Document:

Exhibit
10.3

 

LIFEMD,
INC.

NON-QUALIFIED
STOCK OPTION AGREEMENT

 

DIRECTOR

 

THIS
NON-QUALIFIED STOCK OPTION is granted as of Sept. 14, 2022 (the “Grant Date”), and reflected in this
NON-QUALIFIED STOCK OPTION AGREEMENT (this “Agreement”) by and between LifeMD, Inc. (the
“Company”) and Robert Jindal (the “Optionee”).

 

WHEREAS,
pursuant to the authority of the Board of Directors (the “Board”), the Company has granted the Optionee the right
to purchase common stock, $0.01 par value per share (“Common Stock”) of the Company pursuant to stock options, at
not less than 100% of fair market value, granted under the LifeMD, Inc. 2020 Equity and Incentive Plan, approved by the Board (the “Plan”).

 

NOW
THEREFORE, in consideration of the mutual covenants and promises hereafter set forth and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.
Grant of Non-Qualified Options. The Company hereby irrevocably grants to the Optionee, as a matter of separate agreement and not
in lieu of salary or other compensation for services, the right and option to purchase all or any part of an aggregate of Thirty Seven
Thousand Five Hundred (37,500) shares of authorized but unissued or treasury common stock of the Company (the “Options”)
on the terms and conditions herein set forth. The Options are not intended to be Incentive Stock Options as defined by Section 422 of
the Internal Revenue Code of 1986, as amended (the “Code”).

 

2.
Price. The exercise price of the shares of Common Stock subject to the Options granted hereunder shall be $____.

 

3.
Vesting.

 

(a)
The Options shall vest in four equal tranches on the 90th, 180th, 270th and 365th day following the Grant Date, subject to the terms
herein and the Optionee continuing to perform services for the Company on each applicable vesting date. Notwithstanding the foregoing,
the Options shall vest upon the termination of the services provided to the Company by Optionee in his/her capacity as a director of
the Company on account of being removed from such role or otherwise not being asked to stand for re-election for reasons other than Cause
(as that term is defined in a service and/or director agreement of such Optionee, or if such term or terms is not defined in a service
and/or director agreement or there is not a service agreement, as defined by the Plan). In lieu of fractional vesting, the number of
Options shall be rounded up each time until fractional Options are eliminated.

 

(b)
Subject to Sections 3(c) and 4 of this Agreement, Options may be exercised by providing to the Company the Notice of Option Exercise
in the form attached hereto as Exhibit A after vesting and remain exercisable until 5:30 p.m. New York time on the date that is
the fifth (5th) year anniversary of the date of this Agreement.

 

(c)
However, notwithstanding any other provision of this Agreement, at the option of the Board in its sole and absolute discretion, all Options
shall be immediately forfeited in the event any of the following events occur:

 

(i)
The Optionee purchases or sells securities of the Company without written authorization in accordance with the Company’s insider
trading policy then in effect, if any;

 

(ii)
The Optionee (A) discloses, publishes or authorizes anyone else to use, disclose or publish, without the prior written consent of the
Company, any proprietary or confidential information of the Company, including, without limitation, any information relating to existing
or potential customers, business methods, financial information, trade or industry practices, sales and marketing strategies, employee
information, vendor lists, business strategies, intellectual property, trade secrets or any other proprietary or confidential information
or (B) directly or indirectly uses any such proprietary or confidential information for the individual benefit of the Optionee or the
benefit of a third party;

 

    	 

    	 

    

 

(iii)
During the term of service and for a period of two (2) years thereafter, the Optionee disrupts or damages, impairs or interferes with
the business of the Company or its Affiliates by recruiting, soliciting or otherwise inducing any of their respective employees to enter
into employment or other relationship with any other business entity, or terminate or materially diminish their relationship with the
Company or its Affiliates, as applicable;

 

(iv)
During the term of employment and for a period of one (1) year thereafter, the Optionee solicits or directs business of any person or
entity who is (A) a customer of the Company or its Affiliates at any time or (B) solicited to be a “prospective customer”
of the Company or its Affiliates, in any case either for such Optionee or for any other person or entity. For purposes of this clause
(v), “prospective customer” means a person or entity who contacted, or is contacted by, the Company or its Affiliates
regarding the provision of services to or on behalf of such person or entity; provided that the Optionee has actual knowledge
of such prospective customer;

 

(iii)
The Optionee fails to reasonably cooperate to effect a smooth transition of the Optionee’s duties and to ensure that the Company
is apprised of the status of all matters the Optionee is handling or is unavailable for consultation after termination of employment
of the Optionee if such availability is a condition of any agreement to which the Company and the Optionee are parties;

 

(iv)
The Optionee fails to assign all of such Optionee’s rights, title and interest in and to any and all ideas, inventions, formulas,
source codes, techniques, processes, concepts, systems, programs, software, computer data bases, trademarks, service marks, brand names,
trade names, compilations, documents, data, notes, designs, drawings, technical data and/or training materials, including improvements
thereto or derivatives therefrom, whether or not patentable or subject to copyright or trademark or trade secret protection, developed
and produced by the Optionee used or intended for use by or on behalf of the Company or the Company’s clients; or

 

(v)
The Optionee acts in a disloyal manner to the Company, such as making comments, whether oral or in writing, that tend to disparage or
injure (i) the reputation or business of the Company or its Affiliates, or is likely to result in discredit to, or loss of business,
reputation or goodwill of, the Company or its Affiliates or (ii) its directors, officers or stockholders.

 

In
addition, all of the Options shall, to the extent then unvested, vest immediately prior to the closing for any Change of Control. As
used herein, “Change of Control” means (i) a bona fide transfer or series of related transfers of shares of Common
Stock to any person or Group in which, or as a result of which, such person or Group obtains the direct or indirect right to elect a
majority of the board of directors of the Company; or (ii) a sale of all or substantially all of the assets of the Company. As used herein,
“Group” means any group or syndicate that would be considered a “person” for purposes of Section 13(d)
of the Securities Exchange Act of 1934, as amended.

 

(d)
For purposes of this Agreement, “Affiliate” means with respect to a person or entity, any other person or entity controlled
by, in control of or under common control with such person or entity, and “controlled,” “controlled by,” and
“under common control with” shall mean direct or indirect possession of the power to direct or cause the direction of management
or policies (whether through ownership of voting securities, by contract or otherwise) of a person or entity.

 

4.
Termination of Relationship. Upon the Optionee’s termination of service, all unvested Options shall be automatically and
irrefutably forfeited. For purposes of this Agreement, terms like “service” and “termination of service” refer
to service with the Company and all Affiliates of the Company.

 

(a)
If for any reason, except death or disability as provided below, the Optionee ceases to perform the services for which the Options were
granted, the Optionee shall have the right within three (3) months from the date of cessation to exercise the Optionee’s vested
Options, subject to Section 3(c) hereof.

 

(b)
If the Optionee shall die while performing services for the Company, such Optionee’s estate or any Transferee (as defined hereinafter)
shall have the right within twelve (12) months from the date of death to exercise the Optionee’s vested Options, subject to Section
3(c) hereof. For the purpose of this Agreement, “Transferee” shall mean an individual to whom such Optionee’s
vested Options are transferred by will or by the laws of descent and distribution.

 

    	 

    	 

    

 

(c)
If the Optionee shall become disabled while performing services for the Company within the meaning of Section 22(e)(3) of the Code, the
three-month period referred to in Section 4(a) of this Agreement shall be extended to one year.

 

(d)
For purposes of this Agreement, a change from performing service on the Board to an employment or consulting relationship or vice
versa shall not be treated as a termination of service.

 

5.
Profits on the Sale of Certain Shares; Redemption. If any of the events specified in Section 3(c) of this Agreement occur within
one (1) year from the last date the Optionee performed services for which the Options were granted (the “Termination Date”),
all profits earned from the sale of the Company’s securities, including the sale of shares of Common Stock underlying the Options,
during the two (2) year period commencing one (1) year prior to the Termination Date shall be forfeited and forthwith paid by the Optionee
to the Company within ten (10) days after the Optionee receives written demand from the Company for such payment and a copy of the documentation
of the sale, including, without limitation, the purchase price therefor. Further, in such event, the Company may at its option redeem
shares of Common Stock acquired upon exercise of the Options by payment of the exercise price to the Optionee. The Company’s rights
under this Section 5 do not lapse one year from the Termination Date, but are a contract right subject to any appropriate statutory limitation
period.

 

6.
Transfer. No transfer of the Options by the Optionee by will or by the laws of descent and distribution shall be effective to
bind the Company unless the Company shall have been furnished with written notice thereof and a copy of the letters testamentary or such
other evidence as the Board may deem necessary to establish the authority of the estate and the acceptance by the Transferee or Transferees
of the terms and conditions of the Options.

 

7.
Method of Exercise. The Options shall be exercisable by a written notice in the manner and form identified on Exhibit A hereto
which information shall include:

 

(a)
state the election to exercise the Options, the number of shares to be exercised, the natural person in whose name the stock certificate
or certificates for such shares of Common Stock is to be registered and such person’s address and social security number (or if
more than one, the names, addresses and social security numbers of such persons);

 

(b)
contain such representations and agreements as to the holder’s investment intent with respect to such shares of Common Stock as
set forth in Section 11 hereof;

 

(c)
be signed by the person or persons entitled to exercise the Options and, if the Options are being exercised by any person or persons
other than the Optionee, be accompanied by proof, satisfactory to counsel for the Company, of the right of such person or persons to
exercise the Options; and

 

(d)
be accompanied by full payment of the purchase or exercise price and all applicable required tax withholding in United States dollars
in cash or by bank or cashier’s check, certified check or money order or (i) by executing a “sell-to-cover cashless exercise”
through the Company’s designated broker to promptly deliver to the Company the amount of proceeds from the sale of shares having
a fair market value equal to the purchase price and all applicable required tax withholding on the date of exercise; (ii) by executing
a “net cashless exercise” by having the Company withhold Option shares equivalent in value to the exercise price and all
applicable required tax withholding; or (iii) by tendering shares of Common Stock equivalent in value to the exercise price and all applicable
required tax withholding, subject to applicable securities laws and share holding period requirements necessary to avoid a charge to
the Company’s earnings for financial accounting purposes.

 

Any
certificate or certificates for shares of Common Stock as to which the Options shall be exercised shall be registered in the name of
the person or persons exercising the Options.

 

    	 

    	 

    

 

8.
Sale of Shares Acquired Upon Exercise of Options. If the Optionee is an officer (as defined by Section 16(b) of the Securities
Exchange Act of 1934, as amended (“Section 16(b)”), any shares of the Company’s Common Stock acquired pursuant
to Options granted hereunder cannot be sold by the Optionee, subject to registration or an exemption from registration such as to Rule
144 promulgated under the Securities Act of 1933, as amended (the “Securities Act”), until at least six (6) months
elapse from the date of grant of the Options, except in the case of death or disability or if the grant was exempt from the short-swing
profit provisions of Section 16(b).

 

9.
Adjustments. The Options under this Agreement shall be subject to the terms of the Plan, including but not limited to, Sections
3(b) (Changes in Stock) and 3(c) (Sale Events) of the Plan.

 

10.
Necessity to Become Holder of Record. Neither the Optionee, the Optionee’s estate, nor the Transferee have any rights as
a shareholder with respect to any shares of Common Stock covered by the Options until such Optionee, estate or Transferee, as applicable,
shall have become the holder of record of such shares of Common Stock. No adjustment shall be made for cash dividends or cash distributions,
ordinary or extraordinary, in respect of such shares of Common Stock for which the record date is prior to the date on which such Optionee,
estate or Transferee, as applicable, shall become the holder of record thereof.

 

11.
Conditions to Exercise of Options.

 

(a)
In order to enable the Company to comply with the Securities Act and relevant state law, the Company may require the Optionee, the Optionee’s
estate or any Transferee, as a condition of the exercise of the Options granted hereunder, to give written assurance satisfactory to
the Company that the shares of Common Stock subject to the Options are being acquired for such Optionee’s, estate’s or Transferee’s,
as applicable, own account, for investment only, with no view to the distribution of same, and that any subsequent resale of any such
shares of Common Stock either shall be made pursuant to a registration statement under the Securities Act and applicable state law which
has become effective and is current with regard to the shares of Common Stock being sold, or shall be pursuant to an exemption from registration
under the Securities Act and applicable state law.

 

(b)
The Options are subject to the requirement that, if at any time the Board shall determine, in its sole and absolute discretion, that
the listing, registration or qualification of the shares of Common Stock subject to the Options upon any securities exchange or under
any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection
with the issue or purchase of such shares of Common Stock under the Options, the Options may not be exercised in whole or in part unless
such listing, registration, qualification, consent or approval shall have been effected.

.

12.
Severability. In the event any parts of this Agreement are found to be void, the remaining provisions of this Agreement shall
nevertheless be binding with the same effect as though the void parts were deleted.

 

13.
Arbitration. Any controversy, dispute or claim arising out of or relating to this Agreement, or its interpretation, application,
implementation, breach or enforcement which the parties hereto are unable to resolve by mutual agreement, shall be settled by submission
by either party of the controversy, claim or dispute to binding arbitration in New York County, New York (unless the parties agree in
writing to a different location), before a single arbitrator in accordance with the rules of the American Arbitration Association then
in effect. The decision and award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes,
and judgment may be entered thereon in any court having jurisdiction thereof.

 

14.
Benefit. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their legal representatives,
successors and assigns.

 

    	 

    	 

    

 

15.
Notices and Addresses. All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing,
and shall be sufficiently given if delivered to the addressees in person, by FedEx or similar receipted delivery, or by facsimile delivery
as follows:

 

 

	 	The
    Optionee:	 	Robert
    Jindal
	 	 	 	[***]
	 	 	 	[***]
	 	 	 	Telephone:
    [***]
	 	 	 	 
	 	The
    Company: 	 	LifeMD,
    Inc.
	 	 	 	[***]
	 	 	 	[***]
	 	 	 	Telephone:
    [***]

 

or
to such other address as either of them, by notice to the other, may designate from time to time. The transmission confirmation receipt
from the sender’s facsimile machine shall be evidence of successful facsimile delivery. Time shall be counted to, or from, as the
case may be, the delivery in person or by mailing.

 

17.
Attorney’s Fees. In the event that there is any controversy or claim arising out of or relating to this Agreement, or to
the interpretation, breach or enforcement thereof, and any action or proceeding is commenced to enforce the provisions of this Agreement,
the prevailing party shall be entitled from the non-prevailing party to its reasonable attorneys’ fee, costs and expenses.

 

18.
Governing Law. This Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether
relating to its execution, its validity, the obligations provided herein or performance, shall be governed or interpreted according to
the laws of the State of Delaware without regard to choice of law considerations.

 

19.
Oral Evidence. This Agreement, along with the Plan, a director and/or employment agreement, and any amendment thereto, constitute
the entire agreement between the parties hereto and supersedes all prior oral and written agreements between the parties hereto with
respect to the subject matter hereof. Neither this Agreement nor any provision hereof may be changed, waived, discharged or terminated
except by a statement in writing signed by the party or parties against which enforcement or the change, waiver discharge or termination
is sought.

 

20.
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of
which together shall constitute one and the same instrument. The execution of this Agreement may be made by facsimile signature, which
shall be deemed to be an original.

 

21.
Section Headings. Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise
affect, in any matter, or be deemed to interpret in whole or in part, any of the terms or provisions of this Agreement.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF the parties hereto have set their hand the day and year first above written.

 

	 	LIFEMD,
    INC.
	 	 	 
	 	By:	/s/
    Justin Schreiber
	 	Name:	Justin
    Schreiber
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	OPTIONEE:
	 	 	 
	 	By:	/s/
    Robert Jindal
	 	Name:	Robert
    Jindal
	 	Address:	[***]________________________________

 

[Signature
page to Non-qualified Stock Option Agreement]

 

    	 

    	 

    

 

EXHIBIT
A

 

FORM
OF NOTICE OF OPTION EXERCISE

 

To:
LifeMD, Inc. (the “Company”)

 

(1)
The undersigned hereby elects to purchase __________ shares of Common Stock of the Company (the “Shares”) pursuant to the
terms of the Option Agreement by and between the Company and the undersigned dated as of __________ ___, 20__, and tenders herewith payment
of the exercise price in full as set forth below.

