Document:

ex_181397.htm

 

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

(David A. King)

 

This Employment Agreement (“Agreement”) is entered into as of March 23, 2020 and effective as of March 30, 2020 by and between Art’s-Way Manufacturing Co., Inc. (the “Company”), and David A. King (“Employee”).

 

RECITALS

 

	 	
			A.

				
			Employee desires to be employed by the Company as its President and Chief Executive Officer and the Company desires to employ Employee as its President and Chief Executive Officer under the terms and conditions of this Agreement.

			

 

	 	
			B.

				
			Employee recognizes, agrees and understands that execution of this Agreement is an express condition of employment with the Company as its President and Chief Executive Officer under the terms of this Agreement.

			

 

NOW, THEREFORE, in consideration of the Company employing Employee as its President and Chief Executive Officer under this Agreement and/or other benefits now or hereafter paid or made available to Employee by the Company, Employee and the Company agree as follows:

 

ARTICLE 1

EMPLOYMENT AND TERMS OF AGREEMENT

 

	 	
			1.

				
			     Employment. From the effective date set forth above until the date on which the Company’s current President and Chief Executive Officer, Carrie Gunnerson, resigns, the Company hereby employs Employee and Employee hereby accepts employment as the Executive Vice President. Starting on the date Ms. Gunnerson resigns, currently expected to occur in the third quarter of fiscal year 2020, the Company hereby employs Employee and Employee hereby accepts employment as the President and Chief Executive Officer of the Company. This is a full-time position.

			

 

	 	
			2.

				
			     Term. This Agreement is effective, and Employee’s employment hereunder shall commence, as of the effective date set forth above and will continue until terminated pursuant to Section 3.1 of this Agreement.

			

 

	 	
			3.

				
			     Duties.

			

 

	 	
			(a)

				
			Employee agrees, during his employment with the Company, to devote his full business and professional time and best efforts to the business of the Company, including, without limitation, the performance of those duties and responsibilities reasonably and customarily associated with his position; provided, however, that Employee’s duties and responsibilities shall be subject to determination by the Board of Directors of the Company (the “Board”).

			

 

	 	
			(b)

				
			Employee shall report to, and at all times shall be subject to the direction of the Board.

			

 

	 	
			(c)

				
			Employee shall, at all times during his employment with the Company, comply with the Company’s reasonable standards, regulations and policies as determined or set forth by the Company from time to time.

			

 

4.     Outside Activities. During his employment with the Company, Employee shall not engage in any other business activity that would conflict or interfere with his ability to perform his duties under this Agreement.

 

1

 

 

ARTICLE 2 

COMPENSATION AND BENEFITS

 

1.     Base Salary. Employee’s initial annual base salary under this Agreement shall be $265,000.00 subject to required and authorized deductions and withholdings. This base salary is subject to upward or downward adjustment at the recommendation of the Compensation Committee of the Board, with the approval of the Board. This base salary shall be reviewed at least annually. The Company shall pay the base salary to Employee in accordance with its standard payroll practices. Employee’s base salary may be subject to review and adjustment by the Company from time to time.

 

2.     Incentive Pay. Employee will be eligible to receive annual cash incentive compensation of up to 75% of his base salary based on the Company’s achievement of annual financial objectives and to receive annual equity awards, each as granted by the Board (or a committee authorized by the Board). For the 2020 fiscal year, the annual cash incentive compensation calls for Employee to earn approximately 30% of annual base salary (pro-rated to reflect Employee’s start date with the Company) if the Company meets its budgeted plan.

 

3.     Equity Grant. As consideration for Employee’s acceptance of the terms and conditions of this Agreement, including the covenants in Article 5, the Company shall grant to Employee upon the effective date of this Agreement a restricted stock grant for 80,000 shares with the risks of forfeiture for 20,000 shares lapsing immediately and the risks of forfeiture for the remaining 60,000 shares lapsing in increments of 20,000 shares on each of the first three anniversaries of the grant date.

 

4.     Other Benefit Plans. Employee shall be eligible to participate in any and all other employee benefit plans, health plans, or arrangements, if any, made available from time to time by the Company to its employees to the extent Employee meets the eligibility requirements to receive such benefits. Nothing in this Agreement is intended to or shall in any way restrict the Company’s right to, or not to, offer, amend, modify or terminate any of its benefits or benefit plans during the terms of Employee’s employment.

 

5.     Vacation & Sick Days. Employee shall be eligible to accrue vacation for up to 20 work days per year, accruing equally during the year as of each pay period. In accordance with current policies, Employee may accrue and carry forward up to 80 hours of vacation time, which upon termination from the Company would be paid for pro rata for the then-current annual base salary. In addition, in accordance with current policies, Employee may take sick leave in accordance with current Company policy. The Company reserves the right to modify and alter its vacation and sick day policies/personal days, and Employee’s benefits thereunder, in its sole discretion; provided, however, Employee shall have the right to use then-existing accrued and carried vacation time up to the current maximum of 80 hours.

 

6.     Expense Reimbursement. During the term of this Agreement, Employee shall be entitled to reimbursement of all ordinary and necessary expenses incurred by Employee for the Company, in accordance with the Company’s policies and practices with regard to documentation and payment of such expenses. Additionally, Employee shall be entitled to reimbursement of up to $10,000 in expenses incurred by Employee in connection with Employee’s relocation to the Company’s headquarters, in accordance with the Company’s policies and practices with regard to documentation and payment of such expenses.

 

7.     Company Vehicle. The Company shall furnish a vehicle (with a value not to exceed $50,000) for Employee for use in performing his role on behalf of the Company. The Company will pay all expenses related to its maintenance and use.

 

2

 

 

ARTICLE 3

TERMINATION OF EMPLOYMENT

 

1.     Termination. Employee’s employment with the Company may be terminated at any time upon occurrence of any of the following:

 

	 	
			(a)

				
			By mutual written agreement of the Company and Employee.

			

 

	 	
			(b)

				
			Immediately upon the death or Disability of Employee. “Disability” means Employee is entitled to receive long-term disability benefits under the Company's long-term disability plan, or if there is no such plan, the Executive's inability, due to physical or mental incapacity, to perform the essential functions of his job, with or without reasonable accommodation, for 120 days out of any 365-day period.

			

 

	 	
			(c)

				
			Immediately by the Company for “Cause,” which means the following:

			

 

	 	
			(i)

				
			Failure of Employee to (A) faithfully, diligently or competently perform the material duties, requirements and responsibilities of his employment as contemplated by this Agreement or as reasonably assigned by the Board; or (B) Employee’s material breach of any provision of this Agreement or of the policies, regulations and directives of the Company as in effect from time to time;

			

 

	 	
			(ii)

				
			Any negligent or intentional act or omission on the part of Employee that is materially injurious (or would be reasonably likely to be materially injurious) to the reputation or business of the Company, including, but not limited to, professional or personal conduct of Employee which is dishonest, disloyal, or inconsistent with federal and state laws respecting harassment of, or discrimination against, one or more of the Company’s employees; or

			

 

	 	
			(iii)

				
			Commission by or conviction of Employee of, or a guilty or nolo contendere plea by Employee with respect to, any crime punishable as a felony.

			

 

	 	
			(d)

				
			Upon written notice by Employee for any reason, effective immediately, unless the Company, in its sole discretion, elects that Employee continue to provide services hereunder for up to 16 weeks from the date of such written notice, in which case the effective date shall be the date through which Employee provides services hereunder. Employee will use best efforts to provide 16 weeks written notice of Employee’s intent to terminate employment under this subsection 3.1(d) and agrees to provide services for up to 16 weeks from the date of such notice if requested by the Company.

			

 

	 	
			(e)

				
			Upon written notice by the Company for any reason, effective upon the date specified therein, which may, at the Company’s sole discretion, be a date that is up to 16 weeks from the date of such written notice.

			

 

	 	
			2.

				
			Compensation Upon Termination of Employee’s Employment.

			

 

	 	
			(a)

				
			In the event that Employee’s employment with the Company terminates, the following provisions shall govern as applicable:

			

 

	 	
			(i)

				
			If termination occurs pursuant to subsection 3.1(a), the agreement of the parties shall control.

			

 

	 	
			(ii)

				
			If termination occurs pursuant to subsection 3.1(b), all benefits and compensation shall terminate as of the date of Employee’s death.

			

 

	 	
			(iii)

				
			If termination occurs pursuant to subsection 3.1(c), all benefits and compensation shall terminate as of the termination date.

			

 

3

 

 

	 	
			(iv)

				
			If termination occurs pursuant to subsection 3.1(d), all benefits and compensation shall terminate as of the date Employee ceases to provide services.

			

 

	 	
			(v)

				
			If termination occurs pursuant to subsection 3.1(e), all benefits and compensation shall terminate as of the later of: (A) the date Employee ceases to provide services; or (B) the date that is 12 weeks from the date of the written notice provided by the Company, provided that any payments under this subsection 3.2(a)(v)(B) shall be contingent upon Employee’s compliance through this period with his obligations under Section 3.3 and Articles 4 - 6 and Employee’s execution, delivery, compliance with, and non-rescission of a full and final release of any and all claims in favor of the Company and any related entities, and all such entities’ officers, directors, shareholders, and employees, which release shall also affirm Employee’s compliance with his obligations under Section 3.3 and Articles 4 - 6. If payments are made to Employee under this subsection 3.2(a)(v)(B), the first such payment shall be made on the next regularly scheduled payroll date and provided that all payments due under this subsection 3.2(a)(v)(B) shall be made within 13 weeks of the date of the written notice provided by the Company.

			

 

	 	
			(b)

				
			In addition to the consideration set forth in Section 2.3, the parties acknowledge that the Company’s agreement to provide separation payments in accordance with the terms of this Section 3.2 constitutes consideration for Employee’s acceptance of the terms and conditions of this Agreement, including the covenants in Article 5.

			

 

	 	
			(c)

				
			Notwithstanding anything in this Agreement to the contrary, if any of the payments described in this Section 3.2 are subject to the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Code Section 409A”) and the Company determines that Employee is a “specified employee” as defined in Code Section 409A as of the date of Employee’s termination of employment, such payments shall not be paid or commence earlier than the first day of the seventh month following the date of Employee’s termination of employment.

			

 

3.     Return of Property. Immediately upon termination (or at such earlier time as requested by the Company or its designees), Employee shall deliver to the Company all of its property, including but not limited to the Company vehicle, all work in progress, research data, equipment, originals and copies of documents and software, client information and lists, financial information, and all other material in his possession or control that belongs to the Company or its clients or contains Confidential Information, as defined in Article 4.

 

ARTICLE 4

PROTECTION OF CONFIDENTIAL INFORMATION

 

	 	
			1.

				
			     Confidential Information. “Confidential Information” shall mean any information not generally known or readily ascertainable by the Company’s competitors or the general public. Confidential Information includes, but is not limited to, use of or customization to computer, software, and/or internet applications; data of any type that is created by Employee, which is provided, or to which access is provided, in the course of Employee’s employment by the Company; data or conclusions or opinions formed by Employee in the course of employment; manuals; trade secrets; methods, procedures or techniques pertaining to the business of the Company; specifications; systems; price lists; marketing plans; sales or service analyses; financial information; client names, contact information, requirements, purchase history or other information; supplier names or other information; employee names or other information; research and development data; diagrams; drawings; videotapes, audiotapes, or computerized media used as training regimens; and notes, memoranda, notebooks, and records or documents that are created, handled, seen, or used by Employee in the course of employment. Confidential Information does not include information that Employee can demonstrate by reliable, corroborated documentary evidence (1) is generally available to the public or (2) became generally available to the public through no act or failure to act by Employee.

			

 

4

 

 

	 	
			2.

				
			     Confidentiality Restrictions. Employee agrees at all times to use all reasonable means to keep Confidential Information secret and confidential. Employee shall not at any time (including during and after termination of his employment with the Company) use, disclose, duplicate, record, or in any other manner reproduce in whole or in part any Confidential Information, except as necessary for the performance of Employee’s duties on behalf of the Company. Employee shall not at any time provide services to any person or entity if providing such services would require or likely result in his using or disclosing Confidential Information. Upon termination of Employee’s employment with the Company, or upon the Company’s earlier request, Employee shall immediately return to the Company all originals and copies of Confidential Information and other Company materials and property in Employee’s possession. Employee acknowledges that use or disclosure of any of the Company’s confidential or proprietary information in violation of this Agreement would have a materially detrimental effect upon the Company, the monetary loss from which would be difficult, if not impossible, to measure.

			

 

ARTICLE 5 

COVENANT NOT TO COMPETE

 

1.     Noncompetition. During Employee’s employment with the Company and for a period of one year following the termination of his employment for any reason, whether voluntary or involuntary, Employee agrees that he will not, anywhere in the United States (which Employee acknowledges to be the Company’s trade area), directly or indirectly, on behalf of himself or another individual or entity, own, manage, operate, control, be employed by, consult for, participate in, or provide services to any business, entity or person that is in competition with the Company or designs, manufactures, sells or provides products or services that are the same as or similar to, or compete with, products or services offered by the Company at the time.

 

2.     Nonsolicitation of Employees. During Employee’s employment with the Company and for a period of one year following the termination of his employment for any reason, whether voluntary or involuntary, Employee agrees that he will not, directly or indirectly, on behalf of himself or another individual or entity, solicit or hire for employment or any other arrangement for compensation to perform services, any employee of the Company. For purposes of this Section 5.2, an “employee” means any individual who is then employed by the Company or has been employed by the Company at any time within the six-month period prior to Employee’s separation from employment.

 

3.     Nonsolicitation of Clients. During Employee’s employment with the Company and for a period of one year following the termination of his employment for any reason, whether voluntary or involuntary, Employee agrees that he will not, directly or indirectly, on behalf of himself or another individual or entity, solicit or provide products or services that compete with the Company to any of the Company’s clients. For purposes of this Section 5.3, a “client” means any individual or entity that is then a client of the Company or has been a client of the Company at any time within the twelve-month period prior to Employee’s separation from employment.

 

4.     Non-Disparagement. Employee agrees that Employee will not at any time make, publish, or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Company or its businesses, or any of its employees, officers, and existing and prospective customers, suppliers, investors, and other associated third parties. This Section does not, in any way, restrict or impede Employee from exercising protected rights to the extent that such rights cannot be waived by agreement, including but not limited to Employee's Section 7 rights under the NLRA or rights to communicate with securities regulators/any other administrative or regulatory agency to report suspected unlawful conduct or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation, or order. Employee shall promptly provide written notice of any such order to the Chairman of the Board.

 

5

 

 

5.     Understandings. Employee hereby acknowledges and agrees that the Company informed him that the restrictions contained in this Article 5 would be required as part of the terms and conditions of his employment under this Agreement; that he signed and returned this Agreement to the Company prior to commencing employment under the terms of this Agreement; that he has carefully considered the restrictions contained in this Agreement and that they are reasonable; and that the restrictions in this Agreement will not unduly restrict him in securing other employment in the event of a termination from the Company.

 

ARTICLE 6 

INVENTIONS

 

	 	
			1.

				
			     Invention. For purposes of this Agreement, the term “Invention” means ideas, discoveries, and improvements, whether or not shown or described in writing or reduced to practice, and whether patentable or not, relating to any of the Company’s present or future sales, research, or other business activities, or reasonably foreseeable business interests of the Company.

			

 

	 	
			2.

				
			     Disclosure. Employee shall promptly and fully disclose to the Company, and will hold in trust for the Company’s sole right and benefit, any Invention which Employee, during the period of his employment, makes, conceives, or reduces to practice, or causes to be made, conceived, or reduced to practice, either alone or in conjunction with others, that:

			

 

	 	
			(a)

				
			Relates to any subject matter pertaining to Employee’s employment;

			

 

	 	
			(b)

				
			Relates to or is directly or indirectly connected with the business, products, projects, or Confidential Information of the Company; or

			

 

	 	
			(c)

				
			Involves the use of any time, material, or facility of the Company.

			

 

3.     Assignment of Ownership. Employee hereby assigns to the Company all of Employee’s right, title, and interest in and to all such Inventions described in Section 6.2 and, upon request by the Company, Employee shall execute, verify, and deliver to the Company such documents, including, without limitation, assignments and applications for Letters Patent, and shall perform such other acts, including, without limitation, appearing as a witness in any action brought in connection with this Agreement that is necessary to enable the Company to obtain the sole right, title, and benefit to all such Inventions.

 

4.     Excluded Inventions. It is further agreed, and Employee is hereby so notified, that Section 6.3 does not apply to any invention for which no equipment, supplies, facility, or Confidential Information of the Company was used; which was developed entirely on Employee’s own time; and (a) which does not relate either to the Company’s businesses or actual or demonstrably anticipated research or development, or (b) which does not result from any work performed by Employee for the Company.

 

5.     Prior Inventions. Attached to this Agreement and initialed by both parties is a list of all of the Inventions, if any, in which Employee possesses any right, title, or interest prior to commencement of his employment with the Company, which are not subject to the terms of this Agreement.

 

6

 

 

ARTICLE 7

MISCELLANEOUS PROVISIONS

 

1.     Survival and Remedies. The parties agree that the restrictions contained in Articles 4 - 6 shall survive the termination of this Agreement and Employee’s employment with the Company and shall apply no matter how Employee’s employment terminates and regardless of whether his termination is voluntary or involuntary. The parties further acknowledge and agree that, if Employee breaches or threatens to breach the terms of Articles 4 - 6, the Company shall be entitled as a matter of right to injunctive relief, in addition to any other remedies available at law or equity. In the event any litigation, mediation or arbitration or other process that is instituted by any party in order to interpret or enforce any term or condition of this Agreement, including the payment of money, injunctive relief, and the matter is addressed or the money is collected, and the services of an attorney or attorneys are utilized for the same, the prevailing party will be entitled to recover from the losing party all attorney fees and costs, including court costs and fees and costs incurred through any appeal, collection or enforcement, incurred by the prevailing party.

 

2.     Notification. Employee authorizes the Company to notify third parties (including, but not limited to, Employee’s actual or potential future employers and the Company’s clients and employees) of the provisions of Articles 4 - 6, those provisions necessary for the enforcement of such articles, and Employee’s obligations hereunder.

 

3.     Governing Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of Iowa, without reference to its conflict of law provisions. Each of the parties agrees that any dispute between the parties will be resolved only in the courts of the State of Iowa or the United States District Court for the Northern District of Iowa and the appellate courts having jurisdiction of appeals in such courts.

 

4.     Entire Agreement. This Agreement constitutes the entire understanding of the Company and Employee and supersedes all prior agreements, understandings, and negotiations between the parties, whether oral or written. No modification, supplement, or amendment of any provision hereof shall be valid unless made in writing and signed by the parties.

 

5.     Successors and Assigns. This Agreement may be assigned by the Company to its successors and assigns. The services to be performed by Employee are personal and are not assignable.

 

6.     No Conflicting Obligations. Employee represents and warrants to the Company that he is not under, or bound to be under in the future, any obligation to any person or entity that is or would be inconsistent or in conflict with this Agreement or would prevent, limit, or impair in any way the performance by him of his obligations hereunder, including but not limited to any duties owed to any former employers not to compete or use or disclose confidential information. Employee represents and agrees that he will not disclose to the Company or use on behalf of the Company any confidential information belonging to a third party.

 

7.     Waivers. The failure of a party to require the performance or satisfaction of any term or obligation of this Agreement, or the waiver by a party of any breach of this Agreement, shall not prevent subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

8.     Severability. In the event that any provision hereof is held invalid or unenforceable by a court of competent jurisdiction, the Company and Employee agree that that part should be modified by the court to make it enforceable to the maximum extent possible. If the part cannot be modified, then that part may be severed, and the other parts of this Agreement shall remain enforceable.

 

7

 

 

9.     Counterparts. More than one counterpart of this Agreement may be executed by the parties hereto, and each fully executed counterpart shall be deemed an original.

 

[Signature Page Follows]

 

8

 

 

With the intention of being bound hereby, the parties have executed this Agreement as of the date set forth above.

 

EMPLOYEE

 

 

/s/ David A. King                          03-22-2020

David A. King

 

 

 

ART’S-WAY MANUFACTURING CO., INC.

