Document:

EX-10.1

 Exhibit 10.1 

Separation Agreement and Mutual Release 

THIS SEPARATION AGREEMENT AND MUTUAL RELEASE (the “Agreement”) is made as of this 31st day of October, 2018, by and among Atlas Energy Group, LLC (the “Company”) and each entity directly or indirectly controlled by the Company (collectively, the “Atlas
Subsidiaries”) and Daniel C. Herz (“Executive”). Executive, the Company, and the Atlas Subsidiaries are referred to herein individually as “Party” and collectively as “Parties”. 

WHEREAS, the Executive formerly provided services to the Company as President of the Company and also held various positions at the Atlas
Subsidiaries, pursuant to the terms of the Employment Agreement, dated as of September 4, 2015 (the “Employment Agreement”) by and among Executive, the Company and Atlas Resource Partners, L.P.; 

WHEREAS, Executive, has decided to voluntarily resign and terminate his position with the Company; 

WHEREAS, the Employment Agreement provides for certain severance payments and health and welfare benefits in the event that Executive resigns
for Good Reason (as defined in the Employment Agreement) and Executive has agreed to forgo any such severance payments and benefits that are not expressly provided for herein; and 

WHEREAS, in connection with the resignation of Executive’s employment, the Parties have agreed to the resolution of any and all potential
disputes between them as provided herein. 
 NOW, THEREFORE, in consideration of the promises and of the releases, representations,
covenants and obligations contained herein, the Parties hereto agree as follows: 
 1.    Termination of Employment
and Employment Agreement. 
 1.1    Executive’s employment with the Company and Atlas Subsidiaries shall
terminate effective as of October 31, 2018 the (“Termination Date”). Executive hereby resigns and is terminated, effective as of the Termination Date, as an officer, executive and/or employee, as the case may be, of the Company
and the Atlas Subsidiaries. Executive further agrees and recognizes that he has permanently and irrevocably severed his employment relationship with the Company and Atlas Subsidiaries, and that the Company and Atlas Subsidiaries have no obligation
to employ him in the future. 
 1.2    Within a reasonable time after the Termination Date, the Company shall pay to
Executive any portion of base salary that has been earned through the Termination Date but not paid to Executive as of the Termination Date. In addition, Executive shall be entitled to any benefits accrued and earned in accordance with the terms of
any applicable benefit plans and programs of the Company. 
 1.3    Effective as of the Termination Date, the Employment
Agreement shall terminate automatically and be of no further force or effect; provided, however, that Section 7.3(b) (COBRA), 8.1 (Confidentiality), 8.4 (Equitable Relief), 9 (Golden Parachute Excise Tax Modified Cutback), 10
(Representations) and 25 (Section 409A) (the “Surviving Provisions”) of the Employment Agreement shall survive the termination of the Employment Agreement and are incorporated by reference herein. 

 2.    Company Benefits. 

2.1    Executive’s eligibility to participate in the Company’s employee benefit plans and programs, such as the
Company’s 401K plan, short and long term disability insurance, life insurance, equity plan and paid time off policy (as applicable), is governed by the terms of the plans and programs, and will cease in accordance with those terms (generally
concurrent with the Termination Date). Executive acknowledges that if Executive participates in the Company’s group health insurance, Executive’s health insurance benefits will cease on the last day of the month in which the Termination
Date falls, subject to Executive’s right to continue health insurance at Executive’s expense for the Executive and any eligible dependents under COBRA, subject to the requirements, conditions and limitations of COBRA and the Company’s
health insurance plans, should Executive be eligible to and make a timely election to do so. Notwithstanding anything to the contrary herein, nothing in this Agreement shall alter the terms of any employee benefit plans offered to Executive by the
Company. 
 2.2    Any equity-based compensation granted to Executive and unused and outstanding as of the Termination
Date shall be cancelled effective as of the Termination Date. 
 3.    No Severance Payments or Other
Compensation. 
 3.1    Except as expressly provided in this Agreement, Executive agrees to forgo any severance
payments, benefits or other compensation that Executive may be entitled to under the Employment Agreement. 

3.2    Executive acknowledges and agrees that, other than the compensation and benefits specifically provided for in this
Agreement (including without limitation those preserved and provided in Sections 2.1, 5.2 and 7 of this Agreement), the Company and Atlas Subsidiaries have paid or provided to Executive all salary, wages, bonuses, accrued vacation/paid time off,
leave, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, acceleration, and any and all other benefits and compensation due to Executive, and
neither the Company or any other Company Releasor (as defined in Section [4.1] below) owes Executive any further compensation or other benefits, including, but not limited to, under the Employment Agreement. 

4.    Company Release. 

4.1    In consideration of the execution by Executive of this Agreement, each of the Company and Atlas Subsidiaries, each
on behalf of itself and all persons authorized under any corporate organizational documents to act on its behalf, (collectively, the “Company Releasors”), does hereby voluntarily, knowingly and intentionally REMISE, RELEASE,
AND FOREVER DISCHARGE Executive and Executive’s heirs, executors, administrators, successors and assigns from any and all causes of action, suits, debts, claims, liabilities, damages and demands whatsoever at law or in equity (collectively,
“Claims”) ever had, now has or may hereafter claim to have by reason of any matter, cause or thing whatsoever: (i) arising from the beginning of time through the date upon which the Company, on behalf of itself, and on behalf
of the Atlas Subsidiaries, sign this Agreement, including but not limited to (A) any such Claims relating in any way 

 
to Executive’s employment with any Company Releasors, and (B) any such Claims arising under any federal, state, local or foreign statute or regulation or common law that may be legally
waived and released; (ii) arising out of or relating to the termination or resignation of Executive’s employment with the any Company Releasor; (iii) arising under the Company’s corporate organizational documents; or
(iv) arising under or relating to any policy, agreement, plan, understanding or promise, written or oral, formal or informal, between any Company Releasor and Executive including, but not limited to, the Employment Agreement (other than any
Claims arising under the Surviving Provisions of the Employment Agreement) and any obligations under Section 8.2 (Noncompetition) of the Employment Agreement; provided however, that the Company release contained in Section 4
of this Agreement shall not take effect unless and until (x) the review and revocation period set forth in Section 12 of this Agreement has run, (y) Executive has not exercised his right of revocation prior to the expiration of such
revocation period and (z) the Executive release contained in Section 5 of this Agreement is valid and binding. It is further understood and agreed that, notwithstanding any statute or common law principle, and for the purpose of
implementing a full and complete release and discharge of all claims except as set forth in Section 4.2, each of the Company Releasors expressly acknowledges that this release is intended to include in its effect, without limitation, Claims
which the Company Releasor does not know or suspect to exist in the Company Releasor’s favor at the time of execution hereof, and that the release agreed upon herein contemplates the full extinguishment of the Company Releasors’ Claims
except for the Claims set forth in Section 4.2). 
 4.2    Notwithstanding anything contained herein, this
Agreement shall not extend to or affect, or constitute a release or discharge of (i) each Company Releasor’s right to enforce, or bring any Claim for breach of, this Agreement; (ii) each Company Releasor’s right to bring any
Claims in respect of any fraudulent or criminal behavior on the part of the Executive; or (iii) each Company Releasor’s right to bring any Claim that it is not permitted by applicable law to release with respect to Executive. 

4.3    The Company Releasors further agree that they will not disparage or subvert Executive, or make any statement
reflecting negatively on Executive, including, but not limited to, any matters relating to the operation or management of any Company Releasor by Executive, Executive’s employment and the termination of his employment, irrespective of the
truthfulness or falsity of such statement. 
 5.    Executive Release and Waiver. 

5.1    Subject in all respects to Section 5.2, in consideration of the execution by the Company of this Agreement,
Executive, on behalf of himself and his heirs, executors, administrators, successors and assigns, does hereby voluntarily, knowingly and intentionally REMISE, RELEASE, AND FOREVER DISCHARGE the Company, Atlas Subsidiaries, and each of its managers,
employees, officers, directors and agents (the “Company Releasees”) from any and all Claims, which Executive or Executive’s heirs, executors, administrators, successors or assigns ever had, now has or may hereafter claim
to have by reason of any matter, cause or thing whatsoever: (i) arising from the beginning of time through the date upon which Executive signs this Agreement including, but not limited to (A) any such Claims relating in any way to
Executive’s employment with or participation as a board member of any Company Releasee, and (B) any such Claims arising under any federal, state, local or foreign statute or regulation or common law, including, without limitation, Title
VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (“ADEA”), the Older Workers Benefit Protection Act, the Americans with Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, the
Civil Rights Act of 1991, the Equal Pay Act, the 

 
Immigration and Reform Control Act, the Uniformed Services Employment and Re-Employment Act, the Rehabilitation Act of 1973 and Executive Order 11246, and
any other federal, state, local or foreign law (statutory, regulatory, common law, or otherwise) that may be legally waived and released; (ii) arising out of or relating to the termination of Executive’s employment with the any Company
Releasee; or (iii) arising under or relating to any policy, agreement, plan, understanding or promise, written or oral, formal or informal, between any Company Releasee and Executive including, but not limited to, the Employment Agreement. It
is further understood and agreed that, notwithstanding any statute or common law principle, and for the purpose of implementing a full and complete release and discharge of all claims except as set forth in Section 5.2, Executive expressly
acknowledges that this release is intended to include in its effect, without limitation, Claims which Executive does not know or suspect to exist in Executive’s favor at the time of execution hereof, and that the release agreed upon herein
contemplates the full extinguishment of Executive’s Claims except for the Excluded Claims (as defined in Section 5.2). 

5.2    Notwithstanding anything to the contrary herein, this Agreement shall not in any way release or discharge:
(i) Executive’s right to bring any Claim that cannot be waived under applicable law; (ii) Executive’s right to enforce, or bring any Claim for breach of, this Agreement; or (iii) Executive’s right to bring any Claim for
indemnification or demand for advancement under any corporate organizational document, Executive’s Employment Agreement, applicable directors and officers liability insurance policy (or demand for proceeds under any such policy) or applicable
state or federal law (the “Excluded Claims”). 
 5.3    Subject to Section 6 below, Executive
further agrees that he will not disparage or subvert any Company Releasee, or make any statement reflecting negatively on any Company Releasee, including, but not limited to, any matters relating to the operation or management of such Company
Releasee, Executive’s employment and the termination of his employment, irrespective of the truthfulness or falsity of such statement. 

5.4    Executive understands and agrees that the releases and agreements provided in this Agreement are being provided to
him in consideration for his acceptance and execution of, and in reliance upon his representations and agreements in, this Agreement. 

5.5    Executive represents that, to the best of his knowledge, he does not presently have in his possession any
confidential records and business documents, whether on computer or hard copy, and confidential other materials (including, but not limited to, computer disks and tapes, computer programs and software, office keys, correspondence, files, customer
lists, technical information, customer information, pricing information, business strategies and plans, sales records, and all copies thereof) (collectively, the “Corporate Records”) provided by any Company Releasee or obtained as a
result of his prior employment with any Company Releasee, or created by Executive while employed by or rendering services to any Company Releasee. Executive acknowledges that, except as otherwise provided, all such Corporate Records are the property
of the Company Releasee. If Executive discovers any Corporate Records in his possession, he will delete, destroy or return all copies of any such Corporate Records. 

6.    Permitted Disclosures. 

6.1    Nothing in this Agreement shall prohibit or restrict Executive from: (a) making any voluntary disclosure of
information concerning possible violations of law to any governmental agency or 

 
legislative body, or any self-regulatory organization, in each case, without advance notice to any Company Releasee; (b) making any disclosure of information required by law;
(c) testifying or otherwise assisting in any investigation or proceeding brought by, any federal, state or local regulatory or law enforcement agency or legislative body, any self-regulatory organization, or the Company; or (d) testifying,
participating in, or otherwise assisting in a proceeding relating to an alleged violation of any federal, state, or municipal law relating to fraud, or any rule or regulation of the Securities and Exchange Commission or any self-regulatory
organization. 
 6.2     Pursuant to 18 U.S.C. § 1833(b), Executive understands and the Company and Atlas
Subsidiaries agree that Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret of the Company, their subsidiaries, affiliates or joint ventures, or any of their
respective predecessors, successors or assigns, that (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or Executive’s attorney and (ii) solely for the purpose of
reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. Executive understands and the Company and Atlas Subsidiaries agree that if
Executive files a lawsuit for retaliation by the Company Releasees for reporting a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and use the trade secret information in the court proceeding if
Executive (x) files any document containing the trade secret under seal, and (y) does not disclose the trade secret, except pursuant to court order. Nothing in this Agreement, or any other agreement that Executive has with the Company, its
subsidiaries or affiliates, or any of their respective successors, is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. 

7.    Attorneys’ Fees and Costs. If a legal action or other proceeding is brought for
enforcement of this Agreement because of an alleged dispute, breach, or misrepresentation in connection with any of the provisions hereof, the successful or prevailing party will be entitled to recover reasonable attorney’s fees and costs
incurred, both before and after judgment, in addition to any other relief to which they may be entitled; provided, however, the foregoing shall not apply to any challenge to the validity of the release of ADEA Claims set forth in
Section 5.1, it being understood that Executive would not be entitled to any damages or other relief under ADEA unless such release of ADEA Claims was deemed to be invalid. 

8.    No Admissions. Nothing herein shall be deemed to constitute an admission of wrongdoing by any Party. Neither
this Agreement nor any of its terms may be used as an admission or introduced as evidence as to any issue of law or fact in any proceeding, suit or action, other than an action to enforce this Agreement. 

9.    Governing Law. This Agreement and the obligations of the parties hereunder shall be construed, interpreted
and enforced in accordance with the laws of the State of Delaware. 
 10.    Executive Acknowledgments. Executive
certifies and acknowledges as follows: 
 10.1    That he has read the terms of this Agreement, and that he understands
its terms and effects, including the fact that he has agreed to the release of Claims set forth in Section 5 of this Agreement; 

10.2    That he has signed this Agreement voluntarily and knowingly in exchange for the consideration described herein,
which he acknowledges is adequate and satisfactory to him; 

 10.3    That he has been and is hereby advised in writing to consult
with an attorney prior to signing this Agreement; 
 10.4    That he does not waive rights or claims that may arise
after the date this Agreement is executed; and 
 10.5    That the Company has provided him with a period of 21 days
within which to consider this Agreement, and that Executive has signed on the date indicated below after concluding that this Agreement is satisfactory to him. Executive may choose to sign this Agreement sooner; provided, however, that Executive
shall not sign this Agreement prior to the Termination Date. Executive agrees that any modifications, material or otherwise, made to this Agreement after the date the Company provided this Agreement to Executive do not restart or affect in any
manner the original 21day consideration period. 
 11.    Company Acknowledgements. The Company, for itself and
on behalf of the Atlas Subsidiaries, certifies and acknowledges as follows: 
 11.1    That it has read the terms of
this Agreement, and understands its terms and effects, including the fact that they have agreed to the release of Claims set forth in Section 4]of this Agreement; 

11.2    That it has signed this Agreement voluntarily and knowingly in exchange for the consideration described herein,
which they acknowledge is adequate and satisfactory; and 
 11.3    That it has been and is hereby advised in writing to
consult with an attorney prior to signing this Agreement. 
 11.4    The execution, delivery and performance of this
Agreement by the Company has been approved by the Board of Directors of the Company and the Company represents that it is authorized to enter into this Agreement on behalf of the Atlas Subsidiaries. 

12.    Period of Review and Revocation of Rights. Executive acknowledges that this Agreement may be revoked by him
within seven days after Executive’s execution, and it shall not become effective until the expiration of such seven-day revocation period. If Executive chooses to revoke the Agreement, the revocation must
be in writing and delivered to Joel S. Heiser, General Counsel, Atlas Energy Group, LLC, 3500 Massillon Road, Uniontown, Ohio 44685. In the event of a timely revocation by Executive, this Agreement will be deemed null and void the Company will have
no obligations hereunder. Provided that Executive does not revoke this Agreement, this Agreement shall become effective on the eighth calendar day following the date of Executive’s execution of this Agreement. 

13.    Severability. If any term or provision of this Agreement is invalid, illegal or incapable of being enforced
by any applicable law or public policy, all other conditions and provisions of this Agreement shall nonetheless remain in full force and effect so long as the economic and legal substance of the transactions contemplated by this Agreement is not
affected in any manner materially adverse to any Party. Upon any such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as
to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible. 

 14.    Third Party Beneficiaries. 

14.1    Each of the Company Releasees and Executive’s heirs is a third party beneficiary to this Agreement. Each of
the Company Releasees has the right to enforce any of the provisions of this Agreement applicable to such Company Releasee and each of Executive’s heirs has the right to enforce any provision of this Agreement applicable to Executive’s
heirs. 
 14.2    Except as set forth in Section 14.1, the Parties agree there are no other third party
beneficiaries of this Agreement. 
 15.    Amendments. This Agreement may not be amended orally, but only in
writing signed by the Executive and the Company. 
 16.    Headings and References. The headings of this
Agreement are inserted for convenience only and neither constitute a part of this Agreement nor affect in any way the meaning or interpretation of this Agreement. When a reference in this Agreement is made to a Section, such reference shall be to a
Section of this Agreement unless otherwise indicated. 
 17.    Counterparts. This Agreement may be executed in
counterparts (including via portable document format or “PDF”), each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument and shall become effective when one or more
counterparts have been signed by each of the Parties and delivered to the other Party. 
 18.    Entire
Agreement. This Agreement sets forth the entire agreement of the Parties hereto in respect of the subject matters specifically addressed herein, including but not limited to eligibility for and payment of severance or separation benefits, and,
except as expressly stated herein, supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any Party hereto with
respect to such subject matter. 

 Intending to be legally bound hereby, the Company, Atlas Subsidiaries and Executive have
executed the foregoing Separation Agreement and Mutual Release this 31st day of October, 2018. 
  

