Document:

Exhibit 4.1

 

AMENDED AND RESTATED
RIGHTS AGREEMENT

 

THIS AMENDED AND
RESTATED RIGHTS AGREEMENT (the “Agreement”), dated as of June 9, 2017, is made between Spherix Incorporated, a Delaware
corporation (the "Company"), and Transfer Online Inc., an Oregon corporation (the "Rights Agent").

 

RECITALS

 

WHEREAS, on January
24, 2013, the Board of Directors of the Company authorized and declared the payment of a dividend of one preferred share purchase
right (a "Right") for each share of Common Stock (as defined in Section 1) outstanding on the Record Date (as defined
in Section 1) and authorized the issuance of one Right for each share of Common Stock issued after the Record Date and before the
earliest of the Distribution Date, the Redemption Date, the Exchange Date and the Expiration Date  (as such terms are
defined in Section 1) and in certain cases following the Distribution Date.  Following the Reverse Split (as defined
below), each Right represents, as of the Record Date, the right to purchase one nineteen-hundredth of one share of Preferred Stock
(as defined in Section 1) upon the terms and subject to the conditions set forth in that certain Rights Agreement, effective as
of January 1, 2013, by and between the Company and the Rights Agent (the “Original Rights Agreement”).

 

WHEREAS, on March
4, 2016, the Company effected a 1-for-19 stock split of its Common Stock (the “Reverse Split”), pursuant to which all
numbers set forth herein shall be appropriately adjusted in accordance with Section 11 of the Original Rights Agreement.

 

WHEREAS, on June
16, 2016, the Company entered into an Assignment and Assumption of Rights Agreement to replace Equity Stock Transfer, LLC with
Transfer Online Inc., as Rights Agent, effective July 15, 2016;

 

WHEREAS, the Company
desires to amend and restate the Original Rights Agreement solely to extend the Expiration Date (as such term is defined herein)
to December 31, 2020 and to reflect the Reverse Split and the change in Rights Agent.

 

NOW, THEREFORE,
in consideration of the premises and the mutual agreements set forth in this Agreement, 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" means any Person who or which, together with all Affiliates and Associates of such Person, is (or has previously been,
at any time after the date of this Agreement, whether or not such Person(s) continues to be) the Beneficial Owner of 10 percent
or more of the Common Stock then outstanding (determined without taking into account any securities exercisable or exchangeable
for, or convertible into, Common Stock, other than any such securities beneficially owned by the Acquiring Person and Affiliates
and Associates of such Person).  However, "Acquiring Person" shall not include any Exempt Person.

 

Notwithstanding
the foregoing, a Person shall not become an "Acquiring Person" solely as the result of an acquisition of Common Stock
by the Company or any Subsidiary which, by reducing the number of shares outstanding, increases the proportionate number of shares
beneficially owned by such Person to 10 percent or more of the Common Stock then outstanding as determined above; provided, however,
that if a Person becomes the Beneficial Owner of 10 percent or more of the Common Stock then outstanding as determined above solely
by reason of such a share acquisition by the Company and such Person shall, after becoming the Beneficial Owner of such Common
Stock, become the Beneficial Owner of any additional shares of Common Stock by any means whatsoever (other than as a result of
the subsequent occurrence of a stock dividend or a subdivision of the Common Stock into a larger number of shares or a similar
transaction), then such Person shall be deemed to be an "Acquiring Person."

 

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Notwithstanding
the foregoing, if a majority of the Board of Directors of the Company determines in good faith that a Person who would otherwise
be an "Acquiring Person," as defined pursuant to the foregoing provisions of this Section 1(a), has become such inadvertently,
and such Person divests as promptly as practicable a sufficient number of Common Shares so that such Person would no longer be
an "Acquiring Person," as defined pursuant to the foregoing provisions of this Section 1(a), then such Person shall not
be deemed to be an "Acquiring Person" for any purposes of this Agreement.  The determination of whether such
Person's becoming an Acquiring Person shall have been inadvertent and the determination of whether the divestment of sufficient
shares shall have been made as promptly as practicable shall be made by a majority of the Board of Directors of the Company.

 

(b)           "Adjustment
Number" has the meaning set forth in, and shall be calculated in accordance with, the Certificate of Designation, Preferences
and Rights of Series A Participating Preferred Stock attached as Exhibit A hereto.

 

(c)           "Affiliate"
has the meaning given to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the
date of this Agreement; provided that, for purposes of this Agreement, the term "Affiliate" shall not include any Person
that is an Exempt Person.

 

(d)           "Associate"
has the meaning given to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the
date of this Agreement; provided that, for purposes of this Agreement, the term "Associate" shall not include any Person
that is an Exempt Person.

 

(e)           Except
as provided below, a Person shall be deemed to be the "Beneficial Owner" of, and shall be deemed to "beneficially
own," any securities:

 

(1)           which such Person or any Affiliate or Associate of such
Person beneficially owns, directly or indirectly;

 

(2)           which
such Person or any Affiliate or Associate of such Person has, directly or indirectly, the right or obligation (whether or not then
exercisable or effective) to acquire pursuant to any agreement, arrangement or understanding (whether or not in writing), or upon
the exercise of conversion rights, exchange rights, rights (other than these Rights), warrants or options, or otherwise; provided,
however, that a Person will not be deemed the Beneficial Owner of, or to beneficially own, securities tendered pursuant to a tender
or exchange offer made by or on behalf of such Person or any Affiliate or Associate of such Person until such tendered securities
are accepted for purchase or exchange;

 

(3)           which
such Person or any Affiliate or Associate of such Person has, directly or indirectly, the right (whether or not then exercisable)
to vote, or to direct the voting of, pursuant to any agreement, arrangement or understanding  (whether or not in writing);  provided,
however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security pursuant to this clause
(3) if the agreement, arrangement or understanding to vote, or to direct the voting of, such security (A) arises solely from a
revocable proxy or consent given in response to a public proxy or consent solicitation made pursuant to, and in accordance with,
the Exchange Act and applicable rules and regulations thereunder and (B) is not also then reportable under Item 6 (or any comparable
or successor item) of Schedule 13D under the Exchange Act (or any comparable or successor schedule or report);

 

(4)           which
such Person or any Affiliate or Associate of such Person has "beneficial ownership" of as determined pursuant to Rule
13d-3 of the General Rules and Regulations under the Exchange Act or any successor provision; or

 

(5)           which
are beneficially owned, directly or indirectly, by any other Person or any Affiliate or Associate of such other Person with whom
such Person or any Affiliate or Associate of such Person has any agreement, arrangement or understanding (whether or not in writing)
for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in clause (3) of this Section
1(e) or disposing of any securities of the Company.

 

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Nothing in the preceding
sentence shall cause a Person engaged in business as an underwriter of securities to be the "Beneficial Owner" of, or
to "beneficially own," any securities acquired through such Person's participation in good faith in a firm commitment
underwriting until the expiration of 40 days after the date of such acquisition.

 

Notwithstanding
anything in this Agreement to the contrary, for purposes of this Agreement, no Person shall be treated as the "Beneficial
Owner" of, or be deemed to "beneficially own," any securities solely by reason of the ownership of those securities
by any other Person that is an Exempt Person.

 

Notwithstanding
anything in this definition of Beneficial Ownership to the contrary, the phrase "then outstanding," when used with reference
to a Person's Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding
together with the number of such securities not then actually issued and outstanding which such Person would be deemed to own beneficially
under the preceding provisions in this definition.

 

(f)           "Business
Combination" has the meaning set forth in Section 13 of this Agreement.

 

(g)           "Business Day" means any day other than a
Saturday, Sunday or a day on which banking institutions in the State of Maryland are authorized or obligated by law or executive
order to close.