 

 

/s/ Marc McConnell                                        

Marc McConnell

Chairman of the Board of Directors

 

9Exhibit 4.1

 

RIGHTS AGREEMENT

 

dated as of April 14, 2020

 

between

 

ProPetro
Holding Corp.,

 

as the Company,

 

and

 

American
Stock Transfer & Trust Company, LLC,

 

as Rights Agent

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	Section 1.	Certain Definitions.	1
	Section 2.	Appointment of Rights Agent.	13
	Section 3.	Issue of Rights Certificates.	14
	Section 4.	Form of Rights Certificate.	16
	Section 5.	Countersignature and Registration.	17
	Section 6.	Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates.	18
	Section 7.	Exercise of Rights; Exercise Price; Expiration Date of Rights.	19
	Section 8.	Cancellation and Destruction of Rights Certificates.	21
	Section 9.	Reservation and Availability of Capital Stock.	21
	Section 10.	Preferred Stock Record Date.	23
	Section 11.	Adjustment of Exercise Price, Number and Kind of Shares or Number of Rights.	24
	Section 12.	Certificate of Adjusted Exercise Price or Number of Shares.	29
	Section 13.	Consolidation, Merger or Sale or Transfer of Assets or Earning Power.	30
	Section 14.	Fractional Rights; Fractional Shares; Waiver.	33
	Section 15.	Rights of Action.	34
	Section 16.	Agreement of Rights Holders.	35
	Section 17.	Rights Certificate Holder Not Deemed a Stockholder.	36
	Section 18.	Duties of Rights Agent.	36
	Section 19.	Concerning the Rights Agent.	39
	Section 20.	Merger or Consolidation or Change of Name of Rights Agent.	41
	Section 21.	Change of Rights Agent.	41
	Section 22.	Issuance of New Rights Certificates.	42
	Section 23.	Redemption.	42
	Section 24.	Exchange.	44
	Section 25.	Process to Seek Exemption.	46
	Section 26.	Notice of Certain Events.	46
	Section 27.	Notices.	47
	Section 28.	Supplements and Amendments.	47
	Section 29.	Successors.	48
	Section 30.	Determinations and Actions by the Board.	48

 

    - i -

     

    

  

	Section 31.	Benefits of this Agreement.	49
	Section 32.	Tax Compliance and Withholding.	49
	Section 33.	Severability.	49
	Section 34.	Governing Law.	50
	Section 35.	Counterparts.	50
	Section 36.	Interpretation.	50
	Section 37.	Force Majeure.	50

 

	Exhibit A	Certificate
                                         of Designations	 

 

	Exhibit B	Summary
                                         of Rights	 

 

	Exhibit C	Form
                                         of Rights Certificate	 

 

    - ii -

     

    

 

RIGHTS AGREEMENT

 

RIGHTS AGREEMENT,
dated as of April 14, 2020 (this “Agreement”), by and between ProPetro Holding Corp., a Delaware corporation
(the “Company”), and American Stock Transfer & Trust Company, LLC, as rights agent (the “Rights
Agent”).

 

WHEREAS, the
board of directors of the Company (the “Board”) authorized and declared a dividend of one preferred
share purchase right (a “Right”) for each share of Common Stock of the Company outstanding at the Close
of Business on the Record Date, each Right initially representing the right to purchase one one-thousandth (subject to adjustment)
of one share of Preferred Stock, upon the terms and subject to the conditions herein set forth, and further authorized and directed
the issuance of one Right (subject to adjustment) with respect to each share of Common Stock of the Company that will become outstanding
between the Record Date and the earlier of the Distribution Date and the Expiration Date; provided, however, that
Rights may be issued with respect to shares of Common Stock that will become outstanding after the Distribution Date and prior
to the Expiration Date in accordance with Section 22 hereof.

 

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

 

	Section 1.	Certain Definitions.

 

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

 

(a)              
“Acquiring Person” shall mean any Person that, together with all of its Related Persons, is the
Beneficial Owner of 10% or more of the shares of Common Stock then outstanding, but shall exclude (i) the Excluded Persons,
(ii) any Exempt Persons and (iii) any Grandfathered Persons.

 

Notwithstanding anything
in this Agreement to the contrary, no Person shall become an “Acquiring Person”:

 

(i)                
as the result of an acquisition of shares of Common Stock by the Company which, by reducing the number of shares of Common
Stock outstanding, increases the percentage of the shares of Common Stock Beneficially Owned by such Person, together with all
of its Related Persons, to 10% or more of the shares of Common Stock of the Company then outstanding; provided, however,
that if a Person, together with all of its Related Persons, becomes the Beneficial Owner of 10% or more of the shares of Common
Stock of the Company then outstanding by reason of share acquisitions by the Company and, after such share acquisitions by the
Company, becomes the Beneficial Owner of any additional shares of Common Stock of the Company (other than pursuant to a dividend
or distribution paid or made by the Company on the outstanding Common Stock or pursuant to a split or subdivision of the outstanding
Common Stock), then such Person shall be deemed to be an “Acquiring Person” unless, upon becoming the Beneficial Owner
of such additional shares of Common Stock, such Person, together with all of its Related Persons, does not Beneficially Own 10%
or more of the Common Stock then outstanding;

 

    - 1 -

     

    

 

(ii)             
if (A) the Board determines that such Person has become an “Acquiring Person” inadvertently (including,
without limitation, because (1) such Person was unaware that it Beneficially Owned a percentage of the then outstanding Common
Stock that would otherwise cause such Person to be an “Acquiring Person”; or (2) such Person was aware of the
extent of its Beneficial Ownership of Common Stock but had no actual knowledge of the consequences of such Beneficial Ownership
under this Agreement); and (B) such Person divests as promptly as practicable (as determined by the Board) a sufficient number
of shares of Common Stock so that such Person would no longer be an “Acquiring Person”;

 

(iii)           
solely as a result of any unilateral grant of any security by the Company, or through the exercise of any options, warrants,
rights or similar interests (including restricted stock) granted by the Company to its directors, officers and employees; provided,
however, that if a Person, together with all of its Related Persons, becomes the Beneficial Owner of 10% or more of
the shares of Common Stock of the Company then outstanding by reason of a unilateral grant of a security by the Company, or through
the exercise of any options, warrants, rights or similar interests (including restricted stock) granted by the Company to its
directors, officers and employees, then such Person shall nevertheless be deemed to be an “Acquiring Person” if, subject
to Section 1(a)(ii), such Person, together with all of its Related Persons, thereafter becomes the Beneficial Owner of any additional
shares of Common Stock (unless upon becoming the Beneficial Owner of additional shares of Common Stock, such Person, together
with all of its Related Persons, does not Beneficially Own 10% or more of the Common Stock then outstanding), except as a result
of (A) a dividend or distribution paid or made by the Company on the outstanding Common Stock or a split or subdivision of
the outstanding Common Stock; or (B) the unilateral grant of a security by the Company, or through the exercise of any options,
warrants, rights or similar interest (including restricted stock) granted by the Company to its directors, officers and employees;

 

(iv)            
by means of share purchases or issuances (including debt for equity exchanges), directly from the Company or indirectly
through an underwritten offering by the Company, in a transaction approved by the Board; provided, however, that
a Person shall be deemed to be an “Acquiring Person” if such Person (A) is or becomes the Beneficial Owner of 10%
or more of the shares of Common Stock then outstanding following such transaction and (B) subsequently becomes the Beneficial
Owner of any additional shares of Common Stock without the prior written consent of the Company and then Beneficially Owns 10%
or more of the shares of Common Stock then outstanding; or

 

(v)              
if such Person is a bona fide swaps dealer who has become an “Acquiring Person” as a result of its actions
in the ordinary course of its business that the Board determines, in its sole discretion, were taken without the intent or effect
of evading or assisting any other Person to evade the purposes and intent of this Agreement, or otherwise seeking to control or
influence the management or policies of the Company.

 

Notwithstanding the
foregoing, “Acquiring Person” shall not include any Person that, together with all Affiliates and Associates of such
Person, is the Beneficial Owner of Common Stock representing less than 20% of the Common Stock then outstanding, and that is entitled
to file, and files, a statement on Schedule 13G pursuant to the requirements of Rule 13d-1(b) under the Exchange Act with
respect to such holdings (but for the avoidance of doubt, not any Person who files on Schedule 13G pursuant to any other provision
of Rule 13d-1) (a “13G Investor”); provided, that a Person who was a 13G Investor shall no longer
be a 13G Investor if it either (i) files a statement on Schedule 13D or (ii) becomes no longer entitled to file a statement
on Schedule 13G pursuant to the requirements of Rule 13d-1(b) (the earlier to occur of (i) and (ii), the “13D Event”),
and such Person shall be an Acquiring Person if it is the Beneficial Owner of 10% or more of the Common Stock then outstanding
at any point from and after the time of the 13D Event; provided, however, such Person shall not be an Acquiring
Person if (i) on the first Business Day after the 13D Event such Person notifies the Company of its intent to reduce its Beneficial
Ownership to below 10% as promptly as practicable and (ii) such Person reduces its Beneficial Ownership to below 10% of the then
outstanding Common Stock as promptly as practicable (but in any event not later than 10 days after such 13D Event); provided,
further that such Person shall become an “Acquiring Person” if after reducing its Beneficial Ownership to below
10%, it subsequently becomes the Beneficial Owner of 10% or more of the then outstanding Common Stock or if, prior to reducing
its Beneficial Ownership to below 10%, it increases (or makes any offer or takes any other action that would increase) its Beneficial
Ownership of the then-outstanding Common Stock above the lowest Beneficial Ownership of such Person at any time during such 10-day
period.

 

    - 2 -

     

    

 

(b)              
A Person shall be deemed to be “Acting in Concert” with another Person if such Person knowingly
acts (whether or not pursuant to an express agreement, arrangement or understanding) in concert or in parallel with such other
Person, or towards a common goal with such other Person, relating to (i) acquiring, holding, voting or disposing of voting securities
of the Company or (ii) changing or influencing the control of the Company or in connection with or as a participant in any transaction
having that purpose or effect, where (A) each Person is conscious of the other Person’s conduct or intent and this awareness
is an element in their decision-making processes and (B) at least one additional factor supports a determination by the Board
that such Persons intended to act in concert or in parallel, which such additional factors may include, without limitation, exchanging
information, attending meetings, conducting discussions, or making or soliciting invitations to act in concert or in parallel.
A Person who is Acting in Concert with another Person shall also be deemed to be Acting in Concert with any third Person who is
also Acting in Concert with such other Person.

 

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

 

(d)              
“Affiliate” and “Associate” shall have the respective meanings ascribed
to such terms in Rule 12b-2 of the Exchange Act Regulations, as in effect on the date of this Agreement.

 

(e)              
“Agreement” shall have the meaning set forth in the Preamble hereof.

 

(f)               
A Person is the “Beneficial Owner” of (and “Beneficially Owns” and
has “Beneficial Ownership” of) any securities (that are as such “Beneficially Owned”):

 

(i)                
that such Person or any of such Person’s Affiliates or Associates, or any other Person with whom such Person is Acting
in Concert, Beneficially Owns, directly or indirectly, as determined pursuant to Rule 13d-3 or Rule 13d-5 of the Exchange Act
Regulations as in effect on the date of this Agreement;

 

    - 3 -

     

    

 

(ii)             
that such Person or any of such Person’s Affiliates or Associates, or any other Person with whom such Person is Acting
in Concert, directly or indirectly, has (A) the right to acquire (whether such right is exercisable immediately or only after
the passage of time or satisfaction of other conditions) pursuant to any agreement, arrangement or understanding (whether or not
in writing), or upon the exercise of conversion rights, exchange rights (other than the Rights), rights, warrants or options,
or otherwise; provided, however, that a Person shall not be deemed the “Beneficial Owner” of (1) securities
tendered pursuant to a tender or exchange offer made in accordance with the Exchange Act Regulations by or on behalf of such Person
or any of such Person’s Affiliates or Associates or any other Person with whom such Person is Acting in Concert until such
tendered securities are accepted for purchase or exchange; (2) securities issuable upon exercise of Rights at any time prior to
the occurrence of a Triggering Event; (3) securities issuable upon exercise of Rights from and after the occurrence of a Triggering
Event if such Rights were acquired by such Person or any of such Person’s Affiliates or Associates, or any other Person
with whom such Person is Acting in Concert, prior to the Distribution Date or pursuant to Section 3(a) or Section 22 hereof (the
 “Original Rights”) or pursuant to Section 11(a) hereof in connection with an adjustment made with respect
to any Original Rights; or (4) securities which such Person or any of such Person’s Affiliates or Associates, or any other
Person with whom such Person is Acting in Concert, 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, or any other Person with whom such Person is Acting in Concert) if such agreement has been approved
by the Board prior to such Person’s becoming an Acquiring Person; or (B) the right to vote or dispose of, pursuant
to any agreement, arrangement, or understanding (whether or not in writing);

 

(iii)           
that are Beneficially Owned, directly or indirectly, by any other Person (or any Affiliate or Associate of such Person,
or any other Person with whom such Person is Acting in Concert) with which such Person (or any of such Person’s Affiliates
or Associates, or any other Person with whom such Person is Acting in Concert) has any agreement, arrangement, or understanding
(whether or not in writing), for the purpose of acquiring, holding, voting or disposing of any such securities; or

 

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

 

    - 4 -

     

    

 

Notwithstanding anything
in this definition of “Beneficial Ownership” to the contrary, (x) no Person engaged in business as an underwriter
of securities shall be the “Beneficial Owner” of any securities acquired through such Person’s participation
in good faith in a firm commitment underwriting until the expiration of forty (40) days after the date of such acquisition; and
(y) no Person shall be deemed the “Beneficial Owner” of any security as a result of an agreement, arrangement
or understanding to vote such security that would otherwise render such Person the Beneficial Owner of such security if such agreement,
arrangement or understanding is not also then reportable on Schedule 13D and 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
provisions of the Exchange Act Regulations.

 

With respect to any
Person, for all purposes of this Agreement, any calculation of the number of shares of Common Stock outstanding at any particular
time, including, without limitation, for purposes of determining the particular percentage of the outstanding shares of Common
Stock of which any such Person is the Beneficial Owner, shall include the number of shares of Common Stock not outstanding at
the time of such calculation that such Person is otherwise deemed to Beneficially Own for purposes of this Agreement, but the
number of shares of Common Stock not outstanding that such Person is otherwise deemed to Beneficially Own for purposes of this
Agreement shall not be included for the purpose of computing the percentage of the outstanding shares of Common Stock Beneficially
Owned by any other Person (unless such other Person is also deemed to Beneficially Own for purposes of this Agreement such shares
of Common Stock not outstanding).

 

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

 

(h)              
“Board Evaluation Period” shall have the meaning set forth in Section 23(c) hereof.

 

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

 

(j)                “Business Day” shall mean any day, other than a Saturday, a Sunday, or a day on which banking
or trust institutions in New York City, New York are authorized or obligated by law or executive order to close; provided
that banks shall not be deemed to be authorized or obligated to be closed due to a “shelter in place,” “non-essential
employee”  or similar closure of physical branch locations at the direction of any governmental authority if such banks’
electronic funds transfer systems (including for wire transfers) are open for use by customers on such day.

 

(k)              
“Certificate of Designations” shall have the meaning set forth in Section 1(l) hereof.

 

(l)                “Certificate
of Incorporation” shall mean the Amended and Restated Certificate of Incorporation of the Company, as the same may
be amended or restated from time to time, as filed with the Office of the Secretary of State of the State of Delaware, and together
with the Certificate of Designations of Series B Junior Participating Preferred Stock of the Company adopted contemporaneously
with the approval of this Agreement and attached hereto as Exhibit A (the “Certificate of Designations”),
as the same may hereafter be amended or restated.

 

    - 5 -

     

    

 

(m)             
“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.

 

(n)               “Closing
Price” shall mean, in respect of any security for any day, the last sale price, regular way, reported at or prior
to 4:00 P.M. New York City time or, in case no such sale takes place on such day, the average of the bid and asked prices, regular
way, reported at or prior to 4:00 P.M. New York City time, in either case as reported in the principal consolidated transaction
reporting system with respect to securities listed or admitted to trading on NASDAQ or the NYSE or, if the security is not listed
or admitted to trading on NASDAQ or the NYSE, as reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal securities exchange on which the security is listed or admitted to trading or, if the security
is not listed or admitted to trading on any securities exchange, the last quoted price reported at or prior to 4:00 P.M. New York
City time 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 reported as of 4:00 P.M. New York City time or, if not so quoted, the average of the closing bid and asked
price furnished by a professional market maker making a market in the security, which professional market maker is selected by
the Board.

 

(o)               “Common
Stock” shall mean (i) when used with reference to the Company, the Common Stock, par value $0.001 per share
(subject to adjustment from time to time), of the Company; and (ii) when used with reference to any Person other than the
Company, the class or series of capital stock or equity interest with the greatest voting power (in relation to any other classes
or series of capital stock or equity interest) of such other Person or if such other Person is a Subsidiary of another Person,
the Person who ultimately controls such first mentioned Person.

 

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

 

(q)               “Company”
shall have the meaning set forth in the Preamble hereof.

 

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

 

(s)               “Current
Market Price” of any security on any date shall mean the average of the daily closing prices per share of such security
for the thirty (30) consecutive Trading Days immediately prior to, but not including, such date; provided, however,
that in the event that the “Current Market Price” of such security is determined during a period following the announcement
by the issuer of such security of (i) a dividend or distribution on such security payable in shares of such security or securities
convertible into such shares (other than the Rights); or (ii) any subdivision, combination or reclassification of such security,
and prior to the expiration of the requisite thirty (30) Trading Day period after but not including the ex-dividend date for such
dividend or distribution or the record date for such subdivision, combination or reclassification, then, in each such case, the
“Current Market Price” shall be appropriately adjusted to take into account ex-dividend trading, as determined in
good faith by the Board, whose determination shall be described in a statement delivered to the Rights Agent and shall be conclusive
for all purposes. If on any such date no market maker is making a market in such security or such security is not publicly held
or not listed or traded, the “Current Market Price” shall mean the fair value per share as determined in good faith
by the Board, whose determination shall be described in a written statement filed with the Rights Agent and shall be conclusive
for all purposes.

 

    - 6 -

     

    

 

Except as provided in
this paragraph, the “Current Market Price” of the Preferred Stock shall be determined in accordance with the method
set forth above. If the Preferred Stock is not publicly traded, the “Current Market Price” of the Preferred Stock
shall be conclusively deemed to be the Current Market Price of the Common Stock of the Company as determined pursuant to the paragraph
above (appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof),
multiplied by one thousand. If neither the Common Stock nor the Preferred Stock is publicly held or so listed or traded, the “Current
Market Price” of the Preferred Stock shall mean the fair value per share as determined in good faith by the Board, whose
determination shall be described in a written statement filed with the Rights Agent and shall be conclusive for all purposes.
For all purposes of this Agreement, the “Current Market Price” of one one-thousandth of a share of Preferred Stock
shall be equal to the “Current Market Price” of one share of Preferred Stock divided by 1,000.

 

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

 

(u)              
“Definitive Acquisition Agreement” shall mean any definitive written agreement entered into by
the Company that is conditioned on the approval by the holders of not less than a majority of the outstanding shares of Common
Stock at a meeting of the stockholders of the Company with respect to (i) a merger, consolidation, recapitalization, reorganization,
share exchange, business combination or similar transaction involving the Company or (ii) the acquisition in any manner,
directly or indirectly, of more than 50% of the consolidated total assets (including, without limitation, equity securities of
its subsidiaries) based on the most recent publicly available balance sheet of the Company and its Subsidiaries or businesses
or assets of the Company and its subsidiaries (including, without limitation, equity securities of its subsidiaries) that generated
more than 50% of the Company’s consolidated net revenue or earnings before interest, taxes, depreciation and amortization
for the preceding 12 months.

 

(v)              
“Demanding Stockholders” shall have the meaning set forth in Section 23(c)(i) hereof.

 

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

 

(x)              
“Distribution Date” shall mean the earlier of (i) the Close of Business on the tenth Business
Day after the Stock Acquisition Date (or, if the tenth Business Day after the Stock Acquisition Date occurs before the Record
Date, the Close of Business on the Record Date) and (ii) the Close of Business on the tenth Business Day (or, if such tenth
Business Day occurs before the Record Date, the Close of Business on the Record Date), after the Tender Offer Commencement Date;
provided, however, that if either the Stock Acquisition Date or the Tender Offer Commencement Date occurs after
the date of this Agreement and on or prior to the Record Date, then the Distribution Date shall be the Close of Business on the
Record Date.

 

    - 7 -

     

    

 

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

 

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

 

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

 

(bb)          
“Exchange Act Regulations” shall mean the General Rules and Regulations under the Exchange Act.

 

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

 

(dd)          
“Excluded Person” shall mean (i) the Company or any of its Subsidiaries; (ii) any officers,
directors and employees of the Company or any of its Subsidiaries solely in respect of such Person’s status or authority
as such (including, without limitation, any fiduciary capacity); or (iii) any employee benefit plan of the Company or of
any Subsidiary of the Company or any entity or trustee holding (or acting in a fiduciary capacity in respect of) shares of capital
stock of the Company for or pursuant to the terms of any such plan, or for the purpose of funding other employee benefits for
employees of the Company or any Subsidiary of the Company.

 

(ee)           
“Exempt Person” shall mean any Person determined by the Board to be an “Exempt Person”
in accordance with the requirements set forth in Section 25 hereof for so long as such Person complies with any limitations or
conditions required by the Board in making such determination.

 

(ff)             
“Exemption Date” shall have the meaning set forth in Section 23(c)(iii) hereof.

 

(gg)          
“Exemption Request” shall have the meaning set forth in Section 25 hereof.

 

(hh)          
“Exercise Price” shall have the meaning set forth in Sections 4(a), 11(a)(ii) and 13(a) hereof.