			
	ATLAS ENEGY GROUP, LLC, on behalf of itself and the Atlas Subsidiaries
		
	By:	 	 /s/ Jeffrey Slotterback

		 	Name: Jeffrey Slotterback
		 	Title: Chief Financial Officer
	
	EXECUTIVE
		
	By:	 	 /s/ Daniel C. Herz

		 	Name: Daniel C. HerzExhibit 4.1

 

TAX ASSET PROTECTION RIGHTS AGREEMENT

 

dated as of November 5, 2018

 

between

 

ACETO CORPORATION

 

and

 

AMERICAN STOCK TRANSFER & TRUST
COMPANY, LLC

 

as Rights Agent

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	PAGES
	 	 	 
	SECTION 1.	Certain Definitions	2
	 	 	 
	SECTION 2.	Appointment of Rights Agent	11
	 	 	 
	SECTION 3.	Issue of Rights and Right Certificates	11
	 	 	 
	SECTION 4.	Form of Right Certificates	14
	 	 	 
	SECTION 5.	Execution, Countersignature and Registration	14
	 	 	 
	SECTION 6.	Transfer, Split-Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates; Uncertificated Rights	15
	 	 	 
	SECTION 7.	Exercise of Rights; Expiration Date of Rights	15
	 	 	 
	SECTION 8.	Cancellation and Destruction of Right Certificates	17
	 	 	 
	SECTION 9.	Reservation and Availability of Preferred Shares	18
	 	 	 
	SECTION 10.	Record Date	19
	 	 	 
	SECTION 11.	Adjustments in Rights After There Is an Acquiring Person; Exchange of Rights for Shares; Business Combinations	19
	 	 	 
	SECTION 12.	Certain Adjustments	25
	 	 	 
	SECTION 13.	Certificate of Adjustment	26
	 	 	 
	SECTION 14.	Additional Covenants	26
	 	 	 
	SECTION 15.	Fractional Rights and Fractional Shares	27
	 	 	 
	SECTION 16.	Rights of Action	28
	 	 	 
	SECTION 17.	Transfer and Ownership of Rights and Right Certificates	28
	 	 	 
	SECTION 18.	Right Certificate Holder Not Deemed a Stockholder	29
	 	 	 
	SECTION 19.	Concerning the Rights Agent	29
	 	 	 
	SECTION 20.	Merger or Consolidation or Change of Name of Rights Agent	30
	 	 	 
	SECTION 21.	Duties of Rights Agent	30
	 	 	 
	SECTION 22.	Change of Rights Agent	34
	 	 	 
	SECTION 23.	Issuance of Additional Rights and Right Certificates	35
	 	 	 
	SECTION 24.	Redemption and Termination	35
	 	 	 
	SECTION 25.	Notices	36
	 	 	 
	SECTION 26.	Supplements and Amendments	37
	 	 	 
	SECTION 27.	Successors	37
	 	 	 
	SECTION 28.	Benefits of Rights Agreement; Determinations and Actions by the Board, etc	37

 

    -i-

     

    

  

	SECTION 29.	Severability	38
	 	 	 
	SECTION 30.	Governing Law	38
	 	 	 
	SECTION 31.	Counterparts; Effectiveness	39
	 	 	 
	SECTION 32.	Descriptive Headings	39
	 	 	 
	SECTION 33.	Force Majeure	39
	 	 	 
	SECTION 34.	Process to Seek Exemption	39
	 	 	 
	SECTION 35.	Tax Benefits Review	40
	 	 	 
	SECTION 36.	Confidentiality	40
	 	 	 
	SECTION 37.	Customer Identification Program	40

 

Exhibits

 

	Exhibit A:	Certificate of Amendment of Restated Certificate of Incorporation establishing the Preferred Shares
	Exhibit B:	Form of Right Certificate
	Exhibit C:	Summary of Rights

 

    -ii-

     

    

 

TAX ASSET PROTECTION
RIGHTS AGREEMENT

 

TAX ASSET PROTECTION
RIGHTS AGREEMENT dated as of November 5, 2018 (this “Agreement”), between ACETO CORPORATION, a New York corporation
(the “Company”), and AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, a New York limited liability trust company,
as Rights Agent (the “Rights Agent”).

 

RECITALS

 

WHEREAS, (i) the
Company has generated NOLs and other Tax Benefits (as such terms are hereinafter defined) for United States Federal income tax
purposes; (ii) such NOLs and other Tax Benefits may potentially provide valuable tax benefits to the Company; (iii) the
Company desires to avoid an “ownership change” within the meaning of Section 382 and the Treasury Regulations (as such
terms are hereinafter defined) promulgated thereunder, and thereby preserve the ability to utilize fully such NOLs and other Tax
Benefits; and (iv) in furtherance of such objectives, the Company desires to enter into this Agreement; and

 

WHEREAS, the Board
of Directors of the Company (the “Board”) authorized and declared a dividend distribution of one right (a “Right”)
in respect of each share of Common Stock, par value $0.01 per share, of the Company (the “Common Stock”) outstanding
at the Close of Business (as hereinafter defined) on November 15, 2018 (the “Record Date”), and further authorized
and directed the issuance of one Right (as such number may hereafter be adjusted pursuant to the provisions of this Agreement)
with respect to each share of Common Stock that shall become outstanding (whether originally issued or delivered from the Company’s
treasury) between the Record Date and the earliest of the Distribution Date, the Redemption Date or the Expiration Date (as such
terms are hereinafter defined); provided, however, that Rights may be issued with respect to shares of Common Stock
that shall become outstanding after the Distribution Date (whether originally issued or delivered from the Company’s treasury)
and prior to the earlier of the Redemption Date or the Expiration Date only in accordance with the provisions of Section 23.
Each Right shall initially represent the right to purchase one one-thousandth (1/1,000th) of a share of Series A Participating
Cumulative Preferred Stock, par value $2.50 per share, of the Company (the “Preferred Shares”), having the powers,
rights and preferences set forth in the Certificate of Amendment attached hereto as Exhibit A.

 

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 who or which, alone or together with all Affiliates and Associates of such Person, shall
be the Beneficial Owner of 4.99% or more of the Common Shares then outstanding, but not including (a) the Company, any Subsidiary
of the Company, any employee benefit or compensation plan of the Company or of any of its Subsidiaries or any Person organized,
appointed or established by the Company and holding Common Shares for or pursuant to the terms of any such employee benefit or
compensation plan, (b) any Grandfathered Person, unless such Grandfathered Person becomes the Beneficial Owner of a percentage
of Common Shares then outstanding exceeding such Grandfathered Person’s Grandfathered Percentage by 0.5% or more of the outstanding
Common Shares or (c) any Exempt Person; provided, however, that no Person who or which, alone or together with all
Affiliates and Associates of such Person, has become and is the Beneficial Owner of 4.99% or more (or in the case of a Grandfathered
Person, has exceeded and is exceeding such Grandfathered Person’s Grandfathered Percentage by 0.5% or more) of the Common
Shares at the time outstanding, will be deemed to have become an Acquiring Person solely as the result of (i) a change in the aggregate
number of Common Shares outstanding since the last date on which such Person acquired Beneficial Ownership of any Common Shares,
including pursuant to a dividend or distribution of shares by the Company made on a pro rata basis to all holders of Common Shares
or the issuance of shares by the Company pursuant to a split or subdivision of the outstanding Common Shares; (ii) equity compensation
awards granted to such Person by the Company or as a result of an adjustment to the number of Common Shares represented by such
equity compensation award pursuant to the terms thereof, unless and until such time, in the case of clause (i) and clause (ii),
as such Person or one or more of its Affiliates or Associates thereafter acquires Beneficial Ownership of one additional Common
Share (other than any Common Shares acquired as described in clause (i) or (ii) above); or (iii) the acquisition by such Person
or one or more of its Affiliates or Associates of Beneficial Ownership of additional Common Shares if the Board determines that
such acquisition was made in good faith without the knowledge by such Person or one or more of its Affiliates or Associates that
such Person would thereby become an Acquiring Person (including because (A) such Person was unaware that it Beneficially Owned
a percentage of then-outstanding Common Shares that would otherwise cause such Person, together with all Affiliates and Associates
of such Person, to become an “Acquiring Person” or (B) such Person was aware of the extent of its Beneficial Ownership
but was unaware of the consequences of such Beneficial Ownership under this Agreement), which determination of the Board shall
be conclusive and binding on such Person, the Rights Agent, the holders of the Rights and all other Persons.

 

Notwithstanding clause
(iii) of the proviso in the prior sentence, unless the Board determines pursuant to the definition of “Exempt Person”
that an Inadvertent Acquiror is an Exempt Person, if any Person that is not an Acquiring Person due to such clause (iii) does not
reduce its, together with all of its Affiliates’ and Associates’, percentage of Beneficial Ownership of Common Shares
to less than 4.99% (or in the case of a Grandfathered Person, to less than 0.5% in excess of its Grandfathered Percentage) by the
Close of Business on the tenth (10th) calendar day after notice from the Company (the date of notice being the first
day) that such Person’s Beneficial Ownership of Common Shares would make it an Acquiring Person, such Person shall, at the
end of such ten calendar day period, become an Acquiring Person (and such clause (iii) shall no longer apply to such Person). If
any Person that is not an Acquiring Person due to such clause (iii) and the requirements of the prior sentence shall again become
the Beneficial Owner of 4.99% or more (or in the case of a Grandfathered Person, a percentage of Common Shares then outstanding
exceeding such Grandfathered Person’s Grandfathered Percentage by 0.5% or more) of the Common Shares then outstanding, such
Person shall be deemed an “Acquiring Person”, subject to the exceptions set forth in this definition.

 

Notwithstanding the
foregoing, no Person shall become an “Acquiring Person” solely as a result of an Exempt Transaction.

 

    -2-

     

    

  

Notwithstanding the
foregoing, no Person shall become an “Acquiring Person” solely as the result of an acquisition of Common Shares by
the Company which, by reducing the number of Common Shares outstanding, increases the proportion of the Common Shares beneficially
owned by such Person to 4.99% or more (or in the case of a Grandfathered Person, has exceeded and is exceeding such Grandfathered
Person’s Grandfathered Percentage by 0.5% or more) of the Common Shares at the time outstanding unless and until such time
as such Person or one or more of its Affiliates or Associates thereafter acquires Beneficial Ownership of one additional Common
Share unless, upon becoming the Beneficial Owner of such additional Common Share, such Person is not then the Beneficial Owner
of 4.99% or more (or in the case of a Grandfathered Person, of a percentage of Common Shares then outstanding exceeding such Grandfathered
Person’s Grandfathered Percentage by 0.5% or more) of the Common Shares at the time outstanding.

 

“Affiliate”
and “Associate”, when used with reference to any Person, shall have the respective meanings ascribed to such
terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the date of this Agreement, and
to the extent not included within the foregoing, shall also include, with respect to any Person, any other Person whose Common
Shares would be deemed to be constructively owned by such first Person, owned by a single “entity” as defined in Section
1.382-3(a)(1) of the Treasury Regulations, or otherwise aggregated with shares owned by such first Person, pursuant to the provisions
of the Code, or any successor or replacement provision, and the Treasury Regulations promulgated thereunder; provided, however,
that a Person will not be deemed to be an Affiliate or Associate of another Person solely because either or both Persons are or
were directors of the Company.

 

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

 

A Person shall be deemed
the “Beneficial Owner” of, and shall be deemed to “beneficially own”, and shall be deemed
to have “Beneficial Ownership” of, any securities which such Person directly owns or would be deemed to indirectly
or constructively own, or which otherwise would be aggregated with securities owned by such Person, pursuant to Section 382 of
the Code, or any successor or replacement provision, and the Treasury Regulations promulgated thereunder.

 

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

 

“Book Value,”
when used with reference to Common Shares issued by any Person, shall mean the amount of equity of such Person applicable to each
Common Share, determined (a) in accordance with United States generally accepted accounting principles in effect on the date as
of which such Book Value is to be determined, (b) using all the consolidated assets and all the consolidated liabilities of such
Person on the date as of which such Book Value is to be determined, except that no value shall be included in such assets for goodwill
arising from consummation of a business combination (including, without limitation, a Business Combination), and (c) after giving
effect to (i) the exercise of all rights, options and warrants to purchase such Common Shares (other than the Rights), and the
conversion of all securities convertible into such Common Shares, at an exercise or conversion price, per Common Share, which is
less than such Book Value before giving effect to such exercise or conversion (whether or not exercisability or convertibility
is conditioned upon occurrence of a future event), (ii) all dividends and other distributions on the capital stock of such Person
declared prior to the date as of which such Book Value is to be determined and to be paid or made after such date, and (iii) any
other agreement, arrangement or understanding (written or oral), or transaction or other action contemplated prior to the date
as of which such Book Value is to be determined that would have the effect of thereafter reducing such Book Value.

 

    -3-

     

    

  

“Business
Combination” shall have the meaning set forth in Section 11(c)(i).

 

“Business
Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions
in the City of New York are authorized or obligated by law or executive order to close.

 

“Certificate
of Amendment” shall mean the Certificate of Amendment of Restated Certificate of Incorporation of the Company related
to the Preferred Shares, the form of which is attached to this Agreement as Exhibit A, as amended and/or restated from
time to time in accordance with its terms.

 

“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.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

“Common Shares,”
when used with reference to the Company prior to a Business Combination, shall mean the shares of Common Stock or any other shares
of capital stock of the Company into which the Common Stock shall be reclassified or changed and any other interest that would
be treated as “stock” of the Company for purposes of Section 382 (including Treasury Regulation Section 1.382-2T(f)(18))
in this Section 1 and all other provisions of this Agreement in which such meaning is necessary in order to ensure that
this Agreement is effective in carrying out its stated purpose and intent of preserving the Company’s NOLs and other Tax
Benefits. “Common Shares,” when used with reference to any Person other than the Company prior to a Business Combination,
shall mean shares of capital stock of such Person (if such Person is a corporation) of any class or series, or units of equity
interests in such Person (if such Person is not a corporation) of any class or series, the terms of which do not limit (as a maximum
amount and not merely in proportional terms) the amount of dividends or income payable or distributable on such class or series
or the amount of assets distributable on such class or series upon any voluntary or involuntary liquidation, dissolution or winding
up of such Person and do not provide that such class or series is subject to redemption at the option of such Person, or any shares
of capital stock or units of equity interests into which the foregoing shall be reclassified or changed, and if there shall be
more than one class or series of such shares of capital stock or units of equity interests of such Person, then “Common Shares”
of such Person shall mean the class or series of capital stock of such Person or units of equity interests in such Person having
voting power (being the power under ordinary circumstances (and not merely upon the happening of a contingency) to vote in the
election of directors of such Person (if such Person is a corporation) or to participate in the management and control of such
Person (if such Person is not a corporation)), or in the case of multiple classes or series having voting power, having the greatest
voting power.

 

    -4-

     

    

  

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

 

“Company”
shall have the meaning set forth in the Preamble to this Agreement; provided, however, that if there is a Business
Combination, “Company” shall have the meaning set forth in Section 11(c)(iii).

 

The term “control”
with respect to any Person shall mean the power to direct the management and policies of such Person, directly or indirectly, by
or through stock ownership, agency or otherwise, or pursuant to or in connection with an agreement, arrangement or understanding
(written or oral) with one or more other Persons by or through stock ownership, agency or otherwise; and the terms “controlling”
and “controlled” shall have meanings correlative to the foregoing.

 

“Customer
Identification Program” shall have the meaning set forth in Section 37.

 

“Distribution
Date” shall mean the Close of Business on the earlier of (a) ten (10) calendar days after the Share Acquisition
Date and (b) such date, if any, as may be designated by the Board following the commencement of, or the first public disclosure
of an intent to commence, a tender or exchange offer by any Person (other than the Company, any Subsidiary of the Company, any
employee benefit or compensation plan of the Company or of any of its Subsidiaries, or any Person organized, appointed or established
by the Company and holding Common Shares for or pursuant to the terms of any such employee benefit or compensation plan) for outstanding
Common Shares, if upon consummation of such tender or exchange offer such Person could reasonably be expected to be the Beneficial
Owner of 4.99% or more of the outstanding Common Shares.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended (or any comparable or successor law or act) as in effect
on the date in question, unless otherwise specifically provided.

 

“Exchange
Consideration” shall have the meaning set forth in Section 11(b)(i).

 

“Exempt Person”
shall mean any Person, alone or together with all Affiliates and Associates of such Person, whose Beneficial Ownership of 4.99%
or more of the then outstanding Common Shares, as determined by the Board in its sole discretion, or a duly constituted committee
of Independent Directors, in its sole discretion, including a determination pursuant to Section 34, (a) would not jeopardize
or endanger the availability to the Company of its NOLs or other Tax Benefits, taking into account such facts and circumstances
as the Board (or any such committee) reasonably deems relevant, or (b) is otherwise in the best interests of the Company; provided,
however, that the Board, or a duly constituted committee of Independent Directors, makes such determination either (x) before
the time such Person otherwise would have become an Acquiring Person, or (y) after the time such Person otherwise would have become
an Acquiring Person if the Board, or a duly constituted committee of Independent Directors, has determined that such Person is
an Inadvertent Acquiror; provided, further, that such Person will cease to be an “Exempt Person” if the
Board, in its sole discretion, or a duly constituted committee of Independent Directors, in its sole discretion, makes a contrary
determination regarding the effect of such Person’s Beneficial Ownership (together with all Affiliates and Associates of
such Person) with respect to the availability to the Company of its NOLs or other Tax Benefits, taking into account such facts
and circumstances as the Board (or any such committee) reasonably deems relevant. In granting an exemption under this definition,
the Board, or a duly constituted committee of Independent Directors, may require any Person who would otherwise be an Acquiring
Person to make certain representations, undertakings or covenants or to agree that any violation or attempted violation of such
representations, undertakings or covenants will result in such consequences and be subject to such conditions as the Board, or
a duly constituted committee of Independent Directors, may determine in its sole discretion, including that any such violation
shall result in such Person becoming an Acquiring Person.

 

    -5-

     

    

  

“Exempt Transaction”
shall mean any transaction that the Board determines, or a duly constituted committee of Independent Directors determines, is exempt
from this Agreement, which determination shall be made in the sole discretion of the Board (or any such committee) prior to the
date of such transaction, including if the Board (or any such committee) determines that (a) neither the Beneficial Ownership of
Common Shares by any Person, directly or indirectly, as a result of such transaction nor any other aspect of such transaction would
jeopardize or endanger the availability to the Company of the NOLs or other Tax Benefits, taking into account such facts and circumstances
as the Board (or any such committee) reasonably deems relevant, or (b) such transaction is otherwise in the best interests of the
Company. In granting an exemption under this definition, the Board, or a duly constituted committee of Independent Directors, may
require any Person who would otherwise be an Acquiring Person to make certain representations, undertakings or covenants or to
agree that any violation or attempted violation of such representations, undertakings or covenants will result in such consequences
and be subject to such conditions as the Board, or a duly constituted committee of Independent Directors, may determine in its
sole discretion, including that any such violation shall result in such Person becoming an Acquiring Person.

 

“Exemption
Request” shall have the meaning set forth in Section 34.

 

“Expiration
Date” shall mean the earliest of: (i) the Final Expiration Date or such earlier date as of which the Board determines
that this Agreement is no longer necessary for the preservation of Tax Benefits; (ii) the Close of Business on the effective date
of the repeal of Section 382 if the Board determines that this Agreement is no longer necessary or desirable for the preservation
of NOLs or other Tax Benefits; (iii) the time at which all exercisable Rights are exchanged as provided in Section 11(b);
(iv) the Close of Business on the first day of a taxable year of the Company with respect to which the Board determines that no
NOLs or other Tax Benefits may be carried forward; (v) the date on which any Person, including an Acquiring Person, alone or together
with all Affiliates and Associates of such Person, becomes the Beneficial Owner of greater than 19.99% of the Common Shares then
outstanding; and (vi) on the 30th calendar day after the first annual meeting of the Company’s stockholders that is completed
after the date of this Agreement, unless the Company’s stockholders have ratified or otherwise approved this Agreement at
such annual meeting.

 

“Final Expiration
Date” shall mean the Close of Business on November 5, 2020.

