Document:

Exhibit 4.1

 

ACACIA RESEARCH CORPORATION

 

and

 

COMPUTERSHARE TRUST COMPANY, N.A

 

as Rights Agent 

 

TAX BENEFITS PRESERVATION PLAN

 

Dated as of March 16, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    
    	 	 	 

    

     

    

 

TABLE OF CONTENTS

 

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

 

    	 	 	 

     

    

 

 

EXHIBITS

 

	Exhibit A --	Form of Certificate of Designation, Preferences and Rights of Participating Preferred Stock
	 	 
	Exhibit B --	Form of Rights Certificate
	 	 
	Exhibit C --	Summary of Terms

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

TAX BENEFITS PRESERVATION PLAN

 

TAX BENEFITS PRESERVATION
PLAN, dated as of March 16, 2016 (the “Agreement”), between Acacia Research Corporation., a Delaware corporation (the
“Company”), and Computershare Trust Company, N.A., a federally chartered trust company (the “Rights Agent”).

 

WITNESSETH:  

 

WHEREAS, the
Company and certain of its Subsidiaries have generated certain Tax Benefits (as hereinafter defined) for United States federal
income tax purposes, such Tax Benefits may potentially provide valuable benefits to the Company, the Company desires to avoid an
“ownership change” within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”),
and the Treasury Regulations (as hereinafter defined) promulgated thereunder, and thereby preserve its ability to utilize such
Tax Benefits, and, in furtherance of such objective, the Company desires to enter into this Agreement.

 

WHEREAS, on
March 15, 2016, the Board of Directors of the Company (the “Board”) authorized and declared a dividend of one preferred
stock purchase right (a “Right”) for each share of Common Stock (as defined below) outstanding at the close of business
(as defined below) on March 16, 2016 (the “Record Date”) and authorized the issuance, upon the terms and subject to
the conditions herein, of one Right (subject to adjustment) in respect of each share of Common Stock issued after the Record Date,
each Right representing the right to purchase, upon the terms and subject to the conditions herein, one one-thousandth (subject
to adjustment) of a share of Preferred Stock (as defined below);

 

NOW, THEREFORE,
in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows:

 

Section 1 Certain Definitions.

 

For purposes of this Agreement, the following terms have the
meanings indicated:

 

(a)“Acquiring
Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial
Owner of 4.9% or more of the shares of Common Stock then outstanding, but shall not include:

 

(i)              
the Company;

 

(ii)            
any Subsidiary of the Company;

 

(iii)          
any employee benefit plan of the Company, or of any Subsidiary of the Company, or any Person organized, appointed or established
by the Company for or pursuant to the terms of any such plan;

 

(iv)           any
Person who or which becomes the Beneficial Owner of 4.9% or more of the shares of Common Stock then outstanding solely as a
result of (A) a reduction in the number of shares of Common Stock outstanding due to the repurchase of shares of Common
Stock by the Company (or any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the
Company, or any Person organized, appointed or established by the Company for or pursuant to the terms of any such plan) or
(B) a stock dividend, stock split, reverse stock split or similar transaction effected by the Company, in each case unless
and until such Person acquires Beneficial Ownership of additional shares of Common Stock, except solely as the result of any
subsequent transaction described in clause (A) or (B) of this Section 1(a)(iv);

 

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(v)                 
any Person who or which, within ten (10) Business Days of being requested by the Company to advise it regarding the same,
certifies to the Company that such Person acquired shares of Common Stock in excess of 4.899% inadvertently or without knowledge
of the terms of the Rights and who or which, together with all Affiliates and Associates, thereafter within ten (10) Business Days
following such certification reduces such Person’s, together with its Affiliates’ and Associates’, Beneficial
Ownership to less than 4.9% of the shares of Common Stock then outstanding; provided, however, that (x) if the Person requested
to so certify fails to do so within ten (10) Business Days or breaches or violates such certification, then such Person shall become
an Acquiring Person immediately after such ten (10) Business Day period or such breach or violation or (y) if the Person together
with its Affiliates and Associates fails to reduce Beneficial Ownership to less than 4.9% within ten (10) Business Days following
such certification, then such Person shall become an Acquiring Person immediately after such ten (10) Business Day period;

 

(vi)               
any Exempt Person, but only for so long as such Exempt Person, together with such Person’s Affiliates and Associates,
does not become the Beneficial Owner of any additional shares of Common Stock while such Person is an Exempt Person, except solely
as the result of any transaction described in clause (A) or (B) of Section 1(a)(iv);

 

(vii)             
any Person that the Board determines, in its sole discretion, in light of the intent and purposes of this Agreement or other
circumstances facing the Company, shall not be deemed an Acquiring Person, for so long as such Person complies with any limitations
or conditions required by the Board in making such determination; provided, further that such Person shall be an “Acquiring
Person” if the Board makes a contrary determination in good faith; and

 

(viii)           
any Person if, on the date that would have been (absent this clause viii) a Stock Acquisition Date with respect to such
Person, such Person does not Beneficially Own any Common Stock.

 

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

 

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

 

(d)                 
“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2
of the General Rules and Regulations under the Exchange Act and, to the extent not included within the foregoing, shall also include
with respect to any Person, any other Person whose shares of Common Stock would be deemed to be constructively owned by such first
Person, owned by a single “entity” with respect to such first Person 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 Section 382 of the Code
and the Treasury Regulations promulgated thereunder.

 

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

 

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

 

(i)any
securities that such Person or any of such Person’s Affiliates or Associates owns directly or has the right to acquire
(whether such right is exercisable immediately, or only after the passage of time, compliance with regulatory requirements,
the fulfillment of a condition, or otherwise) pursuant to any agreement, arrangement or understanding, or upon the exercise
of conversion rights, exchange rights, other rights, warrants or options, or otherwise; provided, however, that a Person
shall not be deemed the Beneficial Owner of, or to beneficially own, (A) any shares of Common Stock by virtue of owning
securities or other interests (including rights, options or warrants) that are convertible or exchangeable into, or
exercisable for, such shares of Common Stock, except to the extent that upon the issuance, acquisition or transfer of such
securities or other interests, such securities or other interests would be treated as exercised under Section 1.382-4(d) or
other applicable sections of the Treasury Regulations, (B) securities tendered pursuant to a tender offer or exchange offer
made by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are
accepted for purchase or exchange or (C) securities issuable upon exercise of Rights;

 

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(ii)              
any securities that such Person or any of such Person’s Affiliates or Associates (A) directly or indirectly has the
right to vote or dispose of, alone or in concert with others, or (B) beneficially owns, directly or indirectly, for purposes of
Section 13(d) of the Exchange Act and Rule 13d-3 of the General Rules and Regulations under the Exchange Act, including, with respect
to both clause (A) and clause (B), pursuant to any agreement, arrangement or understanding (whether or not in writing), but only
if the effect of such agreement, arrangement or understanding is to treat such Persons as an “entity” under Section
1.382-3(a)(1) of the Treasury Regulations; provided that a Person shall not be deemed the Beneficial Owner of, or to beneficially
own, any security under this subparagraph (ii) on account of an agreement, arrangement or understanding to vote such security that
(X) arises solely from a revocable proxy given to such Person or any of such Person’s Affiliates or Associates in response
to a public proxy solicitation made pursuant to and in accordance with the applicable provisions of the General Rules and Regulations
under the Exchange Act, and (Y) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor
report); and

 

(iii)            
any securities that are beneficially owned, directly or indirectly, by any other Person, if such Person or any of such Person’s
Affiliates or Associates has any agreement, arrangement or understanding (whether or not in writing) with such other Person or
any of such other Person’s Affiliates or Associates for the purpose of acquiring, holding, voting (other than voting pursuant
to a revocable proxy as described in the proviso to Section 1(f)(ii) hereof) or disposing of any securities of the Company,
but only if the effect of such agreement, arrangement or understanding is to treat such Persons as an “entity” under
Section 1.382-3(a)(1) of the Treasury Regulations.

 

Notwithstanding the
foregoing, a Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially own,”
securities if such Person would be deemed constructively to own such securities pursuant to Sections 1.382-2T(h) and 1.382-4(d)
of the Treasury Regulations, such Person owns such securities pursuant to a “coordinated acquisition” treated as a
single “entity” as defined in Section 1.382-3(a)(1) of the Treasury Regulations, or such securities are otherwise aggregated
with securities owned by such Person, pursuant to the provisions of Section 382 of the Code and the Treasury Regulations promulgated
thereunder.

 

The term “Beneficial Ownership” shall have a corresponding
meaning.

 

(g)               
“Board” shall have the meaning set forth in the recitals of this Agreement.

 

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

 

 

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(i)                
“close of business” on any given date shall mean 5:00 P.M., New York, New York time, on such date; provided,
however, that if such date is not a Business Day, it shall mean 5:00 P.M., New York, New York time, on the next succeeding Business
Day.

 

(j)                
“Code” shall have the meaning set forth in the recitals to this Agreement.

 

(k)              
“Common Stock” shall mean the common stock of the Company of $0.001 par value, except that “Common Stock”
when used with reference to any other Person other than the Company shall mean the capital stock of such Person with the greatest
voting power, or the equity securities or other equity interest having power to control or direct the management, of such Person
(or, if such Person is a Subsidiary of another Person, the Person or Persons that ultimately control such first mentioned Person).

 

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

 

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

 

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

 

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

 

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

 

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

 

(r)                “Exempt Person” shall mean any Person who or which, together with all Affiliates and Associates of such Person,
is, as of the Exempt Time, the Beneficial Owner of 4.9% or more of the shares of Common Stock then outstanding. Any Exempt Person
who, together with such Person’s Affiliates and Associates, after the Exempt Time becomes the Beneficial Owner of less than
4.9% of the shares of Common Stock then outstanding shall cease to be an Exempt Person and shall be subject to all the provisions
of this Agreement in the same manner as any Person who is not and was not an Exempt Person.

 

(s)               
“Exempt Time” shall mean the time of the first public announcement of adoption of this Agreement.

 

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

 

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

 

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

 

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

 

(x)              
“NASDAQ” shall have the meaning set forth in Section 11(d)(i) hereof.

 

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

 

(z)               “NYSE”
shall have the meaning set forth in Section 11(d)(i) hereof.

 

 

 

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(aa)“Person”
shall mean any individual, firm, corporation, partnership, limited liability company, limited liability partnership, trust, syndicate
or other entity, or group of persons making a “coordinated acquisition” of Common Stock or otherwise treated as an
“entity” within the meaning of Section 1.382-3(a)(1) of the Treasury Regulations or otherwise, and also includes any
successor (by merger or otherwise) of any such individual or entity.

 

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

 

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

 

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

 

(ee)“Record Date” shall have the meaning set
forth in the recitals of this Agreement.

 

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

 

(gg)“Rights” shall have the meaning set forth
in the recitals of this Agreement.

 

(hh) “Rights Agent”
shall have the meaning set forth in the preamble of this Agreement.

 

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

 

(jj)“Rights
Dividend Declaration Date” shall have the meaning set forth in the recitals of this Agreement.

 

(kk)“Section
11(a)(ii) Event” shall mean any event described in Section 11(a)(ii) hereof.

 

(ll)“Section
11(a)(ii) Trigger Date” shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(mm) “Section
13 Event” shall mean any event described in clauses (x), (y) or (z) of Section 13(a) hereof.

 

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

 

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

 

(pp)
“Subsidiary” shall mean, with reference to any Person, any corporation or other entity of which an amount of
securities or other ownership interests having ordinary voting power sufficient to elect at least a majority of the directors
or other Persons having similar functions of such corporation or other entity are at the time, directly or indirectly,
beneficially owned, or otherwise controlled by such Person.

 

    	 	5	 

     

    

 

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

 

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

 

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

 

(tt)“Treasury
Regulations” shall mean the final and temporary (but not proposed) tax regulations promulgated under the Code, as such regulations
may be amended from time to time.

 

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

 

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 or conditions), and the Rights Agent hereby accepts such appointment. The Company
may from time to time appoint such co-rights agents as it may deem necessary or desirable upon ten (10) days’ prior written
notice to the Rights Agent setting forth the respective rights and duties of the Rights Agent and any co-rights agent. The Rights
Agent shall have no duty to supervise, and in no event shall be liable for, the acts or omissions of any such co-rights agent.

 

Section 3 Issuance of Rights Certificates.

 

(a)Until the earlier
of (i) the close of business on the tenth (10th) Business Day after the Stock Acquisition Date (or, if the tenth (10th) Business
Day after the Stock Acquisition Date occurs before the Record Date, the close of business on the Record Date), or (ii) the close
of business on the tenth (10th) Business Day (or such later date as the Board shall determine) after the date that a tender or
exchange offer by any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of the Company
or of any Subsidiary of the Company, or any Person organized, appointed or established by the Company for or pursuant to the terms
of any such plan) is first published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and Regulations
under the Exchange Act, if upon consummation thereof, such Person would become an Acquiring Person (the earlier of (i) and (ii)
being herein referred to as the “Distribution Date”), (x) the Rights will be evidenced (subject to the provisions
of paragraphs (b) and (c) of this Section 3) by the certificates evidencing the Common Stock registered in the names of
the holders of the Common Stock (which certificates evidencing the Common Stock shall be deemed also to be certificates evidencing
the Rights) and not by separate certificates (or, for uncertificated shares registered in book entry form, by notations in the
respective book entry accounts for the Common Stock), and (y) the Rights will be transferable only in connection with the transfer
of the underlying shares of Common Stock (including a transfer to the Company). The Company promptly shall notify the Rights Agent
in writing upon the occurrence of the Distribution Date and, if such notification is given orally, the Company shall confirm the
same in writing on or prior to the next following Business Day. Until such notice is received by the Rights Agent, the Rights
Agent may presume conclusively for all purposes that the Distribution Date has not occurred. As soon as practicable after the
Distribution Date and receipt by the Rights Agent of notice of such occurrence, the Rights Agent, if requested by the Company
in writing and provided with all necessary information and documentation, will, subject to the following sentence, send by first-class,
insured, postage prepaid mail (or such other means as may be selected by the Company and not reasonably objected to by the Rights
Agent), to each record holder of the Common Stock as of the close of business on the Distribution Date, at the address of such
holder then shown on the records of the Company or the transfer agent or the registrar for the Common Stock, one or more rights
certificates, in substantially the form of Exhibit B hereto (the “Rights Certificates”), duly executed and
countersigned in the manner provided for in Section 5(a) hereof, evidencing one Right for each share of Common Stock so
held, subject to adjustment as provided herein. To the extent that a Section 11(a)(ii) Event has also occurred, the Company
may implement such procedures, as it deems appropriate in its sole discretion, (with prompt written notice of the same to the
Rights Agent), to minimize the possibility that Rights are received by Persons whose Rights would be null and void under Section
7(e) hereof. In the event that an adjustment in the number of Rights per share of Common Stock has been made pursuant to Section
11(p) hereof, at the time of distribution of the Rights Certificates, the Company shall make the necessary and appropriate
rounding adjustments (in accordance with Section 4(a) hereof) so that Rights Certificates representing only whole numbers
of Rights are distributed and cash is paid in lieu of any fractional Rights. As of and after the Distribution Date, the Rights
will be evidenced solely by such Rights Certificates and may be transferred by the transfer of the Rights Certificates as permitted
hereby, separately and apart from any transfer of one or more shares of Common Stock, and the holders of such Rights Certificates
as listed in the records of the Company or any transfer agent or registrar for the Rights shall be the record holders thereof.

 

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(b)            
The Company will make available, as promptly as practicable following the date hereof, a copy of the Summary of Rights to
any holder of Rights who may so request from time to time prior to the Expiration Date. With respect to certificates evidencing
the Common Stock outstanding as of the Record Date, or issued subsequent to the Record Date, unless and until the Distribution
Date shall occur, the Rights will be evidenced by the certificates for the Common Stock (or, in the case of shares reflected on
the direct registration system, the notations in the book-entry account system of the transfer agent for the Common Stock) and
the registered holders of the Common Stock shall also be the registered holders of the associated Rights. Until the earlier of
the Distribution Date or the Expiration Date, the transfer of any shares of Common Stock in respect of which Rights have been issued
shall also constitute the transfer of the Rights associated with such shares of Common Stock. Notwithstanding anything to the contrary
set forth in this Agreement, upon the effectiveness of a redemption pursuant to Section 23 hereof or an exchange pursuant
to Section 24 hereof, the Company shall not thereafter issue any additional Rights and, for the avoidance of doubt, no Rights
shall be attached to or shall be issued with any shares of Common Stock (including any shares of Common Stock issued pursuant to
an exchange) at any time thereafter.

 

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

 

This certificate
also evidences and entitles the holder hereof to certain Rights as set forth in the Tax Benefits Preservation Plan between
Acacia Research Corporation (the “Company”) and Computershare Trust Company, N.A. (or any successor Rights Agent)
(the “Rights Agent”) dated as of March 16, 2016 as it may be supplemented, amended or restated from time to time
(the “Tax Benefits Preservation Plan”), the terms of which are hereby incorporated herein by reference and a copy
of which is on file at the principal offices of the Company. Under certain circumstances, as set forth in the Tax Benefits
Preservation Plan, such Rights will be evidenced by separate certificates and will no longer be evidenced by this
certificate. The Company will mail to the holder of this certificate a copy of the Tax Benefits Preservation Plan, as in
effect on the date of mailing, without charge, promptly after receipt of a written request therefor. Under certain
circumstances set forth in the Tax Benefits Preservation Plan, Rights issued to, or held by, any Person who is, was or
becomes an Acquiring Person or any Affiliate or Associate thereof (as such terms are defined in the Tax Benefits Preservation
Plan), whether currently held by or on behalf of such Person or by any subsequent holder, may become null and void.

 

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With respect to such
certificates containing the foregoing legend, until the earlier of (i) the Distribution Date or (ii) the Expiration Date, the Rights
associated with the Common Stock represented by such certificates shall be evidenced by such certificates alone and registered
holders of Common Stock shall also be the registered holders of the associated Rights, and the transfer of any of such certificates
shall also constitute the transfer of the Rights associated with the Common Stock represented by such certificates. Similarly,
during such time periods, transfers of shares participating in the direct registration system shall also be deemed to be transfers
of the associated Rights. In the case of any shares participating in the direct registration system, the Company shall cause the
transfer agent for the Common Stock to include on each direct registration account statement with respect thereto issued prior
to the Distribution Date a notation to the effect that the Company will mail to the stockholder a copy of the Agreement, as in
effect on the date of mailing, without charge, promptly after receipt of a written request therefor and that the recipient of the
statement, as a holder of shares of Common Stock, may have certain rights thereunder. In the event that shares of the Common Stock
are not represented by certificates, references in this Agreement to certificates shall be deemed to refer to the notations in
the book-entry accounts reflecting ownership of such shares.

 

Section 4 Form of Rights Certificates.

 

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

 

(b)               Any
Rights Certificate issued pursuant to Section 3(a), Section 11(i) or Section 22 hereof that represents Rights
beneficially owned by: (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an
Acquiring Person (or of any Associate or Affiliate of an Acquiring Person) who becomes a transferee after the
Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person (or of any Associate or Affiliate of an 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 an Associate or Affiliate
of the Acquiring Person) to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring
Person (or an Associate or Affiliate of the Acquiring Person) has any continuing agreement, arrangement or understanding
(whether or not in writing) regarding the transferred Rights or (B) a transfer that the Board has determined is part of a
plan, arrangement or understanding (whether or not in writing) that has as a primary purpose or effect the avoidance of Section
7(e) hereof, and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer,
exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain (if the
Company and the Rights Agent have knowledge that such Person is an Acquiring Person or an Associate or Affiliate thereof or
transferee of such Persons or a nominee of any of the foregoing and to the extent feasible and only if the Company has
provided specific written instructions to the Rights Agent) a legend in substantially the following form:

 

    	 	8	 

     

    

 

The Rights represented
by this Rights Certificate are or were beneficially owned by a Person who was or became an Acquiring Person or an Affiliate or
Associate of an Acquiring Person (as such terms are defined in the Tax Benefits Preservation Plan between Acacia Research Corporation
and Computershare Trust Company, N.A. (or any successor Rights Agent) dated as of March 16, 2016, as it may be supplemented, amended
or restated from time to time (the “Tax Benefits Preservation Plan”)). Accordingly, this Rights Certificate and the
Rights represented hereby may become null and void in the circumstances specified in Section 7(e) of the Tax Benefits Preservation
Plan.

 

Section 5 Countersignature and Registration.

 

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

 

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

 

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

 

    	 	9	 

     

    

 

 

(a)               
Subject to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any time after the close
of business on the Distribution Date, and at or prior to the close of business on the Expiration Date, any Rights Certificate or
Certificates (other than Rights Certificates representing Rights that have become null and void pursuant to Section 7(e)
hereof or that may have been redeemed or exchanged pursuant to Section 24 hereof) may be transferred, split up, combined
or exchanged for another Rights Certificate or Certificates, entitling the registered holder to purchase a like number of one one-thousandths
of a share of Preferred Stock (or, following a Triggering Event, Common Stock, other securities, cash or other assets, as the case
may be) as the Rights Certificate or Certificates surrendered then entitles such holder (or former holder in the case of a transfer)
to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights Certificate or Certificates shall
make such request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or Certificates to be transferred,
split up, combined or exchanged, with the form of assignment and certificate contained therein properly completed and duly executed
and with all signatures guaranteed, at the office or offices of the Rights Agent designated for such purpose. Notwithstanding anything
in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with
respect to the transfer of any such surrendered Rights Certificate until the registered holder thereof shall have (i) properly
completed and duly executed the certificate contained in the form of assignment on the reverse side of such Rights Certificate,
(ii) 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, and (iii) paid a sum sufficient to cover any tax or charge
that may be imposed in connection with any transfer, split up, combination or exchange of Rights Certificates as required by Section
9(e) hereof. Thereupon the Rights Agent shall, subject to Section 4(b), Section 7(e), Section 14 and Section 24
hereof, countersign and deliver to the Person entitled thereto a Rights Certificate or Certificates, as the case may be, as so
requested, registered in such name or names as may be designated by the surrendering registered holder. 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 to take any action under any section of this Agreement related to the exchange, issuance
or delivery of Rights Certificates or which requires payment by a Rights holder of applicable taxes or charges unless and until
it is satisfied that all such taxes and/or charges have been paid.

 

(b)              
Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction
or mutilation of a Rights Certificate, and, in case of loss, theft or destruction, of indemnity or security satisfactory to them,
along with a signature guarantee and such other and further documentation as the Company or the Rights Agent may reasonably request,
and reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the
Rights Agent and cancellation of the Rights Certificate, if mutilated, the Company will execute and deliver a new Rights Certificate
of like tenor to the Rights Agent for countersignature and delivery to the registered holder thereof in lieu of the Rights Certificate
so lost, stolen, destroyed or mutilated.

 

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

 

(a)Subject to
(e) hereof, at any time after the Distribution Date the registered holder of any Rights Certificate may exercise the Rights
evidenced thereby (except as otherwise provided herein including the restrictions on exercisability set forth in Section 9(c)
and Section 11(a)(iii)) in whole or in part upon surrender of the Rights Certificate, with the form of election to
purchase and the certificate on the reverse side thereof properly completed and duly executed, to the Rights Agent at the office
or offices of the Rights Agent designated for such purpose, together with payment of the aggregate Purchase Price with respect
to the total number of one one-thousandths of a share of Preferred Stock (or other securities, cash or other assets, as the case
may be) as to which such surrendered Rights are then exercisable, and an amount equal to any tax or charge required to be paid
under Section 9(e) hereof, at or prior to the earliest of (i) 5:00 P.M., New York, New York time, on March 15, 2019 or
such later date as may be established by the Board prior to the expiration of the Rights (such date, as it may be extended by
the Board, the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section
23 hereof, (iii) the time at which the Rights are exchanged as provided in Section 24 hereof, (iv) the close of business
on the effective date of the repeal of Section 382 of the Code if the Board determines that this Agreement is no longer necessary
or desirable for the preservation of Tax Benefits or (v) the close of business on the first day of a taxable year of the Company
to which the Board of Directors of the Company determines that no Tax Benefits may be carried forward (the earliest of (i) - (v)
being herein referred to as the “Expiration Date”). The obligations of the Rights Agent under this Agreement shall
terminate upon the earlier of the Expiration Date and such time as all outstanding Rights have been exercised, redeemed or exchanged
hereunder (other than Rights which have become null and void pursuant to the provisions of Section 7(e) hereof); provided,
that following such termination the Rights Agent shall be required to complete all of its outstanding work and all work, if any,
required to be performed by it under this Agreement in connection with such expiration, exercise, redemption or exchange.

