Document:

Exhibit 4.1

 

 

RIGHTS AGREEMENT

between

MASIMO CORPORATION

 

and

BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC.

as Rights Agent
 

Dated as of September 9, 2022

 

 

    

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	Section
    1.	Certain
    Definitions	1
	 	 	 
	Section
    2.	Appointment
    of the Rights Agent	8
	 	 	 
	Section
    3.	Issuance
    of Rights Certificates	8
	 	 	 
	Section
    4.	Form
    of Rights Certificates	10
	 	 	 
	Section
    5.	Countersignature
    and Registration	10
	 	 	 
	Section
    6.	Transfer,
    Split-Up, Combination, and Exchange of Rights Certificates; Mutilated, Destroyed, Lost, or Stolen Rights Certificates	11
	 	 	 
	Section
    7.	Exercise
    of Rights; Purchase Price; Expiration Date of Rights	12
	 	 	 
	Section
    8.	Cancellation
    and Destruction of Rights Certificates	14
	 	 	 
	Section
    9.	Reservation
    and Availability of Capital Stock	14
	 	 	 
	Section
    10.	Preferred
    Stock Record Date	16
	 	 	 
	Section
    11.	Adjustment
    of Purchase Price, Number and Kind of Shares, or Number of Rights	17
	 	 	 
	Section
    12.	Certificate
    of Adjusted Purchase Price or Number of Shares	23
	 	 	 
	Section
    13.	Consolidation,
    Merger, or Sale or Transfer of Assets or Earning Power	23
	 	 	 
	Section
    14.	Fractional
    Rights and Fractional Shares	25
	 	 	 
	Section
    15.	Rights
    of Action	27
	 	 	 
	Section
    16.	Agreement
    of Rights Holders	27
	 	 	 
	Section
    17.	Rights
    Certificate Holder Not Deemed a Stockholder	28
	 	 	 
	Section
    18.	Concerning
    the Rights Agent	28
	 	 	 
	Section
    19.	Merger
    or Consolidation or Change of Name of the Rights Agent	29
	 	 	 
	Section
    20.	Duties
    of the Rights Agent	29
	 	 	 
	Section
    21.	Change
    of the Rights Agent	32
	 	 	 
	Section
    22.	Issuance
    of New Rights Certificates	32
	 	 	 
	Section
    23.	Redemption
    and Termination	33

 

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TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	Section
    24.	Exchange
    of Rights	33
	 	 	 
	Section
    25.	Notice
    of Certain Events	35
	 	 	 
	Section
    26.	Notices	35
	 	 	 
	Section
    27.	Supplements
    and Amendments	36
	 	 	 
	Section
    28.	Successors	37
	 	 	 
	Section
    29.	Determinations
    and Actions by the Board	37
	 	 	 
	Section
    30.	Benefits
    of this Agreement	37
	 	 	 
	Section
    31.	Severability	37
	 	 	 
	Section
    32.	Governing
    Law	37
	 	 	 
	Section
    33.	Counterparts;
    Facsimiles and PDFs	38
	 	 	 
	Section
    34.	Descriptive
    Headings	38
	 	 	 
	Section
    35.	Force
    Majeure	38
	 	 	 
	Section
    36.	Customer
    Identification Program	38

 

	Exhibit A	Form of Certificate of Designation, Preferences, and Rights
	Exhibit B	Form of Rights Certificate

 

    ii

     

    

 

RIGHTS AGREEMENT

 

RIGHTS AGREEMENT, dated as of September 9, 2022
(this “Agreement”), between Masimo Corporation, a Delaware corporation (the “Company”), and Broadridge
Corporate Issuer Solutions, Inc., a Pennsylvania corporation, as Rights Agent (the “Rights Agent”).

 

RECITAL

 

WHEREAS, the Board authorized and declared a dividend
distribution of one right (each, a “Right,” and together with all other such rights distributed or issued pursuant
hereto, the “Rights”) for each share of Common Stock outstanding at the Close of Business on September 20, 2022 (the
 “Record Date”), and further authorized and directed the issuance of one Right (as such number may hereinafter be adjusted
pursuant hereto) with respect to each share of Common Stock issued between the Record Date (whether originally issued or delivered from
the Company’s treasury) and, except as otherwise provided in Section 22, the earlier of the Distribution Date and the Expiration
Date, each Right initially representing the right to purchase one one-thousandth of a share of Preferred Stock, upon the terms and subject
to the conditions hereinafter set forth.

 

AGREEMENT

 

NOW, THEREFORE, 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 who or which, together with all Affiliates and Associates of such Person, shall be the
Beneficial Owner of 10 % or more of the Common Stock then outstanding, but shall not include an Exempt Person; provided, however,
that no Person who or which, together with all Affiliates and Associates of such Person, is the Beneficial Owner of Common Stock of
the Company representing less than 20% of the Common Stock then outstanding, and which is entitled to file, and files a statement on
Schedule 13G pursuant to Rule 13d-1(b) or 13d-1(c) of the General Rules and Regulations under the Exchange Act (as in effect on the
date of this Agreement) with respect to the Common Stock beneficially owned by such Person (a “13G Investor”), shall be
deemed to be an “Acquiring Person”; provided, further, however, that a Person who was deemed a 13G Investor shall no
longer be deemed such if it files a statement on Schedule 13D pursuant to Rule 13d-1(a), 13d-1(e), 13d-1(f) or 13d-1(g) of the
General Rules and Regulations under the Exchange Act (as in effect on the date of this Agreement) with respect to the Common Stock
beneficially owned by such Person and shall be deemed an “Acquiring Person” if it is the Beneficial Owner of 10% or more
of the Common Stock of the Company then outstanding at any point from the time it first became subject to an obligation to file
(regardless of the due date of such filing) such statement on Schedule 13D; provided, that if at such time such Person’s
Beneficial Ownership is not less than 10%, then such Person shall have 60 days from such time to reduce its Beneficial Ownership to
below 10% of the Common Stock of the Company before being deemed an “Acquiring Person” but shall be deemed an
 “Acquiring Person” if after reducing its Beneficial Ownership to below 10% it subsequently becomes the Beneficial Owner
of 10% or more of the Common Stock of the Company or if, prior to reducing its Beneficial Ownership to below 10%, it increases (or
makes any offer or takes any other action that would increase) its Beneficial Ownership of the then-outstanding Common Stock of the
Company (other than as a result of an acquisition of Common Stock by the Company) above the lowest Beneficial Ownership of such
Person at any time during such 60-day period. Notwithstanding the foregoing:

 

(i)              
any Person who or which, together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 10% (20% in
the case of a 13G Investor) or more of the Common Stock then outstanding as a result of a reduction in the number of shares of Common
Stock outstanding due to the repurchase of Common Stock by the Company shall not be deemed an “Acquiring Person” unless and
until such Person, together with all Affiliates and Associates of such Person, acquires Beneficial Ownership of any additional shares
of Common Stock (other than as a result of a stock dividend, stock split, or similar transaction effected by the Company in which all
registered holders of Common Stock are treated substantially equally (as determined in good faith by the Board)) while the Beneficial
Owner of 10% (20% in the case of a 13G Investor) or more of the Common Stock then outstanding;

 

    

     

    

 

(ii)             
if the Board determines in good faith that a Person who would otherwise be an “Acquiring Person” has become such inadvertently
(including, without limitation, because (A) such Person was unaware that it beneficially owned a percentage of Common Stock that
would otherwise cause such Person to be an “Acquiring Person” or (B) such Person was aware of the extent of its Beneficial
Ownership of Common Stock but had no actual knowledge of the consequences of such Beneficial Ownership under this Agreement and had no
intention of changing or influencing control of the Company), and such Person divests as promptly as practicable (as determined by the
Board in its sole discretion) a sufficient number of shares of Common Stock (without exercising or retaining any power, including, without
limitation, voting power, with respect to such shares) (or, in the case solely of shares of Common Stock beneficially owned, directly
or indirectly, by such Person pursuant to Section 1(f)(v) hereof, such Person terminates the subject Derivatives Contract(s) or disposes
of the subject derivative security or securities, or establishes to the satisfaction of the Board that such shares of Common Stock are
not held with any intention of changing or influencing control of the Company) so that such Person is no longer the Beneficial Owner of
10% (20% in the case of a 13G Investor) or more of the Common Stock then outstanding, then such Person shall not be deemed to be or ever
to have been an “Acquiring Person” for any purposes of this Agreement as a result of such inadvertent acquisition;

 

(iii)           
if a bona fide swaps dealer who would otherwise be an “Acquiring Person” has become so as a result of its actions in
the ordinary course of its business that the Board determines, in its sole discretion, were taken without the intent or effect of evading
or assisting any other Person to evade the purposes and intent of this Agreement, or otherwise seeking to control or influence the management
or policies of the Company, then, and unless and until the Board shall otherwise determine, such Person shall not be deemed to be an “Acquiring
Person” for any purposes of this Agreement; and

 

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(iv)            
 if a Person would otherwise be deemed an “Acquiring Person” upon the execution of this Agreement, such Person (herein
referred to as a “Grandfathered Stockholder”) shall not be deemed an “Acquiring Person” for purposes of
this Agreement unless and until, subject to Section 1(a)(i) and Section 1(a)(ii) above, such Grandfathered Stockholder acquires Beneficial
Ownership of additional shares of Common Stock representing 0.1% of the shares of Common Stock then outstanding (other than as a result
of a stock dividend, stock split, or similar transaction effected by the Company in which all registered holders of Common Stock are treated
substantially equally (as determined in good faith by the Board)) after execution of this Agreement and while the Beneficial Owner of
10% (20% in the case of a 13G Investor) or more of the Common Stock then outstanding, in which case such Person shall no longer be deemed
a Grandfathered Stockholder and shall be deemed an “Acquiring Person”. A Person shall cease to be a Grandfathered Stockholder
as of the first date that such Person beneficially owns less than 10% (20% in the case of a 13G Investor) of the outstanding Common Stock.

 

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

 

(b)             
“Act” shall mean the Securities Act of 1933, as amended.

 

(c)             
“Adjustment Shares” shall have the meaning set forth in Section 11(a)(ii) hereof.

 

(d)             
“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in
Rule 12b-2 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement; provided,
however, that no director or officer of the Company shall be deemed an Affiliate or Associate of any other director or officer
of the Company solely as a result of his or her being a director or officer of the Company.

 

(e)             
“Agreement” shall have the meaning set forth in the preamble hereto.

 

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

 

(i)              
which such Person or any of such Person’s Affiliates or Associates beneficially owns, directly or indirectly (as determined
pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement);

 

(ii)              which
such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has 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) or upon the exercise of conversion rights, exchange rights, rights, warrants, or options, or otherwise; provided, however,
that a Person shall not be deemed the “Beneficial Owner” of, to have “Beneficial Ownership” of, or to
 “beneficially own,” (A) securities tendered pursuant to a tender offer or exchange offer made in accordance with
the General Rules and Regulations under the Exchange Act 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, (B) securities issuable upon exercise of
Rights at any time prior to the occurrence of a Triggering Event, or (C) securities issuable upon exercise of Rights from and
after the occurrence of a Triggering Event, which Rights were acquired by such Person or any of such Person’s Affiliates or
Associates prior to the Distribution Date or pursuant to Section 3(a) or Section 22 hereof (the “Original
Rights”) or pursuant to Section 11(i) or Section 11(p) hereof in connection with an adjustment made with respect to any
Original Rights;

 

    3 

     

    

 

(iii)           
which such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote or dispose
of, including 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, to have “Beneficial Ownership” of, or to “beneficially
own,” any security as a result of an agreement, arrangement, or understanding (whether or not in writing) to vote such security
if such agreement, arrangement, or understanding: (A) arises solely from a revocable proxy or consent (as such terms are defined
in Regulation 14A under the Exchange Act) given in response to a public proxy or consent solicitation made pursuant to, and in accordance
with, the applicable provisions of the General Rules and Regulations under the Exchange Act, including the disclosure requirements of
Schedule 14A thereunder, and (B) is not also then reportable by such Person on Schedule 13D under the Exchange Act (or
any comparable or successor report);

 

(iv)           
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 (whether or not in writing)
for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy or consent as described in the proviso to Section
1(f)(iii)), or disposing of any voting securities of the Company; or

 

(v)             which
are “beneficially owned” (within the meaning of clauses (i)-(iv) above), directly or indirectly, by a Counterparty
(or any of such Counterparty’s Affiliates or Associates) under any Derivatives Contract (without regard to any short or
similar position under the same or any other Derivatives Contract) to which such Person or any of such Person’s Affiliates or
Associates is a Receiving Party; provided, however, that the number of shares of Common Stock that a Person is deemed
to beneficially own pursuant to this clause (v) in connection with a particular Derivatives Contract shall not exceed the
number of Notional Common Shares with respect to such Derivatives Contract; provided, further, that the number of
securities beneficially owned by each Counterparty (including its Affiliates and Associates) under a Derivatives Contract shall for
purposes of this clause (v) be deemed to include all securities that are beneficially owned, directly or indirectly, by any
other Counterparty (or any of such other Counterparty’s Affiliates or Associates) under any Derivatives Contract to which such
first Counterparty (or any of such first Counterparty’s Affiliates or Associates) is a Receiving Party, with this proviso
being applied to successive Counterparties as appropriate.

 

    4 

     

    

 

Notwithstanding anything to the contrary in this
Section 1(f), nothing in this Section 1(f) shall cause a Person engaged in business as an underwriter of securities to be the “Beneficial
Owner” of, to have “Beneficial Ownership” of, or to “beneficially own,” any securities acquired or which
such Person has the right to acquire through such Person’s participation in good faith in a firm commitment underwriting until the
expiration of 40 days after the date of such acquisition, and then only if such securities continue to be owned by such Person
at such expiration of 40 days.

 

(g)              
“Board” shall mean the Board of Directors of the Company or any duly authorized committee thereof.

 

(h)              
“Book Entry Share” shall mean an uncertificated share of Common Stock registered in book entry form.

 

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

 

(j)               
“Certificate of Incorporation” shall mean the Company’s Amended and Restated Certificate of Incorporation,
as such may be amended, modified, or restated from time to time.

 

(k)              
“Close of Business” on any given date shall mean 5:00 p.m., New York City time, on such date; provided,
however, that if such date is not a Business Day, it shall mean 5:00 p.m., New York City time, on the next succeeding Business
Day.

 

(l)               
“Common Stock” shall mean the common stock, par value $0.001 per share, of the Company, except that “Common
Stock” when used with reference to any Person other than the Company shall mean the capital stock (or equity interest) of such
Person with the greatest voting power, or the equity securities or other equity interests having power to control or direct the management
of such Person.

 

(m)             
“Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(n)              
“Company” shall have the meaning set forth in the preamble hereto, except as otherwise provided in Section 13(a)
hereof.

 

(o)              
“Counterparty” shall have the meaning set forth in Section 1(r) hereof.

 

(p)              
“Current Market Price” shall have the meaning set forth in Section 11(d)(i) hereof.

 

(q)              
“Current Value” shall have the meaning set forth in Section 11(a)(iii) hereof.

 

    5 

     

    

 

(r)              
 “Derivatives Contract” shall mean a contract between two parties (the “Receiving Party”
and the “Counterparty”) that is designed to produce economic benefits and risks to the Receiving Party that correspond
substantially to the ownership by the Receiving Party of a number of shares of Common Stock specified or referenced in such contract (the
number of shares of Common Stock corresponding to such economic benefits and risks, the “Notional Common Shares”),
regardless of whether obligations under such contract are required or permitted to be settled through the delivery of cash, Common Stock
or other property, without regard to any short position under the same or any other Derivatives Contract. For the avoidance of doubt,
interests in broad-based index options, broad-based index futures and broad-based publicly traded market baskets of stocks approved for
trading by the appropriate federal governmental authority shall not be deemed to be Derivatives Contracts.

 

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

 

(t)               
“Equivalent Preferred Stock” shall have the meaning set forth in Section 11(b) hereof.

 

(u)             
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(v)             
“Exchange Ratio” shall have the meaning set forth in Section 24(a) hereof.

 

(w)            
“Exempt Person” shall mean (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee
benefit plan of the Company or of any Subsidiary of the Company, (iv) any Person or entity organized, appointed, or established by
the Company or any Subsidiary of the Company for or pursuant to the terms of any such employee benefit plan, or (v) any other Person
deemed to be an “Exempt Person” by the Board in its sole discretion prior to the occurrence of a Section 11(a)(ii)
Event; provided, that any exemption granted by the Board under this clause (v) may be granted by resolution of the Board in whole
or in part, and may be subject to limitations or conditions to the extent that the Board shall determine, in its sole discretion, necessary
or desirable.