 

    -6-

     

    

  

“include”,
“includes” and “including” shall be deemed to be followed by the words “without limitation.”

 

“Grandfathered
Percentage” shall mean, with respect to any Grandfathered Person, the percentage of the outstanding Common Shares that
such Grandfathered Person, together with all Affiliates and Associates of such Grandfathered Person, Beneficially Owns as of the
Close of Business on the date hereof; provided that, in the event any Grandfathered Person shall sell, transfer, or otherwise
dispose of any outstanding Common Shares after the Close of Business on the date hereof, the Grandfathered Percentage shall, subsequent
to such sale, transfer or disposition, mean, with respect to such Grandfathered Person, the lesser of (a) the Grandfathered Percentage
as in effect immediately prior to such sale, transfer or disposition or (b) the percentage of outstanding Common Shares that such
Grandfathered Person, together with all Affiliates and Associates of such Grandfathered Person, Beneficially Owns immediately following
such sale, transfer or disposition.

 

“Grandfathered
Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person, is, as of the
Close of Business on the date hereof, the Beneficial Owner (as disclosed in public filings with the Securities and Exchange Commission
on the Close of Business on the date hereof) of 4.99% or more of the Common Shares then outstanding. Notwithstanding anything to
the contrary provided in this Agreement, any Grandfathered Person who after the Close of Business on the date hereof becomes the
Beneficial Owner of less than 4.99% of the Common Shares then outstanding shall cease to be a Grandfathered Person and thereafter
shall be subject to all of the provisions of this Agreement in the same manner as any Person who or which is not and was never
a Grandfathered Person; provided, however, that an Exempt Person shall not be a Grandfathered Person.

 

“Inadvertent
Acquiror” shall mean any Person who would be an Acquiring Person but for clause (iii) of the proviso in the definition
of “Acquiring Person.”

 

“Independent
Director” shall mean an independent director as defined in the Nasdaq Marketplace Rules.

 

“Major Part,”
when used with reference to the assets of the Company and its Subsidiaries as of any date, shall mean assets (a) having a fair
market value aggregating 50% or more of the total fair market value of all the assets of the Company and its Subsidiaries (taken
as a whole) as of the date in question, (b) accounting for 50% or more of the total value (net of depreciation and amortization)
of all the assets of the Company and its Subsidiaries (taken as a whole) as would be shown on a consolidated or combined balance
sheet of the Company and its Subsidiaries as of the date in question, prepared in accordance with United States generally accepted
accounting principles then in effect, or (c) accounting for 50% or more of the total amount of earnings before interest, taxes,
depreciation and amortization or of the revenues of the Company and its Subsidiaries (taken as a whole) as would be shown on, or
derived from, a consolidated or combined statement of income or net earnings of the Company and its Subsidiaries for the period
of 12 months ending on the last day of the Company’s monthly accounting period next preceding the date in question, prepared
in accordance with United States generally accepted accounting principles then in effect.

 

    -7-

     

    

  

“Market Value,”
when used with reference to Common Shares or Preferred Shares on any date, shall mean the average of the daily closing prices,
per share, of such Common Shares or Preferred Shares, as applicable, for the period which is the shorter of (a) 30 consecutive
Trading Days ending on the Trading Day immediately prior to the date in question or (b) the number of consecutive Trading Days
beginning on the Trading Day immediately after the date of the first public announcement of the event requiring a determination
of the Market Value of Common Shares or Preferred Shares, as applicable, and ending on the Trading Day immediately prior to the
record date of such event. The closing price for each Trading Day shall be the closing price quoted on the composite tape for securities
listed on the Nasdaq Capital Market, or, if such securities are not quoted on such composite tape, on the principal United States
securities exchange registered under the Exchange Act (or any recognized foreign stock exchange) on which such securities are listed,
or, if such securities are not listed on any such exchange, the closing price (or, if no sale takes place on such Trading Day,
the average of the closing bid and asked prices on such Trading Day) as quoted on any reputable quotations system specified by
the Board, or if no such quotations are available, the average of the closing bid and asked prices as furnished by a professional
market maker making a market in such securities selected by the Board, or if on any such Trading Day no market maker is making
a market in such securities, the closing price of such securities on such Trading Day shall be deemed to be the fair value of such
securities 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, the holders of Rights and all other Persons); provided, however,
that if a Trading Day occurs during a period following an announcement of any action of the type described in Section 12(a)
that would require an adjustment thereunder by the issuer of the securities the closing price of which is to be determined, then,
and in each such case, the closing price of such securities shall be appropriately adjusted to reflect the effect of such action
on the market price of such securities; and provided further, however, that for the purpose of determining the closing
price of the Preferred Shares for any Trading Day on which there is no market maker for the Preferred Shares, the closing price
on such Trading Day shall be deemed to be the Formula Number (as defined in the Certificate of Amendment) multiplied by the closing
price of the Common Shares on such Trading Day.

 

“NOLs”
shall mean the Company’s net operating loss carryforwards.

 

“Person”
shall mean an individual, firm, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated
organization or other entity, or a group of Persons making a “coordinated acquisition” of shares or otherwise treated
as an entity within the meaning of Section 1.382-3(a)(1) of the Treasury Regulations, and shall include any successor (by
merger or otherwise) of such individual or entity, but shall not include a Public Group (as defined in Section 1.382-2T(f)(13)
of the Treasury Regulations).

 

“Post Transferee”
shall have the meaning set forth in Section 7(e).

 

“Preferred
Shares” shall have the meaning set forth in the Recitals to this Agreement. Any reference in this Agreement to Preferred
Shares shall be deemed to include any authorized fraction of a Preferred Share, unless the context otherwise requires.

 

    -8-

     

    

  

“Principal
Party” shall mean the Surviving Person in a Business Combination; provided, however, that, (i) if such
Surviving Person is a direct or indirect Subsidiary of any other Person, “Principal Party” shall mean the Person which
is the ultimate parent of such Surviving Person and which is not itself a Subsidiary of another Person, and (ii) in the event ultimate
control of such Surviving Person is shared by two or more Persons, “Principal Party” shall mean that Person that is
immediately controlled by such two or more Persons.

 

“Prior Transferee”
shall have the meaning set forth in Section 7(e).

 

“Purchase
Price” with respect to each Right shall mean $10.85, as such amount may from time to time be adjusted as provided in this
Agreement, and shall be payable in lawful money of the United States of America. All references herein to the Purchase Price shall
mean the Purchase Price as in effect at the time in question.

 

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

 

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

 

“Redemption
Price” with respect to each Right shall mean $0.0001, as such amount may from time to time be adjusted in accordance
with Section 12. All references herein to the Redemption Price shall mean the Redemption Price as in effect at the time
in question.

 

“Registered
Common Shares” shall mean Common Shares that are, as of the date of consummation of a Business Combination, and have
continuously been for the 12 months immediately preceding such date, registered under Section 12 of the Exchange Act, and if a
Person has multiple classes or series of Registered Common Shares outstanding, “Registered Common Shares” of such Person
shall mean the class or series of Registered Common Shares of such Person having voting power (being the power under ordinary circumstances
(and not merely upon the happening of a contingency) to vote in the election of directors of such Person (if such Person is a corporation)
or to participate in the management and control of such Person (if such Person is not a corporation)), or in the case of multiple
classes or series having voting power, having the greatest voting power.

 

“Requesting
Person” shall have the meaning set forth in Section 34.

 

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

 

“Right Certificate”
shall mean a certificate evidencing a Right in substantially the form attached hereto as Exhibit B.

 

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

 

“Section 382”
shall mean section 382 of the Code or any amended or successor version thereof.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended (or any comparable or successor law or act), as in effect on the
date in question, unless otherwise specifically provided.

 

    -9-

     

    

  

“Share Acquisition
Date” shall mean the date on which the Company learns that a Person has become an Acquiring Person; provided,
however that, if such Person is determined by the Board (a) to be an Exempt Person or (b) to be an Inadvertent Acquiror,
then in the case of each of clause (a) and (b), the Share Acquisition Date shall be deemed not to have occurred; but only for so
long as such Person (i) in the case of clause (a), remains an Exempt Person or (ii) in the case of clause (b), does not thereafter
become an Acquiring Person pursuant to the second sentence of the definition of “Acquiring Person”, unless, in the
case of each of clause (i) and clause (ii), the Distribution Date shall have occurred.

 

“Subsidiary”
of another Person shall mean a Person, at least a majority of the total outstanding voting power (being the power under ordinary
circumstances (and not merely upon the happening of a contingency) to vote in the election of directors of such Person (if such
Person is a corporation) or to participate in the management and control of such Person (if such Person is not a corporation))
of which is owned, directly or indirectly, by another Person or by one or more other Subsidiaries of such other Person or by such
other Person and one or more other Subsidiaries of such other Person.

 

“Surviving
Person” shall mean (a) the Person which is the continuing or surviving Person in a consolidation, merger, share exchange
or other business combination specified in Section 11(c)(i)(A) or 11(c)(i)(B) or (b) the Person to which the
Major Part of the assets of the Company and its Subsidiaries is sold, leased, exchanged or otherwise transferred or disposed of
in a transaction specified in Section 11(c)(i)(C); provided, however, that, if the Major Part of the
assets of the Company and its Subsidiaries is sold, leased, exchanged or otherwise transferred or disposed of in one or more related
transactions specified in Section 11(c)(i)(C) to more than one Person, the “Surviving Person” in such case shall
mean the Person that acquired assets of the Company and/or its Subsidiaries with the greatest fair market value in such transaction
or transactions.

 

“Tax Benefits”
shall mean the net operating loss carryovers, capital loss carryovers, general business credit carryovers, alternative minimum
tax credit carryovers, foreign tax credit carryovers, research and development credit carryovers and any loss or deduction attributable
to a “net unrealized built-in loss” within the meaning of Section 382, and the Treasury Regulations promulgated thereunder,
of the Company or any of its Subsidiaries.

 

“Trading Day”
shall mean a day on which the principal national securities exchange (or principal recognized foreign stock exchange, as the case
may be) on which any securities or Rights, as the case may be, are listed or admitted to trading is open for the transaction of
business or, if the securities or Rights in question are not listed or admitted to trading on any national securities exchange
(or recognized foreign stock exchange, as the case may be), a Business Day.

 

“Treasury
Regulations” shall mean final, temporary and proposed tax regulations promulgated under the Code, as amended.

 

“Trust”
shall have the meaning set forth in Section 11(b)(ii).

 

“Trust Agreement”
shall have the meaning set forth in Section 11(b)(ii).

 

    -10-

     

    

  

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 hereof (and no implied terms and conditions), and the Rights Agent hereby accepts such appointment. Upon ten
(10) days’ prior written notice to the Rights Agent, the Company may from time to time appoint one or more co-Rights Agents
as it may deem necessary or desirable (the term “Rights Agent” being used herein to refer, collectively, to the Rights
Agent together with any such co-Rights Agents). In the event the Company appoints one or more co-Rights Agents, the respective
duties of the Rights Agent and any co-Rights Agents, as among them, shall be as the Company shall determine, and shall be provided
in writing to the Rights Agent and any such co-Rights Agent. The Rights Agent shall have no duty to supervise and shall not be
liable for the acts or omissions of any such co-Rights Agents. To the extent that any co-Rights Agent takes any action pursuant
to this Agreement, such co-Rights Agent will be entitled to all of the rights and protections of, and subject to all of the applicable
duties and obligations imposed upon, the Rights Agent pursuant to the terms of this Agreement.

 

SECTION 3. Issue
of Rights and Right Certificates.

 

(a)          One
Right shall be associated with: (i) each Common Share outstanding on the Record Date; (ii) each additional Common Share
(other than Common Shares issued upon the exercise or exchange of any Right) that shall become outstanding between the Record Date
and the earliest to occur of the Distribution Date, the Redemption Date or the Expiration Date; and (iii) each additional
Common Share with which Rights are issued after the Distribution Date but prior to the earlier of the Redemption Date or the Expiration
Date as provided in Section 23, subject to adjustment as provided in this Agreement.

 

(b)          Until
the Distribution Date, (x) the Rights shall, except as otherwise provided in Section 3(c), be evidenced by the certificates
for Common Shares registered in the names of the holders thereof, or, in the case of Common Shares held in uncertificated form,
by the transaction statement or other record of ownership of such Common Shares and not by separate Right Certificates, and (y)
the Rights, including the right to receive Right Certificates, shall be transferable only in connection with the transfer of the
underlying Common Shares. As soon as practicable after the Distribution Date, the Company shall prepare and execute, the Rights
Agent shall countersign, and the Company will send or cause to be sent (and the Rights Agent shall, if requested and provided with
all necessary information, at the expense of the Company send) by first-class, postage-prepaid mail, to each record holder of Common
Shares as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company
or the transfer agent or registrar for the Common Shares, one or more Right Certificates evidencing one whole Right for each Common
Share held by such record holder, subject to the provisions of Section 15 and to adjustment as provided in this Agreement.
As of and after the Distribution Date, the Rights shall be evidenced solely by such Right Certificates. The Company shall, as promptly
as practicable, notify the Rights Agent upon the occurrence of the Distribution Date and, if such notification is given orally,
the Company shall confirm same in writing (including via electronic mail) on or prior to the Business Day next following. Until
such written notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that the Distribution
Date has not occurred.

 

    -11-

     

    

  

(c)          As
soon as practicable after the Record Date, the Company will send a copy of a Summary of Rights to Purchase Preferred Shares, in
substantially the form attached hereto as Exhibit C (the “Summary of Rights”), by first-class, postage-prepaid
mail, to each record holder of Common Shares as of the Close of Business on the Record Date at the address of such holder shown
on the records of the Company or the transfer agent or registrar for the Common Shares. With respect to any Common Shares outstanding
as of the Record Date, and until the earliest of the Distribution Date, the Redemption Date or the Expiration Date, (i) in the
case of certificated shares, (A) the Rights associated with the Common Shares represented by any certificate shall be evidenced
by such certificate for the Common Shares with a copy of the Summary of Rights attached thereto and the registered holders of the
Common Shares shall also be the registered holders of the associated Rights and (B) the surrender for transfer of any such certificate,
even without a copy of the Summary of Rights attached thereto, shall also constitute the transfer of the Rights associated with
the Common Shares represented thereby, and (ii) in the case of Common Shares held in uncertificated form, (A) the Rights associated
with the Common Shares shall be evidenced by the balances indicated in the book-entry account system of the transfer agent for
such Common Shares and the registered holders of the Common Shares shall also be the registered holders of the associated Rights
and (B) the transfer of any Common Shares in the book-entry account system of the transfer agent for such Common Shares shall also
constitute the transfer of the Rights associated with such Common Shares.

 

(d)          In
the case of certificated Common Shares, certificates issued for Common Shares after the Record Date (including upon transfer or
exchange of outstanding Common Shares), but prior to the earliest to occur of the Distribution Date, the Redemption Date or the
Expiration Date, shall have printed on, written on or otherwise affixed to them a legend in substantially the following form or
such similar legend as the Company may deem appropriate and is not inconsistent with the provisions of this Agreement:

 

This certificate also evidences
and entitles the holder hereof to certain Rights as set forth in a Tax Asset Protection Rights Agreement, dated as of November
5, 2018, (as it may be amended from time to time (the “Rights Agreement”)), between ACETO CORPORATION, a New York corporation
(the “Company”), and AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, a New York limited liability trust company,
(or any successor Rights Agent, the “Rights Agent”), the terms of which (including restrictions on the transfer of
such Rights) are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of the
Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights shall be evidenced by separate certificates
and shall no longer be evidenced by this certificate. The Company shall mail to the holder of this certificate a copy of the Rights
Agreement without charge after receipt of a written request therefor. RIGHTS BENEFICIALLY OWNED BY ACQUIRING PERSONS OR THEIR AFFILIATES
OR ASSOCIATES (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND BY ANY SUBSEQUENT HOLDER OF SUCH RIGHTS ARE NULL AND VOID
AND NONTRANSFERABLE.

 

    -12-

     

    

  

Notwithstanding this Section 3(d),
neither the omission of a legend nor the inclusion of a legend that makes reference to a rights agreement other than this Agreement
shall affect the enforceability of any part of this Agreement or the rights of any holder of Rights.

 

(e)          In
the case of Common Shares held in uncertificated form, the Company shall cause the confirmation and account statements sent to
holders of Common Shares in book-entry form (including upon transfer or exchange of outstanding Common Shares) prior to the earliest
of the Distribution Date, the Redemption Date or the Expiration Date to bear a legend in substantially the following form:

 

Each share of Common Stock, par
value $0.01 per share, of ACETO CORPORATION, a New York corporation (the “Company”), entitles the holder thereof to
certain Rights as set forth in a Tax Asset Protection Rights Agreement, dated as of November 5, 2018 (as it may be amended from
time to time (the “Rights Agreement”)), between the Company and AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, a
New York limited liability trust company, (or any successor Rights Agent, the “Rights Agent”), the terms of which (including
restrictions on the transfer of such Rights) are hereby incorporated herein by reference and a copy of which is on file at the
principal executive offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights shall
be evidenced by separate certificates and shall no longer be evidenced by the shares to which this statement relates. The Company
shall mail to the holder of shares to which this statement relates a copy of the Rights Agreement without charge after receipt
of a written request therefor. RIGHTS BENEFICIALLY OWNED BY ACQUIRING PERSONS OR THEIR AFFILIATES OR ASSOCIATES (AS SUCH TERMS
ARE DEFINED IN THE RIGHTS AGREEMENT) AND BY ANY SUBSEQUENT HOLDER OF SUCH RIGHTS ARE NULL AND VOID AND NONTRANSFERABLE.

 

Notwithstanding this Section 3(e),
neither the omission of a legend nor the inclusion of a legend that makes reference to a rights agreement other than this Agreement
shall affect the enforceability of any part of this Agreement or the rights of any holder of Rights.

 

(f)          In
the event that the Company purchases or otherwise acquires any Common Shares after the Record Date but prior to the earliest of
the Distribution Date, the Redemption Date or the Expiration Date, any Rights associated with such Common Shares will be deemed
canceled and retired so that the Company will not be entitled to exercise any Rights associated with the Common Shares so purchased
or acquired.

 

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SECTION 4. Form
of Right Certificates. The Right Certificates (and the form of election to purchase and form of assignment to be printed on
the reverse side thereof) shall be in substantially the form set forth as Exhibit B hereto and may have such marks of identification
or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate (but which do not
affect the rights, duties or responsibilities of the Rights Agent) and as are not inconsistent with the provisions of this Agreement,
or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or
regulation of any stock exchange on which the Rights may from time to time be listed, or to conform to usage. Subject to the other
provisions of this Agreement (including Sections 7, 11 and 23), the Right Certificates, whenever issued, shall
be dated as of the Distribution Date and shall entitle the holders thereof to purchase such number of Preferred Shares as shall
be set forth therein for the Purchase Price set forth therein, subject to adjustment as provided in this Agreement.

 

SECTION 5. Execution,
Countersignature and Registration.