 

    	 	10	 

     

    

 

(b)            
The Purchase Price for each one one-thousandth of a share of Preferred Stock pursuant to the exercise of a Right initially
shall be $15.00, shall be subject to adjustment from time to time as provided in Section 11 and Section 13(a) hereof
and shall be payable in accordance with paragraph (c) below.

 

(c)            
Subject to (e) hereof, upon receipt of a Rights Certificate representing exercisable Rights, with the form of election
to purchase and the certificate properly completed and duly executed, accompanied by payment, with respect to each Right so exercised,
of the Purchase Price per one one-thousandth of a share of Preferred Stock (or other shares, securities, cash or other assets,
as the case may be) to be purchased as set forth below and an amount equal to any tax or charge required to be paid under Section
9(e) hereof, the Rights Agent shall, subject to Section 7(f) and Section 20(k) hereof, thereupon promptly (i)
(A) requisition from any transfer agent of the shares of Preferred Stock (or make available, if the Rights Agent is the transfer
agent for such shares) certificates for the total number of one one-thousandths of a share of Preferred Stock to be purchased
and the Company hereby irrevocably authorizes and directs each such transfer agent to comply with all such requests, or (B) if
the Company shall have elected to deposit the total number of shares of Preferred Stock issuable upon exercise of the Rights hereunder
with a depositary agent, requisition from the depositary agent depositary receipts representing such number of one one-thousandths
of a share of Preferred Stock as are to be purchased (in which case certificates for the shares of Preferred Stock represented
by such receipts shall be deposited by the transfer agent with the depositary agent) and the Company hereby irrevocably authorizes
and directs each such depositary agent to comply with such request, (ii) when necessary to comply with this Agreement, requisition
from the Company the amount of cash, if any, to be paid in lieu of the issuance of fractional shares in accordance with Section
14 hereof, (iii) after receipt of such certificates or depositary receipts, cause the same to be delivered to or, upon the
order of the registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder,
and (iv) when necessary to comply with this Agreement, after receipt thereof, deliver such cash, if any, to or upon the order
of the registered holder of such Rights Certificate. The payment of the Purchase Price (as such amount may be reduced pursuant
to Section 11(a)(iii) hereof) and an amount equal to any tax or charge required to be paid under Section 9(e) hereof,
shall be made in cash or by certified bank check or bank draft payable to the order of the Company. In the event that the Company
is obligated to issue other securities (including Common Stock) of the Company, pay cash and/or distribute other property pursuant
to Section 11(a) hereof, the Company will make all arrangements necessary so that such other securities, cash and/or other
property are available for distribution by the Rights Agent, if and when necessary to comply with this Agreement. The Company
reserves the right to require prior to the occurrence of a Triggering Event that, upon any exercise of Rights, a number of Rights
be exercised so that only whole shares of Preferred Stock would be issued.

 

    	 	11	 

     

    

 

(d)            
In case the registered holder of any Rights Certificate shall properly exercise less than all the Rights evidenced thereby,
a new Rights Certificate evidencing the Rights remaining unexercised shall be issued by the Rights Agent and, if requested and
provided with all necessary information and documents by the registered holder of Rights Certificates, delivered to, or upon the
order of, the registered holder of such Rights Certificate or to its duly authorized assigns, registered in such name or names
as may be designated by such holder, subject to the provisions of Section 14 hereof.

 

(e)            
Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Section 11(a)(ii)
Event, any Rights beneficially owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee
of an Acquiring Person (or of any Associate or Affiliate of an Acquiring Person) who becomes a transferee after the Acquiring Person
becomes such, or (iii) a transferee of an Acquiring Person (or of any Associate or Affiliate of an 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 an Associate or Affiliate of the Acquiring Person) to
holders of equity interests in such Acquiring Person (or such Associate or Affiliate of an Acquiring Person) or to any Person with
whom the Acquiring Person (or an Associate or Affiliate of the Acquiring Person) has any continuing agreement, arrangement or understanding
(whether or not in writing) regarding the transferred Rights or (B) a transfer that the Board has determined is part of a plan,
arrangement or understanding that has as a primary purpose or effect the avoidance of this (e), shall become null and void
without any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights, or any Rights
Certificate which formerly evidenced such Rights, whether under any provision of this Agreement or otherwise. The Company shall
notify the Rights Agent when this (e) and/or Section 4(b) hereof applies and shall use all reasonable efforts to
ensure that the provisions of this (e) and Section 4(b) hereof are complied with, but neither the Company nor the
Rights Agent shall have any liability or obligation to any holder of Rights Certificates or any other Person as a result of the
Company’s failure to make any determinations with respect to an Acquiring Person or any of such Acquiring Person’s
Affiliates, Associates or their respective transferees hereunder. Until such notice is received by the Rights Agent, the Rights
Agent shall have no duties, responsibilities or obligations with respect to this (e) and Section 4(b) hereof 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.

 

(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 Rights or other securities 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 executed
the certificate contained in the form of election to purchase set forth on the reverse side of the Rights Certificate surrendered
for such exercise, and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner)
or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably request.

 

Section 8 Cancellation
and Destruction of Rights Certificates. All Rights Certificates surrendered for the purpose of exercise, transfer, split
up, combination, redemption or exchange shall, if surrendered to the Company or any of its agents, be delivered to the Rights
Agent for cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Rights
Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The
Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire,
any other Rights Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent
shall deliver all cancelled Rights Certificates to the Company, or shall, at the written request of the Company, destroy such
cancelled Rights Certificates, and in such case shall deliver a certificate of destruction thereof to the Company.

 

    	 	12	 

     

    

 

Section 9 Reservation and Availability of Capital Stock.

 

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

 

(b)              
So long as the shares of Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock and/or other
securities) issuable and deliverable upon the exercise of the Rights may be listed on any national securities exchange, the Company
shall use its best efforts to cause, from and after such time as the Rights become exercisable (but only to the extent that it
is reasonably likely that the Rights will be exercised), all shares reserved for such issuance to be listed on such exchange upon
official notice of issuance upon such exercise.

 

(c)               
The Company shall use its best efforts to (i) file, as soon as practicable following the earliest date after the first occurrence
of a Section 11(a)(ii) Event on which the consideration to be delivered by the Company upon exercise of the Rights has been
determined in accordance with Section 11(a)(iii) hereof, a registration statement under the Act, with respect to the securities
purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration statement to become effective as soon
as practicable after such filing, and (iii) cause such registration statement to remain effective (with a prospectus at all times
meeting the requirements of the Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such
securities, and (B) the Expiration Date. The Company will also take such action as may be appropriate under, or to ensure compliance
with, the securities or “blue sky” laws of the various states in connection with the exercisability of the Rights.
The Company may temporarily suspend, for a period of time not to exceed ninety (90) days after the date set forth in clause (i)
of the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare and file such registration
statement and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement stating that
the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension
has been rescinded. In addition, if the Company shall determine that a registration statement is required following the Distribution
Date, the Company may temporarily suspend the exercisability of the Rights until such time as a registration statement has been
declared effective and give prompt written notice of the same to the Rights Agent. Notwithstanding any provision of this Agreement
to the contrary, the Rights shall not be exercisable in any jurisdiction if the requisite qualification in such jurisdiction shall
not have been obtained, the exercise thereof shall not be permitted under applicable law, or a registration statement in respect
thereof shall not have been declared effective. The Company shall promptly notify the Rights Agent in writing after it makes a
public announcement pursuant to this Section 9(c) and furnish the Rights Agent with a copy of such announcement(s).

 

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

 

    	 	13	 

     

    

 

(e)The Company further
covenants and agrees that it will pay when due and payable any and all taxes and charges that may be payable in respect of the
issuance or delivery of the Rights Certificates and of any certificates for a number of one one-thousandths of a share of Preferred
Stock (or Common Stock and/or other securities, as the case may be) upon the exercise of Rights. Neither the Rights Agent nor the
Company shall, however, be required to pay any tax or charge that may be payable in respect of any transfer or delivery of Rights
Certificates to a Person other than, or the issuance or delivery of a number of one one-thousandths of a share of Preferred Stock
(or Common Stock and/or other securities, as the case may be) in respect of a name other than that of the registered holder of
the Rights Certificates evidencing Rights surrendered for exercise, nor shall the Rights Agent or the Company be required to register
for transfer, issue or deliver any certificates for a number of one one-thousandths of a share of Preferred Stock (or Common Stock
and/or other securities, as the case may be) in a name other than that of the registered holder upon the exercise of any Rights
until such tax or charge shall have been paid (any such tax or charge being payable by the holder of such Rights Certificates 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 Preferred
Stock Record Date. Each Person in whose name any certificate evidencing a number of one one-thousandths of a share of Preferred
Stock (or Common Stock and/or other securities, as the case may be) is issued upon the exercise of Rights shall for all purposes
be deemed to have become the holder of record of such fractional shares of Preferred Stock (or Common Stock and/or other securities,
as the case may be) represented thereby on, and such certificate shall be dated, the date upon which the Rights Certificate evidencing
such Rights was duly surrendered and payment of the Purchase Price (and all applicable taxes and charges) was duly made; provided,
however, that if the date of such surrender and payment is a date upon which the Preferred Stock (or Common Stock and/or other
securities, as the case may be) transfer books of the Company are closed, such Person shall be deemed to have become the record
holder of such shares (fractional or otherwise) on, and such certificate shall be dated, the next succeeding Business Day on which
the Preferred Stock (or Common Stock and/or other securities, as the case may be) transfer books of the Company are open. Prior
to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not be entitled to any rights of a stockholder
of the Company with respect to shares for which the Rights shall be exercisable, including the right to vote, to receive dividends
or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings
of the Company, except as expressly provided herein.

 

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

 

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

 

    	 	14	 

     

    

 

(ii)            
Subject to Section 24 hereof, in the event that any Person shall, at any time after the Rights Dividend Declaration
Date, become an Acquiring Person, unless the event causing such Person to become an Acquiring Person is a transaction set forth
in Section 13(a) hereof, then, promptly following the occurrence of such event, proper provision shall be made so that each
holder of a Right (except as provided below and in Section 7(e) hereof) shall thereafter have the right to receive, upon
exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, in lieu of a number of one
one-thousandths of a share of Preferred Stock, such number of shares of Common Stock as shall equal the result obtained by (x)
multiplying the then-current Purchase Price by the then number of one one-thousandths of a share of Preferred Stock for which a
Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event, and (y) dividing that product
(which, following such first occurrence, shall thereafter be referred to as the “Purchase Price” for each Right and
for all purposes of this Agreement) by fifty percent (50%) of the Current Market Price (determined pursuant to Section 11(d)
hereof) per share of Common Stock on the date of such first occurrence (such number of shares, the “Adjustment Shares”).
The Company shall provide the Rights Agent with written notice of the identity of any Acquiring Person, Associate or Affiliate,
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,
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.

 

(iii)           In
the event that the number of shares of Common Stock authorized by the Company’s Restated Certificate of
Incorporation, as may be amended from time to time, but not outstanding or reserved for issuance for purposes other than upon
exercise of the Rights, is not sufficient to permit the exercise in full of the Rights in accordance with the foregoing
subparagraph (ii) of this Section 11(a), the Company shall (A) determine the value of the Adjustment Shares issuable
upon the exercise of a Right (the “Current Value”), and (B) with respect to each Right (subject to Section
7(e) hereof), make adequate provision to substitute for the Adjustment Shares, upon the exercise of a Right and payment
of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price, (3) Common Stock or other equity
securities of the Company (including shares, or units of shares, of preferred stock, such as the Preferred Stock, that the
Board has deemed to have essentially the same value or economic rights as shares of Common Stock (such equity securities
being referred to herein as “Common Stock Equivalents”)), (4) debt securities of the Company, (5) other assets,
or (6) any combination of the foregoing, having an aggregate value equal to the Current Value (less the amount of any
reduction in the Purchase Price), where such aggregate value has been determined by the Board based upon the advice of a
nationally recognized investment banking firm selected by the Board; provided, however, that if the Company shall not have
made adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the later of (x) the
first occurrence of a Section 11(a)(ii) Event and (y) the date on which the Company’s right of redemption
pursuant to expires (the later of (x) and (y) being referred to herein as the “Section 11(a)(ii) Trigger
Date”), then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and
without requiring payment of the Purchase Price, shares of Common Stock (to the extent available) and then, if necessary,
cash, which shares and/or cash have an aggregate value equal to the Spread. For purposes of the preceding sentence, the term
“Spread” shall mean the excess of (i) the Current Value over (ii) the Purchase Price. If the Board determines in
good faith that it is likely that sufficient additional shares of Common Stock could be authorized for issuance upon exercise
in full of the Rights, the thirty (30) day period set forth above may be extended to the extent necessary, but not more than
ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for
the authorization of such additional shares (such thirty (30) day period, as it may be extended, is herein called the
“Substitution Period”). To the extent that the Company determines that action should be taken pursuant to the
first and/or third sentences of this Section 11(a)(iii), the Company (1) shall provide, subject to Section 7(e) hereof,
that such action shall apply uniformly to all outstanding Rights, and (2) may suspend the exercisability of the Rights until
the expiration of the Substitution Period in order to seek such stockholder approval for such authorization of additional
shares and/or to decide the appropriate form of distribution to be made pursuant to such first sentence and to determine the
value thereof. In the event of any such suspension, the Company shall issue a public announcement (with prompt written notice
thereof to the Rights Agent) stating that the exercisability of the Rights has been temporarily suspended, as well as a
public announcement (with prompt written notice thereof to the Rights Agent) at such time as the suspension is no longer in
effect. For purposes of this Section 11(a)(iii), the value of each Adjustment Share shall be the Current Market Price
per share of Common Stock on the Section 11(a)(ii) Trigger Date and the per share or per unit value of any Common
Stock Equivalent shall be deemed to equal the Current Market Price per share of Common Stock on such date.

 

    	 	15	 

     

    

 

(b)            
In case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of shares of
Preferred Stock entitling them to subscribe for or purchase (for a period expiring within forty-five (45) calendar days after,
but not including such record date) shares of Preferred Stock (or shares having the same rights, privileges and preferences as
the shares of Preferred Stock (“Equivalent Preferred Stock”)) or securities convertible into Preferred Stock or Equivalent
Preferred Stock at a price per share of Preferred Stock or per share of Equivalent Preferred Stock (or having a conversion price
per share, if a security convertible into Preferred Stock or Equivalent Preferred Stock) less than the Current Market Price (as
determined pursuant to Section 11(d) hereof) per share of Preferred Stock on such record date, the Purchase Price to be
in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record
date by a fraction, the numerator of which shall be the number of shares of Preferred Stock outstanding on such record date, plus
the number of shares of Preferred Stock that the aggregate offering price of the total number of shares of Preferred Stock and/or
Equivalent Preferred Stock to be so offered (and/or the aggregate initial conversion price of the convertible securities to be
so offered) would purchase at such Current Market Price, and the denominator of which shall be the number of shares of Preferred
Stock outstanding on such record date, plus the number of additional shares of Preferred Stock and/or Equivalent Preferred Stock
to be offered for subscription or purchase (or into which the convertible securities to be so offered are initially convertible).
In case such subscription price may be paid by delivery of consideration, part or all of which may be in a form other than cash,
the value of such consideration shall be as determined in good faith by the Board, whose determination shall be described in a
statement filed with the Rights Agent that shall be binding and conclusive for all purposes on the Rights Agent and the holders
of the Rights. Shares of Preferred Stock owned by or held for the account of the Company shall not be deemed outstanding for the
purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed, and in the event
that such rights or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price that would then be
in effect if such record date had not been fixed.

 

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

 

    	 	16	 

     

    

 

(d)       (i)For
the purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii) hereof, the
“Current Market Price” per share of Common Stock on any date shall be deemed to be the average of the daily
closing prices per share of such Common Stock for the thirty (30) consecutive Trading Days immediately prior to but not
including such date, and for purposes of computations made pursuant to Section 11(a)(iii) hereof, the Current Market
Price per share of Common Stock on any date shall be deemed to be the average of the daily closing prices per share of such
Common Stock for the ten (10) consecutive Trading Days immediately following but not including such date; provided, however,
that in the event that the Current Market Price per share of Common Stock is determined during a period following the
announcement by the issuer of such Common Stock of (A) a dividend or distribution on such Common Stock payable in shares of
such Common Stock or securities convertible into shares of such Common Stock (other than the Rights), or (B) any subdivision,
combination, consolidation, reverse stock split or reclassification of such Common Stock, and the ex-dividend date for such
dividend or distribution, or the record date for such subdivision, combination, consolidation, reverse stock split or
reclassification shall not have occurred prior to the commencement of the requisite thirty (30) Trading Day or ten (10)
Trading Day period, as set forth above, then, and in each such case, the Current Market Price shall be properly adjusted to
take into account ex-dividend trading. The closing price for each day shall be the last sale price, regular way, or, in case
no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to
trading on the New York Stock Exchange (the “NYSE”) or, if the shares of Common Stock are not listed or admitted
to trading on the NYSE, as reported in the principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the shares of Common Stock are listed or admitted to trading
or, if on any such date the shares of Common Stock are not listed or admitted to trading on any national securities exchange,
the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market,
as reported by the National Association of Securities Dealers Automated Quotations System (“NASDAQ”) or such
other system then in use, or, if on any such date the shares of Common Stock are not quoted by any such organization, the
average of the closing bid and asked prices as furnished by a professional market maker making a market in the Common Stock
selected by the Board. If on any such date no market maker is making a market in the Common Stock, the fair value of such
shares on such date as determined in good faith by the Board shall be used. The term “Trading Day” shall mean a
day on which the principal national securities exchange on which the shares of Common Stock are listed or admitted to trading
is open for the transaction of business or, if the shares of Common Stock are not listed or admitted to trading on any
national securities exchange, a Business Day. If the Common Stock is not publicly held or not so listed or traded, the
Current Market Price per share shall mean the fair value per share as determined in good faith by the Board, whose
determination shall be described in a written statement filed with the Rights Agent and shall be binding on the Rights Agent
and the holders of the Rights.

 

 

    	 	17	 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	 	18	 

     

    

 

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

 

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

 

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

 

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

 

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

 

    	 	19	 

     

    

 

(n)              
The Company covenants and agrees that it shall not, at any time after the Distribution Date, (i) consolidate with any other
Person (other than a Subsidiary of the Company in a transaction that complies with Section 11(o) hereof), (ii) merge with
or into any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof),
or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a series of related transactions,
assets, cash flow or earning power aggregating more than fifty percent (50%) of the assets, cash flow or earning power of the Company
and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in
one or more transactions each of which complies with Section 11(o) hereof), if (x) at the time of or immediately after such
consolidation, merger or sale 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 or (y) prior to, simultaneously
with or immediately after such consolidation, merger or sale, the stockholders of the Person who constitutes, or would constitute,
the “Principal Party” for purposes of Section 13(a) hereof shall have received a distribution of Rights previously
owned by such Person or any of its Affiliates or Associates.

 

(o)              
The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 23, Section
24 or Section 27 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is
reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded
by the Rights.

 

(p)               Anything
in this Agreement to the contrary notwithstanding, in the event that the Company shall at any time after the Rights
Dividend Declaration Date and prior to the Distribution Date (i) declare
a dividend on the outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivide
the outstanding shares of Common Stock, or (iii) combine the outstanding shares of Common Stock into a smaller number
of shares, the number of Rights associated with each share of Common Stock then outstanding, or issued or
delivered thereafter but prior to the Distribution Date, shall be proportionately adjusted so that the number of Rights
thereafter associated with each share of Common Stock following any such event shall equal the result obtained by multiplying
the number of Rights associated with each share of Common Stock immediately prior to such event by a fraction the numerator
of which shall be the total number of shares of Common Stock outstanding immediately prior to the occurrence of the event and
the denominator of which shall be the total number of shares of Common Stock outstanding immediately following the occurrence
of such event.

 

Section 12 Certificate
of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made or any event affecting the Rights or
their exercisability (including without limitation an event which causes Rights to become null and void) occurs as provided
in Section 11 and hereof, 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 Stock and the Common
Stock, a copy of such certificate, and (c) if a Distribution Date has occurred, mail a brief summary thereof to each holder
of a Rights Certificate in accordance with Section 25 hereof. Notwithstanding the foregoing sentence, the failure of
the Company to make such certification or give such notice shall not affect the validity of such adjustment or the force or
effect of the requirement for such adjustment. The Rights Agent shall be fully protected in relying on any such certificate
and on any adjustment or statement therein contained and 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 and until it shall have received such a certificate.

 

    	 	20	 

     

    

 

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

 

(a)             In
the event that, following the Stock Acquisition Date, directly or indirectly, (x) the Company shall consolidate with, or
merge with and into, any other Person (other than a Subsidiary of the Company in a transaction that complies with Section
11(o) hereof), and the Company shall not be the continuing or surviving corporation of such consolidation or merger, (y)
any Person (other than a Subsidiary of the Company in a transaction that complies with Section 11(o) hereof) shall
consolidate with, or merge with or into, the Company, and the Company shall be the continuing or surviving corporation of
such consolidation or merger and, in connection with such consolidation or merger, all or part of the outstanding shares of
Common Stock shall be changed into or exchanged for stock or other securities of any other Person or cash or any other
property, or (z) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise
transfer), in one transaction or a series of related transactions, assets, cash flow or earning power aggregating more than
fifty percent (50%) of the assets, cash flow or earning power of the Company and its Subsidiaries (taken as a whole) to any
Person or Persons (other than the Company or any Subsidiary of the Company in one or more transactions each of which complies
with Section 11(o) hereof), then, and in each such case, proper provision shall be made so that: (i) each holder of a
Right, except as provided in Section 7(e) hereof, shall thereafter have the right to receive, upon the exercise
thereof at the then current Purchase Price in accordance with the terms of this Agreement, such number of validly authorized
and issued, fully paid, nonassessable and freely tradeable shares of Common Stock of the Principal Party, not subject to any
liens, encumbrances, rights of first refusal or other adverse claims, as shall be equal to the result obtained by (1)
multiplying the then current Purchase Price by the number of one one-thousandths of a share of Preferred Stock for which a
Right is exercisable immediately prior to the first occurrence of a Section 13 Event (or, if a Section
11(a)(ii) Event has occurred prior to the first occurrence of a Section 13 Event, multiplying the number of such
one one-thousandths of a share for which a Right was exercisable immediately prior to the first occurrence of a Section
11(a)(ii) Event by the Purchase Price in effect immediately prior to such first occurrence of a Section 11(a)(ii)
Event), and (2) dividing that product (which, following the first occurrence of a Section 13 Event, shall be referred
to as the “Purchase Price” for each Right and for all purposes of this Agreement) by 50% of the Current Market
Price (determined pursuant to Section 11(d)(i) hereof) per share of the Common Stock of such Principal Party on
the date of consummation of such Section 13 Event; (ii) such Principal Party shall thereafter be liable for, and shall
assume, by virtue of such, all the obligations and duties of the Company pursuant to this Agreement; (iii) the term
“Company” shall thereafter be deemed to refer to such Principal Party, it being specifically intended that the
provisions of Section 11 hereof shall apply only to such Principal Party following the first occurrence of a Section
11(a)(ii) Event; (iv) such Principal Party shall take such steps (including the reservation of a sufficient number of
shares of its Common Stock) in connection with the consummation of any such transaction as may be necessary to assure that
the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its shares of Common
Stock thereafter deliverable upon the exercise of the Rights; and (v) the provisions of Section 11(a)(ii) hereof shall
be of no effect following the first occurrence of any Section 13 Event.

