Document:

Rights Agreement

 Exhibit 4.1 
 PHARMERICA CORPORATION 
 and 

MELLON INVESTOR SERVICES LLC, as Rights Agent 
 RIGHTS AGREEMENT 
 Dated as of August 25, 2011 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	 Section 1.
	  	Certain Definitions	  	 	1	  
			
	 Section 2.
	  	Appointment of Rights Agent	  	 	6	  
			
	 Section 3.
	  	Issue of Right Certificates	  	 	6	  
			
	 Section 4.
	  	Form of Right Certificates	  	 	8	  
			
	 Section 5.
	  	Countersignature and Registration	  	 	9	  
			
	 Section 6.
	  	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	  	 	9	  
			
	 Section 7.
	  	Exercise of Rights, Purchase Price; Expiration Date of Rights	  	 	10	  
			
	 Section 8.
	  	Cancellation and Destruction of Right Certificates	  	 	12	  
			
	 Section 9.
	  	Availability of Shares of Preferred Stock	  	 	12	  
			
	 Section 10.
	  	Preferred Stock Record Date	  	 	13	  
			
	 Section 11.
	  	Adjustment of Purchase Price, Number and Kind of Shares and Number of Rights	  	 	14	  
			
	 Section 12.
	  	Certificate of Adjusted Purchase Price or Number of Shares	  	 	21	  
			
	 Section 13.
	  	Consolidation, Merger or Sale or Transfer of Assets or Earning Power	  	 	21	  
			
	 Section 14.
	  	Fractional Rights and Fractional Shares	  	 	25	  
			
	 Section 15.
	  	Rights of Action	  	 	26	  
			
	 Section 16.
	  	Agreement of Right Holders	  	 	27	  
			
	 Section 17.
	  	Right Certificate Holder Not Deemed a Stockholder	  	 	27	  
			
	 Section 18.
	  	Concerning the Rights Agent	  	 	28	  
			
	 Section 19.
	  	Merger or Consolidation or Change of Name of Rights Agent	  	 	28	  
			
	 Section 20.
	  	Duties of Rights Agent	  	 	29	  
			
	 Section 21.
	  	Change of Rights Agent	  	 	31	  
			
	 Section 22.
	  	Issuance of New Right Certificates	  	 	32	  
			
	 Section 23.
	  	Redemption	  	 	32	  

							
	 Section 24.
	  	Exchange	  	 	33	  
			
	 Section 25.
	  	Notice of Certain Events	  	 	34	  
			
	 Section 26.
	  	Notices	  	 	35	  
			
	 Section 27.
	  	Supplements and Amendments	  	 	36	  
			
	 Section 28.
	  	Successors	  	 	36	  
			
	 Section 29.
	  	Benefits of this Agreement	  	 	36	  
			
	 Section 30.
	  	Determinations and Actions by the Board of Directors	  	 	36	  
			
	 Section 31.
	  	Severability	  	 	37	  
			
	 Section 32.
	  	Governing Law	  	 	37	  
			
	 Section 33.
	  	Counterparts	  	 	37	  
			
	 Section 34.
	  	Descriptive Headings	  	 	37	  

 RIGHTS AGREEMENT 

Rights Agreement, dated as of August 25, 2011 (“Agreement”), between PharMerica Corporation, a Delaware corporation (the
“Company”), and Mellon Investor Services LLC, a New Jersey limited liability company, as Rights Agent (the “Rights Agent”). 
 The Board of Directors of the Company has adopted resolutions creating a series of preferred stock designated as “Series A Junior Participating Preferred Stock” and authorized and declared a
dividend of one preferred share purchase right (a “Right”) for each share of Common Stock (as hereinafter defined) outstanding as of the Close of Business (as defined below) on September 6, 2011 (the “Record Date”), each
Right initially representing the right to purchase one one-thousandth (subject to adjustment) of a share of Preferred Stock (as hereinafter defined), upon the terms and subject to the conditions herein set forth, and has further authorized and
directed the issuance of one Right (subject to adjustment as provided herein) with respect to each share of Common Stock that shall become outstanding between the Record Date and the earlier of the Distribution Date and the Expiration Date (as such
terms are hereinafter defined); provided, however, that Rights may be issued with respect to shares of Common Stock that shall become outstanding after the Distribution Date and prior to the Expiration Date in accordance with
Section 22. 
 Accordingly, 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 meaning
indicated: 
 (a) “Acquiring Person” shall mean any Person (as such term is hereinafter defined) who or which shall be
the Beneficial Owner (as such term is hereinafter defined) of 15% or more of the shares of Common Stock then outstanding, but shall not include an Exempt Person (as such term is hereinafter defined); provided, however, that 

(i) if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an “Acquiring
Person” became the Beneficial Owner of a number of shares of Common Stock such that the Person would otherwise qualify as an “Acquiring Person” inadvertently (including, without limitation, because (A) such Person was unaware
that it beneficially owned that number of shares of Common Stock that would otherwise cause such Person to be an “Acquiring Person” or (B) such Person was aware of the extent of its Beneficial Ownership of Common Stock but had no
actual knowledge of the consequences of such Beneficial Ownership under this Agreement) and without any intention of changing or influencing control of the Company, then such Person shall not be deemed to be or to have become an “Acquiring
Person” for any purposes of this Agreement unless and until such Person shall have failed to divest itself, as soon as practicable (as determined, in good faith, by the Board of Directors of the Company), of Beneficial Ownership of a sufficient
number of shares of Common Stock so that such Person would no longer otherwise qualify as an “Acquiring Person”; 

  
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 (ii) if, as of the date hereof or prior to the first public announcement of the adoption
of this Agreement, any Person is or becomes the Beneficial Owner of 15% or more of the shares of Common Stock outstanding, such Person shall not be deemed to be or to become an “Acquiring Person” unless and until such time as such Person
shall, after the first public announcement of the adoption of this Agreement, become the Beneficial Owner of additional shares of Common Stock representing 1% or more of the shares of Common Stock then outstanding (other than pursuant to a dividend
or distribution paid or made by the Company on the outstanding Common Stock or pursuant to a split or subdivision of the outstanding Common Stock), unless, upon becoming the Beneficial Owner of such additional shares of Common Stock, such Person is
not then the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding; 
 (iii) no Person shall become an
“Acquiring Person” solely as a result of any unilateral grant of any security by the Company or through the exercise of any options, warrants, rights or similar interests (including restricted stock) granted by the Company to its
directors, officers and employees; 
 (iv) no Person shall become an “Acquiring Person” as the result of an
acquisition of shares of Common Stock by the Company which, by reducing the number of shares outstanding, increases the proportion of the shares of Common Stock beneficially owned by such Person to 15% or more of the Common Stock then outstanding;
provided, however, that if a Person shall become the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding by reason of such share acquisitions by the Company and shall thereafter become the Beneficial Owner of
any additional shares of Common Stock (other than pursuant to a dividend or distribution paid or made by the Company on the outstanding Common Stock or pursuant to a split or subdivision of the outstanding Common Stock), then such Person shall be
deemed to be an “Acquiring Person” unless upon becoming the Beneficial Owner of such additional shares of Common Stock such Person does not beneficially own 15% or more of the shares of Common Stock then outstanding; and 

(v) no Person shall become an “Acquiring Person” as the result of the acquisition of Beneficial Ownership of shares of Common
Stock from an individual who, on the later of the date hereof or the first public announcement of this Agreement, is the Beneficial Owner of 15% or more of the Common Stock then outstanding if such shares of Common Stock are received by such Person
upon such individual’s death pursuant to such individual’s will or pursuant to a charitable trust created by such individual for estate planning purposes. 
 For all purposes of this Agreement, any calculation of the number of shares of Common Stock outstanding at any particular time, including for purposes of determining the particular percentage of the
outstanding shares of Common Stock of which 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 Securities Exchange Act of 1934, as amended (the
“Exchange Act”), as in effect on the date hereof. 

  
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 (b) “Affiliate” and “Associate” shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the date hereof. 
 (c) A Person shall be deemed the “Beneficial Owner” of, shall be deemed to have “Beneficial Ownership” of and shall be deemed to “beneficially own” any securities:

 (i) which such Person or any of such Person’s Affiliates or Associates is deemed to beneficially own, directly or
indirectly, within the meaning of Rule l3d-3 of the General Rules and Regulations under the Exchange Act as in effect on the date hereof; 
 (ii) which such Person or any of such Person’s Affiliates or Associates has (A) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to
any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange
rights, rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, (w) securities tendered pursuant to a tender 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, (x) securities which such Person has a right to acquire upon the exercise of Rights at any time prior to the
time that any Person becomes an Acquiring Person, (y) securities issuable upon the exercise of Rights from and after the time that any Person becomes an Acquiring Person if such Rights were acquired by such Person or any of such Person’s
Affiliates or Associates prior to the Distribution Date or pursuant to Section 3(a) or Section 22 hereof (“Original Rights”) or pursuant to Section 11(i) or Section 11(n) with respect to an adjustment to Original
Rights, or (z) securities which such Person or any of such Person’s Affiliates or Associates may acquire, does or do acquire or may be deemed to have the right to acquire, pursuant to any merger or other acquisition agreement between the
Company and such Person (or one or more of such Person’s Affiliates or Associates) if such agreement has been approved by the Board of Directors prior to such Person’s becoming an Acquiring Person; or (B) the right to vote pursuant to
any agreement, arrangement or understanding; provided, further, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security by reason of such agreement, arrangement or understanding if the agreement,
arrangement or understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and
regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or 
 (iii) which are beneficially owned, directly or indirectly, by any other Person and with respect to which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement
or understanding (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting (except to the extent contemplated by
the proviso to Section 1(c)(ii)(B)) or disposing of such securities of the Company. 

  
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 provided, however, that no Person who is an officer, director or employee of an Exempt Person
shall be deemed, solely by reason of such Person’s status or authority as such, to be the “Beneficial Owner” of, to have “Beneficial Ownership” of or to “beneficially own” any securities that are “beneficially
owned” (as defined in this Section l(c)), including, without limitation, in a fiduciary capacity, by an Exempt Person or by any other such officer, director or employee of an Exempt Person. 

(d) “Book Entry” shall mean an uncertificated book entry for the Common Stock. 

(e) “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the State of
New York, the State of New Jersey or the city in which the principal office of the Rights Agent is located are authorized or obligated by law or executive order to close. 
 (f) “Certificate of Incorporation” shall mean the Certificate of Incorporation of the Company, as filed with the Secretary of State of the State of Delaware on October 23, 2006, as the same
may be amended and restated from time to time. 
 (g) “Close of Business” on any given date shall mean 5:00 P.M., New
York City time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., New York City time, on the next succeeding Business Day. 

(h) “Common Stock” when used with reference to the Company shall mean the Common Stock, presently par value $0.01 per share of
the Company. “Common Stock” when used with reference to any Person other than the Company shall mean the common stock (or, in the case of any entity other than a corporation, the equivalent equity interest) with the greatest voting power
of such other Person or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person. 
 (i) “Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii) hereof. 
 (j) “Current Value” shall have the meaning set forth in Section 11(a)(iii) hereof. 
 (k) “Distribution Date” shall have the meaning set forth in Section 3 hereof. 
 (l) “Equivalent Preferred Shares” shall have the meaning set forth in Section 11(b) hereof. 
 (m) “Exempt Person” shall mean the Company or any Subsidiary (as such term is hereinafter defined) of the Company, in each case including, without limitation, in its fiduciary capacity, or any
employee benefit plan of the Company or of any 

  
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Subsidiary of the Company, or any entity or trustee holding (or acting in a fiduciary capacity in respect of) Common Stock for or pursuant to the terms of any such plan or for the purpose of
funding any such plan or funding other employee benefits for employees of the Company or of any Subsidiary of the Company. 

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

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

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

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

(r) “NASDAQ” shall mean The Nasdaq Stock Market. 
 (s) “New York Stock Exchange” shall mean the New York Stock Exchange, Inc. 
 (t) “Person” shall mean any individual, firm, corporation, partnership, limited liability company, trust or other entity, and shall include any successor (by merger or otherwise) thereof or
thereto. 
 (u) “Preferred Stock” shall mean the Series A Junior Participating Preferred Stock, par value $0.01 per
share, of the Company having the rights and preferences set forth in the Form of Certificate of Designation attached to this Agreement as Exhibit A. 
 (v) “Principal Party” shall have the meaning set forth in Section 13(b) hereof. 
 (w) “Purchase Price” shall have the meaning set forth in Section 7(b) hereof. 
 (x) “Record Date” shall have the meaning set forth in the recitals hereto. 
 (y) “Redemption Date” shall have the meaning set forth in Section 7 hereof. 
 (z) “Redemption Price” shall have the meaning set forth in Section 23 hereof. 
 (aa) “Right” shall have the meaning set forth in the recitals hereto. 

(bb) “Right Certificate” shall have the meaning set forth in Section 3 hereof. 

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

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

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

(ff) “Stock Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall
include, without limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such, or such earlier date as a majority of the Board of Directors of the
Company shall become aware of the existence of an Acquiring Person. 
 (gg) “Subsidiary” of any Person shall mean any
corporation or other entity of which securities or other ownership interests having ordinary voting power sufficient to elect a majority of the board of directors or other persons performing similar functions are beneficially owned, directly or
indirectly, by such Person, and any corporation or other entity that is otherwise controlled by such Person. 
 (hh)
“Substitution Period” shall have the meaning set forth in Section 11(a)(iii) hereof. 
 (ii) “Summary of
Rights” shall have the meaning set forth in Section 3 hereof. 
 (jj) “Trading Day” shall have the meaning
set forth in Section 11(d)(i) hereof. 
 Section 2. Appointment of Rights Agent. The Company hereby appoints the
Rights Agent to act as agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as it may deem necessary or
desirable. The 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. Issue of Right Certificates. 
 (a) Until the Close of Business
on the earlier of (i) the tenth Business Day after the Stock Acquisition Date or (ii) the tenth Business Day (or such later date as may be determined by action of the Board of Directors of the Company prior to such time as any Person
becomes an Acquiring Person) after the date of the commencement by any Person (other than an Exempt Person) of, or of the first public announcement of the intention of such Person (other than an Exempt Person) to commence, a tender or exchange offer
the consummation of which would result in any Person (other than an Exempt Person) having beneficial ownership or becoming the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding (the earlier of such dates being herein
referred to as the “Distribution Date”, provided, however, that if either of such dates occurs 

  
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after the date of this Agreement and on or prior to the Record Date, then the Distribution Date shall be the Record Date), (x) the Rights will be evidenced (subject to the provisions of
Section 3(b) hereof) by the certificates representing the Common Stock registered in the names of the holders thereof (or by Book Entry shares in respect of such Common Stock) and not by separate Right Certificates, (y) the registered
holders of Common Stock shall also be the registered holders of the Rights issued with respect thereto and (z) the Rights will be transferable by, and only in connection with, the transfer of Common Stock. As soon as practicable after the
Distribution Date, the Company will prepare and execute, the Rights Agent will countersign and the Company will send or cause to be sent (and the Rights Agent will, if requested and provided with all necessary information and documents, send) by
first-class, insured, postage-prepaid mail, to each record holder of Common Stock as of the Close of Business on the Distribution Date (other than any Acquiring Person or any Associate or Affiliate of an Acquiring Person), at the address of such
holder shown on the records of the Company or the transfer agent or registrar for the Common Stock, a Right Certificate, in substantially the form of Exhibit B hereto (a “Right Certificate”), evidencing one Right (subject to adjustment as
provided herein) for each share of Common Stock so held. As of and after the Distribution Date, the Rights will be evidenced solely by such Right Certificates, and the Rights will be transferable only separately from the transfer of Common Stock.
The Company shall promptly notify the Rights Agent in writing upon the occurrence of the Distribution Date and/or the Expiration Date and, if such notification is given orally, the Company shall confirm same in writing on or prior to the Business
Day next following. Until such written notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that neither the Distribution Date nor the Expiration Date has occurred. 

(b) On the Record Date, or as soon as practicable thereafter, the Company will send a copy of a Summary of Rights to Purchase Shares of
Preferred Stock, in substantially the form of Exhibit C hereto (the “Summary of Rights”), by first-class, postage-prepaid mail, to each record holder of Common Stock as of the Close of Business on the Record Date (other than any Acquiring
Person or any Associate or Affiliate of any Acquiring Person), at the address of such holder shown on the records of the Company or the transfer agent or registrar for the Common Stock. With respect to certificates representing Common Stock (or Book
Entry shares of Common Stock) outstanding as of the Record Date, until the Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof (or such Book Entry shares) together with the Summary of
Rights. Until the Distribution Date (or, if earlier, the Expiration Date), the surrender for transfer of any certificate representing Common Stock (or any Book Entry shares of Common Stock) outstanding on the Record Date, with or without a copy of
the Summary of Rights, shall also constitute the transfer of the Rights associated with the Common Stock represented thereby. 

  
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 (c) Rights shall be issued in respect of all shares of Common Stock issued or disposed of
after the Record Date but prior to the earlier of the Distribution Date and the Expiration Date, or in certain circumstances provided in Section 22 hereof, after the Distribution Date but prior to the Expiration Date. Certificates issued for
Common Stock after the Record Date but prior to the earlier of the Distribution Date and the Expiration Date, or in certain circumstances provided in Section 22 hereof, after the Distribution Date but prior to the Expiration Date, shall have
impressed on, printed on, written on or otherwise affixed to them a legend in substantially the following form: 
 This
certificate also evidences and entitles the holder hereof to certain Rights as set forth in a Rights Agreement between PharMerica Corporation (the “Company”) and Mellon Investor Services LLC, as Rights Agent, dated as of August 25,
2011, and as amended from time to time (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of the Company. Under certain circumstances,
as set forth in the Rights Agreement, 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 Rights Agreement without charge
after receipt of a written request therefor. Under certain circumstances, as set forth in the Rights Agreement, Rights owned by or transferred to any Person who is or becomes an Acquiring Person (as defined in the Rights Agreement) and certain
transferees thereof will become null and void and will no longer be transferable. 
 With respect to any Book Entry shares of Common Stock,
such legend shall be included in a notice to the record holder of such shares in accordance with applicable law. With respect to such certificates containing the foregoing legend, or any notice of the foregoing legend delivered to holders of Book
Entry shares, until the Distribution Date the Rights associated with the Common Stock represented by such certificates or Book Entry shares shall be evidenced by such certificates or Book Entry shares alone, and the surrender for transfer of any
such certificate or Book Entry share, except as otherwise provided herein, shall also constitute the transfer of the Rights associated with the Common Stock represented thereby. In the event that the Company purchases or otherwise acquires any
Common Stock after the Record Date but prior to the Distribution Date, any Rights associated with such Common Stock shall be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights associated with the Common
Stock which are no longer outstanding. 
 Notwithstanding this paragraph (c), neither the omission of a legend nor the failure
to deliver the notice of such legend required hereby shall affect the enforceability of any part of this Agreement or the rights of any holder of the Rights. 
 Section 4. Form of Right Certificates. The Right Certificates (and the forms of election to purchase shares and of assignment to be printed on the reverse thereof) shall be substantially in the
form set forth in Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate (but which do not affect the rights, duties, liabilities or
responsibilities of the Rights Agent) and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of
any 

  
 8 

 
stock exchange or interdealer quotation system on which the Rights may from time to time be listed or quoted, or to conform to usage. Subject to the provisions of this Agreement, the Right
Certificates 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 Purchase Price, but the number of such one one-thousandths of a share of Preferred Stock
and the Purchase Price shall be subject to adjustment as provided herein. 
 Section 5. Countersignature and
Registration. 
 (a) The Right Certificates shall be executed on behalf of the Company by the President of the Company,
either manually or by facsimile signature, shall have affixed thereto the Company’s seal or a facsimile thereof and shall be attested by the Secretary of the Company, either manually or by facsimile signature. The Right Certificates shall be
either manually or by facsimile signature countersigned by the Rights Agent and shall not be valid for any purpose unless countersigned. In case any officer of the Company who shall have signed any of the Right Certificates shall cease to be such
officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force
and effect as though the Person who signed such Right Certificates had not ceased to be such officer of the Company; and any Right Certificate may be signed on behalf of the Company by any Person who, at the actual date of the execution of such
Right Certificate, shall be a proper officer of the Company to sign such Right Certificate, although at the date of the execution of this Agreement any such Person was not such an officer. 