 

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

 

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

 

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

 

(a)          Subject
to Sections 7(e) and 15, at any time after the Distribution Date, and at or prior to the Close of Business on the
earlier of the Redemption Date or the Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates
representing Rights that have become null and void pursuant to Section 7(e)) may be transferred, split-up, combined or exchanged
for another Right Certificate or Right Certificates representing, in the aggregate, the same number of Rights as the Right Certificate
or Right Certificates surrendered then represented. Any registered holder desiring to transfer, split-up, combine or exchange any
Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent and shall surrender the
Right Certificate or Right Certificates to be transferred, split-up, combined or exchanged at the office of the Rights Agent designated
for such purpose; provided, however, that neither the Rights Agent nor the Company shall be obligated to take any
action whatsoever with respect to the transfer of any Right Certificate surrendered for transfer until the registered holder shall
have properly completed and duly signed the certification contained in the form of assignment on the reverse side of such Right
Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner)
or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request. Thereupon the Rights Agent shall,
subject to Sections 7(e) and 15, countersign and deliver to the Person entitled thereto a Right Certificate or Right
Certificates, as the case may be, as so requested. The Company may require payment of a sum sufficient to cover any tax or governmental
charge that may be imposed in connection with any transfer, split-up, combination or exchange of Right Certificates. 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 deliver any Right Certificate unless and until it is satisfied that all such payments
have been made, and the Rights Agent shall promptly forward any such sum collected by it to the Company or to such Persons as the
Company may specify by written notice. The Rights Agent shall have no duty or obligation under any section of this Agreement that
requires the payment of taxes or charges unless and until it is satisfied that all such taxes and/or charges have been paid.

 

(b)          Subject
to Sections 7(e) and 15, 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 Right Certificate, and, in case of loss, theft or destruction, of
an open surety bond reasonably satisfactory to them, holding the Rights Agent and the Company harmless, and, at the Company’s
request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to
the Rights Agent and cancellation of the Right Certificate if mutilated, the Company shall execute a new Right Certificate of like
tenor and deliver such new Right Certificate to the Rights Agent for countersignature and delivery to the registered owner in lieu
of the Right Certificate so lost, stolen, destroyed or mutilated.

 

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

 

SECTION 7. Exercise
of Rights; Expiration Date of Rights.

 

(a)          Subject
to the other provisions of this Agreement (including Sections 7(e) and 11), each Right shall entitle the registered
holder thereof, upon exercise thereof as provided in this Agreement, to purchase for the Purchase Price, at any time after the
Distribution Date and at or prior to the earlier of (i) the Expiration Date and (ii) the Redemption Date, one one-thousandth (1/1,000th)
of a Preferred Share, subject to adjustment as provided in this Agreement. For purposes of clarity, the Rights and this Agreement
shall expire on the Expiration Date and no Person shall have any rights pursuant to this Agreement or any Right after the Expiration
Date, unless the Rights have been exchanged or redeemed pursuant to the terms hereof.

 

    -15-

     

    

  

(b)          Subject
to the other provisions of this Agreement (including Section 7(e)), the registered holder of any Right Certificate may exercise
the Rights evidenced thereby (except as otherwise provided in this Agreement) in whole or in part at any time after the Distribution
Date and at or prior to the earlier of (i) the Expiration Date and (ii) the Redemption Date, upon surrender of the Right Certificate,
with the form of election to purchase on the reverse side thereof properly completed and duly executed, to the Rights Agent at
the office of the Rights Agent designated for such purpose, together with payment of the Purchase Price for each one one-thousandth
(1/1,000th) of a Preferred Share (as such fraction may be adjusted as provided in this Agreement) as to which the Rights are exercised,
together with any amount equal to any applicable transfer tax, in the manner required hereby.

 

(c)          Subject
to the other provisions of this Agreement (including Section 7(e)), upon receipt of a Right Certificate representing exercisable
Rights, with the form of election to purchase properly completed and duly executed, accompanied by payment of the Purchase Price
for the Preferred Shares to be purchased together with an amount equal to any applicable transfer tax, in lawful money of the United
States of America, in cash or by certified check or money order payable to the order of the Company, the Rights Agent shall thereupon
promptly: (i) either (A) requisition from any transfer agent of the Preferred Shares (or make available, if the Rights Agent is
the transfer agent for such shares) certificates representing the number of one one-thousandths (1/1,000ths) of a Preferred Share
(as such fraction may be adjusted as provided in this Agreement) to be purchased and the Company hereby irrevocably authorizes
its transfer agent to comply with all such requests or (B) if the Company shall have elected to deposit the Preferred Shares with
a depositary agent under a depositary arrangement, requisition from the depositary agent depositary receipts representing the number
of one one-thousandths (1/1,000ths) of a Preferred Share (as such fraction may be adjusted as provided in this Agreement) to be
purchased (in which case certificates for the Preferred Shares to be 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 all such requests; (ii) after
receipt of such certificates or depositary receipts, cause the same to be delivered to or, upon the order of the registered holder
of such Right Certificate, registered in such name or names as may be designated by such holder; (iii) when necessary to comply
with this Agreement (or otherwise when appropriate, as determined by the Company with written notice to the Rights Agent), requisition
from the Company the amount of cash, if any, to be paid in lieu of issuance of fractional shares in accordance with Section 15;
and (iv) when necessary to comply with this Agreement (or otherwise when appropriate, as determined by the Company with written
notice to the Rights Agent), after receipt thereof, deliver such cash, if any, to or upon the order of the registered holder of
such Right Certificate.

 

(d)          In
case the registered holder of any Right Certificate shall exercise fewer than all the Rights evidenced thereby, a new Right Certificate
evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent and delivered to the registered
holder of such Right Certificate or to such holder’s duly authorized assigns, subject to the provisions of Section 15.

 

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(e)          Notwithstanding
anything in this Agreement to the contrary, any Rights that are at any time beneficially owned by: (i) an Acquiring Person or an
Affiliate or Associate of an Acquiring Person; (ii) a transferee of an Acquiring Person (or of any Associate or Affiliate of such
Acquiring Person) who becomes a transferee after the Acquiring Person becomes such (a “Post Transferee”); (iii) a
transferee of an Acquiring Person (or of any Associate or Affiliate of such Acquiring 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 from such Affiliate or Associate) to holders of equity interests in such Acquiring
Person (or such Affiliate or Associate) or to any Person with whom the Acquiring Person (or such Affiliate or Associate) has any
continuing agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the Board has determined
is part of a plan, agreement, arrangement or understanding (written or oral) which has as a primary purpose or effect the avoidance
of this Section 7(e) (a “Prior Transferee”); or (iv) any subsequent transferee receiving transferred
Rights from a Post Transferee or a Prior Transferee, either directly or through one or more intermediate transferees, shall become
null and void without any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights,
whether under any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to ensure that the provisions
of this Section 7(e) are complied with, but, it and the Rights Agent shall have no liability to any holder of any Right
Certificate or any other Person as a result of its failure to make any determinations with respect to an Acquiring Person or its
Affiliate or Associate, or any transferee thereof, hereunder. The Company shall give the Rights Agent written notice of the identity
of any Acquiring Person, Associate or Affiliate known to it, or the nominee of any of the foregoing, and the Rights Agent may rely
on such notice in carrying out its duties under this Agreement, shall not be liable for and shall be deemed not to have any knowledge
of the identity of any such Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing unless and until it
shall have received such notice.

 

(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 of any Right Certificates upon the occurrence of any purported exercise as set forth in this
Section 7 unless such registered holder shall have (i) properly completed and duly signed the certificate contained
in the form of election to purchase set forth on the reverse side of the Right Certificate surrendered for such exercise and (ii)
provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company and the Rights Agent shall reasonably request.

 

SECTION 8. Cancellation
and Destruction of Right Certificates. All Right Certificates surrendered or presented for the purpose of exercise, transfer,
split-up, combination or exchange shall, and all Right Certificates representing Rights that have become null and void and nontransferable
pursuant to Section 7(e) surrendered or presented for any purpose shall, if surrendered or presented to the Company
or to any of its agents, be delivered to the Rights Agent for cancellation or in canceled form, or, if surrendered or presented
to the Rights Agent, shall be canceled by it, and no Right 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 Right Certificate purchased or acquired by the Company. Subject to applicable law and regulation, the Rights
Agent shall maintain in a retrievable database electronic records of all cancelled or destroyed stock certificates which have been
canceled or destroyed by the Rights Agent. The Rights Agent shall maintain such electronic records or physical records for the
time period required by applicable law and regulation but in no event less than seven (7) years. Upon written request of the Corporation
(and at the expense of the Corporation), the Rights Agent shall provide to the Corporation or its designee copies of such electronic
records or physical records relating to rights certificates cancelled or destroyed by the Rights Agent in a mutually agreed format.

 

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SECTION 9. Reservation
and Availability of Preferred Shares.

 

(a)          The
Company shall cause to be reserved and kept available out of its authorized and unissued Preferred Shares or any authorized and
issued Preferred Shares held in its treasury, free from preemptive rights or any right of first refusal, a number of Preferred
Shares sufficient to permit the exercise in full of all outstanding Rights.

 

(b)          If
there are not sufficient Preferred Shares issued but not outstanding or authorized but unissued to permit the exercise or exchange
of Rights in accordance with this Agreement, the Company shall take all such action as may be necessary to authorize additional
Preferred Shares for issuance upon the exercise or exchange of Rights pursuant to this Agreement; provided, however,
that if the Company is unable to cause the authorization of additional Preferred Shares, then the Company shall, or, if action
by the Company’s stockholders is necessary to cause such authorization, in lieu of seeking any such authorization, the Company
may, to the extent necessary and permitted by applicable law and any agreements or instruments in effect prior to the Distribution
Date to which it is a party, (i) upon surrender of a Right, pay cash equal to the Purchase Price in lieu of issuing Preferred Shares
and requiring payment therefor, (ii) upon due exercise of a Right and payment of the Purchase Price for each Preferred Share as
to which such Right is exercised, issue Common Stock or other equity and/or debt securities having a value equal to the value of
the Preferred Shares that otherwise would have been issuable pursuant to this Agreement, which value shall be determined by a nationally
recognized investment banking firm selected by the Board, or (iii) upon due exercise of a Right and payment of the Purchase Price
for each Preferred Share as to which such Right is exercised, distribute a combination of Preferred Shares, cash and/or other equity
and/or debt securities having an aggregate value equal to the value of the Preferred Shares that otherwise would have been issuable
pursuant to this Agreement, which value shall be determined by a nationally recognized investment banking firm selected by the
Board. To the extent that any legal or contractual restrictions (pursuant to agreements or instruments in effect prior to the Distribution
Date to which it is party) prevent the Company from paying the full amount payable in accordance with the foregoing sentence, the
Company shall pay to holders of the Rights as to which such payments are being made all amounts that are not then restricted on
a pro rata basis as such payments become permissible under such legal or contractual restrictions until such payments have been
paid in full.

 

(c)          The
Company shall take all actions as may be necessary to ensure that all Preferred Shares delivered upon exercise or exchange of Rights
shall, at the time of delivery of the certificates for such Preferred Shares (subject to payment of the Purchase Price), be duly
and validly authorized and issued and fully paid and nonassessable shares.

 

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(d)          The
Company shall pay when due and payable any and all Federal and state transfer taxes and charges which may be payable in respect
of the issuance or delivery of Right Certificates or of any Preferred Shares or Common Shares or other securities upon the exercise
or exchange of the Rights. The Company and the Rights Agent shall not, however, be required to pay any transfer tax or charge which
may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or in respect of the issuance
or delivery of certificates or depositary receipts for the Preferred Shares or Common Shares or other securities, as the case may
be, in a name other than that of, the registered holder of the Right Certificate evidencing Rights surrendered for exercise or
exchange or to issue or deliver any certificates or depositary receipts for Preferred Shares or Common Shares or other securities,
as the case may be, upon the exercise or exchange of any Rights until any such tax or charge shall have been paid (any such tax
or charge being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to the
Company’s and the Rights Agent’s satisfaction that no such tax or charge is due.

 

SECTION 10. Record
Date. Each Person in whose name any certificate for Preferred Shares or Common Shares or other securities is issued upon the
exercise or exchange of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares or
Common Shares or other securities, as the case may be, represented thereby on, and such certificate shall be dated, the date on
which the Right Certificate evidencing such Rights was duly surrendered and payment of any Purchase Price (and any applicable transfer
taxes) was made; provided, however, that, if the date of such surrender and payment is a date upon which the transfer
books of the Company for the Preferred Shares or Common Shares or other securities, as the case may be, are closed, such Person
shall be deemed to have become the record holder of such Preferred Shares or Common Shares or other securities, as the case may
be, on, and such certificate shall be dated, the next succeeding Business Day on which the transfer books of the Company for the
Preferred Shares or Common Shares or other securities, as the case may be, are open.

 

SECTION 11. Adjustments
in Rights After There Is an Acquiring Person; Exchange of Rights for Shares; Business Combinations.

 

(a)          Subject
to the other provisions of this Agreement (including Section 7(e)), upon the occurrence of the Share Acquisition Date,
each holder of a Right shall thereafter have a right to receive, upon exercise thereof for the Purchase Price in accordance with
the terms of this Agreement, such number of one one-thousandths (1/1,000ths) of a Preferred Share (as such fraction may be adjusted
as provided in this Agreement) as shall equal the result obtained by multiplying the Purchase Price by a fraction, the numerator
of which is the number of one one-thousandths (1/1,000ths) of a Preferred Share (as such fraction may be adjusted as provided in
this Agreement) for which such Right is then exercisable and the denominator of which is 50% of the Market Value of the Common
Shares on such Share Acquisition Date.

 

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(b)          (i)
          The Board may, at its option, at any time after the Share Acquisition Date, mandatorily exchange all or part of the then outstanding
and exercisable Rights (which shall not include Rights that shall have become null and void and nontransferable pursuant to Section 7(e))
for consideration per Right consisting of either: (A) one-half of the Preferred Shares (or fractions thereof) that would be issuable
at such time upon the exercise of one Right in accordance with Section 11(a) or, if applicable, Section 9(b)(ii)
or 9(b)(iii); or (B) cash, property, Preferred Shares (including fractions thereof), Common Shares (including fractions
thereof), or other equity or debt securities (or any combination of any of the foregoing) having an aggregate value equal to one-half
of the value of Preferred Shares (including fractions thereof) that would be issuable at such time upon the exercise of one Right
in accordance with Section 11(a), which values shall be determined by a nationally recognized investment banking firm
selected by the Board (the consideration issuable per Right pursuant to this Section 11(b)(i) being the “Exchange
Consideration”). The Board may, at its option, cause the Company to issue to the holders of Common Shares a number of
Common Shares in lieu of each Preferred Share equal to the Formula Number (as defined in the Certificate of Amendment) if there
are sufficient Common Shares issued but not outstanding or authorized but unissued. If the Board elects to exchange all the Rights
for Exchange Consideration pursuant to this Section 11(b)(i) prior to the physical distribution of the Right Certificates,
the Company may distribute the Exchange Consideration in lieu of distributing Right Certificates, in which case for purposes of
this Agreement holders of Rights shall be deemed to have simultaneously received and surrendered for exchange Right Certificates
on the date of such distribution. Notwithstanding the foregoing, the Board may not effect such exchange at any time after any Person
(other than: (i) the Company, (ii) any Subsidiary of the Company, or (iii) any employee benefit or compensation plan of the Company
or of any of its Subsidiaries or any Person organized, appointed or established by the Company and holding Common Shares for or
pursuant to the terms of any such employee benefit or compensation plan), together with all Affiliates and Associates of any such
Person, becomes the Beneficial Owner of more than 50% of the Common Shares then outstanding.

 

(ii)         Any
action of the Board ordering the exchange of any Rights pursuant to Section 11(b)(i) shall be irrevocable and, immediately
upon the taking of such action and without any further action and without any notice, the right to exercise any such Right so exchanged
pursuant to Section 11(a) shall terminate and the only right thereafter of a holder of such Right shall be to receive
the Exchange Consideration in exchange for each such Right held by such holder or, if the Exchange Consideration shall not have
been paid or issued, to exercise any such Right pursuant to Section 11(c)(i). The Company shall promptly give public
notice of any such exchange (with prompt written notice thereof to the Rights Agent); provided, however, that the
failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company shall promptly mail
a notice of any such exchange to all holders of the Rights to be exchanged at their last addresses as they appear upon the registry
books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder
receives the notice. Each such notice of exchange shall state the method by which the exchange of the Rights for the Exchange Consideration
will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange
shall be effected pro rata based on the number of Rights (other than Rights which shall have become null and void and nontransferable
pursuant to the provisions of Section 7(e)) held by each holder of Rights. If the Board elects to exchange Rights for
Exchange Consideration consisting all or in part of Preferred Shares or Common Shares, the Company may elect to deposit such Preferred
Shares or Common Shares with a depositary agent under a depositary arrangement, and, in such event, the Company shall cause the
depositary agent to issue, in lieu of certificates for such Preferred Shares or Common Shares, depositary receipts representing
the number of such Preferred Shares (or fractions thereof) or Common Shares (or fractions thereof) to be exchanged (in which case
the certificates for such Preferred Shares or Common Shares to be represented by such receipts shall be deposited by the transfer
agent with the depositary agent). If the Board elects to mandatorily exchange any Rights under Section 11(b)(i), the
Board may, at its option and without limiting any rights the Company may have under Section 26, cause the Company to
enter into such arrangements or implement such procedures as it deems necessary or appropriate, in its sole discretion, for the
purpose of ensuring that the Exchange Consideration is not received by holders of Rights that have become null and void pursuant
to Section 7(e), including entering into a trust agreement in such form and with such terms as the Board shall then
approve (the “Trust Agreement”). If the Board so directs, the Company shall enter into the Trust Agreement and
shall issue to the trust created by such agreement (the “Trust”) all or a portion (as designated by the Board)
of the Exchange Consideration distributable pursuant to the exchange, and all holders of Rights entitled to receive such Exchange
Consideration pursuant to the exchange shall be entitled to receive such Exchange Consideration (and any dividends paid or distributions
made with respect to any securities constituting such Exchange Consideration after the date on which such securities are deposited
in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the Trust Agreement. Prior
to effecting an exchange and distributing such Exchange Consideration, 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 Affiliates and Associates (or former Beneficial Owners thereof and their Affiliates and Associates) as the Company
shall reasonably request in order to determine if such Rights are null and void. If any Person shall fail to comply with such request,
the Company shall be entitled conclusively to deem the Rights formerly held by such Person to be null and void pursuant to Section 7(e)
hereof and not transferable, exercisable or exchangeable in connection herewith.