 

(h)           "Close
of Business" on any given date means 5:00 p.m., Baltimore, Maryland time, on such date; provided, however, that if such date
is not a Business Day it shall mean 5:00 p.m. Baltimore, Maryland time, on the next succeeding Business Day.

 

(i)           "Common
Equivalent Share" has the meaning set forth in Section 11(c)(1)(B) of this Agreement.

 

(j)           "Common
Share" has the meaning set forth in Section 11(c)(1)(B) of this Agreement.

 

(k)           "Common Stock" when used with reference to
the Company means the Common Stock, par value $0.0001 per share, of the Company (as the same may be changed by reason of any combination,
subdivision or reclassification of the Common Stock).  "Common Stock" when used with reference to any Person
(other than the Company prior to a Business Combination) means shares of capital stock of such Person (if such Person is a corporation)
of any class or series, or units of equity interests in such Person (if such Person is not a corporation) of any class or series,
the terms of which shares or units do not limit (as a fixed amount and not merely in proportional terms) the amount of dividends
or income payable or distributable on such shares or units or the amount of assets distributable on such shares or units upon any
voluntary or involuntary liquidation, dissolution or winding up of such Person and do not provide that such shares or units are
subject to redemption at the option of such Person, or any shares of capital stock or units of equity interests into which the
foregoing shall be reclassified or changed; provided, however, that if at any time there are more than one such class or series
of capital stock of or equity interests in such Person, "Common Stock" of such Person will include all such classes and
series substantially in the proportion of the total number of shares or other units of each such class or series outstanding at
such time.

 

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(l)           "Current
Market Price" per share or unit of Common Stock, Common Equivalent Share or any other security on any date is the average
of the daily closing prices per share or unit of such Common Stock, Common Equivalent Share or any other security for the 30 consecutive
Trading Days (as such term is hereinafter defined) immediately prior to such date for the purpose of any computation under this
Agreement; provided, however, that in the event that the Current Market Price per share of Common Stock, Common Equivalent Share
or any other security is determined during a period following the announcement by the issuer of such Common Stock, Common Equivalent
Share or any other security of (i) a dividend or distribution on such Common Stock, Common Equivalent Share or any other security
other than a regular quarterly cash dividend, or (ii) any subdivision, combination or reclassification of such Common Stock, Common
Equivalent Share or any other security, and prior to the expiration of 30 Trading Days after the "ex-dividend" date for
such dividend or distribution or the record date for such subdivision, combination or reclassification, then, and in each such
case, the "Current Market Price" must be appropriately adjusted to take into account such dividend, distribution, subdivision,
combination or reclassification.  The closing price for each Trading Day shall be the last sale price, regular way, on
such day, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, on such
day, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or
admitted to trading on the NASDAQ Stock Market LLC ("NASDAQ") or, if the Common Stock, Common Equivalent Share or any
other security is not listed or admitted to trading on the NASDAQ, as reported in the principal consolidated transaction reporting
system with respect to securities listed on the principal United States national securities exchange on which the Common Stock,
Common Equivalent Share or any other security is listed or admitted to trading or, if the Common Stock, Common Equivalent Share
or any other security is not listed or admitted to trading on any national securities exchange, the last quoted price or, if not
so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the National Association
of Securities Dealers, Inc. Automated Quotations System or such other system then in use, or, if on any such date the Common Stock,
Common Equivalent Share or any other security is not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the security selected by a majority of the Board of Directors
of the Company.  If no such market maker is making a market, the fair market value of such shares or units on such day
shall be determined in good faith by a majority of the Board of Directors of the Company, which determination shall be described
in a statement filed with the Rights Agent and shall be binding and conclusive for all purposes.  The term "Trading
Day" means a day on which the principal

 

United States national securities exchange
on which the Common Stock, Common Equivalent Share or any other security is listed or admitted to trading is open for the transaction
of business or, if the Common Stock, Common Equivalent Share or any other security is not listed or admitted to trading on any
United States national securities exchange, but is traded in the over-the-counter market, then any day for which the high bid and
low asked prices in the over-the-counter market are reported, or if the Common Stock, Common Equivalent Share or any other security
is not traded in the over-the-counter market, then a Business Day.  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 as determined pursuant to this paragraph of Section 1 (appropriately adjusted to reflect any stock split, stock dividend
or similar transaction occurring after the date hereof), multiplied by the Adjustment Number.  Each Common Equivalent
Share consisting of preferred stock other than Preferred Stock shall be conclusively deemed to have the same "Current Market
Price" as a Common Equivalent Share consisting of Preferred Stock.

 

(m)           "Distribution
Date" means the earlier of (i) the tenth (10th) day after the Stock Acquisition Date and (ii) the tenth (10th) Business Day
after commencement of or public disclosure of an intention to commence (including, without limitation, any such commencement or
public disclosure which occurs before or after the date of this Agreement and prior to the issuance of the Rights) a tender offer
or exchange offer by a Person if, after acquiring the maximum number of securities sought pursuant to such offer, such Person,
or any Affiliate or Associate of such Person, would be an Acquiring Person.  A majority of the Board of Directors of
the Company may defer the date set forth in clause (ii) of the preceding sentence to a specified later date or to an unspecified
later date to be determined by a subsequent action or event.

 

(n)           "Exchange
Act" means the Securities Exchange Act of 1934, as amended, and any successor statute.

 

(o)           "Exchange
Date" means the time at which Rights are exchanged pursuant to Section 11(c)(2).

 

(p)           "Exempt
Event" means with respect to any Person, the acquisition by such Person of Beneficial Ownership of Common Stock solely as
a result of the occurrence of a Triggering Event and the effect of such Triggering Event on the last proviso of clause (ii) of
the definition of Beneficial Owner, other than a Triggering Event in which such Person becomes an Acquiring Person.

 

(q)           "Exempt
Person" means (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the Company or of any
Subsidiary of the Company, (iv) any Person holding Common Stock for any such employee benefit plan or for employees of the Company
or of any Subsidiary of the Company pursuant to the terms of any such employee benefit plan.

 

(r)           "Exercise
Amount" means the amount payable by the holder as a condition to the exercise of one Right.  Until and unless it
shall be adjusted in accordance with this Agreement, the Exercise Amount shall be $141.74.

 

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(s)           "Expiration
Date" means the Close of Business on December 31, 2020.

 

(t)           “Person"
means any individual, firm, corporation, limited liability company, partnership, joint venture, association, trust, unincorporated
organization or other entity, and shall include any "group" as that term is used in Rule 13d-5(b) under the Exchange
Act (or any successor provision).

 

(u)           "Preferred
Stock" means the Company's Series A Participating Preferred Stock, par value $0.0001 per share, having the rights and preferences
set forth in the Certificate of Designation, Preferences and Rights of Series A Participating Preferred Stock, attached hereto
as Exhibit A.

 

(v)           "Principal
Party" means (i) in the case of any Business Combination described in clause (i), (ii) or (iii) of the first sentence of Section
13(a), (A) the Person that is the issuer of any securities into which shares of Common Stock of the Company are converted or for
which they are exchanged in such Business Combination or, if there is more than one such issuer, the issuer of the Common Stock
which has the greatest aggregate market value or (B) if no securities are so issued, the Person that survives or results from the
Business Combination or, if there is more than one such Person, the Person the Common Stock of which has the greatest aggregate
market value, and (ii) in the case of any Business Combination described in clause (iv) of the first sentence in Section 13(a),
the Person that receives the greatest portion of the assets or earning power transferred pursuant to such Business Combination
or, if each Person that is a party to such Business Combination receives the same portion of the assets or earning power so transferred
or if the Person receiving the greatest portion of the assets or earning power cannot reasonably be determined, whichever of such
Persons is the issuer of the Common Stock which has the greatest aggregate market value; provided, however, that in any such case,
if the Common Stock of such Person is not at such time and has not been continuously over the preceding 12-month period registered
under Section 12 of the Exchange Act and such Person is a direct or indirect Subsidiary of one or more other Persons, then (x)
"Principal Party" refers to whichever of such other Persons has Common Stock that is and has been continuously over the
preceding 12-month period registered under Section 12 of the Exchange Act; (y) if the Common Stocks of two or more of such other
Persons are and have been so registered, "Principal Party" refers to whichever of such other Persons is the issuer of
the Common Stock which has the greatest aggregate market value; or (z) if the Common Stock of none of such other Persons has been
so registered, "Principal Party" refers to whichever of such other Persons (other than an individual) is the Person which
has the equity securities with the greatest aggregate market value.  In case 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 above apply to each of the chains of ownership having an interest in such joint venture as if such Person were a Subsidiary
of both or all of such joint ventures and the Principal Parties in each such chain shall bear the obligations set forth in Section
13 in the same ratio as their direct or indirect interests in such Person bear to the total of such interests.