 

(x)              
“Expiration Date” shall have the meaning set forth in Section 7(a) hereof.

 

(y)              
“Final Expiration Date” shall have the meaning set forth in Section 7(a) hereof.

 

(z)              
“Grandfathered Stockholder” shall have the meaning set forth in Section 1(a)(iv) hereof.

 

(aa)            
“Notional Common Shares” shall have the meaning set forth in Section 1(r) hereof.

 

(bb)           
“Original Rights” shall have the meaning set forth in Section 1(f)(ii) hereof.

 

    6 

     

    

 

(cc)            
 “Person” shall mean any individual, firm, corporation, partnership, limited liability company, limited liability
partnership, association, trust, syndicate, unincorporated organization, or other entity, and shall include any successor (by merger or
otherwise) of such entity.

 

(dd)           
“Preferred Stock” shall mean shares of Series A Junior Participating Preferred Stock, par value $0.001 per
share, of the Company having the rights and preferences set forth in the Certificate of Designation attached to this Agreement as Exhibit A,
and, to the extent that there are not a sufficient number of shares of Series A Junior Participating Preferred Stock authorized to permit
the full exercise of the Rights, any other series of preferred stock of the Company designated for such purpose containing terms substantially
similar to the terms of the Series A Junior Participating Preferred Stock.

 

(ee)            
“Principal Party” shall have the meaning set forth in Section 13(b) hereof.

 

(ff)             
“Purchase Price” shall have the meaning set forth in Section 7(b) hereof.

 

(gg)           
“Receiving Party” shall have the meaning set forth in Section 1(r) hereof.

 

(hh)           
“Record Date” shall have the meaning set forth in the recital to this Agreement.

 

(ii)              
“Redemption Price” shall have the meaning set forth in Section 23(a) hereof.

 

(jj)              
“Right” shall have the meaning set forth in the recital to this Agreement.

 

(kk)            
“Rights Agent” shall have the meaning set forth in the preamble hereto, except as otherwise provided in Section
19 and Section 21 hereof.

 

(ll)              
“Rights Certificate” shall have the meaning set forth in Section 3(a) hereof.

 

(mm)          
“Section 11(a)(ii) Event” shall have the meaning set forth in Section 11(a)(ii) hereof.

 

(nn)           
“Section 13 Event” shall mean any event described in Section 13(a)(i), Section 13(a)(ii), or Section 13(a)(iii)
hereof.

 

(oo)           
“signature guarantee” shall have the meaning set forth in Section 6(a) hereof.

 

(pp)           
“Spread” shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(qq)           
“Stock Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition,
shall include, without limitation, a report filed or amended pursuant to Section 13(d) under the Exchange Act) by the Company or
an Acquiring Person that an Acquiring Person has become such.

 

    7 

     

    

 

 

(rr)             
 “Subsidiary” shall mean, with reference to any Person, any other Person of which an amount of voting securities
(or other ownership interests having ordinary voting power) sufficient to elect or appoint at least a majority of the directors (or other
persons performing similar functions) of such other Person is beneficially owned, directly or indirectly, by such first-mentioned Person,
or otherwise controlled by such first-mentioned Person.

 

(ss)            
“Substitution Period” shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(tt)             
“Trading Day” shall have the meaning set forth in Section 11(d)(i) hereof.

 

(uu)            
“Triggering Event” shall mean a Section 11(a)(ii) Event or any Section 13 Event.

 

(vv)           
“Trust” shall have the meaning set forth in Section 24(f) hereof.

 

(ww)          
“Trust Agreement” shall have the meaning set forth in Section 24(f) hereof.

 

Section 2.               
Appointment of the Rights Agent. The Company hereby appoints the Rights Agent to act as rights agent for the Company and
the registered holders of the Rights (who, in accordance with Section 3 hereof, shall prior to the Distribution Date also be the registered
holders of the Common Stock) in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment.

 

Section 3.               
Issuance of Rights Certificates.

 

(a)               Until
the earlier of (i) the Close of Business on the 10th day after the Stock Acquisition Date (or, if the 10th day after
the Stock Acquisition Date occurs before the Record Date, the Close of Business on the Record Date) and (ii) the Close of
Business on the 10th Business Day (or such later date as the Board may determine prior to the occurrence of a Section 11(a)(ii)
Event) after the date of commencement by or on behalf of any Person (other than an Exempt Person) of a tender offer or exchange
offer, if upon consummation thereof, such Person would become an Acquiring Person (the earlier of (i) and (ii) being
herein referred to as the “Distribution Date”), (A) the Rights will be evidenced (subject to Section 3(b)
and Section 3(c) hereof) by the certificates for the Common Stock registered in the names of the holders of the Common Stock (which
certificates for shares of Common Stock shall be deemed also to be Rights Certificates) or, in the case of Book Entry Shares, by
notation in book entry, and not by separate certificates, and the registered holders of shares of Common Stock shall also be the
registered holders of the associated Rights, and (B) the Rights will be transferable only in connection with the transfer of
the underlying Common Stock (including a transfer to the Company); provided, however, that, if a tender offer or
exchange offer is terminated prior to the occurrence of a Distribution Date, then no Distribution Date shall occur as a result of
such tender offer or exchange offer. The Company shall give the Rights Agent prompt written notice of the Distribution Date. Until
such notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that the Distribution Date
has not occurred; provided, however, that, for the avoidance of doubt, the failure of the Company to timely deliver such notice
shall not alter, amend or modify the rights, privileges and obligations of the holders of Rights. As soon as practicable after the
Distribution Date, the Company will prepare and execute, the Rights Agent will countersign (either by manual or facsimile
signature), and the Company will send or cause to be sent (and the Rights Agent, if so requested, will send at the expense of the
Company), in accordance with Section 26 hereof, to each record holder of the Common Stock as of the Close of Business on the
Distribution Date (other than an Acquiring Person or any Associate or Affiliate of an Acquiring Person), one or more rights
certificates, in substantially the form of Exhibit B hereto (the “Rights Certificates”), evidencing
one Right for each share of Common Stock so held, subject to adjustment as provided herein. In the event that an adjustment in the
number of Rights per share of Common Stock has been made pursuant to Section 11(i) or Section 11(p) hereof, at the time of
distribution of the Rights Certificates, the Company shall not be required to issue Rights Certificates evidencing fractional Rights
but may, in lieu thereof, make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that
Rights Certificates evidencing only whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of
and after the Distribution Date, the Rights will be evidenced solely by such Rights Certificates.

 

    8 

     

    

 

(b)              
With respect to certificates representing Common Stock and Book Entry Shares outstanding as of the Record Date, until the earlier
of the Distribution Date and the Expiration Date, the Rights associated with such Common Stock will be evidenced by such certificates
for Common Stock registered in the names of the holders thereof or Book Entry Shares. Until the earlier of the Distribution Date and the
Expiration Date, the surrender for transfer of any share of Common Stock outstanding on the Record Date (whether evidenced by certificates
for Common Stock registered in the names of the holders thereof or Book Entry Shares) shall also constitute the transfer of the Right
associated therewith.

 

(c)              
Rights shall, without any further action, be issued in respect of all shares of Common Stock that are issued (whether originally
issued or delivered from the Company’s treasury) after the Record Date but prior to the earlier of the Distribution Date and the
Expiration Date and, to the extent provided in Section 22 hereof, in respect of Common Stock issued after the Distribution Date. Certificates
evidencing such Common Stock shall have printed or otherwise affixed to them a legend or statement substantially in the following form:

 

This certificate also evidences and entitles the registered
holder hereof to certain Rights as set forth in the Rights Agreement between Masimo Corporation (the “Company”) and the Rights
Agent thereunder dated as of September 9, 2022 (the “Rights Agreement”), the terms of which are hereby incorporated herein
by reference and a copy of which is on file at the principal 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 registered holder of this certificate a copy of the Rights Agreement, as in effect on the date of mailing, without charge,
promptly after receipt of a written request therefor. Under certain circumstances set forth in the Rights Agreement, Rights beneficially
owned by any Person who is, was, or becomes an Acquiring Person or any Affiliate or Associate thereof (as such terms are defined in the
Rights Agreement), whether currently beneficially owned by or on behalf of such Person or by any subsequent beneficial owner, may become
null and void.

 

    9 

     

    

 

With respect to any Book Entry Shares, a legend or statement in substantially
the form of the foregoing shall be included in the confirmation or account statement or other notice sent to the record holder of such
shares in accordance with applicable law. Until the earlier of the Distribution Date and the Expiration Date, the Rights associated with
the Common Stock evidenced by such certificates and such Book Entry Shares shall be evidenced by such certificates or the Book Entry Shares
alone and the surrender for transfer of any certificate or Book Entry Shares shall also constitute the transfer of the Rights associated
with the Common Stock represented thereby. In the event the Company purchases or otherwise acquires any Common Stock after the Record
Date but prior to the Distribution Date, any Rights associated with such Common Stock shall be deemed cancelled and retired so that the
Company shall not be entitled to exercise any Rights associated with such Common Stock that are no longer outstanding. Notwithstanding
this Section 3(c), the omission of a legend or statement shall not affect the enforceability of any part of this Rights Agreement or the
rights of any holder of the Rights.

 

After the Record Date but prior to the earlier
of the Distribution Date and the Expiration Date, if new certificate(s) representing shares of Common Stock are issued in connection with
the transfer, split up, combination, or exchange of certificate(s) representing shares of Common Stock, or if new certificate(s) representing
shares of Common Stock are issued to replace any certificate(s) that have been mutilated, destroyed, lost, or stolen, then such new certificate(s)
shall bear a legend or statement in substantially the form of the foregoing.

 

Section 4.               
Form of Rights Certificates. The Rights Certificates (and the forms of election to purchase and of assignment and the certificates
contained therein to be printed on the reverse thereof) shall each be substantially in the form attached hereto as Exhibit B
and may have such marks of identification or designation and such legends, summaries, or endorsements printed thereon as the Company may
deem appropriate (but which do not affect the rights, duties, liabilities or responsibilities of the Rights Agent) and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which the Rights may from time to time be listed, or to conform to usage.
Subject to the provisions of Sections 7, 11, 13, 22, 23, 24 and 27 hereof, the Rights Certificates, whenever distributed, shall be
dated as of the Record Date and on their face shall entitle the registered holders thereof to purchase such number of one one-thousandths
of a share of Preferred Stock as shall be set forth therein at the Purchase Price, but the amount and type of securities or other assets
that may be acquired upon the exercise of each Right and the Purchase Price thereof shall be subject to adjustment as provided herein.

 

Section 5.               
Countersignature and Registration.

 

(a)               The
Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its
President, or any Vice President, either manually or by facsimile signature, and shall have affixed thereto the Company’s seal
or a facsimile thereof which shall be attested by the Secretary or an Assistant Secretary of the Company or by such officers as the
Board may designate, either manually or by facsimile signature. The Rights Certificates shall be countersigned by an authorized
signatory of the Rights Agent, either manually or by facsimile signature, 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 Rights Certificates shall cease to be such
officer of the Company before countersignature by an authorized signatory of the Rights Agent and issuance and delivery by the
Company, such Rights Certificates, nevertheless, may be countersigned by an authorized signatory of the Rights Agent and issued and
delivered by the Company with the same force and effect as though the person who signed such Rights Certificates had not ceased to
be such officer of the Company; and any Rights Certificates may be signed on behalf of the Company by any person who, at the actual
date of the execution of such Rights Certificate, shall be a proper officer of the Company to sign such Rights Certificate, although
at the date of the execution of this Agreement any such person was not such an officer.

 

    10 

     

    

 

(b)              
Following the Distribution Date and receipt by the Rights Agent of notice to that effect and all other relevant information referred
to in Section 3(a), the Rights Agent will keep, or cause to be kept, at its office or offices designated as the appropriate place for
surrender of Rights Certificates upon exercise or transfer, books for registration and transfer of the Rights Certificates issued hereunder.
Such books shall show the names and addresses of the respective holders of the Rights Certificates, the number of Rights evidenced on
its face by each of the Rights Certificates, and the date of each of the Rights Certificates.

 

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

 

(a)               Subject
to the provisions of Section 7(e) and Section 14 hereof, at any time after the Close of Business on the Distribution Date, and at or
prior to the Close of Business on the Expiration Date, any Rights Certificate or Certificates (other than Rights Certificates
evidencing Rights that have become null and void pursuant to Section 7(e) or that have been redeemed or exchanged pursuant to
Section 23 or Section 24 hereof) may be transferred, split-up, combined, or exchanged for another Rights Certificate or
Certificates, entitling the registered holder to purchase a like number of one one-thousandths of a share of Preferred Stock (or,
following the occurrence of a Triggering Event, Common Stock, other securities, cash, or other assets, as the case may be) as the
Rights Certificate or Certificates surrendered then entitles 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 Rights Certificate or Certificates shall make such
request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or Certificates to be transferred,
split-up, combined, or exchanged, with the form of assignment and certificate contained therein duly executed, at the office or
offices of the Rights Agent designated for such purpose with all signatures guaranteed by an eligible guarantor institution
participating in a signature guarantee program approved by the Securities Transfer Association (“signature
guarantee”). The Rights Certificates are transferable only on the registry books of the Rights agent. Neither the Rights
Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights
Certificate until the registered holder shall have completed and signed the certificate contained in the form of assignment on the
reverse side of such Rights Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or
former Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request. Thereupon the Rights Agent
shall, subject to Section 7(e), Section 14, and Section 24 hereof, countersign (by manual or facsimile signature) and deliver to the
Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested. The Company may require
payment from a registered holder of a Rights Certificate 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 Rights Certificates. The Rights Agent shall have no
duty or obligation to take any action with respect to a Rights holder under any Section of this Agreement which requires the payment
by such Rights holder of applicable taxes and/or charges unless and until the Rights Agent is reasonably satisfied that all such
taxes and/or charges have been paid.

 

    11 

     

    

 

(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 Rights Certificate, and, in case of loss, theft, or destruction, of indemnity or security reasonably satisfactory to them,
and 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 Rights Certificate, if mutilated, the Company will execute and deliver a new Rights Certificate of like
tenor to the Rights Agent for countersignature and delivery to the registered holder in lieu of the Rights Certificate so lost, stolen,
destroyed, or mutilated. Without limiting the foregoing, the Rights Agent may require the owner of any lost, stolen or destroyed Rights
Certificate, or their legal representative, to provide to the Rights Agent a bond sufficient to indemnify the Rights Agent against any
claim that may be made against it on account of the alleged loss, theft or destruction of any such Rights Certificate or the issuance
of any such new Rights Certificate.

 

(c)               Notwithstanding
any other provisions hereof, the Corporation and the Rights Agent may mutually agree to amend this Agreement to provide for uncertificated
Rights in addition to or in place of Rights evidenced by Rights Certificates.

 

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

 

(a)               Subject
to Section 7(e) hereof, at any time after the Distribution Date the registered holder of any Rights Certificate may exercise the
Rights evidenced thereby (except as otherwise provided herein including, without limitation, the restrictions on exercisability set
forth in Section 9(c) and Section 11(a)(iii) hereof) in whole or in part upon surrender of the Rights Certificate, with the form of
election to purchase and the certificate contained therein properly completed and duly executed, to the Rights Agent at the office
or offices of the Rights Agent designated for such purpose, together with payment of the aggregate Purchase Price with respect to
the total number of one one-thousandths of a share of Preferred Stock (or, following the occurrence of a Triggering Event, Common
Stock, other securities, cash, or other assets, as the case may be) as to which such surrendered Rights are then exercisable and an
amount equal to any tax or charge required to be paid under Section 9(e), at or prior to the earliest of (i) the Close of
Business on September 8, 2023 (or if such day is not a Business Day, the first Business Day thereafter) (the “Final
Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof, and
(iii) the time at which the Rights are exchanged in full as provided in Section 24 hereof (the earliest of (i), (ii), and
(iii) being herein referred to as the “Expiration Date”). Except for those provisions herein which expressly
survive the termination of this Agreement, this Agreement shall terminate at such time as the Rights are no longer exercisable
hereunder.

 

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(b)              
 The purchase price for each one one-thousandth of a share of Preferred Stock pursuant to the exercise of a Right initially shall
be $1,000, shall be subject to adjustment from time to time as provided in Section 11 and Section 13(a) hereof, and shall be payable in
accordance with Section 7(c) hereof (such purchase price, as so adjusted, the “Purchase Price”).