 

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(c)          (i)
In the event that, directly or indirectly, any transactions specified in the following clause (A), (B) or (C) of this Section 11(c)(i)
(each such transaction being a “Business Combination”) shall be consummated:

 

(A)         the
Company shall consolidate with, or merge with and into, or participate in a statutory share exchange with, or otherwise effect
any business combination or similar transaction with, any Acquiring Person or any Affiliate or Associate of an Acquiring Person;

 

(B)         any
Acquiring Person or any Affiliate or Associate of an Acquiring Person shall merge with and into, or participate in a statutory
share exchange with, or otherwise effect any business combination or similar transaction with, the Company and, in connection with
such merger, statutory share exchange, business combination or similar transaction, all or part of the outstanding Common Shares
shall be changed into or exchanged for capital stock or other securities of the Company or of any Acquiring Person or Affiliate
or Associate of an Acquiring Person or cash or any other property; or

 

(C)         the
Company shall sell, lease, license, exchange or otherwise transfer or dispose of (or one or more of its Subsidiaries shall sell,
lease, license, exchange or otherwise transfer or dispose of), in one or more transactions, the Major Part of the assets of the
Company and its Subsidiaries (taken as a whole) to any Acquiring Person or any Affiliate or Associate of an Acquiring Person,

 

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then, in each such case, proper provision
shall be made so that each holder of a Right, except as provided in Section 7(e), shall thereafter have the right to
receive, upon the exercise thereof for the Purchase Price in accordance with the terms of this Agreement, the securities specified
below (or, at such holder’s option, the securities specified in Section 11(a) if the Company is the surviving
corporation in such Business Combination):

 

(1)           if
the Principal Party in such Business Combination has Registered Common Shares outstanding, each Right shall thereafter represent
the right to receive, upon the exercise thereof for the Purchase Price in accordance with the terms of this Agreement, such number
of Registered Common Shares of such Principal Party, free and clear of all liens, encumbrances or other adverse claims, as shall
have an aggregate Market Value as of the time of exercise thereof equal to the result obtained by multiplying the Purchase Price
by two;

 

(2)           if
the Principal Party in such Business Combination does not have Registered Common Shares outstanding, each Right shall thereafter
represent the right to receive, upon the exercise thereof for the Purchase Price in accordance with the terms of this Agreement,
at the election of the holder of such Right at the time of the exercise thereof, any of:

 

(i)          if
the Principal Party in such Business Combination has Common Shares listed on or admitted to trading on any recognized foreign stock
exchange, such number of Common Shares of such Principal Party, free and clear of all liens, encumbrances or other adverse claims,
as shall have an aggregate Market Value as of the time of exercise thereof equal to the result obtained by multiplying the Purchase
Price by two;

 

(ii)         such
number of Common Shares of the Surviving Person in such Business Combination (if the Principal Party is also the Surviving Person
in such Business Combination) as shall have an aggregate Book Value immediately after giving effect to such Business Combination
equal to the result obtained by multiplying the Purchase Price by two;

 

(iii)        such
number of Common Shares of the Principal Party in such Business Combination (if the Principal Party is not also the Surviving Person
in such Business Combination) as shall have an aggregate Book Value immediately after giving effect to such Business Combination
equal to the result obtained by multiplying the Purchase Price by two; or

 

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(iv)        if
the Principal Party in such Business Combination is an Affiliate of one or more Persons that has Registered Common Shares outstanding,
such number of Registered Common Shares of whichever of such Affiliates of the Principal Party has Registered Common Shares with
the greatest aggregate Market Value on the date of consummation of such Business Combination as shall have an aggregate Market
Value on the date of such Business Combination equal to the result obtained by multiplying the Purchase Price by two.

 

(ii)         The
Company shall not consummate any Business Combination unless each issuer of Common Shares for which Rights may be exercised, as
set forth in this Section 11(c), shall have sufficient authorized Common Shares that have not been issued or reserved
for issuance (and which shall, when issued upon exercise thereof in accordance with this Agreement, be validly issued, fully paid
and nonassessable and free of preemptive rights, rights of first refusal or any other restrictions or limitations on the transfer
of ownership thereof) to permit the exercise in full of the Rights in accordance with this Section 11(c) and unless
prior thereto:

 

(A)         a
registration statement under the Securities Act on an appropriate form, with respect to the Rights and the Common Shares of such
issuer purchasable upon exercise of the Rights, shall be effective under the Securities Act; and

 

(B)         the
Company and each such issuer shall have:

 

(1)           executed
and delivered to the Rights Agent a supplemental agreement providing for the assumption by such issuer of the obligations set forth
in this Section 11(c) (including the obligation of such issuer to issue Common Shares upon the exercise of Rights in
accordance with the terms set forth in Sections 11(c)(i) and 11(c)(iii)) and further providing that such issuer,
at its own expense, shall use its best efforts to:

 

(i)          cause
a registration statement under the Securities Act on an appropriate form, with respect to the Rights and the Common Shares of such
issuer purchasable upon exercise of the Rights, to remain effective (with a prospectus at all times meeting the requirements of
the Securities Act) until the Expiration Date;

 

(ii)         qualify
or register the Rights and the Common Shares of such issuer purchasable upon exercise of the Rights under the “blue sky”
or securities laws of such jurisdictions as may be necessary or appropriate; and

 

(iii)        list
the Rights and the Common Shares of such issuer purchasable upon exercise of the Rights on each national securities exchange on
which the Common Shares were listed prior to the consummation of the Business Combination or, if the Common Shares were not listed
on a national securities exchange prior to the consummation of the Business Combination, on a national securities exchange;

 

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(2)           furnished
to the Rights Agent a written opinion of independent counsel stating that such supplemental agreement is a valid, binding and enforceable
agreement of such issuer; and

 

(3)           filed
with the Rights Agent a certificate of a nationally recognized firm of independent accountants setting forth the number of Common
Shares of such issuer that may be purchased upon the exercise of each Right after the consummation of such Business Combination.

 

(iii)        After
consummation of any Business Combination and subject to the provisions of Section 11(c)(ii), (A) each issuer of Common
Shares for which Rights may be exercised as set forth in this Section 11(c) shall be liable for, and shall assume,
by virtue of such Business Combination, all the obligations and duties of the Company pursuant to this Agreement, (B) the term
“Company” shall thereafter be deemed to refer to such issuer, (C) each such issuer shall take such steps in connection
with such consummation as may be necessary to assure that the provisions of this Agreement (including Sections 11(a)
and 11(c)) shall thereafter be applicable, as nearly as reasonably may be, in relation to its Common Shares thereafter deliverable
upon the exercise of the Rights, (D) the number of Common Shares of each such issuer thereafter receivable upon exercise of any
Right shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions
of Sections 11 and 12 and (E) the other provisions of this Agreement (including Sections 7, 9
and 10) with respect to the Preferred Shares shall apply, as nearly as reasonably may be, on like terms to any such Common
Shares.

 

(iv)        In
case the issuer of Common Shares for which Rights may be exercised, as set forth in this Section 11(c), has a provision
in any of its authorized securities or in its certificate of incorporation or by-laws or other agreement or instrument governing
its affairs, or a provision in any rights, warrants or other instruments or securities outstanding, which provision would have
the effect of (A) causing such issuer to issue (other than to holders of Rights pursuant to this Section 11(c)), in
connection with, or as a consequence of, the consummation of a transaction referred to in this Section 11(c), Common
Shares of such issuer at less than the then Market Value per share thereof or securities exercisable for, or convertible into,
Common Shares of such issuer at less than such then Market Value, (B) providing for any special payment, tax or similar provision
in connection with the issuance of the Common Shares of such issuer pursuant to the provisions of Section 11(c), or
(C) diminishing or otherwise eliminating the benefits intended to be afforded by the Rights, then, in such event, the Company
hereby agrees with each holder of Rights that it shall not consummate any such transaction unless prior thereto the Company and
such issuer shall have executed and delivered to the Rights Agent a supplemental agreement providing that the provision in question
of such issuer shall have been canceled, waived or amended, in a manner satisfactory to the Board, or that the authorized securities
shall be redeemed, so that the applicable provision will have no effect in connection with, or as a consequence of, the consummation
of the proposed transaction.

 

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SECTION 12. Certain
Adjustments.

 

(a)          To
preserve the actual or potential economic value of the Rights, if at any time after the date of this Agreement there shall be any
change in the Common Shares or the Preferred Shares, whether by reason of stock dividends, stock splits, reclassifications, recapitalizations,
mergers, consolidations, combinations or exchanges of securities, split-ups, split-offs, spin-offs, liquidations, other similar
changes in capitalization, any distribution or issuance of cash, assets, evidences of indebtedness or subscription rights, options
or warrants to holders of Common Shares or Preferred Shares, as the case may be (other than distribution of the Rights or regular
quarterly cash dividends), or otherwise, then, in each such event the Board shall make such appropriate adjustments in the number
of Preferred Shares (or the number and kind of other securities) issuable upon exercise of each Right, the Purchase Price and Redemption
Price in effect at such time and the number of Rights outstanding at such time (including the number of Rights or fractional Rights
associated with each Common Share, as the case may be) such that following such adjustment such event shall not have had the effect
of reducing or limiting the benefits the holders of the Rights would have had absent such event.

 

(b)          If,
as a result of an adjustment made pursuant to Section 12(a), the holder of any Right thereafter exercised shall become
entitled to receive any securities other than Preferred Shares, thereafter the number of such securities so receivable upon exercise
of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the
provisions of Sections 11 and 12 and the other provisions of this Agreement (including Sections 7,
9 and 10) with respect to the Preferred Shares shall apply, as nearly as reasonably may be, on like terms to any
such other securities.

 

(c)          All
Rights originally issued by the Company subsequent to any adjustment made to the amount of Preferred Shares or other securities
relating to a Right shall evidence the right to purchase, for the Purchase Price, the adjusted number and kind of securities purchasable
from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided in this Agreement.

 

(d)          Right
Certificates shall represent the right to purchase Preferred Shares or other securities purchasable from time to time hereunder,
including any adjustment or change in the securities purchasable upon exercise of the Rights, even though such certificates may
continue to express the securities purchasable at the time of issuance of the initial Right Certificates.

 

(e)          In
any case in which action taken pursuant to Section 12(a) requires that an adjustment 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 issuing to the holder of any Right exercised after such record date the Preferred Shares and/or other securities,
if any, issuable upon such exercise over and above the Preferred Shares and/or other securities, if any, issuable before giving
effect to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or other appropriate
instrument evidencing such holder’s right to receive such additional securities upon the occurrence of the event requiring
such adjustment.

 

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SECTION 13. Certificate
of Adjustment. Whenever an adjustment is made or any event occurs affecting the Rights or their exercisability (including an
event which causes the Rights to become null and void) as provided in Section 11 or 12, the Company shall (a) promptly
prepare a certificate setting forth such adjustment or describing such event and a brief, reasonably detailed statement of the
facts, computations and methodology accounting for such adjustment, (b) promptly file with the Rights Agent and with each
transfer agent for the Preferred Shares, a copy of such certificate and (c) mail a brief summary thereof to each holder of a Right
Certificate (or, if prior to the Distribution Date, to each holder of Common Shares) in accordance with Section 25,
provided that the failure to prepare, file or mail such certificate or summary shall not affect the validity of such adjustment.
The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein contained
and, subject to Section 21(c) shall have no duty or liability with respect to, and shall not be deemed to have knowledge
of, any adjustment or any such event unless it shall have received such a certificate. The Rights Agent shall not be obligated
or responsible for calculating any adjustment hereunder. Nor shall the Rights Agent be under any obligation to determine when an
adjustment event or any condition precedent thereto has occurred.

 

SECTION 14. Additional
Covenants.

 

(a)          Notwithstanding
any other provision of this Agreement, no adjustment to the number of Preferred Shares (or fractions of a share) or other securities
for which a Right is exercisable or the number of Rights outstanding or associated with each Common Share or any similar or other
adjustment shall be made or be effective if such adjustment would have the effect of reducing or limiting the benefits the holders
of the Rights would have had absent such adjustment, including the benefits under Sections 11 and 12, unless
the terms of this Agreement are amended so as to preserve such benefits.

 

(b)          The
Company covenants and agrees that, after the Distribution Date, except as permitted by Section 26, it shall not take
(or permit any Subsidiary of the Company to take) any action if at the time such action is taken it is intended or reasonably foreseeable
that such action will reduce or otherwise limit the benefits the holders of Rights would have had absent such action, including
the benefits under Sections 11 and 12. Any action taken by the Company during any period after any Person becomes
an Acquiring Person but prior to the Distribution Date shall be null and void unless such action could be taken under this Section 14(b)
from and after the Distribution Date. The Company shall not consummate any Business Combination if: (i) any issuer of Common Shares
for which Rights may be exercised after such Business Combination in accordance with Section 11(c) shall have taken
any action that reduces or otherwise limits the benefits the holders of Rights would have had absent such action, including the
benefits under Sections 11 and 12; (ii) at the time of or immediately after such consolidation, merger, sale,
transfer or other transaction there are any rights, warrants or other instruments or securities outstanding or agreements in effect
which would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights; (iii) prior
to, simultaneously with or immediately after such consolidation, merger, sale, transfer or other transaction, the stockholders
of the Person who constitutes, or would constitute, the issuer for purposes of Section 11(c) hereof shall have received
a distribution of Rights previously owned by such Person or any of its Affiliates or Associates; or (iv) the form, nature
or jurisdiction of organization of the issuer would preclude, limit or in any way restrict the exercisability of the Rights.

 

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SECTION 15. Fractional
Rights and Fractional Shares.

 

(a)          The
Company may, but shall not be required to, issue fractions of Rights or distribute Right Certificates which evidence fractional
Rights. In lieu of such fractional Rights, the Company may pay to the registered holders of the Right Certificates with regard
to which such fractional Rights would otherwise be issuable an amount in cash equal to the same fraction of the current market
value of a whole Right. For purposes of this Section 15(a), the current market value of a whole Right shall be the
closing price of the Rights (as determined pursuant to the second sentence of the definition of Market Value contained in Section 1)
for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable.

 

(b)          The
Company may, but shall not be required to, issue fractions of Preferred Shares (other than one one-thousandths (1/1000ths) of a
Preferred Share (as such fraction may be adjusted as provided in this Agreement) or any integral multiple thereof) upon exercise
of the Rights or distribute certificates that evidence fractional Preferred Shares. In lieu of fractional Preferred Shares, the
Company may elect to (i) utilize a depository arrangement as provided by the terms of the Preferred Shares or (ii) in the case
of a fraction of a Preferred Share (other than one one-thousandths (1/1,000ths) of a Preferred Share (as such fraction may adjusted
as provided in this Agreement) or any integral multiple thereof), pay to the registered holders of Right 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 Preferred
Share, if any are outstanding and publicly traded (or the same fraction of the current market value of one Common Share times the
Formula Number (as defined in the Certificate of Amendment) if the Preferred Shares are not outstanding and publicly traded). For
purposes of this Section 15(b), the current market value of a Preferred Share (or Common Share) shall be the closing
price of a Preferred Share (or Common Share) (as determined pursuant to the second sentence of the definition of Market Value contained
in Section 1) for the Trading Day immediately prior to the date of such exercise. If, as a result of an adjustment
made pursuant to Section 12(a), the holder of any Right thereafter exercised shall become entitled to receive any securities
other than Preferred Shares, the provisions of this Section 15(b) shall apply, as nearly as reasonably practicable,
on like terms to such other securities.

 

(c)          The
Company may, but shall not be required to, issue fractions of Common Shares upon exchange of Rights pursuant to Section 11(b),
or to distribute certificates that evidence fractional Common Shares. In lieu of such fractional Common Shares, the Company may
pay to the registered holders of the Right Certificates with regard to which such fractional Common Shares would otherwise be issuable
an amount in cash equal to the same fraction of the current Market Value of one Common Share as of the date on which a Person became
an Acquiring Person.

 

(d)          Each
holder of Rights by the acceptance of such Rights expressly waives such holder’s right to receive any fractional Rights or
any fractional shares upon exercise of a Right except as provided in this Section 15.

 

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

 

(f)          The
Company shall provide an initial funding of one thousand dollars ($1,000) for the purpose of issuing cash in lieu of fractional
shares to the extent cash is required to be paid in lieu of fractional shares. From time to time thereafter, the Rights Agent may
request additional funding to cover fractional payments. The Rights Agent shall have no obligation to make fractional payments
unless the Company shall have provided the necessary funds to pay in full all amounts due and payable with respect thereto.

 

SECTION 16. Rights
of Action.

 

(a)          All
rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under Sections 19
and 21, are vested in the respective registered holders of the Right Certificates (and, prior to the Distribution Date,
the registered holders of the Common Shares); and any registered holder of any Right Certificate (or, prior to the Distribution
Date, of the Common Shares), without the consent of the Rights Agent or of the holder of any other Right Certificate (or, prior
to the Distribution Date, of the Common Shares) may, in such holder’s own behalf and for such holder’s own benefit,
enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect
of, such holder’s right to exercise the Rights evidenced by such Right Certificate in the manner provided in such Right Certificate
and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement and shall be entitled to specific
performance of the obligations of any Person under, and injunctive relief against actual or threatened violations of the obligations
of any Person subject to, this Agreement. 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, judgment decree 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 must use reasonable
efforts to have any such injunction, order, judgment, decree or ruling lifted or otherwise overturned as soon as possible.

 

SECTION 17. Transfer
and Ownership of Rights and Right Certificates.

 

(a)          Prior
to the Distribution Date, the Rights shall be transferable only in connection with the transfer of the Common Shares and the Right
associated with each such Common Share shall be automatically transferred upon the transfer of each such Common Share to the transferee
thereof.

 

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(b)          After
the Distribution Date, the Right Certificates shall be transferable, subject to Section 7(e), only on the registry
books of the Rights Agent if surrendered at the principal office of the Rights Agent, duly endorsed or accompanied by a proper
instrument of transfer and with the appropriate forms and, subject to the reasonable satisfaction of the Rights Agent and the Company,
certificates properly completed and duly executed.

 

(c)          The
Company and the Rights Agent may deem and treat the Person in whose name a Right Certificate (or, prior to the Distribution Date,
the associated Common Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding
any notations of ownership or writing on the Right Certificates or the associated certificate for Common Shares made by anyone
other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be
affected by any notice to the contrary.

 

SECTION 18. Right
Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right Certificate shall be entitled to vote or receive
dividends or other distributions or be deemed, for any purpose, the holder of the Preferred Shares or of any other securities of
the Company which may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein
or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder
of the Company, including any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting
thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders,
or to receive dividends or other distributions or subscription rights, or otherwise, until the Right or Rights evidenced by such
Right Certificate shall have been exercised in accordance with the provisions hereof.

 

SECTION 19. Concerning
the Rights Agent.

 

(a)          The
Company shall pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the preparation, negotiation,
delivery, amendment, administration and execution of this Agreement and the exercise and performance of its duties hereunder, including
any taxes or governmental charges imposed as a result of the action taken by it hereunder (other than any taxes on the fees payable
to it). The provisions of this Section 19 and Section 21 below shall survive the termination of this Agreement,
the exercise or expiration of the Rights and the resignation, replacement or removal of the Rights Agent.