 

(2)
Payment shall take the form of (check applicable box):

 

	 	[  ]	in
    lawful money of the United States in the form of cash or by a bank check or cashier’s check made payable by the undersigned
    to the Company;
	 	 	 
	 	[  ]	in
    lawful money of the United States in the form of a wire transfer to the account specified by the Company;
	 	 	 
	 	[  ]	in
    the form of shares of a “broker-assisted cashless exercise” as described in Section 7(d) of the Option Agreement;
	 	 	 
	 	[  ]	in
    the form of shares of a “net cashless exercise” as described in Section 7(d) of the Option Agreement; or
	 	 	 
	 	[  ]	in
    the form of shares of Common Stock (a “stock-for-stock exercise”) as described in Section 7(d) of the Option Agreement.

 

(3)
Please issue a certificate or certificates representing the Shares in the name of the undersigned or in such other name as is specified
below:

 

____________________________________

 

The
Shares shall be delivered via overnight courier (with tracking information to be provided to the undersigned) to the following address:

 

	 	____________________________	 
	 	____________________________	 
	 	____________________________	 
		 Attn:________________________	 
	 	Tel:_________________________	 

 

	 	OPTIONEE
	 	 
	 	 

 

	[Exhibit
    A to Non-qualified Stock Option Agreement]Exhibit 4.1

 

EXECUTION VERSION

 

 

 

SHAREHOLDER RIGHTS AGREEMENT

 

Nordstrom, Inc.

 

and

 

Computershare Trust Company, N.A.,

 

as Rights Agent

 

Dated as of September 19, 2022

 

 

 

    

     

    

 

Table of Contents

 

	 	 	Page
	Section 1.	 Certain Definitions	1
	Section 2. 	Appointment of Rights Agent	9
	Section 3.	Issuance of Rights Certificates	10
	Section 4. 	Form of Rights Certificates	12
	Section 5. 	Countersignature and Registration	13
	Section 6. 	Transfer, Split Up, Combination
and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	13
	Section 7. 	Exercise of Rights; Exercise
Price; Expiration Time of Rights	14
	Section 8. 	Cancellation and Destruction of Rights Certificates	16
	Section 9. 	Reservation and Availability
of Capital Stock	16
	Section 10. 	Common Stock Record Date	18
	Section 11. 	Adjustment of Exercise Price, Number and Kind of Shares or
Number of Rights	18
	Section 12. 	Certificate of Adjusted Exercise Price or Number of Shares	24
	Section 13. 	Consolidation, Merger or
Sale or Transfer of Assets, Cash Flow or Earning Power	24
	Section 14. 	Fractional Rights and Fractional
Shares	28
	Section 15. 	Rights of Action	29
	Section 16. 	Agreement of Rights Holders	29
	Section 17. 	Rights Certificate Holder Not Deemed a Shareholder	30
	Section 18. 	Concerning the Rights Agent	30
	Section 19. 	Merger or Consolidation
or Change of Name of Rights Agent	31
	Section 20. 	Duties of Rights Agent	32
	Section 21. 	Change of Rights Agent	35
	Section 22. 	Issuance of New Rights Certificates	36
	Section 23. 	Redemption and Termination	36
	Section 24. 	Exchange	37
	Section 25. 	Notice of Certain Events	38
	Section 26. 	Notices	39
	Section 27. 	Supplements and Amendments	40
	Section 28. 	Successors	40
	Section 29. 	Determination and Action by the Board	40
	Section 30. 	Benefits of this Agreement	41
	Section 31. 	Tax Compliance and Withholding	41
	Section 32. 	Severability	41
	Section 33. 	Governing Law; Submission to Jurisdiction	41
	Section 34. 	Counterparts	42
	Section 35. 	Descriptive Headings; Interpretation	42
	Section 36. 	Force Majeure	42

 

	Exhibit A - Form of Rights Certificate	 

	Exhibit B - Summary of Rights to Purchase Common Stock	 

 

    i

     

    

 

SHAREHOLDER RIGHTS AGREEMENT

 

This SHAREHOLDER RIGHTS AGREEMENT, dated as of
September 19, 2022 (this “Agreement”), is by and between Nordstrom, Inc., a Washington corporation (the “Company”),
and Computershare Trust Company, N.A., a federally chartered trust company, as rights agent (the “Rights Agent”).

 

W I T N E S S E T H:

 

WHEREAS, on September 19, 2022 (the “Rights
Dividend Declaration Date”), the board of directors of the Company (the “Board”) authorized and
declared a dividend distribution of one Right (as defined below) for each share of Company common stock, no par value per share (“Common
Stock”), outstanding at the Close of Business (as defined below) on September 30, 2022 (the “Record Date”),
and has further authorized the issuance of one Right (as such number may hereinafter be adjusted pursuant to Section 11) for
each share of Common Stock that shall become outstanding between the Record Date (whether originally issued or delivered from the Company’s
treasury) and the earlier of the Distribution Time and the Expiration Time (as such terms are defined below) or, in certain circumstances
provided in Section 22, after the Distribution Time.

 

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:

 

“Acquiring Person” shall
mean any Person which, together with all of its Related Persons, is the Beneficial Owner of the Specified Percentage or more of the shares
of Common Stock then outstanding, but shall exclude (x) Exempt Persons and (y)  Grandfathered Persons. Notwithstanding anything
in this Agreement to the contrary, no Person shall become an “Acquiring Person:”

 

(i) as
the result of an acquisition of shares of Common Stock by the Company which, by reducing the number of shares of Common Stock
outstanding, increases the percentage of the shares of Common Stock Beneficially Owned by such Person, together with all of its
Related Persons, to the Specified Percentage or more of the shares of Common Stock then outstanding; provided, however,
that if a Person (other than an Exempt Person or a Grandfathered Person), together with all of its Related Persons, becomes the
Beneficial Owner of the Specified Percentage or more of the shares of Common Stock then outstanding by reason of share acquisitions
by the Company and, after such share acquisitions by the Company, becomes the Beneficial Owner of any additional shares of Common
Stock (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Stock or pursuant to
a split or subdivision of the outstanding Common Stock), then such Person shall be deemed to be an “Acquiring Person”
unless, upon becoming the Beneficial Owner of such additional shares of Common Stock, such Person, together with all of its Related
Persons, does not Beneficially Own the Specified Percentage or more of the shares of Common Stock then outstanding;

 

    1

     

    

 

(ii) if
(A) the Board determines in good faith that such Person has become an “Acquiring Person” inadvertently (including because
(1) such Person was unaware that it Beneficially Owned a percentage of the then outstanding shares of Common Stock that would otherwise
cause such Person to be an “Acquiring Person” or (2) 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 (B) such Person
divests as promptly as practicable (as determined by the Board) a sufficient number of shares of Common Stock so that such Person would
no longer be an “Acquiring Person;”

 

(iii)   solely
as a result of any unilateral grant of any security by the Company, or through the exercise of any options, warrants, rights or similar
interests (including restricted stock) granted by the Company to its directors, officers or employees; provided, however,
that if a Person (other than an Exempt Person or a Grandfathered Person), together with all of its Related Persons, becomes the Beneficial
Owner of the Specified Percentage or more of the shares of Common Stock then outstanding by reason of a unilateral grant of a security
by the Company, or through the exercise of any options, warrants, rights or similar interests (including restricted stock) granted by
the Company to its directors, officers and employees, then such Person shall nevertheless be deemed to be an “Acquiring Person”
if, subject to clause (ii) above, such Person, together with all of its Related Persons, thereafter becomes the Beneficial Owner of any
additional shares of Common Stock (unless upon becoming the Beneficial Owner of additional shares of Common Stock, such Person, together
with all of its Related Persons, does not Beneficially Own the Specified Percentage or more of the Common Stock then outstanding), except
as a result of (A) a dividend or distribution paid or made by the Company on the outstanding Common Stock or a split or subdivision
of the outstanding Common Stock; or (B) the unilateral grant of a security by the Company, or through the exercise of any options,
warrants, rights or similar interest (including restricted stock) granted by the Company to its directors, officers or employees;

 

(iv)   by
means of share purchases or issuances (including debt to equity exchanges), directly from the Company or indirectly through an underwritten
offering of the Company, in a transaction approved by the Board; provided, however, that a Person (other than an Exempt
Person or a Grandfathered Person) shall be deemed to be an “Acquiring Person” if such Person (A) is or becomes the Beneficial
Owner of the Specified Percentage or more of the shares of Common Stock then outstanding following such transaction and (B) following
such transaction, becomes the Beneficial Owner of any additional shares of Common Stock without the prior written consent of the Company
and then Beneficially Owns the Specified Percentage or more of the shares of Common Stock then outstanding; or

 

(v) if such Person is a
bona fide swaps dealer who has become an “Acquiring Person” 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.

 

    2

     

    

 

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

 

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

 

“Affiliate” shall have
the meaning ascribed to such term in Rule 12b-2 of the Exchange Act Regulations as in effect on the date of this Agreement.

 

“Agreement” shall have
the meaning set forth in the preamble to this Agreement.

 

“Associate” shall have
the meaning ascribed to such term in Rule 12b-2 of the Exchange Act Regulations as in effect on the date of this Agreement.

 

A Person shall be deemed the “Beneficial
Owner” of, and shall be deemed to “Beneficially Own” and have “Beneficial Ownership”
of any securities (that are as such, “Beneficially Owned”):

 

(i)   that
such Person or any of such Person’s Related Persons beneficially owns, directly or indirectly, as determined pursuant to Rule 13d-3
of the Exchange Act Regulations as in effect on the date of this Agreement;

 

(ii)   that
such Person or any of such Person’s Related Persons, directly or indirectly, has the right or obligation to acquire (whether such
right is exercisable, or such obligation is required to be performed, immediately or only after the passage of time or the satisfaction
of other conditions) pursuant to any agreement, arrangement or understanding (whether or not in writing and other than customary agreements
with and between underwriters and selling group members with respect to a bona fide public offering of securities) or upon the exercise
of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise; provided, however,
that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” (A) securities tendered
pursuant to a tender or exchange offer made in accordance with the Exchange Act Regulations by or on behalf of such Person or any of such
Person’s Related Persons 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, (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 such Person’s Related Persons prior
to the Distribution Time or pursuant to Section 22 (the “Original Rights”) or pursuant to Section 11(i)
in connection with an adjustment made with respect to any Original Rights or (D) securities which such Person or any of such Person’s
Related Persons may acquire, does or do acquire or may be deemed to have the right to acquire, pursuant to any merger or other acquisition
agreement between the Company and such Person (or one or more of such Person’s Related Persons), if such agreement has been approved
by the Board prior to such Person’s becoming an Acquiring Person;

 

    3

     

    

 

(iii)  that
are Beneficially Owned, directly or indirectly, by any other Person (or any Related Person of such Person) with which such Person (or
any of such Person’s Related Persons) has any agreement, arrangement or understanding (whether or not in writing and other
than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of
securities); provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially
own,” any security if such agreement, arrangement or understanding (1) arises solely from a revocable proxy or consent given
in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the Exchange
Act Regulations and (2) is not also then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable
or successor report); or

 

(iv)  that
are Beneficially Owned, directly or indirectly, by a Counterparty (or any of such Counterparty’s Related Persons) 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 Related Persons 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 Related Persons) under a Derivatives Contract shall, for purposes
of this clause (v) include all securities that are Beneficially Owned, directly or indirectly, by any other Counterparty (or any
of such other Counterparty’s Related Persons) under any Derivatives Contract to which such first Counterparty (or any of such first
Counterparty’s Related Persons) is a Receiving Party, with this proviso being applied to successive Counterparties as appropriate;

 

provided, however, that (x) nothing in this definition
shall cause a Person engaged in business as an underwriter of securities to be the “Beneficial Owner” of, or to “beneficially
own,” any securities acquired through such Person’s participation in good faith in a firm commitment underwriting until the
expiration of forty (40) days after the date of such acquisition and (y) no officer or director of the Company shall be deemed to
Beneficially Own any securities of any other Person solely by virtue of any actions that such officer or director takes in such capacity.

 

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

 

    4

     

    

 

“Board” shall have the
meaning set forth in the recitals to this Agreement.

 

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

 

“Charter” shall mean
the Company’s Amended and Restated Articles of Incorporation, as amended from time to time.

 

“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, “Close of Business” shall mean 5:00 P.M., New York City time, on the next succeeding Business Day.

 

“Closing Price” in respect
of any security for any day shall mean 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 or the NYSE or, if such shares of common stock (or other security)
are not listed or admitted to trading on the Nasdaq or the NYSE, as reported in the principal consolidated transaction reporting system
with respect to securities listed on the principal national securities exchange on which such shares of common stock (or other security)
are listed or admitted to trading or, if such shares of common stock (or other security) are not listed or admitted to trading on any
national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter
market, as reported by the OTC Bulletin Board service or such other quotation system then in use, or, if on any such date such shares
of common stock (or other security) are not quoted by any such organization, the average of the closing bid and asked prices as furnished
by a professional market maker making a market in such common stock (or other security) selected by the Board. If on any such date no
such market maker is making a market in such common stock (or other security), the fair value of such common stock (or other security)
on such date as determined in good faith by the Board shall be used.

 

“Common Stock” shall
have the meaning set forth in the recitals to this Agreement.

 

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

 

“Company” shall have
the meaning set forth in the preamble to this Agreement.

 

“Counterparty” shall
have the meaning set forth in the definition of “Derivatives Contract.”

 

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

 

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

 

    5

     

    

 

“Derivatives
Contract” shall mean a contract, including all related documentation, 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 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, shares of 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
“Derivatives Contracts.”

 

“Distribution Time” shall
mean the earlier of (i) the Close of Business on the tenth (10th) day after the Share Acquisition Date (or, if the tenth (10th) day
after the Share Acquisition Date occurs before the Record Date, the Close of Business on the Record Date) or (ii) the Close of Business
on the tenth (10th) Business Day (or, if such tenth (10th) Business Day occurs before the Record Date, the Close of Business
on the Record Date), or such later date as may be determined by action of the Board prior to such time as any Person becomes an Acquiring
Person, after the date that a tender or exchange offer by any Person (other than any Exempt Person) is first published or sent or given
within the meaning of Rule 14d-2(a) of the Exchange Act Regulations, if upon consummation thereof, such Person would become an Acquiring
Person.

 

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

 

“Exchange Act Regulations”
shall mean the general rules and regulations promulgated under the Exchange Act.

 

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

 

“Exempt Person”
shall mean (i) the Company or any Subsidiary of the Company, (ii) any officer, director or employee of the Company or of
any Subsidiary of the Company solely in respect of such Person’s status or authority as such (including any fiduciary
capacity) or (iii) any employee benefit plan of the Company or of any Subsidiary of the Company or any entity or trustee
holding (or acting in a fiduciary capacity in respect of) shares of capital stock of the Company for or pursuant to the terms of any
such plan or for the purpose of funding other employee benefits for employees of the Company or any Subsidiary of the Company.

 

    6

     

    

 

“Exercise Price” shall
have the meaning set forth in Section 4(a).

 

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

 

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

 

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

 

“Flip-in Trigger Date”
shall have the meaning set forth in Section 11(a)(iii).

 

“Flip-over Event” shall
have the meaning set forth in Section 13(a).

 

“Flip-over Party” shall
have the meaning set forth in Section 13(b).

 

“Flip-over Stock” shall
mean the capital stock (or similar equity interest) with the greatest voting power in respect of the election of directors (or other Persons
similarly responsible for the direction of the business and affairs) of the Flip-over Party.