 

(b)            
“Principal Party” shall mean:

 

(i)in the case
of any transaction described in clause (x) or (y) of the first sentence of (a) hereof, the Person that is the issuer of
any securities into which shares of Common Stock of the Company are converted in such merger or consolidation, and if no securities
are so issued, the Person that is the other party to such merger or consolidation; and

 

 

    	 	21	 

     

    

 

(ii)in the case
of any transaction described in clause (z) of the first sentence of (a) hereof, the Person that is the party receiving the
greatest portion of the assets, cash flow or earning power transferred pursuant to such transaction or transactions;

 

provided, however, that in any such
case, (1) if the Common Stock of such Person is not at such time and has not been continuously over the preceding twelve (12) month
period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another Person
the Common Stock of which is and has been so registered, “Principal Party” shall refer to such other Person; and (2)
in case such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Stock of two or more of which
are and have been so registered, “Principal Party” shall refer to whichever of such Persons is the issuer of the Common
Stock having the greatest aggregate market value.

 

(c)The Company shall
not consummate any such consolidation, merger, sale or transfer unless the Principal Party shall have a sufficient number of authorized
shares of its Common Stock that have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance
with this Section 13 and unless prior thereto the Company and such Principal Party shall have executed and delivered to
the Rights Agent a supplemental agreement providing for the terms set forth in paragraphs (a) and (b) of this Section 13
and further providing that, as soon as practicable after the date of any consolidation, merger or sale of assets mentioned in paragraph
(a) of this, the Principal Party will:

 

(i)                
prepare and file a registration statement under the Act, with respect to the Rights and the securities purchasable upon
exercise of the Rights on an appropriate form, and will use its best efforts to cause such registration statement to (A) become
effective as soon as practicable after such filing and (B) remain effective (with a prospectus at all times meeting the requirements
of the Act) until the Expiration Date; (ii) take all such other action as may be necessary to enable the Principal Party to issue
the securities purchasable upon exercise of the Rights, including the registration or qualification of such securities under all
requisite securities laws of jurisdictions of the various states and the listing of such securities on such exchanges and trading
markets as may be necessary or appropriate; and

 

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

 

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

 

Section 14 Fractional Rights and Fractional Shares.

 

(a)The
Company shall not be required to issue fractions of Rights, except prior to the Distribution Date as provided in Section
11(p) hereof, or to distribute Rights Certificates that evidence fractional Rights. In lieu of such fractional Rights,
the Company shall pay to the registered holders of the Rights Certificates with regard to which such fractional Rights would
otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For
purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of the Rights for
the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable. The closing
price of the Rights for any Trading Day shall be the last sale price, regular way, or, in case no such sale takes place on
such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal
consolidated transaction reporting system with respect to securities listed or admitted to trading on the NYSE or, if the
Rights are not listed or admitted to trading on the NYSE, as reported in the principal consolidated transaction reporting
system with respect to securities listed on the principal national securities exchange on which the Rights are listed or
admitted to trading, or if the Rights are not listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as
reported by NASDAQ or such other system then in use or, if on any such date the Rights are not quoted by any such
organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in
the Rights, selected by the Board. If on any such date no such market maker is making a market in the Rights, the fair value
of the Rights on such date as determined in good faith by the Board shall be used, which determination shall be described in
a statement filed with the Rights Agent and, in relation to the Rights Agent shall be conclusive for all purposes.

 

    	 	22	 

     

    

 

(b)              
The Company shall not be required to issue fractions of shares of Preferred Stock (other than fractions which are integral
multiples of one one-thousandth of a share of Preferred Stock) upon exercise of the Rights or to distribute certificates that evidence
fractional shares of Preferred Stock (other than fractions that are integral multiples of one one-thousandth of a share of Preferred
Stock). In lieu of the issuance of fractional shares of Preferred Stock that are not integral multiples of one one-thousandth of
a share of Preferred Stock, the Company may pay to the registered holders of Rights Certificates at the time such Rights are exercised
as herein provided an amount in cash equal to the same fraction of the current market value of one one-thousandth of a share of
Preferred Stock. For purposes of this Section 14(b), the current market value of one one-thousandth of a share of Preferred
Stock shall be one one-thousandth of the closing price of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii)
hereof) on the Trading Day immediately prior to the date of such exercise.

 

(c)               
Following the occurrence of a Triggering Event, the Company shall not be required to issue fractions of shares of Common
Stock upon exercise of the Rights or to distribute certificates that evidence fractional shares of Common Stock. In lieu of fractional
shares of Common Stock, the Company may pay to the registered holders of Rights Certificates at the time such Rights are exercised
as herein provided an amount in cash equal to the same fraction of the current market value of one (1) share of Common Stock. For
purposes of this Section 14(c), the current market value of one share of Common Stock shall be the closing price per share
of Common Stock (as determined pursuant to Section 11(d)(i) hereof) on the Trading Day immediately prior to the date of
such exercise.

 

(d)              
Whenever a payment for fractional Rights or any 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.

 

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

 

Section 15 Rights
of Action. All rights of action in respect of this Agreement, other than the rights of action given to the Rights Agent under
Section 18 and Section 20 hereof, are vested in the respective registered holders of the Rights Certificates (and,
prior to the Distribution Date, the registered holders of the Common Stock); and any registered holder of any Rights Certificate
(or, prior to the Distribution Date, of the Common Stock), without the consent of the Rights Agent or of the holder of any other
Rights Certificate (or, prior to the Distribution Date, of the Common Stock), may, in such holder’s own behalf and for such
holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce,
or otherwise act in respect of, such holder’s right to exercise the Rights evidenced by such Rights Certificate in the manner
provided in such Rights Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders
of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach
of this Agreement and shall be entitled to specific performance of the obligations hereunder and injunctive relief against actual
or threatened violations of the obligations hereunder of any Person subject to this Agreement.

 

    	 	23	 

     

    

 

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

 

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

 

(b)            
after the Distribution Date, the Rights Certificates are transferable only on the registry books of the Rights Agent if
surrendered at the office or offices of the Rights Agent designated for such purposes, properly executed and duly endorsed or accompanied
by a proper instrument of transfer and with the appropriate forms and certificates duly executed;

 

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

 

(d)            
notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent nor any of their directors,
officers, employees, or agents 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
shall use its best efforts to have any such injunction, order, judgment, decree or ruling lifted or otherwise overturned as soon
as possible.

 

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

 

    	 	24	 

     

    

 

Section 18 Concerning
the Rights Agent.

 

(a)            
The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from
time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and disbursements and other disbursements
incurred in the preparation, negotiation, delivery, amendment, administration and execution of this Agreement and the exercise
and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent and its affiliates, directors, officers,
employees, or agents for, and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand,
settlement, cost or expense (including, without limitation, the reasonable fees and expenses of legal counsel), incurred without
gross negligence, bad faith or willful misconduct on the part of the Rights Agent (each as determined by a final judgment of a
court of competent jurisdiction), for any action taken, suffered or omitted to be taken by the Rights Agent in connection with
the acceptance, administration, exercise and performance of its duties under this Agreement, including the costs and expenses of
defending against any claim of liability and the costs and expenses of enforcing this right of indemnification. The provisions
of this Section 18 and Section 20 hereof shall survive (a) the termination or expiration of this Agreement, (b) the
termination of the obligations of the Rights Agent hereunder in accordance with Section 7(a) hereof, (c) the exercise or
expiration of the Rights and (d) the resignation, replacement or removal of the Rights Agent.

 

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

 

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

 

(a)Any
Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any
Person resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party,
or any Person succeeding to the stockholder services or stock transfer business of the Rights Agent or any successor Rights
Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any
further act on the part of any of the parties hereto; but only if such Person would be eligible for appointment as a
successor Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights Agent
shall succeed to the agency created by this Agreement, any of the Rights Certificates shall have been countersigned but not
delivered, any such successor Rights Agent may adopt the countersignature of an authorized signatory of a predecessor Rights
Agent and deliver such Rights Certificates so countersigned, and if at that time any of the Rights Certificates shall not
have been countersigned, an authorized signatory of any successor Rights Agent may countersign such Rights Certificates
either in the name of the predecessor or in the name of the successor Rights Agent. In all such cases such Rights
Certificates shall have the full force provided in the Rights Certificates and in this Agreement.

 

    	 	25	 

     

    

 

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

 

Section 20 Rights
and Duties of Rights Agent. The Rights Agent undertakes to perform only the duties and obligations expressly imposed by this
Agreement (and no implied duties or obligations) upon the following terms and conditions, by all of which the Company and the
holders of Rights Certificates, by their acceptance thereof, shall be bound:

 

(a)            
The Rights Agent may consult with legal counsel (who may be legal counsel for the Company or an employee of the Rights Agent),
and the advice or opinion of such counsel shall be full and complete authorization and protection to the Rights Agent as to, and
the Rights Agent shall incur no liability for or in respect of, any action taken, suffered or omitted to be taken by it in the
absence of gross negligence, bad faith and willful misconduct (which gross negligence, bad faith or willful misconduct must be
determined by a final, non-appealable judgment of a court of competent jurisdiction) and in accordance with such advice or opinion.

 

(b)            
Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that
any fact or matter (including, without limitation, the identity of any Acquiring Person and the determination of Current Market
Price) be proved or established by the Company prior to taking, suffering or omitting to take any action hereunder, such fact or
matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the
President, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant 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
for, and the Rights Agent shall incur no liability for or in respect of, any action taken, suffered or omitted to be taken by it
in the absence of gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or willful misconduct must
be determined by a final, non-appealable judgment of a court of competent jurisdiction) under the provisions of this Agreement
in reliance upon such certificate.

 

(c)            
The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct (which gross
negligence, bad faith or willful misconduct must be determined by a final, non-appealable judgment of a court of competent jurisdiction).
Anything to the contrary in this Agreement notwithstanding, in no event shall the Rights Agent be liable for special, punitive,
indirect, consequential or incidental loss or damage of any kind whatsoever (including but not limited to lost profits), even if
the Rights Agent has been advised of the likelihood of such loss or damage. Any liability of the Rights Agent under this Agreement
will be limited to the amount of annual fees paid by the Company to the Rights Agent during the twelve (12) months immediately
preceding the event for which recovery from the Rights Agent is being sought.

 

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

 

    	 	26	 

     

    

 

(e)                The
Rights Agent shall not have any liability for or be under any responsibility in respect of the validity of this Agreement
or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity
or execution of any Rights Certificate (except its countersignature thereof) or any modification or order of any
court, tribunal, or governmental authority in connection with the foregoing; nor shall it be liable or responsible for any
breach by the Company of any covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it
be responsible for any change in the exercisability of the Rights (including the Rights becoming null and void pursuant to Section
11 hereof) or any change or adjustment in the terms of the Rights required under the provisions of Sections 3, 11, 23
or 24 hereof (provided, that the foregoing does not nullify any express duties the Rights Agent may have in such
Sections herein) or responsible for the manner, method or amount thereof or the ascertaining of the existence of facts that
would require any such change or adjustment (except with respect to the exercise of Rights evidenced by Rights Certificates
after receipt of the certificate described in Section 12 hereof, upon which the Rights Agent may rely); nor shall it
by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of
Common Stock or Preferred Stock to be issued pursuant to this Agreement or any Rights Certificate or as to whether any shares
of Common Stock or Preferred Stock will, when so issued, be validly authorized and issued, fully paid and nonassessable.

 

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

 

(g)               
The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties
hereunder from the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the President, any Vice President,
the Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company, and is authorized to apply to
such officers for advice or instructions in connection with its duties, and such instructions shall be full authorization and protection
to the Rights Agent and the Rights Agent shall not be liable for or in respect of any action taken, suffered or omitted to be taken
by it in accordance with instructions of any such officer or for any delay in acting while waiting for those instructions. The
Rights Agent shall be fully authorized and protected in relying upon the most recent instructions received by any such officer.
Any application by the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth
in writing any action proposed to be taken, suffered or omitted by the Rights Agent under this Agreement and the date on and/or
after which such action shall be taken or suffered or such omission shall be effective. The Rights Agent shall not be liable for
any action taken, suffered or omitted to be taken by it in accordance with a proposal included in any such application on or after
the date specified in such application (which date shall not be less than five (5) Business Days after the date any officer of
the Company actually receives such application, unless any such officer shall have consented in writing to an earlier date) unless,
prior to taking any such action (or the effective date in the case of an omission), the Rights Agent shall have received written
instructions in response to such application specifying the action to be taken, suffered or omitted.

 

(h)              
The Rights Agent and any stockholder, member, 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 may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though the Rights
Agent were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent or any such stockholder, member,
affiliate, director, officer or employee from acting in any other capacity for the Company or for any other Person.

 

    	 	27	 

     

    

 

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

 

(j)                
No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder (other than internal costs incurred by the Rights Agent in providing
services to the Company in the ordinary course of its business as Rights Agent) or in the exercise of its rights if it reasonably
believes that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it.

 

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

 

Section 21 Change
of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Agreement
upon thirty (30) days’ notice in writing mailed to the Company in the manner set forth in Section 26 herein, and
in the event that the Rights Agent or one or more of its Affiliates is not also the transfer agent for the Company, to each transfer
agent of the Common Stock and Preferred Stock by first-class mail, postage prepaid, or nationally recognized overnight delivery.
If at any time the Rights Agent or one of its Affiliates is also the transfer agent for the Company, in the event such transfer
agency relationship terminates, the Rights Agent will be deemed to have resigned automatically and be discharged from its duties
under this Agreement as of the effective date of such termination, and the Company shall be responsible for sending any required
notice. The Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days’ notice in writing,
mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Stock and Preferred
Stock, by registered or certified mail, and, if such removal occurs after the Distribution Date, to the holders of the Rights
Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting,
the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period
of thirty (30) days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity
by the resigning or incapacitated Rights Agent or by the holder of a Rights Certificate (which holder shall, with such notice,
submit such holder’s Rights Certificate for inspection by the Company), then any registered holder of any Rights Certificate
may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether
appointed by the Company or by such a court, shall be (a) a Person organized and doing business in good standing under the laws
of the United States or of the State of New York or of any other state of the United States, authorized under such laws to exercise
stockholder services powers and which has, along with its affiliates, at the time of its appointment as Rights Agent a combined
capital and surplus of at least $50,000,000 or (b) an Affiliate of a Person described in clause (a) of this sentence. After appointment,
the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally
named as Rights Agent without further act or deed, and the predecessor Rights Agent shall deliver and transfer to the successor
Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or
deed necessary for the foregoing purpose, but the Rights Agent shall not be required to make any additional expenditure or assume
any additional liability in connection with the foregoing. Not later than the effective date of any such appointment, the Company
shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Stock and the Preferred
Stock, and, if such appointment occurs after the Distribution Date, mail a notice thereof in writing to the registered holders
of the Rights Certificates. Failure to give any notice provided for in this Section 21, however, or any defect therein,
shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor
Rights Agent, as the case may be.

 

    	 	28	 

     

    

 

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

 

Section 23 Redemption
and Termination. 

 

(a)            
The Board may, at its option, at any time prior to the earlier of (i) the close of business on the tenth (10th) Business
Day following the Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the close
of business on the tenth (10th) Business Day following the Record Date), or (ii) the Final Expiration Date, redeem all but not
less than all of the then outstanding Rights at a redemption price of $0.001 per Right, as such amount may be appropriately adjusted
to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such redemption price being
hereinafter referred to as the “Redemption Price”). Notwithstanding anything contained in this Agreement to the contrary,
the Rights shall not be exercisable after the first occurrence of a Section 11(a)(ii) Event until such time as the Company’s
right of redemption hereunder has expired. The Company may, at its option, pay the Redemption Price in cash, shares of Common Stock
(based on the Current Market Price of the Common Stock at the time of redemption) or any other form of consideration deemed appropriate
by the Board.

 

(b)            
Immediately upon the action of the Board ordering the redemption of the Rights, evidence of which shall have been filed
with the Rights Agent and without any further action and without any notice, the right to exercise the Rights will terminate and
the only right thereafter of the holders of Rights shall be to receive the Redemption Price for each Right so held. 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 each holder’s last address
as it appears 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 Stock. Any notice that is mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price
will be made.

 

    	 	29	 

     

    

 

(c)             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
other than that specifically set forth in this Section 23 and other than in connection with the purchase or repurchase by
any of them of Common Stock prior to the Distribution Date.

 

Section 24 Exchange.

 

(a)               
The Board may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then
outstanding and exercisable Rights (which shall not include Rights that have become null and void pursuant to the provisions of
Section 7(e) hereof) for Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately adjusted
to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter
referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board shall not be empowered to effect such
exchange at any time after (i) any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan of
the Company or any such Subsidiary, or any entity holding Common Stock for or pursuant to the terms of any such plan), together
with all Affiliates and Associates of such Person, becomes the Beneficial Owner of fifty percent (50%) or more of the Common Stock
then outstanding or (ii) the occurrence of an event specified in Section 13(a) hereof.

 

(b)              
Immediately upon the action of the Board ordering the exchange of any Rights pursuant to subsection (a) of this Section
24 and without any further action and without any notice, the right to exercise such Rights shall terminate and the only right
thereafter of a holder of such Rights shall be to receive that number of shares of Common Stock equal to the number of Rights held
by such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange (with prompt
written notice thereof to the Rights Agent); provided, however, that the failure to give, or any defect in, such notice shall not
affect the legality or validity of such exchange. The Company promptly shall mail a notice of any such exchange to all of the holders
of such Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice that is mailed in
the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will
state the method by which the exchange of the Common Stock for Rights will be effected and, in the event of any partial exchange,
the number of Rights that will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other
than Rights that have become null and void pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights.

 

(c)               
Following the action of the Board ordering the exchange of any Rights pursuant to subsection (a) of this Section 24,
the Company may implement such procedures in its sole discretion as it deems appropriate for the purpose of ensuring that the Common
Stock (or such other consideration) issuable upon an exchange pursuant to this Section 24 not be received by holders of
Rights that have become null and void pursuant to Section 7(e) hereof. In furtherance thereof, if so directed by the Company,
all or a portion of the shares of Common Stock (or other consideration) potentially issuable to holders of Rights upon an exchange
pursuant to this Section 24, who have not verified to the satisfaction of the Company, in its sole discretion, that they
are not Acquiring Persons, may be deposited in a trust established by the Company pending receipt of appropriate verification.

 

    	 	30	 

     

    

 

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

 

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

 

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

 

Section 25 Notice of Certain Events.

 

(a)               
In case the Company shall propose, at any time after the Distribution Date, (i) to pay any dividend payable in stock of
any class to the holders of Preferred Stock or to make any other distribution to the holders of Preferred Stock (other than a regular
quarterly cash dividend out of earnings or retained earnings of the Company), (ii) to offer to the holders of Preferred Stock rights
or warrants to subscribe for or to purchase any additional shares of Preferred Stock or shares of stock of any class or any other
securities, rights or options, (iii) to effect any reclassification of its Preferred Stock (other than a reclassification involving
only the subdivision of outstanding shares of Preferred Stock), (iv) to effect any consolidation or merger into or with any other
Person (other than a Subsidiary of the Company in a transaction that complies with Section 11(o) hereof), or to effect any
sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one transaction
or a series of related transactions, of more than fifty percent (50%) of the assets, cash flow or earning power of the Company
and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in
one or more transactions each of which complies with Section 11(o) hereof), or (v) to effect the liquidation, dissolution
or winding up of the Company, then, in each such case, the Company shall give to the Rights Agent and to the extent feasible to
each holder of a Rights Certificate, in accordance with Section 26 hereof, a notice of such proposed action, which notice
shall specify the record date for the purposes of such stock dividend, distribution of rights or warrants, or the date on which
such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the
date of participation therein by the holders of the shares of Preferred Stock, if any such date is to be fixed, and such notice
shall be so given in the case of any action covered by clause (i) or (ii) above at least twenty (20) days prior to but not including
the record date for determining holders of the shares of Preferred Stock for purposes of such action, and in the case of any such
other action, at least twenty (20) days prior to but not including the date of the taking of such proposed action or the date of
participation therein by the holders of the shares of Preferred Stock, whichever shall be the earlier.

 

(b)              
In the event that any Section 11(a)(ii) Event shall occur, (i) the Company shall as soon as practicable thereafter
give to the Rights Agent and to each holder of a Rights Certificate, to the extent feasible and in accordance with Section
26 hereof, a notice of the occurrence of such event, which notice shall specify the event and the consequences of the event
to holders of Rights under Section 11(a)(ii) hereof, and (ii) all references in the preceding paragraph to Preferred Stock
shall be deemed thereafter to refer to Common Stock and/or, if appropriate, other securities. Until such notice is received by
the Rights Agent, the Rights Agent may presume conclusively for all purposes that no such Section 11(a)(ii) Event has occurred.

 

    	 	31	 

     

    

 

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

 

Acacia Research Corporation

520 Newport Center Drive

Newport Beach, California 92660

Attention: Edward J. Treska, Senior Vice President, General
Counsel and Secretary

 

Subject to the provisions
of Section 21 hereof, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder
of any Rights Certificate to or on the Rights Agent shall be sufficiently given or made if in writing and sent or delivered by
recognized national overnight delivery service or first-class mail, postage prepaid, addressed (until another address is filed
in writing by the Rights Agent with the Company) as follows:

 

Computershare Trust Company, N.A.

250 Royall Street

Canton, MA 02021

Attention: Relationship Manager

 

With a copy to:

 

Computershare Trust Company, N.A.

250 Royall Street

Canton, MA 02021

Attention: Legal Department

 

Notices or demands
authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Rights Certificate (or,
if prior to the Distribution Date, to the holder of certificates representing shares of Common Stock) shall be sufficiently given
or made if in writing and sent or delivered by recognized national overnight delivery service or first-class mail, postage prepaid,
addressed to such holder at the address of such holder as shown on the registry books of the Company.

 

Section 27 Supplements
and Amendments. Subject to this Section 27, this Agreement may be supplemented or amended at the times and for the
purposes set forth below. Prior to the Distribution Date, the Company and the Rights Agent shall, if the Company so directs,
supplement or amend any provision of this Agreement without the approval of any holders of shares of Common Stock. From and
after the Distribution Date, the Company and the Rights Agent shall, if the Company so directs, supplement or amend this
Agreement without the approval of any holders of Rights Certificates in order (i) to cure any ambiguity, (ii) to correct or
supplement any provision contained herein that may be defective or inconsistent with any other provisions herein, (iii) to
shorten or lengthen any time period hereunder or (iv) to change or supplement the provisions hereunder in any manner that the
Company may deem necessary or desirable and that shall not adversely affect the interests of the holders of Rights
Certificates (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person). Upon the delivery of a
certificate from an appropriate officer of the Company that states that the proposed supplement or amendment is in compliance
with the terms of this Section 27, the Rights Agent shall execute such supplement or amendment; provided, that, 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. Notwithstanding anything herein to the contrary, this
Agreement may not be amended (other than pursuant to clauses (i) or (ii) of the third sentence of this Section 27) at
a time when the Rights are not redeemable.

 

    	 	32	 

     

    

 

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

 

Section 29 Determinations
and Actions by the Board, etc.. For all purposes of this Agreement, any calculation of the number of shares of Common Stock
or any other class of capital stock outstanding at any particular time, including for purposes of determining the particular percentage
of such outstanding shares of Common Stock of which any Person is the Beneficial Owner, shall be made in accordance with the last
sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act or Section 382 of the Code and the
Treasury Regulations promulgated thereunder, as appropriate. 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 the Agreement). All such actions, calculations, interpretations and determinations
(including for purposes of clause (y) below, all omissions with respect to the foregoing) which are done or made by the Board
in good faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all
other Persons, and (y) not subject the Board, or any of the directors on the Board to any liability to the holders of the Rights.
The Rights Agent shall be entitled to assume the Board acted in good faith and shall be fully protected and incur no liability
in the Rights Agent’s reliance thereon.