 

(b)          The
Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in
connection with its acceptance and administration of this Agreement and the exercise and performance of its duties hereunder in
reliance upon any Right Certificate or certificate for the Common Shares, or for other securities of the Company, instrument of
assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement,
or other paper or document believed by it to be genuine and to be signed, executed and, where expressly required hereunder, verified
or acknowledged, by the proper Person or Persons, or upon the written advice or opinion of counsel as set forth in Section 21.
The Rights Agent shall not be deemed to have knowledge of any event of which it was supposed to receive notice thereof hereunder
and, subject to Section 21(c), the Rights Agent shall be fully protected and incur no liability for failing to take
action in connection therewith unless and until it has received such notice in writing.

 

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SECTION 20. 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 shareholder services or stock transfer or corporate trust 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 the provisions of Section 22. In case, at the time such successor Rights Agent shall succeed
to the agency created by this Agreement, any of the Right Certificates shall have been countersigned but not delivered, any such
successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned;
and, in case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign
such Right Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in
all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement.

 

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

 

SECTION 21. Duties
of Rights Agent. The Rights Agent undertakes to perform only the duties and obligations expressly imposed by this Agreement
(and no implied duties and obligations) upon the following terms and conditions, by all of which the Company and the holders of
Right Certificates (or, prior to the Distribution Date, of the Common Shares), by their acceptance thereof, shall be bound:

 

(a)          The
Rights Agent may consult with legal counsel (who may be legal counsel for the Company or legal counsel for the Rights Agent), and
the written advice or opinion of such counsel shall be full and complete authorization and protection to the Rights Agent and,
subject to Section 21(c), the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted
by it in accordance with such written advice or opinion.

 

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(b)          Whenever
in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter
(including the identity of any Acquiring Person and the determination of the current per share market price of any security) 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 any one of the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the President,
the Chief Legal Officer, any Vice President, the Treasurer or the Secretary of the Company and delivered to the Rights Agent; and
such certificate shall be full and complete authorization and protection to the Rights Agent and, subject to Section 21(c),
the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted by it in reliance upon such
certificate.

 

(c)          The
Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence or willful misconduct
(which gross negligence or willful misconduct must be determined by a final, non-appealable judgment of a court of competent jurisdiction).
In no event shall the Rights Agent be liable for special, punitive, indirect, consequential or incidental loss or damage of any
kind whatsoever arising out of any act or failure to act hereunder (including but not limited to lost profits), even if the Rights
Agent has been advised of the likelihood of such loss or damage.

 

(d)          Subject
to Section 21(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 Right Certificates (except as to its countersignature thereof) or be required to verify the
same, but all such statements and recitals are and shall be deemed to have been made by the Company only.

 

(e)          The
Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except
its countersignature thereof) and, subject to Section 21(c), shall have no liability therefor; nor shall it be responsible
for any breach by the Company of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it
be responsible for any change in the exercisability of the Rights (including the Rights becoming null and void pursuant to Section 7(e))
or any change or adjustment in the terms of Rights as required under the provisions of Section 11 or 12 or responsible
for the manner, method or amount of any such change or adjustment or the ascertaining of the existence of facts that would require
any such change or adjustment (except with respect to the exercise of Rights evidenced by Right Certificates after actual notice
of any such adjustment pursuant to Section 13); nor shall it by any act hereunder be deemed to make any representation or
warranty as to the authorization or reservation of any Preferred Shares or Common Shares to be issued pursuant to this Agreement
or any Right Certificate or as to whether any Preferred Shares or Common Shares will, when so issued, be validly authorized and
issued, fully paid and nonassessable.

 

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

 

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(g)          The
Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from
any one of the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the President, a Vice President,
the Secretary, Assistant Secretary, Treasurer or the Chief Legal Officer of the Company, in connection with its duties and such
instructions shall be full authorization and protection to the Rights Agent and, subject to Section 21(c), the Rights
Agent shall not be liable for or in respect of any action taken, suffered or omitted by it in accordance with any such instructions
or for any delay in acting while waiting for such instructions. In the event of any conflict or inconsistency between or among
any such instructions, the later in time shall govern. 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 by the Rights
Agent under this Agreement and the date on and/or after which such action shall be taken or suffered or such omission shall be
effective. Subject to Section 21(c), the Rights Agent shall not be liable for any action taken or suffered by, or omission
of, the Rights Agent in accordance with a proposal included in any such application on or after the date specified in such application;
provided that such date is at least three days after the date such application is delivered to the Company.

 

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

 

(i)          If,
with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the certificate contained in the
form of assignment or the form of election to purchase set forth on the reverse thereof, as the case may be, has either not been
properly completed or indicates an affirmative response to any clause thereof, the Rights Agent shall not take any further action
with respect to such requested exercise or transfer without first consulting with the Company.

 

(j)          The
Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder or by or through
its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct
of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct, absent
gross negligence or willful misconduct (each as determined by a final judgment of a court of competent jurisdiction) in the selection
and continued employment thereof.

 

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(k)          The
Company shall indemnify the Rights Agent for, and hold the Rights Agent harmless against, any loss, liability, damage, claim or
expense (including reasonable fees and expenses of legal counsel) that the Rights Agent may incur resulting from any action taken,
suffered or omitted by the Rights Agent in connection with the acceptance, administration, exercise and performance of its duties
under this Agreement; provided, however, that the Rights Agent shall not be indemnified or held harmless with respect
to any such loss, liability, damage or expense incurred by the Rights Agent as a result of, or arising out of, its own gross negligence
or willful misconduct (as determined by a court of competent jurisdiction in a final, non-appealable decision). In the event the
Rights Agent shall have notice of any such assertion of an action, proceeding, suit or claim or have 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, the Rights
Agent shall promptly notify the Company of the assertion of any action, proceeding, suit or claim against the Rights Agent. 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. If a final, non-appealable judgment of a court of competent jurisdiction shall be issued in favor of the Rights Agent
in respect of an action by the Rights Agent to enforce the indemnification provisions of this Section 21(k), then the
Company shall reimburse the Rights Agent’s for all reasonable costs and expenses in enforcing such indemnification provisions
and its rights to reimbursement hereunder.

 

(l)          No
provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder or in the exercise of its rights if it believes that repayment of such funds
or adequate indemnification against such risk or liability is not reasonably assured to it.

 

(m)          Notwithstanding
anything contained herein to the contrary, the Rights Agent’s aggregate liability during any term of this Agreement with
respect to, arising from, or arising in connection with this Agreement, or from all services provided or omitted to be provided
under this Agreement, whether in contract, or in tort, or otherwise, is limited to, and shall not exceed, the amounts paid hereunder
by the Company to the Rights Agent as fees and charges, but not including reimbursable expenses, during the term of this Agreement.

 

(n)          The
Rights Agent shall not have any duty or responsibility in the case of the receipt of any written demand from any holder 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.

 

(o)          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 without limitation obligations
under applicable regulation or law.

 

(p)          The
Rights Agent shall act hereunder solely as agent for the Company, and its duties shall be determined solely by the express provisions
hereof (and no duties or obligations shall be inferred or implied). The Rights Agent shall not assume any obligations or relationship
of agency or trust with any of the owners or holders of the Rights.

 

(q)          The
Rights Agent may rely on and be fully authorized and protected in acting or failing to act upon (a) 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 (b) any law, act, regulation or any interpretation of the same even though such law, act, or regulation may thereafter
have been altered, changed, amended or repealed.

 

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(r)          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 in connection with the performance of its duties hereunder,
the Rights Agent shall notify the Company in writing of such ambiguity or uncertainty and, may, in its sole discretion, refrain
from taking any action, and shall be fully protected and shall not be liable in any way to the Company, the holder of any Right
Certificate or any other person or entity for refraining from taking such action, unless the Right Agent receives written instructions
signed by the Company which eliminates such ambiguity or uncertainty to the reasonable satisfaction of the Rights Agent.

 

SECTION 22. Change
of Rights Agent. Subject to Section 25, the Rights Agent or any successor Rights Agent may resign and be discharged
from its duties under this Agreement upon 30 days’ notice in writing mailed to the Company and, in the event the Rights Agent
or one of its Affiliates is not the transfer agent to the Company, to each transfer agent of the Common Shares and the Preferred
Shares known to the Rights Agent. The Company shall notify the holders of the Right Certificates (or, prior to the Distribution
Date, of the Common Shares) by first-class mail. In the event any transfer agency relationship in effect between the Company and
the Rights Agent or any of its Affiliates terminates, the Rights Agent will be deemed to have resigned automatically and be discharged
from its duties as Rights Agent under this Agreement as of the effective date of such termination, and the Company shall be responsible
for distributing any required notice to other Persons. The Company may remove the Rights Agent or any successor Rights Agent upon
30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and in the event the
Rights Agent or any one of its Affiliates is not the transfer agent to the Company, to each transfer agent of the Common Shares
and the Preferred Shares by registered or certified mail, and to the holders of the Right Certificates (or, prior to the Distribution
Date, of the Common Shares) by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable
of acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within
a period of 30 days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity
by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (or, prior to the Distribution Date, of
the Common Shares) (who shall, with such notice, submit such holder’s Right Certificate or, prior to the Distribution Date,
the certificate representing such holder’s Common Shares, for inspection by the Company), then the registered holder of any
Right Certificate (or, prior to the Distribution Date, of the Common Shares) 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 Person organized and doing business under the laws of the United States, in good standing, which is authorized under such laws
to exercise stock transfer or corporate trust 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 (with its direct or indirect parents and Subsidiaries)
and surplus of at least $50,000,000; provided, however, that the principal transfer agent for the Common Shares shall
in any event be qualified to be the Rights Agent. After appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor
Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute
and deliver any reasonable further assurance, conveyance, act or deed necessary for the purpose, without limiting any of its rights
or remedies hereunder. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Common Shares and the Preferred Shares, and mail a notice thereof
in writing to the registered holders of the Right Certificates (or, prior to the Distribution Date, of the Common Shares).

 

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SECTION 23. Issuance
of Additional Rights and Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the
contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by its
Board to reflect any adjustment or change made in accordance with the provisions of this Agreement. In addition, in connection
with the issuance or sale of Common Shares following the Distribution Date and prior to the earlier of the Redemption Date and
the Expiration Date, the Company (a) shall, with respect to Common Shares so issued or sold pursuant to the exercise of stock options
or under any employee plan or arrangement, or upon the exercise, conversion or exchange of securities, notes or debentures issued
by the Company, and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue Right Certificates representing
the appropriate number of Rights in connection with such issuance or sale; provided, however, that (i) no such Right
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 Right Certificate would be issued,
(ii) no such Right 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 Right Certificate shall be issued to an Acquiring Person or an Affiliate or Associate
of an Acquiring Person.

 

SECTION 24. Redemption
and Termination.

 

(a)          The
Board may, at its option, at any time prior to the earlier of (i) the Distribution Date and (ii) the Expiration Date, order the
redemption of all, but not fewer than all, of the then outstanding Rights at the Redemption Price (the date of such redemption
being the “Redemption Date”), and the Company, at its option, may pay the Redemption Price either in cash or
Common Shares or other securities of the Company deemed by the Board, in the exercise of its sole discretion, to be at least equivalent
in value to the Redemption Price.

 

(b)          Immediately
upon the action of the Board ordering the redemption of the Rights (or at such later time as the Board may establish for the effectiveness
of such redemption), and without any further action and without any notice, the right to exercise the Rights will terminate and
the only right thereafter of the holders of Rights shall be to receive the Redemption Price. Promptly 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 all such holders at their last addresses as they appear upon the registry
books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Shares.
Each such notice of redemption shall state the method by which payment of the Redemption Price will be made. The notice, if mailed
in the manner herein provided, shall be conclusively presumed to have been duly given, whether or not the holder of Rights receives
such notice. In any case, failure to give such notice by mail, or any defect in the notice, to any particular holder of Rights
shall not affect the sufficiency of the notice to other holders of Rights. Neither the Company nor any of its Affiliates or Associates
may redeem, acquire or purchase for value any Rights at any time in any manner except as specifically set forth in this Section 24(b)
or in Section 11(b) or in connection with the purchase of Common Shares prior to the Distribution Date.

 

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SECTION 25. Notices.
Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of a Right Certificate
(or, prior to the Distribution Date, of the Common Shares) to or on the Company shall be sufficiently given or made in writing
and when received if sent by first-class mail, postage-prepaid, or a nationally recognized overnight courier, addressed (until
another address is filed in writing with the Rights Agent) as follows:

 

Aceto Corporation

4 Tri Harbor Court

Port Washington, New York 11050

Attention: Chief Legal Officer

 

With a copy to:

 

Lowenstein Sandler LLP

1251 Avenue of the Americas

New York, New York 10020

Attention: Steven E. Siesser, Esq.

 

Subject to the provisions
of Section 22, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder
of a Right Certificate (or, prior to the Distribution Date, of the Common Shares) to or on the Rights Agent shall be sufficiently
given or made in writing and sent if sent by first-class mail, postage-prepaid, or nationally recognized overnight courier addressed
(until another address is filed in writing with the Company) as follows:

 

American Stock Transfer & Trust Company,
LLC

6201 15th Avenue

Brooklyn, New York 11219

Attention: Rights Agent Services

 

Notices or demands
authorized by this Agreement to be given or made by the Company or the Rights Agent to any holder of a Right Certificate (or, prior
to the Distribution Date, of the Common Shares) shall be sufficiently given or made in writing and sent by first-class mail, postage-prepaid,
or nationally recognized overnight courier, whether or not actually received, addressed to such holder at the address of such holder
as shown on the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent
for the Common Shares.

 

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SECTION 26. Supplements
and Amendments. At any time prior to the Distribution Date, and subject to the penultimate sentence of this Section 26,
the Company may, and the Rights Agent shall if the Company so directs, supplement or amend any provision of this Agreement in any
manner which the Company may deem necessary or desirable (including the date on which the Distribution Date or Expiration Date
shall occur, the amount of the Purchase Price, the definition of “Acquiring Person” or the time during which the Rights
may be redeemed pursuant to Section 24) without the approval of any holder of the Rights. From and after the Distribution
Date, and subject to applicable law, the Company may, and the Rights Agent shall if the Company so directs, amend this Agreement
without the approval of any holders of Right Certificates (a) to cure any ambiguity or to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provision of this Agreement or (b) to otherwise change or supplement
any other provisions in this Agreement in any matter which the Company may deem necessary or desirable and which does not adversely
affect the interests of the holders of Right Certificates (other than an Acquiring Person or an Affiliate or Associate of an Acquiring
Person), any such supplement or amendment to be evidenced in writing and executed by the Company. Any supplement or amendment adopted
during any period after any Person has become an Acquiring Person but prior to the Distribution Date shall be null and void unless
such supplement or amendment could have been adopted under the prior sentence from and after the Distribution Date. All supplements
and amendments shall be in writing and must be authorized by the Board. Upon delivery of a certificate from an appropriate officer
of the Company that states that the proposed supplement or amendment complies with this Section 26, the Rights Agent
shall execute such supplement or amendment. Notwithstanding anything to the contrary contained in this Agreement, the Rights Agent
may, but shall not be obligated to, enter into any supplement or amendment that affects the Rights Agent’s own rights, duties,
obligations or immunities under this Agreement. In addition, notwithstanding anything to the contrary contained in this Agreement,
no supplement or amendment to this Agreement shall be made that reduces the Redemption Price (except as required by Section
12(a)). Time shall be of the essence of this Agreement, including as to entering into any amendments or supplements pursuant
to this Section 26.

 

SECTION 27. 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 28. Benefits
of Rights Agreement; Determinations and Actions by the Board, etc.

 

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

 

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(b)          Except
as explicitly otherwise provided in this Agreement, the Board shall have the exclusive power and authority to administer this Agreement
and to exercise all rights and powers specifically granted to the Board or to the Company, or as may be necessary or advisable,
in the administration of this Agreement, including the right and power to (i) interpret the provisions of this Agreement and (ii)
make all determinations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem
or not redeem the Rights or to amend this Agreement and a determination of whether there is an Acquiring Person). All such actions,
calculations, interpretations and determinations that are done or made by the Board in good faith shall be final, conclusive and
binding on the Company, the Rights Agent (except with respect to rights, duties, obligations and immunities of the Rights Agent
hereunder) and the holders of Rights (or, prior to the Distribution Date, the Common Shares), as such, and all other Persons. The
Rights Agent shall always be entitled to assume that the Board acted in good faith and shall be fully protected and incur no liability
in reliance thereon. For all purposes of this Agreement, any calculation of the number of Common Shares outstanding at any particular
time, including for purposes of determining the particular percentage of such outstanding Common Shares of which any Person is
the Beneficial Owner, will be made in accordance with, as the Board deems to be applicable, the last sentence of Rule 13d-3(d)(1)(i)
of the General Rules and Regulations under the Exchange Act or the provisions of Section 382.

 

(c)          Nothing
contained in this Agreement shall be deemed to be in derogation of the obligation of the Board to exercise its fiduciary duty.
Without limiting the foregoing, nothing contained herein shall be construed to suggest or imply that the Board shall not be entitled
to reject any tender offer or other acquisition proposal, or to recommend that holders of Common Shares reject any tender offer,
or to take any other action (including the commencement, prosecution, defense or settlement of any litigation and the submission
of additional or alternative offers or other proposals) with respect to any tender offer or other acquisition proposal that the
Board believes is necessary or appropriate in the exercise of such fiduciary duty.

 

SECTION 29. Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority
to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall
remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

SECTION 30. Governing
Law. This Agreement and each Right Certificate issued hereunder shall be deemed to be a contract made under the law of the
State of New York and for all purposes shall be governed by and construed in accordance with the law of such State applicable to
contracts to be made and performed entirely within such State. The Company and each holder hereby irrevocably submits to the exclusive
jurisdiction of the courts of the State of New York sitting in New York County, or, if such court will lack subject matter jurisdiction,
the United States District Court for the Southern District of New York, over any suit, action or proceeding arising out of or relating
to this Agreement. The Company and each holder acknowledge that the forum designated by this Section 30 has a reasonable
relation to this Agreement and to such Persons’ relationship with one another. The Company and each holder 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 30. The Company
and each holder undertake not to commence any action subject to this Agreement in any forum other than the forum described in this
Section 30. The Company and each holder 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 will be conclusive and binding upon such Persons.

 

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SECTION 31. Counterparts;
Effectiveness. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to
this Agreement transmitted electronically shall have the same authority, effect and enforceability as an original signature. This
Agreement shall be effective as of the Close of Business on the date hereof.

 

SECTION 32. Descriptive
Headings. Descriptive headings of the several sections of this Agreement are inserted for convenience only and shall not control
or affect the meaning or construction of any of the provisions of this Agreement.

 

SECTION 33. Force
Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any delays or
failures in performance resulting from acts beyond its reasonable control including acts of God, terrorist acts, shortage of supply,
breakdowns or malfunctions, interruptions or malfunctions of computer facilities, or loss of data due to power failures or mechanical
difficulties with information storage or retrieval systems, labor difficulties, war or civil unrest.

