
Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason,
Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed
action, suit or proceeding in which the Company or any other Enterprise is jointly liable with Indemnitee (or would be if joined
in such action, suit or proceeding), the Company shall contribute to the amount of Expenses, judgments, penalties, excise taxes,
fines and amounts paid or to be paid in settlement (if such settlement is approved in advance by the Company, which approval shall
not be unreasonably withheld) actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative
benefits received by the Company or any other Enterprise and all officers, directors or employees of the Company or any other Enterprise,
other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the
one hand, and Indemnitee, on the other hand, from the transaction from which such action, suit or proceeding arose; provided,
however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law,
be further adjusted by reference to the relative fault of the Company or any other Enterprise and all officers, directors or employees
of the Company or any other Enterprise other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such
action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the events that resulted in
such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which the law may require
to be considered. The relative fault of the Company or any other Enterprise and all officers, directors or employees of the Company
or any other Enterprise, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit
or proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the
degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability
is primary or secondary and the degree to which their conduct is active or passive.

 

(c)           
The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claim of contribution brought by officers,
directors, employees, or former employees of the Company and any other Enterprise, other than Indemnitee, based upon a claim of
liability which, if made against Indemnitee directly, would be indemnifiable under this Agreement.

 

(d)          
To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable
to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred
by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement (if such settlement
is approved in advance by the Company, which approval shall not be unreasonably withheld) and/or for Expenses, in connection with
any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light
of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company (together
with its directors, officers, employees and agents) and Indemnitee as a result of the event(s) and/or transaction(s) giving cause
to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee
in connection with such event(s) and/or transaction(s).

 

5.            
Indemnification for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that
Indemnitee is, by reason of his Corporate Status or otherwise, a witness in any Proceeding to which Indemnitee is not a party,
he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

 

6.            
Advancement of Expenses. Notwithstanding any other provision of this Agreement, to the extent not prohibited by law,
the Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee’s
Corporate Status or otherwise within twenty (20) days after the receipt by the Company of a statement or statements from Indemnitee
requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement
or statements shall reasonably evidence the Expenses incurred by Indemnitee and, upon request of the Company, shall include
an undertaking to repay the advancement of Expenses if and to the extent that it is finally determined by a court
of competent jurisdiction in a non-appealable decision, that Indemnitee is not entitled to
be indemnified against such Expenses. Any advances and undertakings to repay pursuant to this Section 6 shall be unsecured,
interest-free and without regard to Indemnitee’s ability to repay the Expenses. Advances shall include any and all Expenses
actually and reasonably incurred by Indemnitee pursuing an action to enforce Indemnitee’s right to indemnification under
this Agreement, or otherwise and this right of advancement, including Expenses incurred preparing and forwarding statements to
the Company to support the advances claimed. The right to advances under this Section shall continue until final disposition of
any Proceeding, including any appeal therein.

 

 

 

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7.            
Procedures and Presumptions for Determination of Entitlement to Indemnification. It is the intent of this Agreement
to secure for Indemnitee rights of indemnity that are as favorable as may be permitted under the DGCL and public policy of the
State of Delaware. Accordingly, the parties agree that the following procedures and presumptions shall apply in the event of any
question as to whether Indemnitee is entitled to indemnification under this Agreement:

 

(a)           
Indemnitee shall give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which
indemnification will or could be sought under this Agreement. Such notice shall include Indemnitee’s request for indemnification
and such documentation and information as is reasonably available to Indemnitee and as is reasonably necessary for the Company
to determine whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly
upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.
Failure to provide the notice required hereby shall not impair Indemnitee’s rights of indemnification and contribution under
this Agreement except to the extent that such failure to provide notice actually prejudices the rights of the Company to defend
any action or proceeding which is the basis of the claimed indemnification.