 

(w)           "Purchase
Price" means:  (i) the price at which one one-hundredth of a share of Preferred Stock shall be purchasable with
the Rights (the Purchase Price shall be $7.46 per one one-hundredth of a share of Preferred Stock until and unless it shall be
adjusted pursuant to this Agreement) and (ii) immediately after the Trigger Date, the price per Common Share for which Common Shares
shall be purchasable with the Rights.  Thereafter the term "Purchase Price" as applied with respect to each
kind of stock or other property purchasable with the Rights as a result of adjustments prescribed by this Agreement shall mean
the price at which each share of such stock or the smallest available unit of such other property is purchasable with the Rights.

 

(x)           "Record
Date" means the Close of Business on January 1, 2013.

 

(y)           "Redemption
Date" means the time at which the Rights are scheduled to be redeemed as provided in Section 23.

 

(z)           "Redemption
Price" has the meaning given to such term in Section 23.

 

(aa)          "Securities
Act" means the Securities Act of 1933, as amended, and any successor statute.

 

(bb)          "Stock Acquisition Date" means
the first date of public disclosure by the Company, an Acquiring Person or otherwise that an Acquiring Person has become such.

 

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(cc)           "Subsidiary"
has the meaning given to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect on the
date of this Agreement.

 

(dd)           "Trigger
Date" means the first date upon which a Person becomes an Acquiring Person.

 

(ee)           "Triggering
Event" shall mean a Person becoming an Acquiring Person.

 

Section 2.               Appointment
of Rights Agent.          The Company hereby appoints the Rights Agent to
act as agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent hereby accepts such appointment.  The
Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable.

 

Section 3.               Issuance
of Rights Certificates.

 

(a)           Until
the Distribution Date:  (i) the Rights shall be issued in respect of and shall be evidenced by the certificates representing
the shares of Common Stock issued and outstanding on the Record Date or, in the case of uncertified Common Shares registered in
book entry form (“Book Entry Shares”), by notation in book entry accounts reflecting the ownership of such Common Stock,
and shares of Common Stock issued or which become outstanding after the Record Date and prior to the earliest of the Distribution
Date, the Redemption Date, the Exchange Date and the Expiration Date (which certificates for Common Stock and Book Entry Shares
shall be deemed to also be certificates evidencing the Rights), and not by separate certificates; (ii) the registered holders of
such shares of Common Stock shall also be the registered holders of the Rights associated with such shares; and (iii) the Rights
shall be transferable only in connection with the transfer of shares of Common Stock, and the surrender for transfer of any certificate
for such shares of Common Stock shall also constitute the surrender for transfer of the Rights associated with such shares.  As
soon as practicable after the Company has notified the Rights Agent of the occurrence of the Distribution Date, the Rights Agent
shall, at the expense of the Company (except as otherwise provided in Section 7(e)), mail, by first-class, insured, postage prepaid
mail, to each record holder of the Common Stock as of the Close of Business on the Distribution Date, as shown by the records of
the Company, at the address of such holder shown on such records, one or more certificates evidencing the Rights ("Rights
Certificates"), in substantially the form of Exhibit B hereto, evidencing one Right (as adjusted from time to time pursuant
to this Agreement) for each share of Common Stock so held.  From and after the Distribution Date, the Rights will be
evidenced solely by such Rights Certificates.

 

(b)           Rights
shall be issued in respect of all shares of Common Stock which are issued or sold by the Company after the Record Date but prior
to the earliest of the Distribution Date, the Redemption Date, the Exchange Date and the Expiration Date.  In addition,
in connection with the issuance or sale of Common Stock by the Company following the Distribution Date and prior to the earliest
of the Redemption Date, the Exchange Date and the Expiration Date, the Company shall, with respect to Common Stock so issued or
sold (i) pursuant to the exercise of stock options issued prior to the Distribution Date or under any employee plan or arrangement
created prior to the Distribution Date, or (ii) upon the exercise, conversion or exchange of securities issued by the Company prior
to the Distribution Date, issue Rights and Rights Certificates representing the appropriate number of Rights in connection with
such issuance or sale; provided, however, that (x) no such Rights and Rights Certificate shall be issued if, and to the extent
that, the Company shall be advised by counsel that such issuance would create a significant risk of material adverse tax consequences
to the Company or the Person to whom such Rights Certificate would be issued and (y) no such Rights and Rights Certificates shall
be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof.  Certificates
issued after the Record Date representing shares of Common Stock outstanding on the Record Date and shares of Common Stock issued
after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date, the Exchange Date and the Expiration
Date shall have impressed, printed, or written on, or otherwise affixed to them a legend substantially in the following form:

 

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This certificate
also evidences and entitles the holder hereof to certain Rights as set forth in a Rights Agreement between Spherix Incorporated
(the "Company") and Equity Stock Transfer, LLC as Rights Agent, dated as of January 1, 2013, as amended and restated
between the Company and Transfer Online, Inc., as Rights Agent, on May 23, 2017 (the "Rights Agreement"), the terms of
which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of the Company.  Under
certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no
longer be evidenced by this certificate.  The Company will mail to the holder of this certificate a copy of the Rights
Agreement without charge after receipt of a written request therefor.  Under certain circumstances, Rights that were,
are or become beneficially owned by Acquiring Persons or their Associates or Affiliates (as such terms are defined in the Rights
Agreement) may become null and void and the holder of any of such Rights (including any subsequent holder) shall not have any right
to exercise such Rights.

 

With respect to
any Book Entry Shares, a legend in substantially similar form will be included in a notice to the record holder of such shares
in accordance with applicable law.

 

Notwithstanding
this Section 3(b), the omission of the legend required hereby, the inclusion of a legend that makes reference to a rights agreement
other than this Agreement or the failure to provide notice thereof will not affect the enforceability of any part of this Agreement
or the rights of any holder of Rights.

 

(c)           Notwithstanding
any other provision of this Agreement, neither the Company, the Rights Agent nor anyone else shall have any obligation to issue
any Rights Certificate to an Acquiring Person or to anyone else in whose hands the Rights nominally represented by such Certificate
shall be null and void either initially or in connection with a request to register a transfer of Rights represented by a certificate
previously issued.  Furthermore, neither the Company, the Rights Agent nor anyone else shall be obligated to issue Rights
Certificates to any person making a tender offer which if consummated could render such person an Acquiring Person or to any Affiliate
or Associate of such person until and unless the tender offer is withdrawn and the person shall have established to the Company's
reasonable satisfaction that such person does not intend to become an Acquiring Person. The Company shall be entitled to require
any person claiming the right to receive a Rights Certificate to present such evidence as the Company shall require in good faith
to establish to the Company's satisfaction that the Rights represented by that Certificate have not become null and void under
the provisions in Section 7(e) or that the Company is not entitled to withhold such Certificate under the provisions of the preceding
sentence.