 

SECTION 34. Process
to Seek Exemption. Any Person who desires to effect any acquisition of securities that would, if consummated, result in such
Person becoming an Acquiring Person (a “Requesting Person”) may, prior to such time and in accordance with this
Section 34, request that the Board grant an exemption with respect to such acquisition under this Agreement so that such
Person would be deemed to be an “Exempt Person” as defined in Section 1 for purposes of this Agreement
(an “Exemption Request”). An Exemption Request shall be in proper form and shall be delivered by overnight delivery
service or first-class mail, postage-prepaid, to the Secretary of the Company at the principal executive office of the Company.
The Exemption Request shall be deemed made upon receipt by the Secretary of the Company. To be in proper form, an Exemption Request
shall set forth (a) the name and address of the Requesting Person, (b) the number and percentage of Common Shares then Beneficially
Owned by the Requesting Person, together with all Affiliates and Associates of the Requesting Person, and (c) a reasonably detailed
description of the transaction or transactions by which the Requesting Person would propose to become an Acquiring Person and the
maximum number and percentage of Common Shares that the Requesting Person proposes to acquire. The Board, or a duly constituted
committee of Independent Directors, shall make a determination whether to grant an exemption in response to an Exemption Request
as promptly as practicable (and, in any event, within ten Business Days) after receipt thereof; provided, that the failure
of the Board (or any such committee) to make a determination within such period shall be deemed to constitute the denial by the
Board of the Exemption Request. The Requesting Person shall respond promptly to reasonable and appropriate requests for additional
information from the Board and its advisors to assist the Board in making its determination. The Board, or a duly constituted committee
of Independent Directors, shall only grant an exemption in response to an Exemption Request if the Board determines in its sole
discretion, or such committee determines in its sole discretion, that the acquisition of Beneficial Ownership of Common Shares
by the Requesting Person, considered alone or with other transactions (including past transactions or contemplated transactions),
(i) will not jeopardize or endanger the availability to the Company of its NOLs or other Tax Benefits, taking into account such
facts and circumstances as the Board (or any such committee) reasonably deems relevant or (ii) is otherwise in the best interests
of the Company. Any exemption granted hereunder may be granted in whole or in part, and may be subject to limitations or conditions
(including a requirement that the Requesting Person agree that it will not acquire Beneficial Ownership of Common Shares in excess
of the maximum number and percentage of shares approved by the Board), in each case, as and to the extent the Board, or a duly
constituted committee of Independent Directors, shall determine necessary or desirable to provide for the protection of the NOLs
and other Tax Benefits or as is otherwise in the best interests of the Company. The Exemption Request shall be considered and evaluated
by the Board, or a duly constituted committee of Independent Directors, and the action of a majority of such directors (or such
committee) shall be deemed to be the determination of the Board for purposes of such Exemption Request. Notwithstanding the Exemption
Request process as described in this Section 35, the Board may, in its sole discretion and without the need for an Exemption
Request, deem any business combination or other transaction as an Exempt Transaction, as such term is defined in the Agreement.

 

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SECTION 35. Tax
Benefits Review. In addition to the review and evaluation otherwise contemplated by this Agreement, the Board, or a duly constituted
committee of Independent Directors, shall review the calculation for determining whether an ownership change has occurred under
Section 382 once per year (or with such greater frequency as the Board (or any such committee), in its sole discretion, shall
determine is advisable). The Board (or any such committee) shall determine after such review whether maintenance of this Agreement
continues to be advisable in order to preserve the value of the NOLs and other Tax Benefits, taking into account such facts and
circumstances as the Board (or any such committee) reasonably deems relevant.

 

SECTION 36. Confidentiality.
The Rights Agent and the Company agree that all books, records, information and data pertaining to the business of the other party,
including inter alia, personal, non-public rights holder information, which are exchanged or received pursuant to the negotiation
or the carrying out of this Agreement, including the fees for services set forth in the attached schedule, shall remain confidential,
and shall not be voluntarily disclosed to any other person, except as may be required by law, including, without limitation, pursuant
to subpoenas from state or federal government authorities.

 

SECTION 37. Customer
Identification Program. The Company acknowledges that the Rights Agent is subject to the customer identification program (“Customer
Identification Program”) requirements under the USA PATRIOT Act and its implementing regulations, and that the Rights
Agent must obtain, verify and record information that allows the Rights Agent to identify the Company. Accordingly, prior to accepting
an appointment hereunder, the Rights Agent may request information from the Company that will help the Rights Agent to identify
the Company, including without limitation the Company’s physical address, tax identification number, organizational documents,
certificate of good standing, license to do business, or any other information that the Rights Agent deems necessary. The Company
agrees that the Rights Agent cannot accept an appointment hereunder unless and until the Rights Agent verifies the Company’s
identity in accordance with the Customer Identification Program requirements.

 

    -40-

     

    

 

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

 

	 	ACETO CORPORATION
	 	 	 
	 	By:	/s/ Steven S. Rogers
	 	 	Name: Steven S. Rogers
	 	 	Title:  Chief Legal Officer
	 	 
	 	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
	 	 	 
	 	By:	/s/ Jennifer Donovan
	 	 	Name: Jennifer Donovan
	 	 	Title: Senior Vice President

  

     

     

    

    

Exhibit A

 

Certificate of Amendment

 

     

     

    

 

CERTIFICATE OF AMENDMENT

 

OF THE

 

RESTATED CERTIFICATE OF INCORPORATION OF

 

ACETO CORPORATION

 

(Under Section 805 of the Business
Corporation Law)

 

The undersigned, being the Chief Executive
Officer of Aceto Corporation (the “Corporation”), hereby certifies as follows:

 

1.        The
name of the Corporation is Aceto Corporation. The name under which it was formed is Aceto Chemical Co. Inc.

 

2.        The
Corporation’s Certificate of Incorporation was filed by the Department of State on June 13, 1947, and was superseded by a
Restated Certificate of Incorporation filed by the Department of State on November 9, 2015 (such certificate of incorporation,
as amended and restated and in effect thereafter, the “Certificate of Incorporation”).

 

3.        The
Corporation is authorized to issue a total of 77,000,000 shares, consisting of 75,000,000 shares of common stock, par value $0.01
per share (“Common Stock”), and 2,000,000 shares of preferred stock, par value $2.50 per share (“Preferred Stock”).
An amendment of the Corporation’s Certificate of Incorporation effected by this Certificate of Amendment to add the designations,
rights and preferences of Series A Participating Cumulative Preferred Stock, par value $2.50 per share (“Series A Participating
Cumulative Preferred Stock”) is hereby made.

 

           As authorized by paragraph
THIRD of the Certificate of Incorporation, the Corporation’s Board of Directors (“Board”) has designated 1,000,000
shares of the authorized 2,000,000 shares of Preferred Stock as Series A Participating Preferred Stock, and has adopted resolutions
providing for the issuance of such series, including the number, designation and relative rights, preferences and limitations of
the shares of such series.

 

4.        To
effect the foregoing, the Corporation’s Certificate of Incorporation is hereby amended by the addition of the following
paragraph ELEVENTH, setting forth, in full, the number, designation, relative rights, preferences and limitations of the Series
A Participating Cumulative Preferred Stock:

 

“ELEVENTH: Pursuant to the authority
vested in the Board in accordance with the provisions of paragraph THIRD of the Certificate of Incorporation, a series of Preferred
Stock, par value $2.50 per share, of the Corporation be and hereby is created, and the designation and number of shares thereof
and the voting and other powers, preferences and relative, participating, optional or other rights of the shares of such series
and the qualifications, limitations and restrictions thereof are as follows:

 

      

     

    

 

Series A Participating
Cumulative Preferred Stock

 

1.             Designation
and Amount.  The shares of such series shall be designated as “Series A Participating Cumulative Preferred
Stock” (the “Series A Preferred Stock”). The number of shares initially constituting the Series A
Participating Cumulative Preferred Stock shall be 1,000,000; provided, however, that, if more than a total of 1,000,000
shares of Series A Preferred Stock shall be issuable upon the exercise of Rights (the “Rights”) issued
pursuant to the Tax Asset Protection Rights Agreement, dated as of November 5, 2018, between the Corporation and American Stock
Transfer & Trust Company, LLC (the “Rights Agreement”), the Board, pursuant to Section 502 of the New York
Business Corporation Law, shall direct by resolution or resolutions that a certificate be properly executed, acknowledged, filed
and recorded, in accordance with the provisions of Section 501 thereof, providing for the total number of shares of Series A
Preferred Stock authorized to be issued to be increased (to the extent that the Certificate then permits) to the largest number
of whole shares (rounded up to the nearest whole number) issuable upon exercise of such Rights.

 

2.             Dividends
and Distributions.

 

(A)          Subject
to the superior rights of the holders of shares of any other series of Preferred Stock or other class of capital stock of the Corporation
ranking superior to the shares of Series A Preferred Stock with respect to dividends, in preference to the holders of Common
Stock, par value $0.01 per share, of the Corporation (the “Common Stock”), and of any other junior stock, the
holders of shares of Series A Preferred Stock shall be entitled to receive, when, as and if declared by the Board, out of
the assets of the Corporation legally available therefor, (1) quarterly dividends payable in cash on the last day of each
fiscal quarter in each year, or such other dates as the Board shall approve (each such date being referred to herein as a “Quarterly
Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share
or a fraction of a share of Series A Preferred Stock, in the amount of $1.00 per whole share (rounded to the nearest cent)
less the amount of all cash dividends declared on the Series A Preferred Stock pursuant to the following clause (2) since
the immediately preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since
the first issuance of any share or fraction of a share of Series A Preferred Stock (the total of which shall not, in any event,
be less than zero) and (2) dividends payable in cash on the payment date for each cash dividend declared on the shares of Common
Stock in an amount per whole share (rounded to the nearest cent) equal to the Formula Number (as hereinafter defined) then in effect
times the cash dividends then to be paid on each share of Common Stock. In addition, if the Corporation shall pay any dividend
or make any distribution on the Common Stock payable in assets, securities or other forms of noncash consideration (other than
dividends or distributions solely in shares of Common Stock), then, in each such case, the Corporation shall simultaneously pay
or make on each outstanding whole share of Series A Preferred Stock a dividend or distribution in like kind equal to the Formula
Number then in effect times such dividend or distribution on each share of Common Stock. As used herein, the “Formula
Number” shall be 1,000; provided, however, that, if at any time after November 5, 2018, the Corporation shall (i) declare
or pay any dividend on the Common Stock payable in shares of Common Stock or make any distribution on the Common Stock in shares
of Common Stock, (ii) subdivide (by a stock split or otherwise) the outstanding shares of Common Stock into a larger number
of shares of Common Stock or (iii) combine (by a reverse stock split or otherwise) the outstanding shares of Common Stock into
a smaller number of shares of Common Stock, then in each such event the Formula Number shall be adjusted to a number determined
by multiplying the Formula Number in effect immediately prior to such event by a fraction, the numerator of which is the number
of shares of Common Stock that are outstanding immediately after such event and the denominator of which is the number of shares
of Common Stock that are outstanding immediately prior to such event (and rounding the result to the nearest whole number); and
provided further that, if at any time after November 5, 2018, the Corporation shall issue any shares of its capital stock in a
merger, reclassification, or change of the outstanding shares of Common Stock, then in each such event the Formula Number shall
be appropriately adjusted to reflect such merger, reclassification or change so that each share of Preferred Stock continues to
be the economic equivalent of a Formula Number of shares of Common Stock prior to such merger, reclassification or change.

 

    -2-  

     

    

 

(B)          The
Corporation shall declare a cash dividend on the Series A Preferred Stock as provided in Section 2(a) immediately prior
to or at the same time it declares a cash dividend on the Common Stock; provided, however, that, in the event no cash dividend
shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, during the period between the first
issuance of any share or fraction of a share of Series A Preferred Stock, a dividend of $0.10 per whole share on the Series A
Preferred Stock shall nevertheless accrue on such subsequent Quarterly Dividend Payment Date or the first Quarterly Dividend Payment
Date, as the case may be. The Board may fix a record date for the determination of holders of shares of Series A Preferred
Stock entitled to receive a dividend or distribution declared thereon, which record date shall be the same as the record date for
any corresponding dividend or distribution on the Common Stock.

 

(C)          Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from and after the Quarterly Dividend
Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date
for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue and be cumulative from
and after the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after
the record date for the determination of holders of shares of Series A Preferred Stock entitled to receive a quarterly dividend
and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative
from and after such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the
shares of Series A Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable
on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding.

 

(D)          So
long as any shares of Series A Preferred Stock are outstanding, no dividends or other distributions shall be declared, paid
or distributed, or set aside for payment or distribution, on the Common Stock unless, in each case, the dividend required by this
Section 2 to be declared on the Series A Preferred Stock shall have been declared and set aside.

 

(E)          The
holders of shares of Series A Preferred Stock shall not be entitled to receive any dividends or other distributions except
as herein provided.

 

    -3-  

     

    

 

3.            Voting
Rights. The holders of Series A Preferred Shares shall have the following voting rights:

 

(A)          Each
holder of Series A Preferred Stock shall be entitled to a number of votes equal to the Formula Number then in effect, for
each share of Series A Preferred Stock held of record, multiplied by the maximum number of votes per share which any holder
of Common Stock or stockholders generally then have with respect to such matter (assuming any holding period or other requirement
to vote a greater number of shares is satisfied).

 

(B)          Except
as otherwise herein provided or by the Certificate or applicable law, the holders of shares of Series A Preferred Stock and
the holders of shares of Common Stock shall vote together as one class for the election of directors of the Corporation and on
all other matters submitted to a vote of the holders of Common Stock of the Corporation.

 

(C)          Except
as provided herein or by the Certificate or applicable law, holders of Series A Preferred Stock shall have no special voting
rights and their consent shall not be required for authorizing or taking any corporate action.

 

4.            Certain
Restrictions.

 

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

 

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

 

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

 

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

 

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

 

    -4-  

     

    

 

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

  

5.            Liquidation
Rights.  Upon the liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, no distribution
shall be made (1) to the holders of any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution
or winding up) to the Series A Preferred Stock unless, prior thereto, the holders of shares of Series A Preferred Stock
shall have received an amount equal to the accrued and unpaid dividends and distributions thereon, whether or not declared, to
the date of such payment, plus an amount equal to the greater of (x) $1,000 per whole share or (y) an aggregate amount per share
equal to the Formula Number then in effect times the aggregate amount to be distributed per share to holders of Common Stock or
(2) to the holders of any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding
up) with the Series A Preferred Stock, except distributions made ratably on the Series A Preferred Stock and all other
such parity stock in proportion to the total amounts to which the holders of all such shares are entitled upon such liquidation,
dissolution or winding up. Neither the merger nor consolidation of the Corporation into or with another entity nor the merger or
consolidation of any other entity into or with the Corporation shall be deemed to be a liquidation, dissolution or winding up of
the Corporation within the meaning of this Section 5.

 

6.            Consolidation,
Merger, etc. In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or securities, cash or any other property, then in any
such case the then outstanding shares of Series A Preferred Stock shall at the same time be similarly exchanged or changed
into an amount per share equal to the Formula Number then in effect times the aggregate amount of stock, securities, cash or any
other property (payable in kind), as the case may be, into which or for which each share of Common Stock is exchanged or changed.
In the event both this Section 6 and Section 2 appear to apply to a transaction, this Section 6 will control. 

 

7.            No
Redemption; No Sinking Fund; No Conversion.  

 

(A)         The
shares of Series A Preferred Stock shall not be subject to redemption by the Corporation or at the option of any holder of
Series A Preferred Stock; provided, however, that, subject to Section 4(a)(iv), the Corporation
may purchase or otherwise acquire outstanding shares of Series A Preferred Stock in the open market or by offer to any holder
or holders of shares of Series A Preferred Stock.

 

(B)          The
shares of Series A Preferred Stock shall not (i) be subject to or entitled to the operation of a retirement, sinking fund
or purchase fund or (ii) be convertible into or exchangeable for shares of any other class or series.

 

    -5-  

     

    

 

8.            Ranking. 
The Series A Preferred Stock shall rank junior to all other series of Preferred Stock of the Corporation unless the Board
shall specifically determine otherwise in fixing the powers, preferences and relative, participating, optional and other special
rights of the shares of such Series And the qualifications, limitations and restrictions thereof.

 

9.            Fractional
Shares.  The Series A Preferred Stock shall be issuable upon exercise of the Rights issued pursuant to the Rights
Agreement in whole shares or in any fraction of a share that is one one-thousandth of a share (as such fraction may be adjusted
as provided in the Rights Agreement) or any integral multiple of such fraction which shall entitle the holder, in proportion to
such holder’s fractional shares, to receive dividends, exercise voting rights, participate in distributions and to have the
benefit of all other rights of holders of Series A Preferred Stock. In lieu of fractional shares, the Corporation, prior to
the first issuance of a share or a fraction of a share of Series A Preferred Stock, may elect (a) to make a cash payment as
provided in the Rights Agreement for fractions of a share other than one one-thousandths of a share (as such fraction may be adjusted
as provided in the Rights Agreement) or any integral multiple thereof or (b) to issue depository receipts evidencing such authorized
fraction of a share of Series A Preferred Stock pursuant to an appropriate agreement between the Corporation and a depository
selected by the Corporation; provided, however, that such agreement shall provide that the holders of such depository
receipts shall have all the rights, privileges and preferences to which they are entitled as holders of the Series A Preferred
Stock.

 

10.          Reacquired
Shares.  Any shares of Series A Preferred Stock purchased or otherwise acquired by the Corporation in any manner
whatsoever shall be retired and canceled promptly after the acquisition thereof. All such shares shall upon their cancellation
become authorized but unissued shares of Preferred Stock, without designation as to series until such shares are once more designated
as part of a particular series by the Board pursuant to the provisions of the Certificate.

 

11.          Amendment. 
So long as any shares of Series A Preferred Stock shall be outstanding, (i) none of the powers, preferences and relative,
participating, optional and other special rights of the Series A Preferred Stock as herein provided shall be amended in any
manner which would alter or change the powers, preferences, rights or privileges of the holders of Series A Preferred Stock
so as to affect them adversely and (ii) no amendment, alteration or repeal of the Certificate or of the By-laws of the Corporation
shall be effected so as to affect adversely any of such powers, preferences, rights or privileges, in each case without the affirmative
vote of the holders of at least 66-2/3% of the outstanding shares of Series A Preferred Stock, voting as a separate class;
provided, however, that no such amendment, alteration or repeal approved by the holders of at least 66-2/3% of the
outstanding shares of Series A Preferred Stock shall be deemed to apply to the powers, preferences, rights or privileges of
any holder of shares of Series A Preferred Stock originally issued upon exercise of the Rights after the time of such approval
without the approval of such holder.

 

5.            The
foregoing Amendment to the Certificate of Incorporation of the Corporation was authorized by a resolution of the Board at a meeting
thereof duly held on November 2, 2018, in accordance with the authority vested in the Board by paragraph THIRD of the Certificate
of Incorporation and Section 502 of the Business Corporation Law.