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

Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right
Certificates. 
 (a) Subject to the provisions of this Agreement, at any time after the Close of Business on the
Distribution Date and prior to the Close of Business on the Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates representing Rights that have become null and void pursuant to Section 11(a)(ii) hereof or
that have been exchanged pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates, entitling the registered holder thereof to purchase a like number of one
one-thousandths of a share of Preferred Stock as the Right Certificate or Right Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Right Certificate or Right
Certificates shall make such request in writing delivered to the Rights Agent, and shall surrender the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the office or agency of

  
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the Rights Agent designated for such purpose. The Right Certificates are transferable only on the registry books of the Rights Agent. Neither the Rights Agent nor the Company shall be obligated
to take any action whatsoever with respect to the transfer of any such surrendered Right Certificate or Certificates until the registered holder thereof shall have (i) completed and signed the certificate contained in the form of assignment set
forth on the reverse side of each such Right Certificate, (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) thereof and of the Rights evidenced thereby and the Affiliates and Associates
of such Beneficial Owner (or former Beneficial Owner) 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 Right Certificates as required by Section 9(e) hereof. Thereupon the Rights Agent shall countersign and deliver to the Person entitled thereto a Right Certificate or Right 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 shall specify by written
notice. The Rights Agent shall have no duty or obligation under any Section of this Agreement which requires the payment of taxes or charges unless and until it is satisfied that all such taxes and/or charges have been paid. 

(b) Subject to the provisions of this Agreement, at any time after the Distribution Date and prior to the Expiration Date, upon receipt
by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security satisfactory to them, and, at
the Company’s request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will make and
deliver a new Right Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated. 

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

(a) Except as otherwise provided herein, the Rights shall become exercisable on the Distribution Date, and thereafter the registered
holder of any Right Certificate may, subject to Section 11(a)(ii) hereof and except as otherwise provided herein, exercise the Rights evidenced thereby in whole or in part upon surrender of the Right Certificate, with the form of election to
purchase on the reverse side thereof properly completed and duly executed, to the Rights Agent at the office or agency 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 the Rights are exercised, and an amount equal to any tax or charge required to be paid under Section 9(e)
hereof, by certified check, cashier’s check, bank draft or money order payable to the order of the Company, at any time which is both after the Distribution Date and prior to the time (the “Expiration Date”) that is the earliest of
(i) the Close of Business on August 25, 2021 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), (iii) the closing of
any merger or other 

  
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acquisition transaction involving the Company pursuant to an agreement of the type described in Sections 1(c)(ii)(A)(z) and 13(f) at which time the Rights are terminated, (iv) the time at
which such Rights are exchanged as provided in Section 24 hereof, or (v) the final adjournment of the Company’s 2012 annual meeting of stockholders if stockholder approval of this Agreement has not been received prior to such time.
Except for those provisions herein which expressly survive the termination of this Agreement, this Agreement shall terminate at such time as the Rights are no longer exercisable hereunder. 

(b) The Purchase Price shall be initially $45.00 for each one one-thousandth of a share of Preferred Stock purchasable upon the exercise
of a Right. The Purchase Price and the number of one one-thousandths of a share of Preferred Stock or other securities or property to be acquired upon exercise of a Right shall be subject to adjustment from time to time as provided in Sections 11
and 13 hereof and shall be payable in lawful money of the United States of America in accordance with paragraph (c) of this Section 7. 
 (c) Except as otherwise provided herein, upon receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase properly completed and duly executed, accompanied by
payment of the aggregate Purchase Price for the shares of Preferred Stock or other securities to be purchased and an amount equal to any applicable tax or charge required to be paid by the holder of such Right Certificate in accordance with
Section 9 hereof, by certified check, cashier’s check, bank draft or money order payable to the order of the Company, subject to Section 20(j) hereof, the Rights Agent shall thereupon promptly (i) (A) requisition from any
transfer agent of the Preferred Stock, or make available if the Rights Agent is the transfer agent for the Preferred Stock, certificates for the number of shares of Preferred Stock to be purchased, and the Company hereby irrevocably authorizes each
such transfer agent to comply with all such requests, or (B) requisition from the depositary agent appointed by the Company depositary receipts representing interests in such number of one one-thousandths of a share of Preferred Stock as are to
be purchased (in which case certificates for the Preferred Stock represented by such receipts shall be deposited by the transfer agent with the depositary agent), and the Company hereby directs each such depositary agent to comply with such request,
(ii) when necessary to comply with this Rights Agreement, requisition from the Company the amount of cash to be paid in lieu of 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 Right Certificate, registered in such name or names as may be designated by such holder and (iv) when necessary to comply
with this Rights Agreement, after receipt, promptly deliver such cash to or upon the order of the registered holder of such Right Certificate. 
 (d) Except as otherwise provided herein, in case the registered holder of any Right Certificate shall exercise less than all of the Rights evidenced thereby, a new Right Certificate evidencing Rights
equivalent to the exercisable Rights remaining unexercised shall be issued by the Rights Agent to the registered holder of such Right Certificate or to his duly authorized assigns, subject to the provisions of Section 14 hereof. 

(e) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake
any action with respect 

  
 11 

 
to a registered holder of Rights or other securities upon the occurrence of any purported transfer or exercise of Rights pursuant to Section 6 hereof or this Section 7 unless such
registered holder shall have (i) properly completed and duly executed the certificate contained in the form of assignment or form of election to purchase set forth on the reverse side of the Right Certificate surrendered for such transfer or
exercise and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) thereof and of the Rights evidenced thereby and of the Affiliates and Associates of such Beneficial Owner (or former
Beneficial Owner) as the Company or the Rights Agent shall reasonably request. 
 Section 8. Cancellation and Destruction of
Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent for cancellation or in
canceled form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Right 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 Right Certificate purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all canceled
Right Certificates to the Company, or shall, at the written request of the Company, destroy such canceled Right Certificates, and in such case shall deliver a certificate of destruction thereof to the Company. 

Section 9. Availability of Shares of Preferred 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 or any shares of Preferred Stock held in its
treasury, the number of shares of Preferred Stock that will be sufficient to permit the exercise in full of all outstanding Rights in accordance with this Agreement, and will take all such action as may be necessary to ensure that all Preferred
Stock delivered upon exercise of Rights shall, at the time of delivery of the certificates for such Preferred Stock (subject to payment of the Purchase Price), be duly and validly authorized and issued and fully paid and nonassessable shares.

 (b) So long as the shares of Preferred Stock and other securities issuable and deliverable upon the exercise of Rights may be
listed or admitted to trading on any national securities exchange, the Company shall use its best efforts to cause, from and after such time as the Rights become exercisable, all shares or other securities reserved for such issuance to be listed or
admitted to trading on such exchange upon official notice of issuance upon such exercise. 
 (c) From and after such time as the
Rights become exercisable, the Company shall use its best efforts, if then necessary to permit the issuance of shares of Preferred Stock or other securities upon the exercise of Rights, to register and qualify such shares of Preferred Stock or other
securities under the Securities Act and any applicable state securities or “Blue Sky” laws (to the extent exemptions therefrom are not available), cause such registration statement and qualifications to become effective as soon as possible
after such filing and keep such registration and qualifications effective (with a prospectus 

  
 12 

 
at all times meeting the requirements of the Securities Act) until the earlier of the date as of which the Rights are no longer exercisable for such securities and the Expiration Date. The
Company may temporarily suspend, for a period of time not to exceed 90 days, the exercisability of the Rights in order to prepare and file a registration statement under the Securities Act 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 is no longer in effect. The Company shall notify the Rights
Agent whenever it makes a public announcement pursuant to this Section 9(c) and give the Rights Agent a copy of such announcement. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction unless the requisite qualification in such jurisdiction shall have been obtained and until a registration statement under the Securities Act shall have been declared effective, unless an exemption therefrom is available. 

(d) The Company covenants and agrees that it will take all such action as may be necessary to ensure that all shares of Preferred Stock
or other securities delivered upon exercise of Rights shall, at the time of delivery of the certificates therefor (subject to payment of the Purchase Price and compliance with all other applicable provisions of this Agreement), be duly and validly
authorized and issued and fully paid and nonassessable shares. 
 (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 Right Certificates or of any shares of Preferred Stock or other securities upon the exercise of Rights. The Company shall not,
however, be required to pay any tax or charge that may be payable in respect of any transfer or delivery of Right Certificates to a Person other than, or the issuance or delivery of certificates or depositary receipts for the Preferred Stock or
other securities in a name other than that of, the registered holder of the Right Certificate evidencing Rights surrendered for exercise or to issue or deliver any certificates or depositary receipts for Preferred Stock upon the exercise of any
Rights until any such tax or charge shall have been paid (any such tax or charge being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to the Company’s or 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 for Preferred Stock is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the shares of Preferred Stock represented thereby on, and such certificate shall be dated, the date upon
which the Right Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable taxes or charges) was made; provided, however, that if the date of such surrender and payment is a date upon
which the Preferred Stock transfer books of the Company are closed, such Person shall be deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day on which the Preferred Stock
transfer books of the Company are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred Stock for which the Rights shall be exercisable, including,
without limitation, the right to vote or to receive dividends or other distributions, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 

  
 13 

 Section 11. Adjustment of Purchase Price, Number and Kind of Shares and Number of
Rights. The Purchase Price, the number of shares of Preferred Stock or other securities or property purchasable upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this
Section 11. 
 (a) (i) In the event the Company shall at any time after the date of this Agreement (A) declare and pay
a dividend on the Preferred Stock payable in shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C) combine the outstanding Preferred Stock into a smaller number of shares of Preferred Stock 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), the number and kind of shares of capital stock issuable upon exercise of a Right as of the record date for such dividend or the effective date of such subdivision, combination or reclassification shall be proportionately
adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, 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, the holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification. 

(ii) Subject to Section 24 of this Agreement, in the event any Person becomes an Acquiring Person (the first occurrence of such
event being referred to hereinafter as the “Flip-In Event”), then (A) the Purchase Price shall be adjusted to be the Purchase Price in effect immediately prior to the Flip-In Event multiplied by the number of one one-thousandths of a
share of Preferred Stock for which a Right was exercisable immediately prior to such Flip-In Event, whether or not such Right was then exercisable, and (B) each holder of a Right, except as otherwise provided in this Section 11(a)(ii) and
Section 11(a)(iii) hereof, shall thereafter have the right to receive, upon exercise thereof at a price equal to the Purchase Price (as so adjusted), in accordance with the terms of this Agreement and in lieu of shares of Preferred Stock, such
number of shares of Common Stock as shall equal the result obtained by dividing the Purchase Price (as so adjusted) by 50% of the current per share market price of the Common Stock (determined pursuant to Section 11(d) hereof) on the date of
such Flip-In Event; provided, however, that the Purchase Price (as so adjusted) and the number of shares of Common Stock so receivable upon exercise of a Right shall, following the Flip-In Event, be subject to further adjustment as
appropriate in accordance with Section 11(f) hereof. Notwithstanding anything in this Agreement to the contrary, however, from and after the Flip-In Event, any Rights that are beneficially owned by (x) any Acquiring Person (or any
Affiliate or Associate of any Acquiring Person), (y) a transferee of any Acquiring Person (or any such Affiliate or Associate) who becomes a transferee after the Flip-In Event or (z) a transferee of any Acquiring Person (or any such
Affiliate or Associate) who became a transferee prior to or concurrently with the Flip-In Event pursuant to either (I) a transfer from the Acquiring Person to holders of its equity securities or to any Person with whom it has any continuing
agreement, arrangement or understanding regarding the transferred Rights or (II) a transfer 

  
 14 

 
which the Board of Directors of the Company has determined is part of a plan, arrangement or understanding which has the purpose or effect of avoiding the provisions of this paragraph, and
subsequent transferees of such Persons, shall be void without any further action and any holder of such Rights shall thereafter have no rights whatsoever with respect to such Rights under any provision of this Agreement. The Company shall use all
reasonable efforts to ensure that the provisions of this Section 11(a)(ii) are complied with, but shall have no liability to any holder of Right Certificates or other Person as a result of its failure to make any determinations with respect to
an Acquiring Person or its Affiliates, Associates or transferees hereunder. From and after the Flip-In Event, no Right Certificate shall be issued pursuant to Section 3 or Section 6 hereof that represents Rights that are or have become
null and void pursuant to the provisions of this paragraph, and any Right Certificate delivered to the Rights Agent that represents Rights that are or have become void pursuant to the provisions of this paragraph shall be canceled. From and after
the occurrence of an event specified in Section 13(a) hereof, any Rights that theretofore have not been exercised pursuant to this Section 11(a)(ii) shall thereafter be exercisable only in accordance with Section 13 and not pursuant
to this Section 11(a)(ii). The Company shall give the Rights Agent written notice of the identity of any such 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
written notice. 
 (iii) The Company may at its option substitute for a share of Common Stock issuable upon the exercise of
Rights in accordance with the foregoing subparagraph (ii) a number of shares of Preferred Stock or fraction thereof such that the current per share market price of one share of Preferred Stock multiplied by such number or fraction is equal to
the current per share market price of one share of Common Stock. In the event that there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued to permit the exercise in full of the Rights in accordance
with the foregoing subparagraph (ii), the Board of Directors of the Company shall, with respect to such deficiency, to the extent permitted by applicable law and any material agreements then in effect to which the Company is a party,
(A) determine the excess (such excess, the “Spread”) of (1) the value of the shares of Common Stock issuable upon the exercise of a Right in accordance with the foregoing subparagraph (ii) (the “Current Value”)
over (2) the Purchase Price (as adjusted in accordance with the foregoing subparagraph (ii)), and (B) with respect to each Right (other than Rights which have become null and void pursuant to the foregoing subparagraph (ii)), make adequate
provision to substitute for the shares of Common Stock issuable in accordance with the foregoing subparagraph (ii) upon exercise of the Right and payment of the Purchase Price (as adjusted in accordance therewith), (1) cash, (2) a
reduction in such Purchase Price, (3) shares of Preferred Stock or other equity securities of the Company (including, without limitation, shares or fractions of shares of preferred stock which, by virtue of having dividend, voting and
liquidation rights substantially comparable to those of the shares of Common Stock are deemed in good faith by the Board of Directors of the Company to have substantially the same value as the shares of Common Stock (such shares of Preferred Stock
and shares or fractions of shares of preferred stock are hereinafter referred to as “Common Stock Equivalents”)), (4) debt securities of the Company, (5) other assets, or
(6)

  
 15 

 
any combination of the foregoing, having a value which, when added to the value of the shares of Common Stock issued upon exercise of such Right, shall have an aggregate value equal to the
Current Value (less the amount of any reduction in such Purchase Price), where such aggregate value has been determined by the Board of Directors of the Company upon the advice of a nationally recognized investment banking firm selected in good
faith by the Board of Directors of the Company; provided, however, that if the Company shall not make adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the Flip-In Event (the
date of the Flip-In Event being the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, to the extent permitted by applicable law and any material agreements then in effect to which the Company is a party,
upon the surrender for exercise of a Right and without requiring payment of such Purchase Price, shares of Common Stock (to the extent available), and then, if necessary, such number or fractions of shares of Preferred Stock (to the extent
available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If, upon the occurrence of the Flip-In Event, the Board of Directors of the Company shall determine 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, then, if the Board of Directors of the Company so elects, 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 some action need be taken pursuant to the second and/or third sentence of this Section 11(a)(iii), the Company (x) shall
provide, subject to Section 11(a)(ii) hereof and the last sentence of this Section 11(a)(iii) hereof, that such action shall apply uniformly to all outstanding Rights and (y) may suspend the exercisability of the Rights until the
expiration of the Substitution Period in order to seek any authorization of additional shares and/or to decide the appropriate form of distribution to be made pursuant to such second 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 at such time as
the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the per share value of the shares of Common Stock shall be the current per share market price (as determined pursuant to Section 11(d)(i)) on the
Section 11(a)(ii) Trigger Date and the per share or fractional value of any “Common Stock Equivalent” shall be deemed to equal the current per share market price of the Common Stock. The Board of Directors of the Company may, but
shall not be required to, establish procedures to allocate the right to receive shares of Common Stock upon the exercise of the Rights among the holders of Rights pursuant to this Section 11(a)(iii). 

(b) In case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Preferred Stock
entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Stock (or shares having the same rights, privileges and preferences as the Preferred Stock (“Equivalent Preferred
Shares”)) or securities convertible into Preferred Stock or Equivalent Preferred Shares at a price per share of Preferred Stock or Equivalent Preferred Shares (or having a conversion price per share, if a security is convertible into

  
 16 

 
shares of Preferred Stock or Equivalent Preferred Shares) less than the then current per share market price of the Preferred Stock (determined pursuant to Section 11(d) hereof) 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 and Equivalent Preferred Shares outstanding on such record date plus the number of shares of Preferred Stock and Equivalent Preferred Shares which the aggregate offering price of the total number of shares of Preferred Stock and/or
Equivalent Preferred Shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such current market price, and the denominator of which shall be the number of shares of
Preferred Stock and Equivalent Preferred Shares outstanding on such record date plus the number of additional shares of Preferred Stock and/or Equivalent Preferred Shares to be offered for subscription or purchase (or into which the convertible
securities so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the
Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of
Directors of the Company, whose determination shall be described in a written statement filed with the Rights Agent. Shares of Preferred Stock and Equivalent Preferred Shares owned by or held for the account of the Company shall not be deemed
outstanding for the purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed; and in the event that such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to
be the Purchase Price which would then be in effect if such record date had not been fixed. 
 (c) In case the Company shall fix
a record date for the making of a distribution to all holders of the Preferred Stock (including without limitation any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving
corporation) of evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend payable in Preferred Stock) or 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 then current per share market price of the
Preferred Stock (determined pursuant to Section 11(d) hereof) on such record date, less the fair market value (as determined in good faith by the Board of Directors of the Company whose determination shall be described in a written statement
filed with the Rights Agent) of the portion of the assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to one share of Preferred Stock, and the denominator of which shall be such current per
share market price (determined pursuant to Section 11(d) hereof) of the Preferred Stock; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of
the shares of capital stock of the Company to be issued upon exercise of one Right. 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
again be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed. 

  
 17 

 (d) (i) Except as otherwise provided herein, for the purpose of any computation hereunder,
the “current per share market price” of any security (a “Security” for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per share of such Security for the 30
consecutive Trading Days (as such term is hereinafter defined) immediately prior to but not including such date; provided, however, that in the event that the current per share market price of the Security is determined during a period
following the announcement by the issuer of such Security of (A) a dividend or distribution on such Security payable in shares of such Security or securities convertible into such Security, or (B) any subdivision, combination or
reclassification of such Security, and prior to but not including the expiration of 30 Trading Days after but not including the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or
reclassification, then, and in each such case, the current per share market price shall be appropriately adjusted to reflect the current market price per share equivalent of such Security. 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 by the principal consolidated transaction reporting system with respect to securities listed or
admitted to trading on the New York Stock Exchange or NASDAQ or, if the Security is not listed or admitted to trading on the New York Stock Exchange or NASDAQ, as reported in the principal consolidated transaction reporting system with respect to
securities listed on the principal national securities exchange on which the Security is listed or admitted to trading or, if the Security is not listed on a national securities exchange, the last quoted price or, if not so quoted, the average of
the high and low asked prices in the over-the-counter market as reported by any system then in use, or, if not so quoted, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Security
selected in good faith by the Board of Directors of the Company. The term “Trading Day” shall mean a day on which the principal national securities exchange on which the Security is listed or admitted to trading is open for the transaction
of business or, if the Security is not listed or admitted to trading on any national securities exchange, a Business Day. 