 

Section 4.               Form
of Rights Certificates.          The Rights Certificates (and the form of
election to purchase shares and form of assignment to be printed on the reverse thereof) shall be in substantially the form of
Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon
as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to
comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on
which the Rights may from time to time be listed, or to conform to usage.  Subject to the provisions of this Agreement,
the Rights Certificates, whenever issued, shall be dated as of the Distribution Date, and on their face shall entitle the holders
thereof to purchase such number of shares of Preferred Stock as shall be set forth therein at the Purchase Price set forth therein,
but the number and kind of such securities and the Purchase Price shall be subject to adjustment as provided in this Agreement.

 

Section 5.               Execution,
Countersignature and Registration.

 

(a)           Each
Rights Certificate shall be executed on behalf of the Company by the Company's Chief Executive Officer, President, or any Vice
President, either manually or by facsimile signature, and shall have affixed thereto the Company's seal or a facsimile thereof
which shall be attested by the Company's Secretary or an Assistant Secretary, either manually or by facsimile signature.  Each
Rights Certificate shall be countersigned by the Rights Agent either manually or, if permitted by the Company, by facsimile signature
and shall not be valid for any purpose unless so countersigned.  In case any officer of the Company who shall have signed
a Rights Certificate shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and
delivery by the Company, such Rights Certificate nevertheless may be countersigned by the Rights Agent and issued and delivered
with the same force and effect as though the Person who signed such Rights Certificate had not ceased to be such officer of the
Company; and any Rights Certificate may be signed on behalf of the Company by any Person who, at the actual date of the execution
of such Rights Certificate, shall be a proper officer of the Company to sign such Rights Certificate, although at the date of the
execution of this Agreement any such Person was not such an officer.

 

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

 

    	 	7	 

     

    

 

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

 

(a)           Subject
to the provisions of Section 3(c) and Section 14, at any time after the Close of Business on the Distribution Date and at or prior
to the Close of Business on the earliest of the Redemption Date, the Exchange Date and the Expiration Date, any Rights Certificate
or Rights Certificates may be transferred, divided, combined or exchanged for another Rights Certificate or Rights Certificates,
entitling the registered holder to purchase a like number of shares of Preferred Stock (or following a Triggering Event or a Business
Combination, other securities, cash or other property, as the case may be) as the Rights Certificate or Rights Certificates surrendered
then entitled such holder to purchase.  Any registered holder desiring to transfer, divide, combine or exchange any Rights
Certificate shall make such request in writing delivered to the Rights Agent, and shall surrender the Rights Certificate or Rights
Certificates to be transferred, divided, combined or exchanged at the principal corporate office of the Rights Agent.  Thereupon
the Rights Agent shall countersign and deliver to the Person entitled thereto a Rights Certificate or Rights Certificates, as the
case may be, as so requested.  As a condition to such transfer, division, combination or exchange, the Company may require
payment by the surrendering holder of a sum sufficient to cover any tax or governmental charge that may be imposed in connection
therewith.  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 shall have duly completed and executed the
form of assignment on the reverse side of such Rights Certificate and shall have provided such additional evidence of the identity
of the Beneficial Owner (or such former or proposed Beneficial Owner) thereof or such Beneficial Owner's Affiliates or Associates
as the Company shall reasonably request.

 

(b)           Upon
receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation
of a Rights Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them,
and reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the
Rights Agent and cancellation of the Rights Certificate if mutilated, the Company will make and deliver a new Rights Certificate
of like tenor to the Rights Agent for delivery to the registered owner in lieu of the Rights Certificate so lost, stolen, destroyed
or mutilated.

 

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

 

(a)           Each
Right shall entitle (except as otherwise provided in this Agreement) the registered holder thereof, upon the exercise thereof as
provided in this Agreement, to purchase, for the Purchase Price, at any time after the Distribution Date and prior to the earliest
of the Expiration Date, the Exchange Date and the Redemption Date, one nineteen-hundredth (19/100) of a share of Preferred Stock,
subject to adjustment from time to time as provided in Sections 11 and 13.

 

(b)           The
registered holder of any Rights Certificate may exercise the Rights evidenced thereby (except as otherwise provided in this Agreement)
in whole or in part (except that no fraction of a Right may be exercised) at any time after the Distribution Date and prior to
the earliest of the Expiration Date, the Exchange Date and the Redemption Date, by surrendering the Rights Certificate, with the
form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the principal stock transfer office
of the Rights Agent, together with payment of the Exercise Amount for each Right exercised.

 

    	 	8	 

     

    

 

(c)           Upon
receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase duly executed, accompanied
by payment of  the Exercise Amount for each Right exercised and an amount equal to any applicable transfer tax required
to be paid by the surrendering holder pursuant to Section 9(d), the Rights Agent shall, subject to the provisions of this Agreement,
thereupon promptly (i)(A) requisition from any transfer agent for the Preferred Stock (or make available, if the Rights Agent is
the transfer agent for such shares) certificates for the Preferred Stock (or other securities, as the case may be) to be purchased
(and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests), or (B) if the Company shall
have elected to deposit the total number of shares of Preferred Stock (or other securities, as the case may be) issuable upon exercise
of the Rights with a depositary agent, requisition from the depositary agent depositary receipts representing such Preferred Stock
(or other securities, as the case may be) as are to be purchased (in which case certificates for the Preferred Stock (or other
securities, as the case may be) represented by such receipts shall be deposited by the transfer agent with the depositary agent)
and the Company shall direct the depositary agent to comply with such request; (ii) after receipt of such certificates or depositary
receipts, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate, registered in
such name or names as may be designated by such holder; and (iii) if appropriate, requisition from the Company the amount of cash
to be paid in lieu of issuance of fractional shares in accordance with Section 14 of this Agreement and, promptly after receipt
thereof, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate.  In
the event that the Company is obligated to issue other securities (including shares of Common Stock) of the Company, pay cash and/or
distribute other property pursuant to this Agreement, the Company will make all arrangements necessary so that such other securities,
cash and/or other property are available for distribution by the Rights Agent, if and when appropriate.

 

(d)           In
case the registered holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights Certificate
evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent and delivered to the registered
holder of such Rights Certificate or to his duly authorized assigns, subject to the provisions of Section 3(c) and Section 14.

 

(e)           Notwithstanding
anything in this Agreement to the contrary, any Rights that are or were formerly beneficially owned on or after the earlier of
the Distribution Date and the Trigger Date by (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii)
a direct or indirect transferee of an Acquiring Person (or of an Associate or Affiliate of such Acquiring Person) who becomes a
transferee after the Acquiring Person becomes such, or (iii) a direct or indirect transferee of an Acquiring Person (or of an Associate
or Affiliate of such Acquiring Person) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such
and receives such Rights pursuant to either (A) a direct or indirect transfer (whether or not for consideration) from the Acquiring
Person (or from an Associate or Affiliate of such Acquiring Person) to holders of equity interests in such Acquiring Person (or
to holders of equity interests in any Associate or Affiliate of such Acquiring Person) or to any Person with whom the Acquiring
Person (or an Associate or Affiliate of such Acquiring Person) has any continuing agreement, arrangement or understanding regarding
the transferred Rights or (B) a direct or indirect transfer which a majority of the Board of Directors of the Company determines
is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of this Section 7(e), shall,
immediately upon the occurrence of a Triggering Event and without any further action, be null and void and no holder of such Rights
shall have any rights whatsoever with respect to such Rights whether under this Agreement or otherwise; provided, however, that,
in the case of transferees under clause (ii) or clause (iii) above, any Rights beneficially owned by such transferee shall be null
and void only if and to the extent such Rights were formerly beneficially owned by a Person who was, at the time such Person beneficially
owned such Rights, or who later became, an Acquiring Person or an Affiliate or Associate of such Acquiring Person.  The
Company shall use all reasonable efforts to ensure that the provisions of this Section 7(e) are complied with, but shall have no
liability to any holder of a Rights Certificate or to any other Person as a result of the Company's failure to make, or any delay
in making (including any such failure or delay by the Board of Directors of the Company) any determinations with respect to an
Acquiring Person or its Affiliates, Associates or transferees hereunder.