 

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

 

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

 

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

 

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

 

    - 8 -

     

    

 

 

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

 

(nn)       
“Grandfathered Person” shall mean any Person that is, as of the date of this Agreement, the Beneficial
Owner of 10% or more of the outstanding shares of Common Stock of the Company. A Person ceases to be a “Grandfathered Person”
if and when (i) such Person becomes the Beneficial Owner of less than 10% of the shares of Common Stock of the Company then
outstanding; or (ii) such Person’s Beneficial Ownership of shares of Common Stock of the Company increases to an amount
equal to or greater than the greater of (A) 10% of the shares of Common Stock of the Company then outstanding and (B) the
sum of (1) the lowest Beneficial Ownership of such Person as a percentage of the shares of Common Stock of the Company outstanding
as of any time from and after the public announcement of this Agreement (other than as a result of an acquisition of shares of
Common Stock by the Company) plus (2) one share of Common Stock of the Company.

 

(oo)        
“Independent Directors” shall mean those members of the Board who meet the criteria for independent
directors of the NYSE corporate governance rules and any other applicable laws, rules and regulations regarding independence of
directors in effect from time to time.

 

(pp)        
“NASDAQ” shall mean The NASDAQ Stock Market LLC.

 

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

 

(rr)          
“NYSE” shall mean the New York Stock Exchange, Inc.

 

(ss)         
“Outside Meeting Date” shall have the meaning set forth in Section 23(c)(iii) hereof.

 

(tt)          
“Person” shall mean any individual, firm, corporation, partnership (general or limited), limited
liability company, limited liability partnership, association, unincorporated organization, trust or other legal entity, including
(i) any syndicate or group deemed to be a Person under Section 13(d)(3) of the Exchange Act and Rule 13d-5(b) thereunder;
and (ii) any successor (by merger or otherwise) of any such firm, corporation, partnership (general or limited), limited liability
company, limited liability partnership, association, unincorporated organization, trust or other group or entity.

 

(uu)          
“Preferred Stock” shall mean the Series B Junior Participating Preferred Stock, par value $0.001
per share, of the Company, having the voting rights, powers, designations, preferences and relative, participating, optional or
other special rights and qualifications, limitations and restrictions set forth in the Certificate of Designations.

 

    - 9 -

     

    

 

(vv)        
“Qualifying Offer” shall mean an offer determined by the Board in good faith to be:

 

(i)                
an offer that has commenced within the meaning of Rule 14d-2(a) under the Exchange
Act;

 

(ii)             
a fully financed all-cash tender offer or an exchange offer offering shares of Common
Stock of the offeror, or a combination thereof, in each such case for any and all of the outstanding shares of Common Stock of
the Company at the same per-share consideration;

 

(iii)           
an offer whose offer price per share of Common Stock of the Company is greater than
the highest reported market price for the Common Stock of the Company in the twenty-four (24) months immediately preceding the
commencement of such offer within the meaning of Rule 14d-2(a) under the Exchange Act, with, in the case of an offer that
includes shares of Common Stock of the offeror, such offer price per share of Common Stock of the Company being determined using
the lowest reported market price for Common Stock of the offeror during the five (5) trading days immediately preceding and the
five (5) trading days immediately following the commencement of such offer within the meaning of Rule 14d-2(a) under the Exchange
Act;

 

(iv)            
an offer that is conditioned on a minimum of at least a majority of (A) the shares
of the Common Stock of the Company outstanding on a fully-diluted basis; and (B) the outstanding shares of the Common Stock
of the Company not held by the offeror (or such offeror’s Related Persons) being tendered and not withdrawn as of the offer’s
expiration date, which condition shall not be waivable (the “Minimum Tender Condition”);

 

(v)              
an offer that is subject only to the Minimum Tender Condition and other customary
terms and conditions, which conditions shall not include any financing, funding or similar conditions or any requirements with
respect to the offeror or its representatives being permitted any due diligence with respect to the books, records, management,
accountants or other outside advisers of the Company; 

 

(vi)            
an offer pursuant to which the Company has received an irrevocable, legally binding
written commitment by the offeror that the offer, if it is otherwise to expire prior thereto, will be extended for at least twenty
(20) Business Days after any increase in the consideration offered or after any bona fide alternative offer is commenced;

 

(vii)         
an offer pursuant to which the Company has received an irrevocable, legally binding
written commitment of the offeror that the offer will remain open until at least the later of (A) the date the Board redeems
the outstanding Rights or exempts such offer from the terms of this Agreement; (B) if no Special Meeting Demand has been received
from the holders of a Requisite Percentage with respect to such offer, ten (10) Business Days after the end of the Board Evaluation
Period; and (C) if a Special Meeting is duly requested in accordance with Section 23, ten (10) Business Days after the date
of such Special Meeting or, if no Special Meeting is held within the Special Meeting Period, ten (10) Business Days following the
last day of such Special Meeting Period; 

 

(viii)       
an offer pursuant to which the Company has received an irrevocable, legally binding
written commitment of the offeror to consummate, as promptly as practicable upon successful completion of the offer, a second step
transaction whereby all shares of the Common Stock not tendered into the offer shall be acquired at the same consideration per
share of Common Stock actually paid pursuant to the offer, subject to stockholders’ statutory appraisal rights, if any;

 

    - 10 -

     

    

 

(ix)            
an offer pursuant to which the Company has received an irrevocable, legally binding
written commitment of the offeror that no amendments shall be made to the offer to reduce the consideration being offered or to
otherwise change the terms of the offer in a way that is adverse to a tendering stockholder (other than extensions of the offer
consistent with the terms thereof);

 

(x)              
an offer (other than an offer consisting solely of cash consideration) pursuant to which the Company has received the written
representation and certification of the offeror and the written representations and certifications of the offeror’s Chief
Executive Officer and Chief Financial Officer, acting in such capacities, that (A) all facts about the offeror that would
be material to making an investor’s decision to accept the offer have been fully and accurately disclosed as of the date
of the commencement of the offer within the meaning of Rule 14d-2(a) of the Exchange Act; (B) all such facts that arise or
become known after the date of commencement shall be fully and accurately disclosed on a prompt basis during the entire period
during which the offer remains open; and (C) all required Exchange Act reports shall be filed by the offeror in a timely manner
during such period; and

 

(xi)            
if the offer includes shares of Common Stock of the offeror, (A) the offeror is a publicly owned corporation and its
Common Stock is freely tradable and is listed or admitted to trading on either the NASDAQ or the NYSE; (B) no stockholder
approval of the offeror is required to issue such Common Stock, or, if required, such approval shall have been obtained prior to
acceptance of any shares of Common Stock pursuant to the offer; (C) no Person Beneficially Owns more than 20% of the voting
stock of the offeror at the time of commencement of the offer or at any time during the term of the offer; (D) no other class
of voting stock of the offeror is outstanding; and (E) the offeror meets the registrant eligibility requirements for use of
Form S-3 or Form F-3 for registering securities under the Securities Act, including, without limitation, the filing of all required
Exchange Act reports in a timely manner during the twelve (12) calendar months prior to the date of commencement of such offer.

 

For the purposes of the
definition of Qualifying Offer, “fully financed” shall mean that the offeror has sufficient funds for the offer and
related expenses which shall be evidenced by (x) firm, unqualified, written commitments from responsible financial institutions
having the necessary financial capacity, accepted by the offeror, to provide funds for such offer subject only to customary terms
and conditions; (y) cash or cash equivalents then available to the offeror, set apart and maintained solely for the purpose
of funding the offer with an irrevocable, legally binding written commitment being provided by the offeror to the Board to maintain
such availability until the offer is consummated or withdrawn; or (z) a combination of the foregoing; which evidence has been
provided to the Company prior to, or upon, commencement of the offer. If an offer becomes a Qualifying Offer in accordance with
this definition, but subsequently ceases to be a Qualifying Offer as a result of the failure at a later date to continue to satisfy
any of the requirements of this definition, such offer shall cease to be a Qualifying Offer and the provisions of Section 23 shall
no longer be applicable to such offer.

 

(ww)       
“Qualifying Offer Resolution” shall have the meaning set forth in Section 23(c)(i) hereof.

 

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

 

    - 11 -

     

    

 

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

 

(zz)           
“Record Date” shall mean the Close of Business on April 24, 2020.

 

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

 

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

 

(ccc)       
“Related Person” shall mean, as to any Person, any Affiliates or Associates of such Person.

 

(ddd)      
“Requesting Person” shall have the meaning set forth in Section 25 hereof.

 

(eee)       
“Requisite Percentage” shall have the meaning set forth in Section 23(c)(i) hereof.

 

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

 

(ggg)      
“Rights Agent” shall have the meaning set forth in the Preamble hereof.

 

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

 

(iii)          
“Schedule 13D” shall mean a statement on Schedule 13D pursuant to Rule 13d-1(a), 13d-1(e), 13d-1(f)
or 13d-1(g) of the General Rules and Regulations under the Exchange Act as in effect at the time of the public announcement of
the declaration of the Rights dividend with respect to the shares of Common Stock Beneficially Owned by the Person filing such
statement.

 

(jjj)         
“Schedule 13G” shall mean a statement on Schedule 13G pursuant to Rule 13d-1(b) of the
General Rules and Regulations under the Exchange Act as in effect at the time of the public announcement of the declaration of
the Rights dividend with respect to the shares of Common Stock Beneficially Owned by the Person filing such statement.

 

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

 

(lll)          
“Special Meeting” shall have the meaning set forth in Section 23(c)(i) hereof.

 

(mmm)    
“Special Meeting Demand” shall have the meaning set forth in Section 23(c)(i) hereof.

 

(nnn)      
“Special Meeting Period” shall have the meaning set forth in Section 23(c)(ii) hereof.

 

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

 

(ppp)      
“Stock Acquisition Date” shall mean the first date of public announcement (including, without
limitation, the filing of any report pursuant to Section 13(d) of the Exchange Act) by the Company or an Acquiring Person that
a Person has become an Acquiring Person, or such other date, as determined by the Board, on which a Person has become an Acquiring
Person.

 

    - 12 -

     

    

 

(qqq)      
“Stockholder Approval” shall mean the approval or ratification by the stockholders of the Company
of this Agreement (or such Agreement as then in effect or as contemplated to be in effect following such Stockholder Approval).

 

(rrr)         
“Subsidiary” shall mean, with reference to any Person, any other Person of which (i) a majority
of the voting power of the voting securities or equity interests is Beneficially Owned, directly or indirectly, by such first-mentioned
Person or otherwise controlled by such first-mentioned Person; or (ii) an amount of voting securities or equity interests
sufficient to elect at least a majority of the directors or equivalent governing body of such other Person is Beneficially Owned,
directly or indirectly, by such first-mentioned Person, or otherwise controlled by such first-mentioned Person.

 

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

 

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

 

(uuu)      
“Tender Offer Commencement Date” shall mean the date that a tender offer or exchange offer or
other transaction by any Person (other than an Exempt Person) is first published or sent or given within the meaning of Rule 14d-2(a)
of the Exchange Act Regulation, if, upon consummation thereof, such Person would become an Acquiring Person.

 

(vvv)      
“Trading Day” shall mean, in respect to any security, (i) if such security is listed or admitted
to trading on any national securities exchange, a day on which the principal national securities exchange on which such security
is listed or admitted to trading is open for the transaction of business; and (ii) if such security is not so listed or admitted,
a Business Day.

 

(www)     “Triggering Event” shall mean any Flip-In Event or any Flip-Over Event.

 

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

 

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

 

(zzz)        
“13D Event” shall have the meaning set forth in Section 1(a) hereof.

 

(aaaa)     
“13D Investor” shall have the meaning set forth in Section 1(a) hereof.

 

	Section 2. 	Appointment of Rights Agent.

 

The Company
hereby appoints the Rights Agent to act as rights agent for the Company and the holders of the Rights (who, in accordance
with Section 3 hereof, shall prior to the Distribution Date be the holders of Common Stock) and in accordance with the
express terms and conditions hereof (and no implied terms or conditions), and the Rights Agent hereby accepts such
appointment. The Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable; provided
that the Company shall notify the Rights Agent in writing ten (10) Business Days prior to such appointment. In the event the
Company appoints one or more co-Rights Agents, the respective duties of the Rights Agent and any co-Rights Agents under the
provisions of this Agreement shall be as the Company reasonably determines, and the Company shall notify, in writing, the
Rights Agent and any co-Rights Agents of such duties. The Rights Agent shall have no duty to supervise, and shall in no event
be liable for, the acts or omissions of any such co-Rights Agents.

 

    - 13 -

     

    

 

	Section 3.	Issue of Rights Certificates.

 

(a)              
On the Record Date, or as soon as practicable thereafter, the Company will make available (directly or, at the expense of
the Company, through the Rights Agent or its transfer agent if the Rights Agent or transfer agent is directed by the Company and
provided with all necessary information and documents) a copy of a Summary of Rights to Purchase Preferred Stock, in substantially
the form attached hereto as Exhibit B and which may be appended to certificates that represent shares of Common Stock (the
 “Summary of Rights”), 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 transfer agent or register for Common Stock. With respect to shares of Common Stock (or Book Entry
shares of Common Stock) outstanding as of the Record Date, until the Distribution Date, the Rights shall be evidenced by such shares
of Common Stock registered in the names of the holders thereof together with the Summary of Rights, and not by separate Rights
Certificates. With respect to Book Entry shares of Common Stock outstanding as of the Record Date, until the Distribution Date,
the Rights shall be evidenced by the balances indicated in the Book Entry account system of the transfer agent for the Common Stock
together with the Summary of Rights. Until the earlier of the Distribution Date and the Expiration Date, the transfer of any shares
of Common Stock outstanding on the Record Date (whether represented by certificates or evidenced by the balances indicated in the
Book Entry account system of the transfer agent for the Common Stock, and, in either case, regardless of whether a copy of the
Summary of Rights is submitted with the surrender or request for transfer), shall also constitute the transfer of the Rights associated
with such shares of Common Stock.

 

(b)              
Rights shall be issued, without any further action, in respect of all shares of Common Stock that become outstanding (whether
originally issued or delivered from the Company’s treasury) after the Record Date but prior to the earlier of the Distribution
Date and the Expiration Date; provided, however, that Rights also shall be issued to the extent provided in Section
22 hereof. Confirmation and account statements sent to holders of Common Stock for Book Entry form or, in the case of certificated
shares, certificates, representing such shares of Common Stock, issued after the Record Date shall bear a legend substantially
in the following form:

 

“[This certificate] [These
shares] also evidence[s] and entitle[s] the holder hereof to certain Rights as set forth in a Rights Agreement between
ProPetro Holding Corp., a Delaware corporation (the “Company”), and American Stock Transfer & Trust
Company, LLC, or any successor Rights Agent (the “Rights Agent”) dated as of April 14, 2020, as the same
may be amended or supplemented 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 shall be evidenced by separate certificates and will
no longer be evidenced by [this certificate] [these shares]. The Company will mail to the holder of [this certificate] [these
shares] a copy of the Rights Agreement as in effect on the date of mailing without charge after receipt of a written request
therefor.

 

    - 14 -

     

    

 

Under certain circumstances, as set
forth in the Rights Agreement, Rights that are Beneficially Owned by any Person who is, was or becomes an Acquiring Person or any
Related Person thereof (as such capitalized terms are defined in the Rights Agreement), or specified transferees of such Acquiring
Person (or Related Person thereof) may become null and void and will no longer be transferable.”

 

With respect to all
certificates representing shares of Common Stock containing the foregoing legend in substantially similar form, until the earlier
of the Distribution Date and the Expiration Date, the Rights associated with the Common Stock represented by such certificates
shall be evidenced by such certificates alone and registered holders of Common Stock shall also be the registered holders of the
associated Rights, and the transfer of any such certificate shall also constitute the transfer of the Rights associated with the
shares of Common Stock represented by such certificates.

 

With respect to Common
Stock in Book Entry form for which there has been sent a confirmation or account statement containing the foregoing legend in substantially
similar form, until the earlier of the Distribution Date and the Expiration Date, the Rights associated with the Common Stock shall
be evidenced by such Common Stock alone and registered holders of Common Stock shall also be the registered holders of the associated
Rights, and the transfer of any such Common Stock shall also constitute the transfer of the Rights associated with such shares
of Common Stock.

 

Notwithstanding this
paragraph (b), the omission of the legend or the failure to send, deliver or provide the registered owner of shares of Common Stock
a copy of the Summary of Rights shall not affect the enforceability of any part of this Agreement or the rights of any holder of
the Rights.

 

In the event that the
Company purchases or otherwise acquires any shares of Common Stock after the Record Date but prior to the Distribution Date, any
Rights associated with such shares of Common Stock shall be cancelled and retired so that the Company is not entitled to exercise
any Rights associated with the shares of Common Stock that are no longer outstanding.

 

(c)              
Until the Distribution Date, the Rights shall be transferable only in connection with the transfer of the underlying shares
of Common Stock (including a transfer to the Company).

 

    - 15 -

     

    

 

(d)               As
soon as practicable after the Distribution Date, the Company will prepare and execute, and upon the written request of the
Company, the Rights Agent will countersign and the Company will send or cause to be sent (and the Rights Agent will, if so
requested by the Company in writing and provided with all necessary information and documents, at the expense of the Company,
send) by first-class, insured, postage-prepaid mail, to each record holder of shares of Common Stock as of the Close of
Business on the Distribution Date (other than any Acquiring Person or any Related Person of an Acquiring Person), at the
address of such holder shown on the records of the Company, one or more rights certificates, in substantially the form of Exhibit
C hereto (the “Rights Certificate”), evidencing one Right for each share of Common Stock so
held, subject to adjustment as provided herein. In the event that an adjustment in the number of Rights per share of Common
Stock has been made pursuant to Section 11 hereof, at the time of distribution of the Rights Certificates, the Company may
make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates
representing only whole numbers of Rights are distributed and, if such adjustments are made, the Company may pay cash in lieu
of any fractional Rights (in accordance with Section 14(a) hereof). As of and after the Distribution Date, the Rights shall
be evidenced solely by such Rights Certificates, and the Rights Certificates and the Rights shall be transferable 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, if such notification is given orally, the Company shall confirm the 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 the Distribution Date has not occurred.

 

	Section 4.	Form of Rights Certificate.

 

(a)              
The Rights Certificates (including the forms of election to purchase and of assignment and applicable certificate) shall
be substantially in the form set forth in Exhibit C hereto and may have such changes or marks of identification or designation
and such legends, summaries, or endorsements printed thereon as the Company may deem appropriate (but which do not affect the rights,
duties, liabilities, protections 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 any rule or regulation thereunder or with any applicable
rule or regulation of any stock exchange upon which the Rights may from time to time be listed or the Financial Industry Regulatory
Authority, or to conform to customary usage. Subject to the provisions of this Agreement, the Rights Certificates, whenever distributed,
shall be dated as of the Distribution Date and on their face shall entitle the holders thereof to purchase such number of one one-thousandths
of a share of Preferred Stock as shall be set forth therein at the price set forth therein (such price, the “Exercise
Price”), but the amount and type of securities, cash, or other assets that may be acquired upon the exercise of each
Right and the Exercise Price thereof shall be subject to adjustment as provided herein.

 

    - 16 -

     

    

 

(b)               Any
Rights Certificate issued pursuant hereto that represents Rights Beneficially Owned by (i) an Acquiring Person or any
Related Person of an Acquiring Person; (ii) a transferee of an Acquiring Person (or of any such Related Person) that
becomes a transferee after the Acquiring Person becomes an Acquiring Person; or (iii) a transferee of an Acquiring
Person (or of any such Related Person) that becomes a transferee prior to or concurrently with the Acquiring Person becoming
an Acquiring Person and that receives such Rights pursuant to either (A) a transfer (whether or not for consideration)
from the Acquiring Person (or any such Related Person) to holders of equity interests in such Acquiring Person (or any such
Related Person) or to any Person with whom such Acquiring Person (or any such Related Person) has any continuing written or
oral plan, agreement, arrangement, or understanding regarding the transferred Rights, shares of Common Stock, or the Company;
or (B) a transfer that the Board has determined in good faith to be part of a plan, agreement, arrangement, or
understanding that has as a primary purpose or effect the avoidance of Section 7(e) hereof (and any Rights Certificate issued
pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights Certificate
referred to in this sentence), shall contain upon the direction of the Board a legend (to the extent feasible, and only if
the Company has provided specific written instructions to the Rights Agent) substantially in the following form:

 

“The Rights represented by this
Rights Certificate are or were Beneficially Owned by a Person who was or became an Acquiring Person or a Related Person of an Acquiring
Person (as such terms are defined in the Rights Agreement dated as of April 14, 2020, by and between ProPetro Holding Corp. and
American Stock Transfer & Trust Company, LLC (the “Rights Agreement”)). Accordingly, this Rights Certificate and
the Rights represented hereby may become null and void in the circumstances specified in Section 7(e) of the Rights Agreement.”