 

(c)              
Upon receipt of a Rights Certificate evidencing exercisable Rights, with the form of election to purchase and the certificate contained
therein properly completed and duly executed, accompanied by payment, with respect to each Right so exercised, of the Purchase Price per
one one-thousandth of a share of Preferred Stock (or, following the occurrence of a Triggering Event, Common Stock, other securities,
cash, or other assets, as the case may be) to be purchased as set forth below and an amount equal to any applicable transfer tax or charge
required to be paid by the holder of such Rights Certificate in accordance with Section 9 hereof, or evidence satisfactory to the Company
of payment of such tax or charge, the Rights Agent shall, subject to Section 20(k) hereof, thereupon promptly (i) (A) requisition
from any transfer agent of the shares of Preferred Stock (or make available, if the Rights Agent is the transfer agent for such shares)
certificates for the total number of one one-thousandths of a share of Preferred Stock 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 shares of Preferred Stock issuable upon exercise of the Rights hereunder with a depositary agent, and provides notice of such election
to the Rights Agent, requisition from the depositary agent depositary receipts evidencing such number of one one-thousandths of a share
of Preferred Stock as are to be purchased (in which case certificates for Preferred Stock evidenced by such receipts shall be deposited
by the transfer agent with the depositary agent) and the Company will direct the depositary agent to comply with such request, (ii) requisition
from the Company the amount of cash, if any, to be paid in lieu of fractional shares in accordance with Section 14 hereof, (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
Rights Certificate, registered in such name or names as may be designated by such holder, and (iv) after receipt thereof, deliver
such cash, if any, to or upon the order of the registered holder of such Rights Certificate. The payment of the Purchase Price (as such
amount may be reduced pursuant to Section 11(a)(iii) hereof) shall be made in cash or by certified bank check or bank draft payable to
the order of the Company. In the event that the Company is obligated to issue other securities (including Common Stock) of the Company,
pay cash, or distribute other property pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so that such
other securities, cash, or other property are available for distribution by the Rights Agent. The Company reserves the right to require
prior to the occurrence of a Triggering Event that, upon any exercise of Rights, a number of Rights be exercised so that only whole shares
of Preferred Stock would be issued.

 

(d)              
In case the registered holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights
Certificate evidencing the Rights remaining unexercised shall be issued by the Rights Agent and delivered to, or upon the order of, the
registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder, subject to the provisions
of Sections 6 and 14 hereof.

 

(e)               Notwithstanding
anything in this Agreement to the contrary, from and after the first occurrence of a Section 11(a)(ii) Event, any Rights
beneficially owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an
Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such, or
(iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not
for consideration) from the Acquiring Person (or any such Associate of Affiliate) to holders of equity interests in such Acquiring
Person (or any such Associate or Affiliate) or to any Person with whom the Acquiring Person (or any such Associate of Affiliate) has
any continuing agreement, arrangement, or understanding (whether or not in writing) regarding the transferred Rights, shares of
Common Stock, or the Company or (B) a transfer that the Board, in its sole discretion, has determined is part of a plan,
arrangement, or understanding (whether or not in writing) that has as a primary purpose or effect the avoidance of the provisions of
this Section 7(e), shall become null and void without any further action and no holder of such Rights shall have any rights or
preferences whatsoever with respect to such Rights, whether under any provision of this Agreement, the Rights Certificates, or
otherwise. The Company shall use all reasonable efforts to ensure that the provisions of this Section 7(e) are complied with, but
shall have no liability to any holder of Rights Certificates or any other Person as a result of its failure to make any
determinations with respect to an Acquiring Person or any of its Affiliates, Associates, or transferees hereunder.

 

    13 

     

    

 

(f)               
Notwithstanding anything in this Agreement or any Rights Certificate to the contrary, neither the Rights Agent nor the Company
shall be obligated to undertake any action with respect to a registered holder of a Rights Certificate upon the occurrence of any purported
exercise as set forth in this Section 7 by such registered holder unless such registered holder shall have (i) properly completed
and duly signed the certificate contained in the form of election to purchase set forth on the reverse side of the Rights Certificate
surrendered for such exercise, (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial
Owner) of the Rights represented by such Rights Certificate or Affiliates or Associates thereof as the Company or the Rights Agent shall
reasonably request and (iii) tendered the Purchase Price (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) to the Company in the manner required by this Agreement.

 

Section 8.               
Cancellation and Destruction of Rights Certificates. All Rights Certificates surrendered for the purpose of exercise, transfer,
split-up, combination, or exchange shall, if surrendered to the Company or 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 Rights Certificates shall be issued in
lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for
cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Rights Certificate purchased or acquired by the
Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Rights Certificates to the Company, or
shall, at the written request of the Company, destroy such cancelled Rights Certificates, and in such case shall deliver a certificate
of destruction thereof to the Company.

 

Section 9.               
Reservation and Availability of Capital Stock.

 

(a)              
 The Company covenants and agrees that at all times prior to the Expiration Date it will cause to be reserved and kept available
out of its authorized and unissued shares of Preferred Stock and/or out of any shares of Preferred Stock held in its treasury (and following
the occurrence of a Triggering Event, out of the authorized but unissued shares of such other equity securities of the Company as may
be issuable upon exercise of the Rights and/or out of any shares of such securities held in its treasury), the number of shares of Preferred
Stock (and following the occurrence of a Triggering Event, the number of shares of such other equity securities of the Company) that will
be sufficient to permit the exercise in full of all outstanding Rights in accordance with Section 7 hereof. Upon the occurrence of any
events resulting in the increase in the aggregate number of shares of Preferred Stock (or other equity securities of the Company) issuable
upon exercise of all outstanding Rights above the number then reserved, the Company shall make appropriate increases in the number of
shares so reserved.

 

    14 

     

    

 

(b)              
So long as the Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock or other securities, as the case
may be) issuable and deliverable upon the exercise of the Rights may be listed on any national securities exchange or quoted on a quotation
system, the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable through the Expiration
Date, all shares reserved for such issuance to be listed on such exchange or quoted on such quotation system, as the case may be, upon
official notice of issuance upon such exercise.

 

(c)               The
Company shall use its best efforts to (i) file, as soon as practicable following the earliest date after the first occurrence
of a Section 11(a)(ii) Event on which the consideration to be delivered by the Company upon exercise of the Rights has been
determined in accordance with Section 11(a) hereof, a registration statement on an appropriate form under the Act, with respect to
the securities purchasable upon exercise of the Rights, (ii) cause such registration statement to become effective as soon as
practicable after such filing, and (iii) cause such registration statement to 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, and (B) the date of the expiration of the Rights. 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 set forth in clause (i) of the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare
and file such registration statement and permit it to become effective. Upon any such suspension, the Company shall issue a public
announcement (with prompt written notice thereof to the Rights Agent) stating that the exercisability of the Rights has been
temporarily suspended, as well as a public announcement (with prompt written notice thereof to the Rights Agent) at such time as the
suspension is no longer in effect. The Company shall notify the Rights Agent in writing whenever it makes a public announcement
pursuant to this Section 9(c) and give the Rights Agent a copy of such announcement. In addition, if the Company shall determine
that a registration statement is required following the Distribution Date, the Company similarly may temporarily suspend the
exercisability of the Rights until such time as a registration statement has been declared effective. 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 shall not be permitted under applicable law, or a registration
statement shall not have been declared effective.

 

    15 

     

    

 

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

 

(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 Rights Certificates and of any certificates for Preferred Stock
(or, following the occurrence of a Triggering Event, Common Stock or other securities, as the case may be) 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 Rights
Certificates to a Person other than, or the issuance or delivery of Preferred Stock (or, following the occurrence of a Triggering Event,
Common Stock or other securities, as the case may be) in a name other than that of the registered holder of the Rights Certificates evidencing
Rights surrendered for exercise or to issue or deliver any certificates for Preferred Stock (or, following the occurrence of a Triggering
Event, Common Stock or other securities, as the case may be) in a name other than that of the registered holder upon the exercise of any
Rights until such tax shall have been paid (any such tax being payable by the registered holder of such Rights Certificates at the time
of surrender) or until it has been established to the Company’s satisfaction that no such tax is due.

 

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

 

    16 

     

    

 

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

 

(a)           
(i)             In the event the Company shall at any time after the date of this Agreement (A) declare or pay a dividend on the shares
of Preferred Stock payable in shares of Preferred Stock, (B) subdivide or split the outstanding shares of Preferred Stock, (C) combine
or consolidate the outstanding shares of Preferred Stock into a smaller number of shares, or (D) issue any shares of its capital
stock in a reclassification of the shares of Preferred Stock (including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation), except as otherwise provided in this Section 11(a) and Section
7(e) hereof, the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such subdivision,
split, combination, consolidation, or reclassification, and the number and kind of shares (or fractions thereof) of Preferred Stock (or
other capital stock, as the case may be), issuable on such date, shall be proportionately adjusted so that the registered holder of any
Right exercised after such time shall be entitled to receive, upon payment of the Purchase Price then in effect, the aggregate number
and kind of shares (or fractions thereof) of Preferred Stock (or other capital stock, as the case may be), which, if such Right had been
exercised immediately prior to such date (whether or not such Right was then exercisable) and at a time when the Preferred Stock (or other
capital stock, as the case may be) 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, split, combination, consolidation, 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
(or fractions thereof) of capital stock of the Company issuable upon the exercise of one Right. If an event occurs that would require
an adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, 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) hereof.

 

(ii)             
In the event any Person shall become an Acquiring Person (a “Section 11(a)(ii) Event”), then, promptly following
the occurrence of such Section 11(a)(ii) Event, proper provision shall be made so that each registered holder of a Right (except as provided
below and in Section 7(e), Section 13 and Section 24 hereof) shall thereafter have the right to receive, upon exercise thereof at a price
equal to the then current Purchase Price in accordance with the terms of this Agreement, in lieu of a number of one one-thousandths of
a share of Preferred Stock, such number of shares of Common Stock as shall equal the result obtained by (A) multiplying the then
current Purchase Price by the then number of one one-thousandths of a share of Preferred Stock for which a Right was exercisable immediately
prior to the first occurrence of a Section 11(a)(ii) Event, and (B) dividing that product (which, following such first occurrence,
shall thereafter be referred to as the “Purchase Price” for each Right and for all purposes of this Agreement other
than Section 13 hereof) by 50% of the Current Market Price per share of Common Stock on the date of such first occurrence (such number
of shares of Common Stock, the “Adjustment Shares”).

 

    17 

     

    

 

(iii)            In
the event that (A) the number of shares of Common Stock authorized by the Certificate of Incorporation, but which are not
outstanding or reserved for issuance for purposes other than upon exercise of the Rights, are not sufficient to permit the exercise
in full of the Rights in accordance with Section 11(a)(ii) hereof or (B) the Board otherwise shall determine to do so in its
sole discretion, the Company, acting by resolution of the Board, shall (1) determine the value of the Adjustment Shares
issuable upon the exercise of a Right (the “Current Value”), and (2) with respect to each Right (subject to
Section 7(e) hereof), make adequate provision to substitute for the Adjustment Shares, upon the exercise of such Right and payment
of the applicable Purchase Price, (u) cash, (v) a reduction in the Purchase Price, (w) Common Stock or other equity
securities of the Company (including, without limitation, shares, or units of shares, of preferred stock, such as the Preferred
Stock, which the Board has deemed to have essentially the same value or economic rights as Common Stock (such shares of preferred
stock being referred to as “Common Stock Equivalents”)), (x) debt securities of the Company, (y) other
assets, or (z) any combination of the foregoing, having an aggregate value equal to the Current Value, where such aggregate
value has been determined by the Board based upon the advice of a nationally recognized investment banking firm selected by the
Board; provided, however, that, if, under the circumstances set forth in clause (A) above, the Company shall not
have made adequate provision to deliver value pursuant to clause (2) above within 30 days following the first
occurrence of a Section 11(a)(ii) Event, then the Company shall be obligated to deliver, upon the surrender for exercise of a Right
and without requiring payment of the Purchase Price, Common Stock (to the extent available) and then, if necessary, cash, which
shares and cash have an aggregate value equal to the Spread. For purposes of the preceding sentence, the term
 “Spread” shall mean the excess of the Current Value over the Purchase Price. If the Board determines in good
faith that it is likely that sufficient additional Common Stock could be authorized for issuance upon exercise in full of the
Rights, the 30-day period set forth above may be extended to the extent necessary, but not more than 90 days
following the first occurrence of a Section 11(a)(ii) Event, in order that the Company may seek stockholder approval for the
authorization of such additional shares (such 30-day period, as it may be extended, is herein called the “Substitution
Period”). To the extent that action is to be taken pursuant to the first or third sentences of this Section 11(a)(iii),
the Company shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly to all outstanding Rights, and the
Company may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek such
stockholder approval for such authorization of additional shares or to decide the appropriate form of distribution to be made
pursuant to such first sentence and to determine the value thereof. In the event of any such suspension, the Company shall issue a
public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement
at such time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the value of each Adjustment Share
shall be the Current Market Price per share of Common Stock on the date of the first occurrence of a Section 11(a)(ii) Event and the
per share or per unit value of any Common Stock Equivalent shall be deemed to equal the Current Market Price per share of Common
Stock on such date.

 

(b)               In
case the Company shall fix a record date for the issuance of rights, options, or warrants to all registered holders of Preferred
Stock entitling them to subscribe for or purchase (for a period expiring within 45 calendar days after such record date)
Preferred Stock (or shares having the same rights, privileges, and preferences as the shares of Preferred Stock
(“Equivalent Preferred Stock”)) or securities convertible into shares of Preferred Stock or Equivalent Preferred
Stock at a price per share of Preferred Stock or Equivalent Preferred Stock (or having a conversion price per share, if a security
convertible into shares of Preferred Stock or Equivalent Preferred Stock) less than the Current Market Price per share of Preferred
Stock on such record date, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase
Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the number of shares of
Preferred Stock outstanding on such record date plus the number of shares of Preferred Stock that the aggregate subscription or
offering price of the total number of shares of Preferred Stock and/or Equivalent Preferred Stock so to be offered (and/or the
aggregate initial conversion price of the convertible securities so to be offered) would purchase at such Current Market Price, and
the denominator of which shall be the number of shares of Preferred Stock outstanding on such record date plus the number of
additional shares of Preferred Stock and/or Equivalent Preferred Stock to be offered for subscription or purchase (or into which the
convertible securities so to be offered are initially convertible). In case such subscription price may be paid by delivery of
consideration, part or all of which may be in a form other than cash, the value of such consideration shall be as determined in good
faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall be binding and
conclusive for all purposes on the Rights Agent and the holder of the Rights. Preferred Stock owned by or held for the account of
the Company or any Subsidiary shall not be deemed outstanding for the purpose of any such computation. Such adjustments shall be
made successively whenever such a record date is fixed, and in the event that such rights, options, or warrants are not so issued,
the Purchase Price shall be adjusted to be the Purchase Price that would then be in effect if such record date had not been
fixed.

 

    18 

     

    

 

(c)              
In case the Company shall fix a record date for a distribution to all registered holders of Preferred Stock (including any such
distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation) of cash
(other than a regular periodic cash dividend out of the earnings or retained earnings of the Company), assets (other than a dividend payable
in shares of Preferred Stock, but including any dividend payable in stock other than Preferred Stock) or evidences of indebtedness, or
of subscription rights, options or warrants (excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect
after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the Current Market Price per share of Preferred Stock on such record date, less the fair market value
(as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall
be binding and conclusive for all purposes on the Rights Agent and the holders of the Rights) of the portion of the cash, assets or evidences
of indebtedness so to be distributed, or of such subscription rights, options or warrants applicable to a share of Preferred Stock, and
the denominator of which shall be such Current Market Price per share of Preferred Stock. Such adjustments shall be made successively
whenever such a record date is fixed, and in the event that such distribution is not so made, the Purchase Price shall be adjusted to
be the Purchase Price that would then be in effect if such record date had not been fixed.