(ii) For the purpose of any computation hereunder, if the Preferred Stock is publicly traded, the “current per share market
price” of the Preferred Stock shall be determined in accordance with the method set forth in Section 11(d)(i). If the Preferred Stock is not publicly traded but the Common Stock is publicly traded, the “current per share market
price” of the Preferred Stock shall be conclusively deemed to be the current per share market price of the Common Stock as determined pursuant to Section 11(d)(i) multiplied by the then applicable Adjustment Number (as defined in and
determined in accordance with the Certificate of Designation for the Preferred Stock). If neither the Common Stock nor the Preferred Stock is publicly traded, “current per share market price” shall mean the fair value per share as
determined in good faith by the Board of Directors of the Company, whose determination shall be described in a written statement filed with the Rights Agent. 
 (e) No adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1% in the Purchase Price; provided, however, that any
adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent 

  
 18 

 
adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest one hundred-thousandth of a share of Preferred Stock or one-hundredth of a share of
Common Stock or other share or security as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three years from the date
of the transaction which would require such adjustment but for this Section 11(e) or (ii) the Expiration Date. 
 (f)
If as a result of an adjustment made pursuant to Section 11(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock of the Company other than the Preferred Stock, thereafter the
Purchase Price and the number of such other shares so receivable upon exercise of a Right 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), 11(b), 11(c), 11(e), 11(h), 11(i) and 11(m) hereof, as applicable, 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 Section 11(i), upon each adjustment of
the Purchase Price as a result of the calculations made in Sections 11(b) and 11(c), 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 hundred-thousandth of a share of Preferred Stock) obtained by (i) multiplying (x) the number of one one-thousandths of a share purchasable upon the
exercise of a Right immediately prior to such adjustment by (y) the Purchase Price in effect immediately prior to such adjustment and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment.

 (i) The Company may elect on or after the date of any adjustment of the Purchase Price pursuant to Sections 11(b) or 11(c)
hereof to adjust the number of Rights, in substitution for 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 such adjustment of 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-hundredth) 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. Such record date may be the date on which the Purchase 

  
 19 

 
Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at least 10 days later than the date of the public announcement. If Right Certificates have been
issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company may, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right 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 Right Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after
such adjustment. Right Certificates so to be distributed shall be issued, executed and delivered by the Company, and countersigned and delivered by the Rights Agent, in the manner provided for herein and shall be registered in the names of the
holders of record of Right 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 a Right, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price
and the number of one one-thousandths of a share of Preferred Stock which were expressed in the initial Right Certificates issued hereunder. 
 (k) Before taking any action that would cause an adjustment reducing the Purchase Price below the then par value, if any, of the fraction of Preferred Stock or other shares of capital stock issuable upon
exercise of a Right, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and nonassessable shares of Preferred Stock or other such
shares 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 issuing to the holder of any Right exercised after
such record date the Preferred Stock and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the 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 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 adjustments in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion shall
determine to be advisable in order that any consolidation or subdivision of the Preferred Stock, issuance wholly for cash of any shares of Preferred Stock at less than the current market price, issuance wholly for cash of Preferred Stock or
securities which by their terms are convertible into or exchangeable for Preferred Stock, dividends on Preferred Stock payable in shares of Preferred Stock or issuance of rights, options or warrants referred to hereinabove in Section 11(b),
hereafter made by the Company to holders of its Preferred Stock shall not be taxable to such stockholders. 

  
 20 

 (n) Anything in this Agreement to the contrary notwithstanding, in the event that at any
time after the date of this Agreement and prior to the Distribution Date, the Company shall (i) declare and pay any dividend on the Common Stock payable in Common Stock, or (ii) effect a subdivision, combination or consolidation of the
Common Stock (by reclassification or otherwise than by payment of a dividend payable in Common Stock) into a greater or lesser number of shares of Common Stock, then, in each such case, the number of Rights associated with each share of Common Stock
then outstanding, or issued or delivered thereafter, 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. 
 (o) The Company agrees that, after the earlier of the Distribution Date or the Stock Acquisition Date, it will not, except as permitted by Sections 23, 24 or 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 eliminate the benefits intended to be afforded by the Rights. 

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 or 13 hereof, the Company shall promptly (a) 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) file with the Rights Agent and with each transfer agent for the Common Stock and the
Preferred Stock a copy of such certificate and (c) mail a brief summary thereof to each holder of a Right Certificate in accordance with Section 25 hereof (if so required under Section 25 hereof). 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 such adjustment or any such event unless and
until it shall have received such a certificate. 
 Section 13. Consolidation, Merger or Sale or Transfer of Assets or
Earning Power. 
 (a) In the event, directly or indirectly, at any time after the Flip-In Event (i) the Company shall
consolidate with or shall merge into any other Person, (ii) any Person shall merge with and into the Company and the Company shall be the continuing or surviving corporation of such merger and, in connection with such merger, all or part of the
Common Stock shall be changed into or exchanged for stock or other securities of any other Person (or of the Company) or cash or any other property, or (iii) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall
sell or otherwise 

  
 21 

 
transfer), in one or more transactions, assets or earning power aggregating 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person
(other than the Company or one or more wholly-owned Subsidiaries of the Company), then upon the first occurrence of such event, proper provision shall be made so that: (A) each holder of a Right (other than Rights which have become null and
void pursuant to Section 11(a)(ii) hereof) shall thereafter have the right to receive, upon the exercise thereof at the Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii) hereof), in accordance with the terms of
this Agreement and in lieu of shares of Preferred Stock or Common Stock of the Company, such number of validly authorized and issued, fully paid, non-assessable and freely tradeable shares of Common Stock of the Principal Party (as such term is
hereinafter defined), not subject to any liens, encumbrances, rights of first refusal or other adverse claims, as shall equal the result obtained by dividing the Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii)
hereof) by 50% of the current per share market price of the Common Stock of such Principal Party (determined pursuant to Section 11(d) hereof) on the date of consummation of such consolidation, merger, sale or transfer; provided,
however, that the Purchase Price (as theretofore adjusted in accordance with Section 11(a)(ii) hereof) and the number of shares of Common Stock of such Principal Party so receivable upon exercise of a Right shall be subject to further
adjustment as appropriate in accordance with Section 11(f) hereof to reflect any events occurring in respect of the Common Stock of such Principal Party after the occurrence of such consolidation, merger, sale or transfer; (B) such
Principal Party shall thereafter be liable for, and shall have been deemed to assume, by virtue and operation of such consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (C) the
term “Company” shall thereafter be deemed to refer to such Principal Party; and (D) such Principal Party shall take such steps (including, but not limited to, the reservation of a sufficient number of its shares of Common Stock in
accordance with Section 9 hereof) in connection with such 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 the shares of
its Common Stock thereafter deliverable upon the exercise of the Rights; provided that, upon the subsequent occurrence of any consolidation, merger, sale or transfer of assets or other extraordinary transaction in respect of such Principal Party,
each holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and payment of the Purchase Price as provided in this Section 13(a), such cash, shares, rights, warrants and other property which such holder would have
been entitled to receive had such holder, at the time of such transaction, owned the Common Stock of the Principal Party receivable upon the exercise of a Right pursuant to this Section 13(a), and such Principal Party shall take such steps
(including, but not limited to, reservation of shares of stock) as may be necessary to permit the subsequent exercise of the Rights in accordance with the terms hereof for such cash, shares, rights, warrants and other property. 

(b) “Principal Party” shall mean: 
 (i) in the case of any transaction described in (i) or (ii) of the first sentence of Section 13(a) hereof: (A) the Person that is the issuer of the securities into which the shares of
Common Stock are converted in such merger or consolidation, or, if there is more than one such issuer, the issuer the shares of Common Stock of which have the greatest aggregate market value of shares outstanding, or (B) if no securities are so

  
 22 

 
issued, (x) the Person that is the other party to the merger, if such Person survives said merger, or, if there is more than one such Person, the Person the shares of Common Stock of which
have the greatest aggregate market value of shares outstanding or (y) if the Person that is the other party to the merger does not survive the merger, the Person that does survive the merger (including the Company if it survives) or
(z) the Person resulting from the consolidation; and 
 (ii) in the case of any transaction described in (iii) of the
first sentence of Section 13(a) hereof, the Person that is the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions, or, if each Person that is a party to such transaction
or transactions receives the same portion of the assets or earning power so transferred or if the Person receiving the greatest portion of the assets or earning power cannot be determined, whichever of such Persons is the issuer of Common Stock
having the greatest aggregate market value of shares outstanding; 
 provided, however, that in any such case described in the
foregoing clause (b)(i) or (b)(ii), if the Common Stock of such Person is not at such time or has not been continuously over the preceding 12-month period registered under Section 12 of the Exchange Act, then (1) if such Person is a direct
or indirect Subsidiary of another Person the Common Stock of which is and has been so registered, the term “Principal Party” shall refer to such other Person, or (2) if such Person is a Subsidiary, directly or indirectly, of more than
one Person, the Common Stock of all of which is and has been so registered, the term “Principal Party” shall refer to whichever of such Persons is the issuer of Common Stock having the greatest aggregate market value of shares outstanding,
or (3) if such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules set forth in clauses (1) and (2) above shall apply to
each of the owners having an interest in the venture as if the Person owned by the joint venture was a Subsidiary of both or all of such joint venturers, and the Principal Party in each such case shall bear the obligations set forth in this
Section 13 in the same ratio as its interest in such Person bears to the total of such interests. 
 (c) The Company shall
not consummate any consolidation, merger, sale or transfer referred to in Section 13(a) hereof unless prior thereto the Company and the Principal Party involved therein shall have executed and delivered to the Rights Agent an agreement
confirming that the requirements of Sections 13(a) and (b) hereof shall promptly be performed in accordance with their terms and that such consolidation, merger, sale or transfer of assets shall not result in a default by the Principal Party
under this Agreement as the same shall have been assumed by the Principal Party pursuant to Sections 13(a) and (b) hereof and providing that, as soon as practicable after executing such agreement pursuant to this Section 13, the Principal
Party will: 
 (i) prepare and file a registration statement under the Securities Act, if necessary, with respect to the Rights
and the securities purchasable upon exercise of the Rights on an appropriate form, use its best efforts to cause such registration statement to become effective as soon as practicable after such filing and use its best efforts to cause such
registration statement to remain effective (with a prospectus at all times meeting the requirements of the Securities Act) until the Expiration Date and similarly comply with applicable state securities laws; 

  
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 (ii) use its best efforts, if the Common Stock of the Principal Party shall be listed or
admitted to trading on the New York Stock Exchange, NASDAQ or on another national securities exchange, to list or admit to trading (or continue the listing of) the Rights and the securities purchasable upon exercise of the Rights on the New York
Stock Exchange or such securities exchange, or, if the Common Stock of the Principal Party shall not be listed or admitted to trading on the New York Stock Exchange, NASDAQ or a national securities exchange, to cause the Rights and the securities
receivable upon exercise of the Rights to be authorized for quotation on any other system then in use; 
 (iii) deliver to
holders of the Rights historical financial statements for the Principal Party which comply in all respects with the requirements for registration on Form 10 (or any successor form) under the Exchange Act; and 

(iv) obtain waivers of any rights of first refusal or preemptive rights in respect of the Common Stock of the Principal Party subject to
purchase upon exercise of outstanding Rights. 
 (d) In case the Principal Party has a provision in any of its authorized
securities or in its certificate of incorporation or by-laws or other instrument governing its affairs, which provision would have the effect of (i) causing such Principal Party to issue (other than to holders of Rights pursuant to this
Section 13), in connection with, or as a consequence of, the consummation of a transaction referred to in this Section 13, shares of Common Stock or Common Stock Equivalents of such Principal Party at less than the then current market
price per share thereof (determined pursuant to Section 11(d) hereof) or securities exercisable for, or convertible into, Common Stock or Common Stock Equivalents of such Principal Party at less than such then current market price, or
(ii) providing for any special payment, tax or similar provision in connection with the issuance of the Common Stock of such Principal Party pursuant to the provisions of Section 13, then, in such event, the Company hereby agrees with each
holder of Rights that it shall not consummate any such transaction unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing that the provision in question of
such Principal Party shall have been canceled, waived or amended, or that the authorized securities shall be redeemed, so that the applicable provision will have no effect in connection with, or as a consequence of, the consummation of the proposed
transaction. 
 (e) The Company covenants and agrees that it shall not, at any time after the Flip-In Event, enter into any
transaction of the type described in clauses (i) through (iii) of Section 13(a) hereof if (i) at the time of or immediately after such consolidation, merger, sale, transfer or other transaction there are any rights, warrants or
other instruments or securities outstanding or agreements in effect which would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights, (ii) prior to, simultaneously with or immediately after such
consolidation, merger, sale, transfer or other transaction, the stockholders of the Person who constitutes, or would constitute, the Principal Party for purposes of Section 13(b) hereof shall have received a distribution of Rights previously
owned by such Person or any of its Affiliates or Associates or (iii) the form or nature of organization of the Principal Party would preclude or limit the exercisability of the Rights. 

  
 24 

 (f) Notwithstanding anything contained herein to the contrary, in the event of any merger
or other acquisition transaction involving the Company pursuant to a merger or other acquisition agreement between the Company and any Person (or one or more of such Person’s Affiliates or Associates), which agreement has been approved by the
Board of Directors prior to any Person becoming an Acquiring Person, except for those provisions herein which expressly survive the termination of this Agreement, this Agreement and the rights of holders of Rights hereunder shall be terminated in
accordance with Section 7(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 in accordance with
Section 11(n) hereof) or to distribute Right Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates with regard to which such fractional Rights
would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of a whole Right. For the 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 for any 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 or NASDAQ or, if
the Rights are not listed or admitted to trading on the New York Stock Exchange or NASDAQ, 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 any 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 of Directors of the Company. 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 of Directors of the Company
shall be used. 
 (b) The Company shall not be required to issue fractions of Preferred Stock (other than fractions which are
integral multiples of one one-thousandth of a share of Preferred Stock) or to distribute certificates which evidence fractional shares of Preferred Stock (other than fractions which are integral multiples of one one-thousandth of a share of
Preferred Stock) upon the exercise or exchange of Rights. Interests in fractions of Preferred Stock in integral multiples of one one-thousandth of a share of Preferred Stock may, at the election of the Company, be evidenced by depositary receipts,
pursuant to an appropriate agreement between the Company and a depositary selected by it; provided that such agreement shall provide that the holders of such depositary receipts shall have all the

  
 25 

 
rights, privileges and preferences to which they are entitled as beneficial owners of the Preferred Stock represented by such depositary receipts. In lieu of fractional shares of Preferred Stock
that are not integral multiples of one one-thousandth of a share of Preferred Stock, the Company shall pay to the registered holders of Right Certificates at the time such Rights are exercised or exchanged as herein provided an amount in cash equal
to the same fraction of the current market value of a whole share of Preferred Stock (as determined in accordance with Section 14(a) hereof) for the Trading Day immediately prior to the date of such exercise or exchange. 

(c) The Company shall not be required to issue fractions of shares of Common Stock or to distribute certificates which evidence
fractional shares of Common Stock upon the exercise or exchange of Rights. In lieu of such fractional shares of Common Stock, the Company shall pay to the registered holders of the Right 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 purposes of this Section 14(c), the current market value of one share of Common Stock for
which a Right is exercisable shall be deemed to be the closing price of one share of Common Stock (as determined in accordance with Section 11(d)(i) hereof), for the Trading Day immediately prior to the date of such exercise. 

(d) The holder of a Right by the acceptance of the Right expressly waives his right to receive any fractional Rights or any fractional
shares upon exercise or exchange of a Right (except as provided above). 
 (e) Whenever a payment for fractional Rights or
fractional shares or other securities is to be made by the Rights Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payments and the prices
and/or formulas utilized in calculating such payments, and (ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such a
certificate and shall have no duty with respect to, and shall not be deemed to have knowledge of any payment for fractional Rights or fractional shares or other securities under any Section of this Agreement relating to the payment of fractional
Rights or fractional shares or other securities unless and until the Rights Agent shall have received such a certificate and sufficient monies. 
 Section 15. Rights of Action. (a) All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent under Section 18 and Section 20 hereof,
are vested in the respective registered holders of the Right Certificates (and, prior to the Distribution Date, the registered holders of the Common Stock); and any registered holder of any Right 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 Right Certificate (or, prior to the Distribution Date, of the Common Stock), on his own behalf and for his own benefit, may enforce, and may institute and
maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise the Rights evidenced by such Right Certificate (or, prior to the Distribution Date, such Common Stock) in the manner
provided therein and in this Agreement. Without limiting the foregoing or any remedies available to the holders of 

  
 26 

 
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 will be entitled to specific performance of the
obligations under, and injunctive relief against actual or threatened violations of, the obligations of any Person subject to this Agreement. 
 (b) Notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or other Person as a result of its inability to
perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, judgment, decree or ruling (whether interlocutory or final) issued by a court 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, that the
Company must use all reasonable efforts to have any such injunction, order, judgment, decree or ruling lifted or otherwise overturned as soon as possible. 
 Section 16. Agreement of Right 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 the Common Stock;

 (b) after the Distribution Date, the Right Certificates are transferable only on the registry books of the Rights Agent if
surrendered at the office or agency of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer; and 
 (c) the Company and the Rights Agent may deem and treat the Person in whose name the Right Certificate (or, prior to the Distribution Date, the associated Common Stock certificate (or Book Entry shares in
respect of such Common Stock)) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the Right Certificates or the associated Common Stock certificate (or notices
provided to holders of Book Entry shares of such 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 Section 7(e) hereof, shall be
affected by any notice to the contrary. 
 Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as
such, of any Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the Preferred Stock or any other securities of the Company which may at any time be issuable on the exercise or exchange of the
Rights represented thereby, nor shall anything contained herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the Company 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 this
Agreement), or to receive dividends or subscription rights, or otherwise, until the Rights evidenced by such Right Certificate shall have been exercised or exchanged in accordance with the provisions hereof. 

  
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 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 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, non-appealable order, judgment, decree or ruling of a
court of competent jurisdiction), for any action taken, suffered or omitted by the Rights Agent in connection with the acceptance, administration, exercise and performance of its duties under this Agreement. The costs and expenses incurred in
enforcing this right of indemnification shall be paid by the Company. The provisions of this Section 18 and Section 20 below shall survive the termination of this Agreement, the exercise or expiration of the Rights and the resignation,
replacement or removal of the Rights Agent. 
 (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 by it in connection with its acceptance and administration of this Agreement and the exercise and performance of its duties hereunder, in reliance upon any Right Certificate or
certificate for the Preferred Stock or 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 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, 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. 
 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 shareholder services business of the Rights Agent or any successor Rights Agent, shall
be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided that 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 

  
 28 

 
Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor Rights Agent and deliver such Right
Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor Rights Agent or in the
name of the successor Rights Agent; and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 
 (b) In case at any time the name of the Rights Agent shall be changed and at such time any of the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt the
countersignature under its prior name and deliver Right Certificates so countersigned; and in case at that time any of the Right Certificates shall not have been countersigned, the Rights Agent may countersign such Right Certificates either in its
prior name or in its changed name and in all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement. 
 Section 20. Duties of Rights Agent. The Rights Agent undertakes to perform only the duties and obligations expressly imposed by this Agreement (and no implied duties or obligations) upon the
following terms and conditions, by all of which the Company and the holders of Right 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 and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted by it 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 an Acquiring Person and the determination of the current per share market price of any security) be proved or established by the Company prior to taking, suffering or omitting to take any action
hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by the President and the Secretary of the Company and
delivered to the Rights Agent; and such certificate shall be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by
it under the provisions of this Agreement in reliance upon such certificate. 
 (c) The Rights Agent shall be liable hereunder
to the Company and any other Person only for its own gross negligence, bad faith or willful misconduct (each as determined by a final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction). Anything to the contrary
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. 