 

    -6-  

     

    

 

IN WITNESS WHEREOF, the
undersigned has executed this Certificate of Amendment of the Certificate of Incorporation of the Corporation this 6th
day of November, 2018.

 

	 	ACETO CORPORATION
	 	 
	 	By:	/s/ Steven S. Rogers
	 	 	Name: Steven S. Rogers
	 	 	Title: Chief Legal Officer

 

    -7-  

     

    

  

Exhibit B

 

Form of Right Certificate

 

     

     

    

 

EXHIBIT B

[FORM OF RIGHT CERTIFICATE]

 

	Certificate No. [R]-	Rights

 

NOT EXERCISABLE AFTER THE EXPIRATION DATE
(AS DEFINED IN THE RIGHTS AGREEMENT (AS DEFINED BELOW)), OR EARLIER IF REDEEMED BY THE COMPANY (AS DEFINED BELOW). THE RIGHTS ARE
SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.0001 PER RIGHT, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. RIGHTS
BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT) AND BY ANY SUBSEQUENT HOLDER OF SUCH RIGHTS ARE NULL AND VOID AND NONTRANSFERABLE.

 

Right Certificate

 

ACETO CORPORATION

 

This certifies that                       ,
or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Tax Asset Protection Rights Agreement, dated as of November, 5, 2018 (the
“Rights Agreement”), between Aceto Corporation (the “Company”) and American Stock Transfer
& Trust Company, LLC (the “Rights Agent”), unless the Rights evidenced hereby shall have been previously
redeemed or exchanged by the Company, to purchase from the Company at any time after the Distribution Date (as defined in the Rights
Agreement) and at or prior to the earlier of the Redemption Date or the Expiration Date (as such terms are defined in the Rights
Agreement), at the office or offices of the Rights Agent designated for such purpose, or its successors as Rights Agent, one one-thousandth
(1/1,000th) of a fully paid, nonassessable share of Series A Participating Cumulative Preferred Stock, par value $2.50 per share,
of the Company (the “Preferred Shares”), at a purchase price per one one-thousandth (1/1,000th) of a share equal
to $10.85 (the “Purchase Price”) payable in cash, upon presentation and surrender of this Right Certificate
with the Form of Election to Purchase duly executed.

 

The Purchase Price
and the number and kind of shares which may be purchased upon exercise of each Right evidenced by this Right Certificate, as set
forth above, are the Purchase Price and the number and kind of shares which may be so purchased as of November 5, 2018. As provided
in the Rights Agreement, the Purchase Price and the number and kind of shares which may be purchased upon the exercise of each
Right evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events.

 

If the Rights evidenced
by this Right Certificate are at any time beneficially owned by an Acquiring Person or an Affiliate or Associate of an Acquiring
Person (as such terms are defined in the Rights Agreement), such Rights shall be null and void and nontransferable and the holder
of any such Right (including any purported transferee or subsequent holder) shall not have any right to exercise or transfer any
such Right.

 

    B-1 

     

    

  

This Right Certificate
is subject to all 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 reference to the Rights Agreement is hereby made for a full
description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company
and the holders of the Right Certificates. Copies of the Rights Agreement are on file at the above-mentioned office of the Rights
Agent and are also available from the Company upon written request.

 

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

 

Subject to the provisions
of the Rights Agreement, the Rights evidenced by this Right Certificate may be redeemed by the Company at its option at a redemption
price (in cash or shares of Common Stock, par value $0.01 per share, of the Company or other securities of the Company deemed by
the Board of Directors of the Company to be at least equivalent in value) of $0.0001 per Right (which amount shall be subject to
adjustment as provided in the Rights Agreement) at any time prior to the earlier of (i) the Distribution Date and (ii) the Expiration
Date.

 

The Company may, but
shall not be required to, issue fractions of Preferred Shares or distribute certificates which evidence fractions of Preferred
Shares upon the exercise of any Right or Rights evidenced hereby, in each case other than fractions constituting one one-thousandth
(1/1,000th) of a share (as such fraction may be adjusted as provided in the Rights Agreement). In lieu of issuing fractional shares,
the Company may elect to make a cash payment as provided in the Rights Agreement for fractions of a share other than one one-thousandth
(1/1,000th) of a share (as such fraction may be adjusted as provided in the Rights Agreement) or any integral multiple thereof
or to issue certificates or utilize a depository arrangement as provided in the terms of the Rights Agreement and the Preferred
Shares.

 

No holder of this Right
Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Shares or of
any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company,
including, without limitation, any right to vote for the election of directors or upon any matter submitted to stockholders at
any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or other distributions or subscription
rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided in accordance
with the provisions of the Rights Agreement.

  

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

 

    B-2 

     

    

 

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

 

Dated
as of: November 5, 2018

 

	ATTEST:	 	ACETO CORPORATION
	 	 	 	 
	/s/ William C. Kennally, III	 	By:	/s/ Steven S. Rogers
	Name: William C. Kennally, III	 	 	Name: Steven S. Rogers
	Title: President and Chief Executive Officer	 	 	Title: Chief Legal Officer

 

Date of
countersignature: November 5, 2018

 

Countersigned:

 

American Stock Transfer & Trust Company, LLC

 

	By:	/s/ Jennifer Donovan	 
	 	Authorized Signatory: Jennifer Donovan	 

 

    B-3 

     

    

 

[On Reverse Side of Right Certificate]

FORM OF ELECTION TO PURCHASE

 

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

exercise the Rights represented by this Right Certificate)

 

To the
Rights Agent:

 

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

 

	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 Right Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:

 

	Please insert social security or
other identifying number:

	 

 

 

 

(Please
print name and address)

 

 

 

Dated:                             ,

 

	 	 
	 	Signature

 

Signature Guaranteed: ___________________________

 

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

 

CERTIFICATE

 

The undersigned hereby certifies that (1)
the Rights evidenced by this Right Certificate are not being exercised by or on behalf of a person who is or was an Acquiring Person
or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement), (2) this Right Certificate is not being
sold, assigned or transferred by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate thereof
(as such terms are defined in the Rights Agreement) and (3) after due inquiry and to the best knowledge of the undersigned, the
undersigned did not acquire the Rights evidenced by this Right Certificate from any person who is or was an Acquiring Person or
an Affiliate or Associate thereof.

 

Dated:                            ,

 

	 	 
	 	Signature

    B-4 

     

    

 

FORM
OF ASSIGNMENT

 

(To be executed by the registered holder
if such

holder desires to transfer the Right Certificate)

 

FOR VALUE
RECEIVED,                                            
hereby sells, assigns and transfers unto

 

 

 

(Please
print name and address of transferee)

 

 

 

this Right Certificate, together with all
right, title and interest therein, and does hereby irrevocably constitute and appoint Attorney, to transfer the within Right Certificate
on the books of the within-named Corporation, with full power of substitution.

 

Dated:                           ,

 

	 	 
	 	Signature

 

Signature Guaranteed: ___________________________

 

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

 

CERTIFICATE

 

The undersigned hereby certifies that (1)
the Rights evidenced by this Right Certificate are not being sold, assigned or transferred by or on behalf of a Person who is or
was an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement), (2) this Right
Certificate is not being sold, assigned or transferred to or on behalf of any such Acquiring Person, Affiliate or Associate and
(3) after inquiry and to the best knowledge of the undersigned, the undersigned did not acquire the Rights evidenced by this Right
Certificate from any Person who is or was an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in
the Rights Agreement).

 

Dated:                           ,

 

	 	 
	 	Signature

    B-5 

     

    

 

NOTICE

 

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

 

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

 

    B-6 

     

    

 

Exhibit C

 

Summary of Rights 

 

     

     

    

 

EXHIBIT
C

 

RIGHTS BENEFICIALLY OWNED BY ANY ACQUIRING
PERSONS OR THEIR AFFILIATES OR ASSOCIATES AND BY ANY SUBSEQUENT HOLDER OF SUCH RIGHTS ARE NULL AND VOID AND NONTRANSFERABLE.

 

SUMMARY OF RIGHTS TO PURCHASE

SERIES A PARTICIPATING CUMULATIVE PREFERRED
STOCK

OF ACETO CORPORATION

 

On
November 2, 2018, the Board of Directors of Aceto Corporation, a New York corporation, declared a dividend of one right for each
outstanding share of common stock, par value $0.01 per share, of the Company. The dividend is payable on November 20, 2018 to
the stockholders of record as of the close of business on November 15, 2018. The description and terms of the rights are
set forth in a Tax Asset Protection Rights Agreement, dated as of November 5, 2018, as it may be amended from time to time (the
“Rights Agreement”), between Aceto Corporation and American Stock Transfer & Trust Company, LLC, as rights
agent.

 

Our Board adopted
the Rights Agreement in an effort to protect shareholder value by, among other things, attempting to protect against a possible
limitation on our ability to use its net operating loss carryforwards and other tax benefits to reduce potential future United
States Federal income tax obligations. We have experienced substantial operating losses, and under the Internal Revenue Code of
1986, as amended (the “Code”), and rules promulgated thereunder, we may “carry forward” these tax
attributes in certain circumstances to offset any current and future earnings and thus reduce our federal income tax liability,
subject to certain requirements and restrictions. To the extent that our tax attributes do not otherwise become limited, we believe
that we will be able to carry forward a significant amount of losses and credits, and therefore these tax attributes could be
a substantial asset to us. However, if we experience an “ownership change,” as defined in Section 382 of the
Code, our ability to use these tax attributes will be substantially limited, and the timing and usage of the tax attributes could
be substantially delayed, which could therefore significantly impair the value of these assets.

 

In general terms, the
rights plan imposes a significant penalty upon any person or group that acquires beneficial ownership of 4.99 percent or more of
our outstanding common stock without the prior approval of our Board. A person or group that acquires a percentage of our common
stock in excess of that threshold is called an “acquiring person.” Any rights held by an acquiring person are
null and void and may not be exercised. The term “beneficial ownership” is defined in the Rights Agreement and
generally means direct, indirect or constructive ownership as determined under Section 382 of the Internal Revenue Code.

 

This summary of rights
provides a general description of the Rights Agreement and does not purport to be complete. Because it is only a summary, this
description should be read together with the entire Rights Agreement, which we incorporate in this summary by reference. We will
file a copy of the Rights Agreement with the Securities and Exchange Commission as an exhibit to our registration statement on
Form 8-A. Upon written request, we will provide a copy of the Rights Agreement free of charge to any stockholder.

 

      

     

    

 

The Rights.
Our Board authorized the issuance of one right per each outstanding share of our common stock outstanding at November 15, 2018.
Each right, if and when it becomes exercisable, will entitle the registered holder to purchase from us one one-thousandth (1/1,000th)
of a share of our Series A Participating Cumulative Preferred Stock at a price of $10.85. Each fractional share of preferred stock
would give the stockholder approximately the same dividend, voting and liquidation rights as does one share of our common stock.
Prior to exercise, however, a right does not give its holder any rights as a stockholder of the Company, including, without limitation,
any voting or dividend rights.

 

Exercisability.
The rights will not be exercisable until the earlier of:

 

		·	ten days after such time as Aceto Corporation learns that a person or group has become an acquiring
person; and

 

		·	such date, if any, as may be designated by our Board after a person or group begins, or first publicly
discloses an intention to begin, a tender or exchange offer for our outstanding common stock that could reasonably be expected
to result in such person or group becoming an acquiring person.

 

We refer to the date
that the rights become exercisable as the “distribution date.” Until the earliest of the distribution date,
the redemption date or the expiration date (as such terms are defined below), the rights will be evidenced by our common stock
certificates, which will contain a notation to that effect, along with a copy of this Summary of Rights, and the surrender for
transfer of any such certificate shall also constitute the transfer of the rights associated with the common stock represented
thereby. In the case of shares of common stock held in uncertificated form, the rights will be evidenced by the balances indicated
in the book-entry account system of the transfer agent for our common stock, and the transfer of any shares of common stock in
the book-entry account system of the transfer agent for such common stock shall also constitute the transfer of the rights associated
with such shares. Therefore, until the distribution date, the rights will be transferred with and only with the underlying shares
of common stock. As soon as practicable following the distribution date, the rights will separate from the common stock and be
evidenced by right certificates, which we will mail to all holders of rights that have not become null and void, and such separate
right certificates alone will thereafter evidence the rights.

 

Subject to the right
of our Board to redeem or exchange the rights as described below, on the first date of public announcement by us or any acquiring
person that a person has become an acquiring person, or ten days after such earlier date as a majority of our Board becomes aware
of the existence of an acquiring person, all holders of rights, except the acquiring person, may thereafter exercise their rights,
upon payment of the purchase price, to purchase that number of one one-thousandths (1/1,000ths) of a preferred share equal to the
number of shares of our common stock which, at the time of such transaction, would have a market value of twice the purchase price.
Any rights that are or were beneficially owned by an acquiring person on or after the distribution date will become null and void
and will not be subject to this “flip-in” provision.

 

      

     

    

 

In the event Aceto
Corporation is acquired in a merger or other business combination or 50 percent or more of our assets or (or assets representing
50 percent or more of our earning power) are sold, proper provision will be made so that all holders of rights, except the acquiring
person, may thereafter exercise their rights, upon payment of the purchase price, to purchase that number of shares of common stock
of the acquiring person (or other appropriate entity) which at the time of the transaction would have a market value of twice the
purchase price of the rights. This “flip-over” provision only applies to a merger or similar business combination with
an acquiring person.

 

ANY RIGHTS THAT ARE
OR WERE, AT ANY TIME ON OR AFTER THE DATE AN ACQUIRING PERSON BECOMES SUCH, BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR ANY AFFILIATE
OR ASSOCIATE OF AN ACQUIRING PERSON (OR A TRANSFEREE THEREOF) WILL BECOME NULL AND VOID AND ANY HOLDER OF ANY SUCH RIGHT (INCLUDING
ANY SUBSEQUENT HOLDER) WILL BE UNABLE TO EXERCISE ANY SUCH RIGHT.

 

Exempt Persons
and Exempt Transactions. Our Board recognizes that there may be instances when an acquisition of our common stock that would
cause a stockholder to become an acquiring person may not jeopardize the availability of any tax attributes to Aceto Corporation

 

Generally, the Rights
Agreement provides that any person or group which beneficially owned 4.99 percent or more of our outstanding shares of common stock
as of the close of business on the date of the Rights Agreement (we refer to such person herein a “grandfathered person”
and the percentage of such ownership as the “grandfathered percentage”) will not be deemed an “acquiring
person” unless such grandfathered person exceeds its grandfathered percentage by 0.5 percent or more of our outstanding shares
of common stock. If a grandfathered person subsequently becomes the beneficial owner of less than 4.99 percent of our outstanding
shares of common stock, then such person or group will cease to be a grandfathered person.

 

Additionally, the Rights
Agreement includes procedures whereby our Board (or a duly constituted independent committee thereof) may designate a person as
an “Exempt Person” or to designate a transaction involving our common stock as an “Exempt Transaction.”
An “Exempt Person” cannot become an acquiring person under the Rights Agreement. Our Board can revoke an “Exempt
Person” designation if it subsequently makes a contrary determination regarding whether a person jeopardizes the availability
of tax attributes to Aceto Corporation. An Exempt Person cannot be a grandfathered person.

 

      

     

    

 

Expiration.
The Rights Agreement and the rights will expire on the earliest of: (i) the close of business on November 5, 2020, which is the
second anniversary of the date on which our Board adopted the Rights Agreement or such earlier date as of which the Board determines
that the Rights Agreement is no longer necessary for the preservation of tax benefits; (ii) the close of business on the effective
date of the repeal of Section 382 or any successor statute if our Board determines that the Rights Agreement is no longer necessary
or desirable for the preservation of our net operating losses or other tax assets; (iii) the time at which all exercisable Rights
are exchanged as provided in Section 11(b) of the Rights Agreement; (iv) the close of business on the first day of a taxable year
of Aceto Corporation with respect to which our Board determines that no net operating losses or other tax assets may be carried
forward; (v) the date upon which any person, including any acquiring person, or group of affiliated or associated persons becomes
the beneficial owner of greater than 19.99 percent of the then outstanding shares of our common stock; or (vi) on the 30th calendar
day after the first annual meeting of our stockholders that is completed after the date of the Rights Agreement, unless our stockholders
have ratified or otherwise approved the Rights Agreement at such annual meeting (the earliest of such events being herein referred
to as the “expiration date”).

 

Equitable Adjustments.
The number of preferred shares or other securities issuable upon exercise of the rights, the purchase price and the redemption
price are subject to adjustment by our Board in the event of any change in the preferred shares or our common stock or, whether
by reason of stock dividends, stock splits, reclassifications, recapitalizations, mergers, consolidations, combinations or exchanges
of securities, split-ups, split-offs, spin-offs, liquidations, other similar changes in capitalization, any distribution or issuance
of assets, evidences of indebtedness or subscription rights, options or warrants to holders of our capital stock or otherwise.

 

The preferred stock
is authorized to be issued in fractions, which are an integral multiple of one one-thousandth (1/1,000th) of a share of preferred
stock. We may, but are not required to, issue fractions of shares upon the exercise of rights (other than one one-thousandths (1/1000ths)
of a preferred share (as such fraction may be adjusted as provided in the Rights Agreement) or any integral multiple thereof),
and in lieu of fractional shares, we may make a cash payment based on the market price of such shares on the first trading date
prior to the date of exercise or utilize a depositary arrangement as provided by the terms of the preferred stock.

 

Redemption.
Our Board may redeem all (but not fewer than all) of the rights for a redemption price of $0.0001 per right any time before the
earlier of (i) the distribution date and (ii) the expiration date (the date of such redemption being the “redemption
date”). Once the rights are redeemed, the right to exercise the rights will terminate and the only right of the holders
of rights will be to receive the redemption price.

 

Exchange. At
any time after there is an acquiring person and prior to the acquisition by such person or group of 50 percent or more of our
shares of common stock then outstanding, our Board may exchange all or part of the then outstanding rights (other than rights
that have become null and void) for (i) one-half of the preferred shares (or fractions thereof) that would be issuable at such
time upon the exercise of one right pursuant to the terms of the Rights Agreement or (ii) in the case of holders of our common
stock: cash, property, preferred shares (including fractions thereof), shares of common stock (including fractions thereof), or
other equity or debt securities (or any combination of any of the foregoing) having an aggregate value equal to one-half of the
value of preferred shares (including fractions thereof) that would be issuable at such time upon the exercise of one right pursuant
to the terms of the Rights Agreement.

 

Amendments.
At any time prior to the distribution date, Aceto Corporation may, without the approval of any holder of the rights, supplement
or amend any provision of the Rights Agreement (including the date on which the distribution date will occur, the amount of the
purchase price or the definition of “acquiring person”), except that no supplement or amendment may be made that reduces
the redemption price. After a distribution date, the provisions of the Rights Agreement may be amended by Aceto Corporation in
order to cure any ambiguities, to correct or supplement any provision that may be defective or inconsistent with any other provisions
of the Rights Agreement, or to make any other necessary or desirable changes that do not adversely affect the interests of holders
of rights.

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