 

“Grandfathered
Person” shall mean (x) any Person who or which, together with all of such Person’s Related Persons, is, as of
immediately prior to the first public announcement of the adoption of this Agreement, the Beneficial Owner of the Specified
Percentage or more of the shares of Common Stock then outstanding and (y) any Person who or which becomes the Beneficial Owner of
the Specified Percentage or more of the shares of Common Stock then outstanding as the result of the acquisition of Beneficial
Ownership of shares of Common Stock from an individual described in the preceding clause (x) if such acquisition occurs upon such
individual’s death pursuant to such individual’s will or pursuant to a charitable trust created by such individual for
estate planning purposes. A Person ceases to be a “Grandfathered Person” if and when (i) such Person becomes the
Beneficial Owner of less than the Specified Percentage of the shares of Common Stock then outstanding; or (ii) such Person
increases such Person’s Beneficial Ownership of shares of Common Stock (excluding as a result of any unilateral grant of any
security by the Company, or through the exercise of any options, warrants, rights or similar interests (including restricted stock)
granted by the Company to its directors, officers or employees) to an amount equal to or greater than the greater of (A) the
Specified Percentage of the shares of Common Stock then outstanding and (B) the sum of (1) the lowest Beneficial Ownership
of such Person as a percentage of the shares of Common Stock outstanding as of any time from and after the first public announcement
of the adoption of this Agreement (other than as a result of an acquisition of shares of Common Stock by the Company) plus
(2) 0.1% of the then outstanding shares of Common Stock. The foregoing definition shall grandfather the security or instrument
underlying such Beneficial Ownership only in the type and form as of the date of this Agreement and shall not grandfather any
subsequent change, modification, swap or exchange of such security or instrument underlying such Beneficial Ownership into a
different type or form of security or instrument (unless such change, modification, swap or exchange is contemplated explicitly by
the terms of such security or instrument (e.g., as would be the case for options to purchase shares of Common Stock, in which
case the shares of Common Stock purchased upon the exercise of such options would be grandfathered)). For the avoidance of doubt,
cash-settled swap or exchange contracts for differences in the price of shares of Common Stock or other equity securities of the
Company shall not be grandfathered under this Agreement.

 

    7

     

    

 

“Nasdaq” shall mean the
Nasdaq Stock Market.

 

“Notional Common Shares”
shall have the meaning set forth in the definition of “Derivatives Contract.”

 

“NYSE” shall mean the
New York Stock Exchange.

 

“Person”
shall mean any individual, partnership, firm, corporation, limited liability company, association, trust, limited liability
partnership, joint venture, unincorporated organization or other entity, including (i) any group (as defined below) and (ii) any
successor (by merger or otherwise) of such entity. For purposes of this Agreement only, a “group” shall mean: (1)
any syndicate or group deemed to be a “person” under Section 13(d)(3) of the Exchange Act and any group under Rule
13d-5(b) of the Exchange Act Regulations and (2) collectively, Anne E. Gittinger, Bruce A. Nordstrom, Erik B. Nordstrom, James F.
Nordstrom and Peter E. Nordstrom and their respective Related Persons (even if such persons would not be considered to be part of a
group under Section 13(d)(3) of the Exchange Act or Rule 13d-5(b) of the Exchange Act Regulations).

 

“Receiving Party” shall
have the meaning set forth in the definition of “Derivatives Contract.”

 

“Record Date” shall have
the meaning set forth in the recitals to this Agreement.

 

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

 

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

 

“Related Person” shall
mean, as to any Person, any Affiliate or Associate of such Person.

 

“Right” shall mean the
right to purchase one share of Common Stock, upon the terms and subject to the conditions set forth in this Agreement.

 

“Rights Agent” shall
have the meaning set forth in the preamble to this Agreement.

 

“Rights Certificates”
shall have the meaning set forth in Section 3(b).

 

“Rights Dividend Declaration Date”
shall have the meaning set forth in the recitals to this Agreement.

 

“Share Acquisition
Date” shall mean the first date of public announcement (which, for purposes of this definition, shall include a report
filed pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person
has become such, or such other date, as determined by the Board, on which a Person has become an Acquiring Person.

 

    8

     

    

 

“Signature Guarantee”
shall have the meaning set forth in Section 6(a).

 

“Specified Percentage”
shall mean 10% (ten percent) when referring to the Beneficial Ownership of any Person.

 

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

 

“Subsidiary” shall mean,
with reference to any Person, any other Person of which (i) a majority of the voting power of the voting securities or equity interests
is Beneficially Owned, directly or indirectly, by such first-mentioned Person or otherwise controlled by such first-mentioned Person or
(ii) an amount of voting securities or equity interests sufficient to elect at least a majority of the directors (or other Persons
similarly responsible for the direction of the business and affairs of such other Person) of such other Person is Beneficially Owned,
directly or indirectly, by such first-mentioned Person, or otherwise controlled by such first-mentioned Person.

 

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

 

“Summary of Rights” shall
have the meaning set forth in Section 3(c).

 

“Trading Day” shall mean
a day on which the principal national securities exchange on which shares of an issuer’s common stock (or other security) are listed
or admitted to trading is open for the transaction of business or, if such shares of common stock (or other security) are not listed or
admitted to trading on any national securities exchange, a Business Day.

 

“Triggering Event” shall
mean a Flip-in Event or a Flip-over Event.

 

“Trust” shall have the
meaning set forth in Section 24(a).

 

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

 

Section 2. Appointment
of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company in accordance with the express
terms and conditions of this Agreement (and no implied terms and conditions), and the Rights Agent hereby accepts such appointment.
The Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable (the term “Rights
Agent” being used herein to refer, collectively, to the Rights Agent together with any such co-Rights Agents), upon ten (10)
days’ prior written notice to the Rights Agent. In the event the Company appoints one or more co-Rights Agents, the respective
duties of the Rights Agent and any co-Rights Agents shall be as the Company reasonably determines, provided that such duties
are consistent with the terms and conditions of this Agreement and that contemporaneously with such appointment the Company shall
notify, in writing, the Rights Agent and any co-Rights Agents of any such duties. The Rights Agent shall have no duty to supervise,
and shall in no event be liable for, the acts or omissions of any such co-Rights Agents.

 

    9

     

    

 

Section 3. Issuance of Rights
Certificates.

 

(a)
Until the earlier of the Distribution Time and the Expiration Time, (i) with respect to shares of Common Stock outstanding as of
the Record Date, or which become outstanding subsequent to the Record Date, the Rights shall be evidenced by the certificates for shares
of Common Stock registered in the names of the holders of shares of Common Stock (or, in the case of uncertificated shares of Common Stock,
by the book-entry account that evidences record ownership of such shares) (which certificates or book entries for Common Stock shall be
deemed also to be certificates or book entries for Rights), and not by separate certificates (or book entries), (ii) the surrender for
transfer of any certificate representing shares of Common Stock (or, in the case of uncertificated shares of Common Stock, the effectuation
of a book-entry transfer of such shares of Common Stock) in respect of which Rights have been issued shall also constitute the transfer
of the Rights associated with such shares of Common Stock and (iii) the Rights shall be transferable only in connection with the transfer
of the underlying shares of Common Stock. As of and after the Distribution Time, the Rights shall be evidenced solely by such Rights Certificates,
and the Rights Certificates and the Rights shall be transferable separately from the Common Stock.

 

(b)
The Company shall promptly notify the Rights Agent of a Distribution Time and request its transfer agent (if its transfer agent
is not the Rights Agent) to give the Rights Agent a shareholder list together with all other relevant information. As soon as practicable
after the Rights Agent is notified of the Distribution Time and receives such information, the Rights Agent shall send by first-class,
insured, postage prepaid mail, to each record holder of Common Stock as of the Close of Business on the Distribution Time, at the address
of such holder shown on the records of the Company, one or more Rights certificates, in substantially the form of Exhibit A
(the “Rights Certificates”), evidencing one Right for each share of Common Stock so held, subject to adjustment
as provided herein. To the extent that a Flip-in Event has also occurred, the Company may implement such procedures, as it deems appropriate
in its sole discretion (but which do not affect the rights, duties, liabilities or responsibilities of the Rights Agent), to minimize
the possibility that Rights Certificates are received by Persons whose Rights would be null and void under Section 7(e) and
provide reasonably prompt written notice thereof to the Rights Agent. In the event that any adjustment in the number of Rights per share
of Common Stock has been made pursuant to Section 11, at the time of distribution of the Rights Certificates, the Company
shall make the necessary and appropriate rounding adjustments (in accordance with Section 14(a)) so that Rights Certificates
representing only whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights.

 

(c)
The Company shall make available, as promptly as practicable, a copy of a Summary of Rights, in substantially the form attached
as Exhibit B (the “Summary of Rights”), to any holder of Rights who may so request from time to
time prior to the Expiration Time.

 

    10

     

    

 

(d) Rights shall be
issued in respect of all shares of Common Stock that are issued (whether originally issued or from the Company’s treasury)
after the Record Date but prior to the earlier of the Distribution Time or the Expiration Time or, in certain circumstances provided
in Section 22, after the Distribution Time. Certificates representing such shares of Common Stock shall also be deemed
to be certificates for Rights and shall bear a legend substantially in the following form:

 

This certificate also evidences and entitles
the holder hereof to certain rights (the “Rights”) as set forth in the Shareholder Rights Agreement, dated as
of September 19, 2022 (as the same may be amended from time to time, the “Rights Agreement”), by and between
Nordstrom, Inc., a Washington corporation (the “Company”), and Computershare Trust Company, N.A., the terms
of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of the Company.
Under certain circumstances, as set forth in the Rights Agreement, the Rights shall be evidenced by separate certificates and will no
longer be evidenced by this certificate. The Company will mail to the holder of this certificate a copy of the Rights Agreement, 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, any Rights that are Beneficially Owned by any Person who is or was an Acquiring Person or a Related Person of
an Acquiring Person (as such terms are defined in the Rights Agreement) or certain transferees of an Acquiring Person or of any such Related
Person will become null and void and will no longer be transferable.

 

With respect to any book-entry shares of Common Stock, such legend
shall be included in a notice to the record holder of such shares to the extent required by applicable law. With respect to certificated
shares of Common Stock containing the foregoing legend, or any notice of the foregoing legend delivered to record holders of book-entry
shares, until the earlier of (i) the Distribution Time or (ii) the Expiration Time, the Rights associated with such shares of
Common Stock represented by certificates or registered in book-entry form shall be evidenced by such certificates alone, or such registration
in book-entry form alone, and registered holders of such shares of Common Stock shall also be the registered holders of the associated
Rights, and the transfer of any of such shares of Common Stock represented by such certificates or book-entries shall also constitute
the transfer of the Rights associated with the shares of Common Stock represented by such certificates or book entries. In the event the
Company purchases or acquires any shares of Common Stock after the Record Date but prior to the Distribution Time, any Rights associated
with such shares shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights associated with
shares of Common Stock that are no longer outstanding. The omission of any legend described in this Section 3 shall not affect
the status, validity or enforceability of any part of this Agreement or the rights of any holder of the Rights.

 

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

 

    11

     

    

 

Section 4. Form
of Rights Certificates.

 

(a) The Rights
Certificates (and the forms of election to purchase and of assignment to be printed on the reverse thereof), when and if issued,
shall each be substantially in the form set forth in Exhibit A and may have such marks of identification or designation and
such legends, summaries or endorsements printed thereon as the Company may deem appropriate (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 customary usage. Subject to Section 11
and Section 22, the Rights Certificates, whenever distributed, shall be dated as of the Record Date or, in the case of
Rights with respect to shares of Common Stock issued or becoming outstanding after the Record Date, the same date as the date of the
stock certificate evidencing such shares (or, with respect to uncertificated shares of Common Stock, the date of the issuance of
such shares of Common Stock indicated in the books of the registrar and transfer agent), and on their face shall entitle the holders
thereof to purchase such number of shares of Common Stock as shall be set forth therein at the price per share of Common Stock set
forth therein (the “Exercise Price”), but the amount and type of securities purchasable upon the exercise
of each Right and the Exercise Price thereof shall be subject to adjustment from time to time as provided in Section 11
and Section 13(a).

 

(b)
Any Rights Certificate issued pursuant to Section 3(a), Section 11(a)(ii) or Section 22 that
represents Rights Beneficially Owned by any Person known to be (i) an Acquiring Person or any Related Person of an Acquiring Person,
(ii) a transferee of an Acquiring Person (or of any such Related Person) who becomes a transferee after the Acquiring Person becomes
such or (iii) a transferee of an Acquiring Person (or of any such Related Person) 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 Related Person thereof) to holders of equity interests in such Acquiring Person (or any Related Person
thereof) or to any Person with whom such Acquiring Person (or any Related Person thereof) has any continuing agreement, arrangement or
understanding, whether or not in writing, regarding the transferred Rights or (B) a transfer which the Board has determined is part
of a plan, agreement, arrangement or understanding which has as a primary purpose or effect of avoidance of Section 7(e),
and any Rights Certificate issued pursuant to Section 6 or Section 11 upon transfer, exchange, replacement or
adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent feasible) the following legend:

 

The Rights represented by this Rights
Certificate are or were Beneficially Owned by an Acquiring Person or a Related Person of an Acquiring Person (as such terms are defined
in the Shareholder Rights Agreement, dated as of September 19, 2022 (as the same may be amended from time to time, the “Rights
Agreement”), by and between Nordstrom, Inc. and Computershare Trust Company, N.A. (and any successor rights agent)) or a
certain transferee of an Acquiring Person or of any such Related Person. Accordingly, this Rights Certificate and the Rights represented
hereby will become null and void in the circumstances specified in Section 7(e) of such Rights Agreement.

 

    12

     

    

 

The absence of the foregoing legend on any Rights
Certificate shall in no way affect any of the other provisions of this Agreement, including the provisions of Section 7(e).

 

Section 5.
Countersignature and Registration.

 

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

 

(b)
Following the Distribution Time, the Rights Agent shall keep or cause to be kept, at its principal 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 certificate number 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 Section 4(b), Section 7(e)
and Section 14, at any time after the Close of Business on the Distribution Time, and at or prior to the Close of
Business on the Expiration Time, any Rights Certificate (other than Rights Certificates representing Rights that have become null
and void pursuant to Section 7(e), that have been redeemed pursuant to Section 23 or that have been
exchanged pursuant to Section 24) may be transferred, split up, combined or exchanged for another Rights Certificate,
entitling the registered holder to purchase a like number of shares of Common Stock (or, following a Triggering Event, other
securities, cash or other assets, as the case may be) as the Rights Certificate surrendered then entitled such holder (or former
holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights
Certificate shall make such request in writing delivered to the Rights Agent and shall surrender the Rights Certificate to be
transferred, split up, combined or exchanged, with the form of assignment and certificate contained therein properly completed and
duly executed and with all signatures guaranteed from an eligible guarantor institution participating in a signature guarantee
program approved by the Securities Transfer Association (a “Signature Guarantee”), at the offices of the
Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever
with respect to the transfer, split up, combination or exchange of any such surrendered Rights Certificate until the registered
holder has properly completed and duly executed the certificate contained in the form of assignment on the reverse side of such
Rights Certificate accompanied by a Signature Guarantee and such additional evidence of the identity of the Beneficial Owner (or
former Beneficial Owner) or Related Persons thereof as the Company or the Rights Agent reasonably requests. Thereupon the Rights
Agent shall, subject to Section 4(b), Section 7(e), Section 14 and Section 24,
countersign 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 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. If and to the extent the Company does
require payment of any such taxes or charges, the Company shall give the Rights Agent prompt written notice thereof and the Rights
Agent shall not be obligated to deliver any Rights Certificate unless and until it is satisfied that all such payments have been
made, and the Rights Agent shall forward any such sum collected by it to the Company or to such Persons as the Company specifies by
written notice. The Rights Agent shall have no duty or obligation to take any action with respect to a Rights holder under this
Agreement that requires the payment by such Rights holder of any tax or governmental charge unless and until the Rights Agent is
satisfied that all such taxes and charges have been paid.