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

 (e) The Rights Agent shall not 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 Right Certificate (except its countersignature thereof); nor shall it be responsible for any
breach by the Company of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to
Section 11(a)(ii) hereof) or any change or adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Sections 3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that would require any
such change or adjustment (except with respect to the exercise of Rights evidenced by Right Certificates after receipt of a certificate furnished pursuant to Section 12, describing such change or adjustment, 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 Preferred Stock or other securities to be issued pursuant to this Agreement or any Right Certificate or
as to whether any shares of Preferred Stock or other securities will, when issued, be validly authorized and issued, fully paid and nonassessable. 
 (f) The Company 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 any person reasonably believed by the Rights Agent to be one of the President or the Secretary of the Company, and to apply to such officers for advice or instructions in connection with its duties, and such instructions shall be full
authorization and protection to the Rights Agent and the Rights Agent shall not be liable for 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 to be taken by the Rights Agent under this Agreement and the date on and/or after which such action shall be taken or suffered by or
such omission shall be effective. The Rights Agent shall not be liable for any action taken by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or after the date specified in such application (which
date shall not be less than five Business Days after the date any officer of the Company actually receives such application, unless any 

  
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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 to be taken. 
 (h)
The Rights Agent and any stockholder, affiliate, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company
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,
affiliate, director, officer or employee from acting in any other capacity for the Company or for any other Person. 
 (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, 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, default, neglect or misconduct, absent gross negligence, bad
faith or willful misconduct in the selection and continued employment thereof (each as determined by a final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction). 

(j) If, with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the certificate contained in the
form of assignment or the form of election to purchase set forth on the reverse thereof, as the case may be, has not been completed to certify the holder is not an Acquiring Person (or an Affiliate or Associate thereof) or a transferee thereof, the
Rights Agent shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company. 
 (k) No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the
exercise of its rights if it believes that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it. 
 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 30 days’ notice in writing mailed to
the Company and to each transfer agent of the Common Stock or Preferred Stock by registered or certified mail, and, following the Distribution Date, to the holders of the Right Certificates by first-class mail. The Company may remove the Rights
Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Stock or Preferred Stock by registered or certified mail,
and, following the Distribution Date, to the holders of the Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of 

  
 31 

 
acting, the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it
has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice, submit his Right Certificate for inspection by the Company), then the
registered holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a Person
organized and doing business under the laws of the United States or the laws of any state of the United States or the District of Columbia, in good standing, which is authorized under such laws to exercise stock transfer powers and is subject to
supervision or examination by federal or state authority and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $50 million or (b) an Affiliate of such a Person. After appointment, the successor
Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor
Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Stock or Preferred Stock, and, following the Distribution Date, mail a notice thereof in writing to the registered holders of the Right 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. 
 Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the
Rights to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such forms as may be approved by its Board of Directors 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 Right Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale of Common Stock following the Distribution Date
and prior to the Expiration Date, the Company may with respect to shares of Common Stock so issued or sold (i) pursuant to the exercise of stock options, (ii) under any employee plan or arrangement, (iii) upon the exercise, conversion
or exchange of securities, notes or debentures issued by the Company or (iv) pursuant to a contractual obligation of the Company, in each case existing prior to the Distribution Date, issue Rights Certificates representing the appropriate
number of Rights in connection with such issuance or sale. 
 Section 23. Redemption. 

(a) The Board of Directors of the Company may, at any time prior to the Flip-In Event, redeem all but not less than all the then
outstanding Rights at a redemption price of $0.01 per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring in respect of the Common Stock after the date hereof (the redemption price being
hereinafter referred to as the “Redemption Price”). The 

  
 32 

 
redemption of the Rights by the Board of Directors of the Company may be made effective at such time, on such basis and with such conditions as the Board of Directors of the Company in its sole
discretion may establish. The Redemption Price shall be payable, at the option of the Company, in cash, shares of Common Stock or such other form of consideration as the Board of Directors of the Company shall determine. 

(b) Immediately upon the action of the Board of Directors of the Company ordering the redemption of the Rights pursuant to paragraph
(a) of this Section 23 (or at such later time as the Board of Directors of the Company may establish for the effectiveness of such redemption), and without any further action and without any notice, the right to exercise the Rights will
terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price. The Company shall promptly give public notice of any such redemption (with prompt written notice thereof to the Rights Agent);
provided, however, that the failure to give, or any defect in, any such notice shall not affect the legality or validity of such redemption. Within 10 days after such action of the Board of Directors of the Company ordering the
redemption of the Rights (or such later time as the Board of Directors of the Company may establish for the effectiveness of such redemption), the Company shall mail a notice of redemption to all the holders of the then outstanding Rights at their
last addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Stock. Any notice which is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. Each such notice of redemption shall state the method by which the payment of the Redemption Price will be made. 
 Section 24. Exchange. 
 (a) The Board of Directors of the Company may, at
its option, at any time after the Flip-In Event, exchange all or part of the then outstanding Rights (which shall not include Rights that have become null and void pursuant to the provisions of Section 11(a)(ii) hereof) for shares of 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 in respect of the Common Stock, after the date hereof (such amount per Right being
hereinafter referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board of Directors of the Company shall not be empowered to effect such exchange at any time after an Acquiring Person shall have become the Beneficial
Owner of 50% or more of the shares of the Common Stock then outstanding. From and after the occurrence of an event specified in Section 13(a) hereof, any Rights that theretofore have not been exchanged pursuant to this Section 24(a) shall
thereafter be exercisable only in accordance with Section 13 and may not be exchanged pursuant to this Section 24(a). The exchange of the Rights by the Board of Directors of the Company may be made effective at such time, on such basis and
with such conditions as the Board of Directors of the Company in its sole discretion may establish. Prior to effecting an exchange pursuant to this Section 24, the Board of Directors may direct the Company to enter into a Trust Agreement in
such form and with such terms as the Board of Directors shall then approve (the “Trust Agreement”). If the Board of Directors so directs, the Company shall enter into the Trust Agreement and shall issue to the trust created by such
agreement (the “Trust”) all of the shares of Common Stock issuable 

  
 33 

 
pursuant to the exchange, and all Persons entitled to receive shares pursuant to the exchange shall be entitled to receive such shares (and any dividends or distributions made thereon after the
date on which such shares are deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the Trust Agreement. 
 (b) Immediately upon the effectiveness of the action of the Board of Directors of the Company ordering the exchange of any Rights pursuant to paragraph (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 such Rights held by
such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange (with prompt written notice 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 shall promptly mail a notice of any such exchange to all of the holders of the Rights so exchanged at their last addresses as they appear upon the registry books of
the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange will state the method by which the exchange of the shares of Common Stock
for Rights will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become null and void
pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder of Rights. 
 (c) The Company may at its option
substitute, and, in the event that there shall not be sufficient shares of Common Stock issued but not outstanding or authorized but unissued to permit an exchange of Rights for Common Stock as contemplated in accordance with this Section 24,
the Company shall substitute to the extent of such insufficiency, for each share of Common Stock that would otherwise be issuable upon exchange of a Right, a number of shares of Preferred Stock or fraction thereof (or Equivalent Preferred Shares, as
such term is defined in Section 11(b)) such that the current per share market price (determined pursuant to Section 11(d) hereof) of one share of Preferred Stock (or Equivalent Preferred Share) multiplied by such number or fraction is
equal to the current per share market price of one share of Common Stock (determined pursuant to Section 11(d) hereof) as of the date of such exchange. 
 Section 25. Notice of Certain Events. 
 (a) In case the Company shall at
any time after the earlier of the Distribution Date or the Stock Acquisition Date propose (i) to pay any dividend payable in stock of any class to the holders of its Preferred Stock or to make any other distribution to the holders of its
Preferred Stock (other than a regular quarterly cash dividend), (ii) to offer to the holders of its 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 or combination of outstanding Preferred Stock), (iv) to effect the
liquidation, dissolution or winding up of the Company, or (v) to 

  
 34 

 
pay any dividend on the Common Stock payable in Common Stock or to effect a subdivision, combination or consolidation of the Common Stock (by reclassification or otherwise than by payment of
dividends in Common Stock), then, in each such case, the Company shall give to the Rights Agent and each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of such proposed action, which shall specify the record date
for the purposes of such dividend or distribution or offering of rights or warrants, or the date on which such liquidation, dissolution, winding up, reclassification, subdivision, combination or consolidation is to take place and the date of
participation therein by the holders of the Common Stock and/or 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 10 days prior to the
record date for determining holders of the Preferred Stock for purposes of such action, and in the case of any such other action, at least 10 days prior to the date of the taking of such proposed action or the date of participation therein by the
holders of the Common Stock and/or Preferred Stock, whichever shall be the earlier. 
 (b) In case any event described in
Section 11(a)(ii) or Section 13 shall occur then the Company shall as soon as practicable thereafter give to the Rights Agent and to each holder of a Right Certificate (or if occurring prior to the Distribution Date, the holders of the
Common Stock) in accordance with Section 26 hereof, a notice of the occurrence of such event, which notice shall describe such event and the consequences of such event to holders of Rights under Section 11(a)(ii) and Section 13
hereof. 
 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 Right Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows: 

PharMerica Corporation 
 1901 Campus Place 
 Louisville, KY 40299 

Attention: Thomas A. Caneris, Senior Vice President and General Counsel 
 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 Right Certificate to or on the Rights
Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows: 
 Mellon Investor Services LLC 
 480 Washington Boulevard 

Jersey City, NJ 07310 
 Attention: Cassandra D. Shedd 
 with a copy to: 

Mellon Investor Services LLC 
 480 Washington Boulevard 

  
 35 

 Jersey City, NJ 07310 

Attention: Legal Department 
 Facsimile: (201) 680-4610 
 Notices or demands authorized by this Agreement to be given or
made by the Company or the Rights Agent to the holder of any Right Certificate shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of
the Company. 
 Section 27. Supplements and Amendments. Subject to this Section 27, for so long as the Rights are
then redeemable, the Company may in its sole and absolute discretion, and the Rights Agent shall if the Company so directs, supplement or amend any provision of this Agreement in any respect without the approval of any holders of the Rights. At any
time when the Rights are no longer redeemable, except as provided in this Section 27, the Company may, and the Rights Agent shall, if the Company so directs, supplement or amend this Agreement without the approval of any holders of Rights,
provided that no such supplement or amendment may (a) adversely affect the interests of the holders of Rights as such (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person), (b) cause this Agreement
again to become amendable other than in accordance with this sentence or (c) cause the Rights again to become redeemable. Notwithstanding anything contained in this Agreement to the contrary, no supplement or amendment shall be made which
changes the Redemption Price. Upon the delivery of a certificate from the President of the Company, which states that the proposed supplement or amendment complies with the terms of this Section 27, the Rights Agent shall execute such
supplement or amendment, provided that any supplement or amendment that does not amend Sections 18, 19, 20 or 21 hereof or this Section 27 in a manner adverse to the Rights Agent shall become effective as to the holders of the Rights and
the Company immediately upon execution by the Company, whether or not also executed by the Rights Agent (but shall not be binding upon the Rights Agent until it is executed by it). Notwithstanding anything contained in this Agreement to
the contrary, 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. 

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. 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 Right Certificates (and, prior to the Distribution Date, the Common Stock) any legal or
equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, the
Common Stock). 
 Section 30. Determinations and Actions by the Board of Directors. The Board of Directors of the Company
shall have the exclusive power and authority to administer this Agreement and to exercise the rights and powers specifically granted to the 

  
 36 

 
Board of Directors of the Company or to the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right and power to
(i) interpret the provisions of this Agreement and (ii) make all determinations deemed necessary or advisable for the administration of this Agreement (including, without limitation, a determination to redeem or not redeem the Rights or to
amend or not amend this Agreement). All such actions, calculations, interpretations and determinations that are done or made by the Board of Directors of the Company in good faith shall be final, conclusive and binding on the Company, the Rights
Agent, the holders of the Rights, as such, and all other parties. The Rights Agent is entitled always to assume the Company’s Board of Directors acted in good faith and shall be fully protected and incur no liability in reliance thereon.

 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; 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.

 Section 32. Governing Law. This Agreement and each Right 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 to be made and performed entirely within such State; provided,
however, that all provisions, regarding the rights, duties, obligations and liabilities of the Rights Agent shall be governed by and construed in accordance with the laws of the State of New York 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. 

Section 34. Descriptive Headings. Descriptive headings of the several Sections of this Agreement are inserted for convenience only
and shall not control or affect the meaning or construction of any of the provisions hereof. 
 Section 35. Customer
Identification Program. The Company acknowledges that the Rights Agent is subject to the customer identification program (“Customer Identification Program”) requirements under the USA PATRIOT Act and its implementing regulations, and
that the Rights Agent must obtain, verify and record information that allows the Rights Agent to identify the Company. Accordingly, prior to accepting an appointment hereunder, the Rights Agent may request information from the Company that will help
the Rights Agent to identify the Company, including without limitation the Company’s physical address, tax identification number, organizational documents, certificate of good standing, license to do business, or any other information that the
Rights Agent deems necessary. The Company agrees that the Rights Agent cannot accept an appointment hereunder unless and until the Rights Agent verifies the Company’s identity in accordance with the Customer Identification Program requirements.

  
 37 

 Section 36. Incentive Compensation Program. The Company acknowledges that The Bank
of New York Mellon (“BNYM”) has adopted an incentive compensation program designed (i) to facilitate clients gaining access to and being provided with explanations about the full range of products and services offered by BNYM and its
subsidiaries and (ii) to expand and develop client relationships. This program may lead to the payment of referral fees and/or bonuses to employees of BNYM or its subsidiaries who may have been involved in a referral that resulted in the
execution of this Agreement, obtaining products or services covered by this Agreement or obtaining products or services that may be ancillary or supplemental to such products or services. Any such referral fees or bonuses are funded solely out of
fees and commissions paid under this Agreement or with respect to such ancillary or supplemental products or services. 

  
 38 

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

			
	PHAMERICA CORPORATION
		
	 By:
	 	 /s/ Gregory S. Weishar

		 	Name: Gregory S. Weishar
		 	Title: Chief Executive Officer
	
	 MELLON INVESTOR SERVICES LLC,
 as Rights Agent

		
	 By:
	 	 /S/ Cassandra D. Shedd

		 	Name: Cassandra D. Shedd
		 	Title: Vice President

  
 39 

 Exhibit A 
 FORM OF 
 CERTIFICATE OF DESIGNATION 

of 
 SERIES A
JUNIOR PARTICIPATING PREFERRED STOCK 
 of 
 PHARMERICA CORPORATION 
 Pursuant to Section 151 of the General Corporation

 Law of the State of Delaware 
 PharMerica Corporation, a corporation organized and existing under the laws of the State of Delaware (the “Corporation”), in accordance with the provisions of Section 103 thereof, DOES
HEREBY CERTIFY: 
 That pursuant to the authority vested in the Board of Directors of the Corporation (the “Board of
Directors”) in accordance with the provisions of the Certificate of Incorporation, as amended, of the said Corporation (the “Certificate of Incorporation”), the said Board of Directors on August 25, 2011 adopted the following
resolution creating a series of 175,000 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 this Corporation in accordance with the provisions of the Certificate of Incorporation, a series of Preferred Stock, par value
$0.01 per share, of the Corporation be and hereby is created, and that the designation and number of shares thereof and the voting and other powers, preferences and relative, participating, optional or other rights of the shares of such series and
the qualifications, limitations and restrictions thereof are as follows: 
 Series A Junior Participating Preferred Stock

 1. Designation and Amount. There shall be a series of Preferred Stock that shall be designated as “Series
A Junior Participating Preferred Stock,” and the number of shares constituting such series shall be 175,000. Such number of shares may be 

  
 A-1

 
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 less than
the number of shares then issued and outstanding plus the number of shares issuable upon exercise of outstanding rights, options or warrants or upon conversion of outstanding securities issued by the Corporation. 

2. Dividends and Distributions. 
 (A) Subject to the prior and superior rights of the holders of any shares of any class or series of stock of the Corporation ranking prior and superior to the shares of Series A Junior Participating
Preferred Stock with respect to dividends, the holders of shares of Series A Junior Participating Preferred Stock, in preference to the holders of shares of any class or series of stock of the Corporation ranking junior to the Series A Junior
Participating Preferred Stock in respect thereof, 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 first 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) $10.00 or (b) the Adjustment Number (as defined below) times the aggregate per share amount of all cash
dividends, and the Adjustment Number 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, par value $0.01 per share, of the Corporation (the
“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. The “Adjustment Number” shall initially be 1,000. In the event the Corporation shall at any
time after August 25, 2011 (i) declare and pay 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. 
 (B) The Corporation 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). 
 (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 

  
 A-2

 
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 60 days prior to the date fixed for the
payment thereof. 
 3. Voting Rights. The holders of shares of Series A Junior Participating Preferred Stock shall have
the following voting rights: 
 (A) Each share of Series A Junior Participating Preferred Stock shall entitle the holder
thereof to a number of votes equal to the Adjustment Number on all matters submitted to a vote of the stockholders of the Corporation. 
 (B) Except as required by law, by Section 3(C) and by Section 10 hereof, 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. 
 (C) If, at the time of any annual meeting of stockholders for the election of directors, the equivalent of six quarterly dividends (whether or not consecutive) payable on any share or shares of Series A
Junior Participating Preferred Stock are in default, the number of directors constituting the Board of Directors of the Corporation shall be increased by two. In addition to voting together with the holders of Common Stock for the election of other
directors of the Corporation, the holders of record of the Series A Junior Participating Preferred Stock, voting separately as a class to the exclusion of the holders of Common Stock, shall be entitled at said meeting of stockholders (and at each
subsequent annual meeting of stockholders), unless all dividends in arrears on the Series A Junior Participating Preferred Stock have been paid or declared and set apart for payment prior thereto, to vote for the election of two directors of the
Corporation, the holders of any Series A Junior Participating Preferred Stock being entitled to cast a number of votes per share of Series A Junior Participating Preferred Stock as is specified in paragraph (A) of this Section 3. Each such
additional director shall but shall serve until the next annual meeting of stockholders for the election of directors, or until his successor shall be elected and shall qualify, or until his right to hold such office terminates pursuant to the
provisions of this Section 3(C). Until the default in payments of all dividends which permitted the election of said directors shall cease to exist, any director who shall have been so elected pursuant to the provisions of this
Section 3(C) may be 

  
 A-3

 
removed at any time, without cause, only by the affirmative vote of the holders of the shares of Series A Junior Participating Preferred Stock at the time entitled to cast a majority of the votes
entitled to be cast for the election of any such director at a special meeting of such holders called for that purpose, and any vacancy thereby created may be filled by the vote of such holders. If and when such default shall cease to exist, the
holders of the Series A Junior Participating Preferred Stock shall be divested of the foregoing special voting rights, subject to revesting in the event of each and every subsequent like default in payments of dividends. Upon the termination of the
foregoing special voting rights, the terms of office of all persons who may have been elected directors pursuant to said special voting rights shall forthwith terminate, and the number of directors constituting the Board of Directors shall be
reduced by two. The voting rights granted by this Section 3(C) shall be in addition to any other voting rights granted to the holders of the Series A Junior Participating Preferred Stock in this Section 3. 

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

(i) declare or pay dividends on, 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; or 
 (iii) 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 Series A Junior Participating Preferred Stock, or to such holders and holders of any such shares ranking on a parity therewith, 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 Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of
stock of the Corporation unless the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 

  
 A-4

 5. Reacquired Shares. Any shares of Series A Junior Participating Preferred Stock
purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired promptly after the acquisition thereof. All such shares shall upon their retirement 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 any conditions and restrictions on issuance set forth herein. 