 

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

 

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

 

    	 	9	 

     

    

 

Section 9.               Reservation
and Availability of Preferred Stock.

 

(a)           The
Company covenants and agrees that it will use all reasonable efforts to cause to be reserved and kept available at all times out
of its authorized and unissued shares of Preferred Stock or its authorized and issued shares of Preferred Stock held in its treasury
(and, following the occurrence of a Triggering Event or a Business Combination, out of its authorized and unissued shares of Common
Stock and/or other securities or out of its authorized and issued shares of Common Stock and/or other securities held in its treasury)
free from preemptive rights or any right of first refusal, a sufficient number of shares of Preferred Stock (and, following the
occurrence of a Triggering Event, shares of Common Stock and/or other securities) to permit the exercise in full of all Rights
from time to time outstanding.

 

(b)           The
Company further covenants and agrees, so long as the Preferred Stock (and, following the occurrence of a Triggering Event or a
Business Combination, shares of Common Stock and/or other securities) issuable upon the exercise of Rights may be listed on any
United States national securities exchange or quoted on any automated quotation system, to use its reasonable efforts to cause,
from and after the time that the Rights become exercisable, all such shares and/or other securities reserved for such issuance
to be listed on such exchange or quoted on such automated quotation system upon official notice of issuance upon such exercise.

 

(c)           The
Company further covenants and agrees that it will use all reasonable efforts to take all such action as may be necessary to ensure
that all shares of Preferred Stock (and, following the occurrence of a Triggering Event or a Business Combination, shares of Common
Stock and/or other securities) delivered upon the exercise of Rights shall, at the time of delivery of the certificates for such
shares and/or such other securities (subject to payment of the Purchase Price), be duly and validly authorized and issued, fully
paid, nonassessable, freely tradable, not subject to liens or encumbrances, and free of preemptive rights, rights of first refusal
or any other restrictions or limitations on the transfer or ownership thereof, of any kind or nature whatsoever.

 

(d)           The
Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and charges
which may be payable in respect of the original issuance or delivery of the Rights Certificates or of any certificates for shares
of Preferred Stock (or Common Stock and/or other securities, as the case may be) upon the exercise of Rights.  The Company
shall not, however, be required to (i) pay any transfer tax which may be payable in respect of any transfer involved in the issuance
or delivery of any Rights Certificates or the issuance or delivery of any certificates for shares of Preferred Stock (or Common
Stock and/or other securities as the case may be) to a Person other than, or in a name other than that of, the registered holder
of the Rights Certificate evidencing Rights surrendered for exercise or (ii) transfer or deliver any Rights Certificate or issue
or deliver any certificates for shares of Preferred Stock (or Common Stock and/or other securities as the case may be) upon the
exercise of any Rights until any such tax shall have been paid (any such tax being payable by the holder of such Rights Certificate
at the time of surrender) or until it has been established to the Company's satisfaction that no such tax is due.

 

(e)           The
Company shall use all reasonable efforts to (i) as soon as practicable following a Triggering Event (or such earlier time following
the Distribution Date as may be required by law), prepare and file a registration statement on an appropriate form under the Securities
Act with respect to the securities purchasable upon exercise of the Rights, (ii) cause such registration statement to become effective
as soon as practicable after such filing, and (iii)  cause such registration statement to remain effective (with a prospectus
at all times meeting the requirements of the Securities Act) until the earlier of (A) the date as of which Rights are no longer
exercisable for such securities and (B) the Expiration Date.  The Company shall also take such action as may be necessary
or appropriate under, or to ensure compliance with, the securities or "blue sky" laws of the various states in connection
with the exercise of the Rights.  The Company may temporarily suspend, for a period of time not to exceed 120 days after
the date of a Triggering Event, 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 make a public announcement stating that the exercisability
of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect.

 

    	 	10	 

     

    

 

Section 10.               Preferred
Stock Record Date.               Each Person in
whose name any certificate for shares of Preferred Stock (or Common Stock and/or other securities, as the case may be) is issued
upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Stock (or Common
Stock and/or other securities, as the case may be) represented thereby on, and such certificate shall be dated, the date upon which
the Rights Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price (and any applicable transfer
taxes) was made; provided, however, that if the date of such surrender and payment is a date upon which the Preferred Stock (or
Common Stock and/or other securities, as the case may be) transfer books of the Company are closed, such Person shall be deemed
to have become the record holder of such shares (and/or such other securities, as the case may be) on, and such certificate shall
be dated, the next succeeding Business Day on which the Preferred Stock (or Common Stock and/or other securities, as the case may
be) transfer books of the Company are open.  Prior to the exercise of the Rights evidenced thereby, the holder of a Rights
Certificate is not entitled to any rights of a holder of Preferred Stock (or any other security of the Company) for which the Rights
are exercisable, including the right to vote, to receive dividends or other distributions, or to exercise any preemptive rights,
and is not be entitled to receive any notice of any proceedings of the Company, except as provided herein.

 

Section 11.               Adjustments
to Purchase Price, Number of Shares or Number of Rights.               The
Purchase Price, the number and kind of securities, cash and other property obtainable upon exercise of each Right and the number
of Rights outstanding shall be subject to adjustment from time to time as provided in this Section 11.

 

(a)           Adjustments
Prior to Trigger Date:

 

(1)           In
the event the Company shall at any time after the date of this Agreement and prior to the Trigger Date (i) pay a dividend or make
a distribution on the Common Stock payable in shares of Common Stock, (ii) subdivide (by a stock split or otherwise) the outstanding
Common Stock into a larger number of shares, (iii) combine (by a reverse stock split or otherwise) the outstanding Common Stock
into a smaller number of shares (any of the actions described in clauses (i), (ii) or (iii) are herein called a "stock split")
then:

 

(A)           The
number of Rights outstanding shall be adjusted so that after giving effect to such stock split the number of Rights outstanding
shall be exactly equal to the number of shares of Common Stock outstanding (and so that prior to the Distribution Date one Right
shall be associated with every share of Common Stock outstanding after such stock split);

 

(B)           The
Exercise Amount shall be adjusted by multiplying the Exercise Amount in effect immediately prior to such stock split by a fraction,
the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such stock split and the
denominator of which shall be the number of shares of Common Stock outstanding immediately after such stock split;

 

(C)           The
Purchase Price for each one one-hundredth of a share of Preferred Stock shall not change; and

 

(D)           The
fraction of a share of Preferred Stock purchasable with each Right immediately after such stock split shall be equal to the product
derived by multiplying the fraction of a share of Preferred Stock purchasable with each Right immediately prior to such stock split
times the fraction cited in clause (B) above.

 

The following example
illustrates the intended operation of the preceding provisions.  Assume that initially each Right would (when and if
it became exercisable) entitle its holder to purchase one one-hundredth of a share of Preferred Stock for $200 (and  accordingly
the initial Exercise Amount and the initial Purchase Price per one one-hundredth of a share of Preferred Stock are each $200).  Assume
further that prior to the Distribution Date, the Company splits its Common Stock two for one (thereby doubling the number of shares
of Common Stock outstanding).  The intended operation of the preceding adjustment provisions is that: (i) the number
of Rights outstanding would also double; (ii) one Right would be associated with each share of Common Stock outstanding after the
stock split; (iii) each Right would have an Exercise Amount equal to $100; (iv) each Right will entitle its holder (when and if
the Right becomes exercisable) to purchase one two-hundredth of one share of Preferred Stock; and (v) the Purchase Price for each
one one-hundredth of a share of Preferred Stock would remain $200 so that the price for each one two-hundredth of a share of Preferred
Stock purchasable with each Right would be $100.