 

    13

     

    

 

(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 valid Rights Certificate, and, in case of loss, theft or destruction, of indemnity or security 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 Certificates if mutilated, the Company shall prepare, execute and deliver a new Rights Certificate of like
tenor to the Rights Agent for countersignature and delivery to the registered owner in lieu of the Rights Certificate so lost, stolen,
destroyed or mutilated.

 

Section 7. Exercise of Rights;
Exercise Price; Expiration Time of Rights.

 

(a)
Subject to Section 7(e), the registered holder of any Rights Certificate may exercise the Rights evidenced thereby
(except as otherwise provided herein including the restrictions on exercisability set forth in Section 7(c), Section 9(c),
Section 11(a)(iii) and Section 23(a)) in whole or in part at any time after the Distribution Time upon surrender
of the Rights Certificate, with the form of election to purchase and the certificate on the reverse side thereof properly completed and
duly executed, to the Rights Agent at the principal office or offices of the Rights Agent designated for such purpose, accompanied by
a Signature Guarantee and such other documentation as the Rights Agent may reasonably request together with payment of the aggregate Exercise
Price with respect to the total number of shares of Common Stock (or other securities, cash or other assets, as the case may be) as to
which such surrendered Rights are then exercisable, at or prior to the earliest of (i) the Close of Business on September 19, 2023
(the “Final Expiration Time”), (ii) the time at which the Rights are redeemed as provided in Section 23,
(iii) the time at which such Rights are exchanged pursuant to Section 24 or (iv) the closing of any merger or other
acquisition transaction involving the Company pursuant to an agreement of the type described in Section 13(f), at which time,
the Rights are terminated (the earliest of (i), (ii), (iii) and (iv) being herein referred to as the “Expiration Time”).

 

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(b) The Exercise Price
for each share of Common Stock pursuant to the exercise of a Right shall initially be $94.00, and shall be subject to adjustment from
time to time as provided in Section 11 and Section 13(a) and shall be payable in accordance with Section 7(c).

 

(c)
Upon receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase and the certificate
properly completed and duly executed, accompanied by payment, with respect to each Right so exercised, of the Exercise Price for the shares
of Common Stock (or 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 the Rights Certificate in accordance with Section 9(e),
the Rights Agent shall, subject to Section 20(k), thereupon promptly (i) (A) requisition from any transfer agent
of the shares of Common Stock (or make available, if the Rights Agent is the transfer agent for such shares) certificates for the total
number of shares of Common Stock to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such
requests or (B) if the Company has elected to deposit the total number of shares of Common Stock issuable upon exercise of the Rights
hereunder with a depositary agent, requisition from the depositary agent depositary receipts representing such number of shares of Common
Stock as are to be purchased (in which case certificates for the shares of Common Stock represented by such receipts shall be deposited
by the transfer agent with the depositary agent) and the Company shall 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, (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 Exercise Price (as such
amount may be reduced pursuant to Section 11(a)(iii)) 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 of the Company, pay cash and/or distribute
other property pursuant to Section 11(a), the Company shall make all arrangements necessary so that such other securities,
cash and/or other property are available for distribution by the Rights Agent, if and when necessary to comply with the terms of this
Agreement, and until so received, the Rights Agent shall have no duties or obligations with respect to such securities, cash and/or other
property. 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 Common Stock would be issued.

 

(d)
In case the registered holder of any Rights Certificate exercises less than all the Rights evidenced thereby, a new Rights Certificate
evidencing Rights equivalent to 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
Section 14.

 

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(e) Notwithstanding
anything in this Agreement to the contrary, from and after the first occurrence of a Flip-in Event, any Rights Beneficially Owned by
(i) an Acquiring Person or any Related Person of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any
such Related Person) who becomes a transferee after the Acquiring Person becomes such or (iii) a transferee of an Acquiring
Person (or of any such Related Person) 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
Related Person thereof) to holders of equity interests in such Acquiring Person (or any Related Person thereof) or to any Person
with whom such Acquiring Person (or any Related Person thereof) has any continuing agreement, arrangement or understanding, whether
or not in writing, regarding the transferred Rights or (B) a transfer which the Board has determined is part of an agreement,
arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 7(e), shall become
null and void without any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights,
whether under any provision of this Agreement or otherwise. The Company shall notify the Rights Agent in writing when this Section 7(e) applies
and shall use commercially reasonable efforts to ensure that the provisions of this Section 7(e) and Section 4(b) are
complied with, but neither the Company nor the Rights Agent shall have any liability to any holder of Rights or other Person
(without limiting the rights of the Rights Agent under Section 18) as a result of the Company’s failure to make
any determinations with respect to an Acquiring Person or any of its Related Persons or transferees hereunder.

 

(f)       
Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake
any action with respect to a registered holder upon the occurrence of any purported exercise as set forth in this Section 7
unless such registered holder has (i) properly completed and duly executed the certificate contained in the form of election to purchase
set forth on the reverse side of the Rights Certificate surrendered for such exercise and (ii) provided such additional evidence
of the identity of the Beneficial Owner (or former Beneficial Owner) or Related Persons thereof as the Company or the Rights Agent reasonably
requests.

 

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 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 Certificates purchased or acquired by the Company
otherwise than upon the exercise thereof. At the expense of the Company, the Rights Agent shall deliver all cancelled Rights
Certificates to the Company, or shall, at the written request of the Company, destroy or cause to be destroyed such cancelled Rights
Certificates, and in such case shall deliver a certificate of destruction thereof, executed by the Rights Agent, to the Company.

 

Section 9. Reservation and
Availability of Capital Stock.

 

(a) The Company shall
cause to be reserved and kept available out of its authorized and unissued shares of Common Stock (and/or, as applicable following
the occurrence of a Triggering Event, out of its authorized and unissued shares of other securities), or out of its authorized and
issued shares of Common Stock (and/or other securities) held in its treasury, the number of shares of Common Stock (and/or, as
applicable following the occurrence of a Triggering Event, other securities) that, as provided in this Agreement, including Section 11(a)(iii),
shall be sufficient to permit the exercise in full of all outstanding Rights.

 

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(b)
So long as the shares of Common Stock (and/or, as applicable following the occurrence of a Triggering Event, other securities)
issuable and deliverable upon the exercise of the Rights may be listed on any national securities exchange, the Company shall use commercially
reasonable efforts to cause, from and after such time as the Rights become exercisable, all shares (and other securities, if any) reserved
for such issuance to be listed on such exchange, upon official notice of issuance upon such exercise.

 

(c)
If the Company is required to file a registration statement pursuant to the Act with respect to the securities purchasable upon
exercise of the Rights, the Company shall use commercially reasonable efforts to (i) prepare and file, as soon as practicable following
the earliest date after the first occurrence of a Flip-in 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)(iii), or as soon as is required by applicable law following
the Distribution Time, as the case may be, a registration statement under the Act with respect to the securities purchasable upon exercise
of the Rights on an appropriate form, (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
Expiration Time. The Company shall 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
(with prompt written notice to the Rights Agent), for a period of time not to exceed ninety (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. In addition, if the Company determines that a registration statement is required following the Distribution Time, and a Flip-in
Event has not occurred, the Company may temporarily suspend (with prompt written notice thereof to the Rights Agent) the exercisability
of 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 or exemption in such jurisdiction
shall not have been obtained, the exercise thereof shall not be permitted under applicable law or a registration statement shall not have
been declared effective.

 

(d)
The Company shall take all such actions as may be necessary to ensure that all shares of Common Stock (and/or, as applicable following
the occurrence of a Triggering Event, other securities) delivered upon exercise of Rights shall, at the time of delivery of the certificates
for such shares and/or other securities (subject to payment of the Exercise Price), be duly and validly authorized and issued and fully
paid and non-assessable.

 

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(e) The Company shall be
responsible for the payment of any and all transfer taxes and governmental charges that may be payable in respect of the issuance or
delivery of the Rights Certificates and of any certificates for shares of Common Stock (and/or other securities) upon the exercise
of any Rights. The Company shall not, however, be required to pay any tax or charge 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 a number of shares of Common Stock (and/or
other securities) in respect of 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 a number of shares of Common Stock (and/or other securities) in
a name other than that of the registered holder upon the exercise of any Rights until such tax has been paid (any such tax being
payable by the holder of such Rights Certificate at the time of surrender) or until it has been established to the Company’s
satisfaction that no such tax or charge is due.

 

Section 10. Common Stock Record
Date. Each Person in whose name any certificate for shares of Common Stock (and/or other securities) is issued upon the
exercise of Rights shall for all purposes be deemed to have become the holder of record of such shares of Common Stock (and/or other
securities) represented thereby on, and such certificate shall be dated, the date upon which the Rights Certificate evidencing such
Rights was duly surrendered and payment of the Exercise 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 applicable 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 shall
be dated, the next succeeding Business Day on which the applicable transfer books of the Company are open; provided, further,
that if delivery of a number of shares of Common Stock (and/or other securities) is delayed pursuant to Section 9(c),
such Persons shall be deemed to have become the record holders of such number of shares of Common Stock (and/or other securities)
only when such shares of Common Stock (and/or other securities) first become deliverable. Prior to the exercise of the Rights
evidenced thereby, the holder of a Rights Certificate shall not be entitled to any rights of a shareholder of the Company with
respect to shares or other securities for which the Rights are exercisable, including 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.

 

Section 11. Adjustment of Exercise
Price, Number and Kind of Shares or Number of Rights. The Exercise Price, the number and kind of shares covered by each
Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this Section 11.

 

(a) (i) In the event the
Company at any time after the date of this Agreement (A) declares a dividend on any outstanding shares of Common Stock
payable in shares of Common Stock, (B) subdivides any outstanding shares of Common Stock, (C) combines any outstanding
shares of Common Stock into a smaller number of shares or (D) issues any shares of its capital stock in a reclassification of
the Common Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the
continuing or surviving entity), except as otherwise provided in this Section 11(a) and Section 7(e), the
Exercise Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination
or reclassification, and the number and kind of shares (or fractions thereof) of Common Stock or capital stock, as the case may be,
issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled
to receive, upon payment of the Exercise Price then in effect, the aggregate number and kind of shares (or fractions thereof) of
Common Stock or capital stock, as the case may be, which, if such Right had been exercised immediately prior to such date and at a
time when the applicable transfer books of the Company were open, such holder would have owned upon such exercise and been entitled
to receive by virtue of such dividend, subdivision, combination or reclassification. If an event occurs that would require an
adjustment under both this Section 11(a)(i) and Section 11(a)(ii), the adjustment provided for in this Section 11(a)(i)
shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii).

 

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(ii)      
Subject to Section 24, in the event any Person (other than any Exempt Person) becomes an Acquiring Person (such event,
a “Flip-in Event”), unless the event causing such Person to become an Acquiring Person is a Flip-over Event,
then proper provision shall be made so that promptly following the Redemption Period, each holder of a Right (except as provided below
and in Section 7(e)) thereafter has the right to receive, upon exercise thereof at a price equal to the Exercise
Price in accordance with the terms of this Agreement, in lieu of the number of shares of Common Stock otherwise
receivable upon exercise, such number of shares of Common Stock as shall be equal to the result obtained by (A) multiplying the Exercise Price by the then number of shares of Common Stock for which a Right was exercisable immediately
prior to the first occurrence of a Flip-in Event and (B) dividing that product (which, following such first occurrence shall thereafter
be referred to as the “Exercise Price” for each Right and for all purposes of this Agreement) by fifty percent (50%) of the
Current Market Price per share of Common Stock on the date of such first occurrence (such number of shares, the “Adjustment
Shares”).

 

(iii)   In
the event that the number of shares of Common Stock authorized by the Charter, but not outstanding or reserved for issuance for
purposes other than upon exercise of the Rights, is not sufficient to permit the exercise in full of the Rights in accordance with Section 11(a)(ii),
the Board shall, to the extent permitted by applicable law, the Charter and by any agreements or instruments then in effect to which
the Company is a party, (A) determine the excess of (1) the value of the Adjustment Shares issuable upon the exercise of a
Right (the “Current Value”) over (2) the Exercise Price (such excess being the
“Spread”) and (B) with respect to each Right (subject to Section 7(e)), make adequate
provision to substitute for some or all of the Adjustment Shares, upon the exercise of a Right and payment of the applicable
Exercise Price, (1) cash, (2) a reduction in the Exercise Price, (3) shares or fractions of a share of preferred
stock or other equity securities of the Company (including shares, or units of shares, of preferred stock, which the Board has
determined to have substantially the same value or economic rights as shares of Common Stock) (such shares of equity securities
being herein called “Common Stock Equivalents”), (4) debt securities of the Company, (5) other
assets or (6) any combination of the foregoing, having an aggregate value equal to the Current Value (less the amount of any
reduction in the Exercise Price), 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 the Company has not made adequate
provision to deliver value pursuant to clause (B) above within thirty (30) days following the later of (x) the first
occurrence of a Flip-in Event and (y) the date on which the Redemption Period expires (the later of (x) and (y) being
referred to herein as the “Flip-in Trigger Date”), then the Company shall be obligated to deliver, to the
extent permitted by applicable law and the Charter, upon the surrender for exercise of a Right and without requiring payment of the
Exercise Price, shares of Common Stock (to the extent available), and then, if necessary, such number or fractions of shares of
preferred stock (to the extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to
the Spread. If, upon the occurrence of a Flip-in Event, the Board determines in good faith that it is likely that sufficient
additional shares of Common Stock could be authorized for issuance upon exercise in full of the Rights, the thirty (30)-day period
set forth above may be extended to the extent necessary, but not more than ninety (90) days after the Flip-in Trigger Date, in
order that the Company may seek shareholder approval for the authorization of such additional shares (such thirty (30)-day period,
as it may be extended, the “Substitution Period”). To the extent the Company determines that action should
be taken pursuant to the first sentence or third sentence of this Section 11(a)(iii), the Company (x) shall
provide, subject to Section 7(e), that such action shall apply uniformly to all outstanding Rights and (y) may
suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek such shareholder approval
for authorization of additional shares and/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 (with prompt written notice of such announcements to the Rights Agent). 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 Flip-in Trigger Date, and the
value of any Common Stock Equivalent shall be deemed to equal the Current Market Price per share of the Common Stock on such date.
The Board may establish procedures to allocate the right to receive shares of Common Stock upon the exercise of the Rights among
holders of Rights pursuant to this Section 11(a)(iii).

 

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(b) In case the Company
fixes a record date for the issuance of rights (other than the Rights), options or warrants to all holders of Common Stock entitling
them to subscribe for or purchase (for a period expiring within forty-five (45) days after such record date) Common Stock (or
shares having the same rights, privileges and preferences as the shares of Common Stock (“Equivalent Common
Stock”)) or securities convertible into Common Stock or Equivalent Common Stock at a price per share of Common Stock
or per share of Equivalent Common Stock (or having a conversion price per share, if a security convertible into Common Stock or
Equivalent Common Stock) less than the Current Market Price per share of Common Stock on such record date, the Exercise Price to be
in effect after such record date shall be determined by multiplying the Exercise Price in effect immediately prior to such record
date by a fraction, the numerator of which shall be the number of shares of Common Stock and/or Equivalent Common Stock outstanding
on such record date, plus the number of shares of Common Stock and/or Equivalent Common Stock which the aggregate offering price of
the total number of shares of Common Stock and/or Equivalent Common 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 Common Stock and/or Equivalent Common Stock outstanding on such record date, plus the number of
additional shares of Common Stock and/or Equivalent Common 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 on the
Rights Agent and the holders of the Rights. Shares of Common Stock and Equivalent Common Stock owned by or held for the account of
the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made successively
whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, the Exercise Price
shall be adjusted to be the Exercise Price which would then be in effect if such record date had not been fixed.

 

(c)
In case the Company fixes a record date for a distribution to all holders of Common Stock (including any such distribution made
in connection with a consolidation or merger in which the Company is the continuing or surviving entity) of evidences of indebtedness,
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 Common Stock, but including any dividend payable in stock other than Common Stock) or subscription rights, options or warrants
(excluding those referred to in Section 11(b)), the Exercise Price to be in effect after such record date shall be determined
by multiplying the Exercise 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 Common 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 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 or warrants
applicable to a share of Common Stock and the denominator of which shall be such Current Market Price per share of Common 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
Exercise Price shall be adjusted to be the Exercise Price that would have been in effect if such record date had not been fixed.