6. Liquidation, Dissolution or Winding Up. (A) Upon any liquidation, dissolution or winding up of the Corporation, voluntary
or otherwise, 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 per share (the “Series A Liquidation Preference”) equal to the greater of (i) $10.00 plus an amount equal to accrued and unpaid dividends
and distributions thereon, whether or not declared, to the date of such payment, or (ii) the Adjustment Number times the per share amount of all cash and other property to be distributed in respect of the Common Stock upon such liquidation,
dissolution or winding up of the Corporation. 
 (B) In the event, however, that there are not sufficient assets available to
permit payment in full of the Series A Liquidation Preference and the liquidation preferences of all other classes and series of stock of the Corporation, if any, that rank on a parity with the Series A Junior Participating Preferred Stock in
respect thereof, then the assets available for such distribution shall be distributed ratably to the holders of the Series A Junior Participating Preferred Stock and the holders of such parity shares in proportion to their respective liquidation
preferences. 
 (C) Neither the merger or consolidation of the Corporation into or with another entity nor the merger or
consolidation of any other entity into or with the Corporation shall be deemed to be a liquidation, dissolution or winding up of the Corporation within the meaning of this Section 6. 

7. Consolidation, Merger, Etc. In case the Corporation shall enter into any consolidation, merger, combination or other
transaction in which the outstanding 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 each share of Series A Junior Participating Preferred Stock shall at the
same time be similarly exchanged or changed in an amount per share equal to the Adjustment Number 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. 
 8. No Redemption. Shares of Series A Junior Participating Preferred
Stock shall not be subject to redemption by the Corporation. 
 9. Ranking. The Series A Junior Participating Preferred
Stock shall rank junior to all other series of Preferred Stock as to the payment of dividends and as to the distribution of assets upon liquidation, dissolution or winding up, unless the terms of any such series shall provide otherwise, and shall
rank senior to the Common Stock as to such matters. 

  
 A-5

 10. Amendment. At any time that any shares of Series A Junior Participating
Preferred Stock are outstanding, the Certificate of Incorporation of the Corporation shall not be amended, by merger, consolidation or otherwise, which would materially alter or change the powers, preferences or special rights of the Series A Junior
Participating Preferred Stock so as to affect them adversely without the affirmative vote of the holders of two-thirds of the outstanding shares of Series A Junior Participating Preferred Stock, voting separately as a class. 

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

  
 A-6

 IN WITNESS WHEREOF, the undersigned has executed this Certificate this 25 day of August,
2011. 
  

			
	PHARMERICA CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:

  
 A-7

 Exhibit B 
 Form of Right Certificate 
 Certificate No.
R-             
  

	
	NOT EXERCISABLE AFTER AUGUST 25, 2021 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS OR IF STOCKHOLDERS AT THE 2012 ANNUAL STOCKHOLDERS MEETING OF PHARMERICA CORPORATION DO NOT APPROVE
THE RIGHTS AGREEMENT. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $.01 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY
PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

 RIGHT CERTIFICATE 
 PHARMERICA CORPORATION 
 This certifies that
                                         
                    or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Rights Agreement, dated as of August 25, 2011, as the same may be amended from time to time (the “Rights Agreement”), between PharMerica Corporation, a Delaware corporation (the
“Company”), and Mellon Investor Services LLC, as Rights Agent (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 P.M.,
New York City time, on August 25, 2011 at the office or agency of the Rights Agent designated for such purpose, or of its successor as Rights Agent, one one-thousandth of a fully paid non-assessable share of Series A Junior Participating
Preferred Stock, par value $0.01 per share (the “Preferred Stock”), of the Company at a purchase price of $45.00 per one one-thousandth of a share of Preferred Stock (the “Purchase Price”), upon presentation and surrender of this
Right Certificate with the Form of Election to Purchase duly executed. The number of Rights evidenced by this Rights Certificate (and the number of one one-thousandths of a share of Preferred Stock which may be purchased upon exercise hereof) set
forth above, and the Purchase Price set forth above, are the number and Purchase Price as of August 25, 2011, based on the Preferred Stock as constituted at such date. As provided in the Rights Agreement, the Purchase Price, the number of one
one-thousandths of a share of Preferred Stock (or other securities or property) which may be purchased upon the exercise of the Rights and the number of Rights evidenced by this Right Certificate are subject to modification and adjustment upon the
happening of certain events. 

  
 B-1

 This Right Certificate is subject to all of the terms, provisions and conditions of the
Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights,
obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates. Copies of the Rights Agreement are on file at the principal executive offices of the Company and the above-mentioned office or
agency of the Rights Agent. The Company will mail to the holder of this Right Certificate a copy of the Rights Agreement without charge after receipt of a written request therefor. 

This Right Certificate, with or without other Right Certificates, upon surrender at the office or agency of the Rights Agent designated
for such purpose, may be exchanged for another Right Certificate or Right Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of shares of Preferred Stock as the Rights evidenced by the
Right Certificate or Right Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another Right Certificate or Right
Certificates for the number of whole Rights not exercised. 
 Subject to the provisions of the Rights Agreement, the Rights
evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of $.01 per Right or (ii) may be exchanged in whole or in part for shares of the Company’s Common Stock, par value $0.01 per share, or shares of
Preferred Stock. 
 No fractional shares of Preferred Stock or Common Stock will be issued upon the exercise or exchange of any
Right or Rights evidenced hereby (other than fractions of Preferred Stock 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 depository receipts), but in lieu
thereof a cash payment will be made, as provided in the Rights Agreement. 
 No holder of this Right Certificate, as such, shall
be entitled to vote or receive dividends or be deemed for any purpose the holder of the Preferred Stock or of any other securities of the Company which may at any time be issuable on the exercise or exchange hereof, nor shall anything contained in
the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting
thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement) or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Right Certificate shall have been exercised or exchanged as provided in the Rights Agreement. 

  
 B-2

 This Right Certificate shall not be valid or obligatory for any purpose until it shall have
been countersigned by the Rights Agent. 
 WITNESS the facsimile signature of the proper officers of the Company and its
corporate seal. Dated as of                  , 20    . 

 

			
	PHARMERICA CORPORATION
		
	By:	 	  

		 	[Title]

  

			
	ATTEST:
	
	  

	[Title]
	
	Countersigned:
	
	MELLON INVESTOR SERVICES LLC, as Rights Agent
		
	By	 	  

		 	[Title]

  
 B-3

 Form of Reverse Side of Right Certificate 

FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such 
 holder desires to transfer the
Right Certificate) 
  

			
	
FOR VALUE RECEIVED                       
                               hereby sells, assigns and transfers 
unto
	 	          

  
  

(Please print name and address of transferee) 
              Rights represented by this Right Certificate, together with all right, title and interest therein, and does hereby irrevocably
constitute and appoint
                                         
                    Attorney, to transfer said Rights on the books of the within-named Company, with full power of substitution. 

 

			
	Dated:	 	  

  

	
	  

	Signature

 Signature Guaranteed: 
 The signature must be guaranteed by a participant in a Medallion Signature Guarantee Program at the “Z” guarantee level. A notary public is not sufficient. 

 

			
	  
	 	
	(To be completed)	 	

 The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not beneficially
owned by, were not acquired by the undersigned from, and are not being assigned to an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement). 

 

	
	  

	Signature

  
 B-4

 Form of Reverse Side of Right Certificate - continued 

 
 FORM OF ELECTION TO PURCHASE 

(To be executed if holder desires to exercise 
 Rights represented by the Rights Certificate) 
 To PHARMERICA CORPORATION: 

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

 
 (Please print name and address)

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

or other identifying number 
  

 
 (Please print name and address)

  
  

 

			
	Dated:	 	  

  

	
	  

	Signature

 (Signature must conform to holder specified on Right Certificate) 

Signature Guaranteed: 
 The
signature must be guaranteed by a participant in a Medallion Signature Guarantee Program at the “Z” guarantee level. A notary public is not sufficient. 

  
 B-5

 Form of Reverse Side of Right Certificate - continued 

 
  
  

(To be completed) 

The undersigned certifies that the Rights evidenced by this Right Certificate are not beneficially owned by, and were not acquired by the
undersigned from, an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement). 
  

	
	  

	Signature

  
  

NOTICE 

The signature in the Form of Assignment or Form of Election to Purchase, as the case may be, must conform to the name as written upon the
face of this Right Certificate in every particular, without alteration or enlargement or any change whatsoever. 
 In the event
the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, such Assignment or Election to Purchase will not be honored. 

  
 B-6

 Exhibit C 

 

	
	UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS OWNED BY OR TRANSFERRED TO ANY PERSON WHO IS OR BECOMES AN ACQUIRING PERSON (AS DEFINED IN THE RIGHTS
AGREEMENT) AND CERTAIN TRANSFEREES THEREOF WILL BECOME NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

 SUMMARY OF RIGHTS TO PURCHASE 
 SHARES OF PREFERRED STOCK OF 
 PHARMERICA CORPORATION 

On August 25, 2011, the Board of Directors of PharMerica Corporation (the “Company”) declared a dividend of one preferred
share purchase right (a “Right”) for each outstanding share of common stock, par value $0.01 per share, of the Company (the “Common Stock”). The dividend is payable on September 6, 2011 (the “Record Date”) to the
stockholders of record on that date. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per share, of the Company (the
“Preferred Stock”) at a price of $45.00 per one one-thousandth of a share of Preferred Stock (the “Purchase Price”), subject to adjustment. The description and terms of the Rights are set forth in a Rights Agreement dated as of
August 25, 2011, as the same may be amended from time to time (the “Rights Agreement”), between the Company and Mellon Investor Services LLC, as Rights Agent (the “Rights Agent”). 

Until the earlier to occur of (i) 10 days following a public announcement that a person or group of affiliated or associated persons
(with certain exceptions, an “Acquiring Person”) has acquired beneficial ownership of 15% or more of the outstanding shares of Common Stock or (ii) 10 business days (or such later date as may be determined by action of the Board of
Directors of the Company prior to such time as any person or group of affiliated persons becomes an Acquiring Person) following the commencement of, or announcement of an intention to make, a tender offer or exchange offer the consummation of which
would result in the beneficial ownership by a person or group of 15% or more of the outstanding shares of Common Stock (the earlier of such dates being called the “Distribution Date”), the Rights will be evidenced, with respect to any of
the Common Stock certificates outstanding as of the Record Date, by such Common Stock certificate together with this Summary of Rights. 
 The Rights Agreement provides that, until the Distribution Date (or earlier expiration of the Rights), the Rights will be transferred with and only with the Common Stock. Until the Distribution Date (or
earlier expiration of the Rights), new Common Stock certificates issued after the Record Date upon transfer or new issuances of Common Stock will contain a notation incorporating the Rights Agreement by reference. Until the

  
 C-1

 
Distribution Date (or earlier expiration of the Rights), the surrender for transfer of any certificates for shares of Common Stock outstanding as of the Record Date, even without such notation or
a copy of this Summary of Rights, will also constitute the transfer of the Rights associated with the shares of Common Stock represented by such certificate. As soon as practicable following the Distribution Date, separate certificates evidencing
the Rights (“Right Certificates”) will be mailed to holders of record of the Common Stock as of the close of business on the Distribution Date and such separate Right Certificates alone will evidence the Rights. 

The Rights are not exercisable until the Distribution Date. The Rights will expire on August 25, 2021 (the “Final Expiration
Date”), unless the Final Expiration Date is advanced or extended or unless the Rights are earlier redeemed or exchanged by the Company, in each case as described below; provided, however, the Rights will expire immediately at the final
adjournment of the Company’s 2012 annual meeting of stockholders if stockholder approval of the Rights Agreement has not been received prior to such time. 
 The Purchase Price payable, and the number of shares of Preferred Stock or other securities or property issuable, upon exercise of the Rights is subject to adjustment from time to time to prevent dilution
(i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Preferred Stock, (ii) upon the grant to holders of the Preferred Stock of certain rights or warrants to subscribe for or purchase Preferred
Stock at a price, or securities convertible into Preferred Stock with a conversion price, less than the then-current market price of the Preferred Stock or (iii) upon the distribution to holders of the Preferred Stock of evidences of
indebtedness or assets (excluding regular periodic cash dividends or dividends payable in Preferred Stock) or of subscription rights or warrants (other than those referred to above). 

The number of outstanding Rights is subject to adjustment in the event of a stock dividend on the Common Stock payable in shares of
Common Stock or subdivisions, consolidations or combinations of the Common Stock occurring, in any such case, prior to the Distribution Date. 
 Shares of Preferred Stock purchasable upon exercise of the Rights will not be redeemable. Each share of Preferred Stock will be entitled, when, as and if declared, to a minimum preferential quarterly
dividend payment of the greater of (a) $10.00 per share, and (b) an amount equal to 1000 times the dividend declared per share of Common Stock. In the event of liquidation, dissolution or winding up of the Company, the holders of the
Preferred Stock will be entitled to a minimum preferential payment of the greater of (a) $10.00 per share (plus any accrued but unpaid dividends), and (b) an amount equal to 1000 times the payment made per share of Common Stock. Each share
of Preferred Stock will have 1000 votes, voting together with the Common Stock. Finally, in the event of any merger, consolidation or other transaction in which outstanding shares of Common Stock are converted or exchanged, each share of Preferred
Stock will be entitled to receive 1000 times the amount received per share of Common Stock. These rights are protected by customary antidilution provisions. 

  
 C-2

 Because of the nature of the Preferred Stock’s dividend, liquidation and voting
rights, the value of the one one-thousandth interest in a share of Preferred Stock purchasable upon exercise of each Right should approximate the value of one share of Common Stock. 

In the event that any person or group of affiliated or associated persons becomes an Acquiring Person, each holder of a Right, other than
Rights beneficially owned by the Acquiring Person (which will thereupon become void), will thereafter have the right to receive upon exercise of a Right that number of shares of Common Stock having a market value of two times the exercise price of
the Right. 
 In the event that, after a person or group has become an Acquiring Person, the Company is acquired in a merger or
other business combination transaction or 50% or more of its consolidated assets or earning power are sold, proper provisions will be made so that each holder of a Right (other than Rights beneficially owned by an Acquiring Person which will have
become void) will thereafter have the right to receive upon the exercise of a Right that number of shares of common stock of the person with whom the Company has engaged in the foregoing transaction (or its parent) that at the time of such
transaction have a market value of two times the exercise price of the Right. 
 At any time after any person or group becomes
an Acquiring Person and prior to the earlier of one of the events described in the previous paragraph or the acquisition by such Acquiring Person of 50% or more of the outstanding shares of Common Stock, the Board of Directors of the Company may
exchange the Rights (other than Rights owned by such Acquiring Person which will have become void), in whole or in part, for shares of Common Stock or Preferred Stock (or a series of the Company’s preferred stock having equivalent rights,
preferences and privileges), at an exchange ratio of one share of Common Stock, or a fractional share of Preferred Stock (or other preferred stock) equivalent in value thereto, per Right. 

With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of at
least 1% in such Purchase Price. No fractional shares of Preferred Stock or Common Stock will be issued (other than fractions of Preferred Stock 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), and in lieu thereof an adjustment in cash will be made based on the current market price of the Preferred Stock or the Common Stock. 

At any time prior to the time an Acquiring Person becomes such, the Board of Directors of the Company may redeem the Rights in whole, but
not in part, at a price of $.01 per Right (the “Redemption Price”) payable, at the option of the Company, in cash, shares of Common Stock or such other form of consideration as the Board of Directors of

  
 C-3

 
the Company shall determine. The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board of Directors of the Company in its sole
discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price. 

For so long as the Rights are then redeemable, the Company may, except with respect to the Redemption Price, amend the Rights Agreement
in any manner. After the Rights are no longer redeemable, the Company may, except with respect to the Redemption Price, amend the Rights Agreement in any manner that does not adversely affect the interests of holders of the Rights. 

Until a Right is exercised or exchanged, the holder thereof, as such, will have no rights as a stockholder of the Company, including,
without limitation, the right to vote or to receive dividends. 

  
 C-4

 A copy of the Rights Agreement has been filed with the Securities and Exchange Commission
as an Exhibit to a Form 8-K dated August 25, 2011. A copy of the Rights Agreement 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 Rights Agreement, as the same may be amended from time to time, which is hereby incorporated herein by reference. 

  
 C-5Interim Services Agreement

 Exhibit 10.1 
 Interim Services Agreement (the “Agreement”) 
 August 24, 2011

 Motricity, Inc. 
 601 108th Avenue
N.E. 
 Bellevue, WA 98004 
 SFN Professional Services LLC, a subsidiary of SFN Group, Inc. with global headquarters at 2050 Spectrum Boulevard, Fort Lauderdale, FL 33309 (“SFNPS,” “we,” “us” or
“our”) is pleased that Motricity, Inc. (“Company,” “you” or “your”) has selected us to provide you with outsourced interim services. The services (the “Services”) and fees will be more particularly
described on the Schedule attached hereto and will be provided by the individual professional (the “SFNPS Professional”) identified on such Schedule. Schedules for additional SFNPS Professionals may be added from time to time upon the
mutual written agreement of the parties. In addition, upon the request of the Company and the execution of an additional Schedule to this Agreement, SFNPS will provide search Services to the Company, all as more particularly described on such
Schedule. 
 Each of SFNPS, on behalf of Tatum, a division of SFNPS, and Company, hereby terminate to the extent not already terminated, in
accordance with their respective terms, that certain (i) Project Work Agreement dated February 18, 2011, by and between Tatum, as a division of SFNPS, and the Company, (ii) Executive Services Agreement dated August 1, 2008, as
amended by that certain Permanent Executive Services Amendment, dated March 4, 2009, between Tatum, LLC and Company, and (iii) Interim Staffing Services Agreement, dated on or about August 15, 2008, between Tatum, LLC and the Company
(collectively, the “Tatum/Motricity Agreements”); provided, however, that the terms and of conditions of the Tatum/Motricity Agreements that survive termination or expiration of such agreements shall continue to survive. Other than the
Tatum/Motricity Agreements which are terminated pursuant to the foregoing sentence and shall not be rescinded, nullified or voided ab initio, each of SFNPS and Company hereby agree that any prior interim services agreement between Tatum, as a
division of SFNPS and Tatum LLC and the Company are hereby rescinded, terminated, nullified and voided, in each case, ab initio, and shall be of no force or effect ab initio. This Agreement constitutes the complete and exclusive understanding and
agreement of SFNPS and Company with respect to the subject matter hereof and supersedes all prior understandings and agreements, whether written or oral, with respect to the subject matter hereof, including without limitation, the aforementioned
voided agreements. 
 Engagement. The SFNPS Professional will be one of SFNPS’s professionals, and we will be solely
responsible for determining the conditions, terms and payment of compensation and benefits for the SFNPS Professional. You will be solely responsible for providing the SFNPS Professional day-to-day guidance, supervision, direction, assistance and
other information necessary for the successful and timely completion of the Services. SFNPS will have no oversight, control, or authority over the SFNPS Professional with respect to the Services. The applicable Schedule will identify the applicable
details for the engagement, including the SFNPS Professional’s name, high-level description of the SFNPS Professional’s role and required Services to be provided to Company, the Fees, and the Company’s designated management and/or
Board level individual to be responsible for overseeing the Services and to whom the SFNPS Professional will report with respect to the provision of the Services. Unless the SFNPS Professional is acting as an executive officer of the Company (e.g.
Interim Chief Financial Officer) and is authorized by the Company to make such decision, the Company will not require the SFNPS Professional to be the ultimate decision making authority for any material decision relating to your business, including,
without limitation, any proposed merger, acquisition, recapitalization, financial strategy or restructuring. 