 

(d)           
(i)             
For the purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii) hereof, the “Current
Market Price” per share of Common Stock on any date shall be deemed to be the average of the daily closing prices per share
of Common Stock for the 30 consecutive Trading Days immediately prior to such date, and for purposes of computations made pursuant
to Section 11(a)(iii) hereof, the “Current Market Price” per share of Common Stock on any date shall be deemed to
be the average of the daily closing prices per share of Common Stock for the 10 consecutive Trading Days immediately following such
date; provided, however, that in the event that the Current Market Price per share of Common Stock is determined during
a period following the announcement by the issuer of (A) a dividend or distribution on such Common Stock payable in shares of Common
Stock or securities convertible into such Common Stock (other than the Rights), or (B) any subdivision, combination, or reclassification
of such Common Stock, and the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination,
or reclassification shall not have occurred prior to the commencement of the requisite 30-Trading Day or 10-Trading Day period, as set
forth above, then, and in each such case, the Current Market Price shall be properly adjusted to take into account ex-dividend trading.
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 Nasdaq Global Select Market or, if the Common Stock is not listed or
admitted to trading on the Nasdaq Global Select Market, as reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national securities exchange on which the Common Stock is listed or admitted to trading or, if
the Common Stock is 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 on a quotation system then in use, or, if
on any such date the Common Stock is not so quoted, the average of the closing bid and asked prices as furnished by a professional market
maker making a market in the Common Stock selected by the Board. If on any such date the Common Stock is not publicly held and is not
so listed, admitted to trading, or quoted, and no market maker is making a market in the Common Stock, the “Current Market Price”
per share of Common Stock shall mean the fair value per share on such date as determined in good faith by the Board, which determination
shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. The term “Trading Day”
shall mean a day on which the principal national securities exchange on which the Common Stock is listed or admitted to trading is open
for the transaction of business or, if the Common Stock is not listed or admitted to trading on any national securities exchange, a Business
Day.

 

    19 

     

    

 

(ii)              For
the purpose of any computation hereunder, the “Current Market Price” per share of Preferred Stock shall be
determined in the same manner as set forth above for the Common Stock in Section 11(d)(i) hereof (other than the penultimate
sentence thereof). If the Current Market Price per share of Preferred Stock cannot be determined in the manner provided above or if
the shares of Preferred Stock are not publicly held or listed, admitted to trading, or quoted in a manner described in Section
11(d)(i) hereof, the Current Market Price per share of Preferred Stock shall be conclusively deemed to be an amount equal
to 1,000 (as such number may be appropriately adjusted for such events as stock splits, stock dividends, and recapitalizations
with respect to the Common Stock occurring after the date of this Agreement) multiplied by the Current Market Price per share of
Common Stock. If neither the Common Stock nor the Preferred Stock is publicly held or listed, admitted to trading, or quoted, the
 “Current Market Price” per share of Preferred Stock shall mean the fair value per share as determined in good
faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for
all purposes. For all purposes of this Agreement, the Current Market Price of one one-thousandth of a share of Preferred Stock
shall be equal to the Current Market Price of one share of Preferred Stock divided by 1,000.

 

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

 

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

 

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

 

(h)              
Unless the Company shall have exercised its election as provided in Section 11(i) hereof, upon each adjustment of the Purchase
Price as a result of the calculations made in Section 11(b) and Section 11(c) hereof, each Right outstanding immediately prior to the
making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths
of a share of Preferred Stock (calculated to the nearest ten-millionth) obtained by (i) multiplying (A) the number of one one-thousandths
of a share of Preferred Stock covered by a Right immediately prior to this adjustment, by (B) 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.

 

    20 

     

    

 

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

 

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

 

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

 

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

 

    21 

     

    

 

(m)            
 Anything in this Section 11 to the contrary notwithstanding, prior to the Distribution Date the Company shall be entitled to make
such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that
in its good faith judgment the Board shall determine to be advisable in order that any (i) consolidation or subdivision of the Preferred
Stock, (ii) issuance wholly for cash of any Preferred Stock at less than the Current Market Price, (iii) issuance wholly for
cash of Preferred Stock or securities that by their terms are convertible into or exchangeable for Preferred Stock, (iv) stock dividends,
or (v) issuance of rights, options, or warrants referred to in this Section 11, hereafter made by the Company to registered holders
of its Preferred Stock shall not be taxable to such stockholders or shall reduce the taxes payable by such holders.

 

(n)              
The Company covenants and agrees that in the event that a Section 11(a)(ii) Event occurs and the Rights shall then be outstanding,
it shall not, (i) consolidate with any other Person (other than a direct or indirect wholly owned Subsidiary of the Company in a
transaction that complies with Section 11(o) hereof), (ii) merge with or into any other Person (other than a direct or indirect wholly
owned Subsidiary of the Company in a transaction that complies with Section 11(o) hereof), or (iii) sell or otherwise transfer (or
permit any Subsidiary to sell or otherwise transfer), in one transaction, 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 and calculated on the
basis of the Company’s most recent regularly prepared financial statements) to any other Person or Persons (other than the Company
and/or any of its direct or indirect wholly owned Subsidiaries in one or more transactions, each of which complies with Section 11(o)
hereof), if (A) at the time of or immediately after such consolidation, merger, sale, or transfer there are any charter or bylaw
provisions, rights, warrants, or other instruments or securities outstanding or agreements in effect that would substantially diminish
or otherwise eliminate the benefits intended to be afforded by the Rights or (B) prior to, simultaneously with, or immediately after
such consolidation, merger, sale, or transfer the stockholders of the Person who constitutes, or would constitute, the “Principal
Party” for purposes of Section 13(a) hereof shall have received a distribution of Rights previously owned by such Person or any
of its Affiliates and Associates; provided, however, this Section 11(n) shall not affect the ability of any Subsidiary of
the Company to consolidate with, merge with or into, or sell or transfer assets or earning power to, any other Subsidiary of the Company.

 

(o)              
The Company covenants and agrees that in the event that a Section 11(a)(ii) Event occurs and the Rights shall then be outstanding,
it will not, except as permitted by Section 23, Section 24, or Section 27 hereof, take (or permit any Subsidiary to take) any action if
at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the
benefits intended to be afforded by the Rights.

 

(p)               Anything
in this Agreement to the contrary notwithstanding, in the event that the Company shall at any time after September 9, 2022 and prior
to the Distribution Date (i) declare or pay a dividend on the outstanding Common Stock payable in shares of Common Stock,
(ii) subdivide or split the outstanding Common Stock, or (iii) combine or consolidate the outstanding Common Stock into a
smaller number of shares, the number of Rights associated with each share of Common Stock then outstanding, or issued or delivered
thereafter but prior to the Distribution Date (or issued or delivered on or after the Distribution Date pursuant to Section 22
hereof), shall be proportionately adjusted so that the number of Rights thereafter associated with each share of Common Stock
following any such event shall equal the result obtained by multiplying the number of Rights associated with each share of Common
Stock immediately prior to such event by a fraction, the numerator of which shall be the total number of shares of Common Stock
outstanding immediately prior to the occurrence of the event and the denominator of which shall be the total number of shares of
Common Stock outstanding immediately following the occurrence of such event. The adjustment provided for in this Section 11(p) shall
be made successively whenever such a dividend is declared or paid or such a subdivision, split, combination, or reclassification is
effected. If an event occurs that would require an adjustment under Section 11(a)(ii) and this Section 11(p), the adjustment
provided for in this Section 11(p) shall be in addition and prior to any adjustment required pursuant to Section 11(a)(ii).

 

    22 

     

    

 

Section 12.           
Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 or
Section 13 hereof, 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 each transfer agent for the Preferred Stock
and the Common Stock, a copy of such certificate, and (c) if a Distribution Date has occurred, mail a brief summary thereof to each
registered holder of a Rights Certificate in accordance with Section 26 hereof. The Rights Agent shall be fully protected in relying on
any such certificate and on any adjustment therein contained and shall have no duty or liability with respect to, and shall not be deemed
to have knowledge of any such adjustment unless and until it shall have received such certificate.

 

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

 

(a)              
In the event that, at any time after a Person has become an Acquiring Person, directly or indirectly,

 

(i)              
the Company shall consolidate with, or merge with and into, any other Person (other than a direct or indirect wholly owned Subsidiary
of the Company in a transaction that complies with Section 11(o) hereof), and the Company shall not be the continuing or surviving corporation
or other entity of such consolidation or merger;

 

(ii)             
any Person (other than a direct or indirect wholly owned Subsidiary of the Company in a transaction that complies with Section
11(o) hereof) shall consolidate with, or merge with or into, the Company, and the Company shall be the continuing or surviving corporation
of such consolidation or merger and, in connection with such consolidation or merger, all or part of the outstanding Common Stock shall
be changed into or exchanged for stock or other securities of any other Person (or the Company) or cash or any other property; or

 

(iii)            the
Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one transaction
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 and calculated on the basis of the Company’s most recent regularly prepared
financial statements) to any Person or Persons (other than the Company or any of its direct or indirect wholly owned Subsidiaries in
one or more transactions, each of which complies with Section 11(o) hereof);

 

    23 

     

    

 

then, and in each such case, proper provision shall be made so that:
(A) each registered holder of a Right, except as provided in Section 7(e) hereof, shall thereafter have the right to receive, upon
the exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, such number of validly authorized
and issued, fully paid, non-assessable and freely tradeable shares of Common Stock of the Principal Party, not subject to any liens, encumbrances,
rights of first refusal, or other adverse claims, as shall be equal to the result obtained by (1) multiplying the number of one one-thousandths
of a share of Preferred Stock for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event
by the Purchase Price in effect immediately prior to such first occurrence of a Section 11(a)(ii) Event, and (2) dividing that product
(which, following the first occurrence of a Section 13 Event, shall be referred to as the “Purchase Price” for each
Right and for all purposes of this Agreement) by 50% of the Current Market Price per share of Common Stock of such Principal Party
on the date of consummation of such Section 13 Event; (B) such Principal Party shall thereafter be liable for, and shall assume,
by virtue of such Section 13 Event, all the obligations and duties of the Company pursuant to this Agreement; (C) the term “Company”
shall thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 hereof shall
apply only to such Principal Party following the first occurrence of a Section 13 Event; (D) such Principal Party shall take such
steps (including, but not limited to, the reservation of a sufficient number of shares of Common Stock of such Principal Party) 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 shares of Common Stock thereafter deliverable upon the exercise of the Rights; and
(E) the provisions of Section 11(a)(ii) hereof shall be of no effect with respect to events occurring at any time following the first
occurrence of any Section 13 Event.

 

(b)              
“Principal Party” shall mean:

 

(i)             
in the case of any transaction described in Section 13(a)(i) or Section 13(a)(ii) hereof, (A) the Person (including the Company
as successor thereto or as the surviving entity) that is the issuer of any securities or other equity interests into which shares of Common
Stock of the Company are converted, changed, or exchanged in such merger or consolidation, or if there is more than one such issuer, the
issuer of Common Stock that has the greatest aggregate market value, or (B) if no securities or other equity interests are so issued,
the Person that is the other constituent party to such merger or consolidation, or, if there is more than one such Person, the other Person
that is a constituent party to such merger or consolidation, the Common Stock of which has the greatest aggregate market value; and

 

(ii)              in
the case of any transaction described in Section 13(a)(iii) hereof, the Person that is the party receiving the greatest portion of
the assets or earning power transferred pursuant to such transaction or transactions or, if each Person that is a party to such
transaction or transactions receives the same portion of the assets or earning power transferred pursuant to such transaction or
transactions or if the Person receiving the largest portion of the assets or earning power cannot be determined, whichever of such
Persons is the issuer of Common Stock having the greatest aggregate value of shares outstanding; provided, however,
that in any such case, (A) if the Common Stock of such Person is not at such time and has 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 Stock of which is and has been so registered, “Principal Party” shall refer to
such other Person; and (B) in case such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common
Stock 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 Stock having the greatest aggregate market value.

 

    24 

     

    

 

(c)              
The Company shall not consummate a Section 13 Event unless the Principal Party shall have a sufficient number of authorized shares
of Common Stock that have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this
Section 13 and unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental
agreement confirming that the requirements of Section 13(a) and Section 13(b) hereof shall promptly be performed in accordance with their
terms and further providing that, as soon as practicable after the date of any such 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 will 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 Expiration Date;

 

(ii)            
take all such other action as may be necessary to enable the Principal Party to issue the securities purchasable upon exercise
of the Rights, including but not limited to the registration or qualification of such securities under all requisite securities laws of
jurisdictions of the various states and the listing of such securities on such exchanges and trading markets as may be necessary or appropriate;
and

 

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

 

The provisions of this Section 13 shall similarly apply to successive
mergers or consolidations or sales or other transfers. In the event that a Section 13 Event shall occur at any time after the occurrence
of a Section 11(a)(ii) Event, the Rights that have not theretofore been exercised shall thereafter become exercisable in the manner described
in Section 13(a) hereof.

 

Section 14.           
Fractional Rights and Fractional Shares.

 

(a)               The
Company shall not be required to issue fractions of Rights, except prior to the Distribution Date as provided in Section 11(p)
hereof, or to distribute Rights Certificates that evidence fractional Rights. In lieu of such fractional Rights, the Company shall
pay to the registered holders of the Rights 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 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 of the Rights for any Trading 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 Nasdaq Global Select Market or, if the Rights are not listed or admitted to trading on the Nasdaq
Global Select Market, 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 a quotation system then in use or, if on any such date the Rights
are not so quoted, the average of the closing bid and asked prices as furnished by a professional market maker making a market in
the Rights, selected by the Board. If on any such date the Rights are not publicly held and are not so listed, admitted to trading,
or quoted, and no market maker is making a market in the Rights, the current market value of a Right shall mean the fair value of a
Right on such date as determined in good faith by the Board, which determination shall be described in a statement filed with the
Rights Agent and shall be conclusive for all purposes.

 

    25 

     

    

 

(b)              
The Company shall not be required to issue fractions of a share of Preferred Stock (other than fractions that are integral multiples
of one one-thousandth of a share of Preferred Stock) upon exercise of the Rights or to distribute certificates that evidence fractional
shares of Preferred Stock (other than fractions that are integral multiples of one one-thousandth of a share of Preferred Stock). In lieu
of fractional shares of Preferred Stock that are not integral multiples of one one-thousandth of a share of Preferred Stock, the Company
may pay to the registered holders of Rights Certificates 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 one-thousandth of a share of Preferred Stock. For purposes of this Section 14(b),
the current market value of one one-thousandth of a share of Preferred Stock shall be one one-thousandth of the closing price of a share
of Preferred Stock or, if unavailable, the appropriate alternative price (in each case, as determined pursuant to Section 11(d)(ii) hereof)
for the Trading Day immediately prior to the date of such exercise.

 

(c)              
Following the occurrence of a Triggering Event, the Company shall not be required to issue fractions of Common Stock upon exercise
of the Rights or to distribute certificates or Book Entry Shares that evidence fractional shares of Common Stock. In lieu of fractional
shares of Common Stock, the Company may pay to the registered holders of Rights Certificates 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 share of Common Stock. For purposes of
this Section 14(c), the current market value of one share of Common Stock shall be the closing price of one share of Common Stock or,
if unavailable, the appropriate alternative price (in each case, as determined pursuant to Section 11(d)(i) hereof) on the Trading Day
immediately prior to the date of such exercise.

 

(d)               Whenever
a payment for fractional Rights or fractions shares or other securities is to be made by the Rights Agent, the Company shall (i)
promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payments
and the prices and/or formulas utilized in calculating such payments, and (ii) provide sufficient monies to the Rights agent in the
form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such a certificate
and shall have no duty with respect to, and shall not be deemed to have knowledge of any payment for fractional Rights or fractional
shares or other securities unless and until the Rights Agent shall have received such a certificate and sufficient monies.

 

    26 

     

    

 

  

(e)          The
registered holder of a Right by the acceptance of that Right expressly waives such holder’s right to receive any fractional Rights
or any fractional shares upon exercise of a Right, except as permitted by this Section 14.

 

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 and Section 20 hereof, are vested in the respective registered holders of the Rights Certificates (and, prior to
the Distribution Date, of the Common Stock); and any registered holder of any Rights Certificate (and, prior to the Distribution Date,
of the Common Stock), without the consent of the Rights Agent or of the registered holder of any other Rights Certificate (or, prior to
the Distribution Date, of the Common Stock), may, on such first holder’s own behalf and for such first 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 first holder’s right to exercise the Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate
and in this Agreement. Without limiting the foregoing or any remedies available to the registered holders of Rights, it is specifically
acknowledged that the registered holders of Rights would not have an adequate remedy at law for any breach of this Agreement and shall
be entitled to specific performance of the obligations hereunder and injunctive relief against actual or threatened violations of the
obligations hereunder of any Person subject to this Agreement.