 

(d) For the purpose of
any computation hereunder, other than computations made pursuant to Section 11(a)(iii), the “Current Market
Price” per share of common stock (or similar equity interest) of an issuer on any date shall be deemed to be the
average of the daily Closing Prices per share of such common stock (or other security) for the thirty (30) consecutive Trading Days
immediately prior to but not including such date, and for purposes of computations made pursuant to Section 11(a)(iii),
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 such Common Stock for the ten (10) consecutive Trading Days immediately following but not
including such date; provided, however, that in the event that the Current Market Price per share of common stock (or
other security) of an issuer is determined during a period following the announcement by the issuer of such common stock (or other
security) of (A) a dividend or distribution on such common stock (or other security) payable in shares of such common stock (or
other security) or securities convertible into shares of such common stock (or other security) (other than the Rights) or
(B) any subdivision, combination or reclassification of such common stock (or other security), 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 thirty (30) Trading Day or ten (10) Trading Day period, as set forth above, then, and in
each such case, the “Current Market Price” shall be properly adjusted, as determined in good faith by the
Board, to take into account any trading during the period prior to such ex-dividend date or record date. If an issuer’s shares
of common stock (or other security) are not publicly held or not so listed or traded, “Current Market
Price” per share 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.

 

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(e)
Notwithstanding anything in this Agreement to the contrary, no adjustment in the Exercise Price shall be required unless such adjustment
would require an increase or decrease of at least one percent (1%) in the Exercise Price; provided, however, that any
adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account
in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one
ten-thousandth of a share of Common Stock or one ten-thousandth of any other share or security, as the case may be. Notwithstanding the
first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the
earlier of (i) three (3) years from the date of the transaction which mandates such adjustment or (ii) the Expiration Time.

 

(f)       
If as a result of an adjustment made pursuant to Section 11(a)(ii) or Section 13(a), the holder of any
Right thereafter exercised becomes entitled to receive any shares of capital stock other than Common Stock, thereafter the number of such
other shares so receivable upon exercise of any Right and the Exercise 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 Common Stock contained in Section 11(a),
(b), (c), (e), (g), (h), (i), (j), (k) and (m), and the provisions of Section 7,
9, 10, 13 and 14 with respect to the Common 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 Exercise Price hereunder shall evidence the
right to purchase, at the adjusted Exercise Price, the number of shares of Common Stock (or other securities, other assets 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 has exercised its election as provided in Section 11(i), upon each adjustment of the Exercise Price
as a result of the calculations made in Section 11(b) and Section 11(c), each Right outstanding immediately prior
to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Exercise Price, that number of shares
of Common Stock (calculated to the nearest one-ten thousandth) obtained by (i) multiplying (A) the number of shares of Common
Stock covered by a Right immediately prior to this adjustment, by (B) the Exercise Price in effect immediately prior to such adjustment
of the Exercise Price and (ii) dividing the product so obtained by the Exercise Price in effect immediately after such adjustment
of the Exercise Price.

 

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(i) The Company may
elect on or after the date of any adjustment of the Exercise Price to adjust the number of Rights, in lieu of any adjustment in the
number of shares of Common Stock purchasable upon the exercise of a Right. Each of the Rights outstanding after the adjustment in
the number of Rights shall be exercisable for the number of shares of Common 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 Exercise Price in effect immediately prior to
adjustment of the Exercise Price by the Exercise Price in effect immediately after adjustment of the Exercise 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 Exercise Price is adjusted or any day thereafter, but, if the Rights Certificates have been
issued, shall be at least ten (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, 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 Exercise 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 Exercise Price or the number of shares of Common Stock issuable upon the exercise
of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Exercise Price and the number of
shares of Common Stock which were expressed in the initial Rights Certificates issued hereunder.

 

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

 

(l)
In any case in which this Section 11 requires that an adjustment in the Exercise Price be made effective as of a record
date for a specified event, the Company may elect to defer (with prompt written notice thereof to the Rights Agent) until the occurrence
of such event the issuance to the holder of any Right exercised after such record date the number of shares of Common Stock and other
capital stock or securities of the Company, if any, issuable upon such exercise over and above the number of shares of Common Stock and
other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Exercise Price in effect prior
to such adjustment (and shall provide the Rights Agent prompt written notice of such election); 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.

 

    22

     

    

 

(m)
 Notwithstanding anything in this Section 11 to the contrary, the Company shall be entitled (but not obligated) to
make such reductions in the Exercise Price, in addition to those adjustments expressly required by this Section 11, as and
to the extent that the Board, in its good faith judgment, shall determine to be advisable in order that any (i) consolidation or
subdivision of the outstanding shares of Common Stock, (ii) issuance wholly for cash of any shares of Common Stock at less than the
Current Market Price, (iii) issuance wholly for cash of shares of Common Stock or securities that by their terms are convertible
into or exchangeable for shares of Common Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred
to in this Section 11, hereafter made by the Company to holders of Common Stock shall not be taxable to such shareholders.

 

(n)
The Company shall not, at any time after the Distribution Time, (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)), (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)) or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a series
of related transactions, assets, cash flow or earning power aggregating to fifty percent (50%) or more of the assets, cash flow or earning
power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company or any of its Subsidiaries
in one or more transactions each of which complies with Section 11(o)), if (A) at the time of or immediately after such
consolidation, merger, sale or transfer there are any 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 shareholders of the Person who constitutes,
or would constitute, the “Flip-over Party” for purposes of Section 13(a) shall have received a distribution of
Rights previously owned by such Person or any of its Related Persons; provided, however, that 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 of earning
power to, any other Subsidiary of the Company.

 

(o)
After the Distribution Time and as long as any Rights are outstanding (other than Rights that have become null and void pursuant
to Section 7(e)), the Company shall not, except as permitted by Section 23, Section 24 or Section 27,
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) Notwithstanding
anything in this Agreement to the contrary, in the event that the Company at any time after the Rights Dividend Declaration Date and
prior to the Distribution Time (i) declares a dividend on the outstanding shares of Common Stock payable in shares of Common
Stock, (ii) subdivides any outstanding shares of Common Stock, (iii) combines any of the outstanding shares of Common
Stock into a smaller number of shares or (iv) issues any shares of its capital stock in a reclassification of the Common Stock
(including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or
surviving entity), then the number of Rights associated with each share of Common Stock then outstanding, or issued or delivered
thereafter but prior to the Distribution Time, shall be proportionately adjusted so that the number of Rights thereafter associated
with each share of Common Stock following any such event equals 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 adjustments provided for in
this Section 11(p) shall be made successively whenever such a dividend is declared or paid or such a subdivision,
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 adjustments provided for in this Section 11(p) shall be in addition and prior to
any adjustment required pursuant to Section 11(a)(ii).

 

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Section 12.
Certificate of Adjusted Exercise Price or Number of Shares. Whenever an adjustment is made as provided in Section 11
or Section 13, the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief, reasonably
detailed statement of the facts and computations accounting for such adjustment, (b) promptly file with the Rights Agent, and with
the transfer agent for the Common Stock, a copy of such certificate and (c) if a Distribution Time has occurred, mail a brief summary
thereof to each holder of a Rights Certificate in accordance with Section 26. Notwithstanding the foregoing sentence, the
failure of the Company to make such certification, give such notice or mail such summary shall not affect the validity of or the force
or effect of the requirement for such adjustment. Any adjustment to be made pursuant to Section 11 or Section 13
shall be effective as of the date of the event giving rise to such adjustment. 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, such adjustment unless and until it shall have received such certificate.

 

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

 

(a) In the event that,
following the Share Acquisition Date, 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)),
and the Company is not the continuing or surviving 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)) shall engage in a
share exchange with or shall consolidate with, or merge with or into, the Company, and the Company is the continuing or surviving
entity of such consolidation or merger and, in connection with such share exchange, consolidation or merger, all or part of the
outstanding shares of Common Stock is converted into or exchanged for stock or other securities of any other Person or cash or any
other property or (iii) the Company sells or otherwise transfers (or one or more of its direct or indirect, wholly-owned
Subsidiaries sells or otherwise transfers) in one transaction or a series of related transactions, assets, cash flow or earning
power aggregating to fifty percent (50%) or more of the assets, cash flow or earning power of the Company and its Subsidiaries
(taken as a whole) 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)) (any event described in clause (i), (ii) or
(iii) of this Section 13(a) following the Share Acquisition Date, a “Flip-over Event”), then,
and in each such case, proper provision shall be made so that: (A) each holder of a Right, except as provided in Section 7(e),
shall have the right to receive upon the exercise thereof at the Exercise Price in
accordance with the terms of this Agreement, in lieu of the number of shares of Common Stock otherwise receivable upon exercise,
such number of validly authorized and issued, fully paid, non-assessable and freely tradeable shares of Flip-over Stock, 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 Exercise Price by the number of shares of Common Stock for which
a Right is exercisable immediately prior to the first occurrence of a Flip-over Event (or, if a Flip-in Event has occurred prior to
the first occurrence of a Flip-over Event, multiplying the number of such shares of Common Stock for which a Right was exercisable
immediately prior to the first occurrence of a Flip-in Event by the Exercise Price in effect immediately prior to such first
occurrence) and (2) dividing that product (which, following the first occurrence of a Flip-over Event, shall be referred to as
the “Exercise Price” for each Right and for all purposes of this Agreement) by fifty percent (50%) of the Current Market
Price (determined pursuant to Section 11(d)) per share of the Flip-over Stock on the date of consummation of such
Flip-over Event; (B) such Flip-over Party shall thereafter be liable for, and shall assume, by virtue of such Flip-over 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 Flip-over Party, it being specifically intended that the provisions of Section 11 shall apply
only to such Flip-over Party following the first occurrence of a Flip-over Event; (D) such Flip-over Party shall take such
steps (including the reservation of a sufficient number of shares of Flip-over Stock) 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) shall be of no effect following the first occurrence of any Flip-over Event.

 

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(b)
“Flip-over Party” shall mean:

 

(i)
in the case of any transaction described in Section 13(a)(i) or (ii), (A) the Person (including the Company
as successor thereto or as the surviving entity) that is the issuer of any securities into which shares of Common Stock are converted
or exchanged in such share exchange, consolidation or merger, or, if there is more than one such issuer, the issuer whose common stock
(or similar equity interest) has the highest aggregate market value; and (B) if no securities are so issued, (1) the Person
that is the other party to such merger, if such Person survives the merger, or, if there is more than one such Person, the Person whose
common stock (or similar equity interest) has the highest aggregate market value, (2) if the Person that is the other party to such
share exchange, consolidation or merger does not survive the merger, the Person that does survive the merger (including the Company, if
it survives) or (3) the Person resulting from the consolidation; and

 

(ii)   in
the case of any transaction described in Section 13(a)(iii), the Person that is the party receiving the greatest portion
of the assets, cash flow 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, cash flow or earning power transferred pursuant
to such transaction or transactions or if the Person receiving the greatest portion of the assets, cash flow or earning power cannot
be determined, whichever such Person the common stock (or similar equity interest) of which has the highest aggregate market
value;

 

provided, however, that in any such case described in
the foregoing clause (i) or (ii) of this Section 13(b), (x) if the common stock (or similar equity interest) of
such Person is not at such time and has not been continuously over the preceding twelve (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 (or similar equity interest)
of which is and has been so registered, “Flip-over Party” shall refer to such other Person; (y) in case such Person is
a Subsidiary, directly or indirectly, of more than one Person, the common stock (or similar equity interest) of two or more of which are
and have been so registered, “Flip-over Party” shall refer to whichever of such Persons is the issuer of the common stock
(or similar equity interest) having the greatest aggregate market value; and (z) if the common stock (or similar equity interest)
of such Person is not at such time and has not been so registered and such Person is owned, directly or indirectly, by a joint venture
formed by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set forth in the foregoing clauses (x)
and (y) will apply to each of the chains of ownership having an interest in such joint venture as if such Person were a Subsidiary
of both or all of such joint ventures, and the Flip-over Parties in each such chain shall bear the obligations set forth in this Section 13
in the same ratio as their direct or indirect interests in such Person bear to the total of such interests.

 

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(c)
The Company shall not consummate any Flip-over Event unless the Flip-over Party has a sufficient number of authorized shares of
Flip-over Stock (or similar equity interest) which 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 Flip-over Party shall have executed
and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in Section 13(a) and Section 13(b)
and further providing that, as soon as practicable after the date of any exchange, consolidation, merger, sale or transfer of assets mentioned
in Section 13(a), the Flip-over Party, at its own expense, shall:

 

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

 

(ii) qualify
or register the Rights and take such action as may be required to ensure that any such acquisition of such securities purchasable
upon exercise of the Rights under blue sky laws of each jurisdiction, as may be necessary or appropriate;

 

(iii) deliver to
holders of the Rights historical financial statements for the Flip-over Party and each of its Affiliates that comply in all respects
with the requirements for registration on Form 10 under the Exchange Act;

 

(iv)
use its best efforts to obtain any and all necessary regulatory approvals as may be required with respect to the securities purchasable
upon exercise of the Rights;

 

    26

     

    

 

(v)
 use its best efforts, if the common stock of the Flip-over Party is listed or admitted to trading on the Nasdaq, the NYSE or on
another national securities exchange, to list or admit to trading (or continue the listing of) the Rights and the securities purchasable
upon exercise of the Rights on the Nasdaq, the NYSE or on such securities exchange, or if the securities of the Flip-over Party that may
be acquired upon exercise of the Rights are not listed or admitted to trading on the Nasdaq, the NYSE or on another national securities
exchange, to cause the Rights and the securities purchasable upon exercise of the Rights to be authorized for quotation on any other system
then in use; and

 

(vi)
obtain waivers of any rights of first refusal or preemptive rights in respect of the common stock of the Flip-over Party subject
to purchase upon exercise of outstanding Rights.

 

(d)
In case the Flip-over Party has, at any relevant time (including the time of the Flip-over Event or immediately thereafter), a
provision in any of its authorized securities or in its certificate or articles of incorporation, bylaws or other instrument governing
its affairs, or any other agreements or arrangements, which provision would have the effect of (i) causing such Flip-over Party to
issue (other than to holders of Rights pursuant to this Section 13), in connection with, or as a consequence of, the consummation
of a Flip-over Event, shares of common stock (or similar equity interests) of such Flip-over Party at less than the then Current Market
Price or securities exercisable for, or convertible into, common stock of such Flip-over Party at less than such then Current Market Price;
(ii) providing for any special payment, tax or similar provision in connection with the issuance of common stock of such Flip-over
Party pursuant to this Section 13 or (iii) otherwise eliminating or substantially diminishing the benefits intended to
be afforded by the Rights in connection with, or as a consequence of, a Flip-over Event, then in each such case, the Company may not consummate
any such Flip-over Event unless prior thereto, the Company and such Flip-over Party have executed and delivered to the Rights Agent a
supplemental agreement providing that the provision in question of such Flip-over Party has been cancelled, waived or amended, or that
the authorized securities have been redeemed, so that the applicable provision will have no effect in connection with, or as a consequence
of, the consummation of such Flip-over Event.

 

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

 

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

 

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

 

Section 14.
Fractional Rights and Fractional Shares.

 

(a)
The Company shall not be required to issue fractions of Rights, except prior to the Distribution Time as provided in Section 11,
or to distribute Rights Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid 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.

 

(b)
The Company shall not be required to issue fractions of shares of Common Stock, Common Stock Equivalents or other securities upon
exercise of the Rights or to distribute certificates which evidence fractional shares of Common Stock, Common Stock Equivalents or other
securities. In lieu of fractional shares of Common Stock, Common Stock Equivalents or other securities, the Company shall 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, Common Stock Equivalents or such other securities. For purposes of this Section 14(b),
the current market value of one share of Common Stock or other security (other than a Common Stock Equivalent) shall be the Closing Price
of one share of Common Stock or such other security, as applicable, for the Trading Day immediately prior to the date of such exercise,
and the current market value of a Common Stock Equivalent shall be deemed to equal the Closing Price of one share of Common Stock for
the Trading Day immediately prior to the date of such exercise.