 

The Company shall give
written notice to the Rights Agent promptly after it becomes aware of the existence and identity of any Acquiring Person or any
Related Person thereof. Until such notice is received by the Rights Agent, the Rights Agent may presume conclusively without independent
verification thereof for all purposes that no Person has become an Acquiring Person or a Related Person of an Acquiring Person.
The Company shall instruct the Rights Agent in writing of the Rights which should be so legended.

 

	Section 5. 	Countersignature and Registration.

 

(a)              
The Rights Certificates shall be executed on behalf of the Company by the Chairman of the Board, Chief Executive Officer,
Chief Financial Officer, Chief Operating Officer, General Counsel, Chief Accounting Officer, Chief Strategy and Administrative
Officer, Senior Vice President or any other officer of the Company, shall have affixed thereto the Company’s corporate seal
(or a facsimile thereof), and shall be attested by the Company’s Secretary or one of its Assistant Secretaries. The signature
of any of these officers on the Rights Certificates may be manual or by facsimile or other customary means of electronic transmission
(e.g., “pdf”). Rights Certificates bearing the manual or facsimile signatures of the individuals who were at the time
of execution the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have
ceased to hold such offices prior to the countersigning of such Rights Certificates by the Rights Agent or did not hold such offices
at the date of such Rights Certificates. No Rights Certificate shall be entitled to any benefit under this Agreement or shall be
valid for any purpose unless there appears on such Rights Certificate a countersignature duly executed by an authorized signatory
of the Rights Agent by manual or facsimile or other customary means of electronic transmission (e.g., “pdf”) of an
authorized officer, and such countersignature upon any Rights Certificate shall be conclusive evidence, and the only evidence,
that such Rights Certificate has been duly countersigned as required hereunder. In case any authorized signatory of the Rights
Agent who has countersigned any Rights Certificate ceases to be an authorized signatory of the Rights Agent before issuance and
delivery by the Company, such Rights Certificate, nevertheless, may be issued and delivered by the Company with the same force
and effect as though the person who countersigned such Rights Certificate had not ceased to be an authorized signatory of the Rights
Agent; and any Rights Certificate may be countersigned on behalf of the Rights Agent by any person who, at the actual date of the
countersignature of such Rights Certificate, is properly authorized to countersign such Rights Certificate, although at the date
of the execution of this Agreement any such person was not so authorized.

 

    - 17 -

     

    

 

(b)              
Following the Distribution Date, and receipt by the Rights Agent of written notice to that effect and all other relevant
and necessary information and documentation referred to in Section 3(d) hereof, the Rights Agent shall keep or cause to be kept,
at its office designated for such purpose, books for registration and transfer of the Rights Certificates issued hereunder. Such
books shall show the name and address of each holder of the Rights Certificates, the number of Rights evidenced on its face by
each Rights Certificate and the date of each Rights Certificate.

 

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

 

(a)              
Subject to the provisions of Sections 4(b), 7(e) and 14 hereof, at any time after the Close of Business on the Distribution
Date and at or prior to the Close of Business on the Expiration Date, any Rights Certificate (other than Rights Certificates representing
Rights that have become null and void pursuant to Section 7(e) hereof, that have been redeemed pursuant to Section 23 hereof, or
that have been exchanged pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Rights
Certificate, entitling the registered holder to purchase a like number of one one-thousandths of a share of Preferred Stock (or
following a Triggering Event, Common Stock, other securities, cash or other assets, as the case may be) as the Rights Certificate
or Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine
or exchange any Rights Certificate shall make such request in writing delivered to the Rights Agent, and shall surrender, together
with any required form of assignment duly executed and properly completed, the Rights Certificates to be transferred, split up,
combined or exchanged at the office of the Rights Agent designated for such purpose, along with a signature guarantee (if required)
and such other and further documentation as the Company or the Rights Agent may reasonably request. The Rights Certificates are
transferable only on the books and records of the Rights Agent. Neither the Rights Agent nor the Company shall be obligated to
take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate until the registered holder
has properly completed and duly executed the certificate set forth in the form of assignment on the reverse side of such Rights
Certificate and has provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) of the
Rights represented by such Rights Certificate or Related Person thereof as the Company or the Rights Agent may reasonably request,
whereupon the Rights Agent shall, subject to the provisions of Sections 4(b), 7(e) and 14 hereof, countersign and deliver to the
Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested. The Company or the Rights
Agent may require payment by the holder of the Rights of a sum sufficient to cover any tax or governmental charge that may be imposed
in connection with any transfer, split up, combination or exchange of Rights Certificates. If and to the extent the Company does
require payment of any such taxes or governmental charges, the Company shall give the Rights Agent prompt written notice thereof
and the Rights Agent shall not deliver any Rights Certificate unless and until it is satisfied that all such payments have been
made, and the Rights Agent shall forward any such sum collected by it to the Company or to such Persons as the Company specifies
by written notice. The Rights Agent shall have no duty or obligation to take any action with respect to a Rights holder under any
Section of this Agreement which requires the payment by such Rights holder of applicable taxes and/or governmental charges unless
and until it is satisfied that all such taxes and/or governmental charges have been paid.

 

    - 18 -

     

    

 

(b)              
If a Rights Certificate is mutilated, lost, stolen or destroyed, upon written request by the registered holder of the Rights
represented thereby and upon payment to the Company and the Rights Agent of all reasonable expenses incident thereto, there shall
be issued, in exchange for and upon cancellation of the mutilated Rights Certificate, or in substitution for the lost, stolen or
destroyed Rights Certificate, a new Rights Certificate, in substantially the form of the prior Rights Certificate, of like tenor
and representing the equivalent number of Rights, but, in the case of loss, theft, or destruction, only upon receipt of evidence
satisfactory to the Company and the Rights Agent of such loss, theft or destruction of such Rights Certificate and such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Related Persons thereof as the Company or the
Rights Agent requests, and, if requested by the Company or the Rights Agent, indemnity or security also satisfactory to the Company
and/or the Rights Agent.

 

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

 

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

 

(a)               Subject
to Section 7(e) hereof, the registered holder of any Rights Certificate may exercise the Rights evidenced thereby (except as
otherwise provided herein including, without limitation, in the restrictions on exercisability set forth in Sections 9(c),
11(a)(iii) and 23(a) hereof) in whole or in part at any time after the Distribution Date upon surrender of the Rights
Certificate, with the form of election to purchase and the certificate on the reverse side thereof properly completed and
duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment of
the Exercise Price for each one one-thousandth of a share of Preferred Stock (or Common Stock, other securities, cash or
other assets, as the case may be) as to which the Rights are exercised prior to the earliest of (i) the Close of
Business on March 31, 2021 or such later date as may be established by the Board prior to the expiration of the Rights as
long as the extension is submitted to the stockholders of the Company for ratification at the next annual meeting of
stockholders succeeding such extension (the “Final Expiration Date”); (ii) the time at which
the Rights are redeemed pursuant to Section 23 hereof; (iii) the time at which the Rights are exchanged pursuant to
Section 24 hereof; and (iv) the closing of any merger or other acquisition transaction involving the Company pursuant to
an agreement of the type described in Section 13(f) at which time the Rights are terminated (the earliest of (i) – (iv)
being herein referred to as the “Expiration Date”).

 

(b)              
Each Right shall entitle the registered holder thereof to purchase one one-thousandth of a share of Preferred Stock. The
Exercise Price for each one one-thousandth of a share of Preferred Stock pursuant to the exercise of a Right shall be initially
$16.00, and shall be subject to adjustment from time to time as provided in Sections 11 and 13 hereof and payable in lawful
money of the United States in accordance with Section 7(c).

 

    - 19 -

     

    

 

(c)              
Upon receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase and the certificate
properly completed and duly executed, accompanied by payment, with respect to each Right so exercised, of the Exercise Price per
one one-thousandth of a share of Preferred Stock (or Common Stock, other securities, cash or other assets, as the case may be)
to be purchased and an amount equal to any applicable tax or governmental charge, then the Rights Agent shall, subject to Section
18(j) hereof, promptly (i) (A) requisition from any transfer agent of the Preferred Stock certificates representing
such number of one one-thousandths of a share of Preferred Stock (or fractions of shares that are integral multiples of one one-thousandth
of a share of Preferred Stock) as are to be purchased and the Company shall direct its transfer agent to comply with all such
requests; or (B) if the Company has elected to deposit the total number of shares of Preferred Stock issuable upon exercise
of the Rights hereunder with a depositary agent, requisition from the depositary agent depositary receipts representing such number
of one one-thousandths of a share of Preferred Stock as are to be purchased (in which case certificates for the shares of Preferred
Stock represented by such receipts shall be deposited by the transfer agent with the depositary agent), and the Company shall
direct the depositary to comply with all such requests; (ii) if necessary to comply with this Agreement, requisition from
the Company the amount of cash, if any, to be paid in lieu of fractional shares in accordance with Section 14 hereof and,
after receipt thereof, deliver such cash to or upon the order of the registered holder of such Rights Certificate; and (iii) after
receipt of such certificates or such depositary receipts, cause the same to be delivered to or upon the order of the registered
holder of such Rights Certificate, registered in such name or names as may be designated by such holder. In the event that the
Company is obligated to issue Common Stock or other securities of the Company, pay cash and/or distribute other assets pursuant
to Section 11(a) hereof, the Company shall make all arrangements necessary so that such Common Stock, other securities, cash and/or
other assets are available for distribution by the Rights Agent, if and when necessary to comply with this Agreement, and until
so received, the Rights Agent shall have no duties or obligations with respect to such securities, cash and/or other assets. The
payment of the Exercise Price (as such amount may be reduced pursuant to Section 11(a)(iii) hereof) may be made in cash, by certified
or bank check, wire transfer, electronic transfer or money order payable to the order of the Company.

 

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

 

(e)               Notwithstanding
anything in this Agreement to the contrary, from and after the Flip-In Event, any Rights Beneficially Owned by (i) an
Acquiring Person or a Related Person of an Acquiring Person; (ii) a transferee of an Acquiring Person (or of any such
Related Person) that becomes a transferee after the Acquiring Person becomes such; and (iii) a transferee of an
Acquiring Person (or of any such Related Person) that becomes a transferee prior to or concurrently with the Acquiring Person
becoming such and that receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from
the Acquiring Person (or any such Related Person) to holders of equity interests in such Acquiring Person (or any such
Related Person) or to any Person with whom the Acquiring Person (or any such Related Person) has any continuing written or
oral plan, agreement, arrangement or understanding regarding the transferred Rights, shares of Common Stock or the Company;
or (B) a transfer that the Board has determined in good faith to be part of a plan, agreement, arrangement or
understanding that has as a primary purpose or effect the avoidance of this Section 7(e), shall be null and void without any
further action, and any holder of such Rights thereafter shall have no voting rights, powers, designations, preferences or
any other relative, participating, optional or other special rights whatsoever with respect to such Rights, whether under any
provision of this Agreement, the Rights Certificates or otherwise (including, without limitation, the rights and preferences
pursuant to Sections 7, 11, 13, 23 and 24 hereof). The Company shall use commercially reasonable efforts to ensure compliance
with the provisions of this Section 7(e) and Section 4(b) hereof, but neither the Company nor the Rights Agent has or shall
have any liability to any holder of Rights or any other Person as a result of the Company’s failure to make any
determination with respect to an Acquiring Person or its Related Persons or transferees hereunder.

 

    - 20 -

     

    

 

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

 

(g)              
Except for those provisions herein that expressly survive the termination of this Agreement, this Agreement shall terminate
upon the earlier of the Expiration Date and such time as all outstanding Rights have been exercised, redeemed or exchanged hereunder.

 

	Section 8.	Cancellation and Destruction of Rights Certificates.

 

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

 

	Section 9. 	Reservation and Availability of Capital Stock.

 

(a)              
The Company shall cause to be reserved and kept available out of its authorized and unissued shares of Preferred Stock (and
following the occurrence of a Triggering Event, out of its authorized and unissued shares of Common Stock and/or other securities
or out of its authorized and issued shares held in its treasury), a number of shares of Preferred Stock (and, following the occurrence
of a Triggering Event, shares of Common Stock and/or other securities) that, as provided in this Agreement, including Section 11(a)(iii)
hereof, shall be sufficient to permit the exercise in full of all outstanding Rights. Upon the occurrence of any events resulting
in an increase in the aggregate number of shares of Preferred Stock (or Common Stock and/or other equity securities of the Company)
issuable upon exercise of all outstanding Rights above the number then reserved, the Company shall make appropriate increases in
the number of shares so reserved.

 

    - 21 -

     

    

 

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

 

(c)              
If the Company is required to file a registration statement pursuant to the Securities Act with respect to the securities
purchasable upon exercise of the Rights, the Company shall use its commercially reasonable efforts to (i) file, as soon as
practicable following the earliest date after the Flip-In Event on which the consideration to be delivered by the Company upon
exercise of the Rights has been determined in accordance with this Agreement, or as soon as is required by law following the Distribution
Date, as the case may be, such registration statement; (ii) cause such registration statement to become effective as soon
as practicable after such filing; and (iii) cause such registration statement to remain effective (and to include a prospectus
at all times complying with the requirements of the Securities Act) until the earlier of (A) the date as of which the Rights
are no longer exercisable for the securities covered by such registration statement, and (B) the Expiration Date. The Company
shall also take such action as may be appropriate under, or to ensure compliance with, the securities or “blue sky”
laws of the various states in connection with the exercisability of the Rights. The Company may temporarily suspend, with prompt
written notice thereof to the Rights Agent, for a period of time not to exceed ninety (90) days after the date set forth in clause
(i) of the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare and file such registration
statement and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement stating that
the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension
has been rescinded (in each case, with prompt written notice to the Rights Agent and until such written notice is received by the
Rights Agent, the Rights Agent may presume conclusively that such suspension has not been implemented or has not been rescinded,
as the case may be). In addition, if the Company shall determine that a registration statement is required following the Distribution
Date, the Company may temporarily suspend (with prompt written notice thereof to the Rights Agent) the exercisability of the Rights
until such time as a registration statement has been declared effective. Notwithstanding any provision of this Agreement to the
contrary, (i) the Rights shall not be exercisable in any jurisdiction if the requisite qualification in such jurisdiction shall
not have been obtained, the exercise thereof shall not be permitted under applicable law, or an effective registration statement
is required and shall not have been declared effective or has been suspended and (ii) the Company’s registration and related
obligations set forth in this Agreement shall be deferred or delayed until such time as the Company becomes current in its filing
obligations under the Exchange Act.

 

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

 

    - 22 -

     

    

 

(e)               The
Company shall pay when due and payable any and all documentary, stamp or transfer tax, or other tax or governmental charge,
that is payable in respect of the issuance and delivery of the Rights Certificates or the issuance and delivery of any
certificates or depository receipts or entries in the Book Entry account system of the transfer agent for the Preferred Stock
for a number of one one-thousandths of a share of Preferred Stock (or Common Stock and/or other equity securities of the
Company that may be delivered upon exercise of the Rights) upon the exercise of Rights; provided, however, the
Company shall not be required to pay any such tax or governmental charge that may be payable in connection with the issuance
or delivery of any of any certificates or depositary receipts or entries in the Book Entry account system of the transfer
agent for the Preferred Stock for a number of one one-thousandths of a share of Preferred Stock (or Common Stock and/or other
equity securities of the Company as the case may be) to any Person other than the registered holder of the Rights
Certificates evidencing the Rights surrendered for exercise. The Company shall not be required to issue or deliver any
certificates or depositary receipts or entries in the Book Entry account system of the transfer agent for the Preferred Stock
(or Common Stock and/or other equity securities of the Company as the case may be) to, or in a name other than that of, the
registered holder upon the exercise of any Rights until any such tax or governmental charge has been paid (any such tax or
governmental charge being payable by the holder of such Rights Certificate at the time of surrender) or until it has been
established to the Company’s or Rights Agent’s satisfaction that no such tax or governmental charge is due.

 

	Section 10. 	Preferred Stock Record Date.

 

Each Person in whose
name any certificate or entry in the Book Entry account system of the transfer agent for the Preferred Stock for a number of one
one-thousandths of a share of Preferred Stock (or Common Stock and/or other securities, as the case may be) is issued upon the
exercise of Rights shall be for all purposes the holder of record of such fractional shares of Preferred Stock (or Common Stock
and/or other securities, as the case may be) represented thereby on, and such certificate or entry shall be dated the date upon
which the Rights Certificate evidencing such Rights was duly surrendered and payment of the Exercise Price (and any applicable
transfer taxes and governmental charges) was made; provided, however, that if the date of such surrender and payment
is a date upon which the applicable transfer books of the Company are closed, such Person shall be deemed to have become the record
holder of such securities (fractional or otherwise) on, and such certificate or entry shall be dated, the next succeeding Business
Day on which the applicable transfer books of the Company are open; provided, further, that if delivery of a number
of one one-thousandths of a share of Preferred Stock is delayed pursuant to Section 9(c) hereof, such Persons shall be deemed to
have become the record holders of such number of one one-thousandths of a share of Preferred Stock only when such Preferred Stock
first become deliverable. Prior to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not be
entitled to any rights of a stockholder of the Company with respect to the securities for which the Rights are exercisable, including,
without limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall
not be entitled to receive any notice of any proceedings of the Company, except as provided herein.

 

    - 23 -

     

    

 

 

	Section
                          11.	Adjustment
                                         of Exercise Price, Number and Kind of Shares or Number of Rights.

 

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

 

(a)              
(i) In the event the Company at any time after the date hereof (A) declares a dividend on the Preferred Stock
payable in shares of Preferred Stock; (B) subdivides the outstanding Preferred Stock; (C) combines the outstanding Preferred
Stock into a smaller number of shares; or (D) issues any shares of its capital stock in a reclassification of Preferred Stock
(including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a), then the Exercise Price in effect at the time of the record date
for such dividend or of the effective date of such subdivision, combination or reclassification, and the number and kind of shares
(or fractions thereof) of Preferred Stock or capital stock, as the case may be, issuable on such date upon exercise of the Rights,
shall be proportionately adjusted so that the holder of any Right exercised after such time becomes entitled to receive, upon payment
of the Exercise Price then in effect, the aggregate number and kind of shares (or fractions thereof) of Preferred Stock or capital
stock, as the case may be, which, if such Right had been exercised immediately prior to such date, such holder would have owned
upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification; provided,
however, that in no event may the consideration to be paid upon the exercise of one Right be less than the aggregate par
value of the shares (or fractions thereof) of capital stock of the Company issuable upon exercise of one Right. If an event occurs
that would require an adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in
this Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii)
hereof.

 

(ii)              Subject
to Section 23 and Section 24 hereof, in the event that any Person, alone or together with its Related Persons, becomes an
Acquiring Person (the first occurrence of such event, the “Flip-In Event”), unless the event
causing such Person to become an Acquiring Person is a transaction set forth in Section 13(a) hereof, then proper provision
shall be made so that promptly following the Redemption Period, each holder of a Right (except as provided below and in
Section 7(e) hereof) shall thereafter have the right to receive, upon exercise thereof and payment of an amount equal to the
then current Exercise Price in accordance with the terms of this Agreement, in lieu of a number of one one-thousandths
of a share of Preferred Stock, a number of shares of Common Stock of the Company equal to the result obtained by
(A) multiplying the then current Exercise Price by the number of one one-thousandths of a share of Preferred Stock for
which a Right was or would have been exercisable immediately prior to the Flip-In Event, whether or not such Right was then
exercisable (and, following such Flip-In Event, references to the “Exercise Price” shall thereafter
mean such product for each Right and for all purposes of this Agreement except to the extent set forth in Section 13 hereof);
and (B) dividing that product by 50% of the Current Market Price of Common Stock on the date of such Flip-In Event (such
number of shares, the “Adjustment Shares”); provided, however, that in connection
with any exercise effected pursuant to this Section 11(a)(ii), no holder of Rights shall be entitled to receive Common Stock
(or other shares of capital stock of the Company) that would result in such holder, together with such holder’s
Affiliates and Associates, becoming the Beneficial Owner of more than 10% of the then-outstanding Common Stock. If a holder
would, but for the proviso in the immediately preceding sentence, be entitled to receive a number of shares that would
otherwise result in such holder, together with such holder’s Affiliates and Associates, becoming the Beneficial Owner
of in excess of 10% of the then-outstanding Common Stock (such shares, the “Excess Shares”), then
in lieu of receiving such Excess Shares and to the extent permitted by law or orders applicable to the Company, such holder
will only be entitled to receive an amount in cash or, at the election of the Company, a note or other evidence of
indebtedness maturing within nine months with a principal amount, equal to the Current Market Price of a share of Common
Stock at the Close of Business on the Trading Day following the date of exercise multiplied by the number of Excess Shares
that would otherwise have been issuable to such holder. The Company shall provide the Rights Agent with prompt written notice
of the identity of any such Acquiring Person, Related Person or the nominee or transferee 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, Related Person or the nominee or transferee of any of the foregoing,
unless and until it has received such notice.