 

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

 

(a)          
prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of Common Stock, and the Rights
will be evidenced by the balances indicated in the book entry account system of the transfer agent of the Common Stock registered in the
names of the holders of Common Stock or, in the case of certificated shares, the certificates for the Common Stock registered in the names
of the holders of the Common Stock;

 

(b)         
after the Distribution Date, the Rights 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
and with the appropriate forms and certificates contained therein duly executed along with a signature guarantee and such other documentation
as the Company or the Rights Agent may reasonably request;

 

(c)            subject
to Section 6(a) and Section 7(f) hereof, the Company and the Rights Agent may deem and treat the Person in whose name a Rights Certificate
(or, prior to the Distribution Date, a Common Stock certificate or Book Entry Share) is registered as the absolute owner thereof and
of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Rights Certificates or the Common Stock
certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights
Agent, subject to the last sentence of Section 7(e) hereof, shall be required to be affected by any notice to the contrary; and

 

    27 

     

    

  

(d)          notwithstanding
anything in this Agreement to the contrary, neither the Company nor the Rights Agent, nor any of their directors, officers, employees
and agents, shall have any liability to any registered holder of a Right or other Person as a result of its inability 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; provided, however, that the Company must use its best efforts to have any such injunction, order, judgment,
decree, or ruling lifted or otherwise overturned as soon as possible.

 

Section 17.           
Rights Certificate Holder Not Deemed a Stockholder. No registered holder, as such, of any Rights Certificate shall be entitled
to vote, receive dividends, or be deemed for any purpose the registered holder of the Preferred Stock or any other securities of the Company
that may at any time be issuable on the exercise of the Rights evidenced thereby, nor shall anything contained herein or in any Rights
Certificate be construed to confer upon the registered holder of any Rights Certificate, as such, any of the rights of a stockholder of
the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or
to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except
as provided in Section 25 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by
such Rights Certificate shall have been exercised in accordance with the provisions hereof.

 

Section 18.           
Concerning the Rights Agent.

 

(a)         The
Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, reimbursement for its reasonable expenses and counsel fees and other disbursements incurred in the
preparation, negotiation, delivery, amendment, administration and execution of this Agreement and the exercise and performance of
its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss,
liability, damage, claim or expense (including reasonable fees and expenses arising therefrom, directly or indirectly, or enforcing
its rights hereunder) incurred without gross negligence, bad faith, or willful misconduct on the part of the Rights Agent (each as
determined by a final, non-appealable judgment of a court of competent jurisdiction), for any action taken, suffered or omitted to
be taken by the Rights Agent in connection with the acceptance, administration, exercise and performance of its duties under this
Agreement, including the costs and expenses of defending against any claim of liability arising therefrom, directly or indirectly,
or enforcing its rights hereunder. The provisions of this Section 18 and of Section 20 below shall survive the termination of this
Agreement, the exercise or expiration of the Rights and the resignation, replacement or removal of the Rights Agent. The Rights
Agent shall not be deemed to have any knowledge of any event for which it was supposed to receive notice of hereunder, and the
Rights Agent shall be fully protected and shall incur no liability for failing to take any action in connection therewith, unless
and until it has received such notice in writing.

 

    28 

     

    

 

(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 acceptance and administration of this Agreement and the exercise and performance of its duties hereunder in reliance upon any
Rights Certificate or certificate for Common Stock or for other securities of the Company or 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 have been signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons.

 

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

 

(a)           Any
Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting
from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to
the corporate trust, stock transfer, or other shareholder services 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 hereto; but only if such Person would be eligible for appointment as a successor Rights Agent under the provisions
of Section 21 hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the
Rights Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of
an authorized signatory of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time
any of the Rights Certificates shall not have been countersigned, an authorized signatory of any successor Rights Agent may countersign
such Rights Certificates either in the name of the predecessor or in the name of the successor Rights Agent; and in all such cases such
Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement.

 

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

 

Section 20.           
Duties of the Rights Agent. The Rights Agent undertakes to perform only the duties and obligations imposed by this Agreement
upon the following terms and conditions, by all of which the Company and the registered holders of Rights Certificates, by their acceptance
thereof, shall be bound:

 

(a)          The Rights Agent may consult with legal counsel (who may be legal counsel for the Company or an employee of the Rights Agent),
and the opinion or advice of such counsel shall be full and complete authorization and protection to the Rights Agent and the Rights
Agent shall incur no liability as to any action taken, suffered or omitted to be taken by it in good faith and in accordance with such
opinion or advice.

 

    29 

     

    

 

(b)          Whenever
in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including,
without limitation, the identity of any Acquiring Person and the determination of Current Market Price) be proved or established by the
Company prior to taking, suffering or omitting to take any action hereunder, such fact or matter (unless other evidence in respect thereof
be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by the Chairman of
the Board and Chief Executive Officer, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, or any
Assistant Treasurer of the Company and delivered to the Rights Agent; and such certificate shall be full authorization and protection
to the Rights Agent for any action taken, suffered or omitted to be taken in good faith by it under the provisions of this Agreement
in reliance upon such certificate.

 

(c)          The
Rights Agent shall be liable hereunder only for its own gross negligence, bad faith, or willful misconduct (each as determined by a final,
non-appealable judgment of a court of competent jurisdiction). In no case, however, will the Rights Agent be liable for any special,
indirect, punitive, incidental or consequential losses or damages of any kind whatsoever (including but not limited to lost profits or
reputational harm), even if the Rights Agent has been advised of the possibility of such damages.

 

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

 

(e)          The
Rights Agent shall not have any liability for or be under any responsibility in respect of the validity of this Agreement or the execution
and delivery hereof (except the due execution and delivery hereof by the Rights Agent) or in respect of the validity or execution of
any Rights Certificate (except a countersignature by one of its authorized signatories on any such Rights Certificate); nor shall it
be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Rights Certificate; nor
shall it be responsible for any adjustment required under the provisions of Section 11, Section 13, or Section 24 hereof or responsible
for the manner, method, or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment
(except with respect to the exercise of Rights evidenced by Rights Certificates after actual notice of any such adjustment upon which
the Rights Agent may conclusively rely); nor shall it by any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Common Stock or Preferred Stock or other securities to be issued pursuant to this Agreement
or any Rights Certificate or as to whether any shares of Common Stock or Preferred Stock or other securities will, when so issued, be
validly authorized and issued, fully paid, and nonassessable.

 

    30 

     

    

 

(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 hereunder from the
Chairman of the Board and Chief Executive Officer, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer,
or any Assistant Treasurer of the Company, and to apply to such officers for advice or instructions in connection with its duties and
such instructions shall be full authorization and protection to the Rights Agent, and the Rights Agent shall not be liable for any action
taken, suffered or omitted to be taken by it in good faith in accordance with instructions of any such officer or for any delay in acting
while waiting for those instructions. The Rights Agent shall be fully authorized and protected in relying in good faith upon the most
recent instructions received by it from any such officer. Any application by the Rights Agent for written instructions from the Company
may, at the option of the Rights Agent, set forth in writing any action proposed to be taken, suffered or omitted to be taken by the
Rights Agent under this Agreement and the date on and/or after which such action shall be taken or suffered or such omission shall be
effective. The Rights Agent shall not be liable for any action taken, suffered or omitted to be taken by the Rights Agent in accordance
with a proposal included in any such application on or after the date specified therein (which date shall not be less than five Business
Days after the date any officer of the Company actually receives such application, unless any such officer shall have consented in writing
to an earlier date) unless, prior to taking any such action (or the effective date in case of an omission), the Rights Agent shall have
received written instructions in response to such application specifying the action to be taken, suffered or omitted to be taken.

 

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

 

(i)           The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either
itself or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect,
or misconduct of any such attorneys or agents or for any loss to the Company, any holder of Rights or any other Person resulting from
any such act, default, neglect, or misconduct absent gross negligence, bad faith or willful misconduct (each as determined by a final,
non-appealable judgment of a court of competent jurisdiction).

 

(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 hereunder or in the exercise of its rights 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 Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate contained
in the form of assignment or form of election to purchase, as the case may be, has either not been completed or indicates an affirmative
response to clause 1 or 2 thereof, the Rights Agent shall not take any further action with respect to such requested exercise
or transfer without first consulting with the Company.

 

    31 

     

    

 

Section 21.           
Change of the Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties
under this Agreement upon 60 days’ prior written notice given to the Company in accordance with Section 26 hereof, and,
in the event that the Rights Agent or one of its affiliates is not also the transfer agent for the Company, to each transfer agent of
the Common Stock and Preferred Stock by registered or certified mail, and, if such resignation occurs after the Distribution Date, to
the registered holders of the Rights Certificates in accordance with Section 26 hereof. In the event that the transfer agency relationship
in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned automatically and be discharged
from its duties under this Agreement as of the effective date of such termination, and the Company shall be responsible for sending any
required notice related thereto. The Company may remove the Rights Agent or any successor Rights Agent upon 60 days’ prior
written notice given to the Rights Agent or successor Rights Agent, as the case may be, in accordance with Section 26 hereof, and to each
transfer agent of the Common Stock and Preferred Stock by registered or certified mail, and, if such removal occurs after the Distribution
Date, to the registered holders of the Rights Certificates in accordance with Section 26 hereof. 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 proper notice of such removal or after it has been properly
notified of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the registered holder of a Rights Certificate
(who shall, with such notice, submit such holder’s Rights Certificate for inspection by the Company), then any registered holder
of any Rights 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 legal business entity organized and doing business under
the laws of the United States or of any state of the United States, in good standing, which is authorized under such laws to exercise
corporate trust, stock transfer, or shareholder services powers and which has at the time of its appointment as Rights Agent a combined
capital and surplus or net assets, on a consolidated basis, of at least $50 million or (b) an affiliate of a legal business
entity 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 hereunder, and execute and deliver
any further assurance, conveyance, act, or deed necessary for that purpose. Not later than the effective date of any such appointment,
the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Stock and the
Preferred Stock, and, if such appointment occurs after the Distribution Date, give notice thereof to the registered holders of the Rights
Certificates in accordance with Section 26 hereof. Failure to give any notice provided for in this Section 21, however, or any defect
therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor
Rights Agent, as the case may be.

 

Section 22.           
Issuance of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights Certificates to
the contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by the
Board to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property
purchasable under the Rights Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the
issuance or sale of Common Stock following the Distribution Date and prior to the Expiration Date, the Company (a) shall, with respect
to Common Stock so issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement, granted or awarded
as of the Distribution Date, or upon the exercise, conversion, or exchange of securities hereinafter issued by the Company, and (b) may,
in any other case, if deemed necessary or appropriate by the Board, issue Rights Certificates evidencing the appropriate number of Rights
in connection with such issuance or sale; provided, however, that (i) no such Rights Certificate shall be issued if,
and to the extent that, the Company shall be advised by counsel that such issuance would create a significant risk of material adverse
tax consequences to the Company or the Person to whom such Rights Certificate would be issued, and (ii) no such Rights Certificate
shall be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof.

 

    32 

     

    

 

Section 23.           
Redemption and Termination.

 

(a)          The
Board may, at its option, at any time prior to the earlier of (i) the occurrence of a Section 11(a)(ii) Event and (ii) the
Expiration Date, direct the Company to, and if directed the Company shall, redeem all but not less than all of the then outstanding Rights
at a redemption price of $0.01 per Right, as such amount may be appropriately adjusted to reflect any stock split, stock dividend, or
similar transaction occurring after the date hereof (such redemption price being hereinafter referred to as the “Redemption
Price”). The redemption of the Rights by the Board pursuant to this paragraph (a) may be made effective at such time,
on such basis, and with such conditions as the Board in its sole discretion may establish. The Company may, at its option, pay the Redemption
Price in cash, shares of Common Stock (based on the Current Market Price of the Common Stock at the time of redemption) or any other
form of consideration deemed appropriate by the Board.

 

(b)           Immediately upon the action of the Board directing the Company to redeem the Rights pursuant to paragraph (a) of this Section
23, evidence of which shall have been filed with the Rights Agent, and without any further action and without any notice, the right to
exercise the Rights will terminate and the only right thereafter of the registered holders of Rights shall be to receive the Redemption
Price for each Right so held. Promptly after the action of the Board directing the Company to make the redemption of the Rights pursuant
to paragraph (a) of this Section 23, the Company shall give notice of such redemption to the Rights Agent and the registered holders
of the then outstanding Rights in accordance with Section 26 hereof; provided, however, that failure to give, or any defect
in, any such notice shall not affect the validity of such redemption. Any notice given in accordance with Section 26 hereof 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.

 

Section 24.           
Exchange of Rights.

 

(a)          The
Board may, at its option, at any time after the occurrence of a Section 11(a)(ii) Event, direct the Company to, and if directed the Company
shall, exchange all or part of the then outstanding and exercisable Rights (which shall not include Rights that have become null and
void pursuant to the provisions of Section 7(e) hereof) for Common Stock at an exchange ratio of one share of Common Stock per Right,
appropriately adjusted to reflect any stock split, stock dividend, or similar transaction occurring after the date hereof (such exchange
ratio being hereinafter referred to as the “Exchange Ratio”). The exchange of the Rights by the Board may be made
effective at such time, on such basis, and with such conditions as the Board in its sole discretion may establish. Notwithstanding the
foregoing, the Board shall not be empowered to direct the Company to effect such exchange at any time after any Person (other than an
Exempt Person), together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common
Stock then outstanding.

 

    33 

     

    

 

(b)          Immediately
upon the action of the Board directing the Company to exchange any Rights pursuant to Section 24(a) hereof and without any further action
and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a registered holder of such
Rights shall be to receive that number of shares of Common Stock equal to the number of such Rights held by such holder multiplied by
the Exchange Ratio. The Company shall promptly give public notice of any such exchange (with prompt written notice to the Rights Agent);
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 give notice of any such exchange to all of the registered holders of such Rights in accordance with Section
26 hereof. Any notice given in accordance with Section 26 hereof 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 Stock for Rights will be effected and, in the
event of any partial exchange, the number of Rights that will be exchanged. Any partial exchange shall be effected pro rata based on
the number of Rights (other than Rights that have become null and void pursuant to the provisions of Section 7(e) hereof) held by each
registered holder of Rights.

 

(c)           In any exchange pursuant to this Section 24, the Company, at its option, may substitute shares of Preferred Stock (or Equivalent
Preferred Stock, as such term is defined in Section 11(b) hereof) for Common Stock exchangeable for Rights, at the initial rate of one
one-thousandth of a share of Preferred Stock (or Equivalent Preferred Stock) for each share of Common Stock, as appropriately adjusted
to reflect stock splits, stock dividends, and other similar transactions after the date hereof.

 

(d)          
In the event the number of shares of Common Stock authorized by the Certificate of Incorporation, but which are not outstanding
or reserved for issuance for purposes other than upon exercise of the Rights, is not sufficient to permit any exchange of Rights as contemplated
in accordance with this Section 24, the Company may take all such action as may be necessary to authorize additional shares of Common
Stock for issuance upon exchange of the Rights.

 

(e)           The
Company shall not be required to issue fractions of Common Stock or to distribute certificates that evidence fractional shares of
Common Stock. In lieu of such fractional shares of Common Stock, there shall be paid to the registered holders of the Rights
Certificates with regard to which such fractional shares of Common Stock would otherwise be issuable, an amount in cash equal to the
same fraction of the current market value of a whole share of Common Stock. For the purposes of this Section 24(e), the current
market value of a whole share of Common Stock shall be the closing price of a share of Common Stock (as determined pursuant to the
second sentence of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange pursuant to this Section
24.

 

(f)           
Following the action of the Board ordering the exchange of any Rights pursuant to this Section 24, the Company may implement such
procedures as it deems appropriate, in its sole discretion, for the purpose of ensuring that the Common Stock (or other consideration)
issuable upon an exchange pursuant to this Section 24 is not received by holder of Rights that have become null and void pursuant to Section
7(e). Prior to effecting an exchange pursuant to this Section 24, the Board may direct the Company to enter into a trust agreement in
such form and with such terms as the Board shall then approve (the “Trust Agreement”). If the Board so directs, the
Company shall enter into the Trust Agreement and shall issue to the trust created by such agreement (the “Trust”) all
or a portion (as designated by the Board) of the Common Stock, fractional shares of Preferred Stock, or other securities, if any, issuable
pursuant to the exchange, and all Persons entitled to receive such shares or other securities (and any dividends or distributions made
thereon after the date on which such shares or other securities are deposited in the Trust) shall be entitled to receive such only from
the Trust and solely upon compliance with the relevant terms and provisions of the Trust Agreement. Prior to effecting an exchange and
registering shares of Common Stock (or other securities) in any Person’s name, including any nominee or transferee of a Person,
the Company may require (or cause the trustee of the Trust to require), as a condition thereof, that any holder of Rights provide evidence,
including, without limitation, the identity of the Beneficial Owners thereof and their Affiliates and Associates (or former Beneficial
Owners thereof and their Affiliates and Associates) as the Company shall reasonably request in order to determine if such Rights are null
and void. If any Person shall fail to comply with such request, the Company shall be entitled to deem the Rights formerly held or exchangeable
by such Person to be null and void pursuant to Section 7(e) and not transferable or exercisable or exchangeable in connection herewith.
Any shares of Common Stock or other securities issued at the direction of the Board in connection herewith shall be validly issued, fully
paid, and non-assessable shares of Common Stock or of such other securities (as the case may be), and the Company shall be deemed to have
received as consideration for such issuance a benefit having a value that is at least equal to the aggregate par value of the shares so
issued.