 

    	 	11	 

     

    

 

(2)           Adjustment
in Rights Certificates: In the event the Distribution Date shall occur and the Company shall issue separate certificates to represent
the Rights, the following provisions shall thereafter apply:

 

(A)           In
the event the number of Rights outstanding are increased pursuant to Section 11(a)(1), the Company shall as promptly as reasonably
possible distribute to the record holders of the Rights on the record date for the stock split giving rise to the increase in the
number of Rights certificates representing the additional Rights issuable by reason of such stock split.

 

(B)           In
the event the number of Rights outstanding are reduced pursuant to Section 11(a) by reason of the occurrence of a reverse stock
split or its functional equivalent, then each Rights Certificate outstanding prior to such reverse stock split shall thereafter
represent the reduced number of Rights into which the Rights represented by such certificate immediately prior to such reverse
stock split shall have been converted by reason of the occurrence of that reverse stock split.

 

(b)           Basic
Triggering Event Adjustments:  Upon the first occurrence of a Triggering Event (except as otherwise provided in this
Agreement), each Right shall be changed so that immediately after the Triggering Event:

 

(1)           it
shall no longer be exercisable for Preferred Stock but rather shall be exercisable for Common Stock (subject to adjustment as provided
in Section 11(c));

 

(2)           the
number of shares of Common Stock which may be acquired (upon exercise of each Right and payment of the Exercise Amount) shall be
equal to the result obtained by dividing (x) 50 percent of the Current Market Price per share of Common Stock on the date of the
occurrence of the Triggering Event into (y) the Exercise Amount in effect immediately prior to the Triggering Event; and

 

(3)           the
Purchase Price per Common Share purchasable with each Right shall be equal to 50 percent of the Current Market Price per share
of Common Stock on the date of the occurrence of the Triggering Event.

 

(c)           Other
Post Triggering Event Adjustments.

 

(1)           Use
of Common Equivalent Shares or Cash:  In the event that the number of shares of Common Stock which are authorized by
the Company's certificate of incorporation, but which are not outstanding or reserved for issuance for purposes other than upon
exercise of the Rights ("Available Common Stock"), is not sufficient to permit the exercise in full of the Rights after
the adjustment made in accordance with Section 11(b), then:

 

(A)           First,
the Available Common Stock shall be allocated among all of the then-outstanding and exercisable Rights so that each Right shall
entitle its holder to receive (upon exercise of the Right and payment of the Exercise Amount) the same amount of Available Common
Stock and (ii) second, the Board of Directors of the Company shall promptly take appropriate action to declare that each Right
shall additionally entitle its holder to receive (x) a number of Common Equivalent Shares equal to the remainder derived by subtracting
the number of shares of Available Common Stock allocated to each Right in the preceding clause (i) from the total number of shares
of Common Stock which would have been purchasable with such Right if the Corporation had a sufficient number of shares of Common
Stock to permit the Right to be exercisable entirely for Common Stock (such remainder being referred to herein as the "Unallocated
Shares"), (y) cash in an amount equal to the Current Value of the Unallocated Shares, or (z) any combination of the foregoing
determined by the Board of Directors of the Company so long as each Right entitles its holder to receive the same kind and amount
of Common Equivalent Shares and the same amount of cash as the holder of each other Right.  For purposes of the preceding
sentence, the "Current Value" of a particular number of Unallocated Shares shall be equal to the product derived by multiplying
that particular number times the greater of (i) the Current Market Price (calculated as prescribed in Section 1) for the Common
Stock on  the day on which the Board of Directors determines to make a substitution of cash for such Unallocated Shares
(the "Substitution Date") or (ii) the closing price per share (calculated as prescribed in Section 1) for the Common
Stock on the Trading Day immediately prior to the Substitution Date.

 

    	 	12	 

     

    

 

(B)           For
purposes of this Agreement, a "Common Equivalent Share" shall be a share or fraction of a share of preferred stock (including,
but not limited to, Preferred Stock), as follows:   (i) with respect to Preferred Stock, a Common Equivalent Share
shall be the fraction of a share of Preferred Stock equal to the reciprocal of the Adjustment Number in effect at the time the
term shall be applied and/or the unit of Preferred Stock issued and (ii) with respect to preferred stock other than Preferred Stock,
a Common Equivalent Share shall be a share or fraction of a share of such preferred stock that the Board of Directors of the Company
deems to represent substantially the same proportionate interest in the Company as a Common Equivalent Share represented by such
fraction of a share of Preferred Stock and to have a dividend rate and other characteristics as similar as possible to such fraction
of a share of Preferred Stock. The term "Common Share" whenever it is used in this Agreement means both a share of Common
Stock and a Common Equivalent Share.

 

(C)           If
circumstances after the initial Trigger Date require the use of Common Equivalent Shares, the Company shall use its best efforts
to obtain authorization to issue (i) a sufficient quantity of Common Stock to permit Common Stock to be issued upon exercise of
the Rights and/or any exercise of the exchange right under the following Section and (ii) a sufficient quantity of Common Equivalent
Shares as may be necessary or appropriate to permit Common Equivalent Shares to be issued upon exercise of the Rights and/or any
exercise of the exchange right under the following Section.  Each time the Company's authorized Common Stock shall be
increased, the adjustment required under the preceding paragraphs shall be redone to maximize the amount of Common Stock issuable
upon exercise of the Rights.  To the extent excess authorized Common Stock remains after the readjustment required by
the preceding sentence, the holder of any outstanding Common Equivalent Share shall have the right at any time to require the Company
to exchange that share for a share of Common Stock.

 

(D)           In
no event, however, shall the Company be obligated to reserve any Common Stock for issuance under the Rights until and unless a
Triggering Event actually occurs.

 

(E)           In
no event shall the Company issue any Preferred Stock except for issuances caused by exercise of the Rights and except for issuances
required by this Section 11(c)(1), Section 11(c)(2) or Section 11(d)(6).

 

(2)           Exchange
Option:

 

(A)           At
any time after the occurrence of a Triggering Event and prior to (i) the time any Person (other than an Exempt Person), together
with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50 percent or more of the Common Stock then
outstanding and (ii) the occurrence of a Business Combination, the Board of Directors of the Company may, at its option, cause
the Company to exchange for all or part of the then-outstanding and exercisable Rights, Common Shares at an exchange ratio of one
Common Share per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after
the date of this Agreement (such exchange ratio being referred to herein as the "Exchange Ratio").  Any partial
exchange shall be effected on a pro rata basis based on the number of Rights (other than Rights which have become void pursuant
to the provisions of Section 7(e) hereof) held by each holder of Rights.

 

(B)           Immediately
upon the action of the Board of Directors of the Company ordering the exchange of any particular Rights pursuant to this Section
11(c)(2) and without any further action and without any notice, the right to exercise those particular Rights shall terminate and
the only right a holder shall have thereafter with respect to any of those particular Rights shall be to receive the number of
Common Shares equal to the number of such Rights held by such holder multiplied by the Exchange Ratio.  The Company shall
promptly give public notice of any such exchange and in addition, the Company shall promptly mail a notice of any such exchange
to all of the holders of such Rights in accordance with Section 25 of this Agreement; provided, however, that the failure to give,
any delay in giving or any defect in, such notice shall not affect the validity of such exchange.  Each such notice of
exchange will state the method by which the exchange of the Common Shares for Rights will be effected and, in the event of any
partial exchange, the number of Rights which will be exchanged.   The Company shall not be required to issue fractions
of Common Shares or to distribute certificates which evidence fractional Common Shares.  In lieu of such fractional Common
Shares, the Company shall pay to the registered holders of the Rights Certificates with regard to which such fractional Common
Shares would otherwise be issuable an amount in cash equal to the product derived by multiplying (x) the subject fraction, by (y)
the last sale price of the Common Shares on the fifth Trading Day following the public announcement of the exchange by the Company,
or, in case no such sale takes place on such day, the average of the closing bid and asked prices on such day, in either case on
a when issued basis (taking into account the exchange), as reported in the principal consolidated transaction reporting system
with respect to securities listed or admitted to trading on the NASDAQ (or, if the Common Shares are not so listed or traded, then
as determined in the manner provided under the definition of "Current Market Price," adjusted to take into account the
exchange).  In determining whether any particular holder shall be obligated to receive cash in lieu of a fractional share,
the holder shall be entitled to have all Rights beneficially owned by such holder aggregated so that only one fractional share
shall be attributable to all the Rights so beneficially owned.