 

    - 24 -

     

    

 

(iii)           
In the event that the number of shares of Common Stock authorized by the Certificate of Incorporation, but not outstanding,
or reserved for issuance for purposes other than upon exercise of the Rights, is not sufficient to permit the exercise in full
of the Rights in accordance with the foregoing clause (ii), the Board shall, to the extent permitted by applicable law and by any
agreements or instruments then in effect to which the Company is a party, (A) determine the excess of (1) the value of
the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”) over (2) the Exercise
Price (such excess being the “Spread”), and (B) with respect to each Right (subject to Section 7(e)
hereof), make adequate provision to substitute for some or all of the Adjustment Shares, upon exercise of a Right and payment of
the applicable Exercise Price, (1) cash; (2) a reduction in the Exercise Price; (3) shares or fractions of a share
of Preferred Stock or other equity securities of the Company (including, without limitation, shares, or units of shares, of Preferred
Stock which the Board has determined to have the same value as shares of Common Stock) (such shares of equity securities being
herein called “Common Stock Equivalents”); (4) debt securities of the Company; (5) other assets;
or (6) any combination of the foregoing, in each case having an aggregate value equal to the Current Value, as determined
by the Board based upon the advice of a financial advisor selected by the Board; provided, however, if the Company
has not made adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the later of (x) the
Flip-In Event; and (y) the date on which the Redemption Period expires (the later of (x) and (y) being referred to herein
as the “Flip-In Trigger Date”), then the Company shall deliver, upon the surrender for exercise of a
Right and without requiring payment of the Exercise Price, shares of Common Stock (to the extent available), and then, if necessary
such number or fractions of shares of Preferred Stock (to the extent available) and then, if necessary, cash, which shares and/or
cash have an aggregate value equal to the Spread.

 

If, upon the
occurrence of the Flip-In Event, the Board determines in good faith that it is likely that sufficient additional shares of
Common Stock could be authorized for issuance upon exercise in full of the Rights, then if the Board 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 Flip-In
Trigger Date, in order that the Company may seek stockholder approval for the authorization of such additional shares (such
period, as it may be extended, the “Substitution Period”). To the extent that action is to be taken
pursuant to the preceding provisions of this Section 11(a)(iii), the Company (aa) shall provide, subject to Section 7(e)
hereof, that such action shall apply uniformly to all outstanding Rights; and (bb) may suspend the exercisability of the
Rights until the expiration of the Substitution Period in order to seek an authorization of additional shares and/or to
decide the appropriate form of distribution to be made pursuant to the second sentence of this Section 11(a)(iii) and to
determine the value thereof. In the event of any such suspension, the Company shall issue a public announcement (with prompt
written notice thereof to the Rights Agent) stating that the exercisability of the Rights has been temporarily suspended, as
well as a public announcement (with prompt written notice thereof to the Rights Agent) at such time as the suspension is no
longer in effect. For purposes of this Section 11(a)(iii), the value of the Common Stock shall be the Current Market Price of
the Common Stock on the Flip-In Trigger Date and the value of any Common Stock Equivalents shall have the same value as the
Common Stock on such date. The Board may establish procedures to allocate the right to receive shares of Common Stock upon
the exercise of the Rights among holders of Rights pursuant to this Section 11(a)(iii).

 

    - 25 -

     

    

 

(b)              
In case the Company fixes a record date for the issuance of rights, options or warrants to all holders of Preferred Stock
entitling them (for a period expiring within forty-five (45) days after such record date) to subscribe for or purchase Preferred
Stock (or shares having the same voting rights, powers, designations, preferences and relative, participating, optional or other
special rights as the shares of Preferred Stock (“Equivalent Preferred Stock”)) or securities convertible
into Preferred Stock or Equivalent Preferred Stock at a price per share of Preferred Stock or per share of Equivalent Preferred
Stock (or having a conversion price per share, if a security convertible into Preferred Stock or Equivalent Preferred Stock) less
than the Current Market Price of the Preferred Stock on such record date, the Exercise Price to be in effect after such record
date shall be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator
of which shall be the number of shares of Preferred Stock or Equivalent Preferred Stock outstanding on such record date, plus the
number of shares of Preferred Stock or Equivalent Preferred Stock which the aggregate offering price of the total number of shares
of Preferred Stock and/or Equivalent Preferred Stock so to be offered (and/or the aggregate initial conversion price of the convertible
securities so to be offered) would purchase at such Current Market Price, and the denominator of which shall be the number of shares
of Preferred Stock or Equivalent Preferred Stock outstanding on such record date, plus the number of additional shares of Preferred
Stock and/or Equivalent Preferred Stock to be offered for subscription or purchase (or into which the convertible securities so
to be offered are initially convertible); provided, however, that in no event may 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 by delivery of consideration all or part of which may be in a form other
than cash, the value of such consideration shall be determined by the Board, whose determination shall be described in a statement
filed with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. Shares of Preferred Stock or
Equivalent Preferred Stock owned by or held for the account of the Company or any Subsidiary will not be deemed outstanding for
the purpose of such computation. Such adjustment shall be made successively whenever such a record date is fixed, and in the event
that such rights, options or warrants are not so issued, the Exercise Price shall be adjusted to be the Exercise Price that would
have been in effect if such record date had not been fixed.

 

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

 

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

 

    - 26 -

     

    

 

(e)              
If, as a result of an adjustment made pursuant to Sections 11(a)(ii) or 13(a) hereof, the holder of any Right thereafter
exercised becomes entitled to receive any shares of capital stock other than Preferred Stock, the number of such other shares shall
be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with
respect to the Preferred Stock contained in Sections 11(a), (b), (c), (d), (f), (g), (h), (i), (j), (k) and (l) hereof, 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.

 

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

 

(g)              
Unless the Company has exercised its election pursuant to Section 11(h), upon each adjustment of the Exercise Price as a
result of the calculations made in Sections 11(b) and (c) hereof, each Right outstanding immediately prior to the making of such
adjustment will thereafter evidence the right to purchase, at the adjusted Exercise Price, a number of one one-thousandths of a
share of Preferred Stock (calculated to the nearest one-millionth of a share) obtained by (i) multiplying (A) the number
of one one-thousandths of a share covered by a Right immediately prior to this adjustment by (B) the Exercise Price in effect
immediately prior to such adjustment of the Exercise Price; and (ii) dividing the product so obtained by the Exercise Price
in effect immediately after such adjustment of the Exercise Price.

 

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

 

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

 

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

 

    - 27 -

     

    

 

(k)              
In any case in which this Section 11 requires that an adjustment in the Exercise Price be made effective as of a record
date for a specified event, the Company may elect to defer (with prompt written notice thereof to the Rights Agent, and until such
written notice is received by the Rights Agent, the Rights Agent may presume conclusively that no such election has occurred) until
the occurrence of such event the issuance to the holder of any Right exercised after such record date of that number of one one-thousandths
of a share of Preferred Stock and shares of other capital stock or securities of the Company, if any, issuable upon such exercise
over and above the number of one one-thousandths of a share of Preferred Stock and shares of other capital stock or securities
of the Company, if any, issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment; provided,
however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s
right to receive such additional shares (fractional or otherwise) or securities upon the occurrence of the event requiring such
adjustment.

 

(l)               
Notwithstanding anything in this Section 11 to the contrary, prior to the Distribution Date, the Company is entitled to
make such adjustments in the Exercise Price, in addition to those adjustments expressly required by this Section 11, to the extent
that the Board determines that any (i) consolidation or subdivision of the Preferred Stock; (ii) issuance wholly for
cash of any shares of Preferred Stock at less than the Current Market Price; (iii) issuance wholly for cash of shares of Preferred
Stock or securities that by their terms are convertible into or exchangeable for shares of Preferred Stock; (iv) stock dividends;
or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of
its Preferred Stock is taxable to such holders or reduces the taxes payable by such holders.

 

(m)              After
the earlier of the Distribution Date and the Stock Acquisition Date and as long as any Rights are outstanding (other than
Rights that have become null and void pursuant to Section 7(e) hereof), the Company may not (i) consolidate with any
other Person (other than a direct or indirect, wholly-owned Subsidiary of the Company in a transaction that is not prohibited
by Section 11(n) hereof); (ii) merge with or into any other Person (other than a direct or indirect, wholly-owned
Subsidiary of the Company in a transaction that is not prohibited by Section 11(n) hereof); or (iii) sell or transfer
(or permit any Subsidiary to sell or transfer), in one transaction, or a series of transactions, assets or earning power
aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other
Person or Persons (other than the Company and/or any of its direct or indirect, wholly-owned Subsidiaries in one or more
transactions, none of which is prohibited by Section 11(n) hereof), if (A) at the time of or immediately after such
consolidation, merger or sale there are any rights, warrants or other instruments or securities outstanding or agreements in
effect that would substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights; or
(B) prior to, simultaneously with or immediately after such consolidation, merger or sale, the stockholders or other
Persons holding an equity interest in such Person that constitutes, or would constitute, the “Principal Party”
for purposes of Section 13(a) hereof shall have received a distribution of, or otherwise have transferred to them, the Rights
previously owned by such Person or any of its Related Persons; provided, however, this Section 11(m) shall not
affect the ability of any Subsidiary of the Company to consolidate with, merge with or into, or sell or transfer assets or
earning power to, any other Subsidiary of the Company.

 

    - 28 -

     

    

 

(n)              
After the earlier of the Distribution Date and the Stock Acquisition Date and as long as any Rights are outstanding (other
than Rights that have become null and void pursuant to Section 7(e) hereof), the Company may not, except as permitted by Sections
23, 24 and 27 hereof, take (or permit any Subsidiary of the Company to take) any action if at the time such action is taken it
is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded
by the Rights.

 

(o)              
Notwithstanding anything in this Agreement to the contrary, in the event that the Company, at any time after the date hereof
and prior to the Distribution Date, (i) declares a dividend on the outstanding shares of Common Stock payable in shares of
Common Stock; (ii) subdivides any outstanding shares of Common Stock; (iii) combines any of the outstanding shares of
Common Stock into a smaller number of shares; or (iv) issues any shares of its capital stock in a reclassification of the
Common Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), then the number of Rights associated with each share of Common Stock then outstanding or issued or delivered
thereafter but prior to the Distribution Date shall be proportionately adjusted so that the number of Rights thereafter associated
with each share of Common Stock following any such event equals the result obtained by multiplying the number of Rights associated
with each share of Common Stock immediately prior to such event by a fraction the numerator of which shall be the total number
of shares of Common Stock outstanding immediately prior to the occurrence of the event and the denominator of which shall be the
total number of shares of Common Stock outstanding immediately following the occurrence of such event. The adjustments provided
for in this Section 11(o) shall be made successively whenever such a dividend is declared or paid or such a subdivision, combination,
or reclassification is effected. If an event occurs that would require an adjustment under Section 11(a)(ii) hereof and this Section
11(o), the adjustments provided for in this Section 11(o) shall be in addition and prior to any adjustment required pursuant to
Section 11(a)(ii) hereof.

 

		Section
                          12.	Certificate
                                         of Adjusted Exercise Price or Number of Shares.

 

Whenever an
adjustment is made or any event affecting the Rights or their exercisability (including without limitation an event that
causes Rights to become null and void) occurs as provided in Section 11 or Section 13 hereof, the Company shall
(a) promptly prepare a certificate setting forth such adjustment or describing such event, and a brief reasonably
detailed statement of the facts, computations and methodology accounting for such adjustment; (b) promptly file with the
Rights Agent, and with each transfer agent for the Preferred Stock and the Common Stock, a copy of such certificate; and
(c) make available a brief summary thereof to each holder of a Rights Certificate (or, if prior to the Distribution
Date, each registered holder of shares of Common Stock) in accordance with Section 27 hereof. Notwithstanding the foregoing
sentence, the failure of the Company to make such certification or give such notice shall not affect the validity of or the
force or effect of the requirement for such adjustment. Any adjustment to be made pursuant to Section 11 or Section 13 hereof
shall be effective as of the date of the event giving rise to such adjustment. The Rights Agent shall be entitled to rely on
any such certificate and on any adjustment or statement therein contained and shall have no duty or liability with respect
thereto, and shall not be deemed to have knowledge of any such adjustment or any such event unless and until it shall have
received such certificate.

 

    - 29 -

     

    

 

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

 

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

 

(x) the Company consolidates with,
or merges with and into, any other Person (other than a direct or indirect, wholly-owned Subsidiary of the Company in a transaction
that is not prohibited by Section 11(n) hereof), and the Company is not the continuing or surviving entity of such consolidation
or merger;

 

(y) any Person (other than a direct
or indirect, wholly-owned Subsidiary of the Company in a transaction that is not prohibited by Section 11(n) hereof) consolidates
with, or merges with or into, the Company, and the Company is the continuing or surviving entity of such consolidation or merger
and, in connection with such consolidation or merger, all or part of the outstanding shares of Common Stock is converted into or
exchanged for stock or other securities of any other Person (or the Company) or cash or any other property; or

 

(z) the Company sells or otherwise
transfers (or one or more of its Subsidiaries sells or otherwise transfers) to any Person or Persons (other than the Company or
any of its direct or indirect, wholly-owned Subsidiaries in one or more transactions, none of which is prohibited by Section 11(n)
hereof), 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;

 

(any such event described in (x), (y),
or (z), a “Flip-Over Event”), then, in each such case, proper provision shall be made so that:

 

(i)                
each holder of a Right, except as provided in Section 7(e) hereof, upon the expiration of the Redemption Period, will have
the right to receive, upon the exercise of the Right at the then current Exercise Price in accordance with the terms of this Agreement,
and in lieu of a number of one one-thousandth shares of Preferred Stock, a number of validly authorized and issued, fully paid,
non-assessable and freely tradable shares of Common Stock of the Principal Party, free of any liens, encumbrances, rights of first
refusal, transfer restrictions or other adverse claims, equal to the result obtained by:

 

(A)            
multiplying such then current Exercise Price by the number of one one-thousandths of a share of Preferred Stock for which
such Right is exercisable immediately prior to the first occurrence of a Flip-Over Event (or, if the Flip-In Event has occurred
prior to the first occurrence of a Flip-Over Event, multiplying the number of one one-thousandths of a share of Preferred Stock
for which a Right would be exercisable hereunder but for such Flip-In Event by the Exercise Price that would be in effect hereunder
but for such Flip-In Event) (following the first occurrence of a Flip-Over Event, references to the “Exercise Price”
shall thereafter mean such product for each Right and for all purposes of this Agreement); and

 

(B)             
dividing that product by 50% of the then Current Market Price of the shares of Common Stock of such Principal Party on the
date of consummation of such Flip-Over Event (or the fair market value on such date of other securities or property of the Principal
Party, as provided for herein);

 

    - 30 -

     

    

 

(ii)             
such Principal Party shall be liable for, and shall assume, by virtue of such Flip-Over Event, all the obligations and duties
of the Company pursuant to this Agreement;

 

(iii)           
the term “Company” will thereafter be deemed to refer to such Principal Party, it being specifically intended
that the provisions of Section 11 hereof shall apply only to such Principal Party following the first occurrence of a Flip-Over
Event;

 

(iv)            
such Principal Party will take such steps (including, but not limited to, the reservation of a sufficient number of shares
of its Common Stock) in connection with the consummation of any such transaction as may be necessary to ensure that the provisions
hereof shall be applicable, as nearly as reasonably may be possible, to its shares of Common Stock thereafter deliverable upon
the exercise of the Rights; and

 

(v)              
the provisions of Section 11(a)(ii) hereof shall be of no further effect following the first occurrence of any Flip-Over
Event, and the Rights that have not theretofore been exercised shall thereafter become exercisable in the manner described in this
Section 13.

 

(b)              
“Principal Party” shall mean:

 

(i)                
in the case of any transaction described in clause (x) or (y) of the first sentence of Section 13(a) hereof, (A) the
Person (including the Company as successor thereto or as the surviving entity) that is the issuer of any securities or other equity
interests into which shares of Common Stock of the Company are converted in such merger or consolidation, or, if there is more
than one such issuer, the issuer of Common Stock that has the highest aggregate Current Market Price; and (B) if no securities
or other equity interests are so issued, (1) the Person that is the other constituent party to such merger, if such Person survives
the merger, or, if there is more than one such Person, the Person, the Common Stock of which has the highest aggregate Current
Market Price or (2) 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 (3) the Person resulting from the consolidation; and

 

(ii)              in
the case of any transaction described in clause (z) of the first sentence of Section 13(a) hereof, the Person that is the
party receiving the largest portion of the assets or earning power transferred pursuant to such transaction or transactions,
or, if each Person that is a party to such transaction or transactions receives the same portion of the assets or earning
power transferred pursuant to such transaction or transactions or if the Person receiving the largest portion of the assets
or earning power cannot be determined, whichever Person that has received assets or earning power pursuant to such
transaction or transactions, the Common Stock of which has the highest aggregate Current Market Price; provided, however,
that in any such case: (1) if the Common Stock of such Person is not at such time and has not been continuously over the
preceding twelve (12) month period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect
Subsidiary of another Person the Common Stock of which is and has been so registered, “Principal Party” will
refer to such other Person; (2) if the Common Stock of such Person is not and has not been so registered and such Person
is a Subsidiary, directly or indirectly, of more than one Person, the Common Stocks of two or more of which are and have been
so registered, “Principal Party” will refer to whichever of such Persons is the issuer of the Common Stock having
the highest aggregate market value; and (3) if the Common Stock of such Person is not and has not been so registered and
such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned, directly
or indirectly, by the same Person, the rules set forth in (1) and (2) above will apply to each of the chains of ownership
having an interest in such joint venture as if such party were a Subsidiary of both or all of such joint venturers, and the
Principal Parties in each such chain shall bear the obligations set forth in this Section 13 in the same ratio as their
direct or indirect interests in such Person bear to the total of such interests.

 

    - 31 -

     

    

 

(c)              
The Company may not consummate any Flip-Over Event unless the Principal Party has a sufficient number of authorized shares
of its Common Stock that have not been issued (or reserved for issuance) or that are held in its treasury to permit the exercise
in full of the Rights in accordance with this Section 13 and unless prior thereto the Company and such Principal Party have executed
and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in paragraphs (a) and (b) of this
Section 13 and further providing that, as soon as practicable after the date of any such Flip-Over Event, the Principal Party,
at its own expense, shall:

 

(i)                
if the Principal Party is required to file a registration statement pursuant to the Securities Act with respect to the Rights
and the securities purchasable upon exercise of the Rights, (A) prepare and file such registration statement; (B) use
its best efforts to cause such registration statement to become effective as soon as practicable after such filing and remain effective
(and to include a prospectus at all times complying with the requirements of the Securities Act) until the Expiration Date; and
(C) take such action as may be required to ensure that any acquisition of such securities that may be acquired upon exercise
of the Rights complies with any applicable state security or “blue sky” laws as soon as practicable following the execution
of such agreement;

 

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

 

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

 

(iv)             use
its best efforts, if such Common Stock of the Principal Party is listed or admitted to trading on NASDAQ, the NYSE or on
another securities exchange, to list or admit to trading (or continue the listing of) the Rights and the securities that may
be acquired upon exercise of the Rights on NASDAQ, the NYSE or on such securities exchange, or if the securities of the
Principal Party that may be acquired upon exercise of the Rights are not listed or admitted to trading on NASDAQ, the NYSE or
a securities exchange, to cause the Rights and the securities that may be acquired upon exercise of the Rights to be
authorized for quotation on any other system then in use; and

 

    - 32 -

     

    

 

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

 

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

 

(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 prior to any Person becoming an Acquiring Person, this
Agreement and the rights of holders of Rights hereunder shall be terminated in accordance with Section 7(a).

 

		Section
                          14.	Fractional
                                         Rights; Fractional Shares; Waiver.

 

(a)               The
Company is not required to issue fractions of Rights except prior to the Distribution Date as provided in Section 11(o)
hereof, or to distribute Rights Certificates that evidence fractional Rights. In lieu of such fractional Rights, the Company
may pay to the Persons to which such fractional Rights would otherwise be issuable an amount in cash equal to such fraction
of the market value of a whole Right. For purposes of this Section 14(a), the market value of a whole Right is the Closing
Price of the Rights for the Trading Day immediately prior to the date that such fractional Rights would have been otherwise
issuable.

 

    - 33 -

     

    

 

(b)              
The Company is not required to issue fractions of shares of Preferred Stock (other than fractions which are integral multiples
of one one-thousandth of a share of Preferred Stock) upon exercise of the Rights or to distribute certificates which evidence fractional
shares of Preferred Stock (other than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock).
In lieu of fractional shares of Preferred Stock that are not integral multiples of one one-thousandth of a share of Preferred Stock,
the Company may pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an
amount in cash equal to the same fraction of the Current Market Price of one one-thousandth of a share of Preferred Stock. For
purposes of this Section 14(b), the Current Market Price of one one-thousandth of a share of Preferred Stock is one one-thousandth
of the Closing Price of a share of Preferred Stock for the Trading Day immediately prior to the date of such exercise.