 

(b)          
Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 7(a) hereof, a determination,
if, and only if, required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific
case by one of the following four (4) methods within thirty (30) days of receipt of such written request, which shall be at the
election of the Board of Directors: (i) by a majority vote of the Disinterested Directors, even though less than a quorum, (ii)
by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a
quorum, (iii) if there are no Disinterested Directors or if the Disinterested Directors so direct, by Independent Counsel, in a
written opinion of such counsel to the Board of Directors and Indemnitee, or (iv) if so directed by the Board of Directors, by
the stockholders of the Company.

 

(c)           
If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 7(b)
hereof, the Independent Counsel shall be selected as provided in this Section 7(c). The Independent Counsel shall be selected
by the Board of Directors. Indemnitee may, within 10 days after such written notice of selection shall have been given, deliver
to the Company, as the case may be, a written objection to such selection; provided, however, that such objection
may be asserted only on the ground that the counsel so selected does not satisfy the definition of “Independent Counsel”
set forth at Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such
assertion. Absent a proper and timely objection made in accordance with the foregoing sentence, the person so selected shall act
as Independent Counsel. In the event of a proper and timely objection, the Independent Counsel selected may not serve as Independent
Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within
thirty (30) days after submission by Indemnitee of a written request for indemnification pursuant to Section 7(a) hereof,
no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Court of
Chancery of the State of Delaware or other court of competent jurisdiction for resolution of any objection which shall have been
made by Indemnitee to the Company’s selection of Independent Counsel and/or for the appointment as Independent Counsel of
a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections
are so resolved or the person so appointed shall act as Independent Counsel under Section 7(b) hereof. The Company shall
pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting
pursuant to Section 7(b) hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of
this Section 7(c), regardless of the manner in which such Independent Counsel was selected or appointed.

 

(d)           
In making a determination with respect to entitlement to indemnification hereunder with respect to Section 7(b), the person
or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement.
Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing
evidence. Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior
to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee
has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent
Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption
that Indemnitee has not met the applicable standard of conduct.

 

 

 

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(e)           
In making a determination with respect to whether Indemnitee acted in good faith and in a manner that Indemnitee not unreasonably
believed to be in or not opposed to the best interests of the Company, the person or persons or entity making such determination
shall presume that Indemnitee acted in good faith and in a manner that Indemnitee not unreasonably believed to be in or not opposed
to the best interests of the Company. Anyone seeking to overcome this presumption shall have the burden of proof and the burden
of persuasion by clear and convincing evidence which shall be determined only by a court of competent jurisdiction. Any action,
or failure to act, by Indemnitee based on Indemnitee’s good faith reliance on the records or books of account of the Enterprise,
including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their
duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise
by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise
shall not, in and of itself, constitute grounds for an adverse determination with respect to whether Indemnitee acted in good faith
and in a manner that Indemnitee not unreasonably believed to be in or not opposed to the best interests of the Company. In addition,
the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed
to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

(f)            
If the person, persons or entity empowered or selected under Section 7(b) to determine whether Indemnitee is entitled
to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor,
the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled
to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary
to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition
of such indemnification under applicable law; provided, however, that such sixty 60-day period may be extended for
a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making such determination with
respect to entitlement to indemnification in good faith requires such additional time to obtain or evaluate documentation and/or
information relating thereto.

 

(g)          
Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s
entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation
or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination. Any Independent Counsel, member of the Board of Directors or stockholder of the Company
shall act reasonably and in good faith in making a determination regarding Indemnitee’s entitlement to indemnification under
this Agreement. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating
with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as
to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless
therefrom.

 

(h)           
In the event the Company shall be obligated under Section 5 hereof to pay the Expenses of any proceeding against
Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by Indemnitee,
upon the delivery to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel
by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement
for any fees of counsel subsequently incurred by Indemnitee with respect to the same proceeding, provided that (i) Indemnitee
shall have the right to employ his counsel in any such proceeding at Indemnitee’s expense; and (ii) if (A) the employment
of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have not unreasonably concluded that
there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense, or (C) the Company shall
not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of Indemnitee’s
counsel shall be at the expense of the Company.