 

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

 

(d)
Whenever a payment for fractional Rights or fractional shares is to be made by the Rights Agent under this Agreement, the Company
shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to
such payment and the prices 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 may rely upon such a certificate and has no duty with respect
to, and will not be deemed to have knowledge of, any payment for fractional Rights or fractional shares under any Section of this Agreement
relating to the payment of fractional Rights or fractional shares unless and until the Rights Agent has received such a certificate and
sufficient monies.

 

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Section 15. Rights
of Action. All rights of action in respect of this Agreement, other than rights of action vested
in the Rights Agent pursuant to the terms of this Agreement, are vested in the respective registered holders of the Rights Certificates
(and, prior to the Distribution Time, the registered holders of the Common Stock); and any registered holder of any Rights Certificate
(or, prior to the Distribution Time, any registered holder of shares of Common Stock), without the consent of the Rights Agent or of
the holder of any other Rights Certificate (or, prior to the Distribution Time, of the Common Stock), may, in such holder’s own
behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company
or any other Person to enforce, or otherwise act in respect of, such 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 holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any
breach of this Agreement by the Company and shall be entitled to specific performance of the obligations hereunder and injunctive relief
against actual or threatened violations of the obligations of the Company under this Agreement.

 

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

 

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

 

(b)
after the Distribution Time, the Rights Certificates shall be transferable only on the registry books of the Rights Agent if surrendered
at the 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 properly completed and duly executed, accompanied by a Signature Guarantee and such other documentation
as the Rights Agent may reasonably request;

 

(c)
subject to Section 6(a) and Section 7(f), the Company and the Rights Agent may deem and treat the Person
in whose name a Rights Certificate (or, prior to the Distribution Time, any associated Common Stock certificate) 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 any associated Common Stock certificates 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), shall be required to be affected by
any notice to the contrary; and

 

(d) notwithstanding
anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any 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, judgment or ruling (whether interlocutory or final) issued by a court of
competent jurisdiction or by a governmental, regulatory, self-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, the Company shall use commercially reasonable efforts to have any
such injunction, order, decree, judgment or ruling lifted or otherwise overturned as promptly as practicable.

 

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Section 17.
Rights Certificate Holder Not Deemed a Shareholder. No holder, as such, of any Rights Certificate shall be entitled
to vote, receive dividends or be deemed for any purpose to be the holder of the number of shares of Common Stock or any other securities
of the Company that may at any time be issuable upon the exercise of the Rights represented thereby, nor shall anything contained herein
or in any Rights Certificate be construed to confer upon the holder of any Rights Certificate, as such, any of the rights of a shareholder
of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except
as provided in Section 25), or to receive dividends or 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 in accordance with
a fee schedule to be mutually agreed upon and, from time to time, on demand of the Rights Agent, its reasonable and documented expenses
and counsel fees and disbursements and other disbursements incurred in the preparation, negotiation, execution, administration delivery
and amendment of this Agreement and the exercise and performance of its duties hereunder. The Company also covenants and agrees to indemnify
the Rights Agent for, and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement,
cost or expense (including the reasonable fees and expenses of legal counsel) that may be paid, incurred or suffered by it, or to which
it may become subject, without gross negligence, bad faith or willful misconduct on the part of the Rights Agent (which gross negligence,
bad faith, or willful misconduct must be determined by a final, non-appealable judgment of a court of competent jurisdiction) for any
action taken, suffered or omitted by the Rights Agent in connection with the execution, acceptance, administration, exercise and performance
of its duties under this Agreement, including the reasonable costs and expenses of defending against any claim of liability arising therefrom,
directly or indirectly, or of enforcing its rights under this Agreement.

 

(b)
The Rights Agent shall be authorized and protected and shall incur no liability for or in respect of any action taken, suffered
or omitted to be taken 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, instrument
of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, instruction, direction, consent, certificate, statement,
or other paper or document believed by it to be genuine and to be duly signed, executed and, where necessary, guaranteed, verified or
acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as set forth in Section 20. Unless
the Rights Agent receives notice thereof, the Rights Agent shall not be deemed to have knowledge of any event of which it was supposed
to receive notice thereof hereunder, and the Rights Agent shall be fully protected and shall incur no liability for failing to take action
in connection with any event unless and until it has received notice of such event in writing.

 

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(c)
 To the extent the Company is not also a party to an action, proceeding, suit or claim against the Rights Agent concerning this
Agreement or the performance by the Rights Agent of its duties hereunder, the Rights Agent shall promptly notify the Company in accordance
with Section 26 of the assertion of such action, proceeding, suit or claim against the Rights Agent promptly after the Rights
Agent has actual notice of such assertion of an action, proceeding, suit or claim or has been served with the summons or other first legal
process giving information as to the nature and basis of the action, proceeding, suit or claim; provided that the failure to provide
such notice promptly shall not affect the rights of the Rights Agent hereunder, except to the extent such failure actually prejudiced
the Company. The Company shall be entitled to participate, at its own expense, in the defense of any such action, proceeding, suit or
claim, and, if the Company so elects, the Company shall assume the defense of any such action, proceeding, suit or claim. The Rights Agent
agrees not to settle any litigation in connection with any action, proceeding, suit or claim with respect to which it may seek indemnification
from the Company without the prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed.

 

(d)
The provisions of this Section 18 and Section 20 shall survive the termination of this Agreement, the resignation,
replacement or removal of the Rights Agent and the exercise, termination and expiration of the Rights. The Rights Agent shall be liable
hereunder only for its and its employees’, directors’, officers’ and agents’ negligence, bad faith or willful
misconduct (which gross negligence, bad faith, or willful misconduct must be determined by a final, non-appealable judgment of a court
of competent jurisdiction). Notwithstanding anything in this Agreement to the contrary, in no event shall the Rights Agent be liable for
special, punitive, incidental, indirect or consequential loss or damage of any kind whatsoever, even if the Rights Agent has been advised
of the likelihood of such loss or damage and regardless of the form of the action. Notwithstanding anything to the contrary herein, any
liability of the Rights Agent under this Agreement shall be limited to the amount of fees (but not including any reimbursed costs) paid
by the Company to the Rights Agent during the twelve (12) months immediately preceding the event for which recovery from the Rights Agent
is being sought.

 

Section 19.
Merger or Consolidation or Change of Name of 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 stock transfer business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under
this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided, however,
that such Person would be eligible for appointment as a successor Rights Agent under Section 21. The purchase of all or
substantially all of the Rights Agent’s assets employed in the performance of the transfer agent activities shall be deemed a
merger or consolidation for purposes of this Section 19. In case at the time such successor Rights Agent succeeds to the agency
created by this Agreement, any of the Rights Certificates has been countersigned but not delivered, any such successor Rights Agent
may adopt the countersignature of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at
the time any of the Rights Certificates has not been countersigned, 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.

 

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(b)
In case at any time the name of the Rights Agent is changed, and at such time any of the Rights Certificates has been countersigned
but not delivered, the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned;
and in case, at that time, any of the Rights Certificates has not been countersigned, the Rights Agent may countersign such Rights Certificates
either in its prior name or in its changed name; 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 Rights Agent. The Rights Agent undertakes to perform only the duties and obligations expressly imposed by
this Agreement, and no implied duties or obligations shall be read into this Agreement against the Rights Agent. The Rights Agent shall
perform such duties and obligations, upon the following terms and conditions, by all of which the Company and the holders of Rights, by
their acceptance thereof, shall be bound:

 

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

 

(b)
Whenever in the performance of its duties under this Agreement the Rights Agent deems it necessary or desirable that any fact or
matter (including the identity of any Acquiring Person and the determination of the 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 Chief
Executive Officer, President, Chief Financial Officer, Secretary or Treasurer of the Company, or any other authorized officer of the Company,
and delivered to the Rights Agent; and such certificate shall be full authorization and protection to the Rights Agent, and the Rights
Agent shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it in the absence of bad faith
by it under the provisions of this Agreement in reliance upon such certificate. The Rights Agent shall have no duty to act without such
certificate as set forth in this Section 20(b).

 

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

 

    32

     

    

 

(d) 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 hereof by the Rights Agent) or in respect of the legality or validity or execution of any
Rights Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant
or condition contained in this Agreement or in any Rights Certificate; nor shall it be liable or responsible for any adjustment or
calculation required under Section 11, Section 13, Section 14 or Section 24 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 or calculation (except with respect to the exercise of Rights evidenced by
Rights Certificates subject to the terms and conditions hereof after actual notice of any such adjustment); nor shall it by any act
hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of Common Stock to
be issued pursuant to this Agreement or any Rights Certificate or as to whether any shares of Common Stock will, when so issued, be
validly authorized and issued, fully paid and non-assessable.

 

(e)
The Rights Agent shall not be liable or responsible for any failure of the Company to comply with any of its obligations relating
to any registration statement filed with the Securities and Exchange Commission or this Agreement, including obligations under applicable
regulation or law.

 

(f)       
The Rights Agent shall not have any duty or responsibility in the case of the receipt of any written demand from any holder of
Rights with respect to any action or default by the Company, including, without limiting the generality of the foregoing, any duty or
responsibility to initiate or attempt to initiate any proceedings at law or otherwise or to make any demand upon the Company.

 

(g)
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 or requested by the Rights Agent for
the carrying out or performing by the Rights Agent of the provisions of this Agreement.

 

(h)
The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder
from any person reasonably believed by the Rights Agent to be the Chief Executive Officer, President, Chief Financial Officer, Secretary
or Treasurer of the Company, or any other authorized officer of the Company, and to apply to such officers for advice or instructions
in connection with its duties under this Agreement, and such instructions shall provide full authorization and protection to the Rights
Agent and the Rights Agent shall not be liable for and it shall incur no liability for or in respect of any action taken, suffered or
omitted by it in the absence of bad faith in accordance with instructions of 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 or after which such action shall be taken or such omission
shall be effective. The Rights Agent shall be fully authorized and protected in relying upon the most recent instructions received from
any such officer and 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 in such application (which date shall not be less than five
Business Days after the date any such officer of the Company actually receives such application, unless any such officer has consented
in writing to an earlier date) unless, prior to taking any such action (or the effective date, in the case of an omission), the Rights
Agent has received written instructions in response to such application specifying the action to be taken or omitted.

 

    33

     

    

 

(i)
 The Rights Agent and any shareholder, 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 Rights Agent under this Agreement.
Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other Person.

 

(j)
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, omission, default,
neglect or misconduct of any such attorneys or agents or for any loss to the Company or any other Person resulting from any such act,
omission, default, neglect or misconduct; provided, however, that reasonable care was exercised in the selection and continued
employment thereof.

 

(k)
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 or powers if there are reasonable grounds
for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it.

 

(l)
If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to
the form of assignment or form of election to purchase, as the case may be, has either not been properly 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; provided, however, that Rights Agent shall not be liable for any delays arising
from the duties under this Section 20(l).

 

(m)
The Rights Agent shall have no responsibility to the Company, any holders of Rights or any other Person for interest or earnings
on any moneys held by the Rights Agent pursuant to this Agreement.

 

(n)
The Rights Agent shall not be required to take notice or be deemed to have notice of any event or condition hereunder, including
any event or condition that may require action by the Rights Agent, unless the Rights Agent shall be specifically notified in writing
of such event or condition by the Company, and all notices or other instruments required by this Agreement to be delivered to the Rights
Agent must, in order to be effective, be received by the Rights Agent as specified in Section 26 hereof, and in the absence of such notice
so delivered, the Rights Agent may conclusively assume no such event or condition exists.

 

(o)
The Rights Agent may rely on and be fully authorized and protected in acting or failing to act upon (i) any guaranty of signature
by an “eligible guarantor institution” that is a member or participant in the Securities Transfer Agents Medallion Program
or other comparable “signature guarantee program” or insurance program in addition to, or in substitution for, the foregoing;
or (ii) any law, act, regulation or any interpretation of the same.

 

(p)        In
the event the Rights Agent believes any ambiguity or uncertainty exists hereunder or in any notice, instruction, direction, request
or other communication, paper or document received by the Rights Agent hereunder, the Rights Agent may (upon notice to the Company
of such ambiguity or uncertainty), in its sole discretion, refrain from taking any action, and shall be fully protected and shall
not be liable in any way to Company, the holder of any Rights Certificate or any other Person for refraining from taking such
action, unless the Rights Agent receives written instructions signed by the Company which eliminates such ambiguity or uncertainty
to the satisfaction of Rights Agent.

 

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Section 21. Change of Rights
Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Agreement upon
thirty (30) days’ notice in writing to the Company and, if such resignation or discharge occurs after the Distribution
Time, to the holders of the Rights Certificates by first-class mail. In the event any 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. The Company may remove the Rights Agent or any successor Rights Agent upon no less than thirty
(30) days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to the
transfer agent of the Common Stock, by registered or certified mail, and, if such removal occurs after the Distribution Time, to the
holders of the Rights Certificates by first-class mail. If the Rights Agent resigns or is removed or otherwise becomes incapable of
acting, the Company shall appoint a successor to the Rights Agent. If the Company fails to make such appointment within a period of
thirty (30) days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity
by the resigning or incapacitated Rights Agent or by any 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 Person organized and doing business under the laws of the United
States or of any state of the United States (so long as such Person is authorized to do business as a banking institution in such
state), in good standing, which is authorized under such laws to exercise corporate trust, stock transfer or shareholder services
powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment as
Rights Agent a combined capital and surplus of at least $50,000,000 or (b) an Affiliate of such Person. 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 under this Agreement 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 reasonable assurance,
conveyance, act or deed necessary for the purpose, but such predecessor Rights Agent shall not be required to make any additional
expenditure or assume any additional liability in connection with the foregoing. Not later than the effective date of any such
appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and the transfer agent of the Common
Stock, and, if such appointment occurs after the Distribution Time, mail a notice thereof in writing to the registered holders of
the Rights Certificates. Failure to give any notice provided for in this Section 21 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.

 

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Section 22.
Issuance of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the
contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by its Board
to reflect any adjustment or change in the Exercise Price and the number or kind or class of shares or other securities or property purchasable
under the Rights Certificates made in accordance with this Agreement. In addition, in connection with the issuance or sale of shares of
Common Stock following the Distribution Time and prior to the redemption or expiration of the Rights, the Company (a) shall, with
respect to shares of Common Stock so issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement,
granted or awarded prior to the Distribution Time, 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 representing
an 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, (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 and (iii) no such Rights Certificate shall be issued pursuant to this Section 22 to any Acquiring Person or other
Person whose Rights would become null and void pursuant to Section 7(e).

 

Section 23.
Redemption and Termination.

 

(a)
The Board may, at its option, at any time prior to the earlier of (i) the Close of Business on the tenth (10th) day following
the Share Acquisition Date (or if the Share Acquisition Date shall have occurred prior to the Record Date, the Close of Business on the
tenth (10th) day following the Record Date) or (ii) the Final Expiration Time (such time being hereinafter referred to as the “Redemption
Period”), cause the Company to redeem all but not less than all of the then outstanding Rights at a redemption price of
$0.001 per Right, as such amount may be appropriately adjusted to reflect any stock split, reverse stock split, stock dividend or similar
transaction occurring after the date hereof (such redemption price being hereinafter referred to as the “Redemption Price”).
Notwithstanding anything contained in this Agreement to the contrary, the Rights shall not be exercisable after the first occurrence of
a Flip-in Event until such time as the Company’s right of redemption hereunder has expired. 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. The redemption 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.