 

(c)              
Following the occurrence of one of the events specified in Section 11 hereof giving rise to the right to receive Common
Stock, Common Stock Equivalents or other securities upon the exercise of a Right, the Company will not be required to issue fractions
of shares of Common Stock, Common Stock Equivalents or other securities upon exercise of the Rights or to distribute certificates
which evidence fractional shares of Common Stock, Common Stock Equivalents or other securities. In lieu of fractional shares of
Common Stock, Common Stock Equivalents or other securities, the Company may pay to the registered holders of Rights Certificates
at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the Current Market Price
of one share of Common Stock, Common Stock Equivalents or other securities. For purposes of this Section 14(c), the Current Market
Price of one share of Common Stock is the Closing Price of one share of Common Stock 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 such holder’s right to receive any fractional
Rights or any fractional shares upon exercise of a Right, except as permitted by this Section 14.

 

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

 

		Section
                          15.	Rights
                                         of Action.

 

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

 

    - 34 -

     

    

 

		Section
                          16.	Agreement
                                         of Rights Holders.

 

Every holder of a Right,
by accepting such Right, consents and agrees with the Company and the Rights Agent and with every other holder of a Right that:

 

(a)              
prior to the Distribution Date, the Rights shall be evidenced by the balances indicated in the Book Entry account system
of the transfer agent for the Common Stock registered in the names of the holders of Common Stock (which Common Stock shall also
be deemed to represent certificates for Rights) or, in the case of certificated shares, the certificates for the Common Stock registered
in the names of the holders of the Common Stock (which certificates for shares of Common Stock also constitute certificates for
Rights) and each Right is transferable only in connection with the transfer of the Common Stock;

 

(b)              
after the Distribution Date, the Rights Certificates shall be transferable only on the registry books of the Rights Agent
if surrendered at the office of the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper form of
assignment and with the appropriate forms and certificates properly completed and duly executed, as determined in the sole discretion
of the Rights Agent;

 

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

 

(d)               notwithstanding
anything in this Agreement to the contrary, neither the Company nor the Rights Agent has any liability to any holder of a
Right or any other Person as a result of the inability of the Company or the Rights Agent to perform any of its or their
obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree, judgment or
ruling (whether interlocutory or final) issued by a court of competent jurisdiction or by a governmental, regulatory,
self-regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or
enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation; provided, however,
the Company shall use its commercially reasonable efforts to have any such injunction, order, decree, judgment or ruling
lifted or otherwise overturned as promptly as practicable.

 

    - 35 -

     

    

 

		Section
                          17.	Rights
                                         Certificate Holder Not Deemed a Stockholder.

 

No holder, as such,
of any Rights Certificate is entitled to vote, receive dividends or be deemed for any purpose the holder of the shares of Preferred
Stock or any other securities of the Company that may at any time be issuable on the exercise of the Rights represented thereby,
nor shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Rights Certificate,
as such, any of the rights of a 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, except as provided
in Section 26 hereof, to receive notice of meetings or other actions affecting stockholders, or to receive dividends or subscription
rights, or otherwise, until the Right evidenced by such Rights Certificate have been exercised in accordance with the provisions
hereof.

 

		Section
                          18.	Duties
                                         of Rights Agent.

 

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

 

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

 

(b)               Whenever
in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or
matter (including, without limitation, the identity of any Acquiring Person and the determination of the Current Market
Price) be proved or established by the Company prior to taking, suffering or omitting to take any action hereunder, such fact
or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a certificate signed by the Chairman of the Board, the Chief Executive Officer, Chief Financial
Officer, Chief Operating Officer, General Counsel, Chief Accounting Officer, Chief Strategy and Administrative Officer,
Senior Vice President or any other officer 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, in the absence of bad faith, under the provisions of this
Agreement in reliance upon such certificate. The Rights Agent shall have no duty to act without such a certificate from an
officer of the Company as set forth in the preceding sentence.

 

    - 36 -

     

    

 

(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 (which gross negligence, bad faith or willful misconduct must be determined by a court of competent jurisdiction
in a final non-appealable order, judgment, decree or ruling. 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,
without limitation, lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage and regardless
of the form of the action; and the Company agrees to indemnify the Rights Agent and its affiliates, directors, employees, representatives
and advisors and to hold them harmless to the fullest extent permitted by law against any loss, liability or expense incurred as
a result of claims for special, punitive, incidental, indirect or consequential loss or damage of any kind whatsoever. Any liability
of the Rights Agent under this Agreement will be limited to the amount of annual fees paid by the Company to the Rights Agent during
the twelve (12) months immediately preceding the event for which recovery from the Rights Agent is being sought.

 

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

 

(e)              
The Rights Agent shall not have any liability for nor be under any responsibility in respect of the validity of this Agreement
or the execution and delivery hereof (except the due execution and delivery hereof by the Rights Agent) or for the validity or
execution of any Rights Certificate (except its countersignature thereon) or any modification or order of any court, tribunal or
governmental authority in connection with the foregoing; nor will it be liable or responsible for any breach by the Company of
any covenant or failure by the Company to satisfy any condition contained in this Agreement or in any Rights Certificate; nor will
it be liable or responsible for any change in the exercisability of the Rights (including, but not limited to, the Rights becoming
null and void pursuant to Section 7(e) hereof) or any change or adjustment in the terms of the Rights including, but not limited,
to any adjustment required under the provisions of Sections 11, 13, 23 or 24 hereof or for the manner, method or amount of any
such change or adjustment or the ascertaining of the existence of facts that would require any such change or adjustment (except
with respect to the exercise of Rights evidenced by Rights Certificates after receipt by the Rights Agent of the certificate describing
any such adjustment contemplated by Section 12 hereof, upon which the Rights Agent may rely); nor will it by any act hereunder
be deemed to make any representation or warranty as to the authorization or reservation of any shares of the Common Stock, the
Preferred Stock or any other securities to be issued pursuant to this Agreement or any Rights Certificate or as to whether any
shares of Common Stock, Preferred Stock or any other securities will, when so issued, be validly authorized and issued, fully paid
and non-assessable.

 

(f)               
The Company shall perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered
all such further acts, instruments and assurances as may reasonably be required by the Rights Agent for the performance by the
Rights Agent of its duties under this Agreement.

 

    - 37 -

     

    

 

(g)              
The Rights Agent is hereby authorized and directed to accept verbal or written instructions with respect to the performance
of its duties hereunder and certificates delivered pursuant to any provision hereof from the Chairman of the Board, the Chief Executive
Officer, Chief Financial Officer, Chief Operating Officer, General Counsel, Chief Accounting Officer, Chief Strategy and Administrative
Officer, Senior Vice President or any other officer of the Company, and to apply to such officers for advice or instructions in
connection with its duties, and such advice or instruction shall be full authorization and protection to the Rights Agent and the
Rights Agent shall have no duty to independently verify the accuracy or completeness of such advice or such instructions and shall
incur no liability for or in respect of any action taken or suffered or omitted to be taken by it, in the absence of bad faith,
in accordance with such advice or instructions of any such officer or for any delay in acting while waiting for such advice or
those instructions. The Rights Agent will not be held to have notice of any change of authority of any person until its receipt
of written notice thereof from the Company in accordance with Section 27 hereof. 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 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 such omission
shall be effective. The Rights Agent shall be fully authorized and protected in relying upon the most recent verbal or written
instructions received from any such officer, and shall not be liable for any action taken, suffered or omitted to be taken by the
Rights Agent in the absence of bad faith in accordance with a proposal included in any such application on or after the date specified
in such application (which date shall not be less than five (5) Business Days after the date any officer of the Company actually
receives such application unless any such officer shall have consented in writing to an earlier date) unless, prior to taking any
such action (or the effective date in the case of an omission), the Rights Agent shall have received written instructions in response
to such application specifying the action to be taken, suffered or omitted to be taken.

 

(h)              
The Rights Agent and any stockholder, affiliate, director, officer, employee, agent or representative of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction
in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though
it were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights Agent (or its stockholders, affiliates,
directors, officers, employees, agents or representatives) 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 liable for any act, omission, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company,
any holder of Rights or any other Person resulting from any such act, default, neglect or misconduct, absent gross negligence,
bad faith or willful misconduct (each as determined by a final, non-appealable order, judgment decree or ruling of a court of competent
jurisdiction) in the selection and continued employment thereof.

 

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

 

    - 38 -

     

    

 

(k)              
If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, either (i) the certificate
attached to the form of assignment or form of election to purchase, as the case may be, has either not been completed or indicates
an affirmative response to clause 1 and/or 2 thereof, or (ii) any other actual or suspected irregularity exists, the Rights Agent
shall not take any further action with respect to such requested exercise or transfer without first consulting with the Company,
and the Rights Agent shall not be liable for any delays arising from the duties under this Section 18(k).

 

(l)                
In the event that the Rights Agent reasonably believes any ambiguity or uncertainty exists hereunder or in any notice, instruction,
direction, request or other communication, paper or document received by the Rights Agent hereunder, the Rights Agent shall, as
soon as practicable, inform the Company or such Person seeking clarification and may, in its sole discretion, refrain from taking
any action, and will be fully protected and will not be liable or responsible in any way to the Company or other Person or entity
for refraining from taking such action, unless the Rights Agent receives written instructions signed by the Company which eliminates
such ambiguity or uncertainty to the reasonable satisfaction of the Rights Agent.

 

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

 

(n)              
The Rights Agent shall not be required to take notice or be deemed to have notice of any event or condition hereunder, including
any event or condition that may require action by the Rights Agent, unless the Rights Agent shall be specifically notified in writing
of such event or condition by the Company, and all notices or other instruments required by this Agreement to be delivered to the
Rights Agent must, in order to be effective, be received by the Rights Agent as specified in Section 27 hereof, and in the absence
of such notice so delivered, the Rights Agent may conclusively assume no such event or condition exists.

 

		Section
                          19.	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, to reimburse the Rights Agent for all of its reasonable and documented expenses and
counsel fees and other disbursements incurred in the preparation, negotiation, delivery, amendment, administration and
execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify
the Rights Agent and its affiliates, employees, officers, directors, representatives and advisors for, and to hold it
harmless against, any loss, liability, damage, demand, judgment, fine, penalty, claim, settlement, cost or expense (including
the reasonable and documented fees and expenses of legal counsel), incurred without gross negligence, bad faith or willful
misconduct on the part of the Rights Agent (each as determined by a final judgment of a court of competent jurisdiction) for
any action taken, suffered or omitted to be taken by the Rights Agent pursuant to or arising from this Agreement or in
connection with the acceptance, administration, exercise and performance of its duties under this Agreement, including the
reasonable and documented costs and expenses of defending against any claim of liability arising therefrom, directly or
indirectly, or enforcing its rights hereunder.

 

    - 39 -

     

    

 

(b)              
The Rights Agent shall be authorized and protected and shall incur no liability for or in respect of any action taken, suffered
or omitted to be taken by it in connection with its acceptance and administration of this Agreement and the exercise and performance
of its duties hereunder in reliance upon any Rights Certificate or Book Entry for Common Stock or other securities of the Company,
instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate,
statements or other paper or document believed by it to be genuine and to be signed, executed and shall not be obligated to verify
the accuracy or completeness of such instrument, power of attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statements or other paper or document and, where necessary, guaranteed, verified or acknowledged, by the proper Person
or Persons, or upon any written instructions or statements from the Company with respect to any matter relating to its acting as
Rights Agent hereunder without further inquiry or examination on its part, or otherwise upon the advice or opinion of counsel as
set forth in Section 18(a) 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 action in connection therewith unless and until it has received such notice in writing.

 

(c)              
Notwithstanding anything in this Agreement to the contrary, in no case shall the Company be liable with respect to any action,
proceeding, suit or claim against the Rights Agent unless the Rights Agent shall have notified the Company in accordance with Section
27 hereof of the assertion of such action, proceeding, suit or claim against the Rights Agent, promptly after the Rights Agent
shall have notice of such assertion of an action, proceeding, suit or claim or have been served with the summons or other first
legal process giving information as to the nature and basis of the action, proceeding, suit or claim; provided that the failure
to provide such notice promptly shall not affect the rights of the Rights Agent hereunder and shall not relieve the Company of
any liability to the Rights Agent, except to the extent that such failure actually prejudices the Company. The Company shall be
entitled to participate at its own expense in the defense of any such action, proceeding, suit or claim, and, if the Company so
elects, the Company shall assume the defense of any such action, proceeding, suit or claim, unless such action, proceeding, suit
or claim is (a) brought by the Rights Agent or (b) the Rights Agent reasonably determines that there may be a conflict of interest
between the Company and the Rights Agent in the defense of an action and the Rights Agent does in fact assume the defense. In the
event that the Company assumes such defense, the Company shall not thereafter be liable for the fees and expenses of any counsel
retained by the Rights Agent, so long as (a) the Company shall retain counsel satisfactory to the Rights Agent, in the exercise
of its reasonable judgment, to defend such action, proceeding, suit or claim, (b) there is no actual conflict of interest between
the Company and the Rights Agent, and/or (c) the Rights Agent does not have defenses that are adverse to or different from any
defenses of the Company. The Rights Agent shall not settle any litigation in connection with any action, proceeding, suit or claim
with respect to which it may seek indemnification from the Company, without the prior written consent of the Company, which shall
not be unreasonably withheld.

 

(d)               The
provisions of this Section 19 and Section 18 shall survive the termination or expiration of this Agreement, the resignation,
replacement or removal of the Rights Agent and the exercise, termination and expiration of the Rights. Notwithstanding
anything in this Agreement to the contrary, in no event shall the Rights Agent be liable for special, punitive, incidental,
indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the
Rights Agent has been advised of the likelihood of such loss or damage and regardless of the form of the action; and the
Company agrees to indemnify the Rights Agent and its affiliates, directors, employees, representatives and advisors and hold
them harmless to the fullest extent permitted by law against any loss, liability or expense incurred as a result of claims
for special, punitive, incidental, indirect or consequential loss or damages of any kind whatsoever provided in each case
that such claims are not based on the gross negligence, bad faith or willful misconduct of the Rights Agent (each as
determined by a final judgment of a court of competent jurisdiction). Any liability of the Rights Agent under this Agreement
shall be limited to the amount of annual fees paid by the Company to the Rights Agent during the 12 months immediately
preceding the event for which recovery from the Rights Agent is being sought.

 

    - 40 -

     

    

 

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

 

(a)              
Any Person into which the Rights Agent or any successor Rights Agent is merged or with which the Rights Agent or any successor
Rights Agent is consolidated, or any Person resulting from any merger or consolidation to which the Rights Agent or any successor
Rights Agent is a party, or any Person succeeding to the corporate trust, stock transfer or other stockholder services business
of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the
execution or filing of any paper or any further act on the part of any of the parties hereto; but only if such Person would
be eligible for appointment as a successor Rights Agent under the provisions of Section 21 hereof. The purchase of all or substantially
all of the Rights Agent’s assets employed in the performance of transfer agent activities shall be deemed a merger or consolidation
for purposes of this Section 20. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement,
any of the Rights Certificates have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature
of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights
Certificates have not been countersigned, any successor Rights Agent may countersign such Rights Certificates either in the name
of the predecessor or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have the
full force provided in the Rights Certificates and in this Agreement.

 

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

 

	 	Section
    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 at least thirty (30)
days’ notice in writing to the Company in accordance with Section 27 hereof, and to each transfer agent of the
Preferred Stock and the Common Stock, by registered or certified mail, in which case the Company will give or cause to be
given written notice to the registered holders of the Rights Certificates by first-class mail. In the event the transfer
agency relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to have
resigned automatically and be discharged from its duties under this Agreement as of the effective date of such termination,
and the Company shall be responsible for sending any required notice. The Company may remove the Rights Agent or any
successor Rights Agent upon at least thirty (30) days’ notice in writing, mailed to the Rights Agent or successor
Rights Agent, as the case may be, and to each transfer agent of the Common Stock and Preferred Stock, by registered or
certified mail, and, if such removal occurs after the Distribution Date, to the holders of the Rights Certificates by
first-class mail. If the Rights Agent resigns or is removed or otherwise becomes incapable of acting, the Company shall
appoint a successor to the Rights Agent. If the Company fails to make such appointment within a period of thirty (30) days
after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Rights Agent or by the holder of a Rights Certificate (such holder shall, with such notice, submit
its Rights Certificate for inspection by the Company), then the incumbent Rights Agent or any registered holder of any Rights
Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights
Agent, whether appointed by the Company or by such a court, shall be (a) a Person organized and doing business under the laws
of the United States or any State thereof, in good standing, which is authorized under such laws to exercise corporate trust,
stock transfer or stockholder services powers and which at the time of its appointment as Rights Agent has, or with its
parent has, a combined capital and surplus of at least $50,000,000 or (b) an affiliate of a Person described in clause (a) of
this sentence. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent under this Agreement without further act or deed; but the
predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose in each case at
the sole expense of the Company. Not later than the effective date of any such appointment, the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Stock and the Preferred Stock,
and, if such appointment occurs after the Distribution Date, mail a notice thereof in writing to the registered holders of
the Rights Certificates. Failure to give any notice provided for in this Section 21, 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.

 

    - 41 -

     

    

 

		Section
                          22.	Issuance
                                         of New Rights Certificates.

 

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

 

		Section
                          23.	Redemption.

 

(a)              
The Board may, within its sole discretion, at any time before the Distribution Date (the “Redemption Period”)
authorize the Company to redeem all, but not less than all, of the then outstanding Rights at a redemption price of $0.001 per
Right, as such amount may be appropriately adjusted to reflect any stock split, reverse stock split, stock dividend or similar
transaction occurring after the date hereof (such redemption price, as adjusted, the “Redemption Price”).
Any such redemption will be effective immediately upon the action of the Board authorizing the same, unless such action of the
Board expressly provides that such redemption will be effective at a subsequent time or upon the occurrence or nonoccurrence of
one or more specified events (in which case such redemption will be effective in accordance with the provisions of such action
of the Board). The redemption of the Rights by the Board pursuant to this paragraph (a) may be made effective at such time, on
such basis and with such conditions as the Board may establish, in its sole discretion. The Company may, at its option, pay the
Redemption Price in cash, shares of Common Stock based on the Current Market Price or any other form of consideration deemed appropriate
by the Board.

 

(b)              
Immediately upon the action of the Board ordering the redemption of the Rights pursuant to paragraph (a) of this Section
23 (or such later time as the Board may establish for the effectiveness of such redemption), and without any further action and
without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall
be to receive the Redemption Price for each Right held. The Company shall promptly give (i) written notice to the Rights Agent
of any such redemption (and until such written notice is received by the Rights Agent, the Rights Agent may presume conclusively
that no such redemptions have occurred); and (ii) public notice of any such redemption; provided, however, that
the failure to give, or any defect in, any such notice will not affect the validity of such redemption. Within ten (10) days after
such action of the Board ordering the redemption of the Rights, 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 that is mailed in the manner
herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state
the method by which the payment of the Redemption Price shall be made. Neither the Company nor any of its Related Persons may redeem,
acquire or purchase for value any Rights at any time in any manner other than that specifically set forth in this Section 23 or
in Section 24 hereof, or other than in connection with the purchase of shares of Common Stock or the conversion or redemption of
shares of Common Stock in accordance with the applicable provisions of the Certificate of Incorporation prior to the Distribution
Date.

 

    - 42 -

     

    

 

(c)              
(i)             In the event the Company receives a Qualifying Offer and the
Board has not redeemed the outstanding Rights or exempted such Qualifying Offer from the terms of this Agreement or called a special
meeting of stockholders for the purpose of voting on whether or not to exempt such Qualifying Offer from the terms of this Agreement,
in each case, by the Close of Business on the date that is ninety (90) days following the commencement of such Qualifying Offer
within the meaning of Rule 14d-2(a) under the Exchange Act (the “Board Evaluation Period”), the holders
of record (or their duly authorized proxy) of twenty percent (20%) or more of the shares of Common Stock of the Company then outstanding
(excluding shares of Common Stock that are Beneficially Owned by the Person making the Qualifying Offer) (the “Requisite
Percentage”) may submit to the Board, not earlier than ninety (90) days nor later than one hundred twenty (120)
days following the commencement of such Qualifying Offer, a written demand complying with the terms of this Section 23(c) (the
 “Special Meeting Demand”) directing the Board to submit to a vote of stockholders at a special meeting
of the stockholders of the Company (a “Special Meeting”) a resolution exempting such Qualifying Offer
from the provisions of this Agreement (the “Qualifying Offer Resolution”). Any Special Meeting Demand
must be (A) delivered to the Secretary at the principal executive offices of the Company; and (B) signed by the demanding
stockholders (the “Demanding Stockholders”) or a duly authorized agent of the Demanding Stockholders.