 

    34 

     

    

 

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
or series to the registered holders of Preferred Stock or to make any other distribution to the registered holders of Preferred
Stock (other than a regular periodic cash dividend out of earnings or retained earnings of the Company), or (ii) to offer to
the registered holders of Preferred Stock rights or warrants to subscribe for or to purchase any additional shares of Preferred
Stock or shares of stock of any class or any other securities, rights, or options, or (iii) to effect any reclassification of
its Preferred Stock (other than a reclassification involving only the subdivision of outstanding Preferred Stock), or (iv) to
effect any consolidation or merger into or with any other Person (other than a direct or indirect, wholly owned Subsidiary of the
Company in a transaction that complies with Section 11(o) hereof), or to effect any sale or other transfer (or to permit one or more
of its Subsidiaries to effect any sale or other transfer), in one transaction 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 and calculated on the basis of the
Company’s most recent regularly prepared financial statements) to any other Person or Persons (other than the Company or any
of its direct or indirect wholly owned Subsidiaries in one or more transactions, each of which complies with Section 11(o) hereof),
or (v) to effect the liquidation, dissolution, or winding up of the Company, then, in each such case, the Company shall give to
the Rights Agent and each registered holder of a Rights Certificate, to the extent feasible and in accordance with Section 26
hereof, 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, sale, transfer, liquidation, dissolution,
or winding up is to take place and the date of participation therein by the registered holders of the Preferred Stock, if any such
date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at
least 20 days prior to the record date for determining registered holders of the Preferred Stock for purposes of such
action, and in the case of any such other action, at least 20 days prior to the date of the taking of such proposed action
or the date of participation therein by the registered holders of the Preferred Stock, whichever shall be the earlier; provided, however,
that no such action shall be taken pursuant to this Section 25(a) that will or would conflict with any provision of the Certificate
of Incorporation; provided, further, that no such notice shall be required pursuant to this Section 25, if any
Subsidiary of the Company effects a consolidation or merger with or into, or effects a sale or other transfer of assets or earnings
power to, any other Subsidiary of the Company.

 

(b)          In
case a Section 11(a)(ii) Event shall occur, then, in any such case, (i) the Company shall as soon as practicable thereafter give
to each registered holder of a Rights Certificate, to the extent feasible and in accordance with Section 26 hereof, a notice of the occurrence
of such event, which shall specify the event and the consequences of the event to registered holders of Rights under Section 11(a)(ii)
hereof, and (ii) all references in Section 25(a) to shares of Preferred Stock shall be deemed thereafter to refer to shares of Common
Stock or, if appropriate, other securities.

 

Section 26.           
Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the registered holder
of any Rights Certificate to or on the Company shall be sufficiently given or made if in writing and when sent by (a) first-class
mail, postage prepaid, (b) overnight delivery, or (c) courier or messenger service, in each case addressed (until another address
is filed in writing by the Company with the Rights Agent) as follows:

 

Masimo Corporation

52 Discovery Irvine, CA 92618

Attention: General Counsel

 

    35 

     

    

 

Subject to the provisions of Section 21 hereof, any notice or
demand authorized by this Agreement to be given or made by the Company or by the registered holder of any Rights Certificate to or
on the Rights Agent shall be sufficiently given or made if in writing and when sent by (i) first-class mail, postage prepaid,
(ii) overnight delivery, (iii) courier or messenger service, or (iv) email (provided that no failure message is
generated), in each case addressed (until another address is filed in writing by the Rights Agent with the Company) as follows:

 

Broadridge Corporate Issuer Solutions, Inc.

P.O. Box 1342

Brentwood, NY 11717

legalnotices@broadridge.com

Attention: Corporate Actions Department

 

with a copy to:

 

Broadridge Financial Solutions, Inc.,

2 Gateway Center, Newark, New Jersey 07102, and a copy via email to 

legalnotices@broadridge.com, in each case

Attention: General Counsel

 

Notices or demands authorized by this Agreement
to be given or made by the Company or the Rights Agent to the registered holder of any Rights Certificate (or, if prior to the Distribution
Date, of the Common Stock) shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder
at the address of such holder as shown on the registry books of the Rights Agent (or, if prior to the Distribution Date, of the transfer
agent for the Common Stock).

 

Section 27.            Supplements
and Amendments. Except as otherwise provided in this Section 27, the Company, by action of the Board, may from time to time and
in its sole and absolute discretion, and the Rights Agent shall if the Company so directs, supplement or amend any provision of this
Agreement in any respect without the approval of any registered holders of the Rights, including, without limitation, in order to
(a) cure any ambiguity, (b) correct or supplement any provision contained herein that may be defective or inconsistent
with any other provisions herein, (c) shorten or lengthen any time period hereunder, or (d) otherwise change, amend, or
supplement any provisions hereunder in any manner that the Company may deem necessary or desirable; provided, however,
that from and after the occurrence of a Section 11(a)(ii) Event, no such supplement or amendment shall adversely affect the
interests of the registered holders of Rights Certificates (other than an Acquiring Person or an Affiliate or Associate of an
Acquiring Person or certain of their transferees) or shall cause this Agreement to become amendable other than in accordance with
this Section 27. Without limiting the foregoing, the Company, by action of the Board, may at any time before any Person becomes an
Acquiring Person amend this Agreement to make provisions of this Agreement inapplicable to a particular transaction by which a
Person might otherwise become an Acquiring Person or to otherwise alter the terms and conditions of this Agreement as they may apply
with respect to any such transaction. Upon the delivery of a certificate from an appropriate officer of the Company that states that
the proposed supplement or amendment is in compliance with the terms of this Section 27, an authorized signatory of the Rights Agent
shall execute such supplement or amendment; provided, that any supplement or amendment that does not amend Section 18, Section 19,
Section 20, or Section 21 hereof in a manner adverse to the Rights Agent shall become effective as between the holders of the Rights
and the Company immediately upon execution by the Company, whether or not also executed by the Rights Agent (but shall not be
binding upon the Rights Agent until it is executed by it); provided, further, that to the extent a supplement or amendment adversely
affects the Rights Agent’s own rights, duties, obligations or immunities under this Agreement, such amendment shall not be
effective against the Rights Agent without its express written consent.

 

    36 

     

    

 

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

 

Section 29.           
Determinations and Actions by the Board. The Board shall have the exclusive power and authority to administer this Agreement
and to exercise all rights and powers specifically granted to the Board or to the Company, or as may be necessary or advisable in the
administration of this Agreement, including, without limitation, the right and power to (a) interpret the provisions of this Agreement
and (b) make all determinations deemed necessary or advisable for the administration of this Agreement (including a determination
to redeem or not redeem the Rights or to amend this Agreement). In administering this Agreement and making any determination or interpretation
hereunder, the Board may consider any and all facts, circumstances or information it deems to be necessary, useful or appropriate. Without
limiting the rights of the Rights Agent under this Agreement, all such actions, calculations, interpretations, and determinations that
are done or made by the Board in good faith, shall be final, conclusive, and binding on the Company, the Rights Agent, the registered
holders of the Rights, and all other parties. Absent actual knowledge to the contrary, the Rights Agent shall be entitled to assume the
Board of Directors of the Company acted in good faith and shall be fully protected and incur no liability in reliance thereon.

 

Section 30.           
Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the
Rights Agent, and the registered holders of the Rights Certificates (and, prior to the Distribution Date, of the Common Stock) any legal
or equitable right, remedy, or claim under this Agreement; and this Agreement shall be for the sole and exclusive benefit of the Company,
the Rights Agent, and the registered holders of the Rights Certificates (and, prior to the Distribution Date, of the Common Stock).

 

Section 31.           
Severability. If any term, provision, covenant, or restriction of this Agreement is held by a court of competent jurisdiction
or other authority to be invalid, void, or unenforceable, the remainder of the terms, provisions, covenants, and restrictions of this
Agreement shall remain in full force and effect and shall in no way be affected, impaired, or invalidated; 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 determines in its 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 hereof shall be reinstated and shall not expire until the Close of Business on the 10th day following the date of such determination
by the Board; provided, further, that if any such excluded term, provision, covenant or restriction shall adversely affect the rights,
immunities, duties or obligations of the Rights Agent, the Rights Agent shall be entitled to resign immediately upon written notice to
the Company.

 

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

 

    37 

     

    

 

Section 33.           
Counterparts; Facsimiles and PDFs. 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.
A facsimile or .pdf signature delivered electronically shall constitute an original signature for all purposes.

 

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

 

Section 35.           
Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any delays
or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, epidemics, pandemics,
natural disasters, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunctions of computer facilities,
or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war,
or civil unrest.

 

Section 36.           
Customer Identification Program. The Company acknowledges that the Rights Agent is subject to the customer identification
program (“Customer Identification Program”) requirements under the USA PATRIOT Act and its implementing regulations, and that
the Rights Agent must obtain, verify and record information that allows the Rights Agent to identify the Company. Accordingly, prior to
accepting an appointment hereunder, the Rights Agent may request information from the Company that will help the Rights Agent to identify
the Company, including without limitation the Company’s physical address, tax identification number, organizational documents, certificate
of good standing, license to do business, or any other information that the Rights Agent deems necessary. The Company agrees that the
Rights Agent cannot accept an appointment hereunder unless and until the Rights Agent verifies the Company’s identity in accordance
with the Customer Identification Program requirements.

 

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blank.]

 

    38 

     

    

 

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

 

	 	MASIMO CORPORATION 
	 	 
	 	By: 	 /s/ Tom McClenahan
	 	 	Name: Tom McClenahan
	 	 	Title: EVP, General Counsel
	 	 
	 	BROADRIDGE CORPORATE ISSUER SOLUTIONS,
    INC.
	 	 
	 	By:	 /s/
    John P. Dunn
	 	 	Name: John P. Dunn
	 	 	Title:
    SVP

 

Signature Page to Rights Agreement

 

    
 

     

    

 

EXHIBIT A

 

FORM OF

CERTIFICATE OF DESIGNATION, PREFERENCES, AND

RIGHTS OF SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

 

of

 

Masimo Corporation

 

Pursuant to Section 151 of the General
Corporation Law of the State of Delaware

 

Masimo Corporation, a corporation organized and
existing under the General Corporation Law of the State of Delaware (the “Corporation”), in accordance with the provisions
of Section 103 thereof, DOES HEREBY CERTIFY:

 

That pursuant to the authority conferred upon the
Board of Directors of the Corporation (the “Board”) by the Amended and Restated Certificate of Incorporation of the
Corporation (the “Certificate of Incorporation”), the said Board adopted the following resolution creating a series
of Preferred Stock of the Corporation (the “Preferred Stock”) designated as Series A Junior Participating Preferred
Stock:

 

RESOLVED, that pursuant to the authority conferred
upon the Board by the Certificate of Incorporation and Section 151(g) of the General Corporation Law of the State of Delaware, the
Board hereby designates 70,000 shares of the preferred stock, par value $0.001 per share, of the Corporation as “Series A Junior
Participating Preferred Stock” and the powers, designations, preferences and relative, participating, optional and other rights
of the Preferred Stock and the qualifications, limitations, and restrictions thereof are as follows:

 

Section 1.               
Designation and Amount. The shares of such series shall be designated as “Series A Junior Participating Preferred
Stock” and the number of shares constituting such series shall be 70,000. Such number of shares may be increased or decreased by
resolution of the Board; provided, however, that no such decrease shall reduce the number of shares of the Series A Junior
Participating Preferred Stock to a number less than the number of shares then outstanding, plus the number reserved for issuance upon
the exercise of options, rights or warrants, or upon conversion of any outstanding securities issued by the Corporation convertible into
Series A Junior Participating Preferred Stock.

 

Section 2.               
Dividends and Distributions.

 

(a)            Subject
to the prior and superior rights of the holders of any shares of any other class or series of Preferred Stock ranking prior and
superior to the shares of Series A Junior Participating Preferred Stock with respect to dividends, the holders of shares of Series A
Junior Participating Preferred Stock, in preference to the holders of shares of Common Stock, par value $0.001 per share, of
the Corporation (the “Common Stock”), and of any other junior stock, shall be entitled to receive, when, as and
if declared by the Board out of funds legally available for the purpose, quarterly dividends payable in cash on the first day of
April, July, October and January in each year (each such date being referred to herein as a “Quarterly Dividend Payment
Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share
of Series A Junior Participating Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (i)
$10.00 or (ii) subject to the provision for adjustment hereinafter set forth, 1,000 times the aggregate per share amount of all
cash dividends, and 1,000 times the aggregate per share amount (payable in kind) of all non-cash dividends or other
distributions, other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock
(by reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date,
or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of
Series A Junior Participating Preferred Stock. In the event the Corporation shall at any time after September 9, 2022
(A) declare any dividend on Common Stock payable in shares of Common Stock, (B) subdivide the outstanding Common Stock, or
(C) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount to which holders of
shares of Series A Junior Participating Preferred Stock were entitled immediately prior to such event under clause (ii) of the
preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which shall be the number of shares
of Common Stock outstanding immediately after such event and the denominator of which shall be the number of shares of Common Stock
that were outstanding immediately prior to such event.

 

    A-1

     

    

 

(b)            The Corporation shall declare a dividend or distribution on the Series A Junior Participating Preferred Stock as provided in Section
2(a) above immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common
Stock); provided, that, in the event no dividend or distribution shall have been declared on the Common Stock during the period
between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend of $10.00 per share
on the Series A Junior Participating Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date.

 

(c)             Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A Junior Participating Preferred Stock from the Quarterly Dividend
Payment Date next preceding the date of issue of such shares of Series A Junior Participating Preferred Stock, unless the date of issue
of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date
after the record date for the determination of holders of shares of Series A Junior Participating Preferred Stock entitled to receive
a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue
and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on
the shares of Series A Junior Participating Preferred Stock in an amount less than the total amount of such dividends at the time accrued
and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board
may fix a record date for the determination of holders of shares of Series A Junior Participating Preferred Stock entitled to receive
payment of a dividend or distribution declared thereon, which record date shall be no more than 30 days prior to the date fixed
for the payment thereof.

 

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

 

(a)              
 Subject to the provision for adjustment hereinafter set forth, each share of Series A Junior Participating Preferred Stock shall
entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event
the Corporation shall at any time after September 9, 2022 (i) declare any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the number of votes per share to which holders of shares of Series A Junior Participating Preferred Stock were
entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction, the numerator of which is the number
of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event.

 

    A-2

     

    

 

(b)             Except
as otherwise provided herein or by law or in any other Certificate of Designation creating a series of preferred stock, or any similar
stock, the holders of shares of Series A Junior Participating Preferred Stock, the holders of shares of Common Stock, and the holders
of any other class or series of capital stock of the Corporation entitled to vote generally together with the Common Stock shall vote
together as one class on all matters submitted to a vote of stockholders of the Corporation.

 

(c)            
(i)         If at any time dividends on any Series A Junior Participating Preferred Stock shall be in arrears in an amount equal to
six quarterly dividends thereon, the occurrence of such contingency shall mark the beginning of a period (herein called a “default
period”) that shall extend until such time when all accrued and unpaid dividends for all previous quarterly dividend periods
and for the current quarterly dividend period on all shares of Series A Junior Participating Preferred Stock then outstanding shall have
been declared and paid or set apart for payment. During each default period, all holders of Preferred Stock (including holders of the
Series A Junior Participating Preferred Stock) with dividends in arrears in an amount equal to six quarterly dividends thereon, voting
as a class, irrespective of series, shall have the right to elect two directors.