 

(i)            
The Company acknowledges that a settlement or other disposition short of final judgment may be successful if it permits
a party to avoid expense, delay, distraction, disruption and uncertainty. In the event that any action, claim or proceeding to
which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation,
settlement of such action, claim or proceeding with or without payment of money or other consideration) it shall be presumed that
Indemnitee has been successful on the merits or otherwise in such action, suit or proceeding. Anyone seeking to overcome this presumption
shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

 

 

 

    	 	6	 

     

    

 

(j)            
The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction,
or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
adversely affect the right of Indemnitee to indemnification under this Agreement
or create a presumption that Indemnitee did not act in good faith and in a manner which he not unreasonably believed
to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable
cause to believe that his conduct was unlawful.

 

8.            
Remedies of Indemnitee.

 

(a)           
In the event that (i) a determination is made pursuant to Section 7 of this Agreement that Indemnitee is not entitled
to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 6 of this Agreement,
(iii) no determination of entitlement to indemnification is made pursuant to Section 7(b) of this Agreement within sixty
(60) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant
to this Agreement within forty-five (45) days after receipt by the Company of a written request therefor or (v) payment of indemnification
is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or such determination
is deemed to have been made pursuant to Section 7 of this Agreement, Indemnitee shall be entitled to an adjudication in
an appropriate court of the State of Delaware, or in any other court of competent jurisdiction, of Indemnitee’s entitlement
to such indemnification. The Company shall not oppose Indemnitee’s right to seek any such adjudication.

 

(b)          
In the event that a determination shall have been made pursuant to Section 7(b) of this Agreement that Indemnitee
is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section 8 shall be conducted in all
respects as a de novo trial on the merits, and Indemnitee shall not be prejudiced by reason of the adverse determination under
Section 7(b).

 

(c)           
If a determination shall have been made pursuant to Section 7(b) of this Agreement that Indemnitee is entitled to
indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section
8, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
misstatement not materially misleading in connection with the application for indemnification, or (ii) a prohibition of such indemnification
under applicable law.

 

(d)           
In the event that Indemnitee, pursuant to this Section 8, seeks a judicial adjudication of his rights under, or to
recover damages for breach of, this Agreement, or to recover under any directors’ and officers’ liability insurance
policies maintained by the Company, the Company shall pay on his behalf, in advance, any and all Expenses actually and reasonably
incurred by him in such judicial adjudication, regardless of whether Indemnitee is
ultimately determined to be entitled to such indemnification, advancement of Expenses or insurance recovery.

 

(e)           
The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 8 that
the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court
that the Company is bound by all the provisions of this Agreement. The Company shall indemnify Indemnitee against any and all Expenses
and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore) advance,
to the extent not prohibited by law, such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action
brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors’
and officers’ liability insurance policies maintained by the Company, regardless
of whether Indemnitee is ultimately determined to be entitled to such indemnification, advancement of Expenses or insurance recovery,
as the case may be.

 

 

 

    	 	7	 

     

    

 

(f)            
Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under
this Agreement shall be required to be made prior to the final disposition of the Proceeding.

 

9.            
Non-Exclusivity; Survival of Rights; Insurance.

 

(a)           
The rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee
may at any time be entitled under applicable law, the certificate of incorporation of the Company, the Bylaws, any agreement, a
vote of stockholders, a resolution of directors or otherwise. No amendment, alteration or repeal of this Agreement or of any provision
hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee
in his Corporate Status or otherwise prior to such amendment, alteration or repeal. To the extent that a change in the DGCL, whether
by statute or judicial decision, permits greater indemnification than would be afforded currently under the Bylaws and this Agreement,
it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.
No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy
shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity
or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion
or employment of any other right or remedy. Notwithstanding anything in this Agreement
to the contrary, the indemnification and contribution provided for in this Agreement will remain in full force and effect regardless
of any investigation made by or on behalf of Indemnitee or any of Indemnitee’s agents.