 

(ii)             
After receipt of a Special Meeting Demand in proper form and in accordance with this Section 23(c) from Demanding Stockholders
holding the Requisite Percentage, the Board shall take such actions necessary or desirable to cause the Qualifying Offer Resolution
to be so submitted to a vote of stockholders at a Special Meeting to be convened within ninety (90) days following the last day
of the Board Evaluation Period (the “Special Meeting Period”) by including a proposal relating to adoption
of the Qualifying Offer Resolution in the proxy materials of the Company for the Special Meeting; provided, however,
that the Board may cause the Qualifying Offer Resolution to be submitted to a vote of stockholders at an annual meeting of the
stockholders of the Company if such annual meeting is to be convened during the Special Meeting Period; provided, further,
that if the Company at any time during the Special Meeting Period and prior to a vote on the Qualifying Offer Resolution enters
into a Definitive Acquisition Agreement, the Special Meeting Period may be extended (and any Special Meeting called in connection
therewith may be cancelled) if the Qualifying Offer Resolution is separately submitted to a vote at the same meeting as the Definitive
Acquisition Agreement. Subject to the requirements of applicable law, the Board may take a position in favor of or opposed to the
adoption of the Qualifying Offer Resolution, or no position with respect to the Qualifying Offer Resolution, as it determines to
be appropriate in the exercise of its fiduciary duties.

 

(iii)            In
the event that no Person has become an Acquiring Person prior to the Exemption Date and the Qualifying Offer continues to be
a Qualifying Offer and either (A) the Special Meeting has not been convened on or prior to the last day of the Special
Meeting Period (the “Outside Meeting Date”); or (B) if, at the Special Meeting at which a
quorum is established, a majority of the shares of Common Stock outstanding as of the record date for the Special Meeting
selected by the Board (excluding shares of Common Stock Beneficially Owned by the Person making the Qualified Offer and such
Person’s Related Persons) shall vote in favor of the Qualifying Offer Resolution, then the Qualifying Offer shall be
exempt from the application of this Agreement in all respects to such Qualifying Offer as long as it remains a Qualifying
Offer, such exemption to be effective on the Close of Business on (1) the Outside Meeting Date or (2) the date on
which the results of the vote on the Qualifying Offer Resolution at the Special Meeting are certified as official by the
appointed inspectors of election for the Special Meeting, as the case may be (the “Exemption
Date”). Notwithstanding anything herein to the contrary, no action or vote by stockholders not in compliance
with the provisions of this Section 23(c) shall serve to exempt any offer from the terms of this Agreement. Immediately upon
the Close of Business on the Exemption Date, and without any further action and without any notice, the right to exercise the
Rights with respect to the Qualifying Offer will terminate and, notwithstanding anything in this Agreement to the contrary,
the consummation of the Qualifying Offer shall not cause the offeror (or its Related Persons) to become an Acquiring Person;
and the Rights shall immediately expire and have no further force and effect upon such consummation.

 

    - 43 -

     

    

 

		Section
                          24.	Exchange.

 

(a)              
The Board may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then
outstanding and exercisable Rights (which shall not include Rights that have become null and void pursuant to the provisions of
Section 7(e) hereof) for shares of Common Stock at an exchange ratio of one share of Common Stock per each outstanding Right, as
appropriately adjusted to reflect any stock split, reverse stock split, stock dividend or similar transaction occurring after the
date hereof (such exchange ratio being hereinafter referred to as the “Exchange Ratio”). Notwithstanding
the foregoing, the Board is not empowered to effect such exchange at any time after any Acquiring Person, together with all of
its Related Persons, becomes the Beneficial Owner of 50% or more of the shares of Common Stock then outstanding. The exchange of
the Rights by the Board may be made effective at such time, on such basis and with such conditions as the Board in its sole discretion
may establish. From and after the occurrence of a Flip-Over Event, any Rights that theretofore have not been exchanged pursuant
to this Section 24(a) will thereafter be exercisable only in accordance with Section 13 hereof and may not be exchanged pursuant
to this Section 24(a).

 

(b)               Immediately
upon the action of the Board ordering the exchange of any Rights pursuant to paragraph (a) of this Section 24 and without any
further action or notice, the right to exercise such Rights will terminate and the only right thereafter of a holder of such
Rights shall be to receive a number of shares of Common Stock equal to the number of such Rights held by such holder
multiplied by the Exchange Ratio; provided, however, that in connection with any exchange effected pursuant to this Section
24(b), no holder of Rights shall be entitled to receive Common Stock (or other shares of capital stock of the Company) that
would result in such holder, together with such holder’s Affiliates and Associates, becoming the Beneficial Owner of
more than 10% of the then-outstanding Common Stock. If a holder would, but for the immediately preceding sentence, be
entitled to receive Excess Shares, in lieu of receiving such Excess Shares and to the extent permitted by law or orders
applicable to the Company, such holder will only be entitled to receive an amount in cash or, at the election of the Company,
a note or other evidence of indebtedness maturing within nine months with a principal amount, equal to the Current Market
Price of a share of Common Stock at the Close of Business on the Trading Day following the date the Board effects the
forgoing exchange multiplied by the number of Excess Shares that would otherwise have been issuable to such holder. The
exchange of the Rights by the Board may be made effective at such time, on such basis and with such conditions as the Board
in its sole discretion may establish. The Company shall promptly give (i) written notice to the Rights Agent of any such
exchange (and until such written notice is received by the Rights Agent, the Rights Agent may presume conclusively that no
such exchange has occurred); and (ii) public notice of any such exchange; provided, however, that the
failure to give, or any defect in, such notice will not affect the validity of such exchange. The Company promptly shall mail
a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry
books of the Rights Agent. Any notice that is mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of exchange will state the method by which the exchange of the shares of Common
Stock for Rights shall be effected and, in the event of any partial exchange, the number of Rights that shall be exchanged.
Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights that have become null
and void pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights.

 

    - 44 -

     

    

 

(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 Stock,
as such term is defined in Section 11(b)) such that the Current Market Price of one share of Preferred Stock (or Equivalent Preferred
Share) multiplied by such number or fraction is equal to the Current Market Price of one share of Common Stock as of the date of
such exchange.

 

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

 

    - 45 -

     

    

 

		Section
                          25.	Process
                                         to Seek Exemption.

 

Any Person who desires
to effect any acquisition of Common Stock that might, if consummated, result in such Person beneficially owning 10% or more of
the then-outstanding Common Stock (or, in the case of a Grandfathered Person, additional shares of Common Stock) (a “Requesting
Person”) may request that the Board grant an exemption with respect to such acquisition under this Agreement (an
 “Exemption Request”). An Exemption Request shall be in proper form and shall be delivered by registered
mail, return receipt requested, to the Secretary of the Company at the principal executive office of the Company. The Exemption
Request shall be deemed made upon receipt by the Secretary of the Company. To be in proper form, an Exemption Request shall set
forth (i) the name and address of the Requesting Person, (ii) the number and percentage of shares of Common Stock then Beneficially
Owned by the Requesting Person, together with all Affiliates and Associates of the Requesting Person, and (iii) a reasonably
detailed description of the transaction or transactions by which the Requesting Person would propose to acquire Beneficial Ownership
of Common Stock aggregating 10% or more of the then-outstanding Common Stock and the maximum number and percentage of shares of
Common Stock that the Requesting Person proposes to acquire. The Board shall endeavor to respond to an Exemption Request within
twenty (20) Business Days after receipt of such Exemption Request; provided, that the failure of the Board to make a determination
within such period shall be deemed to constitute the denial by the Board of the Exemption Request. The Requesting Person shall
respond promptly to reasonable and appropriate requests for additional information from the Company or the Board and its advisors
to assist the Board in making its determination. The Board shall only grant an exemption in response to an Exemption Request if
it receives, at the Board’s request, a report from the Company’s advisors to the effect that the acquisition of Beneficial
Ownership of Common Stock by the Requesting Person does not create a significant risk of material adverse tax consequences to the
Company or the Board otherwise determines in its sole discretion that the exemption is in the best interests of the Company. Any
exemption granted hereunder may be granted in whole or in part, and may be subject to limitations or conditions (including a requirement
that the Requesting Person agree that it will not acquire Beneficial Ownership of shares of Common Stock in excess of the maximum
number and percentage of shares approved by the Board), in each case as and to the extent the Board shall determine necessary or
desirable. Any Exemption Request may be submitted on a confidential basis and, except to the extent required by applicable law,
the Company shall maintain the confidentiality of such Exemption Request and determination of the Board with respect thereto, unless
the information contained in the Exemption Request or the determination of the Board with respect thereto otherwise becomes publicly
available. The Exemption Request shall be considered and evaluated by the Independent Directors who are also independent of the
Requesting Person and disinterested with respect to the Exemption Request, and the action of a majority of such Independent Directors
shall be deemed to be the determination of the Board for purposes of such Exemption Request. To the extent the Board grants a Person’s
Exemption Request pursuant to this Section 25, such Person shall be an “Exempt Person.”

 

		Section
                          26.	Notice
                                         of
                                         CErtain
                                         Events.

 

(a)              
In case the Company proposes, at any time after the earlier of the Distribution Date or the Stock Acquisition Date, (i) to
pay any dividend payable in stock of any class or series to the holders of Preferred Stock or to make any other distribution to
the holders of Preferred Stock (other than a regular quarterly cash dividend out of earnings or retained earnings of the Company);
(ii) to offer to the holders of Preferred Stock rights or warrants to subscribe for or to purchase any additional shares of
Preferred Stock or shares of stock of any class or any other securities, rights or options; (iii) to effect any reclassification
of Preferred Stock (other than a reclassification involving only the subdivision of outstanding shares of Preferred Stock); (iv) to
effect any consolidation or merger into or with any other Person (other than a Subsidiary of the Company in a transaction which
is not prohibited by Section 11(n) hereof) or to effect any sale or other transfer (or to permit one or more of its Subsidiaries
to effect any sale or other transfer), in one or more transactions, of more than 50% of the assets or earning power of the Company
and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in
one or more transactions none of which is prohibited by Section 11(n) hereof); or (v) to effect the liquidation, dissolution
or winding up of the Company, then, in each such case, the Company shall give to each registered holder of a Rights Certificate,
to the extent feasible, and to the Rights Agent in accordance with Section 27 hereof, a written notice of such proposed action,
which shall specify the record date for the purposes of such stock dividend, distribution of rights or warrants, or the date on
which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution or winding up is to take place and
the date of participation therein by the holders of the shares of 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 ten (10) days prior to the record date
for determining holders of the shares of Preferred Stock for purposes of such action and, in the case of any such other action,
at least ten (10) days prior to the date of the taking of such proposed action or the date of participation therein by the holders
of the shares of Preferred Stock, whichever is earlier; provided, however, that no such action shall be taken pursuant
to this Section 26(a) that will or would conflict with any provision of the Certificate of Incorporation; provided, further,
that no such notice is required pursuant to this Section 26 if any Subsidiary of the Company effects a consolidation or merger
with or into, or effects a sale or other transfer of assets or earning power to, any other Subsidiary of the Company.

 

(b)              
In case any Flip-In Event occurs, (i) the Company shall, as soon as practicable thereafter, give to each registered
holder of a Rights Certificate, to the extent feasible, and to the Rights Agent in accordance with Section 27 hereof, a written
notice of the occurrence of such event, which notice shall describe such event and the consequences of such event to holders of
Rights under Section 11(a)(ii) hereof; and (ii) all references in paragraph (a) of this Section 26 to Preferred Stock shall
be deemed thereafter to refer to Common Stock and/or, if appropriate, to any other securities that may be acquired upon exercise
of a Right.

 

(c)              
In case any Flip-Over Event occurs, then the Company shall, as soon as practicable thereafter, give to each registered holder
of a Rights Certificate, to the extent feasible, and to the Rights Agent in accordance with Section 27 hereof, a written notice
of the occurrence of such event, which notice shall describe such event and the consequences of such event to holders of Rights
under Section 13(a) hereof.

 

    - 46 -

     

    

 

		Section
                          27.	Notices.

 

Notices or demands
authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights Certificate to or on the Company
shall be sufficiently given or made if sent by first-class or express U.S. mail, FedEx or UPS, postage prepaid and properly addressed
(until another address is filed in writing by the Company with the Rights Agent) as follows:

 

If to the Company,
at its address at:

 

ProPetro Holding Corp.

1706 S. Midkiff, Bldg. B

Midland, TX 79701

Attention: General Counsel

 

with a copy to:

Vinson & Elkins L.L.P.

1001 Fannin Street, Suite 2500

Houston, TX 77002

Attention:  Alan Beck

 

Facsimile: (713) 615-5620

Email: abeck@velaw.com

 

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

 

American Stock Transfer & Trust
Company, LLC

59 Maiden Lane

New York, NY 10007

Attention: Client Services

 

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

 

	 	Section
    28.	Supplements and Amendments.

 

Prior to the
Distribution Date, the Company may, and the Rights Agent shall, if the Company so directs, supplement or amend any provision
of this Agreement without the approval of any holders of Rights, including, without limitation, to change the Final
Expiration Date to another date, including an earlier date. From and after the Distribution Date, the Company and the Rights
Agent may supplement or amend this Agreement without approval of any holders of Rights in order to (a) cure any
ambiguity; (b) correct or supplement any provision contained herein that may be defective or inconsistent with any other
provisions herein; (c) shorten or lengthen any time period hereunder; (d) otherwise change, amend, or supplement
any provisions hereunder in any manner that the Company and the Rights Agent may deem necessary or desirable; provided, however,
that from and after any Person becomes an Acquiring Person, this Agreement may not be supplemented or amended in any
manner that would (a) adversely affect the interests of the holders of Rights (other than Rights that have become null and
void pursuant to Section 7(e) hereof) as such or (b) cause this Agreement to become amendable other than in accordance with
this Section 28. Without limiting the foregoing, the Company, by action of the Board, may at any time before any Person
becomes an Acquiring Person amend this Agreement to make the provisions of this Agreement inapplicable to a particular
transaction by which a Person might otherwise become an Acquiring Person or to otherwise alter the terms and conditions of
this Agreement as they may apply with respect to any such transaction. Any such supplement or amendment shall be evidenced in
writing signed by the Company and the Rights Agent. Upon the delivery of a certificate from an appropriate officer of the
Company that states that the proposed supplement or amendment is in compliance with the terms of this Section 28, the Rights
Agent shall execute such supplement or amendment; provided, however, that any supplement or amendment that does
not amend Sections 18, 19, 20, 21, or this Section 28 in a manner adverse to the Rights Agent shall become effective
immediately upon execution by the Company, whether or not also executed by the Rights Agent. The Company shall provide within
three (3) Business Days of the adoption of an amendment to the Agreement written notification of such amendment to the Rights
Agent.

 

Notwithstanding anything
contained in this Agreement to the contrary, the Rights Agent may enter into any supplement or amendment that affects the Rights
Agent’s own rights, duties, obligations or immunities under this Agreement. The Rights Agent acknowledges that time is of
the essence in connection with its execution of any such proposed supplement or amendment. Any failure to execute such proposed
supplement or amendment shall not affect the validity of the actions taken by the Board of the Company pursuant to this Section
28.

 

Prior to the Distribution
Date, the interests of the holders of Rights shall be deemed coincident with the interests of the holders of Common Stock.

 

    - 47 -

     

    

 

		Section
                          29.	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
                          30.	Determinations
                                         and Actions by the Board.

 

For all purposes
of this Agreement, any calculation of the number of shares of Common Stock or any other class of capital stock outstanding at
any particular time, including for purposes of determining the particular percentage of such outstanding shares of Common
Stock of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i)
of the General Rules and Regulations under the Exchange Act. Except as otherwise specifically provided herein, the Board has
the exclusive power and authority to administer this Agreement and to exercise all rights and powers specifically granted to
the Board or to the Company hereunder, or as may be necessary or advisable in the administration of this Agreement,
including, without limitation, the right and power (a) to interpret the provisions of this Agreement, and (b) to
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 in accordance with Section 23 hereof, to exchange or not
exchange the rights in accordance with Section 24 hereof, to amend or not amend this Agreement in accordance with Section 28
hereof). All such actions, calculations, interpretations and determinations (including, for purposes of clause (ii) below,
all omissions with respect to the foregoing) that are done or made by the Board shall be (i) be final, conclusive, and
binding on the Company, the Rights Agent, the holders of the Rights and all other parties; and (ii) not subject the
Board or any member thereof to any liability to the holders of the Rights. Without limiting the foregoing, nothing contained
herein shall be construed to suggest or imply that the Board shall not be entitled to reject any Qualifying Offer or any
other tender offer or other acquisition proposal, or to recommend that holders of Common Stock of the Company reject any
Qualifying Offer or any other tender offer or other acquisition proposal, or to take any other action (including, without
limitation, the commencement, prosecution, defense or settlement of any litigation and the submission of additional or
alternative offers or other proposals) with respect to any Qualifying Offer or any other tender offer or other acquisition
proposal that the Board determines in good faith is necessary or appropriate in the exercise of its fiduciary duties.

 

    - 48 -

     

    

 

		Section
                          31.	Benefits
                                         of this Agreement.

 

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

 

		Section
                          32.	Tax
                                         Compliance and Withholding.

 

The Company hereby
authorizes the Rights Agent to deduct from all payments disbursed by the Rights Agent to the holders of the Rights, if applicable,
the tax required to be withheld pursuant to Sections 1441, 1442, 1445, 1471 through 1474, and 3406 of the Internal Revenue Code
of 1986, as amended, or by any federal or state statutes subsequently enacted, and to make the necessary returns and payments of
such tax to the relevant taxing authority. The Company will provide withholding and reporting instructions to the Rights Agent
from time to time as relevant, and upon request of the Rights Agent. The Rights Agent shall have no responsibilities with respect
to tax withholding, reporting, or payment except as specifically instructed by the Company.

 

		Section
                          33.	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, null and void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
will remain in full force and effect and will in no way be affected, impaired or invalidated; provided, however,
that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction is held
by such court or authority to be invalid, null and void or unenforceable and the Board determines in good faith judgment that
severing the invalid language from this Agreement would materially and adversely affect the purpose or effect of this
Agreement, the right of redemption set forth in Section 23 hereof shall be reinstated and will not expire until the Close of
Business on the tenth (10th) Business Day following the date of such determination by the Board; provided, further,
that if any such severed term, provision, covenant or restriction shall adversely affect the rights, immunities, duties or
obligations of the Rights Agent, then the Rights Agent shall be entitled to resign immediately.

 

    - 49 -

     

    

 

		Section 34.	Governing
                                         Law.

 

This Agreement, each
Right, and each Rights Certificate issued hereunder shall be deemed to be a contract made under the laws of the State of Delaware
and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be
made, without reference to its conflicts of law principles, and performed entirely within such State.

 

		Section
                          35.	Counterparts.

 

This Agreement may
be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed
shall be deemed to be an original, but all of which taken together shall constitute one and the same instrument. Delivery of an
executed signature page of Agreement by facsimile or other customary means of electronic transmission (e.g., “PDF”)
shall be effective as delivery of a manually executed counterpart hereof.

 

		Section
                          36.	Interpretation.

 

The headings contained
in this Agreement are for descriptive purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

		Section
                          37.	Force
                                         Majeure.

 

Notwithstanding anything
to the contrary contained herein, the Rights Agent will not have any liability for not performing, or a delay in the performance
of, any act, duty, obligation or responsibility by reason of any occurrence beyond the reasonable control of the Rights Agent (including,
without limitation, any act or provision of any present or future law or regulation or governmental authority, any act of God,
war, civil or military disobedience or disorder, riot, rebellion, terrorism, insurrection, fire, earthquake, storm, flood, pandemic,
strike, work stoppage, interruptions or malfunctions of computer facilities, loss of data due to power failures or mechanical difficulties
with information, labor dispute, accident or failure or malfunction of any utilities, communication or computer (software or hardware)
services or similar occurrence).

 

(Signature Page To Follow On Next Page)

 

    - 50 -

     

    

 

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

 

	 	ProPetro
    Holding Corp.,
	 	as
    Company
	 	 
	 	By:	/s/ Darin G. Holderness
	 	Name:  	Darin G. Holderness
	 	Title:	Chief Financial Officer
	 	 
	 	American
    Stock Transfer & Trust Company, LLC,
	 	as
    Rights Agent
	 	 
	 	By:	/s/ Michael A. Nespoli
	 	Name:	Michael A. Nespoli
	 	Title:	Executive Director

 

Signature Page to Rights Agreement

 

     

     

    

 

Exhibit A

 

CERTIFICATE OF DESIGNATIONS

OF

SERIES B JUNIOR PARTICIPATING PREFERRED
STOCK

OF

ProPetro Holding Corp.

 

(Pursuant to Section 151 of the Delaware
General Corporation Law)

 

In accordance with
Section 151 of the Delaware General Corporation Law, the undersigned corporation, hereby certifies that the following resolution
was adopted by the Board of Directors of ProPetro Holding Corp., a Delaware corporation (the “Corporation”),
at a meeting duly called and held:

 

RESOLVED, that pursuant
to the authority granted to and vested in the Board of Directors of this Corporation (the “Board of Directors”)
in accordance with the provisions of the Amended and Restated Certificate of Incorporation of the Corporation, as the same may
be amended or restated from time to time (the “Certificate of Incorporation”), the Board of Directors
hereby creates a series of Preferred Stock, par value $0.001 per share, of the Corporation (the “Preferred Stock”),
and hereby states the designation and number of shares, and fixes the relative rights, preferences, and limitations thereof as
follows:

 

Series B Junior
Participating Preferred Stock:

 

(1) Designation
and Amount. The shares of such series shall be designated as “Series B Junior Participating Preferred Stock” (the
 “Series B Preferred Stock”) and the number of shares constituting the Series B Preferred Stock shall
be 202,000. Such number of shares may be increased or decreased by resolution of the Board of Directors; provided, that no decrease
shall reduce the number of shares of Series B Preferred Stock to a number less than the number of shares then outstanding plus
the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion
of any outstanding securities issued by the Corporation convertible into Series B Preferred Stock.