 

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

 

Section 31 Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority
to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall
remain in full force and effect and shall in no way be affected, impaired or invalidated; provided, that notwithstanding anything
in this Agreement to the contrary, if any such term, provision, covenant or restriction is held by such court or authority to
be invalid, void or unenforceable and the Board determines in its good faith judgment that severing the invalid language from
this Agreement would adversely affect the purpose or effect of this Agreement, the right of redemption set forth in Section
23 hereof shall be reinstated and shall not expire until the close of business on the tenth (10th) Business Day following
the date of such determination by the Board and provided further that if any such excluded term, provision, covenant or restriction
shall adversely affect the rights, immunities, duties or obligations of the Rights Agent, the Rights Agent shall be entitled to
resign immediately upon written notice to the Company. Without limiting the foregoing, if any provision requiring a specific group
of directors of the Company to act is held by any court of competent jurisdiction or other authority to be invalid, void or unenforceable,
such determination shall then be made by the Board in accordance with applicable law and the Company’s Restated Certificate
of Incorporation and Bylaws, each as may be amended from time to time.

 

    	 	33	 

     

    

 

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

 

Section 33 Counterparts.
This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Agreement
transmitted electronically shall have the same authority, effect and enforceability as an original signature.

 

Section 34 Descriptive Headings; Interpretation.

 

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

 

(b)            
Whenever the words “include,” “includes” or “including” are used in this Agreement,
they shall be deemed to be followed by the words “without limitation.”

 

(c)            
For purposes of this Agreement, whenever a specific provision of the Code or a specific Treasury Regulation is referenced,
such reference shall also apply to any successor or replacement provision or Treasury Regulation, as applicable.

 

Section 35 Force
Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any delays or
failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist
acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction 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.

 

 

 

 

 

 

 

 

 

 

 

    	 	34	 

     

    

 

 

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

 

 

 

	 	ACACIA RESEARCH CORPORATION
	 	 
	 	By: /s/ Marvin Key
	 	Name: Marvin Key
	 	Title: Chief Executive Officer
	 	 
	 	 
	 	COMPUTERSHARE TRUST COMPANY, N.A.
	 	 
	 	By: /s/ Joseph S. Campbell
	 	Name: Joseph S. Campbell
	 	Title: Vice President

 

 

 

 

 

 

 

 

 

 

    	 	35	 

     

    

 

Exhibit A

 

CERTIFICATE OF DESIGNATION, PREFERENCES
AND

RIGHTS OF SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

of

ACACIA RESEARCH CORPORATION

 

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

 

I, Edward J. Treska,
Senior Vice President, General Counsel and Secretary of Acacia Research Corporation, a corporation organized and existing under
the General Corporation Law of the State of Delaware (herein referred to as the “Company”), in accordance with the
provisions of Section 103 thereof, DO HEREBY CERTIFY:

 

That pursuant to the
authority conferred upon the Board of Directors by the Amended and Restated Certificate of Incorporation of the Company (as may
be amended from time to time, the “Certificate of Incorporation”), the said Board of Directors on March 15, 2016, adopted
the following resolution creating a series of 300,000 shares of Preferred Stock designated as Series A Junior Participating Preferred
Stock:

 

RESOLVED, that
pursuant to the authority vested in the Board of Directors of the Company in accordance with the provisions of the Certificate
of Incorporation, a series of Preferred Stock of the Company be and it hereby is created, and that the designation and amount thereof
and the voting powers, preferences and relative, participating, optional and other special rights of the shares of such series,
and the qualifications, limitations or restrictions thereof are as follows:

 

Section 1. Designation
and Amount. The shares of such series shall be designated as “Series A Junior Participating Preferred Stock” and
the number of shares constituting such series shall be 300,000. Such number of shares may be increased or decreased by resolution
of the Board of Directors; provided, however, that no decrease shall reduce the number of shares of Series A Junior Participating
Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon
the exercise of outstanding options, rights or warrants or upon the exercise of any options, rights or warrants issuable upon conversion
of any outstanding securities issued by the Company convertible into Series A Junior Participating Preferred Stock.

 

Section 2. Dividends
and Distributions.

 

(A)             
Subject to the prior and superior rights of the holders of any shares of any series of Preferred Stock ranking prior and
superior to the shares of Series A Junior Participating Preferred Stock with respect to dividends, the holders of shares of Series
A Junior Participating Preferred Stock, in preference to the holders of common stock of the Company with $0.001 par value (the
“Common Stock”), and of any other junior stock, shall be entitled to receive, when, as and if declared by the Board
of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on the last day of March, June,
September and December in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”),
commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A
Junior Participating Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $1.00 or
(b) subject to the provision for adjustment hereinafter set forth, one thousand (1,000) times the aggregate per share amount of
all cash dividends, and one thousand (1,000) times the aggregate per share amount (payable in kind) of all non-cash dividends or
other distributions other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common
Stock (by reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend Payment
Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share
of Series A Junior Participating Preferred Stock. In the event the Company shall at any time after March 16, 2016 (the “Rights
Dividend Declaration Date”), (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the
outstanding Common Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case
the amount to which holders of shares of Series A Junior Participating Preferred Stock were entitled immediately prior to such
event under clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which
is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

 

    	 	A-1	 

     

    

 

(B)             
The Company shall declare a dividend or distribution on the Series A Junior Participating Preferred Stock as provided in
Paragraph (A) above immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable
in shares of Common Stock); provided that, in the event no dividend or distribution shall have been declared on the Common Stock
during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend
of $1.00 per share on the Series A Junior Participating Preferred Stock shall nevertheless be payable on such subsequent Quarterly
Dividend Payment Date.

 

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

 

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

 

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

 

(B)             
Except as otherwise provided by applicable law, the holders of shares of Series A Junior Participating Preferred Stock and
the holders of shares of Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of the
Company.

 

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

 

Section 4. Certain
Restrictions.

 

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

 

    	 	A-2	 

     

    

 

(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 Junior
Participating Preferred Stock;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 	A-3	 

     

    

 

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

 

Section 7. Consolidation,
Merger, etc. In case the Company 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 and/or any other property, then in any
such case the shares of Series A Junior Participating Preferred Stock shall at the same time be similarly exchanged or changed
in an amount per share (subject to the provision for adjustment hereinafter set forth) equal to one thousand (1,000) times the
aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for
which each share of Common Stock is changed or exchanged. In the event the Company shall at any time after the Rights Dividend
Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common
Stock, or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the amount set forth
in the preceding sentence with respect to the exchange or change of shares of Series A Junior Participating Preferred Stock shall
be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

 

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

 

Section 9. Ranking.
The Series A Junior Participating Preferred Stock shall rank junior to all other series of the Company’s Preferred Stock
as to the payment of dividends and the distribution of assets, unless the terms of any such series shall provide otherwise.

 

Section 10. Amendment.
At any time when any shares of Series A Junior Participating Preferred Stock are outstanding, neither the Certificate of Incorporation
nor this Certificate of Designation shall be amended in any manner that would materially alter or change the powers, preferences
or special rights of the Series A Junior Participating Preferred Stock so as to affect them adversely without the affirmative
vote of the holders of a majority of the outstanding shares of Series A Junior Participating Preferred Stock, voting separately
as a class.

 

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

 

    	 	A-4	 

     

    

 

IN WITNESS WHEREOF,
Acacia Research Corporation has caused this Certificate of Designation to be executed in its corporate name this 16th
day of March, 2016.

 

	 	ACACIA RESEARCH CORPORATION
	 	 	 
	 	 	 
	 	By:	/s/ Edward J. Treska
	 	Name:	Edward J. Treska
	 	Title:	Senior Vice President, General Counsel and Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	A-5	 

     

    

 

 

Exhibit B

 

[Form of Rights Certificate]

 

Certificate No. R- ________ Rights

 

NOT EXERCISABLE AFTER
MARCH 15, 2019 OR SUCH EARLIER DATE AS THE RIGHTS ARE REDEEMED, EXCHANGED OR TERMINATED. THE RIGHTS ARE SUBJECT TO REDEMPTION AT
THE OPTION OF THE COMPANY, AT $0.001 PER RIGHT, AND TO EXCHANGE ON THE TERMS SET FORTH IN THE PLAN. UNDER CERTAIN CIRCUMSTANCES,
RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON (AS SUCH TERM IS DEFINED IN THE PLAN) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS
MAY BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS
OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE PLAN). ACCORDINGLY,
THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e)
OF THE PLAN.]

 

Rights Certificate

 

ACACIA RESEARCH 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 Benefits Preservation Plan,
dated as of March 16, 2016 (the “Plan”), between Acacia Research Corporation, a Delaware corporation (the “Company”),
and Computershare Trust Company, N.A., a federally chartered trust company, as rights agent (the “Rights Agent”), to
purchase from the Company at any time prior to 5:00 P.M. (New York, New York time) on March 15, 2019, unless such date is extended
prior thereto by the Board of Directors, and unless the Rights are earlier redeemed or exchanged, at the office or offices of the
Rights Agent designated for such purpose, or its successors as Rights Agent, one one-thousandth of a fully paid, nonassessable
share of Series A Junior Participating Preferred Stock (the “Preferred Stock”) of the Company, at a purchase price
of $15.00 per one one-thousandth of a share (the “Purchase Price”), upon presentation and surrender of this Rights
Certificate with the Form of Election to Purchase and related certificate duly executed. The number of Rights evidenced by this
Rights Certificate (and the number of shares which may be purchased upon exercise thereof) set forth above, and the Purchase Price
per share set forth above, are the number and Purchase Price as of March 16, 2016, based on the Preferred Stock as constituted
at such date. The Company reserves the right to require prior to the occurrence of a Triggering Event (as such term is defined
in the Plan) that a number of Rights be exercised so that only whole shares of Preferred Stock will be issued. Capitalized terms
used in this Rights Certificate without definition shall have the meanings ascribed to them in the Plan.

 

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

 

As provided in the
Plan, the Purchase Price and the number and kind of shares of Preferred Stock or other securities that may be purchased upon the
exercise of the Rights evidenced by this Rights Certificate are subject to modification and adjustment upon the occurrence of certain
events, including Triggering Events.

 

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

 

    	 	B-1	 

     

    

 

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

 

Subject to the provisions
of the Plan, the Rights evidenced by this Rights Certificate may be redeemed by the Company at its option at a redemption price
of $0.001 per Right at any time prior to the earlier of the close of business on (i) the tenth (10th) Business Day following the
Stock Acquisition Date (as such time period may be extended pursuant to the Plan), and (ii) the Final Expiration Date. In addition,
under certain circumstances following the Stock Acquisition Date, the Rights may be exchanged, in whole or in part, for shares
of the Common Stock, or shares of preferred stock of the Company having essentially the same value or economic rights as such shares.
Immediately upon the action of the Board of Directors of the Company authorizing any such exchange, and without any further action
or any notice, the Rights (other than Rights which are not subject to such exchange) will terminate and the Rights will only enable
holders to receive the shares issuable upon such exchange.

 

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

 

No holder of this Rights
Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of shares of Preferred Stock
or of any other securities of the Company that may at any time be issuable on the exercise hereof, nor shall anything contained
in the Plan or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company
or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give
consent to or withhold consent from any corporate action, or, to receive notice of meetings or other actions affecting stockholders
(except as provided in the Plan), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced
by this Rights Certificate shall have been exercised as provided in the Plan.

 

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

 

 

    	 	B-2	 

     

    

 

 

WITNESS the signature
of a proper officer of the Company.

 

Dated as of _______________ ____, 20___

 

 

 

	 	ACACIA RESEARCH CORPORATION
	 	 
	 	 
	 	By:
	 	Name:
	 	Title:

 

 

 

 

 

 

    	 	B-3	 

     

    

 

 

 

[Form of Reverse Side of Rights Certificate]

 

FORM
OF ASSIGNMENT

 

(To be executed by the registered holder
if such

holder desires to transfer the Rights Certificate.)

 

FOR VALUE RECEIVED ____________________________________
hereby sells, assigns and transfers unto

 

 

(Please print name and address of
transferee)

 

 

 

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

 

Dated _______________ ____, 20___

 

 

	 	Signature

 

 

Signature Guaranteed:

 

NOTICE: The signature(s) must be guaranteed
by a participant in a Medallion Signature Guarantee Program at a guarantee level acceptable to the Company’s transfer agent.

 

Certificate

 

The undersigned hereby
certifies by checking the appropriate boxes that:

 

(1) this Rights Certificate
☐ is ☐
is not being sold, assigned and transferred by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate
of any such Acquiring Person (as such terms are defined pursuant to the Plan);

 

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

 

	Dated _____________ ____, 20___	_________________________
	 	Signature
	Signature Guaranteed:	 

 

 

NOTICE: The
signature(s) 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-4	 

     

    

 

 

NOTICE

 

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

 

In the event the certification
set forth above is not completed in connection with a purported assignment, the Company may deem the Beneficial Owner of the Rights
evidenced by the attached Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof or a transferee of
any of the foregoing and accordingly may deem the Rights evidenced by such Rights Certificate to be null and void and not transferable
or exercisable.

 

The signature(s) must
be guaranteed by a participant in a Medallion Signature Guarantee Program at a guarantee level acceptable to the Company’s
transfer agent.

 

 

 

    	 	B-5	 

     

    

 

FORM
OF ELECTION TO PURCHASE

 

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

 

To: ACACIA RESEARCH CORPORATION:

 

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

 

Please insert social security

or other identifying number

 

 

 

(Please print name and address)

 

 

 

 

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

 

Please insert social security

or other identifying number

 

 

 

(Please print name and address)

 

 

 

 

 

Dated _______________ ____, 20___

 

 

 

Signature

 

Signature Guaranteed:

 

 

NOTICE: The
signature(s) 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	 

     

    

 

 

Certificate

 

The undersigned hereby
certifies by checking the appropriate boxes that:

 

(1)the Rights evidenced
by this Rights Certificate ☐ are ☐
are not being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such
Acquiring Person (as such terms are defined pursuant to the Plan);

 

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

 

	Dated _____________ ____, 20___	_____________________
	 	Signature
	Signature Guaranteed:	 

 

 

NOTICE: The signature(s) must be guaranteed
by a participant in a Medallion Signature Guarantee Program at a guarantee level acceptable to the Company’s transfer agent.

 

 

 

    	 	B-7	 

     

    

 

NOTICE

 

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

 

In the event the certification
set forth above is not completed in connection with a purported exercise, the Company may deem the Beneficial Owner of the Rights
evidenced by the attached Rights Certificate to be an Acquiring Person or an Affiliate or Associate thereof or a transferee of
any of the foregoing and accordingly may deem the Rights evidenced by such Rights Certificate to be null and void and not transferable
or exercisable.

 

The signature(s) must
be guaranteed by a participant in a Medallion Signature Guarantee Program at a guarantee level acceptable to the Company’s
transfer agent.

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	B-8	 

     

    

 

Exhibit C

 

AS SET FORTH IN THE TAX BENEFITS PRESERVATION
PLAN, RIGHTS ISSUED OR TRANSFERRED TO, OR BENEFICIALLY OWNED BY, ANY PERSON THAT IS, WAS OR BECOMES AN ACQUIRING PERSON (AS SUCH
TERMS ARE DEFINED IN THE TAX BENEFITS PRESERVATION PLAN), WHETHER CURRENTLY BENEFICIALLY OWNED BY OR ON BEHALF OF SUCH PERSON OR
BY ANY SUBSEQUENT HOLDER, MAY BE NULL AND VOID

 

 

 

SUMMARY OF TERMS

 

ACACIA RESEARCH CORPORATION

 

TAX BENEFITS PRESERVATION PLAN

 

 

 

	Purpose	Acacia Research Corporation (the “Company”) has certain U.S. federal and state income tax net operating loss carryforwards.  The Internal Revenue Code of 1986, as amended (the “Code”) limits the ability of a company to use its net operating losses and certain other tax assets (“Tax Benefits”) to reduce potential future federal income tax obligations if such company experiences an “ownership change,” as defined in Section 382 of the Code. A company generally experiences such an ownership change if the percentage of its stock owned by its “5-percent shareholders,” as defined in Section 382 of the Code, increases by more than 50 percentage points over a rolling three-year period. The Plan is intended to act as a deterrent to any person or group, together with its affiliates and associates, being or becoming the beneficial owner of 4.9% or more of the common stock, par value $0.001 per share, of the Company (the “Common Stock”).
	Form of Security	
        On March 15, 2016, the Board of Directors
        of the Company (the “Board”), authorized and declared a dividend distribution of one right (a “Right”)
        for each outstanding share of the common stock of the Company with $0.001 par value (the “Common Stock”) to stockholders
        of record at the close of business on March 16, 2016 (the “Record Date”). Each Right entitles the registered holder
        to purchase from the Company a unit consisting of one one-thousandth of a share (a “Unit”) of a series of Series A
        Junior Participating Preferred Stock, par value $0.001 (the “Preferred Stock”), at a purchase price of $15.00 per Unit,
        subject to adjustment (the “Purchase Price”).

         

         

         

 

  

    	 	C-1	 

     

    

 

 

	Rights Certificates	
        Initially, the Rights will be attached to
        all shares of Common Stock then outstanding, and no separate rights certificates (“Rights Certificates”) will be distributed.

         

        Until a Distribution Date (as defined below),
        (i) the Rights will be evidenced by the certificates for the Common Stock (or, in the case of shares reflected on the direct registration
        system, by the notations in the book-entry account system) and will only be transferred with such Common Stock, (ii) new Common
        Stock certificates issued after the Record Date will contain a legend incorporating the Plan by reference and (iii) the surrender
        for transfer of any certificates for Common Stock outstanding will also constitute the transfer of the Rights associated with the
        Common Stock represented by such certificates.

         

        As soon as practicable after a Distribution
        Date, Rights Certificates will be mailed to holders of record of the Common Stock as of the close of business on a Distribution
        Date and, thereafter, the separate Rights Certificates alone will represent the Rights. Except as otherwise determined by the Board,
        only shares of Common Stock issued prior to a Distribution Date will be issued with the Rights.

         

 

 

 

    	 	C-2	 

     

    

 

 

	Exercise Period	
        Prior to a Distribution Date (as defined below),
        the Rights are not exercisable.

         

        Subject to certain exceptions
        specified in the Plan, the Rights will separate from the Common Stock and a distribution date (a “Distribution Date”)
        will occur upon the earlier of (i) ten (10) business days following a public announcement that a person or group of affiliated
        or associated persons (an “Acquiring Person”) has acquired beneficial ownership of 4.9% or more of the outstanding
        shares of Common Stock (the “Stock Acquisition Date”), other than as a result of (x) repurchases of stock by the Company,
        (y) a stock dividend, stock split, reverse stock split or similar transaction or (z) certain inadvertent actions by certain stockholders;
        and (ii) ten (10) business days (or such later date as the Board shall determine) following the commencement after the date of
        the Plan of a tender offer or exchange offer that, if consummated, would result in a person or group becoming an Acquiring Person.
        However, no person who, at the time of the first public announcement of the Plan, beneficially owned 4.9% or more of the outstanding
        shares of Common Stock will be deemed an Acquiring Person, unless and until such person acquires beneficial ownership of additional
        shares of Common Stock, with certain exceptions. In addition, no person who beneficially owns 4.9% or more of the outstanding shares
        of Common Stock will be deemed an Acquiring Person if the Board, in its sole discretion, so determines in light of the intent and
        purposes of the Plan or other circumstances facing the Company. For purposes of the Plan, beneficial ownership is defined to include
        any securities which a person would be deemed to constructively own or which otherwise would be aggregated with shares owned by
        a person pursuant to Section 382 of the Code.

         

        Pursuant to the Plan,
        the Company reserves the right to require prior to the occurrence of a Triggering Event (as defined below) that, upon any exercise
        of Rights, a number of Rights be exercised so that only (i) whole shares of Common Stock or (ii) whole shares of Preferred Stock
        and fractional shares of Preferred Stock that are integral multiples of one one-thousandth of a share of Preferred Stock will be
        issued.

        

         

	Expiration	The Rights will expire on the earliest of (i) 5:00 P.M., New York, New York time, on March 15, 2019 or such later date as may be established by the Board prior to the expiration of the Rights, (ii) the time at which the Rights are redeemed pursuant to the Plan, (iii) the time at which the Rights are exchanged pursuant to the Plan, (iv) the close of business on the effective date of the repeal of Section 382 or any successor statute if the Board determines that the Plan is no longer necessary or desirable for the preservation of Tax Benefits or (v) the close of business on the first day of a taxable year of the Company to which the Board determines that Tax Benefits may not be carried forward.

 

 

 

    	 	C-3	 

     

    

 

 

	Flip-in Trigger	If any person or group of affiliated or associated persons becomes an Acquiring Person, each holder of a Right (other than Rights owned by an Acquiring Person, its affiliates, associates or certain transferees, which will become void) will thereafter have the right to receive, upon exercise, Common Stock (or, in certain circumstances, cash, property or other securities of the Company (including the Preferred Stock)) having a value equal to two times the exercise price of the Right. However, Rights are not exercisable following the occurrence of the event set forth above until such time as the Rights are no longer redeemable by the Company as set forth below.
	Flip-over Trigger	If, at any time following the Stock Acquisition Date, (i) the Company engages in a merger or other business combination transaction in which the Company is not the surviving corporation, (ii) the Company engages in a merger or other business combination transaction in which the Company is the surviving corporation and the Common Stock of the Company is changed or exchanged, or (iii) fifty percent (50%) or more of the Company’s assets, cash flow or earning power is sold or transferred, each holder of a Right (except Rights which have previously been voided as set forth above) shall thereafter have the right to receive, upon exercise, common stock of the acquiring company having a value equal to two times the exercise price of the Right. The events set forth in this paragraph and in the paragraph under the heading “Flip-in Trigger” are referred to as the “Triggering Events.”
	Exchange Feature	At any time after a person or group of affiliated or associated persons becomes an Acquiring Person and prior to the acquisition by such person or group of fifty percent (50%) or more of the outstanding Common Stock, the Board may, in lieu of allowing Rights to be exercised, exchange the Rights (other than Rights owned by such person or group that have become null and void), in whole or in part, for Common Stock or Preferred Stock at an exchange ratio (the “Exchange Ratio”) of one share of Common Stock, or one one-thousandth of a share of Preferred Stock (or of a share of a class or series of the Company’s preferred stock having equivalent rights, preferences and privileges), per Right (subject to adjustment). Immediately upon the action of the Board ordering the exchange of any Rights, the right to exercise such Rights will terminate and the only right thereafter of the holder of such Right will be to receive the Exchange Ratio.
	Equitable Adjustments	
        The Purchase Price payable,
        and the number of Units of Preferred Stock or other securities or property issuable, upon exercise of the Rights are subject to
        adjustment from time to time to prevent dilution (i) in the event of a dividend on the Preferred Stock payable in shares of Preferred
        Stock, a subdivision or split of outstanding shares of Preferred Stock, a combination or consolidation of Preferred Stock into
        a smaller number of shares through a reverse stock split or otherwise, or reclassification of the Preferred Stock, (ii) if holders
        of the Preferred Stock are granted certain rights, options or warrants to subscribe for Preferred Stock or convertible securities
        at less than the current market price of the Preferred Stock, or (iii) upon the distribution to holders of the Preferred Stock
        of cash (excluding regular quarterly cash dividends), assets, evidences of indebtedness or of subscription rights or warrants (other
        than those referred to above).

         

        With certain exceptions,
        no adjustment in the Purchase Price will be required until cumulative adjustments amount to at least one percent (1%) of the Purchase
        Price. The Company will not be required to issue fractions of shares of Preferred Stock (other than fractions which are integral
        multiples of one one-thousandth of a share of Preferred Stock). In lieu of the issuance of fractional shares of Preferred Stock
        that are not integral multiples of one one-thousandth of a share of Preferred Stock, the Company may pay to the holders of Rights
        Certificates at the time such Rights are exercised an amount in cash equal to the same fraction of the current market value (based
        on the market price of the Preferred Stock on the last trading date prior to exercise) of one one-thousandth of a share of Preferred
        Stock.