 

(b)          
To the extent that the Company, or any entity within the Enterprise, maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company, Indemnitee
shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available
for any director, officer, employee, agent or fiduciary under such policy or policies. If, at the time of the receipt of a notice
of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall
give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective
policies. The Company shall use commercially reasonable efforts to cause such insurers to pay, on behalf of Indemnitee, all amounts
payable as a result of such proceeding in accordance with the terms of such policies.

 

(c)          
In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of
the rights of recovery of Indemnitee, who shall execute all papers reasonably required and take all action reasonably necessary
to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights.

 

(d)          
The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if
and to the extent that Indemnitee has otherwise actually received such payment under any Company insurance policy, Company contract,
Company agreement or otherwise (except to the extent that Indemnitee is required (by court order or otherwise) to return such payment
or to surrender it to the Company).

 

(e)           
The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request
of the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement
of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise (except to
the extent that Indemnitee is required (by court order or otherwise) to return such payment or to surrender it to the Company).

 

 

 

    	 	8	 

     

    

 

(f)            
D&O Insurance. Pursuant to Section 9(b) of the Agreement, Indemnitee currently is covered by one or more insurance
policies maintained by Company that provide liability insurance for directors, officers, employees, agents or fiduciaries of Company
(whether in each case primary or excess in nature, collectively "D&O Insurance"), including without limitation
that certain policy number QPL0453702 issued by QBE Insurance Corporation having a policy period from January 31, 2018 to January
31, 2019 (as the same may be amended, extended, renewed or restated, the "QBE 2018 Policy").

 

(g)          
Undertaking to Provide Suitable Coverage. During the period of Indemnitee's service as an officer, director, manager or
trustee of Company and for a minimum period of five (5) years thereafter, Company at all times shall procure and maintain continuing
D&O Insurance customary for listed public companies and complying at a minimum to the following requirements:

 

i.             
Having aggregate policy limits of not less than $50 million in total (i.e., primary coverage in combination with any excess),
with not less than $10 million in Side A coverage.

 

ii.            
Containing insuring clauses, limitations on exclusions and endorsements substantially consistent with those set forth in
the QBE 2018 Policy including without limitation (i) drop down advancement protection to insured persons in the event Company fails
to respond to requests for indemnification, (ii) inclusion of former officers and directors as insured persons, and (iii) extended
reporting periods currently specified by endorsement in the QBE 2018 Policy.

 

iii.             Placed with
insurer(s) having an A.M. Best financial strength rating of A- or better.

 

10.          
Exception to Right of Indemnification. Notwithstanding any provision in this Agreement, the Company shall not be
obligated under this Agreement to make any indemnity:

 

(a)           
in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or
any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees,
if a court of competent jurisdiction finally determines in a non-appealable decision that each of the material assertions made
by Indemnitee in such Proceeding (or any part of any Proceeding) was not made in good faith or was frivolous;

 

(b)           
in connection with any Proceeding (or any part of any Proceeding) for which payment has actually been made to or on behalf
of Indemnitee under any Company insurance policy or other Company indemnity provision, except with respect to any excess beyond
the amount paid under any Company insurance policy or other Company indemnity provision;

 

(c)           
in connection with any Proceeding for which a final, non-appealable judgment has been rendered against Indemnitee for an
accounting, disgorgement or repayment of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities
of the Company pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory
law or common law; or

 

(d)           
in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or
any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees
(other than any Proceeding initiated by Indemnitee pursuant to Section 8(d), which shall be governed by the terms of such
section), unless (i) the Board of Directors of the Company authorized the Proceeding (or any part of any Proceeding) prior to its
initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company
under applicable law.

 

 

 

    	 	9	 

     

    

 

11.          
Duration of Agreement. All agreements and obligations of the Company contained herein shall continue until six (6)
years after the end of any period Indemnitee is an officer or director of the Company or any other Enterprise (or is or was serving
at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust
or other enterprise) but shall continue thereafter so long as Indemnitee shall be subject to any Proceeding (or any proceeding
commenced under Section 8 hereof) by reason of his Corporate Status or otherwise, whether or not he is acting or serving
in any such capacity at the time any liability or Expense is incurred for which indemnification can be provided under this Agreement,
notwithstanding such six (6) year period. This Agreement shall be binding upon and inure to the benefit of and be enforceable by
the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation
or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal
and legal representatives. The Company may not assign this agreement and/or the obligations hereunder to any other entity without
the express written consent of Indemnitee.