  
 1 

 Fees and Expenses. Company will pay us the professional fees set forth on the applicable
Schedule (the “Fees”). SFNPS will not incur and Company will not be responsible to pay SFNPS for any travel or out-of-pocket expenses incurred in connection with this Agreement (including any Schedules). Notwithstanding the foregoing,
Company will, subject to Company’s travel and entertainment policy, directly reimburse SFNPS Professional for certain travel expenses and other expenses in accordance with the Company’s policies. You will have no obligation to provide the
SFNPS Professional benefits or compensation of any kind, including, without limitation, any health insurance, other management level benefits, equity or cash bonuses (the “SFNPS Professional Benefits”). Other than the Fees and any amounts
owed by the Company under the Indemnification section, Witness Fee section, and subsection (g) of the Miscellaneous section of this Agreement, Company will not be subject to any additional fees or payments to SFNPS, including, without
limitation, miscellaneous expenses, meals, charges for additional services, insurance, labor, supervision, management fees, overhead, supplies, overtime, bonuses and all other expenses relating to the Services. For the avoidance of doubt, the
previous sentence does not prohibit SFNPS from making any claims for damages under this Agreement, provided, however, that any claims do not exceed the amounts set forth under the Limitation of Liability section below. 

Taxes. All Fees hereunder are inclusive of taxes. SFNPS will pay all taxes, duties, dues and other related charges, imposed under
any present or future law, whether now or hereafter in force as a result of, or in connection with, this Agreement or the Services. 

Payment Terms. Payments to SFNPS should be made within ten (10) days of receipt of an invoice reflecting the
appropriate Fees owed by electronic transfer in accordance with the instructions set forth below or such alternative instructions (e.g. check, procurement card) as provided by SFNPS from time to time. In lieu of any right we have under this
Agreement to terminate this Agreement in accordance with the terms and conditions of this Agreement, we may suspend the provision of any Services if amounts owed are not paid in accordance with the terms of this Agreement. 

Bank Name and Address: Bank of America, 1950 N. Stemmons Freeway, Suite 5010, Dallas, TX 75207 
 Beneficiary: Tatum 
 Beneficiary Account Number: 3751 80 4507 

ABA Transit/Routing Number: 111000012 
 Please
reference Company name in the body of the payment. 
 Effective Date. This Agreement will be effective when executed by both
parties. 
 Termination. In the event that a party commits a breach of this Agreement (including any Schedule) and fails to cure
the same within ten (10) business days following delivery by the non-breaching party of written notice specifying the nature of the breach, the non-breaching party may terminate this Agreement or the applicable Schedule effective upon written
notice of such termination and Company will not have any obligation to pay any Fees upon such termination other than the Fees due and payable up to the date of termination in accordance with the terms and conditions of this Agreement. The
termination rights set forth in this section are in addition to and not in lieu of the termination rights set forth in each of the Schedules. 

  
 2 

 Replacement. If (i) you are dissatisfied with the Services provided by the SFNPS
Professional; (ii) the SFNPS Professional ceases to be a professional of SFNPS for any reason; or (iii) the SFNPS Professional becomes disabled, we will immediately remove the SFNPS Professional and will exercise commercially reasonable
efforts to furnish a suitable replacement, acceptable to Company, as soon as possible and Company will not have any obligation to pay any Fees from the date of the removal of such SFNPS Professional until a suitable replacement of the SFNPS
Professional, acceptable to Company, begins providing the Services. We do not guarantee that we will be able to find a suitable replacement. In addition, if you are dissatisfied with the Services provided by the SFNPS Professional for any reason,
and provide us with written notice thereof within five (5) business days of becoming so dissatisfied, we will not charge you Fees for up to a maximum of five (5) business days for the hours worked by the SFNPS Professional, with the exact
number of business days calculated from the date of your dissatisfaction to the date we receive written notice of the dissatisfaction, subject to the five (5) business day maximum. For purposes of this Agreement, disability will be defined by
the applicable policy of disability insurance or, in the absence of such insurance, by Tatum’s management acting in good faith. 

Hiring the SFNPS Professional Outside of a SFNPS Agreement. If, at any time during the time frame in which the SFNPS Professional is
providing Services to the Company on a full-time basis and for a period of 12-months thereafter, other than in connection with this Agreement or another SFNPS agreement, the Company or any of its subsidiaries employs such SFNPS Professional, or
engages such SFNPS Professional as an independent contract or the Company will pay SFNPS a one-time placement fee (the “Placement Fee”) in an amount equal to the following: 

 

	 	(a)	35% of the Annualized Compensation (as defined below) if the Company has paid SFNPS for up to six (6) months of the SFNPS Professional’s time;

  

	 	(b)	30% of the Annualized Compensation if the Company has paid SFNPS for at least seven (7) months but no more than twelve (12) months of the SFNPS
Professional’s time; or 

  

	 	(c)	25% of the Annualized Compensation if the Company has paid SFNPS for thirteen (13) or more months of the SFNPS Professional’s time. 

“Annualized Compensation” is defined as the first year’s annual base compensation plus (if applicable and eligible under any of the
Company’s corporate incentive and/or bonus plans) the first year’s bonus earned by the SFNPS Professional during the first twelve (12) months of service with the Company (or its subsidiary), in accordance with the terms and conditions
of any of the Company’s corporate incentive and/or bonus plans and, if required by the plan, approved by the Company’s board of directors, or any amount prorated within the twelve (12) month period if the bonus is considered actually
paid upon the passing of a calendar date (e.g. the fiscal year end or the payment date subsequent to the fiscal year end). The portion of the placement fee calculated on the base compensation shall be due within thirty (30) days of the
commencement of the SFNPS Professional’s employment or engagement with the Company (or its subsidiary) and the portion of the placement fee calculated on the earned bonus shall be due within thirty (30) days of the date the bonus is
earned. 
 Non-Solicitation. SFNPS, acting through its division, Tatum (including any successors to Tatum) agrees that it will
not, at all times during the term of this Agreement and for a period of twelve (12) months thereafter, alone or in association with others, anywhere in the world, directly or indirectly, without the prior written consent of Company, solicit,
recruit, offer employment, employ, engage as a consultant, lure or entice away or in any other manner persuade or attempt to persuade any person who is an officer, director, employee, agent, designee and/or consultant of Company or Company’s
respective subsidiaries, to leave the employ of, or reduce his or her services to Company or its respective subsidiaries unless such person has been terminated by Company or its respective subsidiaries provided that, (i) this paragraph
shall not preclude the hiring of any such person who responded to general media advertisements or search firm solicitations that were not specifically directed to the Company or any of the Company’s respective subsidiaries and who were
otherwise not solicited or recruited or offered employment in violation of this 

  
 3 

 
paragraph (ii) actions taken by an SFNPS professional (other than the SFNPS Professional or any other SFNPS professional providing or that has provided services for the Company or its
subsidiaries) shall not be deemed action taken by SFNPS unless such action was directed by (or acquiesced to) by SFNPS or otherwise taken for its direct benefit. For the avoidance of doubt and notwithstanding anything contained in this section to
the contrary, this provision will only apply to Tatum, as a division of SFNPS, its successors and those professionals providing services on behalf of Tatum, as a division of SFNPS and its successors. No other divisions, affiliates, and/or
subsidiaries of SFNPS or SFN Group, Inc. will be bound to this section of the Agreement. 
 Warranties and Disclaimers. OTHER THAN
AS EXPRESSLY SET FORTH HEREIN, WE DISCLAIM ALL REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO ANY WARRANTIES OF QUALITY, PERFORMANCE, MERCHANTABILITY, OR FITNESS OF USE OR PURPOSE. WITHOUT
LIMITING THE FOREGOING, WE MAKE NO REPRESENTATION OR WARRANTY WITH RESPECT TO THE SFNPS PROFESSIONAL OR THE SERVICES PROVIDED HEREUNDER, AND WE WILL NOT BE RESPONSIBLE FOR ANY ACTION TAKEN BY YOU IN FOLLOWING OR DECLINING TO FOLLOW ANY OF THE SFNPS
PROFESSIONAL’S ADVICE OR RECOMMENDATIONS. THE SERVICES PROVIDED BY SFNPS AND THE SFNPS PROFESSIONAL HEREUNDER ARE FOR THE SOLE BENEFIT OF THE COMPANY AND/OR ITS SUBSIDIARIES AND NOT ANY UNNAMED THIRD PARTIES. THE SERVICES WILL NOT CONSTITUTE AN
AUDIT, REVIEW, OPINION, OR COMPILATION, OR ANY OTHER TYPE OF FINANCIAL STATEMENT REPORTING OR ATTESTATION ENGAGEMENT THAT IS SUBJECT TO THE RULES OF THE AICPA OR OTHER SIMILAR STATE OR NATIONAL PROFESSIONAL BODIES OR LAWS AND WILL NOT RESULT IN AN
OPINION OR ANY FORM OF ASSURANCE ON INTERNAL CONTROLS. 
 Limitation of Liability. EXCEPT FOR LIABILITY OR CLAIMS ARISING OUT OF
(I) SFNPS’S CONFIDENTIALITY OBLIGATIONS UNDER THIS AGREEMENT AND/OR THE CONFIDENTIALITY AGREEMENT DATED AUGUST 6, 2011 BETWEEN TATUM LLC AND MOTRICITY INC; (II) THE COMPANY’S PAYMENT OF FEES AND/OR EXPENSES HEREUNDER (INCLUDING
REIMBURSEMENT OF WITNESS FEES AND RELATED EXPENSES TO THE EXTENT APPLICABLE); (III) THE NON-SOLICITATION OBLIGATIONS SET FORTH IN THIS AGREEMENT; (IV) THE COMPANY’S INDEMNIFICATION OBLIGATIONS UNDER THIS AGREEMENT; AND/OR (V) FRAUD OF
SFNPS OR THE COMPANY, EACH PARTY’S LIABILITY IN ANY AND ALL CATEGORIES AND FOR ANY AND ALL CAUSES ARISING UNDER THIS AGREEMENT, WHETHER BASED IN CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, WILL, IN THE AGGREGATE, NOT EXCEED THE
ACTUAL FEES PAID BY THE COMPANY TO SFNPS UNDER THIS AGREEMENT. IN NO EVENT WILL EITHER PARTY BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, PUNITIVE, INDIRECT OR SPECIAL DAMAGES, INCLUDING, WITHOUT LIMITATION, INTERRUPTION OR LOSS OF BUSINESS, PROFIT OR
GOODWILL (COLLECTIVELY, “EXTRAORDINARY DAMAGES”). FOR THE AVOIDANCE OF DOUBT, (I) NONE OF THE AFOREMENTIONED LIMITS OF LIABILITY WILL APPLY TO THE SFNPS PROFESSIONAL, (II) SFNPS MAY ONLY BE RESPONSIBLE FOR THE ACTIONS OR OMISSIONS OF
THE SFNPS PROFESSIONAL TO THE EXTENT A MEMBER OF SFNPS’ MANAGEMENT TEAM DIRECTED SUCH ACT OR OMISSION OR WAS OTHERWISE COMPLICIT IN SUCH ACT OR OMISSION AND SUCH ACTION WAS TAKEN OR OMITTED FOR THE DIRECT BENEFIT OF SFNPS, (III) AN ACT OF FRAUD
ON THE PART OF AN SFNPS PROFESSIONAL MAY ONLY BE DEEMED AN ACT OF FRAUD ON THE PART OF SFNPS TO THE EXTENT A MEMBER OF SFNPS’ MANAGEMENT TEAM DIRECTED SUCH ACT OR WAS OTHERWISE COMPLICIT IN SUCH ACT AND SUCH ACT WAS TAKEN FOR THE DIRECT BENEFIT
OF SFNPS, AND (IV) CLAIMS BY SFNPS SEEKING INDEMNIFICATION HEREUNDER 

  
 4 

 
FOR DIRECT DAMAGES INCURRED IN ITS PAYMENT OF EXTRAORDINARY DAMAGES TO A THIRD PARTY SHALL NOT BE DEEMED EXTRAORDINARY DAMAGES OF SFNPS, BUT INSTEAD, DIRECT DAMAGES REIMBURSABLE BY THE COMPANY
PURSUANT TO ITS INDEMNIFICATION OBLIGATIONS HEREUNDER SUBJECT TO THE TERMS AND CONDITIONS OF THIS AGREEMENT. 
 Indemnification.
COMPANY AGREES TO INDEMNIFY SFNPS TO THE FULL EXTENT PERMITTED BY LAW FOR ANY LOSSES, COSTS, DAMAGES, AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES) FROM ANY THIRD PARTIES, AS THEY ARE INCURRED, IN CONNECTION WITH ANY CAUSE OF ACTION,
SUIT, OR OTHER PROCEEDING ARISING IN CONNECTION WITH THE SFNPS PROFESSIONAL’S SERVICES TO YOU, EXCEPT TO THE EXTENT SUCH CLAIM ARISES FROM THE GROSS NEGLIGENCE, WILFUL MISCONDUCT OR FRAUD OF SFNPS OR THE SFNPS PROFESSIONAL. FOR THE AVOIDANCE OF
DOUBT, THIS PARAGRAPH DOES NOT AND SHALL NOT BE DEEMED TO PROVIDE INDEMNITY TO ANY SFNPS PROFESSIONAL. SUCH INDEMNITY, IF ANY, MUST BE SPECIFIED ON THE APPLICABLE SCHEDULE HERETO. 
 Insurance. 
  

	 	(a)	SFNPS will maintain, throughout the performance of its obligations under this Agreement with Company, (i) a policy of worker’s compensation and disability
insurance with coverage limits as may be required by the law of the states in which the Services are performed that includes broad form all-states coverage; (ii) general liability for bodily injury, death and property damage, which may arise
out of or be based upon any negligent act or omission of SFNPS or any employee, agent or subcontractor under this Agreement with coverage limits no less than one-million U.S. dollars (USD $1,000,000.00) per occurrence; (iii) automotive
liability insurance with a limit of liability at not less than one-million U.S. dollars (USD $1,000,000.00) per occurrence; and (iv) an umbrella policy of at least five-million U.S. dollars (USD $5,000,000.00). For the general liability,
automobile liability and umbrella insurance policies, SFNPS will name Company, its directors, officers and employees as additional insured and loss payee. 

  

	 	(b)	For the avoidance of doubt, unless specifically provided for in the applicable schedule, the SFNPS Professional will not be covered under any insurance policy of the
Company. 

 Change in Company Circumstances. In the event that the Company’s financial condition or
liquidity significantly deteriorates or the Company enters into discussions with restructuring or bankruptcy advisors, SFNPS and the Company may review the current fee structure and payment terms under this Agreement (including any Schedule) and
may, upon mutual agreement of the parties in writing, agree on appropriate modifications. In addition, SFNPS and the Company may discuss the need for additional SFNPS professionals with specialized skills in working with companies undergoing
significant debt and equity restructuring, and as needed, SFNPS professionals with experience helping companies seeking or operating under bankruptcy protection. The agreed upon additional professionals may be engaged under fees commensurate to the
expertise and services to be provided. In the event that SFNPS and the Company cannot agree on appropriate modifications to this Agreement (including any Schedule) or the need for additional SFNPS professionals, either party may immediately
terminate this Agreement or any Schedule upon notice to the other party and Company will not have any obligation to pay any Fees upon such termination other than the Fees due and payable up to the date of termination. 

  
 5 

 Governing Law. This Agreement will be governed by and construed in accordance with the laws of
the State of New York, without regard to conflicts of laws provisions. Furthermore, the parties hereto consent to and waive any objections to the personal jurisdiction over any action arising from this Agreement. 

Witness Fees. In the event any professional of SFNPS (including, without limitation, any SFNPS Professional) is requested or
authorized by you or is required by government regulation, subpoena, or other legal process to produce documents or appear as witnesses in connection with any action, suit or other proceeding initiated by a third party against you or by you against
a third party, you will, so long as SFNPS is not a party to the proceeding in which the information is sought, reimburse SFNPS for its professional’s time (based on customary rates) (provided that SFNPS is not already being paid for the
professional’s time under this Agreement) and expenses, as well as the fees and expenses of its counsel, incurred in responding to such requests. This provision is in addition to and not in lieu of any indemnification obligations the Company
may have under this Agreement. 
 Waiver of Jury Trial. To the fullest extent permitted by law, the parties hereto hereby waive
their respective rights to a jury trial of any claim or cause of action based upon or arising out of this Agreement or any dealings between them relating to the subject matter of this transaction. the scope of this waiver is intended to be
all-encompassing of any and all disputes that may be filed in any court and that relate to the subject matter of this Agreement, including contract claims, tort claims, breach of duty claims, and all other common law and statutory claims. The
parties hereto acknowledge that this waiver is a material inducement to enter into a business relationship that each has already relied on the waiver in entering into this Agreement and that each will continue to rely on the waiver in their related
future dealings. This waiver is irrevocable, meaning that it may not be modified either orally or in writing, and the waiver shall apply to any subsequent amendments, renewals, supplements or modifications to this Agreement or to any other documents
or agreements relating to the transactions contemplated hereby in the event of litigation, this Agreement may be filed as a written consent to a trial by the court. 
 Confidential Information and Work Product. SFNPS acknowledges that it is and will continue to be bound by the confidentiality agreement entered into on August 6, 2011 between Tatum LLC
and Motricity, Inc. (the “Confidentiality Agreement”) SFNPS further agrees that all work product and advice related to this Agreement will belong to Company. In the event of conflict between this Agreement and the Confidentiality
Agreement, the Confidentiality Agreement will prevail. Prior to commencing any Services, the SFNPS Professional will execute the confidentiality agreement provided to them by the Company. Notwithstanding the foregoing, the Company acknowledges and
agrees that SFNPS is in the business of providing financial and information technology executive and consulting services, and the Company understands that SFNPS will continue these activities. Accordingly, subject to the Confidentiality Agreement
and the express terms of this Agreement, nothing in this Agreement will preclude or limit SFNPS from providing services and/or deliverables for other clients due to the possible similarity thereof to materials which might be delivered by SFNPS or
the SFNPS Professional to the Company, provided that any such disclosure does not violate any provision of the Confidentiality Agreement or the express terms of this Agreement. In furtherance thereof, the Company hereby grants to SFNPS a
non-exclusive, perpetual, irrevocable, royalty-free right and license to use the know-how, ideas, methods, concepts, and processes developed by SFNPS (the “Ideas”) during the course of this Agreement, provided that any such Ideas are
permissible to be disclosed as provided for in the Confidentiality Agreement. 

  
 6 

 Miscellaneous. 
 (a) This Agreement together with all Schedules constitutes the entire agreement between the parties with regard to the subject matter hereof and supersedes any and all agreements, whether oral or written,
between the parties with respect to its subject matter. No amendment or modification to this Agreement will be valid unless in writing and signed by both parties. 
 (b) If any portion of this Agreement is found to be invalid or unenforceable, such provision will be deemed severable from the remainder of this Agreement and will not cause the invalidity or
unenforceability of the remainder of this Agreement, except to the extent that the severed provision deprives either party of a substantial portion of its bargain. 
 (c) Neither party will be deemed to have waived any rights or remedies accruing under this Agreement unless such waiver is in writing and signed by the party electing to waive the right or remedy. The
waiver by any party of a breach or violation of any provision of this Agreement will not operate or be construed as a waiver of any subsequent breach of such provision or any other provision of this Agreement. 

(d) Neither party will be liable for any delay or failure to perform under this Agreement (other than with respect to payment
obligations) to the extent such delay or failure is a result of an act of God, war, earthquake, civil disobedience, court order, labor dispute, or other cause beyond such party’s reasonable control. 