         

 

 

 

    	 	C-4	 

     

    

 

 

	Redemption Rights	At any time until the earlier of (i) ten business days following the Stock Acquisition Date or (ii) March 15, 2019, the Board may redeem all (but not less than all) the Rights at a price (subject to adjustment) of $0.001 per Right (payable in cash, Common Stock or other consideration deemed appropriate by the Board). Immediately upon the action of the Board ordering redemption of the Rights, the Rights will terminate and the only right of the holders of Rights will be to receive the $0.001 redemption price.
	Amendment	
        Prior to a Distribution
        Date, the provisions of the Plan may be amended or supplemented by the Company (acting through the Board) and the Rights Agent
        without the approval of any holders of shares of Common Stock. After a Distribution Date, the provisions of the Plan may be amended
        by the Company (acting through the Board) and the Rights Agent in order to cure any ambiguity, to correct or supplement any provision
        that may be defective or inconsistent with any other provisions of the Plan, to make changes that do not adversely affect the interests
        of holders of Rights, or to shorten or lengthen any time period under the Plan. Notwithstanding the foregoing, no amendment may
        be made at such time as the Rights are not redeemable, except for certain limited technical amendments, including to cure any ambiguity
        or correct or supplement any provision contained in the Plan which may be defective or inconsistent with any other provision therein.

        

	Anti-Takeover Effects	The Rights may have certain anti-takeover effects. The Rights may cause substantial dilution to any person or group that attempts to acquire the Company without the approval of the Board. As a result, the overall effect of the Rights may be to render more difficult or discourage a merger, tender offer or other business combination involving the Company that is not supported by the Board.
	Miscellaneous	Until a Right is exercised, the holder thereof, as such, will have no separate rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends in respect of the Rights. Although the distribution of the Rights will not be taxable to stockholders or to the Company for U.S. federal income tax purposes, stockholders may, depending upon the circumstances, recognize taxable income in the event that the Rights become exercisable for Common Stock (or other consideration) of the Company or for common stock of the acquiring company or in the event of the redemption of the Rights as set forth above.

 

 

A copy of the Plan
has been or will be filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A or
a Current Report on Form 8-K. A copy of the Plan is available free of charge from the Company. This summary description of the
Rights does not purport to be complete and is qualified in its entirety by reference to the Plan, which is incorporated herein
by reference.

 

 

 

    	 	C-5ASSET
PURCHASE AGREEMENT

 

dated
as of March 15, 2016 between

Intercytex,
Ltd. and

Ember
Therapeutics, Inc.

    	 	1	 

    	 	 	 

    

 

ASSET
PURCHASE AGREEMENT

 

 

 

This
ASSET PURCHASE AGREEMENT (this "Agreement''), is made and entered into as of March 15, 2016 (the "Agreement
Date"), by and among Intercytex, Ltd., a company incorporated in England and Wales ("Seller''), and Ember
Therapeutics, Inc., a Delaware corporation ( "Purchaser".)

 

 

R
E C I T A L S

 

Seller
desires to sell and assign to Purchaser, and Purchaser desires to purchase and acquire from Seller (as provided herein), all assets,
patents, trademarks, formulation, manufacturing protocols, cell stock material, FDA and other regulatory files and rights, clinical
data, proposed formulations, contracts, working inventory, marketing material, websites, licenses and certain other assets currently
owned by Seller on the terms and conditions set forth in this Agreement.

 

A.                   
In order to induce Purchaser to execute this Agreement and consummate the transactions contemplated hereby, contemporaneously
with the execution of this Agreement, the board of directors of the Seller have authorised the execution of this agreement and
a copy of the board minutes in the form attached hereto as Exhibit A-2 (the "Board Minutes") evidencing
such authorization have been provided to the Purchaser.

 

B.                   
In order to induce Purchaser to execute this Agreement and consummate the transactions contemplated hereby, contemporaneously
with the execution of this Agreement, Seller is delivering to Purchaser duly authorized and executed waivers, releases and any
other agreement reasonably required by Purchaser pursuant to which Buyer shall have waived, released and assigned in writing to
Seller any and all of his right, title and interest including intellectual property rights in and to the Materials and Derivative
Works (as defined therein).

 

NOW,
THEREFORE, in consideration of the facts recited above and the mutual agreements set forth herein, the parties hereby agree as
follows:

 

ARTICLE
I

 

DEFINITIONS

 

Section
1.01Certain Defined Terms. As used in this Agreement, the following terms will have the following meanings:

 

"Accounts
Receivable" means all accounts receivable of the Seller that as of the date of this Agreement.

 

"affiliate"
means, with respect to any specified person, any other person that directly or indirectly controls, is controlled by, or is
under common control with, such specified person.

    	 	2	 

    	 	 	 

    

 

"AncillaryAgreement
" will have the meaning set forth in Section 3.01.

 

"Assigned
Contract" will have the meaning set forth in Section 2.02(i). "Assumed Liabilities" will have the meaning
set forth in Section 2.04(a).

 

"Bill
of Sale" will have the meaning set forth in Section 2.09(a).

 

"Business"
means Seller's business of developing, manufacturing and marketing solutions to advance regenerative medicine by using human
dermal fibroblast cells, marketed as VaveltaTM, in several indications, including contractures and cosmetic applications or otherwise
commercially exploiting, all or any aspect of the product, the Intellectual Property Rights and/or any aspect or part thereof.

 

"Business
Contract" shall mean any Contract: (a) to which the Seller is a party; (b) by which the Seller or any of its assets is
or may become bound or under which the Seller has, or may become subject to, any obligation; or (c) under which the Seller has
or may acquire any right or interest.

 

"Business
Records" will have the meaning set forth in Section 2.02(j).

 

"Business
Tangible Assets" will have the meaning set forth in Section 2.02(h).

 

"Closing"
and "Closing Date" will have the respective meanings specified for such terms in Section 2.08.

 

"Confidential
Information" will have the meaning set forth in Section 5.03.

 

"Contract'
shall mean any written, oral, implied agreement or contract.

 

"control"
(including the terms "controlled by" and "under common control with'') means the possession,
directly or indirectly, of the power to direct or cause the direction of the management policies of a person, whether through
the ownership of stock, as an officer, director, trustee or executor, by contract or otherwise.

 

"Disclosing
Party" will have the meaning set forth in Section 5.03.

 

"Documentation"
means, collectively customer accounts, all programmers' notes or logs, source code annotations, user guides, manuals, instructions,
software architecture designs, layouts, any know-how, and any other designs, plans, drawings, documentation or materials that
are related in any manner to any Intellectual Property Rights, whether in tangible or intangible form.

 

"ECAAC"
means European Collection of Authenticated Cell Cultures.

 

"Encumbrance"
means any pledge, lien, collateral assignment, security interest, mortgage, title retention, conditional sale or other security
arrangement, or any charge, adverse claim of title, ownership or right to use, or any other encumbrance of any kind whatsoever.

 

"Excluded
Assets" will have the meaning set forth in Section 2.03.

    	 	3	 

    	 	 	 

    

 

"Excluded
Liabilities" will have the meaning set forth in Section 2.04(a).

 

"Intellectual
Property Rights" means, collectively, all of the following intangible worldwide legal rights of the Seller, whether or
not filed, perfected, registered or recorded: (i) patents, patent applications, and patent rights, including any and all continuations,
continuations-in-part, divisions, reissues, reexaminations or extensions thereof, whether now existing or hereafter filed, issued
or acquired; (ii) rights associated with works of authorship (including audiovisual works), including copyrights, copyright applications,
and copyright registrations, moral rights; (iii) rights relating to the protection of trade secrets and confidential information;
(iv) design rights and industrial property rights; (v) any rights analogous to those set forth in the preceding clauses and any
other proprietary rights relating to intangible property including trademarks, service marks, trademark and service mark registrations
and applications therefor, trade names, rights in trade dress and packaging and all goodwill associated with the same; (vi) rights
in customer and prospect lists, trade secrets, know-how, designs, plans and specifications; and (vii) all rights to sue for any
past, present or future infringement of any of the foregoing rights and the right to all income, royalties, damages and payments
now or hereafter due or payable with respect to any of the foregoing rights, including without limitation damages for past, present
or future infringement thereof. The term "Intellectual Property Rights" does not refer to tangibles or tangible embodiments
of Intellectual Property Rights.

 

"JAMS"
will have the meaning set forth in Section 7.01.

 

"Liabilities"
means any and all debts, liabilities and obligations, whether accrued or fixed, absolute or contingent, matured or unmatured,
determined or determinable, known or unknown, including, without limitation, those arising under any law, action or governmental
order and those arising under any contract, agreement, arrangement, commitment or undertaking.

 

"PatentAssignment"
will have the meaning set forth in Section 2.09(d).

 

"Person"
means any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity.

 

"Purchased
Assets" will have the meaning set forth in Section 2.02. "Purchase Price" will have the meaning set
forth in Section 2.05(a). "Receiving Party" will have the meaning set forth in Section 5.02.

 

"Seller's
Confidential Information" will have the meaning set forth in Section 5.02(b).

 

    	 	4	 

    	 	 	 

    

 

"Tax"
or "Taxes" means all foreign, federal, state and local taxes of any kind whatsoever (whether payable directly
or by withholding), including but not limited to sales, use, excise, franchise, ad valorem, property, inventory, value added and
payroll taxes, together with any interest and penalties, additions to tax or additional amounts with respect thereto, imposed
by any taxing authority.

 

ARTICLE
II

 

PURCHASE
AND SALE OF PURCHASED ASSETS

 

Section
2.01Agreement to Sell and Purchase. Subject to the terms and conditions of this Agreement, on the Closing Date Seller
will sell, assign, transfer, convey and deliver to Purchaser, and Purchaser will purchase and acquire, all right, title and interest
in and to the Purchased Assets (as defined below) free and clear of all Encumbrances whatsoever.

 

Section
2.02Purchased Assets Defined. As used in this Agreement, the term "Purchased Assets" will mean, collectively,
each and all of the following assets and properties (whether or not owned by Seller as of the Agreement Date):

 

(a)                   
the current cell inventory, protocols, Standard Operating Procedures (SOPs), data files, clinical files, regulatory files;

 

(b)                   
current and future formulations and inventory;

 

(c)                    
the toll free numbers, any software and associated hardware used in the manufacturing of the product;

 

(d)                    
the Intellectual Property Rights, including patents and trademarks;

 

(e)                    
[the Accounts Receivable and vendor credits;]

 

(f)                     
any and all copies in a tangible medium and other tangible embodiments of (i) the Documentation; and (ii) the Intellectual Property
Rights;

 

(g)                     
all documentation, marketing materials, promotional literature, videos, commercials, images and other sales or marketing-related
materials and other collateral information used in connection with the Business as of March l, 2016 (collectively, the "Business
Tangible Assets' ;

 

(h)                   
those Business Contracts listed on Exhibit D attached hereto (collectively hereinafter referred to as the "Assigned
Contracts' ; and

 

(i)                     
all of Seller's marketing and sales information, including customer pricing, marketing plans, customer lists (the "Business
Records' , it being understood that Seller may retain copies of such Business Records.

 

    	 	5	 

    	 	 	 

    

 

Section
2.03Excluded Assets. As used herein, the term "Excluded Assets" means any asset or property of Seller
not expressly included among the Purchased Assets. Purchaser is not purchasing any of the Excluded Assets.

 

Section
2.04Assumption and Exclusion of Liabilities.

 

(a)                  
Assumed Liabilities. Subject to the terms and conditions of this Agreement, Purchaser, upon the successful consummation
of the sale and purchase of the Purchased Assets pursuant hereto on the Closing Date, will:

 

(i)                   
assume and pay, perform and discharge when due those obligations and liabilities of Seller:

 

(1)       
under any Assigned Contracts, regardless of whether such obligations or liabilities first accrued or arose before or after the
Closing Date but only to the extent that such obligations and liabilities accrued or arose for reasons other than any breach,
violation or default by Seller of the terms of the Assigned Contracts; and

 

(2)       
with respect only to those Maintenance and Service Contracts that are part of the Assigned Contracts, obligations to provide maintenance
and support under such Contracts regardless of whether such obligations first accrued or arose before or after the Closing Date;
and

 

(ii)                 
assume and pay the following liabilities of the Seller on the Closing Date:

 

(1)                
39,267 euros owed to the Karolinska Institute;

(2)                
£13,333 owed to Paul Kemp in respect of his unpaid salary; and

(3)                
£15,237 owed to Reddie & Grose for accrued patent expenses.

 

(iii)               
for the avoidance of doubt, assume and pay, in accordance with the terms of any and all invoices raised by ECAAC, all fees to
be paid by the Seller to ECAAC for cell storage costs for all periods up to and including the Closing Date (whether or not invoiced
by ECAAC as at the Closing Date).

 

(the
obligations and liabilities under (i), (ii) and (iii) collectively referred to herein as the "Assumed Liabilities").

 

(b)                   
No Other Liabilities Assumed. As a material consideration and inducement to Purchaser to enter into this Agreement, Seller
will retain, and will be solely responsible for paying, performing and discharging when due, and Purchaser will not assume or
otherwise have any responsibility or liability for, any and all Liabilities of Seller (whether now existing or hereafter arising)
other than the Assumed Liabilities (the "Excluded Liabilities'?. By way of example and not by way of limitation, the
Excluded Liabilities that are not being assumed by Purchaser (other than to the extent that such liability is an Assumed Liability)
include, without limitation;

 

(i)                    
any and all Taxes now or hereafter due and payable by Seller or any affiliate of Seller;

    	 	6	 

    	 	 	 

    

 

(ii)                    
any and all Taxes attributable to any of the Purchased Assets that arose during any time period or portion thereof ending on or
prior to the Closing Date;

 

(iii)                  
any and all Taxes attributable to the Seller whenever such Taxes arose;

 

(iv)                  
any and all trade payables incurred or accrued by the Seller at any time prior to the Closing Date;

 

(v)                   
any and all Liabilities with respect to any environmental damage, or for any disposal, discharge or other use or treatment of
any hazardous or toxic substance, under any and all laws and regulations relating to the environment or the regulation of any
hazardous or toxic substances of any type;

 

(vi)
            any and all Liabilities to the Seller's employees or contractors
related to or arising from or with respect to any act or omission of Seller or arising from or with respect to any event, including
without limitation any Liabilities to any of the Seller's employees for the payment of any and all wages and commissions or accrued
and unused vacation time or for the reimbursement of any expenses incurred by Seller's employees and any Liabilities to any of
the Seller's contractors for any amounts due to them in connection with services provided to Seller;

 

(vii)                
any and all Liabilities arising from the termination by Seller of the employment of any current or future employees of Seller
or any of its affiliates, any other claims brought against Seller arising from Seller's employment of any person, or arising from
any duties or obligations under any existing or future employee benefit plans of Seller or any of its affiliates;

 

(viii)               
any and all Liabilities with respect to Taxes arising from Seller's use of contractors in connection with the Business;

 

(ix)                  
any and all Liabilities arising from any breach or default by Seller of any contract, agreement or commitment of Seller (including
but not limited to any breach or default of any of the Assigned Contracts);

 

(x)                    
any and all Liabilities now or hereafter arising from or with respect to, the sale or license of any products or services of,
by or for Seller;

 

(xi)                  
any and all Liabilities relating to or arising out of any of the Excluded Assets; and

 

(xii)                 
any and all inter-company payables incurred by, or owed to, the Business accrued or arising prior to the Closing Date.

 

Section
2.05Purchase Price; Milestone Pavment; and Ongoing Receivables Expense.

 

(a)                   
Purchase Price. The aggregate purchase price for the Purchased Assets to be paid by Purchaser (the "Purchase
Price" will be  two million dollars ($2,000,000) in the manner and according to the following;

 

    	 	7	 

    	 	 	 

    

 

(i)                     
the issuance of  one   million dollars ($lM) million in shares of Ember common stock (the "Common Stock), with the
share price calculated according to the average closing price for the seven (7) days prior to the date of signing the
agreement (the "Average Closing Price"); and

 

(ii)                 
the issuance of warrants (the "Warrants") to purchase an amount of shares of Common Stock equal to one million dollars
($1M), at an exercise price per Warrant equal to the Average Closing Price. The warrants will have a five-year (5) maturity period.

 

(b)                 
Milestone Payment. The Purchaser shall pay Seller a one time fee of *** (***) within thirty days (30) of
the commercial launch of VaveltaTM in the U.S. for any indication and; (i) a one time milestone payment of ***
(***) at reaching *** (***) in sales of VaveltaTM in any indication.

 

(c)                  
Ongoing Receivables Expenses. Purchaser shall assume responsibility of paying expense receivables for Seller related to
the Purchased Assets, including legal fees, storage fees and other mutually agreed to miscellaneous fees not to exceed seventy
five thousand dollars ($75K) per month.

 

Section
2.06Purchaser Covenants.

 

(a)                  
The Purchaser shall use its best efforts to continue to develop the assets and shall inform the Seller in the event the development
efforts cease.

 

(b)                 
The Purchaser undertakes that it shall not and it shall procure that none of its officers, employees, Affiliates or agents shall
take, or require the Purchaser or its Affiliates to take any action the sole or main purpose of which is to avoid the Milestone
Payment.

 

Section
2.07Right of Set-Off. Purchaser's obligation to make payments to Seller pursuant to 2.05 or Section 2.09 shall be subject
to reduction or non-payment due to any Losses for which Purchaser has the right to make a claim pursuant to ARTICLE III with respect
to any Losses which are not disputed by Seller, Purchaser shall reduce any payment pursuant to 2.05 or Section 2.09 by an amount
equal to such Losses.

 

Section
2.08Closing. Subject to the terms and conditions of this Agreement, the sale and purchase of the Purchased Assets contemplated
hereby will take place at a closing 135 East 57'h Street, 24th Floor, NY, NY 10022 (the "Closing' at 9:00 a.m.,
Eastern Time, on the date of this Agreement or at such other time or on such other date on or before March 15, 2016 or at such
other place (or by such other means, including a remote Closing wherein the relevant documents are delivered by means of facsimile,
mail or courier) as Seller and Purchaser may mutually agree (the day on which the Closing takes place being referred to herein
as the "Closing Date' .

 

Section
2.09Certain Closing Deliveries by Seller. At the Closing, the Seller will deliver or cause to be delivered to Purchaser
all of the following items, against delivery to Seller of the items, payments, documents and certificates to be delivered to Seller
by Purchaser at the Closing pursuant to Section 2.10 hereof:

 

    	 	8	 

    	 	 	 

    

 

(a)                   
counterparts of the Bill of Sale and Assignment Agreement in substantially the form of Exhibit F attached hereto (the "Bill
of Sale'')executed on Seller's behalf by Seller's Chief Executive Officer and Secretary;

 

(b)                   
fully executed Consulting Agreement with Dr. Paul Kemp which tasks shall include promoting the transaction, technology transfer
and the commercial efforts of the product, including, but not limited to assistance in technology transfer, manufacturing, clinical
trials development, FDA and other regulatory meetings, interviews, guest appearances, commercial participation and speaker engagements.
The consultant shall be paid an hourly fee of two hundred dollars ($200) per hour plus pre-approved expenses. Exhibit G
attached hereto (the "Consulting Agreement" );

 

(c)                   
a receipt for the Purchase Price executed by a duly authorized officer of Seller;

 

(d)                   
assignments from Seller to Purchaser of all patent rights included in the Purchased Assets and all registered and unregistered
trademarks and service marks included in the Purchased Assets, duly executed on behalf of Seller by Seller's Chief Executive Officer
and notarized, and in a form acceptable for recording with the United States Patent and Trademark Office, and in substantially
the form of Exhibit H attached hereto (the "Patent Assignment' ') or Exhibit I attached hereto (the "Mark
Assignment' '),as applicable; and

 

Section
2.10Certain Closing Deliveries by Purchaser. At the Closing, Purchaser will deliver to Seller all of the following
items, against delivery to Purchaser of the items, documents, assets and certificates to be delivered to Purchaser by Seller at
the Closing pursuant to Section 2.09 hereof:

 

(a)                  
the Purchase Price by:

 

(i)                              
the issue of a certificate for the Common Stock issued pursuant to section 2.05(a)(i); and

 

(ii)                            
the issue of warrants for the Common Stock pursuant to section 2.05(a)(ii); and

 

(b)                 
the aggregate of the sums required to be paid pursuant to section 2.04 (a)(ii); and

 

ARTICLE
III

REPRESENTATIONS
AND WARRANTIES OF SELLER

 

Seller
hereby warrants to the best knowledge of the Seller to Purchaser that, except as may be expressly otherwise set forth in Seller's
Disclosure Schedule attached as Exhibit K hereto, all of the following statements in this ARTICLE III are true and correct:

 

Section
3.01Incorporation and Authority. Seller is a corporation duly incorporated, validly existing and in good standing under
the laws of England and Wales and has all necessary corporate power and authority to enter into this Agreement and the Bill of
Sale (the Bill of Sale together with all other assignments and documents that Seller is to execute and deliver pursuant to this
Agreement being hereinafter collectively referred to as the "Ancillary Agreements"), to carry out and perform
its obligations hereunder and thereunder and to consummate all of the transactions contemplated hereby and thereby. The execution,
delivery and performance by Seller of this Agreement and the Ancillary Agreements, and the sale of the Purchased Assets to Purchaser
and consummation of all the transactions contemplated hereby and thereby on the terms and conditions set forth herein, have been
duly and validly authorized by Seller by all necessary corporate action of Seller's Board of Directors and shareholders. No authorization,
decree or order of any court, bankruptcy court, bankruptcy trustee, creditors' committee, receiver, governmental authority or
any other person is required in order to authorize or enable Seller to: (i) enter into this Agreement and the Ancillary Agreements;
(ii) sell, assign, convey and transfer all the Purchased Assets to Purchaser as contemplated by this Agreement; or (iii) to carry
out and perform Seller's obligations under this Agreement and the Ancillary Agreements. This Agreement has been, and at the Closing
the Ancillary Agreements will be, duly and validly executed and delivered by Seller, and (assuming due authorization, execution
and delivery by Purchaser) this Agreement constitutes and, upon the execution of each of the Ancillary Agreements by the parties
thereto, the Ancillary Agreements will constitute, legal, valid and binding obligations of Seller enforceable against Seller in
accordance with their respective terms.

    	 	9	 

    	 	 	 

    

Section
3.02No Conflict. The execution, delivery and performance of this Agreement and the Ancillary Agreements by Seller,
do not and will not: (i) conflict with or violate the Certificate of Incorporation or By-laws of Seller; (ii) conflict with or
violate any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award applicable to the Purchased
Assets; (iii) result in any breach of, or constitute a default (or event which with the giving of notice or lapse of time, or
both, would become a default) under, or give to others any rights of termination, rescission, amendment, acceleration or cancellation
of, any of the Assigned Agreements or any material note, bond, mortgage, indenture, contract, agreement, lease, license, permit,
franchise or other instrument relating to any of the Purchased Assets to which Seller is a party or is bound or by which any of
the Purchased Assets are bound or affected; or (iv) result in the creation of any Encumbrance on any of the Purchased Assets.

 

Section
3.03Consents and Approvals. Except as set forth on Schedule 3.03 of the Seller's Disclosure Schedule, the execution
and delivery of this Agreement and the Ancillary Agreements by Seller do not, and the performance of this Agreement and the Ancillary
Agreements by Seller (including Seller's assignment of any Assigned Contracts to Purchaser) will not, require any consent, approval,
authorization or other action by, or filing with or notification to, any third party, including but not limited to any governmental
or regulatory authority.

 

Section
3.04Title to and Condition of Purchased Assets. Seller owns all the Purchased Assets and Seller has good and marketable
title in and to all the Purchased Assets, free and clear of all Encumbrances whatsoever. None of the Purchased Assets is licensed
from any third party and none of the Purchased Assets is licensed to any third party. All of the tangible personal property included
in the Purchased Assets is conveyed in an "as is" condition. Title to all the Purchased Assets is freely transferable
from Seller to Purchaser free and clear of all Encumbrances without obtaining the consent or approval of any person or party.

 

    	 	10	 

    	 	 	 

    

 

Section
3.05Full Force and Effect. Each Assigned Contract, permit, franchise or other instrument assigned to or assumed by
Purchaser pursuant to this Agreement or any of the Ancillary Agreements is in full force and is not subject to any breach or default
thereunder by any party thereto.