 

12.          
Security. To the extent requested by Indemnitee and approved by the Board of Directors of the Company, the Company
may at any time and from time to time provide security to Indemnitee for the Company’s obligations hereunder through an irrevocable
bank line of credit, funded trust or other collateral. Any such security, once provided to Indemnitee, may not be revoked or released
without the prior written consent of Indemnitee.

 

13.          
Enforcement.

 

(a)           
The Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on
it hereby in order to induce Indemnitee to serve as an officer or director of the Company, and the Company acknowledges that Indemnitee
is relying upon this Agreement in serving as an officer or director of the Company.

 

(b)          
This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject
matter hereof.

 

14.          
Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability
of any other provision. Without limiting the generality of the foregoing, this Agreement is intended to confer upon Indemnitee
indemnification rights to the fullest extent permitted by applicable laws. In the event any provision hereof conflicts with any
applicable law, such provision shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to
resolve such conflict.

 

15.          
Modification and Waiver. No supplement, modification, termination or amendment of this Agreement shall be binding
unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

 

16.          
Notice By Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with or otherwise
receiving any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter
which may be subject to indemnification covered hereunder unless Indemnitee has actual knowledge that Company is already in receipt
of any such document relating to any Proceeding or matter. The failure to so notify the Company shall not relieve the Company of
any obligation which it may have to Indemnitee under this Agreement or otherwise unless and only to the extent that such failure
or delay materially prejudices the Company.

 

 

 

    	 	10	 

     

    

 

17.          
Notices. Unless otherwise provided herein, any notice required or permitted under this Agreement shall be deemed
effective upon the earlier of (a) actual receipt, or (b) (i) one (1) business day after the date of delivery by confirmed facsimile
transmission, (ii) one (1) business day after the business day of deposit with a nationally recognized overnight courier service
for next day delivery, freight prepaid, or (iii) three (3) business days after deposit with the United States Post Office for
delivery by registered or certified mail, postage prepaid. Any such notice shall be in writing and shall be addressed to the party
to be notified at the address indicated for such party indicated on the signature pages or exhibits hereto, as otherwise set forth
in this Section 17, or at such other address as such party may designate by ten (10) days’ advance written notice to the
other parties. All communications shall be sent:

 

(a)           
To Indemnitee at the address set forth below Indemnitee signature hereto;

 

(b)           
To the Company at the address set forth below Company signature hereto;

or to such other address
as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

 

18.          
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same Agreement. This Agreement may also be executed and delivered by facsimile
signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

19.          
Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed
to constitute part of this Agreement or to affect the construction thereof.

 

20.          
Governing Law and Consent to Jurisdiction. This Agreement shall be governed by, and construed and enforced in accordance
with, the laws of the State of Delaware, without regard to its conflict of laws rules. The Company and Indemnitee hereby irrevocably
and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought
only in the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or federal
court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of
the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any
objection to the laying of venue of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead
or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient
forum.

 

21.         
Construction. The parties acknowledge that both parties have contributed to the drafting of this Agreement and, therefore,
waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other
document will be construed against the party drafting such agreement or document.

 

[Remainder of page intentionally
left blank]

 

 

 

 

 

 

 

 

 

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first above written.

 

 

INDEMNITEE:

 

 

Signature:                                                                              

 

 

Name Typed or Printed:                                                      

 

 

Address:

 

_________________________________

 

 

_________________________________

 

 

 

COMPANY:

 

ACACIA RESEARCH CORPORATION

 

 

By:                                                                                 

 

 

Name:
                                                                            

 

 

Title:                                                                              

 

 

Address:

 

_________________________________

 

 

_________________________________

 

 

    	 	12

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