 

(b) Immediately upon the
action of the Board ordering the redemption of the Rights pursuant to Section 23(a) or such later time as the Board may
establish for the effectiveness of such redemption, 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 holders
of Rights shall be to receive the Redemption Price for each Right so held. Within ten (10) days after the action of the Board
ordering the redemption of the Rights, the Company shall give notice of such redemption to the Rights Agent and the holders of the
then outstanding Rights by mailing such notice to the Rights Agent and to all such holders at each holder’s last address as it
appears upon the registry books of the Rights Agent or, prior to the Distribution Time, on the registry books of the transfer agent
for the Common Stock; provided, however, that the failure to give, or any defect in, such notice shall not affect the
validity of such redemption. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of redemption shall state the method by which the payment of the Redemption Price will
be made.

 

    36

     

    

 

Section 24.
Exchange.

 

(a)
The Board may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding
and exercisable Rights (which shall not include Rights that have become null and void pursuant to Section 7(e)) for shares
of Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately adjusted to reflect any stock split, reverse
stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred to
as the “Exchange Ratio”). Notwithstanding the foregoing, the Board shall not be empowered to effect such exchange
at any time after any Acquiring Person, together with all of its Related Persons, becomes the Beneficial Owner of fifty percent (50%)
or more of the Common Stock then outstanding. From and after the occurrence of a Flip-over Event, any rights that theretofore have not
been exchanged pursuant to this Section 24(a) shall thereafter be exercisable only in accordance with Section 13
and may not be exchanged pursuant to this Section 24(a). Before 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 some (as designated by the Board) of the shares
of Common Stock issuable pursuant to the exchange, and all or some (as designated by the Board) holders of Rights entitled to receive
shares pursuant to the exchange shall be entitled to receive such shares (and any dividends paid or distributions made thereon after the
date on which such shares are deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions
of the Trust Agreement.

 

(b) Immediately upon the
effectiveness of the action of the Board ordering the exchange of any Rights pursuant to Section 24(a) and without any
further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder
of any 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 (with prompt written notice thereof to the Rights
Agent) of any exchange. The Company promptly thereafter shall mail a notice of any such exchange to all of the holders of such
Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange shall state the
method by which the exchange of shares of Common Stock for Rights shall be effected and, in the event of any partial exchange, the
number of Rights which will be exchanged. Any partial exchange of Rights shall be effected pro rata based on the number of
Rights (other than Rights which have become null and void pursuant to Section 7(e)) held by each holder of Rights).
Prior to effecting any exchange and registering shares of Common Stock 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 the identity of the Beneficial Owners thereof and their Related Persons (or former
Beneficial Owners thereof and their Related Persons) as the Company reasonably requests in order to determine if such Rights are
null and void. If any Person fails to comply with such request, the Company shall be entitled conclusively to deem the Rights
formerly held by such Person to be null and void pursuant to Section 7(e). No failure to give, or any defect in, any
notice provided under this Section 24(b) shall affect the validity of any exchange. 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.

 

    37

     

    

 

(c)
Upon declaring an exchange pursuant to this Section 24, or as promptly as reasonably practicable thereafter, the Company
may implement such procedures as it deems appropriate, in its sole discretion, for the purpose of ensuring that the Common Stock (or such
other consideration) issuable upon an exchange pursuant to this Section 24 is not received by holders of Rights that have
become null and void pursuant to Section 7(e).

 

(d) In
any exchange pursuant to this Section 24, the Company, at its option, may substitute shares of Equivalent Common Stock for some or all shares of Common Stock exchangeable for Rights.

 

(e)
In the event that there are not sufficient shares of Common Stock issued but not outstanding or authorized but unissued to permit
any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such actions as may
be necessary to authorize additional shares of Common Stock for issuance upon exchange of the Rights.

 

(f)       
The Company shall not be required to issue fractions of shares of Common Stock or to distribute certificates which evidence fractional
shares of Common Stock. 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 one share of Common Stock. For the purposes of this Section 24(f), the current market
value of one share of Common Stock shall be the Closing Price of a share of Common Stock for the Trading Day immediately prior to the
date of exchange pursuant to this Section 24.

 

Section 25.
Notice of Certain Events.

 

(a) In the event the
Company proposes, at any time after the earlier of the Distribution Time or the Stock Acquisition Date, (i) to pay any dividend
payable in stock of any class or series to the holders of Common Stock or to make any other distribution to the holders of Common
Stock (other than a regular periodic cash dividend out of earnings or retained earnings of the Company), (ii) to offer to the
holders of Common Stock rights or warrants to subscribe for or to purchase any additional shares of Common Stock or shares of stock
of any class or any other securities, rights or options, (iii) to effect any reclassification of Common Stock (other than a
reclassification involving only the subdivision of outstanding shares of Common Stock), (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 which
complies with Section 11(o)), 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 fifty percent (50%) or more of the
assets, cash flow or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than
the Company or any of its Subsidiaries in one or more transactions each of which complies with Section 11(o)), 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 to each holder of a Rights Certificate, to the extent feasible and in accordance with Section 26, a
notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, distribution of rights
or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution or winding
up is to take place and the date of participation therein by the holders of the shares of Common Stock, if any such date is to be
fixed, and such notice shall be so given in the case of any action covered by the foregoing clause (i) or (ii) at least twenty
(20) days prior to the record date for determining holders of the shares of Common Stock for purposes of such action, and in
the case of any such other action, at least twenty (20) days prior to the date of the taking of such proposed action or the
date of participation therein by the holders of the shares of Common 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
Charter; provided further that no such notice is 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 earning power to, any other
Subsidiary of the Company.

 

    38

     

    

 

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

 

(c)
In case any Flip-over Event occurs, the Company shall, as soon as practicable thereafter, give to each registered holder of a Rights
Certificate, to the extent feasible, and to the Rights Agent in accordance with Section 26, a written notice of the occurrence
of such event, which notice shall describe such event and the consequences of such event to holders of Rights under Section 13(a).

 

Section 26.
Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of
any Rights Certificate to or on the Company shall be sufficiently given or made if in writing and sent by first-class or express United
States mail, FedEx or United Parcel Service or any other nationally recognized courier service, postage prepaid, (or by facsimile transmission
or email, if receipt is confirmed telephonically) addressed (until another address is filed in writing with the Rights Agent) as follows:

 

Nordstrom, Inc.

1617 Sixth Avenue

Seattle, Washington 98101

Attention: Ann Munson Steines

Email: Ann.Steines@nordstrom.com

with a copy (which shall not constitute notice) to:

Sidley Austin LLP

787 7th Avenue

New York, New York 10019

Attention: Kai H.E. Liekefett

Telephone: (212) 839-8744

Email: kliekefett@sidley.com

 

and

 

Sidley Austin LLP

1001 Page Mill Road, Building 1

Palo Alto, California 94304

Attention: Derek Zaba

Telephone: (650) 565-7131

Email: dzaba@sidley.com

 

Subject to Section 21, any notice or demand authorized
by this Agreement to be given or made by the Company or by the holder of any Rights Certificate to or on the Rights Agent shall be sufficiently
given or made if in writing and sent by first-class or express United States mail, FedEx or United Parcel Service or any other nationally
recognized courier service, postage prepaid, (or by facsimile transmission with receipt confirmation) addressed (until another address
is filed in writing with the Company) as follows:

 

Computershare Trust Company, N.A.

150
Royall Street

Canton, MA 02021

Attention: Client Services

Facsimile: (781) 575-4210

 

    39

     

    

 

Notices or demands authorized by this Agreement to be given or made
by the Company or the Rights Agent to the holder of any Rights Certificate (or, if prior to the Distribution Time, to the holder of shares
of Common Stock) shall be sufficiently given or made if in writing, sent by first-class or express United States mail, FedEx or United
Parcel Service or any other nationally recognized courier service, postage prepaid, addressed to such holder at the address of such holder
as shown on the registry books of the Company.

 

Section 27. Supplements
and Amendments. Except as 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, from time to time
supplement or amend this Agreement in any respect without the approval of any holders of Rights (a) prior to the Share
Acquisition Date, in any respect, and (b) on or after the Share Acquisition Date, (i) to make any changes that the Company
may deem necessary or desirable that do not materially adversely affect the interests of the holders of Rights (other than the
Acquiring Person, any Related Person thereof or any transferee of any Acquiring Person or any Related Person thereof), (ii) to
cure any ambiguity or (iii) to correct or supplement any provision contained herein that may be inconsistent with any other
provision herein, including any change in order to satisfy any applicable law, rule or regulation. 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
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. For the avoidance of doubt,
the Company shall be entitled to adopt and implement such procedures and arrangements (including with third parties) as it may deem
necessary or desirable to facilitate the exercise, exchange, trading, issuance or distribution of the Rights (and the shares of
Common Stock issuable and deliverable upon the exercise of the Rights) as contemplated hereby and to ensure that an Acquiring Person
and its Related Persons and transferees do not obtain the benefits thereof, and any amendment in respect of the foregoing shall be
deemed not to adversely affect the interests of the holders of Rights. No supplement or amendment to this Agreement shall be
effective unless duly executed by the Rights Agent and the Company. The Rights Agent shall duly execute and deliver any supplement
or amendment hereto requested by the Company in writing, provided that the Company has delivered to the Rights Agent a
certificate from the Chief Executive Officer, President, Chief Financial Officer, Secretary or Treasurer of the Company, or any
other authorized officer of the Company, that states that the proposed supplement or amendment complies with the terms of this
Agreement. Notwithstanding anything in this Agreement to the contrary, the Rights Agent may, but shall not be obligated to, enter
into any supplement or amendment that adversely affects the Rights Agent’s own rights, duties, immunities or obligations under
this Agreement. Prior to the Distribution Time, the interests of the holders of Rights shall be deemed coincident with the interests
of holders of shares of Common Stock.

 

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. Determination
and Action by the Board. The Board, or a duly authorized committee thereof, 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 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 whether or not to redeem the Rights, to exchange the Rights or to amend this Agreement). Without limiting
any of the rights and immunities of the Rights Agent, all such actions, calculations, interpretations and determinations (including
for purposes of the following clause (ii), all omissions with respect to the foregoing) which are done or made by the Board in
good faith shall (i) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other
Persons and (ii) not subject the Board to any liability to the holders of the Rights. The Rights Agent is entitled to always
assume the Board acted in good faith and shall be fully protected and incur no liability in reliance thereon when acting pursuant to
this Agreement.

 

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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 Time, registered holders of the
Common Stock) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive
benefit of the Company, the Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Time, registered
holders of the Common Stock).

 

Section 31.
Tax Compliance and Withholding. The Company hereby authorizes the Rights Agent to deduct from all payments disbursed
by the Rights Agent to the holders of the Rights, if applicable, the tax required to be withheld pursuant to the Internal Revenue Code
of 1986, as amended, or by any other applicable federal or state statutes in effect as of the date hereof or subsequently enacted, and
to make the necessary returns and payments of such tax to the relevant taxing authority. The Company will provide withholding and reporting
instructions in writing to the Rights Agent from time to time as relevant, and upon request of the Rights Agent. The Rights Agent shall
have no responsibilities with respect to tax withholding, reporting or payment except as specifically instructed by the Company.

 

Section 32.
Severability. If any term, provision, covenant or restriction of this Agreement or the Rights 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 and the Rights 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 or the Rights would adversely affect the purpose or effect of this Agreement, the
right of redemption set forth in Section 23 shall be reinstated and shall not expire until the Close of Business on the tenth
(10th) day following the date of such determination by the Board; provided further, however, that if such excluded
provision shall materially and adversely affect the rights, immunities, liabilities, duties or obligations of the Rights Agent, the Rights
Agent shall be entitled to resign immediately upon written notice to the Company and, if such resignation occurs after the Distribution
Time, to the holders of the Rights Certificates by first-class mail.

 

Section 33. Governing
Law; Submission to Jurisdiction. 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 Washington 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; provided that all
provisions regarding the rights, duties, liabilities and obligations of the Rights Agent shall be governed by and construed in
accordance with the laws of the State of Delaware applicable to contracts made and to be performed entirely within the State of
Delaware. The Company and each holder of Rights hereby irrevocably submits to the exclusive jurisdiction of the state courts of King
County, Washington, or, if such court lacks subject matter jurisdiction, the United States District Court for the Western District
of Washington, over any suit, action or proceeding arising out of or relating to this Agreement. The Company and each holder of
Rights acknowledge that the forum designated by this Section 33 has a reasonable relation to this Agreement and to such
Persons’ relationship with one another. The Company and each holder of Rights hereby waive, to the fullest extent permitted by
applicable law, any objection which they now or hereafter have to personal jurisdiction or to the laying of venue of any such suit,
action or proceeding brought in any court referred to in this Section 33. The Company and each holder of Rights
undertake not to commence any action subject to this Agreement in any forum other than the forum described in this Section 33.
The Company and each holder of Rights agree that, to the fullest extent permitted by applicable law, a final and non-appealable
judgment in any such suit, action or proceeding brought in any such court shall be conclusive and binding upon such Persons.

 

    41

     

    

 

Section 34.
Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all
purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. Delivery of
an executed signature page of the Agreement by facsimile or other customary means of electronic transmission (e.g., “pdf”)
shall be as effective as delivery of a manually executed counterpart hereof.

 

Section 35.
Descriptive Headings; Interpretation. 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. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase “without limitation.” Each
reference in this Agreement to a period of time following or after a specified date or event shall be calculated without including such
specified date or the day on which such specified event occurs.

 

Section 36.
Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent will not have any liability
for not performing, or a delay in the performance of, any act, duty, obligation or responsibility by reason of any occurrence beyond the
reasonable control of the Rights Agent (including acts of God, terrorist acts, shortage of supply, epidemics, pandemics, any act or provision
or present or future law or regulation or governmental authority, civil or military disobedience or disorder, riot, rebellion, insurrection,
fire, earthquake, storm, flood, strike, work stoppage, breakdowns, interruptions or malfunctions of computer facilities, loss of data
due to power failures, mechanical difficulties with information storage or retrieval systems, labor difficulties, war and civil unrest).

 

* * * * * * *

 

    42

     

    

 

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

 

	 	NORDSTROM, INC.
	 	 
	 	By:	/s/ Anne L. Bramman
	 	 	Name: Anne L. Bramman
	 	 	Title: Chief Financial Officer
	 	 	 
	 	COMPUTERSHARE TRUST COMPANY, N.A.
	 	 
	 	By:	/s/ David L. Adamson
	 	 	Name: David L. Adamson
	 	 	Title: Senior Vice President

 

Rights Agreement

 

    

    

    

 

Exhibit A

 

[Form of Rights Certificate]

 

Certificate No. R- __________
Rights

 

NOT EXERCISABLE AFTER SEPTEMBER 19, 2023 OR EARLIER IF REDEEMED OR
EXCHANGED BY THE COMPANY OR AN EARLIER “EXPIRATION TIME” (AS DEFINED IN THE RIGHTS AGREEMENT) OCCURS. AS SET FORTH IN THE
RIGHTS AGREEMENT, THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.001 PER RIGHT, AND TO EXCHANGE ON THE TERMS
SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN “ACQUIRING PERSON” OR ANY
“RELATED PERSON” OF AN “ACQUIRING PERSON” (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT
HOLDER OF SUCH RIGHTS SHALL BECOME NULL AND VOID.

 

[THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY
OWNED BY AN ACQUIRING PERSON OR A RELATED PERSON OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR A CERTAIN
TRANSFEREE OF AN ACQUIRING PERSON OR OF ANY SUCH RELATED PERSON. ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY
WILL BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(E) OF SUCH RIGHTS AGREEMENT.]*

 

 

 

	*	The portion of the legend in brackets shall be inserted only if applicable and shall replace
the preceding sentence.

 

    A-1

    

    

 

Rights
Certificate

 

NORDSTROM, INC.