 

Section
3.06Litigation. There is no claim, action, suit, investigation or proceeding of any nature pending or, to the best
of Seller's knowledge, threatened, at law or in equity, by way of arbitration or before any court, governmental department, commission,
board or agency that: (i) may adversely affect, contest or challenge Seller's authority, right or ability to sell or convey any
of the Purchased Assets to Purchaser hereunder or otherwise perform Seller's obligations under this Agreement or any of the Ancillary
Agreements; (ii) challenges or contests Seller's right, title or ownership of any of the Purchased Assets; (iii) asserts that
any Purchased Asset, or any action taken by any employee or agent of the Seller with respect to any Purchased Asset, infringes
any Intellectual Property Rights of any third party or constitutes a misappropriation or misuse of any Intellectual Property Rights,
trade secrets or proprietary rights of any party; (iv) seeks to enjoin, prevent or hinder the consummation of any of the transactions
contemplated by this Agreement or the Ancillary Agreements; (v) would impair or have an adverse affect on Purchaser's right or
ability to use or exploit any of the Purchased Assets or impair or have an adverse effect on the value of any Purchased Asset;
or (vi) involves a wrongful termination, harassment or other employment-related claim by any employee, potential employee or contractor
of Seller. There are no judgments, decrees, injunctions or orders of any court, governmental department, commission, agency, instrumentality
or arbitrator pending or binding against Seller which affect the Purchased Assets.

 

Section
3.07Intellectual Property.

 

(a)                    
The Purchased Assets include all Intellectual Property Rights necessary to enable Purchaser to conduct the Business in the manner
in which such business was conducted on March 1st, 2016, without the need for any license from any person.

 

(b)                    
The Purchased Assets and the distribution, sale and license of such Purchased Assets, including but not limited to the Documentation
and, the Intellectual Property Rights do not infringe upon any Intellectual Property Rights of any third party and no third party
has asserted or threatened to assert against Seller any claim of infringement of Intellectual Property Rights.

 

(c)                     
Seller owns, possesses, has the exclusive right to make, use, sell, license, has the right to bring actions for the infringement
of, and where necessary, has made timely and proper applications for, the Intellectual Property Rights used in the Business that
are included in the Purchased Assets.

 

(d)                     
Seller has not granted any third party any outstanding licenses or other rights to any of the Purchased Assets.

 

(e)                     
None of the Purchased Assets is held or used pursuant to a license or similar grant of rights by any third party.

    	 	11	 

    	 	 	 

    

 

(f)                    
Neither Seller nor any of its affiliates is liable for, nor has made any contract or arrangement whereby it may become liable
to, any person for any royalty, fee or other compensation for the ownership, use, license, sale, distribution, manufacture, reproduction
or disposition of any Purchased Asset.

 

(g)                    
All employees and consultants of Seller and any other third parties who have been involved in the product development of Seller's
Business or Software or who were otherwise involved in the creation and/or development of any Documentation and/or the Intellectual
Property Rights have executed invention assignment agreements in the form delivered to Purchaser's counsel and all employees and
consultants of Seller who have access to confidential information or trade secrets of the Business and/or which relate to Purchased
Assets have executed appropriate nondisclosure agreements in the form delivered to Purchaser's counsel.

 

(h)Seller
has taken reasonable steps, consistent with industry standards, to protect the secrecy and confidentiality of all Documentation
and Intellectual Property Rights.

 

Section
3.08Insolvency. No order has been made, no petition presented, or resolution passed for the winding up of Seller, or
then appointment of any trustee or for the benefit of creditors or the preparation or commencement of any bankruptcy or insolvency
proceeding nor has any resolution been passed, agreement entered into, or term sheet or letter of intent approved by Seller with
respect to a future sale or disposition of material assets of Seller other than pursuant to this Agreement.

 

Section
3.09Assigned Contracts

 

(a)Exhibit
D identifies and provides a description of each Assigned Contract. The Seller has delivered to the Purchaser copies of all
Assigned Contracts identified in Exhibit D, including all amendments thereto. Each Assigned Contract is valid and
in full force and effect.

 

Section
3.10Limitations.

(a)The
Seller shall have no liability for breach of this Agreement and in particular for breach of Section 3 unless the Purchaser makes
a claim within 12 months of Closing. The liability of the Seller in respect of any breach of this Agreement and in particular
Section 3 shall not exceed the Purchase Price paid and the Seller shall not be entitled to bring a claim for breach of this Agreement
and in particular for Section 3 unless the amount of the claim exceeds $20,000.

 

ARTICLE
IV

 

REPRESENTATIONS
AND WARRANTIES OF PURCHASER

 

Purchaser
represents and warrants to Seller as follows:

 

Section
4.01Incorporation and Authority. Purchaser is a corporation duly incorporated, validly existing and in good standing
under the laws of the State of Delaware and has all necessary corporate power and authority to enter into this Agreement to carry
out its obligations hereunder and to consummate the transactions contemplated hereby. This Agreement has been duly and validly
executed and delivered by Purchaser, and (assuming due authorization, execution and delivery by Seller) this Agreement constitutes
a legal, valid and binding obligation of Purchaser enforceable against Purchaser in accordance with its terms.

 

    	 	12	 

    	 	 	 

    

 

Section
4.02No Conflict. The execution, delivery and performance of this Agreement do not (a) violate or conflict with the
Certificate of Incorporation or By-laws of Purchaser, or (b) conflict with or violate any law, rule, regulation, order, writ,
judgment, injunction, decree, determination or award applicable to Purchaser except such conflicts or violations as would not
prevent or delay Purchaser from consummating the transactions contemplated by this Agreement.

 

Section
4.03 No Brokers. No broker, finder or investment banker is entitled to any brokerage, finder's or other fee or commission
in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Purchaser.

 

ARTICLE
V

ADDITIONAL
COVENANTS

Section
5.01Books and Records. If, in order to properly prepare documents required to be filed with governmental authorities
(including taxing authorities) or its financial statements, it is necessary that either party hereto or any successors be furnished
with additional information relating to the Purchased Assets, the Assumed Liabilities or the Business, and such information is
in the possession of the other party hereto, such party agrees to use its reasonable efforts to furnish such information to such
other party, at the cost and expense of the party being furnished such information.

 

Section
5.02Confidentiality.

 

(a)Mutual
Confidentiality. All copies of financial information, marketing and sales information, pricing, marketing plans, business
plans, financial and business projections, customer lists, methodologies, inventions, software, technology, know-how, product
designs, product specifications and drawings, and other confidential and/or proprietary information of a party to this Agreement
are hereinafter referred to as "Confidential Information". A party who owns and discloses its Confidential Information
is referred to below as a "Disclosing Party" and a party who receives or is given access to a Disclosing Party's
Confidential Information is referred to below as a "Receiving Party." Each party hereto agrees that all Confidential
Information of another party that is disclosed to such party in the course of negotiating the transactions contemplated by this
Agreement or conducting due diligence in connection herewith will be held in confidence and will not be used or disclosed by the
Receiving Party except for the purposes relating to this Agreement for which such Confidential Information was disclosed, and
will be promptly destroyed by the Receiving Party or returned to the Disclosing Party, upon the Disclosing Party's written request.
No party's employees will be given access to Confidential Information of another party except on a "need to know" basis
and such employees shall be informed of the need to keep such Confidential Information confidential. It is agreed that Confidential
Information will not include information that: (i) was known to such Receiving Party before receipt of such information
from the Disclosing Party; (ii) is or becomes generally known to the public through no breach of this Section or any act or omission
on the part of the Receiving Party; (iii) is disclosed by a third party having the legal right to disclose such information with
no obligation of confidence to the Disclosing Party; or (iv) is independently developed by the Receiving Party without use of
any of the Disclosing Party's Confidential Information. Effective upon the Closing the foregoing provisions of this Section will
terminate with respect to any obligation of Purchaser to refrain from using or disclosing or to return to Seller any Confidential
Information of Seller that relates to any of the Purchased Assets.

 

    	 	13	 

    	 	 	 

    

 

(b)Seller's
Confidential Information. All copies of financial information, marketing and sales information, pricing, marketing plans,
business plans, financial and business projections, customer lists, methodologies, inventions, software, know-how, product designs,
product specifications and drawings, and other confidential and/or proprietary information of the Seller related to the Business
or any of the Purchased Assets, including but not limited to the Documentation and the Intellectual Property Rights (collectively,
"Seller's Confidential Information") will, be held by Seller in strict confidence and, at all times following
the Closing, will not be used or disclosed by Seller to any third party and, upon Purchaser's request, will be promptly destroyed
by the Seller or delivered to Purchaser; except that the Seller may use internally copies of Business Records that it is
entitled to retain under Section 2.02 hereof solely to prepare and file tax returns and prepare Seller's financial statements.
It is agreed that Sellers' Confidential Information will not include information that is now, or later becomes, part of
the general public knowledge or literature in the art, other than as a result of a breach of this Agreement by Seller.

 

Section
5.03Regulatory and Other Authorizations; Consents.

 

(a)                    
Efforts. Each of Seller and Purchaser will use its respective best efforts to obtain all authorizations, consents, orders
and approvals of all federal, state and local regulatory bodies, courts and officials that may be or become necessary for the
execution and delivery of, and the performance of its obligations pursuant to, this Agreement or any other agreements required
to be entered into by such party pursuant to this Agreement and will cooperate fully with the other party in promptly seeking
to obtain all such authorizations, consents, orders and approvals. The parties hereto will not take any action that will have
the effect of delaying, impairing or impeding the receipt of any required approvals.

 

(b)                    
Communication. Seller on the one hand, and Purchaser on the other hand, will promptly inform the other of any material
communication between such party and any federal, state, local or foreign government or governmental authority or court regarding
any of the transactions contemplated by this Agreement and the Ancillary Agreements. If either Seller, Purchaser or any affiliate
thereof receives a request for additional information or for documents or any material from any such government or governmental
authority with respect to the transactions contemplated hereby, then such party will endeavor in good faith to make or cause to
be made, as soon as reasonably practicable and after consultation with the other party, an appropriate response in compliance
with such request. Further, no written materials will be submitted by either Seller or Purchaser to any federal, state, or local
governmental agency, nor will any oral communications be initiated with such governmental entities by a party, without prior disclosure
to and coordination with the other party and its counsel.

 

    	 	14	 

    	 	 	 

    

Section
5.04Further Actions. From and after the Closing, each of the parties hereto will execute and deliver such documents
and other papers and take such further actions as may be reasonably required to carry out the provisions of this Agreement or
any other agreements required to be entered into by such party pursuant to this Agreement and give effect to the transactions
contemplated by this Agreement and such other agreements.

 

Section
5.05Furnishing of Outstanding Business Proposals. Prior to or concurrently with the Closing, Seller will furnish to
Purchaser with copies of all business proposals (including names and status of discussions with prospective customers and strategic
partners) that are pending or outstanding with respect to the Business.

 

ARTICLE
VI

 

POST-CLOSING
COVENANTS OF SELLER

 

Section
6.01Maintenance of Existence. For the period of up to twelve (12) months from the Closing Date, Seller shall continue
to exist. Seller shall not voluntarily liquidate, dissolve or wind-up its corporate affairs, nor enter into any agreement to take
such action. In the event that action is taken to require the Seller involuntarily to liquidate, dissolve or wind-up its corporate
affairs, Seller shall immediately notify Purchaser in writing and shall use commercially reasonable efforts to resist such involuntary
action.

 

Section
6.02No Transfer. Seller agrees that it shall not sell, pledge, hypothecate, assign or otherwise transfer, directly
or indirectly, legally or beneficially, this Agreement or any benefit hereunder.

 

Section
6.03Distributions. For the period of twelve (12) months from the Closing Date, Seller shall not pay any dividends or
other distributions to any shareholder.

 

Section
6.04Bulk Sales. Seller shall pay or otherwise satisfy in the ordinary course of business all of its liabilities and
obligations. Buyer and Seller hereby waive compliance with the bulk transfer provisions ("Bulk Sales Laws") in
connection with the transactions contemplated by this Agreement.

 

Section
6.05Customer and Other Business Relationships. After Closing, the Seller will cooperate with the Purchaser in its efforts
to maintain Purchaser's customer relationships pursuant to the Assigned Contracts. Seller will satisfy the Excluded Liabilities
in a manner which is not detrimental to any of such relationships. The Seller will refer to the Purchaser all inquiries relating
to the Purchased Assets. Neither the Seller nor any of its officers, employees, agents, or shareholders, shall take any action
which would tend to diminish the value of the Transferred Assets after Closing or that would interfere with the business of the
Purchaser to be engaged in after the Closing Date, including, without limitation, disparaging the name or business of the Purchaser.

 

    	 	15	 

    	 	 	 

    

 

ARTICLE
VII

DISPUTE
RESOLUTION

Section
7.01Submission Of Claims To Arbitration. Any and all controversies or claims arising out of or relating to this Agreement,
or the breach thereof shall be settled by to binding arbitration held in Washington, D.C. administered by the Judicial Arbitration
and Mediation Service ("JAMS") and shall be conducted (except to the extent otherwise specifically
provided for in this Agreement) under the JAMS' then-effective commercial arbitration rules, and judgment on the award rendered
by the arbitrator may be entered in any court having jurisdiction thereof; provided, however, that a controversy or claim otherwise
subject to arbitration hereunder may initially be heard by any court of competent jurisdiction to the extent, and only to the
extent, that initial submission of the matter to a court is necessary for a party to seek emergency injunctive relief, and provided,
further, however, that the matter initially submitted to a court shall be remanded by the court to arbitration pursuant to this
Section 10 as soon as the matter as to which such emergency injunctive relief was sought has been heard by the court.

 

Section
7.02Fees and Costs. The prevailing party in any arbitration brought under ARTICLE VII shall be entitled to recover,
as an element of the costs of the arbitration and not as damages, its reasonable attorneys' fees, experts' fees and other costs
and expenses incurred in such arbitration to be fixed by the arbitrator (including without limitation, costs, expenses and fees
on any appeal and costs, expenses and fees in any initial proceedings before any court).

 

ARTICLE
VIII

GENERAL
PROVISIONS

Section
8.01Expenses. All costs, expenses or fees, including, without limitation, fees and disbursements of counsel, financial
advisors, accountants, brokers, finders or investment bankers, incurred in connection with this Agreement and the transactions
contemplated hereby will be paid by the party incurring such costs and expenses, whether or not the Closing will have occurred.

 

Section
8.02Notices. All notices, requests, claims, demands and other communications hereunder will be in writing and will
be given or made (and will be deemed to have been duly given or made upon receipt) by delivery in person, by courier service,
by cable, by telecopy, by telegram, by telex or by registered or certified mail (postage prepaid, return receipt requested) to
the parties at the following addresses (or at such other address for a party as will be specified by like notice):

 

(a)                     
if to Seller:

 

 

(b)                     
if to Purchaser:

    	 	16	 

    	 	 	 

    

 

JOSEPH
HERNANDEZ

135
East 57th Street, 24th Floor

New
York, NY 10022

 

Section
8.03Public Announcements. Except as may otherwise be required by law, Seller will not make any public announcements
in respect of this Agreement or the transactions contemplated herein or otherwise communicate with any news media without prior
notification to Purchaser, and, to the maximum extent practicable, the parties will cooperate as to the timing and contents of
any such announcement.

 

Section
8.04Headings. The headings contained in this Agreement are for reference purposes only and will not affect in any way
the meaning or interpretation of this Agreement.

 

Section
8.05Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule of law or public policy, all other conditions and provisions of this Agreement will nevertheless remain in full force
and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced,
the parties hereto will 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 greatest extent possible.

 

Section
8.06No Joint Venture. Nothing contained in this Agreement shall be deemed or construed as creating a joint venture
or partnership between the parties hereto. No party is by virtue of this Agreement authorized as an agent, employee or legal representative
of any other party. No party shall have the power to control the activities and operations of any other and their status is, and
at all times shall continue to be, that of independent contractors with respect to each other. No party shall have any power or
authority to bind or commit any other party. No party shall hold itself out as having any authority or relationship in contravention
of this Section 8.06.

 

Section
8.07Entire Agreement. This Agreement and the Ancillary Agreements constitute the entire agreement of the parties hereto
with respect to the subject matter hereof and supersede all prior agreements and undertakings with respect to the subject matter
hereof, both written and oral, provided, however, that paragraph 4 of that certain Letter of Intent between Seller and
Purchaser dated August 2, 2002 shall survive the signing of this Agreement.

 

Section
8.08Assignment. This Agreement will not be assigned by Purchaser or Seller without the prior written consent of the
non-assigning party; provided, however, that Purchaser may assign all or a portion of its rights and obligations hereunder
to one or more wholly-owned subsidiaries of Purchaser; and provided further, that any party may assign its rights and obligations
hereunder to a person that acquires control of such party by merger, consolidation or a sale of all or substantially all of such
party's assets or by acquisition of voting stock of such party representing more than fifty percent (50%) of the total voting
power of all outstanding securities of such party, provided such person agrees in writing to be bound by all of its assignor's
obligations under this Agreement.

    	 	17	 

    	 	 	 

    

 

Section
8.09No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their pern1itted
assigns and nothing herein, express or implied, is intended to or will confer upon any other person or entity any legal or equitable
right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section
8.10Amendment; Waiver. This Agreement may not be amended or modified except by an instrument in writing signed by Seller
and Purchaser. Waiver of any term or condition of this Agreement will only be effective if in writing and will not be construed
as a waiver of any subsequent breach or waiver of the same term or condition, or a waiver of any other term or condition of this
Agreement.

 

Section
8.11Joint Work Product. This Agreement is a joint work product of the parties, and there is no presumption as to any
party's role in the drafting of this Agreement.

 

Section
8.12Governing Law; Venue. This Agreement will be governed by, and construed in accordance with, the internal laws of
the State of New York applicable to contracts executed and performed entirely therein, without regard to the principles of choice
of law or conflicts or law of any jurisdiction.

 

Section
8.13Counsel. Seller represents that it has had the opportunity to be represented by independent counsel and that Purchaser
has advised Seller to seek representation by independent counsel in negotiating the terms of and entering into this Agreement
(including all exhibits and schedules) and the transactions contemplated hereunder. Seller further represents that it has thoroughly
assessed the risk of foregoing representation by counsel versus the benefits of retaining counsel, and, after due consideration
of its own capabilities and capacities, has knowingly and voluntarily decided to forego representation by counsel in entering
into this Agreement and the transactions contemplated hereunder. Seller further knowingly and voluntarily agrees that no provision
of this Agreement should be construed against the Purchaser simply by virtue of Seller's voluntary, considered decision to forego
representation by counsel in connection with this Agreement.

 

Section
8.14Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed will be deemed to be an original but all of which taken together will constitute
one and the same agreement.

 

Section
8.15Restriction on Disclosure of Agreement Terms. Neither Purchaser, on the one hand, nor Seller, on the other hand,
shall publicly disclose or am10unce the price being paid by Purchaser for the Purchased Assets hereunder or the detailed terms
and conditions of this Agreement (other than to such party's employees, directors or advisors), without the other party's prior
consent; provided , however, that notwithstanding the foregoing, a party may make such disclosures regarding this
Agreement as it determines with the advice of its legal counsel, are required under applicable laws and regulations or orders,
decrees, inquiries or subpoenas of any

    	 	18	 

    	 	 	 

    

 

court
or governmental body, and in that case such party will give the other party or parties hereto prior notice of its intention to
make such disclosure pursuant to this proviso.

 

[The
remainder of this page has been intentionally left blank]

    	 	19	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first written above by tl1eir respective
officers thereunto duly authorized.

 

Intercytex,
Ltd.

 

 

By:
/s/ Paul Kemp

Name:
Paul Kemp

Title:
CEO

 

 

Ember
Therapeutics, Inc.

 

 

 

By:
/s/ Joseph Hernandez

Name:
Joseph Hernandez

Title:
Executive Chairman

 

 

 

 

[Signature
Page to Asset Purchase Agreement]

    	 	20	 

    	 	 	 

    

 

Exhibit
A-1

 

Intercytex
Ltd is wholly owned by Regenerative Solutions Ltd

 

The
full shareholder list of Regenerative Solutions is

 

Mark
Caldwell

Oaklands

Pickmere
Lane

WA16
0JE

 

Paul
D Kemp

5
Vale Road

Romiley

Sk6
3LE

    	 	21	 

    	 	 	 

    

 

Exhibit
A-2 – Board minutes of Seller

 

Company
Number: 03724051

INTERCYTEX
LIMITED

(the
Company)

 

MINUTES
of a meeting of the board of directors of the Company held at on  2016 at am/pm.

 

	PRESENT:

         
	 

        Paul
        Kemp

        Mark
        Caldwell

	IN
                                         ATTENDANCE:

         
	

		1.	Chairperson

Paul
Kemp was appointed chairman of the meeting and chaired the meeting throughout.

		2.	Notice
                                         and quorum

			The
                                         chairperson reported that due notice of the meeting had been given and that a quorum
                                         was present. Accordingly, the chairperson declared the meeting open.

		3.	Declaration
                                         of interests

The
directors declared they had no interests in the proposed transaction to be considered at the meeting in accordance with the requirements
of section 177 of the Companies Act 2006 and the Company’s articles of association.

		4.	Business
                                         of the meeting

The
Chairman reported that the meeting had been convened to deal with:

		4.1.	the
                                         proposed sale by the Company of its business and assets to Ember Therapeutics Limited
                                         (the Buyer) (the Sale); and

		4.2.	certain
                                         documents relating to the Sale.

		5.	Sale
                                         Documents

There
were produced to the meeting drafts of the following documents (the Sale Documents):

		5.1.	the
                                         proposed asset purchase agreement between the Company (1) and the Buyer (2) together
                                         with the exhibits thereto (the Agreement);

		5.2.	the
                                         patent assignment between the Company (1) and the Buyer (2) in the form set out in the
                                         Agreement;

		5.3.	the
                                         trademark assignment between the Company (1) and the Buyer (2) in the form set out in
                                         the Agreement; and

		5.4.	the
                                         bill of sale in the form set out in the Agreement.

    	 	22	 

    	 	 	 

    

		6.	Resolutions

After
careful consideration of the Sale Documents including consideration of the matters referred to in section 172(1) of the Companies
Act 2006, IT WAS RESOLVED that:

		6.1.	the
                                         Sale would benefit the sole member of the Company;

		6.2.	the
                                         Sale be approved;

		6.3.	the
                                         terms of the Sale Documents be approved;

		6.4.	each
                                         and any director be authorised and, in the case of the Sale Documents requiring execution
                                         as a deed, any two directors or any director in the presence of a witness who attests
                                         his signature, to execute the Sale Documents for and on behalf of the Company in the
                                         form produced to the meeting (subject to such amendments, modifications, variations and
                                         alterations as those executing the same on behalf of the Company think fit), and to deliver
                                         the Sale Documents to the Seller; and

		6.5.	each
                                         director of the Company be authorised to do all such acts and things and agree and execute
                                         for and on behalf of the Company all such other documents, deeds, certificates or notices
                                         as he considers necessary or desirable in connection with the Sale.

		7.	Close

There
was no further business and the chairperson declared the meeting closed.

 

/s/
Authorized Signatory

Chairman

    	 	23	 

    	 	 	 

    

 

Exhibit
D – Assigned Contracts

 

 

Contract
with European Collection of Authenticated Cell Cultures (cell storage facilities)

 

Contract
with Reddie & Grose (patent agents)

    	 	24	 

    	 	 	 

    

 

REDDIE
& GROSE LLP

 

TERMS
OF BUSINESS

 

You
have instructed Reddie & Grose LLP to act as your Patent and/or Trade Mark Attorneys. As such we shall provide you with confidential
professional advice on intellectual property and related matters.

 

We
shall carry out all work for you under these terms of business. We may also provide a letter setting out any further terms agreed
between us, in which case that letter will take priority over these terms.

 

When
"we'', "our" or "the LLP" are used in these terms of business they mean Reddie &

Grose
LLP, which is an English limited liability partnership.

 

1.                                     
OUR OBLIGATIONS

 

1.1         
Our partners and other qualified staff are regulated by the Intellectual Property

Regulation
Board (IPREG).