 

(ii)             
During any default period, such voting right of the holders of Series A Junior Participating Preferred Stock may be exercised
initially at a special meeting called pursuant to Section 3(c)(iii) or at any annual meeting of stockholders, and thereafter at annual
meetings of stockholders, provided, that such voting right shall not be exercised unless the holders of 10% in number of
shares of Preferred Stock outstanding shall be present in person or by proxy. The absence of a quorum of the holders of Common Stock
shall not affect the exercise by the holders of Preferred Stock of such voting right. At any meeting at which the holders of Preferred
Stock shall exercise such voting right initially during an existing default period, they shall have the right, voting as a class, to
elect directors to fill such vacancies, if any, in the Board as may then exist up to two directors or, if such right is exercised at
an annual meeting, to elect two directors. If the number that may be so elected at any special meeting does not amount to the required
number, the holders of Preferred Stock shall have the right to make such increase in the number of directors as shall be necessary to
permit the election by them of the required number. After the holders of Preferred Stock shall have exercised their right to elect directors
in any default period and during the continuance of such period, the number of directors shall not be increased or decreased except by
vote of the holders of Preferred Stock as herein provided or pursuant to the rights of any equity securities ranking senior to or pari
passu with the Series A Junior Participating Preferred Stock.

 

    A-3

     

    

 

(iii)           
Unless the holders of Preferred Stock shall, during an existing default period, have previously exercised their right to elect
directors, the Board may order, or any stockholder or stockholders owning in the aggregate not less than 10% of the total number
of shares of Preferred Stock outstanding, irrespective of series, may request, the calling of a special meeting of the holders of Preferred
Stock, which meeting shall thereupon be called by the President, a Vice President, or the Secretary of the Corporation. Notice of such
meeting and of any annual meeting at which holders of Preferred Stock are entitled to vote pursuant to this Section 3(c)(iii) shall be
given to each holder of record of Preferred Stock by mailing a copy of such notice to such holder at such holder’s last address
as the same appears on the books of the Corporation. Such meeting shall be called for a time not earlier than 20 days and not later than
60 days after such order or request or in default of the calling of such meeting within 60 days after such order or request, such meeting
may be called on similar notice by any stockholder or stockholders owning in the aggregate not less than 10% of the total number
of shares of Preferred Stock outstanding. Notwithstanding the provisions of this Section 3(c)(iii), no such special meeting shall be called
during the period within 60 days immediately preceding the date fixed for the next annual meeting of the stockholders.

 

(iv)            
In any default period, the holders of Common Stock, and other classes or series of stock of the Corporation if applicable, shall
continue to be entitled to elect the whole number of directors until the holders of Preferred Stock shall have exercised their right to
elect two directors voting as a class, after the exercise of which right (A) the directors so elected by the holders of Preferred
Stock shall continue in office until their successors shall have been elected by such holders or until the expiration of the default period,
and (B) any vacancy in the Board may (except as provided in Section 3(c)(ii)) be filled by vote of a majority of the remaining directors
theretofore elected by the holders of the class of stock that elected the director whose office shall have become vacant. References in
this Section 3(c) to directors elected by the holders of a particular class of stock shall include directors elected by such directors
to fill vacancies as provided in clause (B) of the foregoing sentence.

 

(v)              
Immediately upon the expiration of a default period, (A) the right of the holders of Preferred Stock as a class to elect directors
shall cease, (B) the term of any directors elected by the holders of Preferred Stock as a class shall terminate, and (C) the
number of directors shall be such number as may be provided for in the Certificate of Incorporation or Bylaws irrespective of any increase
made pursuant to the provisions of Section 3(c)(ii) (such number being subject, however, to change thereafter in any manner provided by
law or in the Certificate of Incorporation or Bylaws). Any vacancies in the Board effected by the provisions of clauses (B) and (C) in
the preceding sentence may be filled by a majority of the remaining directors.

 

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

 

    A-4

     

    

 

Section 4.               
Certain Restrictions.

 

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

 

(i)                
declare or pay dividends on, or make any other distributions on, any shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution, or winding up) to the Series A Junior Participating Preferred Stock;

 

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

 

(iii)           
redeem or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation,
dissolution, or winding up) to the Series A Junior Participating Preferred Stock, provided, that the Corporation may at any time
redeem, purchase, or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Corporation ranking
junior (either as to dividends or upon dissolution, liquidation, or winding up) to the Series A Junior Participating Preferred Stock;
or

 

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

 

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

 

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

 

    A-5

     

    

 

Section 6.               
Liquidation, Dissolution, or Winding Up.

 

(a)             Upon
any liquidation (voluntary or otherwise), dissolution, or winding up of the Corporation, no distribution shall be made to the holders
of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution, or winding up) to the Series A Junior Participating
Preferred Stock unless, prior thereto, the holders of shares of Series A Junior Participating Preferred Stock shall have received an
amount equal to $1,000 per share of Series A Junior Participating Preferred Stock, plus an amount equal to accrued and unpaid dividends
and distributions thereon, whether or not declared, to the date of such payment (the “Series A Liquidation Preference”).
Following the payment of the full amount of the Series A Liquidation Preference, no additional distributions shall be made to the holders
of shares of Series A Junior Participating Preferred Stock unless, prior thereto, the holders of shares of Common Stock shall have received
an amount per share (the “Common Adjustment”) equal to the quotient obtained by dividing (i) the Series A Liquidation
Preference by (ii) 1,000 (as appropriately adjusted as set forth in Section 6(c) below) (such number in clause (ii), the “Adjustment
Number”). Following the payment of the full amount of the Series A Liquidation Preference and the Common Adjustment in respect
of all outstanding shares of Series A Junior Participating Preferred Stock and Common Stock, respectively, holders of Series A Junior
Participating Preferred Stock and holders of shares of Common Stock shall receive their ratable and proportionate share of the remaining
assets to be distributed in the ratio of the Adjustment Number to one with respect to such Preferred Stock and Common Stock, on a per
share basis, respectively.

 

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

 

(c)            
In the event the Corporation shall at any time after September 9, 2022 (i) declare any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller
number of shares, then in each such case the Adjustment Number in effect immediately prior to such event shall be adjusted by multiplying
such Adjustment Number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such
event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

 

Section 7.                Consolidation,
Merger, etc. In case the Corporation shall enter into any consolidation, merger, combination, or other transaction in which the
shares of Common Stock are exchanged for or converted into other stock or securities, cash, or any other property, then in any such
case the shares of Series A Junior Participating Preferred Stock shall at the same time be similarly exchanged for or converted into
an amount per share (subject to the provision for adjustment hereinafter set forth) equal to 1,000 times the aggregate amount
of stock, securities, cash, or any other property (payable in kind), as the case may be, into which or for which each share of
Common Stock is converted or exchanged. In the event the Corporation shall at any time after September 9, 2022 (a) declare any
dividend on Common Stock payable in shares of Common Stock, (b) subdivide the outstanding Common Stock, or (c) combine the
outstanding Common Stock into a smaller number of shares, then in each such case the amount set forth in the immediately preceding
sentence with respect to the exchange or conversion of shares of Series A Junior Participating Preferred Stock shall be adjusted by
multiplying such amount by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately
after such event and the denominator of which shall be the number of shares of Common Stock that were outstanding immediately prior
to such event.

 

    A-6

     

    

 

Section 8.               
No Redemption. The shares of Series A Junior Participating Preferred Stock shall not be redeemable.

 

Section 9.               
Ranking. The Series A Junior Participating Preferred Stock shall rank junior to all other series of the Corporation’s
Preferred Stock, and to any other class of preferred stock that hereafter may be issued by the Corporation, as to the payment of dividends
and the distribution of assets, unless the terms of any such series or class shall provide otherwise.

 

Section 10.           
Amendment. Except as set forth in Section 1 hereof, at any time when any shares of Series A Junior Participating Preferred
Stock are outstanding, neither the Certificate of Incorporation nor this Certificate of Designation shall be amended, either directly
or indirectly, or through merger or consolidation with another entity, in any manner that would materially alter or change the powers,
preferences, or special rights of the Series A Junior Participating Preferred Stock so as to affect them adversely without the affirmative
vote of the holders of two-thirds or more of the outstanding shares of Series A Junior Participating Preferred Stock, voting separately
as a class.

 

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

 

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    A-7

     

    

 

 

IN WITNESS WHEREOF, Masimo Corporation has caused
this Certificate of Designation to be signed by the undersigned this ____ day of __________, 20____.

 

	 	MASIMO CORPORATION
	 	 	 
	 	By:	 
	 		Name:
	 		Title:

 

    A-8

     

    

 

FORM OF RIGHTS CERTIFICATE

 

	Certificate No. R-	 _______________Rights

 

NOT EXERCISABLE AFTER SEPTEMBER 8, 2023 OR EARLIER IF
REDEEMED OR EXCHANGED BY THE COMPANY. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.01 PER RIGHT ON THE
TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS BENEFICIALLY OWNED BY ANY
PERSON WHO IS, WAS, OR BECOMES AN ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT),
WHETHER CURRENTLY BENEFICIALLY OWNED BY OR ON BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT BENEFICIAL OWNER, MAY BECOME NULL AND VOID.

 

Rights Certificate

 

MASIMO CORPORATION

 

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 9, 2022 (the “Rights Agreement”), between
Masimo Corporation, a Delaware corporation (the “Company”), and Broadridge Corporate Issuer Solutions, Inc., a Pennsylvania
corporation (the “Rights Agent”), to purchase from the Company at any time prior to 5:00 p.m., New York time,
on September 8, 2023 at the office or offices of the Rights Agent designated for such purpose, or its successors as Rights Agent, one
one-thousandth of a fully paid, non-assessable share of Series A Junior Participating Preferred Stock, par value $0.001 per share,
of the Company (the “Preferred Stock”), at a purchase price of $1,000 per one one-thousandth of a share of Preferred
Stock (such purchase price, as may be adjusted, the “Purchase Price”), upon presentation and surrender of this Rights
Certificate with the Form of Election to Purchase and related Certificate duly executed, accompanied by such documentation as the Rights
Agent may reasonably request. The number of Rights evidenced by this Rights Certificate (and the number of shares that may be purchased
upon exercise thereof) set forth above, and the Purchase Price per share set forth above, are the number and Purchase Price as of September
20, 2022, based on the Preferred Stock as constituted at such date. The Company reserves the right to require prior to the occurrence
of a Triggering Event (as such term is defined in the Rights Agreement) that a number of Rights be exercised so that only whole shares
of Preferred Stock will be issued.

 

Upon the occurrence of a Section 11(a)(ii)
Event (as such term is defined in the Rights Agreement), if the Rights evidenced by this Rights Certificate are beneficially owned
by (i) an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights
Agreement), (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate), or (iii) under certain
circumstances specified in the Rights Agreement, a transferee of a person who, after such transfer, became an Acquiring Person, or
an Affiliate or Associate of an Acquiring Person, such Rights shall become null and void and no holder hereof shall have any right
with respect to such Rights from and after the occurrence of such Section 11(a)(ii) Event.

 

    B-1

     

    

 

As provided in the Rights Agreement, the Purchase
Price, the number and kind of shares of Preferred Stock or other securities issuable upon exercise of a Right, and the number of Rights
outstanding are subject to modification and adjustment upon the happening of certain events, including Triggering Events.

 

This Rights Certificate is subject to all of the
terms, provisions, and conditions of the Rights Agreement, which terms, provisions, and conditions are hereby incorporated herein by reference
and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights,
obligations, duties, and immunities hereunder of the Rights Agent, the Company, and the holders of the Rights Certificates, which limitations
of rights include the temporary suspension of the exercisability of such Rights under the specific circumstances set forth in the Rights
Agreement. Copies of the Rights Agreement are on file at the above-mentioned office of the Rights Agent and are also available free of
charge upon written request to the Rights Agent or the Company.

 

Subject to the provisions of the Rights Agreement,
this Rights Certificate, with or without other Rights Certificates, upon surrender at the office or offices of the Rights Agent designated
for such purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing Rights entitling
the holder to purchase a like aggregate number of one one-thousandths of a share of Preferred Stock as the Rights evidenced by the Rights
Certificate or Rights Certificates surrendered shall have entitled such holder to purchase. If this Rights Certificate shall be exercised
in part, the holder shall be entitled to receive upon surrender hereof, along with a signature guarantee and such other and further documentation
as the Company or the Rights Agent may reasonably request, another Rights Certificate or Rights Certificates for the number of whole Rights
not exercised.

 

Subject to the provisions of the Rights Agreement,
the Rights evidenced by this Rights Certificate may be redeemed by the Company at its option at a redemption price of $0.01 per Right,
payable at the Company’s option in cash or other securities or property of the Company, subject to adjustment for certain events
as provided in the Rights Agreement, at any time prior to the earlier of (i) the occurrence of a Section 11(a)(ii) Event and (ii) the
Expiration Date (as such terms are defined in the Rights Agreement). In addition, under certain circumstances following the occurrence
of a Section 11(a)(ii) Event but before any person acquires beneficial ownership of 50% or more of the Common Stock (as such term
is defined in the Rights Agreement), the Rights may be exchanged, in whole or in part, for Common Stock, Preferred Stock, or shares of
other preferred stock of the Company having essentially the same value or economic rights as such shares, Immediately upon the action
of the Board authorizing any such redemption or exchange, and without any further action or any notice, the Rights (other than Rights
that are not subject to such redemption or exchange) will terminate and the Rights will only enable holders to receive the redemption
price or the shares issuable upon such exchange, as applicable.

 

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

 

    B-2

     

    

 

No holder of this Rights Certificate shall be entitled
to vote or receive dividends or be deemed for any purpose the holder of Preferred Stock or of any other securities of the Company that
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 stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to give consent to or withhold consent from any corporate action,
or, to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Rights 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 an authorized signatory of the Rights Agent.

 

    B-3

     

    

 

WITNESS the facsimile signature of the proper officers
of the Company and its corporate seal.

 

Dated as of __________ ______, 20 ____.

 

	 	MASIMO CORPORATION
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

	Countersigned:	 
	 	 
	BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC.	 
	 	 
	By: 		 
	 	Authorized Signature	 

 

    B-4

     

    

 

[Form of Reverse Side of Rights Certificate]

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder if such

holder desires to transfer the Rights Certificate.)

 

FOR VALUE RECEIVED ______________________________
hereby sells, assigns and transfers unto ___________________________________

 

(Please print name and address of transferee)

 

 

 

(Please spell out and include in numerals the

number of Rights being transferred by this Assignment)

 

of the Rights evidenced by this Rights Certificate, together with all
right, title and interest therein, and does hereby irrevocably constitute and appoint ________________________ Attorney, to transfer the
number of Rights indicated above on the books of the within named Company, with full power of substitution.

 

Dated: _________________, ______

 

	 	
	 	Signature

 

Medallion Signature Guaranteed:

 

Signatures must be guaranteed by an eligible guarantor institution
(a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion program)
at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient.

 

    B-5

     

    

 

Certificate

 

The undersigned hereby certifies by checking the
appropriate boxes that:

 

(1)              
the Rights evidenced by this Rights Certificate [   ] are [   ] are 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 any such Acquiring Person (as
such terms are defined pursuant to the Rights Agreement); and

 

(2)              
after due inquiry and to the best knowledge of the undersigned, he, she, or it [   ] did [   ] did
not acquire the Rights evidenced by this Rights Certificate from any Person who is, was, or subsequently became an Acquiring Person or
an Affiliate or Associate of an Acquiring Person.

 

	Dated: __________________, ______	 
	 	Signature

 

Medallion Signature Guaranteed:

 

Signatures must be guaranteed by an eligible guarantor institution
(a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion program)
at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient.

 

NOTICE

 

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

 

    B-6

     

    

 

[Form of Reverse Side of Rights Certificate—continued]

 

FORM OF ELECTION TO PURCHASE

 

(To be executed by the registered holder if such
holder desires to

exercise any or all Rights evidenced by the Rights Certificate.)

 

To:          Masimo Corporation:

 

The undersigned hereby irrevocably elects to exercise
______________________ (__________) Rights evidenced by this Rights Certificate to purchase the shares of Preferred Stock issuable upon
the exercise of the Rights (or such other securities of the Company or of any other person that may be issuable upon the exercise of the
Rights) and requests that certificates for such shares be issued in the name of and delivered to or that such shares be credited to the
book-entry account of:

 

 

(Please print social security or other identifying number)

 

 

 

(Please print name and address)

 

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

 

 

(Please print social security or other identifying number)

 

 

 

(Please print name and address)

 

	Dated: _________________, ______	 
	 	 
	 	Signature

 

Medallion Signature Guaranteed:

 

Signatures must be guaranteed by an eligible guarantor institution
(a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion program)
at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient.

 

    B-7

     

    

 

Certificate

 

The undersigned hereby certifies by checking the
appropriate boxes that:

 

(1)              
the Rights evidenced by this Rights 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 any such Acquiring Person (as such terms are defined
pursuant to the Rights Agreement); and

 

(2)              
after due inquiry and to the best knowledge of the undersigned, he, she, or it [   ] did [   ] did
not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or became an Acquiring Person or an Affiliate
or Associate of an Acquiring Person.