 

This certifies that __________, or registered assigns,
is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions
and conditions of the Shareholder Rights Agreement, dated as of September 19, 2022 (as amended from time to time in accordance with
its terms, the “Rights Agreement”), by and between Nordstrom, Inc., a Washington corporation (the “Company”),
and Computershare Trust Company, N.A., the rights agent (and any successor rights agent, the “Rights Agent”),
to purchase from the Company at any time prior to 5:00 P.M. (New York City time) on September 19, 2023 at the office or offices
of the Rights Agent designated for such purpose, or its successors as Rights Agent, one share of common stock, no par value per share
(the “Common Stock”), of the Company, at an exercise price of $94.00 per Right (the “Exercise Price”),
upon presentation and surrender of this Rights Certificate with the Form of Election to Purchase and related Certificate properly completed
and duly executed. The number of Rights evidenced by this Rights Certificate (and the number of shares which may be purchased upon exercise
thereof) set forth above, and the Exercise Price per Right set forth above, are the number and Exercise Price as of September 30, 2022,
based on the Common 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, upon any exercise of Rights, a number of Rights be exercised so that only
whole shares of Common Stock will be issued. Capitalized terms used but not defined herein shall having the meanings specified in the
Rights Agreement.

 

Upon the occurrence of a Flip-in Event, if the
Rights evidenced by this Rights Certificate are Beneficially Owned by (i) an Acquiring Person or a Related Person of an Acquiring
Person, (ii) a transferee of any such Acquiring Person or Related Person or (iii) under certain circumstances specified in the
Rights Agreement, a transferee of a Person who, after such transfer, became an Acquiring Person or a Related Person of such 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 Flip-in Event.

 

As provided in the Rights Agreement, the Exercise
Price and the number and kind of shares of Common Stock or other securities which may be purchased upon the exercise of the Rights evidenced
by this Rights Certificate 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 office
of the Company and are also available upon written request to the Company.

 

    A-2

    

    

 

This Rights Certificate, with or without other
Rights Certificates, upon surrender at the principal 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 shares of Common Stock as the Rights evidenced by the 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 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, in each case at the option of the Company, be (i) redeemed by the Company at
a redemption price of $0.001 per Right or (ii) exchanged in whole or in part for shares of Common Stock. Immediately upon the action
of the Board of Directors of the Company authorizing redemption, the Rights shall terminate and the only right of the holders of Rights
shall be to receive the redemption price.

 

No fractional shares of Common Stock shall be issued
upon the exercise of any Right or Rights evidenced hereby, but in lieu thereof a cash payment shall be made, as provided in the Rights
Agreement.

 

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

 

* * * * * * *

 

    A-3

    

    

 

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

 

Dated as of _______ __, 20__

 

	 	 	 	NORDSTROM, INC.
	 	 	 	 
	 	 	 	By:	                                 
	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 	 
	Countersigned:	 	 
	 	 	 
	COMPUTERSHARE TRUST 	 	 
	COMPANY, N.A.	 	 
	 	 	 
	By:	                                 	 	 
	 	Name:	 	 
	 	Title:	 	 

 

    A-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)

 

this Rights Certificate, together with all right, title and interest
therein, and does hereby irrevocably constitute and appoint ____________ as attorney in fact, to transfer the within Rights Certificate
on the books of the within-named Company, with full power of substitution.

 

Dated: ______________, _______

 

_____________________________

Signature

 

Signature Medallion Guaranteed:

 

Signatures must be guaranteed by a member or participant in the Medallion
Signature Guarantee Program at a guarantee level acceptable to the Company’s transfer agent. Guarantees by a notary public are not
acceptable.

 

    A-5

    

    

 

CERTIFICATE

 

The undersigned hereby certifies by checking the
appropriate boxes that:

 

(1) this Rights Certificate [  ] is [  ] is not being
sold, assigned and transferred by or on behalf of a Person who is or was an Acquiring Person or a Related Person of an 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, it [  ] did [  ] did not acquire the Rights evidenced by this Rights Certificate from any Person who or which is, was
or subsequently became an Acquiring Person or a Related Person of an Acquiring Person.

 

Dated: ______________, _______

 

_____________________________

Signature

 

Signature Medallion Guaranteed:

 

Signatures must be guaranteed by a member or participant in the Medallion
Signature Guarantee Program at a guarantee level acceptable to the Company’s transfer agent. Guarantees by a notary public are not
acceptable.

 

    A-6

    

    

 

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.

 

In the event the certification set forth above
is not completed, the Company shall deem the Beneficial Owner of the Rights evidenced by this Rights Certificate to be an Acquiring Person
or a Related Person thereof (as such terms are defined in the Rights Agreement) and, in the case of an Assignment, shall affix a legend
to that effect on any Rights Certificates issued in exchange for this Rights Certificate.

 

    A-7

    

    

 

FORM OF ELECTION TO PURCHASE

 

(To be executed if holder desires to exercise Rights
represented by the Rights Certificate.)

 

TO: NORDSTROM, INC.

 

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

 

Please insert 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 insert social security

or other identifying number: ______________________

 

_________________________________________________________________

(Please print name and address)

 

_________________________________________________________________

 

Dated: ______________, _______

 

_____________________________

Signature

 

Signature Medallion Guaranteed:

 

Signatures must be guaranteed by a member or participant in the Medallion
Signature Guarantee Program at a guarantee level acceptable to the Company’s transfer agent. Guarantees by a notary public are not
acceptable.

 

    A-8

    

    

 

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 a Related Person of an 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, it [ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from any Person who or which is, was
or became an Acquiring Person or a Related Person of an Acquiring Person.

 

Dated: ______________, _______

 

_____________________________

Signature

 

Signature Medallion Guaranteed:

 

Signatures must be guaranteed by a member or participant in the Medallion
Signature Guarantee Program at a guarantee level acceptable to the Company’s transfer agent. Guarantees by a notary public are not
acceptable.

 

    A-9

    

    

 

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.

 

In the event the certification set forth above
is not completed, the Company shall deem the Beneficial Owner of the Rights evidenced by this Rights Certificate to be an Acquiring Person
or a Related Person thereof (as such terms are defined in the Rights Agreement), and the Election to Purchase will not be honored.

 

    A-10

    

    

 

Exhibit B

 

SUMMARY OF RIGHTS TO PURCHASE COMMON STOCK

 

On September 19, 2022, the board of directors
(the “Board”) of Nordstrom, Inc., a Washington corporation (the “Company”), adopted
a shareholder rights agreement and declared a dividend of one right (each, a “Right”) for each outstanding share
of Company common stock, no par value per share (“Common Stock”), to holders of record of Common Stock at the
close of business on September 30, 2022 (the “Record Date”). Each Right entitles its holder, subject to the
terms of the Rights Agreement (as defined below), to purchase from the Company one share of Common Stock at an exercise price of $94.00
per Right, subject to adjustment.

 

The description and terms of the Rights are set
forth in a shareholder rights agreement, dated as of September 19, 2022 (the “Rights Agreement”), between
the Company and Computershare Trust Company, N.A., as rights agent (and any successor rights agent, the “Rights Agent”).

 

The Rights Agreement should not interfere with
any merger or other business combination approved by the Board.

 

The Rights. The Rights will attach
to any shares of Common Stock that become outstanding after the Record Date and prior to the earlier of the Distribution Time (as defined
below) and the Expiration Time (as defined below), and in certain other circumstances described in the Rights Agreement.

 

Until the Distribution Time, the Rights are associated
with Common Stock and evidenced by Common Stock certificates or, in the case of uncertificated shares of Common Stock, the book-entry
account that evidences record ownership of such shares, which will contain a notation incorporating the Rights Agreement by reference,
and the Rights are transferable with and only with the underlying shares of Common Stock.

 

Until the Distribution Time, the surrender for
transfer of any shares of Common Stock will also constitute the transfer of the Rights associated with those shares. As soon as practicable
after the Distribution Time, separate rights certificates will be mailed to holders of record of Common Stock as of the Distribution Time.
From and after the Distribution Time, the separate rights certificates alone will represent the Rights.

 

The Rights are not exercisable until the Distribution
Time. Until a Right is exercised, its holder will have no rights as a shareholder of the Company, including the right to vote or to receive
dividends.

 

Separation and Distribution of Rights; Exercisability.
Subject to certain exceptions, the Rights become exercisable and trade separately from Common Stock only upon the “Distribution
Time,” which occurs upon the earlier of:

 

		●	the close of business on the tenth (10th) day after the “Share Acquisition Date” (which is defined as (a)
the first date of public announcement that any person or group has become an “Acquiring Person,” which is defined
as a person or group that, together with its affiliates and associates, beneficially
owns 10% or more of the outstanding shares of Common Stock (with certain exceptions, including those described below) or (b) such other
date, as determined by the Board, on which a person or group has become an Acquiring Person) or

 

    B-1

    

    

 

		●	the close of business on the tenth (10th) business day (or such later date as may be determined by the Board prior to such time as
any person or group becomes an Acquiring Person) after the commencement of a tender offer or exchange offer that, if consummated, would
result in a person or group becoming an Acquiring Person.

 

An Acquiring Person does not include:

 

		●	the Company or any subsidiary of the Company;

 

		●	any officer, director or employee of the Company or any subsidiary of the Company in his or her capacity as such;

 

		●	any employee benefit plan of the Company or of any subsidiary of the Company or any entity or trustee holding (or acting in a fiduciary
capacity in respect of) shares of capital stock of the Company for or pursuant to the terms of any such plan or for the purpose of funding
other employee benefits for employees of the Company or any subsidiary of the Company; or

 

		●	any person or group that, together with its affiliates and associates, as of immediately prior to
                                                                   the first public announcement of the adoption of the Rights Agreement, beneficially owns 10% or more of the outstanding shares of
                                                                   Common Stock so long as such person or group continues to beneficially own at least 10% of the outstanding shares of Common Stock
                                                                   and does not acquire shares of Common Stock (excluding as a result of any unilateral grant of any security by the Company, or
                                                                   through the exercise of any options, warrants, rights or similar interests (including restricted stock) granted by the Company to
                                                                   its directors, officers or employees) to beneficially own an amount equal to or greater than the greater of 10% and the sum of the
                                                                   lowest beneficial ownership of such person or group since the public announcement of the adoption of the Rights Agreement plus 0.1%
                                                                   of the then outstanding shares of Common Stock.

 

In addition, the Rights Agreement provides that
no person or group will become an Acquiring Person as a result of share purchases or issuances directly from the Company or through an
underwritten offering approved by the Board. Also, a person or group will not be an Acquiring Person if the Board determines that such
person or group has become an Acquiring Person inadvertently and such person or group as promptly as practicable divests a sufficient
number of shares so that such person or group would no longer be an Acquiring Person.

 

Certain synthetic interests in securities created
by derivative positions, whether or not such interests are considered to be ownership of the underlying Common Stock or are reportable
for purposes of Regulation 13D of the Securities Exchange Act of 1934, as amended, are treated as beneficial ownership of the number of
shares of Common Stock equivalent to the economic exposure created by the derivative position, to the extent actual shares of Common Stock
are directly or indirectly held by counterparties to the derivatives contracts.

 

Anne E. Gittinger, Bruce
A. Nordstrom, Erik B. Nordstrom, James F. Nordstrom and Peter E. Nordstrom and their respective affiliates and associates are deemed
to be a “group” purely for purposes of the Rights Agreement (even if such persons would not be considered to be part of
a group under Regulation 13D of the Securities Exchange Act of 1934, as amended).

 

    B-2

    

    

 

Expiration Time. The Rights will
expire on the earliest to occur of (a) the close of business on September 19, 2023 (the “Final Expiration Time”),
(b) the time at which the Rights are redeemed or exchanged by the Company (as described below) or (c) upon the closing of any merger or
other acquisition transaction involving the Company pursuant to a merger or other acquisition agreement that has been approved by the
Board before any person or group becomes an Acquiring Person (the earliest of (a), (b) and (c) being herein referred to as the “Expiration
Time”).

 

Flip-in Event. In the event that
any person or group (other than certain exempt persons) becomes an Acquiring Person (a “Flip-in Event”), each
holder of a Right (other than such Acquiring Person, any of its affiliates or associates or certain transferees of such Acquiring Person
or of any such affiliate or associate, whose Rights automatically become null and void) will have the right to receive, upon exercise,
Common Stock having a value equal to two times the exercise price of the Right.

 

For example, at an exercise price of $94.00 per
Right, each Right not owned by an Acquiring Person (or by certain related parties) following a Flip-in Event would entitle its holder
to purchase $188.00 worth of Common Stock for $94.00. Assuming that Common Stock had a per share value of $18.80 at that time, the holder
of each valid Right would be entitled to purchase 10 shares of Common Stock for $9.40.

 

Flip-over Event. In the event that,
at any time following the Share Acquisition Date, any of the following occurs (each, a “Flip-over Event”):

 

		●	the Company consolidates with, or merges with and into, any other entity, and the Company is not the continuing or surviving entity;

 

		●	any entity engages in a share exchange with or consolidates with, or merges with or into, the Company, and the Company is the continuing
or surviving entity and, in connection with such share exchange, consolidation or merger, all or part of the outstanding shares of Common
Stock are changed into or exchanged for stock or other securities of any other entity or cash or any other property; or

 

		●	the Company sells or otherwise transfers, in one transaction or a series of related transactions, fifty percent (50%) or more of the
Company’s assets, cash flow or earning power,

 

each holder of a Right (except Rights which previously have been voided
as described above) will have the right to receive, upon exercise, common stock of the acquiring company having a value equal to two times
the exercise price of the Right.

 

Anti-dilution Adjustments. The exercise
price payable, and the number of shares of Common Stock or other securities or property issuable, upon exercise of the Rights are subject
to adjustment from time to time to prevent dilution:

 

		●	in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Common Stock,

 

		●	if holders of the Common Stock are granted certain rights, options or warrants to subscribe for Common Stock or convertible securities
at less than the current market price of the Common Stock or

 

		●	upon the distribution to holders of the Common Stock of evidences of indebtedness or assets (excluding regular quarterly cash dividends)
or of subscription rights or warrants (other than those referred to above).

 

    B-3

    

    

 

With certain exceptions, no adjustment in the exercise
price will be required until cumulative adjustments amount to at least one percent (1%) of the exercise price. No fractional shares of
Common Stock will be issued and, in lieu thereof, an adjustment in cash will be made based on the market price of the Common Stock on
the last trading day prior to the date of exercise.

 

Redemption; Exchange. At any time
prior to the earlier of (i) the tenth (10th) day following the Share Acquisition Date or (ii) the Final Expiration Time, the Company may
redeem the Rights in whole, but not in part, at a price of $0.001 per Right (subject to adjustment and payable in cash, Common Stock or
other consideration deemed appropriate by the Board). Immediately upon the action of the Board authorizing any redemption or at a later
time as the Board may establish for the effectiveness of the redemption, the Rights will terminate and the only right of the holders of
Rights will be to receive the redemption price.

 

At any time before any Acquiring Person, together
with all of its affiliates and associates, becomes the beneficial owner of fifty percent (50%) or more of the outstanding shares of Common
Stock, the Company may exchange the Rights (other than Rights owned by the Acquiring Person, any of its affiliates or associates or certain
transferees of Acquiring Person or of any such affiliate or associate, whose Rights will have become null and void), in whole or in part,
at an exchange ratio of one share of Common Stock per Right (subject to adjustment).

 

Amendment of the Rights Agreement.
The Company and the Rights Agent may from time to time amend or supplement the Rights Agreement without the consent of the holders of
the Rights. However, on or after the Share Acquisition Date, no amendment can materially adversely affect the interests of the holders
of the Rights (other than the Acquiring Person, any of its affiliates or associates or certain transferees of Acquiring Person or of any
such affiliate or associate).

 

Miscellaneous.
While the distribution of the Rights will not be taxable to shareholders or to the Company, shareholders may, depending upon the
circumstances, recognize taxable income in the event that the Rights become exercisable for Common Stock (or other consideration) or
for common stock of the acquiring company or in the event of the redemption of the Rights as described above.

 

Additional Information. A copy of
the Rights Agreement has been filed with the Securities and Exchange Commission as an exhibit to a registration statement on Form 8-A
and a current report on Form 8-K. A copy of the Rights Agreement is also available free of charge from the Company.

 

* * * * *

 

This description
of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is incorporated
herein by reference.

 

 

B-4

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