 

    	 	13	 

     

    

 

(d)           Antidilution
Adjustments After the Trigger Date:

 

(1)           In
the event the Company shall at any time after the Trigger Date effect any stock split with respect to its Common Stock, then
the Purchase Price to be in effect after such stock split shall be determined by multiplying the Purchase Price in effect
immediately prior to such action by a fraction, the numerator of which shall be the number of Common Shares outstanding
immediately prior to such stock split and the denominator of which shall be the number of Common Shares outstanding
immediately after such stock split.

 

(2)           In
case the Company shall at any time after the Trigger Date fix a record date for the making of a distribution to holders of Common
Stock (including any such distribution made in connection with a reclassification of the Common Stock or a consolidation or merger
in which the Company is the surviving corporation) of securities (other than Common Stock and rights, options or warrants referred
to in Section 11(d)(3), cash (other than a regular periodic cash dividend at an annual rate not in excess of (x) 125 percent of
the annual rate of the regular cash dividend paid on the Common Stock during the immediately preceding fiscal year or (y) in the
event that a regular cash dividend was not paid on the Common Stock during such preceding fiscal year, 5 percent of the Current
Market Price of the Common Stock on the date such regular cash dividend was first declared), property, evidences of indebtedness
or assets, the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, the numerator of which shall be the Current Market Price per share of Common
Stock on such record date, less the fair market value (as determined in good faith by a majority of the Board of Directors of the
Company, whose determination shall be described in a statement filed with the Rights Agent) of such securities, cash, property,
evidences of indebtedness or assets to be so distributed in respect of one share of Common Stock, and the denominator of which
shall be such Current Market Price per share of Common Stock on such record date.  Such adjustments shall be made successively
whenever such a record date is fixed; and in the event that such distribution is not made following such adjustment, the Purchase
Price shall be readjusted to be the Purchase Price which would have been in effect if such record date had not been fixed.

 

(3)           If
the Company shall at any time after the Trigger Date fix a record date for the issuance of rights, options or warrants to holders
of Common Shares entitling them to subscribe for or purchase Common Shares (or securities convertible into Common Shares) at a
price per Common Share (or, in the case of a convertible security, having a conversion price per Common Share) less than the Current
Market Price per share of Common Stock on such record date and requiring that the conversion or purchase right be exercised within
45 calendar days after such record date, the Purchase Price to be in effect after such record date shall be determined by
multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the
number of shares of Common Shares outstanding on such record date, plus the number of Common Shares which the aggregate exercise
and/or conversion price for the total number of Common Shares which are obtainable upon exercise and/or conversion of such rights,
options, warrants or convertible securities would purchase at such Current Market Price, and the denominator of which shall be
the number of shares of Common Shares outstanding on such record date, plus the number of additional Common Shares which may be
obtained upon exercise and/or conversion of such rights, options, warrants or convertible securities.  In case such subscription
price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall
be as determined in good faith by a majority of the Board of Directors of the Company, whose determination shall be described in
a statement filed with the Rights Agent and shall be binding on the Rights Agent.  Common Shares owned by or held for
the account of the Company or any Subsidiary of the Company shall not be deemed outstanding for the purpose of any such computation.  Such
adjustment shall be made successively whenever such a record date is fixed; and in the event that such rights, options or warrants
are not issued following such adjustment, the Purchase Price shall be readjusted to be the Purchase Price which would have been
in effect if such record date had not been fixed.

 

    	 	14	 

     

    

 

(4)           Anything
in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase Price,
in addition to those adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion shall
determine to be advisable in order that any combination or subdivision of the Common Stock, issuance wholly for cash of any Common
Stock at less than the Current Market Price, issuance wholly for cash of Common Stock or securities which by their terms are convertible
into or exchangeable or exercisable for Common Shares, stock dividends or issuance of rights, options or warrants referred to in
this Section 11, hereafter made by the Company to holders of its Common Shares, shall not be taxable to such stockholders. 

 

(5)           After
each adjustment of the Purchase Price pursuant to any of subsections (1) - (4) immediately above, the number of Common Shares purchasable
with each Right shall be adjusted to the quotient derived by dividing the Purchase Price as constituted after giving effect to
such adjustment into the Exercise Amount.

 

(6)           The
Company shall not take any of the actions described in any of subsections (1) - (3) above at a time when any Common Equivalent
Shares are outstanding unless the Company shall take substantively identical actions with respect to the outstanding Common Stock
and outstanding Common Equivalent Shares.  Conversely, the Company shall not take any actions with respect to outstanding
Common Equivalent Shares analogous to those described in any of subsections (1) - (3) above unless the Company shall take substantively
identical actions with respect to the outstanding Common Stock and outstanding Common Equivalent Shares.

 

(e)           Recapitalizations.

 

(1)           In
the event that after the Trigger Date, the Company shall issue any securities in a reclassification of the Common Stock or in any
other recapitalization (including any such reclassification in connection with a consolidation or merger in which the Company is
the surviving corporation), then in each such event:

 

(A)           the
property purchasable with each Right shall be adjusted to be whatever the owner of that Right would have owned by reason of both
(i) the exercise of that Right immediately prior to such recapitalization or reclassification and (ii) the effect of that recapitalization
or reclassification on the property assumed to have been received in such exercise.

 

(B)           The
Exercise Amount shall be allocated among the shares of stock and/or other units of property for which the  Right shall
be exercisable after giving effect to the adjustment cited in clause (A) based on the fair market value of such property to determine
the Purchase Price for each such share and/or unit.

 

(2)           To
illustrate the intended operation of this provision, assume that: (i) immediately prior to a reclassification, each Right were
exercisable for 10 Common Shares and the Exercise Amount were $200 (resulting in a purchase price of $20 per Common Share); (ii)
as a result of the Reclassification, each outstanding Common Share is reclassified into two New Common Shares and one Series C
Share; and (iii) immediately after the reclassification, the market value of each New Common Share was $15 and the market value
of each Series C share was $10.  Immediately after the assumed reclassification, each Right would be exercisable for
20 New Common Shares at a purchase price of $7.50 per share and ten Series C Shares at a purchase price of $5 per share.

 

    	 	15	 

     

    

 

(f)           In
the event a Triggering Event shall occur, or in the event there shall be a recapitalization or reclassification pursuant to Section
11(e), or in the event there shall be any merger or other action which shall cause a change in the property purchasable with the
Rights under Section 13, or in the event there shall be any other occurrence or development which shall cause the property purchasable
with the Rights to consist in whole or in part of anything other than Preferred Stock, then and in any such event:

 

(1)           The
certificates representing the Rights shall automatically be deemed to represent the adjusted terms of the Rights without the need
to replace such certificates.  The Company shall thereafter make arrangements for the production of certificates representing
the revised terms of the Rights resulting from such adjustment and shall use such certificates to represent Rights for which new
certificates shall be issuable by reason of a transfer of record ownership or by reason of a request by the existing record owner
for a replacement certificate representing the revised terms of the Rights.