 

	Dated: ___________________, ________	 
	 	Signature

 

Medallion Signature Guaranteed:

 

Signatures must be guaranteed by an eligible guarantor institution
(a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion program)
at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient.

 

NOTICE

 

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

 

    B-8Amending Agreements Dated August 13, 2021 between the Company and BV Lending LLC

THIS ELEVENTH AMENDING AGREEMENT is made as of August 13, 2021.

AMONG:

I-Minerals Inc., a body corporate, continued under the laws of

Canada, having its head office at Suite 880 - 580 Hornby Street, Vancouver, British Columbia, Canada V6C 3B6

(hereinafter called the “Company”)

OF THE FIRST PART AND:

i-minerals USA Inc., an Idaho limited liability company, having an office c/o the Company, at Suite 880 - 580 Hornby Street, Vancouver, British Columbia, Canada V6C 3B6

(hereinafter called the “Subsidiary”)

OF THE SECOND PART

AND:

BV Lending, LLC, an Idaho limited liability company, having its head office at Suite 300, 2194 Snake River Parkway, Idaho Falls, Idaho, U.S.A. 83402

(hereinafter called “BV”)

OF THE THIRD PART WHEREAS:

A.Pursuant to an agreement among the parties dated October 25, 2019, as amended by an amending agreement dated November 25, 2019 (hereinafter called the “First Amending Agreement”), as amended by an amending agreement dated January 20, 2020 (hereinafter called the “Second Amending Agreement”), as amended by an amending agreement dated June 4, 2020 (hereinafter called the “Third Amending Agreement”), as amended by an amending agreement dated July 8, 2020 (hereinafter called the “Fourth Amending Agreement”), as amended by an amending agreement dated December 3, 2020 (hereinafter called the “Fifth Amending Agreement”), as amended by an amending agreement dated March 9, 2021 (hereinafter called the “Sixth Amending Agreement”), as amended by an amending agreement dated April 15, 2021 (hereinafter called the “Seventh Amending Agreement”), as amended by an amending agreement dated May 10, 2021 (hereinafter called the “Eighth Amending Agreement”), as amended by an amending agreement dated June 15, 2021 (hereinafter called the “Ninth Amending Agreement”), and as amended by an amending agreement dated July 15, 2021 (hereinafter called the “Tenth Amending Agreement”) with the agreement dated October 25, 2019, as amended by the First Amending Agreement, the Second Amending Agreement, the Third Amending Agreement, the Fourth Amending Agreement, the Fifth Amending Agreement, the Sixth Amending Agreement, the Seventh Amending Agreement, the Eighth Amending Agreement, the Ninth Amending Agreement, and the Tenth Amending Agreement hereinafter collectively called the “Loan Agreement”, B.V. agreed to advance certain funds to the Company to advance its Bovill Kaolin Project located in the State of Idaho, U.S.A.; 

2

B.The parties wish to further amend certain of the provisions of the Loan Agreement on the terms and conditions hereinafter set forth; 

C. The Subsidiary is a wholly-owned subsidiary of the Company and is the legal owner of the Helmer Bovill Property hosting the Bovill Kaolin Project in the State of Idaho, U.S.A., as referred to in Recital A. herein; 

NOW THEREFORE THIS ELEVENTH AMENDING AGREEMENT WITNESSETH that in consideration of these presents and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties, the parties hereby agree as follows:

 

1.The parties agree that the Loan Agreement is hereby amended as follows. 

(a)Paragraph 6.01 is replaced in its entirety with the following: 

“6.01The parties agree that the Company will repay the Indebtedness on September 15, 2021.” 

2.Except as amended by this Eleventh Amending Agreement, all of the other terms and conditions of the Loan Agreement remain in full force and effect. 

3.Each of the parties agrees to do and/or execute all such further and other acts, deeds, things, devices, documents and assurances that may be required in order to carry out the true intent and meaning of this Eleventh Amending Agreement. 

4.This Eleventh Amending Agreement and any certificate or other writing delivered in connection herewith may be executed in any number of counterparts and any party hereto may execute any counterpart, each of which when executed and delivered will be deemed to be an original and all of which counterparts of this Eleventh Amending Agreement or such other writing, as the case may be, taken together, will be deemed to be one and the same instrument. The execution of this Eleventh Amending Agreement or any other writing by any party hereto will not become effective until each party hereto has executed a counterpart of this Eleventh Amending Agreement or any other writing, as the case may be. 

 5.Each of the parties hereto will be entitled to rely upon delivery by facsimile or by email of executed copies of this Eleventh Amending Agreement and any certificates or other writings delivered in connection herewith, and such facsimile or emailed copies will be legally effective to create a valid and binding agreement among the parties in accordance with the terms and conditions of this Eleventh Amending Agreement. 

6.This Eleventh Amending Agreement shall enure to the benefit of and be binding upon the parties hereto and each of their successors and permitted assigns, as the case may be. 

IN WITNESS WHEREOF the parties have executed and delivered this Eleventh Amending Agreement as of the day and year first above written.

 

 

  

3

Executed by

I-Minerals Inc.

in the presence of:

 

/s/ John Theobald

Authorized Signatory

 

 

Executed by

i-minerals USA Inc.

in the presence of:

 

/s/ John Theobald

Authorized Signatory

 

 

Executed by

BV Lending, LLC

 

By: Ball Ventures, LLC, an Idaho limited

liability company, the Member

 

By: BV Management Services, Inc., an Idaho

corporation, the Manager

 

 

Per: /s/ Cortney Liddiard

Cortney Liddiard, President

 

 

 

 

 

 

 

  

DATED:  August 13, 2021

_________________________________________________________________

 

Between:

 

I-Minerals Inc.

OF THE FIRST PART

And:

 

i-minerals USA Inc.

 

OF THE SECOND PART

And:

 

BV Lending, LLC

OF THE THIRD PART

_________________________________________________________________

 

ELEVENTH AMENDING AGREEMENT

 

_________________________________________________________________

 

Tupper Jonsson & Yeadon

1710 - 1177 West Hastings Street

Vancouver, B. C.

V6E 2L3

 

Telephone: (604) 640-6355

 

 

 

 

 

 

 

 

 

  

THIS AGREEMENT is dated August 13, 2021.

 

BETWEEN:

 

I-Minerals Inc., a body corporate, continued under the laws of Canada, having its head office at Suite 880 – 580 Hornby Street, Vancouver, British Columbia, Canada V6C 3B6

 

(hereinafter called the “Company”)

OF THE FIRST PART

AND:

BV Lending, LLC, an Idaho limited liability company, having its head office at Suite 300, 2194 Snake River Parkway, Idaho Falls, Idaho, U.S.A. 83402

 

(hereinafter called “BV”)

OF THE SECOND PART

 

WHEREAS:

 

A.Pursuant to an agreement among the parties dated June l, 2016, as amended by an amending agreement dated October 25, 2017 (hereinafter called the “First Amending Agreement”), as further amended by an amending agreement dated January 19, 2018 (hereinafter called the “Second Amending Agreement”), as further amended by an amending agreement dated March 20, 2018 (hereinafter called the “Third Amending Agreement”), as further amended by an amending agreement dated March 27, 2019 (hereinafter called the “Fourth Amending Agreement”), as further amended by an amending agreement dated June 28, 2019 (hereinafter called the “Fifth Amending Agreement”), with the loan agreement dated June 1, 2016, as amended by the First Amending Agreement, the Second Amending Agreement, the Third Amending Agreement, the Fourth Amending Agreement and the Fifth Amending Agreement hereinafter collectively called the “Loan Agreement”, BV agreed to advance certain funds to the Company to advance its Bovill Kaolin Project located in the State of Idaho, U.S.A.; 

B.Pursuant to an agreement among the parties dated September 11, 2018 (hereinafter called the “2018 Loan Agreement”), BV agreed to advance an additional $2,500,000 to the Company to further advance its Bovill Kaolin Project located in the State of Idaho, U.S.A.; 

C.The Loan Agreement and the 2018 Loan Agreement are hereinafter collectively referred to as the “Loan Agreements”;  

D.The Loan Agreements were previously amended by an amending agreement dated October 25, 2019; 

 

E.Pursuant to paragraph 1.01 of an agreement between the Company and BV dated June 4, 2020, the date for the repayment of all cash advances made pursuant to the Loan Agreements, together with all accrued and unpaid interest thereon, was extended until December 15, 2020; 

 

F.Pursuant to paragraph 1.01 of an agreement between the Company and BV dated December 3, 2020, the date for the repayment of all cash advances made pursuant to the Loan Agreements, together with all accrued and unpaid interest thereon, was extended until March 15, 2021; 

2

G.Pursuant to paragraph 1.01 of an agreement between the Company and BV dated March 9, 2021, the date for the repayment of all cash advances made pursuant to the Loan Agreements, together with all accrued and unpaid interest thereon, was extended until April 15, 2021; 

 

H.Pursuant to paragraph 1.01 of an agreement between the Company and BV dated April 15, 2021, the date for the repayment of all cash advances made pursuant to the Loan Agreements, together with all accrued and unpaid interest thereon, was extended until May 15, 2021; 

 

I.Pursuant to paragraph 1.01 of an agreement between the Company and BV dated May 10, 2021, the date for the repayment of all cash advances made pursuant to the Loan Agreements, together with all accrued and unpaid interest thereon, was extended until June 15, 2021; 

 

J.Pursuant to paragraph 1.01 of an agreement between the Company and BV dated June 15, 2021, the date for the repayment of all cash advances made pursuant to the Loan Agreements, together with all accrued and unpaid interest thereon, was extended until July 15, 2021; 

 

K.Pursuant to paragraph 1.01 of an agreement between the Company and BV dated July 15, 2021, the date for the repayment of all cash advances made pursuant to the Loan Agreements, together with all accrued and unpaid interest thereon, was extended until August 15, 2021; and 

 

L.The parties have agreed to further extend the repayment date by which the principal and interest outstanding pursuant to the Loan Agreements is to be made, as provided for herein; 

 

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of these presents and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties, the parties hereby agree as follows:

 

1.Extension for the repayment of the Indebtedness 

 

1.01Notwithstanding the provisions for the repayment of the cash advances made pursuant to the Loan Agreements, together with all accrued and unpaid interest thereon, as provided for in the Loan Agreements and pursuant to certain related promissory notes issued pursuant to the Loan Agreements, the date for the repayment of all cash advances made pursuant to the Loan Agreements, together with all accrued and unpaid interest thereon, is hereby extended until September 15, 2021. 

 

1.02

 

2.Notices 

 

2.01All notices, payments and other communications given in connection with this Agreement shall be in writing, and the respective addresses of the parties for the service of any notice, payment or other communication shall be as follows: 

 

(a)if to the Company: 

 

I-Minerals Inc.

Suite 880 – 580 Hornby Street

Vancouver, British Columbia, Canada

V6C 3B6

3

Attention:  Barry Girling, Director

Email: wbg@imineralsinc.com 

 

 (b)if to BV: 

 

BV Lending, LLC

 

P.O. Box 51298

Idaho Falls, ID 83405

 

2194 Snake River Parkway

Suite 300

Idaho Falls, ID 83402

 

Attention:  Cortney Liddiard, Chief Executive Officer

Email: flyfish@ballventures.com 

 

with a copy to:

 

Thel W. Casper, Esq.

General Counsel to Ball Ventures, LLC

 

P.O. Box 51298

Idaho Falls, ID 83405

 

2194 Snake River Parkway

Suite 300

Idaho Falls, ID 83402

 

Email: tcasper@ballventures.com 

 

Any notice, payment or other communication shall be sufficiently given if delivered by email or by hand or by reputable courier service, or, absent postal disruption, if sent by registered mail, postage prepaid, posted within either Canada or the United States of America, to the parties at their respective addresses for service as set forth above.  Any notice, payment or other communication shall be deemed to have been given and received on the first business day on which it is presented during normal business hours at the address for service of the addressee.  Any party may change its address for service by notice in writing to the other parties.

 

3.Time of the Essence 

 

3.01Time shall be of the essence of this Agreement. 

 

4.U.S. Dollars 

 

4.01All references herein to dollar amounts are to lawful currency of the United States of America, unless otherwise specifically provided for herein. 

 

5.Headings 

4

5.01The headings contained herein are for convenience only and shall not affect the meaning or interpretation hereof. 

 

6.Singular and Plural, etc. 

 

6.01Where the context so requires, words importing the singular number include the plural and vice versa, and words importing gender shall include the masculine, feminine and neuter genders. 

 

7.Entire Agreement 

 

7.01This Agreement constitutes the only agreement among the parties with respect to the subject matter hereof and shall supersede any and all prior negotiations and understandings.  This Agreement may be amended or modified in any respect by written instrument only. 

 

8.Severability 

 

8.01The invalidity or unenforceability of any particular provision of this Agreement shall not effect or limit the validity or enforceability of the remaining provisions of this Agreement. 

 

9.Governing Law 

 

9.01This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.  The parties irrevocably attorn to the jurisdiction of the courts of British Columbia, which will have non-exclusive jurisdiction over any matter arising out of this Agreement. 

 

10.Dispute Resolution 

 

10.01If any dispute arises between any of the Parties (the Parties in dispute being the “Participants”) concerning this Agreement or its interpretation or the respective rights, duties or liabilities of the Parties, then a Participant may give to the other Participants notice in writing of the existence of such dispute, specifying its nature and the point at issue and the Participants agree: 

 

(a)to try to resolve the dispute by participating in a structured negotiation with a mediator under the Commercial Mediation Rules of British Columbia International Commercial Arbitration Centre (“BCICAC”); 

(b)where a dispute is not resolved by mediation within a period of 30 days after the appointment of a mediator or within such further period of time to which the Participants agree, any Participant may refer the dispute to be finally resolved by arbitration under the BCICAC Rules.  The appointing authority will be the BCICAC, the case shall be administered by the BCICAC in accordance with its “Procedures for Cases under the BCICAC Rules” and the place of arbitration shall be Vancouver, British Columbia. The appointment by the BCICAC is binding upon all of the Participants; 

(c)the arbitrator will give his decision in writing within three weeks of his being appointed and the decision, both on the dispute and on the costs of the arbitration will be final and binding upon the Participants; 

5

(d)the arbitrator will have full authority to rule on any question of law in the same manner as any Judge in any Court of the Province of British Columbia and the ruling of the arbitrator on any question of law will be final and binding upon the Participants; and 

(e)the failure of any Participant to abide by the decision of the arbitrator is considered a material breach of this Agreement. 

This paragraph shall survive any termination of this Agreement and continues in full force and effect notwithstanding any determination by a court or the Parties that one or more other provisions of this Agreement are invalid, contrary to law or unenforceable.

 

11.Successors and Assigns 

 

11.01The terms and provisions of this Agreement shall be binding upon and enure to the benefit of each of the parties and their respective successors and permitted assigns; provided that this Agreement shall not be assignable by any party without the written consent of each of the other parties hereto. 

 

12.Further Assurances 

 

12.01Each of the parties hereto shall do or cause to be done all such acts and things and execute or cause to be executed all such documents, agreements and other instruments as may reasonably be necessary or desirable for the purpose of carrying out the provisions and intent of this Agreement. 

 

13.Effective Date 

 

13.01This Agreement is intended to and shall take effect as of the date first set forth above, notwithstanding its actual date of execution or delivery. 

 

14.Counterparts and Facsimile 

 

14.01This Agreement may be executed in any number of counterparts by original, facsimile or other form of electronic signature, each of which so executed shall constitute an original and all of which taken together shall form one and the same agreement. 

 

 

 

  

6

IN WITNESS WHEREOF the parties have executed and delivered this Agreement as of the day and year first above written.

 

Executed by

I-Minerals Inc.

in the presence of:

 

/s/ John Theobald

Authorized Signatory

 

 

Executed by

BV Lending, LLC

 

By:  Ball Ventures, LLC, an Idaho limited liability company, the Member

 

By:  BV Management Services, Inc., an Idaho corporation, the Manager

 

 

Per:  /s/ Cortney Liddiard

Cortney Liddiard, President

 

 

 

 

 

 

 

 

 

 

  

DATED:  August __, 2021

______________________________________________________________

 

Between:

 

I-Minerals Inc.

OF THE FIRST PART

And:

 

BV Lending, LLC

OF THE SECOND PART

______________________________________________________________

 

AGREEMENT

 

______________________________________________________________

 

Tupper Jonsson & Yeadon

1710 - 1177 West Hastings Street

Vancouver, B. C.

V6E 2L3

 

Telephone: (604) 640-6355

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