(e) Neither party may assign their rights or obligations under this Agreement without the express written consent of the other party;
provided, however, that SFNPS may, without the prior written consent of the Company, assign its rights and obligations hereunder to any affiliate of SFNPS with a net worth substantially similar to the net worth of Tatum, as a division of SFNPS or to
any successor to all or substantially all of SFNPS’s interest in the business to which this Agreement and such affiliate or successor will be liable for the obligations of SFNPS under this Agreement after the date of such assignment, provided
however that no such assignment shall relieve SFNPS of any liabilities prior to such assignment. Nothing in this Agreement will confer any rights upon any person or entity other than the parties hereto, the SFNPS Professional(s), who will be deemed
a third party beneficiary to this Agreement for the purposes of enforcing any obligations of the Company to (i) reimburse the SFNPS Professional for expenses in accordance with Company’s policies as in effect from time to time and subject
to the terms of this Agreement, (ii) indemnify the SFNPS Professional to the extent required in accordance with terms hereof, and/or (iii) carry directors and officers insurance covering the SFNPS Professional to the extent required in
accordance with the terms hereof, and their respective successors and permitted assigns. 
 (f) The expiration or termination of
this Agreement or any Schedule will not destroy or diminish the binding force and effect of any of the provisions of this Agreement or any Schedule that expressly, or by reasonable implication, come into or continue in effect on or after such
expiration or termination, including, without limitation, provisions relating to payment of fees and expenses (including witness fees and expenses), governing law, limitation of liability, confidentiality, non-solicitation, indemnity and
requirements to maintain directors and officers insurance to the extent provided on any Schedule hereto. 

  
 7 

 (g) You agree to reimburse SFNPS for all costs and expenses (including, without limitation,
reasonable attorneys’ fees, court costs and arbitration fees) incurred by SFNPS in enforcing collection of any amounts due under this Agreement to the extent such amounts are not disputed in good faith by the Company. We agree to reimburse you
for all costs and expenses (including, without limitation, reasonable attorneys’ fees, court costs and arbitration fees) incurred by you in enforcing collection of any amounts due under this Agreement to the extent such amounts are not disputed
in good faith by us. 
 (h) The Company acknowledges and agrees that the Services will be provided by Tatum, a division of
SFNPS, and that no other divisions, affiliates, and/or subsidiaries of SFNPS or SFN Group, Inc. will provide Services under this Agreement unless the Agreement is amended to provide otherwise. 

We appreciate the opportunity to serve you and believe this Agreement accurately reflects our mutual understanding of the terms upon
which the Services will be provided. If the foregoing is in accordance with your understanding, please countersign a copy of this Agreement and return it to my attention. 
 Sincerely, 
  

			
	Accepted and agreed:
	SFN Professional Services LLC

			
		
	By:	 	 /s/ Jim Dimitriou

			
	Name:	 	Jim Dimitriou

			
	Title:	 	Managing Partner

			
	
	Accepted and agreed:
	Motricity, Inc.

			
		
	By:	 	 /s/ Chuck Scullion

			
	Name:	 	Chuck Scullion

			
	Title:	 	Chief Strategy and Administrative Officer
	Date:	 	August 24, 2011

  
 8 

 

 
 Schedule to Interim Services Agreement 

This Schedule is entered into in connection with that certain Interim Services Agreement, dated August 24, 2011 (the
“Agreement”), by and between SFN Professional Services LLC, a subsidiary of SFN Group, Inc. with global headquarters at 2050 Spectrum Boulevard, Fort Lauderdale, FL 33309 (“SFNPS,” “we,” “us” or
“our”) and Motricity, Inc. (“Company,” “you” or “your”) and will be governed by the terms and conditions of the Agreement. 
 SFNPS Professional Name: Mr. C. Stephen Cordial. 
 Service Description or
Position: Interim Chief Financial Officer, with duties and responsibilities generally associated with the position of the Chief Financial Officer as may be assigned and removed from time to time in the sole discretion of the Audit Committee
and/or the Company’s Chief Executive Officer. 
 Company Supervisor: The Company’s Chief Executive Officer and the Audit
Committee. 
 Start Date: August 24, 2011. 
 Termination: Either party may terminate this Schedule at any time for any reason upon notice to the other party; provided, however, (i) SFNPS will provide you with at least fifteen
(15) days prior written notice prior to termination; and (ii) Company will endeavor to provide SFNPS with at least fifteen (15) days prior written notice prior to termination. SFNPS will continue to provide the services until the
termination effective date. 
 SFNPS may terminate the Schedule immediately upon written notice to the Company if: (i) the Company is
engaged in or asks the SFNPS Professional to engage in or ignore any illegal activity (the “Illegal Act”), provided that the SFNPS Professional immediately informed the Company’s Audit Committee of such Illegal Act; or (ii) the
Company fails to pay any amounts due to us under the Agreement when due. The termination rights set forth in this section are in addition to and not in lieu of the termination rights set forth in the Agreement. 

Fees: You will pay to SFNPS an all-inclusive fee of forty-three thousand and four-hundred U.S. dollars ($43,400.00 USD) per month for the SFNPS
Professional. The Fees will be prorated for the first and final fee period based on the number of days in such period. The monthly Fee includes allowance for holidays, personal, sick days and vacation time) for the SFNPS Professional consistent with
the Company’s policy as it applies to similarly situated employees of the Company. 
 Billings: SFNPS will bill for Services monthly
in arrears. As a condition to providing the Services, we require a security deposit in the amount equal to twenty-one thousand and seven-hundred U.S. dollars ($21,700.00 USD) (the “Deposit”), which is due upon execution of this Schedule.
If the Company fails to pay to SFNPS, in accordance with the terms hereof and of the Agreement, fees duly incurred hereunder after proving an accurate invoice in accordance with the terms of the Agreement, SFNPS will be entitled to apply the Deposit
to such earned but unpaid fees. In the event the Deposit falls below the amount required to pay such fees in full, the Company will pay SFNPS an additional amount equal to the shortfall. Upon the expiration or termination of the Agreement, SFNPS
will return to the Company within five (5) business days of such termination the balance of the Deposit remaining under the Agreement after application of any amounts to such fees as provided above. 

  
 9 

 

 
 SFNPS Professional Agreements: Upon simultaneous execution of this Agreement (including this Schedule) and
prior to commencing the Services, SFNPS will require, direct and ensure that the SFNPS Professional immediately execute and return to Company an unaltered and signed (i) nondisclosure, noncompetition and intellectual property protection
agreement between Company and the SFNPS Professional attached hereto as Exhibit A (the “Professional’s NDA”); and (ii) indemnification agreement attached hereto as Exhibit B (the “Professional’s Indemnification
Agreement”). 
 Solely for this engagement, the SFNPS Professional named in this Schedule will be entitled to the indemnification set forth
in the bylaws and/or articles or certificate of incorporation of the Company as currently in effect, subject to the terms of the Professional’s Indemnification Agreement. In addition, the SFNPS Professional will be covered under the
Company’s directors and officers insurance at no additional cost to SFNPS or the SFNPS Professional in accordance with the terms of such insurance policies. The Company will maintain this insurance coverage at all times while the SFNPS
Professional named in this Schedule is performing Services for the Company under this Agreement. Furthermore, the Company will maintain such insurance coverage with respect to occurrences arising during the period during which the SFNPS Professional
named in this Schedule performed Services for the Company under this Agreement for at least five (5) years following the termination or expiration of the performance of such Services or will purchase a directors’ and officers’
extended reporting period or “tail” policy to cover such SFNPS Professional for such five (5) year time period. Attached hereto as Exhibit C is a certificate of insurance evidencing that the Company is in compliance with the
requirements of this Section with a note in the Description of Operations section of the certificate indicating that the coverage is extended to the SFNPS Professional. The Company will notify SFNPS and the SFNPS Professional of any change,
modification or deletion in coverage under the Company’s directors and officers insurance policy within five (5) days prior to any such change, modification or deletion. In the event of a conflict between the terms and conditions of the
Company’s directors and officers insurance obligations contained in this Schedule and the terms and conditions of the Company’s directors and officers insurance obligations contained in the Professional’s Indemnification Agreement,
the terms and conditions of this Schedule will control. 
 In the event of a conflict between the terms and conditions of this Schedule and the
Agreement, the terms and conditions of the Agreement will control. 
  

									
	SFN Professional Services LLC	 		 	Motricity, Inc.
					
	By:	 	 /s/ James Dimitriou
	 		 	By:	 	 /s/ Chuck Scullion

	Name:	 	 James Dimitriou
	 		 	Name:	 	 Chuck Scullion

	Title:	 	 Managing Partner
	 		 	Title:	 	 Chief Strategy and Administrative Officer

	Date:	 	 08/24/2011
	 		 	Date:	 	 08/24/2011

  
 10 

 

 
 Exhibit A to the Schedule of the Interim Services Agreement 

Nondisclosure and Intellectual Property Protection Agreement 

See attached. 

 

 
 NONDISCLOSURE AND INTELLECTUAL PROPERTY PROTECTION AGREEMENT 

This Agreement (the “Agreement”) is made as of August 24, 2011 (the “Effective Date”), by
and between Motricity, Inc., a Delaware corporation with its principal place of business at 601 108th Avenue NE, Suite 900, Bellevue, Washington 98004 (“Company”) and the undersigned employee or prospective employee of Company (“Employee”). Company and Employee are each sometimes
referred to herein as a “Party” and collectively as the “Parties.” 
 In consideration of the employment of
the Employee by the Company, the disclosure of Confidential Information to Employee by the Company, and of the mutual representations, warranties, covenants and agreements set forth herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. “Confidential
Information” means any and all tangible and intangible information (whether written or otherwise recorded or oral) of the Company that (a) derives independent economic value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; or (b) that the Company
designates as confidential or that, given the nature of the information or the circumstances surrounding its disclosure, reasonably should be considered as confidential. Confidential Information includes, without limitation (i) non-public
information relating to the Company’s technology, customers, business plans, promotional and marketing activities, finances and other business affairs, and (ii) third-party information that the Company is obligated to keep confidential.
Confidential Information also includes any of the above mentioned items that are developed or created by Employee during his/her employment with Company, and all Company Intellectual Property. 

2. Notwithstanding the above, the term “Confidential Information” shall not include any information that is either: 

(a) readily discernible from publicly-available products or literature; or 

(b) approved for disclosure by prior written permission of an executive officer of Company. 

3. All Confidential Information furnished to Employee will be used solely in connection with performing Employee’s duties to the
Company, will not be discussed with other persons without Company’s express written authorization, will not be used in any way directly or indirectly except in furtherance of the Company’s business, and will be kept confidential by
Employee. 
 4. Employee may disclose Confidential Information as required to comply with binding orders of governmental
entities that have jurisdiction over it or as otherwise required by law, provided that Employee (i) gives the Company reasonable written notice to allow the Company to seek a protective order or other appropriate remedy (except to the extent

 
Employee’s compliance with the foregoing would cause it to violate a court order or other legal requirement), (ii) discloses only such information as is required by the governmental
entity or otherwise required by law, and (iii) and best efforts to obtain confidential treatment for any Confidential Information so disclosed. 
 5. If Company so requests at any time, Employee will return promptly to Company all copies, extracts, or other reproductions in whole or in part of the Confidential Information in the possession of
Employee. All Documents (defined to include not only paper documents but also data stored in computer memory, or on microfilm, microfiche, magnetic tape, disk or other medium, e-mails and any soft documents) that Employee prepares in connection with
his/her duties as an employee of the Company, and all Confidential Information that may be given to him/her in the course of his/her employment, are and shall remain the sole property of the Company. Except as necessary in the performance of
Employee’s duties, all Documents (including copies of Documents) containing Confidential Information shall be and remain in the Company’s sole possession on the Company’s premises and shall not be copied or removed from the
Company’s premises. Upon termination of his/her employment with the Company, Employee shall return to the Company all Documents, including all copies thereof, in Employee’s possession or control. 

6. Employee understands and acknowledges that Company is not and will not be making any representation or warranty, express or implied,
as to the accuracy or completeness of any furnished Confidential Information, and Company does not and will not have any liability to Employee or any other person resulting from any reliance upon or use of, or otherwise with respect to, any
furnished Confidential Information. 
 7. Employee shall notify Company immediately upon discovery of any unauthorized
disclosure of Confidential Information, use of Confidential Information other than as permitted hereunder, or any other breach of this Agreement. Employee will cooperate with Company in every reasonable way to help Company regain possession of its
Confidential Information and prevent further unauthorized use. 
 8. All Confidential Information shall remain the exclusive
property of Company. Company retains all rights and remedies afforded it under patent, copyright, trade secret, trademark, and any other applicable laws of the United States and the states thereof, or any applicable foreign countries, including,
without limitation, any laws designed to protect proprietary or confidential information. This Agreement does not grant to Employee any express or implied right to any of Company’s Intellectual Property. 

9. Intellectual Property. 
 (a) “Intellectual Property” means any invention, modification, discovery, design, development, improvement, process, software program, work of authorship, documentation, formula, data, design,
technique, know-how, trade secret, idea or other intellectual property right whatsoever or any interest therein, whether or not patentable or registrable under copyright, trademark or similar statutes or subject to analogous protection. 

  
 - 2 -

 (b) Employee agrees to promptly disclose and describe to Company all Intellectual Property
that Employee may solely or jointly conceive, create, discover, develop, or reduce to practice during the period of undersigned’s employment with Company (i) that relate at the time of conception, development or reduction to practice to
Company’s business or actual or demonstrably anticipated research or development, (ii) that were developed, in whole or in part, on Company’s time or with the use of any of Company’ s equipment, supplies, facilities or
Confidential Information, or (iii) that result from any work Employee performed for Company (“Company Intellectual Property”). All Company Intellectual Property and the benefits thereof are the exclusive property of Company and its
assigns, as works made for hire or otherwise. Employee hereby assigns to Company all rights Employee may have or may acquire in the Company Intellectual Property without further compensation and shall communicate, without cost or delay, and without
disclosing to others the same, all available information relating thereto (with all necessary plans and models) to the Company. The Employee also waives and agrees never to assert any moral rights the Employee may have in any Company Intellectual
Property, even after termination of the Employee’s work for the Company. 
 (c) Employee recognizes that Intellectual
Property relating to his/her activities while working for Company and conceived or made by him/her, alone or with others, within one year after termination of his/her employment, may have been conceived or made in significant part while employed by
Company. Accordingly, Employee agrees that such Intellectual Property rights shall be presumed to have been conceived during his/her employment with Company and are to be assigned to Company as Company Intellectual Property unless and until Employee
has established the contrary. Employee agrees to disclose promptly in writing to Company all Intellectual Property made or conceived by him/her for one (1) year after his/her employment terminates, whether or not he/she believes such
Intellectual Property is subject to this Agreement, to permit a determination by Company as to whether or not the Intellectual Property should be the property of Company. Any such information will be received in confidence by Company. 

(d) Employee agrees to perform, during and after his/her employment, all acts deemed necessary or desirable by Company to permit and
assist it, at its expense, in perfecting and enforcing the full benefits, enjoyment, rights and title throughout the world in the Company Intellectual Property. Such acts may include, but are not limited to, execution of documents and assistance or
cooperation in the registration and enforcement of applicable patents and copyrights or other legal proceedings. 
 (e) In the
event that Company is unable for any reason whatsoever to secure Employee’s signature to any lawful and necessary document required to apply for or execute any patent, copyright or other applications with respect to any Company Intellectual
Property (including improvements, renewals, extensions, continuations, divisions or continuations in part thereof), Employee hereby irrevocably appoints Company and its duly authorized officers and agents as his/her agents and attorneys-in-fact to
execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyrights or other rights thereon with the same legal force and effect as if executed by Employee. 

(f) Employee hereby acknowledges the summary of his/her legal rights under the law with respect to inventions attached as Exhibit
B hereto. 

  
 - 3 -

 10. Restrictive Covenants. 

(a) During his/her employment with the Company, Employee will not participate, directly or indirectly, as a partner, officer, director,
stockholder, consultant, employee, agent, independent contractor or otherwise, in any business that is directly or indirectly competitive with the business of the Company. This restriction includes, without limitation, a prohibition against Employee
soliciting or attempting to solicit, directly or indirectly, any person or entity who is a customer or prospect of the Company or provides goods or services to the Company for the purpose of inducing the person or entity to cancel, reduce, or
replace services with the Company or otherwise restrict their business with the Company. Notwithstanding the foregoing, Employee may hold up to five percent (5%) of the issued and outstanding publicly traded securities of any company without
being deemed in violation of this restriction. 
 (b) Employee further covenants and agrees that, for two (2) years after
the termination of Ms/her employment with the Company, by either party and regardless of reason, Employee will not solicit or attempt to solicit, directly or indirectly, any person or entity who, during Employee’s employment with the Company,
was a customer of the Company and with whom Employee served or had contact relating to the Company’s operations; and/or provided goods or services to the Company upon which the Company relied in the development of its product or services and
with whom Employee had contact relating to the Company’s operation’s. Such solicitation or attempted solicitation is prohibited under this covenant if the purpose of such solicitation or attempted solicitation is for the inducement of the
person or entity to cancel, reduce, or replace services obtained through the Company or otherwise restrict their business with the Company. 
 11. Employee shall not make, use or permit to be used any Company Property otherwise than for the benefit of the Company. The term “Company Property” shall include all notes, memoranda, reports,
lists, records, drawings, sketches, specifications, software programs, software code, data, computers, cellular telephones, pagers, credit and/or calling cards, keys, access cards, documentation or other materials of any nature and in any form,
whether written, printed, electronic or in digital format or otherwise, relating to any matter within the scope of the Company’s business or concerning any of its dealings or affairs and any other Company property in Employee’s possession,
custody or control. Employee acknowledges and agrees that all Company Property shall be and remain the sole and exclusive property of the Company. Immediately upon the termination of Employee’s employment with the Company, or at such earlier
time as the Company may request, Employee shall deliver all Company Property in Employee’s possession or control, and all copies thereof, to the Company. 
 12. Employee represents and warrants to Company that, except as disclosed on Exhibit A attached hereto, Employee’s employment by Company is not prohibited or restricted in any way by any
noncompetition, nondisclosure or other agreement. To the extent that Employee possesses any non-public information relating to any previous employer, Employee covenants that Employee will not (i) disclose any such information to Company or any
of its employees or affiliates, or (ii) use any such information in any way in the course of Employee’s employment with Company. 

  
 - 4 -

 13. Employee further acknowledges that: 

(a) irreparable injury and damage will result from unauthorized disclosure of Confidential Information and from uses of Confidential
Information other than in pursuance of the Business Purpose; 
 (b) monetary damages may not be sufficient remedy for
unauthorized disclosure of Confidential Information; and 
 (c) Company shall be entitled, without waiving any additional rights
or remedies available to it at law, in equity, or by statute, to such injunctive or equitable relief as may be deemed proper by a court of competent jurisdiction. 
 14. Employee agrees to indemnify, defend, and hold harmless Company from and against any claim, loss, liability, damage or expense, including but not limited to Company’s reasonable attorneys’
fees, arising out of or connected with any breach of this Agreement by Employee. 
 15. The Employee understands that
Company’s offer of employment is for no definite term and that the Employee’s employment is terminable at will by the Employee or Company at any time, with or without cause. Employee acknowledges and agrees that the restrictions and
obligations in this Agreement are separate from and independent of any employment agreement that may be executed between Employee and the Company and that termination of employment shall not, under any circumstances, terminate, invalidate or limit
Employee’s obligations under this Agreement. 
 16. This Agreement shall be construed in accordance with and controlled by
the laws of the State of Washington, without regard to its or any other jurisdiction’s laws governing conflicts of law. 

17. All agreements and covenants contained herein are severable, and if any of them shall be held to be invalid by a competent court,
this Agreement shall be interpreted as if such invalid agreement or covenant were not contained herein. Subject to the foregoing, all terms and conditions of this Agreement will be deemed enforceable to the fullest extent permissible under
applicable law, and, when necessary, the court is requested to reform any and all terms or conditions to give them such effect. 

18. All obligations created by this Agreement shall survive any change or termination of the Parties’ employment relationship, if
one exists or arises. 
 19. This Agreement may be assigned by Company in the event of any sale of its business as a going
concern. This Agreement will inure to the benefit of and be binding upon the Parties and their successors and assigns. 
 20.
The provisions of this Agreement constitute the entire Agreement between Employee and Company regarding the subject matter hereof, which Agreement cannot be varied except by writing signed by both parties. Notwithstanding the foregoing, in the event
that the Company and Employee has entered into a written employment agreement containing terms materially different from the terms hereof, the terms most favorable to the Company shall control unless the parties expressly refer to this section and
specify their intent to override it. 