 

(2) Dividends and
Distributions.

 

(a) Subject to the rights
of the holders of any shares of any series of Preferred Stock (or any similar stock) ranking prior and superior to the Series
B Preferred Stock with respect to dividends, the holders of shares of Series B Preferred Stock, in preference to the holders of
Common Stock, par value $0.001 per share (the “Common Stock”) of the Corporation, and of any other junior
stock, shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for the
purpose, quarterly dividends payable in cash on the 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 B Preferred Stock, in an amount per
share (rounded to the nearest cent) equal to the greater of (1) $1.00 or (2) subject to the provision for adjustment hereinafter
set forth, 1,000 times the aggregate per share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable
in kind) of all non-cash dividends or other distributions, other than a dividend payable in shares of Common Stock or a subdivision
of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock since the immediately
preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance
of any share or fraction of a share of Series B Preferred Stock. In the event the Corporation shall at any time declare or pay
any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of
the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock)
into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series
B Preferred Stock were entitled immediately prior to such event under clause (2) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior
to such event.

 

    - A-1 -

     

    

 

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

 

(c) Dividends shall begin
to accrue and be cumulative on outstanding shares of Series B Preferred Stock from the Quarterly Dividend Payment Date next preceding
the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend
Payment Date, in which case dividends on such shares shall begin to accrue 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 B 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 B 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 B Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be
not more than sixty (60) days prior to the date fixed for the payment thereof.

 

(3) Voting Rights.
The holders of shares of Series B Preferred Stock shall have the following voting rights:

 

(a) Subject to the provision
for adjustment hereinafter set forth, each share of Series B Preferred Stock shall entitle the holder thereof to 1,000 votes on
all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time declare
or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation
of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which
holders of shares of Series B Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such
number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

 

    - A-2 -

     

    

 

(b) Except as otherwise
provided herein, in any other certificate of designations creating a series of Preferred Stock or any similar stock, or by law,
the holders of shares of Series B Preferred Stock and the holders of shares of Common Stock and any other capital stock of the
Corporation having general voting rights shall vote together as one class on all matters submitted to a vote of stockholders of
the Corporation.

 

(c) Except as set forth
herein, or as otherwise provided by law, holders of Series B 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.

 

(4) Certain Restrictions.

 

(a) Whenever quarterly
dividends or other dividends or distributions payable on the Series B 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 B Preferred
Stock outstanding shall have been paid in full, the Corporation shall not:

 

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

 

(2) declare
or pay dividends, 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 B Preferred Stock, except dividends paid ratably on the Series B 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;

 

(3) redeem
or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series B Preferred Stock other than (A) such redemptions or purchases that may be deemed to
occur upon the exercise of stock options, warrants or similar rights or grant, vesting or lapse of restrictions on the grant of
any other performance shares, restricted stock, restricted stock units or other equity awards to the extent that such shares represent
all or a portion of (x) the exercise or purchase price of such options, warrants or similar rights or other equity awards and
(y) the amount of withholding taxes owed by the recipient of such award in respect of such grant, exercise, vesting or lapse of
restrictions; (B) the repurchase, redemption, or other acquisition or retirement for value of any such shares from employees,
former employees, directors, former directors, consultants or former consultants of the Corporation or their respective estate,
spouse, former spouse or family member, pursuant to the terms of the agreements pursuant to which such shares were acquired, provided
that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares
of any stock of the Corporation ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the
Series B Preferred Stock; or

 

    - A-3 -

     

    

 

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

 

(b) The 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.

 

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

 

(6) Liquidation,
Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Corporation, voluntary or otherwise, no
distribution shall be made (1) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution
or winding up) to the Series B Preferred Stock unless, prior thereto, the holders of shares of Series B Preferred Stock shall
have received the greater of (A) $1,000 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon,
whether or not declared, to the date of such payment, and (B) an amount, subject to the provision for adjustment hereinafter set
forth, equal to 1,000 times the aggregate amount to be distributed per share to holders of shares of Common Stock, or (2) to the
holders of shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the
Series B Preferred Stock, except distributions made ratably on the Series B Preferred Stock and all such parity stock in proportion
to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or winding up. In
the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock,
or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise
than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the aggregate amount to which holders of shares of Series B Preferred Stock were entitled immediately prior to such
event under the proviso in clause (1) of the preceding sentence shall be adjusted by multiplying such amount by a fraction, the
numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which
is the number of shares of Common Stock that were outstanding immediately prior to such event.

 

    - A-4 -

     

    

 

(7) Consolidation,
Merger, Etc. In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which
the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in
any such case each share of Series B Preferred Stock shall at the same time be similarly exchanged or changed into an amount per
share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate amount of stock, securities,
cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed
or exchanged. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares
of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification
or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock,
then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series
B Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately prior to such event.

 

(8) No Redemption.
The shares of Series B Preferred Stock shall not be redeemable.

 

(9) Rank. The
Series B Preferred Stock shall rank, with respect to the payment of dividends and the distribution of assets, junior to all series
of any other class of the Corporation’s Preferred Stock, and shall rank senior to the Common Stock as to such matters.

 

(10) Amendment.
The Certificate of Incorporation shall not be amended in any manner which would materially alter or change the powers, preferences
or special rights of the Series B Preferred Stock so as to affect them adversely without the affirmative vote of the holders of
at least two-thirds of the outstanding shares of Series B Preferred Stock, voting together as a single class.

 

(11) Fractional
Shares. The Series B Preferred Stock may be issued in fractions of a share, which fractions 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 B Preferred Stock. 

 

    - A-5 -

     

    

 

IN WITNESS WHEREOF,
ProPetro Holding Corp. has caused this Certificate to be executed by its duly authorized officer this ___ day of ________, ________.

 

	 	ProPetro
    Holding Corp.

 

	 	By:	 
	 	Name:
	 	Title:

 

    - A-6 -

     

    

 

Exhibit B

 

SUMMARY OF RIGHTS

TO PURCHASE SERIES B JUNIOR PARTICIPATING PREFERRED STOCK

 

Introduction

 

The Board of Directors
(the “Board”) of ProPetro Holding Corp., a Delaware corporation (the “Company”),
declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of Common
Stock, par value $0.001 per share, of the Company (the “Common Stock”). The dividend is payable on April
24, 2020 (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 B Junior Participating Preferred Stock, par value $0.001
per share, of the Company (the “Preferred Stock”) at a price of $16.00 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 April 14, 2020, as the same may be amended from time to time (the
 “Rights Agreement”), between the Company and American Stock Transfer & Trust Company, LLC, as Rights
Agent (the “Rights Agent”).

 

Until the earlier to
occur of (i) the close of business on the tenth business day after a public announcement that a person or group of affiliated
or associated persons (with certain exceptions, an “Acquiring Person”) has acquired beneficial ownership
of 10% or more of the outstanding shares of Common Stock and (ii)  the close of business on the tenth business day after the
commencement by any person of, or of the first public announcement of the intention of any Person to commence, a tender or exchange
offer the consummation of which would result in such Person becoming the Beneficial Owner of 10% 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 (or book entry shares) outstanding as of the Record Date, by such
Common Stock certificate (or book entry shares) together with this Summary of Rights.

 

No person that, together
with all affiliates and associates of such person, is the beneficial owner of Common Stock representing less than 20% of the Common
Stock then outstanding, and which is entitled to file, and files, a statement on Schedule 13G (“Schedule 13G”)
pursuant to Rule 13d-1(b) of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), as in effect at the time of the public announcement of the declaration of the Rights with respect to the
Common Stock beneficially owned by such person (but for the avoidance of doubt, not any person who files on Schedule 13G pursuant
to any other provision of Rule 13d-1) (a “13G Investor”), shall be deemed to be an “Acquiring
Person”; provided, that a person who was a 13G Investor shall no longer be a 13G Investor if it either (i) files
a statement on Schedule 13D (“Schedule 13D”) pursuant to Rule 13d-1(a), 13d-1(e), 13d-1(f) or 13d-1(g)
of the General Rules and Regulations under the Exchange Act or (ii) becomes no longer entitled to file a statement on Schedule
13G pursuant to Rule 13d-1(b) of the Exchange Act (the earlier to occur of (i) and (ii), the “13D Event”),
and such person shall be an Acquiring Person if it is the beneficial owner of 10% or more of the Common Stock then outstanding
at any point from and after the time of the 13D Event; provided, however, such person shall not be an Acquiring
Person if (i) on the first business day after the 13D Event such person notifies the Company of its intent to reduce its beneficial
ownership to below 10% as promptly as practicable and (ii) such person reduces its beneficial ownership to below 10% of the then
outstanding Common Stock as promptly as practicable (but in any event not later than 10 days after such 13D Event); provided,
further that such person shall become an “Acquiring Person” if after reducing its beneficial ownership to below
10%, it subsequently becomes the beneficial owner of 10% or more of the then outstanding Common Stock or if, prior to reducing
its beneficial ownership to below 10%, it increases (or makes any offer or takes any other action that would increase) its beneficial
ownership of the then-outstanding Common Stock above the lowest beneficial ownership of such person at any time during such 10-day
period.

 

    - B-1 -

     

    

 

The Rights Agreement
provides that, until the Distribution Date (or earlier expiration or redemption of the Rights), the Rights will be transferred
with and only with the Common Stock. Until the Distribution Date (or earlier expiration or redemption of the Rights), new Common
Stock certificates issued after the Record Date upon transfer or new issuances of Common Stock will contain a legend incorporating
the Rights Agreement by reference, and notice of such legend will be furnished to holders of book entry shares. Until the Distribution
Date (or earlier expiration or redemption of the Rights), the surrender for transfer of any certificates for shares of Common Stock
(or book entry shares of Common Stock) outstanding as of the Record Date, even without such legend 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
or registered in book entry form. As soon as practicable following the Distribution Date, separate certificates evidencing the
Rights (the “Rights 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 Rights Certificates alone will evidence the Rights.

 

The Rights are not
exercisable until the Distribution Date. The Rights will expire prior to the earliest of (i) March 31, 2021 or such later date as may be established by the Board prior to the expiration of the Rights as long as the extension
is submitted to the stockholders of the Company for ratification at the next annual meeting of stockholders succeeding such extension
(the “Final Expiration Date”), (ii) the time at which the Rights are redeemed or exchanged by the Company,
in each case as described below and (iii) upon the occurrence of certain transactions.

 

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.

 

    - B-2 -

     

    

 

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) $1.00 per share, and (b) an amount
equal to 1,000 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 (i) $1,000.00
per share (plus any accrued but unpaid dividends), and (ii) an amount equal to 1,000 times the payment made per share of Common
Stock. Each share of Preferred Stock will have 1,000 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 1,000 times the amount received per share of Common Stock. These rights are protected
by customary anti-dilution provisions.

 

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, affiliates and associates of the Acquiring Person and certain transferees thereof (which will thereupon
become null and void), will thereafter have the right to receive upon exercise of a Right that number of shares of Common Stock
(or at the option of the Company, other securities of the Company) 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, affiliates and associates of the Acquiring Person and certain transferees
thereof which will have become null and 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 may exchange the Rights
(other than Rights owned by such Acquiring Person and certain transferees thereof which will have become null and 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
voting rights, powers, designations, preferences and relative, participating, optional or other special rights), 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 shares 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.

 

    - B-3 -

     

    

 

At any time prior to
the time an Acquiring Person becomes such, the Board may authorize the redemption of the Rights in whole, but not in part, at a
price of $0.001 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 shall determine. The redemption of the Rights may be made effective
at such time, on such basis and with such conditions as the Board in its sole discretion may establish. Immediately upon the action
of the Board ordering the 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.

 

In the event the Company
receives a Qualifying Offer (as defined in the Rights Agreement) and the Company does not redeem the outstanding Rights, the Company
may exempt such Qualifying Offer from the Rights Agreement, or call a special meeting of stockholders to vote on whether or not
to exempt such Qualifying Offer from the Rights Agreement, in each case within ninety (90) days of the commencement of the Qualifying
Offer (the “Board Evaluation Period”), the holders of record of twenty percent (20%) or more of the outstanding
Common Stock may submit a written demand directing the Board to propose a resolution exempting the Qualifying Offer from the Rights
Agreement to be voted upon at a special meeting to be convened within ninety (90) days following the last day of the Board Evaluation
Period (the “Special Meeting Period”). The Board must take the necessary actions to cause such resolution
to be submitted to a vote of stockholders at a special meeting within the Special Meeting Period; however, the Board may recommend
in favor of or against or take no position with respect to the adoption of the resolution, as it determines to be appropriate in
the exercise of the Board’s fiduciary duties.

 

The Company may amend
or supplement the Rights Agreement without the approval of any holders of Rights, including, without limitation, in order to (i)
cure any ambiguity, (ii) correct or supplement any provision of the Rights Agreement that may be defective or inconsistent with
any other provisions of the Rights Agreement, (iii) shorten or lengthen any time period in the Rights Agreement or (iv) otherwise
change, amend or supplement any provision that the Company and the Rights Agent may deem necessary or desirable. However, from
and after the time when any person or group of persons becomes an Acquiring Person, the Rights Agreement may not be amended or
supplemented in any manner that would adversely affect the interests of the holders of 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.

 

A copy of the Rights
Agreement has been filed with the Securities and Exchange Commission as an exhibit to a Registration Statement on Form 8-A dated
April 14, 2020. 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.

 

    - B-4 -

     

    

 

Exhibit C

 

FORM OF RIGHTS CERTIFICATE

 

	Certificate No. R-________	________ Rights

 

NOT EXERCISABLE AFTER
March 31, 2021 OR EARLIER IF REDEEMED OR EXCHANGED BY THE COMPANY. THE RIGHTS ARE
SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.
UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF ANY SUCH PERSON (AS
SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. THE RIGHTS SHALL
NOT BE EXERCISABLE, AND SHALL BE NULL AND VOID, AS LONG AS HELD BY A HOLDER IN ANY JURISDICTION WHERE THE REQUISITE QUALIFICATION
TO THE ISSUANCE TO SUCH HOLDER, OR THE EXERCISE BY SUCH HOLDER, OF THE RIGHTS IN SUCH JURISDICTION SHALL NOT HAVE BEEN OBTAINED
OR BE OBTAINABLE.

 

The
Rights represented by this Rights Certificate are or were Beneficially Owned by a Person who was or became an Acquiring Person
or a Related Person of an Acquiring Person (as such terms are defined in the Rights Agreement). Accordingly, this Rights Certificate
and the Rights represented hereby may become null and void in the circumstances specified in Section 7(e)
of the Rights Agreement.

 

    -C-1-

     

    

  

Rights Certificate

 

This certifies that
_________________, or its registered assigns, is the registered holder of the number of Rights set forth above, each of which entitles
the holder thereof, subject to the terms, provisions and conditions of the Rights Agreement dated as of April 14, 2020, as amended
from time to time (the “Rights Agreement”), between ProPetro Holding Corp., a Delaware corporation (the
 “Company”), and American Stock Transfer & Trust Company, LLC (the “Rights Agent”),
to purchase from the Company at any time after the Distribution Date and prior to 5:00 p.m., New York City time, on March 31, 2021, at the office or offices of the Rights Agent designated for such purpose, or its successors as Rights
Agent, one one-thousandth of a fully paid, non-assessable share of Series B Junior Participating Preferred Stock, par value $0.001
per share (the “Preferred Stock”), of the Company, at a purchase price of $16.00 per one one-thousandth
share of Preferred Stock (the “Exercise Price”), upon presentation and surrender of this Rights Certificate
with the Election to Purchase and related Certificate duly executed. The number of Rights evidenced by this Rights Certificate
(and the number of shares that may be purchased upon exercise thereof) set forth above, and the Exercise Price per share as set
forth above, are the number and Exercise Price as of April 14, 2020, based on the Preferred Stock as constituted at such date,
and are subject to adjustment upon the happening of certain events as provided in the Rights Agreement. Capitalized terms used
and not defined herein shall have the meanings specified in the Rights Agreement.

 

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

 

    -C-2-

     

    

 

The Rights evidenced
by this Rights Certificate shall not be exercisable, and shall be null and void as long as held, by (i) a holder in any jurisdiction
where the requisite qualification to the issuance to such holder, or the exercise by such holder, of the Rights in such jurisdiction
shall not have been obtained or be obtainable or (ii) an Excluded Person.

 

As provided in the
Rights Agreement, the Exercise Price and the number and kind of shares of Preferred Stock or other securities which may be acquired
upon the exercise of the Rights evidenced by this Rights Certificate are subject to modification and adjustment upon the happening
of certain events, including Triggering Events.

 

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

 

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

 

Subject to the provisions
of the Rights Agreement, the Rights evidenced by this Certificate may be redeemed by the Company under certain circumstances at
its option at a redemption price of $0.001 per Right at any time prior to the Distribution Date.

 

At any time after
a person becomes an Acquiring Person and prior to the acquisition by such person of 50% or more of the outstanding Common Stock,
par value $0.001 per share (the “Common Stock”), the Board may exchange the Rights (other than Rights
owned by such Acquiring Person which have become null and void), in whole or in part, at an exchange ratio of one share of Common
Stock per each outstanding Right or, in certain circumstances, other equity securities of the Company which are deemed by the
Board to have the same value as shares of Common Stock, subject to adjustment.

 

    -C-3-

     

    

 

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

 

No holder of this Rights
Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of shares of Preferred
Stock or of any other securities of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained
in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of
the Company 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 Rights Certificate shall have been exercised as provided in the Rights Agreement.

 

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

 

    -C-4-

     

    

 

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

 

Dated as of _____________, ______.

   

	 	ProPetro Holding Corp.
	 	 
	 	By:	 
	 	Name:	     
	 	Title:	 

  

Countersigned:

 

Dated as of _____________, ______.

 

American Stock Transfer
 & Trust Company, LLC, 

as Rights Agent

 

	By:	 	 

Authorized Signatory

 

    -C-5-

     

    

 

[Form of Reverse Side of Rights
Certificate]

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder
if

such holder desires to transfer the

Rights Certificate.)

 

FOR VALUE RECEIVED                                  
hereby sells, assigns and transfers unto

 

 

(Please print name
and address of transferee)

 

 

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

 

Dated _____________, ______.

 

	 	Signature

Signature Guaranteed:

 

    -C-6-

     

    

 

 

Certificate

 

The undersigned hereby
certifies by checking the appropriate boxes that:

 

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

 

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

 

Dated _____________, ______.

 

	 	Signature

  

Signature Guaranteed:

  

 

    -C-7-

     

    

 

NOTICE

 

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

 

Signatures must be
guaranteed by a participant in a Medallion Signature Guarantee Program at a level acceptable to the Rights Agent.

 

In the event the certification
set forth above is not completed, the Company will deem the beneficial owner of the Rights evidenced by this Rights Certificate
to be an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and, in the case of an Assignment,
will affix a legend to that effect on any Rights Certificates issued in exchange for this Rights Certificate.

 

    -C-8-

     

    

  

FORM OF ELECTION TO PURCHASE

 

(To be executed if the registered holder

desires to exercise Rights represented

by the Rights Certificate.)

 

	To:	 	 

 

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

 

 

(Please print name and address)

 

 

Please insert social security

	or other identifying number:                                                                                                                                                                                                                                        

 

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

 

 

(Please print name and address)

 

 

Please insert social security

	or other identifying number:                                                                                                                                                                                                                                        

 

Dated _____________, ______.

 

		Signature

 

Signature Guaranteed:

 

    -C-9-

     

    

 

Certificate

 

The undersigned hereby
certifies by checking the appropriate boxes that:

 

(1)       the
Rights evidenced by this Rights Certificate [ ] are [ ] are not being exercised by or on behalf of
a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined in the Rights
Agreement); and

 

(2)       after
due inquiry and to the best knowledge of the undersigned, the undersigned

[ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from any Person who is,
was or became an Acquiring Person or an Affiliate or Associate of any such Person.

 

Dated _____________, ______.

 

		Signature

  

Signature Guaranteed:

 

    -C-10-

     

    

 

NOTICE

 

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

 

Signatures must be
guaranteed by a participant in a Medallion Signature Guarantee Program at a level acceptable to the Rights Agent.

 

In the event the certification
set forth above is not completed, the Company will deem the beneficial owner of the Rights evidenced by this Rights Certificate
to be an Acquiring Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and, in the case of an Assignment,
will affix a legend to that effect on any Rights Certificates issued in exchange for this Rights Certificate.

 

    -C-11-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00307-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00307-of-00352.parquet"}]]