 

1.2                
It is the LLP's responsibility to carry out professional work with all reasonable skill and care.

 

1.3                
Your relationship is solely with the LLP and the LLP has sole legal liability for the work done for you and for any act or omission
in the course of that work. No partner, consultant or employee of the LLP shall have any personal legal liability for that work,
whether in contract, tort or negligence. In particular, the fact that an individual partner, consultant or employee signs in his
or her own name any letter or other document in the course of carrying out that work does not mean that he or she is assuming
any personal legal liability for that letter or document.

 

2.                                     
OUR LIABILITY

 

2.1         
If we are in breach of our obligations to you and are liable to compensate you, you agree that our liability and that of our partners,
consultants and employees is limited in the following respects:

 

2.1.1      
It is the LLP that is liable and not any partner, consultant or employee of the LLP. You agree that you will not make any claim
against any partner, consultant or employee of the LLP except for fraud.

 

2.1.2      
You and we have agreed that each of our partners, consultants and employees will have the right to enforce this provision pursuant
to the Contracts (Rights of Third Parties) Act 1999. We reserve any right we may have to vary these Terms of Business without
our having to seek the consent of such persons.

 

2.1.3      
Our maximum liability for any mistake (except for fraud) is £15 million including contractual and statutory interest (unless
a different amount is agreed in writing).

 

2.1.4      
This overall limit applies whether the mistake affects just one piece of work we do for you or several, so long as it is the same
or a similar mistake.

 

    	 	25	 

    	 	 	 

    

 

2.1.5      
For the purposes of the overall limit, more than one mistake on a matter or transaction is considered as one mistake.

 

2.1.6      
This overall limit applies to any liability for indirect or consequential Joss or loss of anticipated profit or other benefit

 

2.1.7      
We are not liable to the extent that our mistake results from something you do or fall to do (such as giving us the wrong information,
or not giving us information at the time we ask for it).

 

2.1.8      
If others are also responsible for your loss, our liability is limited to our fair share of the proportion which is found to be
fairly and reasonably due to our fault, whether or not you are able to recover the rest from the others.

 

2.1.9      
These limits apply to the extent that they are permitted by law and do not apply to any mistake which causes death or personal
injury or to any fraud.

 

2.1.10   
We are not liable to the extent that you fail to notify us of any claim, or to commence proceedings, within a period of 2 months
of becoming aware of the mistake.

 

2.1.11   
lf any part of this section of these terms of business which seeks to limit liability is found by a court to be void or ineffective
on the grounds that it is unreasonable or does not accord with any professional obligation, the remaining provisions shall continue
to be effective.

 

3.                                     
INSTRUCTIONS

 

3.1         
Unless otherwise agreed, we shall assume that any person within your organisation may instruct us on your behalf (unless it seems
to us that they clearly do not have the appropriate authority).

 

3.2         
We shall assume, unless otherwise instructed in writing, that the legal entity (person, firm, company and so on) providing us
with the initial instructions in relation to a matter is our client. Our liability shall be solely to that client unless we agree
otherwise in writing. lf you wish us to render invoices to and accept payment from another entity (for example, another company
in the same group), we shall be pleased to do this, but responsibility for ensuring that payment is made remains with you. This
applies even if you are acting as agent for your own client and regardless of any arrangements that you have made with your own
client.

 

3.3         
Timing and form of instructions

 

We
rely on our clients to give us timely, complete and accurate information and instructions. We do not accept responsibility for
non-receipt or late receipt of communications. We prefer, where possible, to have oral instructions confirmed in writing in order
to avoid any possible misunderstandings. If you cannot avoid giving us oral rather than written instructions, we shall normally
confirm in writing the instructions we have received, as we understand them.

 

Patent
and Trade Mark Offices often impose time limits and failure to meet these limits can be fatal to the rights concerned. Whilst
it is our responsibility to keep you informed of any relevant time limits, we cannot accept any responsibility if you fail to
provide us with instructions that are clear, complete and early enough to allow us to act within such official time limits. We
shall endeavour to inform you of time limits to be met and of actions or instructions that are required, but we do not undertake
to send further reminders, incur costs on your behalf, or take any other action in the absence of instructions to do so. In this
situation, your rights may be lost irrevocably.

 

    	 	26	 

    	 	 	 

    

 

If
we receive late instructions we may not be able to implement them in time to maintain your rights, in which case your rights may
be lost irrevocably. In the event of late instructions or late payments to us, urgency charges may be incurred which we
shall pass on to you.

 

3.4Electronic
Communications

 

E-mail
has become an established form of communication and, unless you request us not to do so, you agree that we may communicate with
you and others in connection with your work by e-mail. Please notify us in writing if you do not consent to the use of e-mail.

 

All
e-mail communication is potentially vulnerable to interception by third parties. We cannot accept responsibility for any corruption
of information we communicate to you, or its disclosure to other parties, as a result of the interception of e-mail communications.

 

We
shall be responsible for carrying out regular virus checks and maintaining firewalls in our internal systems; however, we advise
you also to carry out your own virus checks on any communications (whether in the form of computer disk, e-mail, Internet or otherwise).
To the extent that we have fulfilled our obligation above, we do not accept responsibility (including in negligence) for any viruses
that may enter your system or data by these or any other means. Furthermore, while we observe reasonable precautions, we do not
guarantee the security of our IT systems.

 

3.5Updating
information

 

Jt
is important that you inform us promptly of any change in relation to: (a) your name, address, telephone/fax numbers and e-mail
address; and (b) any change of ownership of your patent or other rights with which we are concerned. Many such changes have to
be officially registered and rights may be lost if such changes are not registered in due time. We do not accept responsibility
for any loss of rights as a consequence of your failure to inform us of such changes.

 

4.                                     
AUTHORITY

 

For
such period as we are instructed to carry out work on your behalf, you give us express authority to complete and sign in your
name such forms or other documents as are necessary or desirable to carry out your instructions. You agree to indemnify us in
respect of all costs, claims, documents and expenses that may result from the exercise of that authority.

 

5.                                     
INSTRUCTION OF THIRD PARTIES TO ACT ON YOUR BEHALF

 

5.1         
General

 

During
our work for you we may need to instruct third parties (such as foreign lawyers, patent attorneys or representatives) to act on
your behalf. Such third parties are not part of Reddie & Grose LLP. We shall not be liable for any default or negligence by
such third parties.

    	 	27	 

    	 	 	 

    

 

You
may inform us which third parties you wish us to instruct to act on your behalf. If you do not inform us which third parties to
instruct, we shall endeavour to select third parties we regard as being of good quality.

 

5.2Renewals

 

Granted
patents and registered designs and trademarks, and in some countries pending applications, need to be maintained by the payment
of regular (usually annual) renewal fees (also called maintenance fees or annuities). Important intellectual property rights
can be lost if these fees are not paid, and if there is no reliable system in place for paying them. You may choose to pay such
fees yourself or you may select any commercial renewal organisation to do so for you.

 

Where
appropriate, we will transfer information about your rights to a selected renewal organisation. Unless you instruct us to the
contrary, the selected renewal organisation will be CPA Global. For some renewal organisations we may render a charge for the
transfer of information. For CPA Global we will not render a charge for the transfer of information; we will receive a payment
from CPA on renewal.

 

6.                                     
PROFESSIONAL FEES

 

6.1         
Our charges

 

Our
charges are principally based on the amount of our professional time spent on a matter, although other factors may also be taken
into account. Such factors may include the size and complexity of the matter and the degree of urgency involved. Fixed charges
may apply in relation to specific tasks (such as the actual filing of a patent application at a patent office).

 

Our
hourly rates are primarily based on the seniority and experience of the professional staff involved. These rates are reviewed
periodically. Our charges are calculated at the rates which are current when the work is carried out.

 

6.2Payment
of expenses

 

You
will be responsible for any expense we incur on your behalf, including, for example, Patent Office fees, Counsel's fees, Court
fees, the costs of any experts or other agents (including any translators or foreign attorneys or representatives), photocopying
costs, courier charges, travel and meeting expenses, telephone and fax charges.

 

You
should appreciate that third parties' charges and official fees are outside our control since they may be changed without notice
and (in the case of foreign matters) vary with exchange rate fluctuations.

 

6.3Payment
on account

 

We
may require payment on account, particularly in respect of large items such as charges and expenses to be incurred in foreign
filings and actions. Where we make such a request, we do not usually carry out any instructed work until the requested payment
has cleared into our bank account, so time should be allowed for this in advance of any deadline by which work has to be completed.

    	 	28	 

    	 	 	 

    

 

6.4             
Estimates

 

If
asked to do so, we shall try to give estimates of future charges in good faith, based on our knowledge at the time. However, as
charges may be affected by matters beyond our control and the amount of work 'involved often cannot be forecast accurately, such
estimates will not be binding. Not all classes of work are suited to advance quotation.

 

If
during the course of carrying out the work it becomes apparent to us that our actual charges are likely significantly to exceed
our estimate, we shall try to obtain your permission before exceeding our estimate.

 

6.5             
Value Added Tax

 

VAT
is payable on our fees and expenses at the applicable rate.

 

6.6             
Late Payment

 

We
expect our invoices to be settled in full within the period indicated on our invoices. We reserve the right to charge interest
on any amount which remains outstanding after this period has elapsed.

 

If
you do not make a payment on account when requested or if an invoice remains unpaid beyond the normal payment period referred
to above, we reserve the right to suspend all work on your behalf. This is without prejudice to our right to invoice for work
undertaken before such suspension or to take legal action for the payment of our costs. You will be responsible for the consequences
of the suspension of work, which may include the irrevocable loss of, or failure to obtain, rights.

 

7.                                     
FILES

 

7.1         
Ownership of files

 

Our
files remain our property at all times. If you wish to transfer your work to other professional advisors, we shall copy such of
the files relating to your work as you request {at your expense) and release the copy file(s) when all our charges have been paid.

 

7.2         
Copyright

 

We
own the copyright ln any work we create and this copyright will not be transferred to you although you have our licence to use
our work for the purposes for which it was created. We have the right to be identified as the author of the work and to object
to any misuse of it.

 

7.3         
Destruction of files

 

It
is our normal practice to retain our correspondence files, draft documents and other papers for a minimum of six years after a
file is closed. After that time, we reserve the right to destroy such papers. Unless you tell us otherwise, we shall assume that
you are content with this arrangement.

 

    	 	29	 

    	 	 	 

    

 

8.                                     
CONFIDENTIAL INFORMATION

 

While
acting for you, we are likely to receive information which relates to you as our client. We shall keep such information confidential,
except where disclosure is required by law or regulation, or in other exceptional circumstances.

 

9.                                     
DATA PROTECTION

 

Reddie
& Grose LLP has notified under the Data Protection Act 1998 and will comply with all relevant data protection legislation.
By instructing us, you are consenting to our use of relevant personal data in the course of our professional services, including
any transfers of such data outside the European Economic Area, and sending you information which we think might be of interest.

 

10.                              
SEARCHES

 

Any
searches you request may be carried out by our partners or staff or by government Patent Offices or by independent specialist
searching firms. We are not liable for the accuracy of any search which has been carried out by a third party. Due to the limitations
of, and occasional errors in, classifications, indices, computer databases and official records, no search can be guaranteed comprehensive
or accurate. We shall endeavour to point out any particular limitations of searches made when reporting their results.

 

11.                              
INDEMNITY FOR THREAT OF INFRINGEMENT PROCEEDINGS

 

In
the event that you instruct us to send any warning concerning an intellectual property right on your behalf to a third party,
you indemnify us against any costs or other liability arising from our being sued for making an unjustified threat of infringement
proceedings.

 

12.                              
CONFLICTS OF INTEREST

 

We
cannot act simultaneously for two clients whose interests are in the same or very close technical fields, unless (exceptionally)
both clients consent to such an arrangement, nor can we act for two clients who have a direct conflict of interest. When considering
taking on a new client, we try to identify conflicts of interest that may preclude us from acting. It is helpful if potential
new clients identify to us any firms or companies for whom they believe we will be unable to act without a conflict of interest
arising.

 

Sometimes,
conflicts arise later because, for example, our clients acquire new companies or diversify into new areas of business. In such
circumstances, we reserve the right to decline to act further, at least in relation to the area of conflict, for one of the clients
in question, generally the client with the shorter relationship with us. Because of obligations of confidentiality it is often
not possible for us to identify the other client or the subject matter involved when we advise a client that we can no longer
act for them.

    	 	30	 

    	 	 	 

    

 

13.                              
CLIENT CARE AND COMPLAINTS

 

We
value our good relationships with our clients. However, difficulties and misunderstandings do occasionally arise. If you have
any problems, you should feel free to discuss your concerns with the member of our professional staff dealing with your work.
If, after such discussions, you remain unhappy, please ask that person to refer you to the senior partner appointed to handle
client's complaints.

 

If
we cannot resolve the matter to your satisfacf1on, for complaints of poor service you should contact the Legal Ombudsman which
will consider your complaint and seek to resolve the issue, whilst for complaints of professional misconduct relating to alleged
breach of one or more of the rules set out in the Code of Conduct for individual attorneys and firms of attorneys regulated by
!PREG you should address your complaint to the Intellectual Property Regulaf1on Board (IPREG).

 

14.                              
TERMINATION OF RELATIONSHIP

 

You
may terminate our relationship at any time by writing to us. If there is a good reason, we may terminate the relationship ourselves
by giving you reasonable notice. ln either case, if the relationship is terminated we will require you to pay our charges and
expenses up to and including the date of such termination.

 

15.                              
GOVERNING LAW AND JURISDICTION

 

English
law shall apply to the construction and interpretation of our relationship and the English courts shall have exclusive jurisdiction
to resolve any disputes arising in relation to it.

 

These
terms will apply until varied or replaced with alternative terms agreed with you in writing.

 

We
shall deem your continued Instructions as acceptance of these terms of business.

    	 	31	 

    	 	 	 

    

 

Exhibit
F – Bill of Sale

 

BILL
OF SALE

 

BILL
OF SALE, made, executed and delivered on March 15, 2016, Intercytex, Ltd., a company incorporated in England and Wales (the "Seller"),
acting on behalf of itself and all of its subsidiary and affiliated companies, and Ember Therapeutics, Inc., a Delaware corporation
(the "Purchaser").

 

WITNESSETH

 

WHEREAS,
the Seller and the Purchaser are parties to that certain Asset Purchase Agreement dated March 14, 2016 by and between Purchaser
and Seller (the "Agreement"), providing for, among other things, the transfer and sale to the Purchaser of the Purchased
Assets, and on the terms and conditions provided in the Agreement.

 

WHEREAS,
the Purchaser and the Seller now desire to carry out the intent and purpose of the Agreement by the Seller's execution and delivery
to the Purchaser of this instrument evidencing the sale, conveyance, assignment, transfer and delivery to the Purchaser of the
Purchased Assets, subject to the Assumed Liabilities and subject to the terms and conditions of the Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Seller does hereby, effective from and after the date hereof, sell, convey, assign, transfer
and deliver unto the Purchaser and its successors and assigns, forever, the entire right, title and interest in, to and under
the Purchased Assets, subject only to the Assumed Liabilities and subject to the terms and conditions of the Agreement and free
and clear of Liens.

 

TO
HAVE AND TO HOLD the Purchased Assets unto the Purchaser, its successors and assigns, FOREVER.

 

This
Bill of Sale shall be construed and enforced in accordance with applicable federal law and the laws (other than the conflict of
law rules) of the State of New York.

 

In
the event that any provision of this Bill of Sale is construed to conflict with a provision of the Agreement, the provision of
the Agreement shall be deemed to be controlling.

 

This
instrument shall be binding upon and shall inure to the benefit of the respective successors and assigns of the Seller and the
Purchaser.

 

[The
rest of this page intentionally left blank]

 

    	 	32	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, this Bill of Sale has been duly executed and delivered by a duly authorized representative of the Seller on the
date first above written.

 

 

 

Intercytex,
Ltd.

 

 

By:
/s/ Paul Kemp

Name:
Paul Kemp

Title:

    	 	33	 

    	 	 	 

    

 

Exhibit
G – Consulting Agreement

 

CONSULTING
AGREEMENT

 

THIS
CONSULTING AGREEMENT (the "Agreement") is made and entered into this day of March 8, 2016, (the "Effective Date")
by and between Ember Therapeutics, Inc., a Delaware corporation duly organized under law and having an usual place of business
at 135 East 57'h Street, 24th Floor, New York, NY 10022 (hereinafter referred to as the "Company") and Dr. Paul Kemp
(hereinafter referred to as the "Consultant") residing at ______________.

 

WHEREAS,
the Company wishes to engage the Consultant to provide the services described herein and Consultant agrees to provide the services
for the compensation and otherwise in accordance with the terms and conditions contained in this Agreement,

 

NOW
THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, accepted and agreed to, the Company and the Consultant, intending to be legally bound, agree to the terms
set forth below.

 

1.                     
TERM. Commencing as of the Effective Date, and continuing for a period of one (1) year (the "Term"), unless earlier
terminated pursuant to Article 4 hereof; the Consultant agrees that he/she will serve as a consultant to the Company. This Agreement
may be renewed or extended for any period as may be agreed by the parties.

 

2.                     
DUTIES AND SERVICES.

 

(a)                     
Consultant's duties and responsibilities shall be to provide medical advice, trial design, operational and strategic advice and
support to the company and its CEO in the company's clinical trial design and execution, fund raising, development effo1ts, including
financial and strategic planning, vendor selection and management. In addition, the consultant shall assist in investor meetings,
document preparation, including business plans, corporate presentation, S-1 document, financial model, Pre-IND meetings, FDA meetings
and other related material and work as requested by the Company, the Executive management personnel or Board of Directors. The
Consultant shall report directly to the Chairman (collectively, the "Duties" or "Services").

 

(b)                     
The Consultant represents and warrants to the Company that he/she is under no contractual or other restrictions or obligations
which are inconsistent with the execution of this Agreement, or which will interfere with the performance of his/her Duties. Consultant
represents and warrants that the execution and performance of this Agreement will not violate any policies or procedures of any
other person or entity for which he/she performs Services concurrently with those performed herein.

 

    	 	34	 

    	 	 	 

    

 

(c)                      
In performing the Services, Consultant shall comply, to the best of his/her knowledge, with all business conduct, regulatory and
health and safety guidelines established by the Company for any governmental authority with respect to the Company's business.

 

3.                     
CONSULTING FEE.

 

(a)                      
Subject to the provisions hereof, the Company shall pay Consultant a hourly consulting fee of $200 per hour, paid monthly (the
"Consulting Fee"). The Consultant shall submit a brief summary report to the Company of her activities for the month
just ended during the Term of this Agreement for approval by the Company. The Consultant acknowledges that this is the only form
of compensation provide for his/her services.

 

(b)                     
Consultant shall be entitled to prompt reimbursement for all pre-approved expenses incurred in the performance of his/her Duties,
upon submission and approval of written statements and receipts in accordance with the then regular procedures of the Company.

 

(c)                     
The Consultant agrees that all Services will be rendered by him/her as an independent contractor and that this Agreement does
not create an employer-employee relationship between the Consultant and the Company. The Consultant shall have no right to receive
any employee benefits including, but not limited to, health and accident insurance, life insurance, sick leave and/or vacation.
Consultant agrees to pay all taxes including, self-employment taxes due in respect of the Consulting Fee and to indemnify the
Company in the event the Company is required to pay any such taxes on behalf of the Consultant.

 

4.                     
EARLY TERMINATION OF THE TERM.

 

(a)                      
If the Consultant voluntarily ceases performing his/her Duties, becomes physically or mentally unable to perform his/her Duties,
or is terminated for cause, then, in each instance, the Consulting Fee shall cease and terminate as of such date. Any termination
"For Cause" shall be made in good faith.

 

(b)                     
This Agreement may be terminated without cause by either party upon not less than fifteen (15) days prior written notice by either
party to the other.

 

(c)                     
Upon termination under Sections 4(a) or 4(b), neither party shall have any further obligations under this Agreement, except for
the obligations which by their terms survive this termination as noted in Section 16 hereof. Upon termination and, in any case,
upon the Company's request, the Consultant shall return immediately to the Company all Confidential Information, as hereinafter
defined, and copies thereof.

    	 	35	 

    	 	 	 

    

 

5.                    
RESTRICTED ACTIVITIES. During the Term and for a period of five (5) year thereafter, Consultant will not, directly or indirectly:

 

(i)solicit
or request any employee of or consultant to the Company to leave the employ of or cease consulting for the Company;

 

(ii)                  
solicit or request any employee of or consultant to the Company to join the employ of, or begin consulting for, any individual
or entity that researches, develops, markets or sells products that compete with those of the Company;

 

(iii)                 
solicit or request any individual or entity that researches, develops, markets or sells products that compete with those of the
Company, to employ or retain as a consultant any employee or consultant of the Company; or

 

(iv)                   
induce or attempt to induce any supplier or vendor of the Company to terminate or breach any written or oral agreement or understanding
with the Company.

 

6.                     
PROPRIETARY RIGHTS.

 

(a)                     
Definitions. For the purposes of this Article 6, the terms set forth below shall have the following meanings:

 

(i)                                              
Concept and Ideas. Those concepts and ideas disclosed by the Company to Consultant or which are first developed by Consultant
during the course of the performance of Services hereunder and which relate to the Company' present, past or prospective business
activities, services, and products, all of which shall remain the sole and exclusive property of the Company. The Consultant shall
have no publication rights and all of the same shall belong exclusively to the Company.

 

(ii)                                              
Confidential Information. For the purposes of this Agreement, Confidential Information shall mean and collectively include: all
information relating to the business, plans and/or technology of the Company including, but not limited to technical information
including inventions, methods, plans, processes, specifications, characteristics, assays, raw data, scientific preclinical or
clinical data, records, databases, formulations, clinical protocols, equipment design, know-how, experience, and trade secrets;
developmental, marketing, sales, customer, supplier, consulting relationship information, operating, performance, and cost information;
computer programming techniques whether in tangible or intangible form, and all record bearing media containing or disclosing
the foregoing information and techniques including, written business plans, patents and patent applications, grant applications,
notes, and memoranda, whether in writing or presented, stored or maintained in or by electronic, magnetic, or other means.

 

    	 	36	 

    	 	 	 

    

 

Notwithstanding
the foregoing, the term "Confidential Information" shall not include any information which: (a) can be demonstrated
to have been in the public domain or was publicly known or available prior to the date of the disclosure to Consultant; (b) can
be demonstrated in writing to have been rightfully in the possession of Consultant prior to the disclosure of such information
to Consultant by the Company; (c) becomes part of the public domain or publicly known or available by publication or otherwise,
not due to any unauthorized act or omission on the part of Consultant; or (d) is supplied to Consultant by a third party without
binder of secrecy, so long as that such third party has no obligation to the Company or any of its affiliated companies to maintain
such information in confidence.

 

(b)                     
Non-Disclosure to Third Parties. Except as required by Consultant's Duties, Consultant shall not, at any time now or in the future,
directly or indirectly, use, publish, disseminate or otherwise disclose any Confidential Information, Concepts, or Ideas to any
third party without the prior written consent of the Company which consent may be denied in each instance and all of the same,
together with publication rights, shall belong exclusively to the Company.

 

(c)                      
Documents, etc. All documents, diskettes, tapes, procedural manuals, guides, specifications, plans, drawings, designs and similar
materials, lists of present, past or prospective customers, customer proposals, invitations to submit proposals, price lists and
data relating to the pricing of the Company' products and services, records, notebooks and all other materials containing Confidential
Information or information about Concepts or Ideas (including all copies and reproductions thereof), that come into Consultant's
possession or control by reason of Consultant's performance of the relationship, whether prepared by Consultant or others: (a)
are the property of the Company, (b) will not be used by Consultant in any way other than in connection with the performance of
his/her Duties, (c) will not be provided or shown to any third party by Consultant, (d) will not be removed from the Company's
or Consultant's premises (except as Consultant's Duties require), and (e) at the termination (for whatever reason), of Consultant's
relationship with the Company, will be left with, or forthwith returned by Consultant to the Company.

 

(d)                   
Patents, etc. The Consultant agrees that the Company is and shall remain the exclusive owner of the Confidential Information
and Concepts and Ideas. Any interest in patents, patent applications, inventions, technological innovations, trade names, trademarks,
service marks, copyrights, copyrightable works, developments, discoveries, designs, processes, formulas, know-how, data and analysis,
whether registrable or not ("Developments"), which Consultant, as a result of rendering Services to the Company under
this Agreement, may conceive or develop, shall: (i) forthwith be brought to the attention of the Company by Consultant and (ii)
belong exclusively to the Company. No license or conveyance of any such rights to the Consultant is granted or implied under this
Agreement.