  
 - 5 -

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

							
	MOTRICITY, INC.	  		 	EMPLOYEE
				
	By:	 	 /s/ Chuck Scullion
	  		 	 /s/ C. Stephen Cordial

	Name:	 	Chuck Scullion	  		 	Name: C. Stephen Cordial
	Title:	 	Chief Strategy and Administrative Officer	  		 	

  
 - 6 -

 EXHIBIT A 
 NONCOMPETITION AGREEMENTS 
 The undersigned Employee hereby
certifies that Employee is not bound by any noncompetition or similar agreements except those listed below, if any: 
  

					
	 None
	 	
		
	  
	 	
		
	  
	 	

 Complete executed copies of all agreements listed above have been provided to Company for review. 

 

			
	 /s/ C. Stephen Cordial

	Employee
		
	Date:	 	 08/24/2011

  
 - 7 -

 EXHIBIT B 
 NOTICE CONCERNING INVENTIONS 
 The following summary of rights is being provided to
you as part of your Nondisclosure and Intellectual Property Protection Agreement. Under Washington State law, an agreement that provides for the assignment of employee invention rights to an employer must provide the employee a summary of his/her
legal rights under the law. The highlighted points of emphasis have been provided by Motricity. If you have any questions about this summary, please contact the Human Resources Department. 
 Rights to Inventions 
 A provision in an employment agreement which provides that an
employee shall assign or offer to assign any of the employee’s rights in an invention to the employer does not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the employer was used and which
was developed entirely on the employees own time, unless: 
  

	•	 	 the invention relates directly to the business of the employer or to the employer’s actual or demonstrably anticipated research or development;
or 

  

	•	 	 the invention results from any work performed by the employee for the employer. 

Any provision which purports to apply to such an invention is to that extent against the public policy of the state and is to that extent void and
unenforceable. The remaining provisions of the agreement that are valid under the law are enforceable. 
 An employer cannot require as a
condition of employment any provision made void and unenforceable by the law. An employment agreement entered into after Sept. 1, 1979 that contains a provision requiring the employee to assign any of the employee’s rights in any invention to
the employer, requires the employer to also, at the time the agreement is made, provide written notification to the employee of the employee’s rights under the law. 
 The employee will, at the time of employment or thereafter, disclose all inventions being developed by the employee, for the purpose of determining employer or employee rights. The employer or the
employee may disclose such inventions to the Department of Employment Security, and the department will maintain a record of such disclosures for a minimum period of five years. 
 (Wash. Rev. Code §§49.44.140 and 49.44.150. as enacted by 1979 Wash. Laws ex. s. 177) 

  
 - 8 -

 

 
 Exhibit B to the Schedule of the Interim Services Agreement 

Motricity, Inc. Indemnification Agreement 
 See attached. 

 MOTRICITY, INC. 
 INDEMNIFICATION AGREEMENT 
 THIS INDEMNIFICATION AGREEMENT (this
“Agreement”) is made as of August 24, 2011, by and between Motricity, Inc., a Delaware corporation (the “Company”, which term shall include, where appropriate, any Entity (as hereinafter defined) controlled
directly or indirectly by the Company), and C. Stephen Cordial (the “Indemnitee”). 
 WHEREAS, it is essential
to the Company that it be able to retain and attract as directors and officers the most capable persons available; 
 WHEREAS,
increased corporate litigation has subjected directors and officers to litigation risks and expenses, and the limitations on the availability of directors and officers liability insurance have made it increasingly difficult for companies to attract
and retain such persons; 
 WHEREAS, the Company desires to provide Indemnitee with specific contractual assurance of
Indemnitee’s rights to full indemnification against litigation risks and expenses (regardless, among other things, of any amendment to the Company’s certificate of incorporation or revocation of any provision of the Company’s by-laws
or any change in the ownership of the Company or the composition of its Board of Directors); and 
 WHEREAS, Indemnitee is
relying upon the rights afforded under this Agreement in accepting Indemnitee’s position as a director and/or officer of the Company. 
 NOW, THEREFORE, in consideration of the promises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows: 

1. Definitions. 
 (a) “Corporate Status” describes the status of a person who is serving or has served (i) as a director of the Company, including as a member of any committee thereof, or as an
officer of the Company, (ii) in any capacity with respect to any employee benefit plan of the Company, or (iii) as a director, partner, trustee, officer, employee, or agent of any other Entity at the request of the Company. For purposes of
subsection (iii) of this Section 1(a), an officer or director of the Company who is serving or has served as a director, partner, trustee, officer, employee or agent of a Subsidiary (as defined below) shall be deemed to be serving at the
request of the Company. 
 (b) “Entity” shall mean any corporation, partnership, limited liability company,
joint venture, trust, foundation, association, organization or other legal entity. 
 (c) “Expenses” shall mean
all fees, costs and expenses incurred in connection with any Proceeding (as defined below), including, without limitation, reasonable attorneys’ fees, disbursements and retainers (including, without limitation, any such fees, disbursements and
retainers incurred by Indemnitee pursuant to Sections 7 and 10(c) of this Agreement), fees and disbursements of expert witnesses, private investigators and professional advisors (including, without limitation, accountants and investment bankers),
court costs, transcript costs, fees of experts, travel expenses, duplicating, printing and binding costs, telephone and fax transmission charges, postage, delivery services, secretarial services and other disbursements and expenses. 

  
 1 

 (d) “Indemnifiable Amounts” shall have the meaning ascribed to it in
Section 3(a) below. 
 (e) “Indemnifiable Expenses” shall have the meaning ascribed to it in
Section 3(a) below. 
 (f) “Indemnifiable Liabilities” shall have the meaning ascribed to it in
Section 3(a) below. 
 (g) “Independent Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past two years has been, retained to represent: (i) the Company or Indemnitee or any of their respective affiliates in any matter material to either such party
(other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or
Indemnitee in an action to determine Indemnitee’s rights under this Agreement. 
 (h) “Liabilities” shall
mean judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement. 
 (i)
“Proceeding” shall mean any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation, administrative hearing, appeal, or any other proceeding, whether civil, criminal,
administrative, arbitrative or investigative, whether formal or informal, including a proceeding initiated by Indemnitee pursuant to Section 10 of this Agreement to enforce Indemnitee’s rights hereunder. 

(j) “Subsidiary” shall mean any corporation, partnership, limited liability company, joint venture, trust or other
Entity of which the Company owns (either directly or through or together with another Subsidiary of the Company) either (i) a general partner, managing member or other similar interest or (ii) (A) 50% or more of the voting power of
the voting capital equity interests of such corporation, partnership, limited liability company, joint venture or other Entity, or (B) 50% or more of the outstanding voting capital stock or other voting equity interests of such corporation,
partnership, limited liability company, joint venture or other Entity. 
 2. Services of Indemnitee. In consideration of
the Company’s covenants and commitments hereunder, Indemnitee agrees to serve or continue to serve as a director and/or officer of the Company. However, this Agreement shall not impose any obligation on Indemnitee or the Company to continue
Indemnitee’s service to the Company beyond any period otherwise required by law or by other agreements or commitments of the parties, if any. 

  
 2 

 3. Agreement to Indemnify. The Company agrees to indemnify Indemnitee as follows:

 (a) Subject to the exceptions contained in Section 4(a) below, if Indemnitee was or is a party or is threatened to be
made a party to any Proceeding (other than an action by or in the right of the Company) by reason of Indemnitee’s Corporate Status, Indemnitee shall be indemnified by the Company against all Expenses and Liabilities incurred or paid by
Indemnitee in connection with such Proceeding (referred to herein as “Indemnifiable Expenses” and “Indemnifiable Liabilities,” respectively, and collectively as “Indemnifiable Amounts”). 

(b) Subject to the exceptions contained in Section 4(b) below, if Indemnitee was or is a party or is threatened to be made a party
to any Proceeding by or in the right of the Company to procure a judgment in its favor by reason of Indemnitee’s Corporate Status, Indemnitee shall be indemnified by the Company against all Indemnifiable Expenses. 

4. Exceptions to Indemnification. Indemnitee shall be entitled to indemnification under Sections 3(a) and 3(b) above in all
circumstances other than the following: 
 (a) If indemnification is requested under Section 3(a) and it has been
adjudicated finally by a court of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, Indemnitee failed to act (i) in good faith and (ii) in a manner
Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful, Indemnitee
shall not be entitled to payment of Indemnifiable Amounts hereunder. 
 (b) If indemnification is requested under
Section 3(b) and 
 (i) it has been adjudicated finally by a court of competent jurisdiction that, in connection with the
subject of the Proceeding out of which the claim for indemnification has arisen, Indemnitee failed to act (A) in good faith and (B) in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the
Company, Indemnitee shall not be entitled to payment of Indemnifiable Expenses hereunder; or 
 (ii) it has been adjudicated
finally by a court of competent jurisdiction that Indemnitee is liable to the Company with respect to any claim, issue or matter involved in the Proceeding out of which the claim for indemnification has arisen, including, without limitation, a claim
that Indemnitee received an improper personal benefit, no Indemnifiable Expenses shall be paid with respect to such claim, issue or matter unless the court of law or another court (or regulatory authority or arbitral body) in which such Proceeding
was brought shall determine upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such Indemnifiable Expenses which such court
shall deem proper. 
 5. Notification and Defense of Proceeding. 

(a) Notice. Promptly after receipt by Indemnitee of written notice of the commencement of any Proceeding for which Indemnitee is
entitled to payment under Section 3 

  
 3 

 
of this Agreement, Indemnitee will, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof; but the omission so to
notify the Company will not relieve it from any liability that it may have to Indemnitee, except as provided in Section 5(c). The Company shall pay such Indemnifiable Amounts to Indemnitee within ten (10) business days following receipt of
the request. 
 (b) Defense. With respect to any Proceeding as to which Indemnitee notifies the Company of the
commencement thereof, the Company will be entitled to participate in the Proceeding at its own expense and except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof with counsel reasonably
satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company will not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently incurred by
Indemnitee under this Agreement with respect to such defense except as otherwise provided below. Indemnitee shall have the right to employ his own counsel in such Proceeding, but all Expenses related thereto incurred after notice from the Company of
its assumption of the defense shall be at Indemnitee’s expense unless: (i) the employment of counsel by Indemnitee has been authorized by the Company, (ii) counsel to Indemnitee has reasonably determined that there may be a conflict
of interest between Indemnitee and the Company in the defense of the Proceeding and such determination has been affirmed by any then existing Independent Counsel, or (iii) the Company shall not in fact have employed counsel to assume the
defense of such Proceeding, in each of which case all Expenses of the Proceeding shall be borne by the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company or as to which
Indemnitee shall have made the determination provided for in (ii) above. 
 (c) Settlement of Claims. The Company
shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without the Company’s written consent. The Company shall not settle any Proceeding in any manner that would impose
any penalty or limitation on Indemnitee without Indemnitee’s written consent. Neither the Company nor Indemnitee will unreasonably withhold their consent to any proposed settlement. The Company shall not be liable to indemnify Indemnitee under
this Agreement with regard to any judicial award if the Company was not given a reasonable and timely opportunity, at its expense, to participate in the defense of such action; the Company’s liability hereunder shall not be excused if
participation in the Proceeding by the Company was barred by this Agreement or to the extent that the Company’s lack of such opportunity did not prejudice the Company. 
 6. Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that
Indemnitee is, by reason of Indemnitee’s Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, Indemnitee shall be indemnified against all Expenses reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company
shall indemnify Indemnitee against all Expenses reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Agreement, the termination of any claim,
issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 

  
 4 

 7. Effect of Certain Resolutions. Neither the settlement nor termination of any
Proceeding nor the failure of the Company to award indemnification or to determine that indemnification is payable shall create an adverse presumption that Indemnitee is not entitled to indemnification hereunder. In addition, the termination of any
proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company or, with respect to any criminal action or proceeding, had reasonable cause to believe that Indemnitee’s action was unlawful. 
 8. Agreement to Advance Expenses; Conditions. The Company shall pay to Indemnitee all Indemnifiable Expenses incurred by Indemnitee in connection with any Proceeding, including a Proceeding by or
in the right of the Company, in advance of the final disposition of such Proceeding, as the same are incurred. To the extent required by Delaware corporate law, Indemnitee hereby undertakes to repay the amount of Indemnifiable Expenses paid to
Indemnitee if it is finally determined by a court of competent jurisdiction that Indemnitee is not entitled under this Agreement to indemnification with respect to such Expenses. This undertaking is an unlimited and unsecured general obligation of
Indemnitee and no interest shall be charged thereon. 
 9. Procedure for Advance Payment of Expenses. Indemnitee shall
submit to the Company a written request specifying the Indemnifiable Expenses for which Indemnitee seeks an advancement under Section 8 of this Agreement, together with documentation evidencing that Indemnitee has incurred such Indemnifiable
Expenses. Payment of Indemnifiable Expenses under Section 8 shall be made no later than ten (10) business days after the Company’s receipt of such request. 
 10. Remedies of Indemnitee. 
 (a) Right to Petition Court. In the
event that Indemnitee makes a request for payment of Indemnifiable Amounts under Sections 3 and 5 above or a request for an advancement of Indemnifiable Expenses under Sections 8 and 9 above and the Company fails to make such payment or advancement
in a timely manner pursuant to the terms of this Agreement, Indemnitee may petition a court of law to enforce the Company’s obligations under this Agreement. 
 (b) Burden of Proof. In any judicial proceeding brought under Section 10(a) above, the Company shall have the burden of proving that Indemnitee is not entitled to payment of Indemnifiable
Amounts hereunder. 
 (c) Expenses. The Company agrees to reimburse Indemnitee in full for any Expenses incurred by
Indemnitee in connection with investigating, preparing for, litigating, defending or settling any action brought by Indemnitee under Section 10(a) above, or in connection with any claim or counterclaim brought by the Company in connection
therewith. 

  
 5 

 (d) Validity of Agreement. The Company shall be precluded from asserting in any
Proceeding, including, without limitation, an action under Section 10(a) above, that the provisions of this Agreement are not valid, binding and enforceable or that there is insufficient consideration for this Agreement and shall stipulate in
court that the Company is bound by all the provisions of this Agreement. 
 (e) Failure to Act Not a Defense. The failure
of the Company (including its Board of Directors or any committee thereof, independent legal counsel or stockholders) to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the advancement of Indemnifiable
Expenses under this Agreement shall not be a defense in any action brought under Section 10(a) above, and shall not create a presumption that such payment or advancement is not permissible. 

11. Representations and Warranties of the Company. The Company hereby represents and warrants to Indemnitee as follows:

 (a) Authority. The Company has all necessary power and authority to enter into, and be bound by the terms of, this
Agreement, and the execution, delivery and performance of the undertakings contemplated by this Agreement have been duly authorized by the Company. 
 (b) Enforceability. This Agreement, when executed and delivered by the Company in accordance with the provisions hereof, shall be a legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the enforcement of creditors’ rights generally.

 12. Insurance. The Company shall use its reasonable efforts to maintain requisite directors and officers indemnity
insurance coverage in effect at all times (subject to appropriate cost considerations) and the Company’s certificate of incorporation and bylaws shall at all times provide for indemnification and exculpation of directors and officers to the
fullest extent permitted under applicable law. In all policies of director and officer liability insurance, Indemnitee shall be named as an insured and Indemnitee shall be covered by such policy or policies in accordance with its or their terms to
the maximum extent of coverage available for any officer, director, employee, agent or fiduciary under such policy or policies. The Company shall hereafter take all necessary or desirable actions to cause such insurers to pay, on behalf of the
Indemnitee, all Indemnifiable Amounts in accordance with the terms of such policies; provided that nothing in this Section 12 shall affect the Company’s obligations under this Agreement or the Company’s obligations to
comply with the provisions of this Agreement in a timely manner as provided. 
 13. Contract Rights Not Exclusive. The
rights to payment of Indemnifiable Amounts and advancement of Indemnifiable Expenses provided by this Agreement shall be in addition to, but not exclusive of, any other rights which Indemnitee may have at any time under applicable law, the
Company’s by-laws or certificate of incorporation, or any other agreement, vote of stockholders or directors (or a committee of directors), or otherwise, both as to action in Indemnitee’s official capacity and as to action in any other
capacity as a result of Indemnitee’s serving as a director of the Company. 

  
 6 

 14. Successors. This Agreement shall be (a) binding upon all successors and
assigns of the Company (including any transferee of all or a substantial portion of the business, stock and/or assets of the Company and any direct or indirect successor by merger or consolidation or otherwise by operation of law) and
(b) binding on and shall inure to the benefit of the heirs, personal representatives, executors and administrators of Indemnitee. This Agreement shall continue for the benefit of Indemnitee and such heirs, personal representatives, executors
and administrators after Indemnitee has ceased to have Corporate Status. 
 15. Subrogation. In the event of any payment
of Indemnifiable Amounts under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of contribution or recovery of Indemnitee against other persons, and Indemnitee shall take, at the request and expense
of the Company, all reasonable action necessary to secure such subrogation rights, including the execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 

16. Change in Law. To the extent that a change in Delaware law (whether by statute or judicial decision) shall permit broader
indemnification or advancement of expenses than is provided under the terms of the certificate of incorporation and/or by-laws of the Company and this Agreement, Indemnitee shall be entitled to such broader indemnification and advancements, and this
Agreement shall be deemed to be automatically amended to such extent. 
 17. Severability. Whenever possible, each
provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction to be
illegal, invalid or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application to the minimum extent necessary to make such provision or clause valid, legal and enforceable, and the remaining
provisions and clauses of this Agreement shall remain fully enforceable and binding on the parties. 
 18. Indemnitee as
Plaintiff. Except as provided in Section 10(c) of this Agreement and in the next sentence, Indemnitee shall not be entitled to payment of Indemnifiable Amounts or advancement of Indemnifiable Expenses with respect to any Proceeding brought
by Indemnitee against the Company, any Entity which it controls, any director or officer thereof, or any third party, unless such Company has consented to the initiation of such Proceeding. This Section shall not apply to counterclaims or
affirmative defenses asserted by Indemnitee in an action brought against Indemnitee. 
 19. Modifications and Waiver.
Except as provided in Section 16 above with respect to changes in Delaware law which broaden the right of Indemnitee to be indemnified by the Company, no supplement, modification or amendment of this Agreement shall be binding unless executed
in writing by each of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement (whether or not similar), nor shall such waiver constitute a
continuing waiver. 
 20. General Notices. All notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given (a) when delivered by hand, (b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed by certified 

  
 7 

 
or registered mail with postage prepaid, on the third business day after the date on which it is so mailed: 
  

			
	(i)	 	If to Indemnitee, to:
		
		 	Steve Cordial
		 	915 30th Avenue South
		 	Seattle, WA 98144
		
	(ii)	 	If to the Company, to:
		
		 	601 108th Avenue, NE, Suite 900
		 	Bellevue, WA 98004
		 	Attn: Secretary
		 	Phone: (425) 957-6200
		 	Fax: (425) 957- 6201

 or to such other address as may have been furnished in the same manner by any party to the others. 

21. Governing Law. This Agreement shall be governed by and construed and enforced under the laws of the State of Delaware without
giving effect to the provisions thereof relating to conflicts of law. 
 * * * * * 

  
 8 

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

			
	MOTRICITY, INC.
		
	By:	 	 /s/ Chuck Scullion

		 	Name: Chuck Scullion
		 	Title: Chief Strategy and
		 	Administrative Officer
	
	INDEMNITEE
	
	 /s/ C. Stephen Cordial

	C. Stephen Cordial

 SIGNATURE PAGE TO INDEMNIFICATION AGREEMENT 

 

 
 Exhibit C to the Schedule of the Interim Services Agreement 

Certificate of Directors and Officers Insurance

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