 

    	 	37	 

    	 	 	 

    

 

(e)                     
Assignment. The Consultant hereby assigns and, to the extent any such assignment cannot be made at present, hereby agrees to assign
to the Company, without further compensation, all of his/her right, title and interest in and to all Concepts, Ideas, and Developments.
The Consultant will execute all documents and perform all lawful acts which the Company considers necessary or advisable to secure
its rights hereunder and to carry out the intent of this Agreement.

 

7.                    
EQUITABLE RELIEF. Consultant agrees that any breach of Articles 5 and 6 above by him/her would cause irreparable damage to
the Company and that, in the event of such breach, the Company shall have, in addition to any and all remedies of law, the right
to an injunction, specific performance or other equitable relief to prevent the violation or threatened violation of Consultant's
obligations hereunder.

 

8.                     
WAIYER. Any waiver by the Company of a breach of any provision of this Agreement shall not operate or be construed as a waiver
of any subsequent breach of the same or any other provision hereof. All waivers by the Company shall be in writing.

 

9.                        
SEVERABILITY; REFORMATION. In case any one or more of the provisions or parts of a provision contained in this Agreement shall,
for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision or part of a provision of this Agreement; and this Agreement shall, to the fullest extent
lawful, be reformed and construed as if such invalid or illegal or unenforceable provision, or part of a provision, had never
been contained herein, and such provision or part reformed so that it would be valid, legal and enforceable to the maximum extent
possible. Without limiting the foregoing, if any provision (or part of provision) contained in this Agreement shall for any reason
be held to be excessively broad as to duration, activity or subject, it shall be construed by limiting and reducing it, so as
to be enforceable to the fullest extent compatible with then existing applicable law.

 

10.                 
ASSIGNMENT. The Company shall have the right to assign its rights and obligations under this Agreement to a party which assumes
the Company' obligations hereunder. Consultant shall not have the right to assign his/her rights or obligations under this Agreement
without the prior written consent of the Company. This Agreement shall be binding upon and inure to the benefit of the Consultant's
heirs and legal representatives in the event of his/her death or disability.

 

11.                
HEADINGS. Headings and subheadings are for convenience only and shall not be deemed to be a part of this Agreement.

 

12.                
AMENDMENTS. This Agreement may be amended or modified, in whole or in part, only by an instrument in writing signed by all
parties hereto.

 

    	 	38	 

    	 	 	 

    

 

13.                
NOTICES. Any notices or other communications required hereunder shall be in writing and shall be deemed given when delivered
in person or when mailed, by certified or registered first class mail, postage prepaid, return receipt requested, addressed to
the parties at their addresses specified in the preamble to this Agreement or to such other addresses of which a party shall have
notified the others in accordance with the provisions of this Section 13.

 

14.                
COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall constitute ai1original and all
of which shall be deemed a single agreement.

 

15.    
GOVERNING LAW. This Agreement shall be construed in accordance with a!ld governed for all purposes by the laws of the state
of New York applicable to contracts executed and wholly performed within such jurisdiction. Any dispute arising hereunder shall
be referred to and heard in only a court located in New York.

 

16.    
SURVIVAL. The provisions of Sections 5 to 9 ai1d 15 to 16 of this Agreement shall survive the expiration of the Term or the
termination of this Agreement. This Agreement supersedes all prior agreements, written or oral, between the Company and tl1e Consultant
relating to the subject matter of tl1is Agreement.

 

EXECUTED,
under seal, effective as of the Effective Date.

 

	Ember
                                         Therapeutics, Inc.

         

         

         

        By:
        /s/ Joe Hernandez

        Joe
        Hernandez

        Executive
        Chairman

        Hereunto
        Duly Authorized
	CONSULTANT

         

         

         

        /s/
        Dr. Paul Kemp

        Dr.
        Paul Kemp

 

    	 	39	 

    	 	 	 

    

 

Exhibit
H – Patent Assignment

    	 	40	 

    	 	 	 

    

 

 

	DATE	2016

 

 

	(1)	INTERCYTEX
                                         LIMITED

         

		and
	(2)	EMBER
                                         THERAPEUTICS INC

         

 

 

	ASSIGNMENT
    OF PATENTS

 

 

	

	86
                                         Deansgate

        Manchester

        M3
        2ER

         

	www.slaterheelis.co.uk

        Tel:
        0161 969 3131

        Fax:
        0161 973 1018

         

	Ref:
                                         JR

         

 

 

    	 	41	 

    	 	 	 

    

Contents

Clause

	1   Interpretation	1
	2   Assignment	2
	3   VAT	3
	4   Further
    assurance	3
	5   Waiver	3
	6   Entire
    agreement	4
	7   Variation	4
	8   Severance	4
	9   Counterparts	4
	10   Third
    party rights	5
	11   Notices	5
	12   Governing
    law	5
	13   Jurisdiction	5

Schedule

	Schedule   Patents	7

    	 	42	 

    	 	 	 

    

THIS
AGREEMENT is made on the day of 2016

PARTIES

		(1)	INTERCYTEX
                                         LIMITED incorporated and registered in England and Wales with company number 3724051
                                         whose registered office is at 78 Chorley New Road, Bolton, BL1 4BY (“Assignor”);
                                         and

		(2)	EMBER
                                         THERAPEUTICS INC, a Delaware corporation, whose registered office is at 135 East
                                         57th Street, 24th Floor, New York, New York 10022 (“Assignee”).

BACKGROUND

		(A)	The
                                         Assignor is the proprietor of or applicant for the Patents (as defined below).

		(B)	By
                                         the Main Agreement (as defined below) the Assignor has agreed to assign the Patents to
                                         the Assignee on the terms set out in this assignment.

AGREED
TERMS

1Interpretation

The
following definitions and rules of interpretation apply in this agreement.

		1.1	Definitions:

"Business
Day": a day other than a Saturday, Sunday or public holiday in England when banks in London are open for business.

"Main
Agreement": an asset purchase agreement dated 15 March 2016 between the Assignor and the Assignee.

"Patents":
the patents and patent applications short particulars of which are set out in Schedule.

"VAT":
value added tax chargeable under the Value Added Tax Act 1994.

		1.2	Clause,
                                         Schedule and paragraph headings shall not affect the interpretation of this agreement.
                                         

		1.3	The
                                         Schedules form part of this agreement and shall have effect as if set out in full in
                                         the body of this agreement. Any reference to this agreement includes the Schedules. 

    	 	43	 

    	 	 	 

    

 

		1.4	References
                                         to clauses and Schedules are to the clauses and Schedules of this agreement

		1.5	Unless
                                         the context otherwise requires, words in the singular shall include the plural and in
                                         the plural shall include the singular.

		1.6	Unless
                                         the context otherwise requires, a reference to one gender shall include a reference to
                                         the other genders.

		1.7	A
                                         reference to a statute or statutory provision is a reference to it as amended, extended
                                         or re-enacted from time to time.

		1.8	A
                                         reference to a statute or statutory provision shall include all subordinate legislation
                                         made from time to time under that statute or statutory provision.

		1.9	A
                                         reference to writing or written includes fax but not e-mail.

		1.10	Any
                                         words following the terms including, include, in particular, for example or any similar
                                         expression shall be construed as illustrative and shall not limit the sense of the words,
                                         description, definition, phrase or term preceding those terms.

		1.11	A
                                         person includes a natural person, corporate or unincorporated body (whether or not having
                                         separate legal personality).

		2.	Assignment

		2.1	Pursuant
                                         to and for the consideration set out in the Main Agreement, the Assignor hereby assigns
                                         to the Assignee absolutely all its right, title and interest in and to the Patents, and
                                         in and to all and any inventions disclosed in the Patents, including: 

		2.1.1	in
                                         respect of any and each application in the Patents:

2.1.1.1the
right to claim priority from and to prosecute obtain grant of patent; and

2.1.1.2the
right to file divisional applications based thereon and to prosecute and obtain grant of patent on each and any such divisional
application;

		2.1.2	in
                                         respect of each and any invention disclosed in the Patents, the right to file an application,
                                         claim priority from such application, and prosecute and obtain grant of patent or similar
                                         protection in or in respect of any country or territory in the world;

    	 	44	 

    	 	 	 

    

 

		2.1.3	the
                                         right to extend to or register in, or in respect of, any country or territory in the
                                         world each and any of the Patents, and each and any of the applications comprised in
                                         the Patents or filed as aforesaid, and to extend to or register in or in respect of any
                                         country or territory in the world any patent or like protection granted on any of such
                                         applications;

		2.1.4	the
                                         absolute entitlement to any patents granted pursuant to any of the applications comprised
                                         in the Patents or filed as aforesaid; and

		2.1.5	the
                                         right to bring, make, oppose, defend, appeal proceedings, claims or actions and obtain
                                         relief (and to retain any damages recovered) in respect of any infringement, or any other
                                         cause of action arising from ownership, of any of the Patents or any patents granted
                                         on any of the applications comprised in the Patents or filed as aforesaid, whether occurring
                                         before, on or after the date of this assignment.

		3	VAT

		3.1	All
                                         payments made by the Assignee under this agreement are exclusive of VAT. If any such
                                         payment constitutes the whole or any part of the consideration for a taxable or deemed
                                         taxable supply by the Assignor, the Assignee shall increase that payment by an amount
                                         equal to the VAT which is chargeable in respect of the taxable or deemed taxable supply
                                         provided that the Assignor shall have delivered a valid VAT invoice in respect of such
                                         VAT to the Assignee.

		3.2	If
                                         the VAT invoice is delivered after the relevant payment has been made, the Assignee shall
                                         pay the VAT due within five Business Days of the Assignor delivering a valid VAT invoice.

		3.3	If
                                         the Assignee fails to comply with its obligation under this clause 3, it shall additionally
                                         pay all interest and penalties which thereby arise to the Assignor.

		4	Further
                                         assurance

At
the Assignee’s expense, each party shall, and shall use all reasonable endeavours to procure that any necessary third party
shall, execute and deliver such documents and perform such acts as may reasonably be required for the purpose of giving full effect
to this agreement.

		5	Waiver

No
failure or delay by a party to exercise any right or remedy provided under this agreement or by law shall constitute a waiver
of that or any other right or remedy, nor shall it prevent or restrict the further exercise of that or any other right or remedy.
No single or partial exercise of such right or remedy shall prevent or restrict the further exercise of that or any other right
or remedy.

    	 	45	 

    	 	 	 

    

		6	Entire
                                         agreement

		6.1	This
                                         agreement constitutes the entire agreement between the parties and supersedes and extinguishes
                                         all previous agreements, promises, assurances, warranties, representations and understandings
                                         between them, whether written or oral, relating to its subject matter.

		6.2	Each
                                         party agrees that it shall have no remedies in respect of any statement, representation,
                                         assurance or warranty (whether made innocently or negligently) that is not set out in
                                         this agreement. Each party agrees that it shall have no claim for innocent or negligent
                                         misrepresentation or negligent misstatement based on any statement in this agreement.

		7	Variation

No
variation of this agreement shall be effective unless it is in writing and signed by the parties (or their authorised representatives).

		8	Severance

		8.1	If
                                         any provision or part-provision of this agreement is or becomes invalid, illegal or unenforceable,
                                         it shall be deemed modified to the minimum extent necessary to make it valid, legal and
                                         enforceable. If such modification is not possible, the relevant provision or part-provision
                                         shall be deemed deleted. Any modification to or deletion of a provision or part-provision
                                         under this clause shall not affect the validity and enforceability of the rest of this
                                         agreement.

		8.2	If
                                         any provision or part-provision of this agreement is invalid, illegal or unenforceable,
                                         the parties shall negotiate in good faith to amend such provision so that, as amended,
                                         it is legal, valid and enforceable, and, to the greatest extent possible, achieves the
                                         intended commercial result of the original provision.

		9	Counterparts

 

This
agreement may be executed in any number of counterparts, each of which when executed and delivered shall constitute a duplicate
original, but all the counterparts shall together constitute the one agreement.

    	 	46	 

    	 	 	 

    

 

		10	Third
                                         party rights

No
one other than a party to this agreement shall have any right to enforce any of its terms.

		11	Notices

		11.1	All
                                         notices, requests, claims, demands and other communications hereunder will be in writing
                                         and will be given or made (and will be deemed to have been duly given or made upon receipt)
                                         by delivery in person, by courier service, by cable, by telecopy, by telegram, by telex
                                         or by registered or certified mail (postage prepaid, return receipt requested) to the
                                         parties at the following addresses (or at such other address for a party as will be specified
                                         by like notice):

if
to Seller:

Paul
Kemp and Mark Caldwell

78
Chorley New Road, Bolton, BL1 4BY

if
to Purchaser:

Joseph
Hernandez

135
East 57th Street, 24th Floor, New York, NY 10022

		11.2	This
                                         clause does not apply to the service of any proceedings or other documents in any legal
                                         action or, where applicable, any arbitration or other method of dispute resolution. 

		12	Governing
                                         law

This
agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual
disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.

		13	Jurisdiction

Each
party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim
arising out of or in connection with this agreement or its subject matter or formation (including non-contractual disputes or
claims).

 

This
agreement has been entered into on the date stated at the beginning of it.

    	 	47	 

    	 	 	 

    

Schedule                      
Patents

 

	Country	Application
    no
	Australia	2006251004
	Canada	2609507
	EPO	06743989.3
	United
    Kingdom	2426452
	Japan	2008-512917
	USA	13/791,
    177

    	 	48	 

    	 	 	 

    

	Signed
                                         by PAUL KEMP

        for
        and on behalf of INTERCYTEX LIMITED
	/s/
                                         Paul Kemp

        Director

	Signed
                                         by JOSEPH HERNANDEZ

        for
        and on behalf of EMBER THERAPEUTICS INC
	/s/
                                         Joseph Hernandez

        Director

 

    	 	49	 

    	 	 	 

    

 

Exhibit
I – Trademark Assignment

 

	DATE	2016

  

 

	(1)	INTERCYTEX
                                         LIMITED

         

		and
	(2)	EMBER
                                         THERAPEUTICS INC

         

 

  

	ASSIGNMENT
    OF TRADE MARKS

 

	

          86
          Deansgate

        Manchester

        M3
        2ER

         

	www.slaterheelis.co.uk

        Tel:
        0161 969 3131

        Fax:
        0161 973 1018

         

	Ref:
                                         JR

         

 

 

    	 	50	 

    	 	 	 

    

Contents

Clause

	1   Interpretation	1
	2   Assignment	2
	3   VAT	2
	4   Further
    assurance	3
	5   Waiver	3
	6   Entire
    agreement	3
	7   Variation	3
	8   Severance	3
	9   Counterparts	4
	10   Third
    party rights	4
	11   Notices	4
	12   Governing
    law	5
	13   Jurisdiction	5

Schedule

	Schedule   Trade
    marks	6
	Unregistered
    trade marks	6

    	 	51	 

    	 	 	 

    

THIS
AGREEMENT is made on the day of 2016

PARTIES

		(1)	INTERCYTEX
                                         LIMITED incorporated and registered in England and Wales with company number 3724051
                                         whose registered office is at 78 Chorley New Road, Bolton, BL1 4BY (“Assignor”);
                                         and

		(2)	EMBER
                                         THERAPEUTICS INC, a Delaware corporation, of 135 East 57th Street, 24th Floor, New
                                         York, New York 10022 (“Assignee”).

BACKGROUND

		(A)	The
                                         Assignor is the proprietor of the Trade Marks (as defined below).

		(B)	By
                                         the Main Agreement (as defined below) the Assignor has agreed to assign the Trade Marks
                                         to the Assignee on the terms set out in this agreement.

AGREED
TERMS

		1	Interpretation

The
following definitions and rules of interpretation apply in this agreement.

		1.1	Definitions:

"Business
Day": a day other than a Saturday, Sunday or public holiday in England when banks in London are open for business.

"Main
Agreement": an asset purchase agreement dated 15 March 2016 between the Assignor and the Assignee.

"Trade
Marks": the unregistered trade marks short particulars of which are set out in the Schedule.

"VAT":
value added tax or any equivalent tax chargeable in the UK or elsewhere.

		1.2	Clause,
                                         Schedule and paragraph headings shall not affect the interpretation of this agreement.

		1.3	A
                                         person includes a natural person, corporate or unincorporated body (whether or not having
                                         separate legal personality).

		1.4	The
                                         Schedules form part of this agreement and shall have effect as if set out in full in
                                         the body of this agreement. Any reference to this agreement includes the Schedules.

                                         

    	 	52	 

    	 	 	 

    

		1.5	References
                                         to clauses and Schedules are to the clauses and Schedules of this agreement.

		1.6	Unless
                                         the context otherwise requires, words in the singular shall include the plural and in
                                         the plural shall include the singular.

		1.7	Unless
                                         the context otherwise requires, a reference to one gender shall include a reference to
                                         the other genders.

		1.8	A
                                         reference to a statute or statutory provision is a reference to it as amended, extended
                                         or re-enacted from time to time.

		1.9	A
                                         reference to a statute or statutory provision shall include all subordinate legislation
                                         made from time to time under that statute or statutory provision.

		1.10	Writing
                                         or written includes fax but not email.

		1.11	Any
                                         words following the terms including, include, in particular, for example or any similar
                                         expression shall be construed as illustrative and shall not limit the sense of the words,
                                         description, definition, phrase or term preceding those terms.

		2	Assignment

		2.1	Pursuant
                                         to and for the consideration set out in the Main Agreement the Assignor hereby assigns
                                         to the Assignee all its right, title and interest in and to the Trade Marks.

		3	VAT

		3.1	All
                                         payments made by the Assignee under this agreement are exclusive of VAT. If any such
                                         payment constitutes the whole or any part of the consideration for a taxable or deemed
                                         taxable supply by the Assignor, the Assignee shall increase that payment by an amount
                                         equal to the VAT which is chargeable in respect of the taxable or deemed taxable supply,
                                         provided that the Assignor shall have delivered a valid VAT invoice in respect of such
                                         VAT to the Assignee.

		3.2	If
                                         the VAT invoice is delivered after the relevant payment has been made, the Assignee shall
                                         pay the VAT due within five Business Days of the Assignor delivering a valid VAT invoice.

		3.3	If
                                         the Assignee fails to comply with its obligation under this clause 3, it shall additionally
                                         pay all interest and penalties which thereby arise to the Assignor.

    	 	53	 

    	 	 	 

    

		4	Further
                                         assurance

At
the Assignee's expense, each party shall, and shall use all reasonable endeavours to procure that any necessary third party shall
execute and deliver such documents and perform such acts as may reasonably be required for the purpose of giving full effect to
this agreement.

		5	Waiver

No
failure or delay by a party to exercise any right or remedy provided under this agreement or by law shall constitute a waiver
of that or any other right or remedy, nor shall it prevent or restrict the further exercise of that or any other right or remedy.
No single or partial exercise of such right or remedy shall preclude or restrict the further exercise of that or any other right
or remedy.

		6	Entire
                                         agreement

		6.1	This
                                         agreement constitutes the entire agreement between the parties and supersedes and extinguishes
                                         all previous agreements, promises, assurances, warranties, representations and understandings
                                         between them, whether written or oral, relating to its subject matter.

		6.2	Each
                                         party agrees that it shall have no remedies in respect of any statement, representation,
                                         assurance or warranty (whether made innocently or negligently) that is not set out in
                                         this agreement. Each party agrees that it shall have no claim for innocent or negligent
                                         misrepresentation based on any statement in this agreement.

		7	Variation

No
variation of this agreement shall be effective unless it is in writing and signed by the parties (or their authorised representatives).

		8	Severance

		8.1	If
                                         any provision or part-provision of this agreement is or becomes invalid, illegal or unenforceable,
                                         it shall be deemed modified to the minimum extent necessary to make it valid, legal and
                                         enforceable. If such modification is not possible, the relevant provision or part-provision
                                         shall be deemed deleted. Any modification to or deletion of a provision or part-provision
                                         under this clause shall not affect the validity and enforceability of the rest of this
                                         agreement.

		8.2	If
                                         any provision or part-provision of this agreement is invalid, illegal or unenforceable,
                                         the parties shall negotiate in good faith to amend such provision so that, as amended,
                                         it is legal, valid and enforceable, and, to the greatest extent possible, achieves the
                                         intended commercial result of the original provision.

    	 	54	 

    	 	 	 

    

 

		9	Counterparts

 

This
agreement may be executed in any number of counterparts, each of which when executed and delivered shall constitute a duplicate
original, but all the counterparts shall together constitute the one agreement.

		10	Third
                                         party rights

No
one other than a party to this agreement shall have any right to enforce any of its terms.

		11	Notices

		11.1	All
                                         notices, requests, claims, demands and other communications hereunder will be in writing
                                         and will be given or made (and will be deemed to have been duly given or made upon receipt)
                                         by delivery in person, by courier service, by cable, by telecopy, by telegram, by telex
                                         or by registered or certified mail (postage prepaid, return receipt requested) to the
                                         parties at the following addresses (or at such other address for a party as will be specified
                                         by like notice):

		11.1.1	if
                                         to Seller:

Paul
Kemp and Mark Caldwell

78
Chorley New Road, Bolton, BL1 4BY

		11.1.2	if
                                         to Purchaser:

Joseph
Hernandez

135
East 57th Street, 24th Floor, New York, NY 10022

		11.2	This
                                         clause does not apply to the service of any proceedings or other documents in any legal
                                         action or, where applicable, any arbitration or other method of dispute resolution. 

		12	Governing
                                         law

This
agreement and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its
subject matter or formation shall be governed by and construed in accordance with the law of England and Wales.

		13	Jurisdiction

Each
party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim
(including non-contractual disputes or claims) arising out of or in connection with this agreement or its subject matter or formation.

 

This
agreement has been entered into on the date stated at the beginning of it.

    	 	55	 

    	 	 	 

    

		Schedule	Trade
                                         marks

Unregistered
trade marks

 

	Mark	Goods
    or services in respect of which the mark has been used
	Vavelta
    	 Cell
    therapy for the treatment of skin defects
	ICX-RHY	Cell
    therapy for use in clinical trials for the treatment of skin defects

 

	 Signed
                                         by PAUL KEMP

        for
        and on behalf of INTERCYTEX LIMITED

         
	/s/
                                         Paul Kemp

        Director

	Signed
                                         by JOSEPH HERNANDEZ

        for
        and on behalf of EMBER THERAPEUTICS INC
	/s/
                                         Joseph Hernandez

        Director

 

    	 	56	 

    	 	 	 

    

 

Exhibit
K – Seller’s Disclosure Schedule

 

Section
3.03

 

Notification
of the assignment of the patents listed in Exhibit C (“Patents”) will need to be given to the relevant bodies
in the countries where the patents are registered so that the Buyer can be registered as the owner/applicant of the Patents.

 

Section
3.04

 

The
Australian patent (number 2006251004) lapsed due to an administrative error as a renewal payment was accidentally missed. Reddie
and Grose are dealing with the reinstatement of this patent and it is anticipated that it should take no longer than two months.

 

Section
3.07

 

The
Seller previously had a trademark for “Vavelta” registered in the UK and Benelux but this lapsed and the Seller does
not intend to renew this registration.

 

The
Australian patent (number 2006251004) lapsed due to an administrative error as a renewal payment was accidentally missed. Reddie
and Grose are liaising with Australian attorneys for the restoration of this patent. The Seller received confirmation on 14 March
2016 that approval to the restoration has been given by the Australian Patent Office. The request for restoration will now be
advertised for opposition and if none is filed in two months, the patent will be restored.

 

An
EPO patent and a UK patent can not be held for the same inventions. As such the UK patent (number 2426452) will need to be cancelled.

 

Section
3.09

 

The
Seller is party to a contract with The European collection of authenticated cell cultures (ECAAC)
for cell storage but is not in possession of a copy of this contract and so has been unable to provide a copy of it to
the Purchaser.

    	 	57

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