 

(2)             The
principles underlying the adjustment provisions in this Section 11 and elsewhere in this Agreement shall be applied to fairly and
proportionately adjust the shares or other property purchasable with the Rights and the purchase price for each share or other
property unit purchasable with the Rights after giving effect to the adjustments required by reason of such event to reflect any
subsequent capital changes or other events.  Without limiting by implication the generality of the preceding sentence,
the provisions of Sections 7, 9, 10, 12, 13, 14 and 24 of this Agreement which related to the Preferred Stock shall after the occurrence
of any such event apply in a substantively identical manner to the shares or other property purchasable with the Rights after giving
effect to such event.

 

(g)           Before
taking any action that would cause an adjustment reducing the Purchase Price per share at which shares are purchasable with the
Rights below the par value of those shares, the Company shall take any corporate action which may, in the opinion of its counsel,
be necessary in order that the Company may validly and legally issue fully paid and nonassessable shares at such adjusted Purchase
Price.

 

(h)           In any case in which this Section 11 shall require
that an adjustment be made effective as of a record date for a specified event, the Company may elect to defer until the occurrence
of such event the issuance to the holder of any Right exercised after such record date the shares of Common Stock and other securities,
cash or property of the Company, if any, issuable upon such exercise over and above the shares of Common Stock and other securities,
cash or property of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such
adjustment; provided, however, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing
such holder's right to receive such additional shares (fractional or otherwise) or other securities, cash or property upon the
occurrence of the event requiring such adjustment.

 

(i)           The
Company covenants and agrees that on and after the Trigger Date neither it nor any combination of it and its subsidiaries shall  (i)
consolidate with any other Person, or (ii) merge with or into any other Person or (iii) directly or indirectly sell, lease, or
otherwise transfer or dispose of (in one transaction or a series of related transactions) assets or earning power aggregating more
than 50 percent of the assets or earning power of the Company and its Subsidiaries taken as a whole to any other Person if (A)
at the time of or immediately after such consolidation, merger, sale, lease, transfer, or disposition there are any rights, warrants,
securities or other instruments outstanding or agreements in effect which would substantially diminish or otherwise eliminate the
benefits intended to be afforded by the Rights, (B) prior to, simultaneously with or immediately after such consolidation, merger,
sale, lease, transfer, or disposition the stockholders (or equity holders) of the Person who constitutes, or would constitute,
the Principal Party in such transaction shall have received a distribution of Rights previously owned by such Person or any of
its Affiliates or Associates or (C) the form or nature of organization of the Principal Party would preclude or limit the exercisability
of the Rights.  The Company shall not consummate any such consolidation, merger, sale, lease, transfer, or disposition
unless prior thereto the Company and such other Person shall have executed and delivered to the Rights Agent a supplemental agreement
evidencing compliance with this Section 11(i).

 

(j)           The
Company covenants and agrees that, after the Trigger Date it will not, except as permitted by Section 11(c)(3) of this Agreement,
take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action
will, directly or indirectly, diminish or otherwise eliminate the benefits intended to be afforded by the Rights.

 

    	 	16	 

     

    

 

Section 12.               Certification
of Adjustments.       Whenever an adjustment is made as provided in Sections 11 and 13, the Company
shall (a) promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment,
(b) promptly file with the Rights Agent and with each transfer agent for the stock then purchasable with the Rights a copy of such
certificate and (c) mail a brief summary thereof to each holder of a Rights Certificate (or, if no Rights Certificates have been
issued, to each holder of a certificate representing shares of Common Stock) in accordance with Section 25.  Notwithstanding
the foregoing sentence, the failure of the Company to give such notice shall not affect the validity of or the force or effect
of or the requirement for such adjustment.  Any adjustment to be made pursuant to Sections 11 and 13 of this Agreement
shall be effective as of the date of the event giving rise to such adjustment.  The Rights Agent shall be fully protected
in relying on any such certificate and on any adjustment therein contained and shall not be obligated or responsible for calculating
any adjustment nor shall it be deemed to have knowledge of such adjustment unless and until it shall have received such certificate.

 

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

 

(a)           A
"Business Combination" shall be deemed to occur in the event that, in or following a Triggering Event, (i) the Company
shall, directly or indirectly, consolidate with, or merge with and into, any other Person (other than a Subsidiary of the Company
in a transaction that complies with Section 11(i) and Section 11(j) of this Agreement) in a transaction in which the Company is
not the continuing, resulting or surviving corporation of such merger or consolidation, (ii) any Person (other than a Subsidiary
of the Company in a transaction that complies with Section 11(i) and Section 11(j) of this Agreement) shall, directly or indirectly,
consolidate with the Company, or shall merge with and into the Company, in a transaction in which the Company is the continuing,
resulting  or surviving corporation of such merger or consolidation and, in connection with such merger or consolidation,
all or part of the Common Stock shall be changed (including, without limitation, any conversion into or exchange for securities
of the Company or of any other Person, cash or any other property), (iii) the Company shall, directly or indirectly, effect a share
exchange in which all or part of the Common Stock shall be changed (including, without limitation, any conversion into or exchange
for securities of any other Person, cash or any other property) or (iv) the Company shall, directly or indirectly, sell, lease,
exchange, mortgage, pledge or otherwise transfer or dispose of (or one or more of its Subsidiaries shall directly or indirectly
sell, lease, exchange, mortgage, pledge or otherwise transfer or dispose of), in one transaction or a series of related transactions,
assets or earning power aggregating more than 50 percent of the assets or earning power of the Company and its Subsidiaries (taken
as a whole) to any other Person (other than the Company or any of its Subsidiaries in one or more transactions each and all of
which comply with Section 11(i) and Section 11(j) of this Agreement).

 

In the event of
a Business Combination, proper provision shall be made so that each holder of a Right (except as otherwise provided in this Agreement)
shall thereafter have the right to receive, upon the exercise of each Right, such number of shares of Common Stock of the Principal
Party as shall be equal to the result obtained by dividing the Exercise Amount in effect prior to the Business Combination by 50
percent of the Current Market Price per share of the Common Stock of such Principal Party immediately prior to the consummation
of such Business Combination.  All shares of Common Stock of any Person for which any Right may be exercised after consummation
of a Business Combination as provided in this Section 13(a) shall, when issued upon exercise thereof in accordance with this Agreement,
be duly and validly authorized and issued, fully paid, nonassessable, freely tradable, not subject to liens or encumbrances, and
free of preemptive rights, rights of first refusal or any other restrictions or limitations on the transfer or ownership thereof
of any kind or nature whatsoever.  The Purchase Price per share for such Common Stock immediately after such Business
Combination shall be equal to 50 percent of the Current Market Price per share of the Common Stock of such Principal Party immediately
prior to the consummation of such Business Combination.

 

(b)           After
consummation of any Business Combination, (i) the Principal Party shall be liable for, and shall assume, by virtue of such Business
Combination and without the necessity of any further act, all the obligations and duties of the Company pursuant to this Agreement,
(ii) the term "Company" as used in this Agreement shall thereafter be deemed to refer to such Principal Party and (iii)
such Principal Party shall take all steps (including, but not limited to, the reservation of a sufficient number of shares of its
Common Stock in accordance with Section 9) in connection with such Business Combination as necessary to ensure that the provisions
of this Agreement shall thereafter be applicable, as nearly as reasonably may be, in relation to the shares of its Common Stock
thereafter deliverable upon the exercise of the Rights.

 

    	 	17	 

     

    

 

(c)           The
Company shall not consummate any Business Combination unless prior thereto (i) the Principal Party shall have a sufficient number
of authorized shares of its Common Stock which have not been issued or reserved for issuance (other than shares reserved for issuance
pursuant to this Agreement to the holders of Rights) to permit the exercise in full of the Rights in accordance with this Section
13, (ii) the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement providing
for the fulfillment of the Principal Party's obligations and the terms as set forth in paragraphs (a) and (b) of this Section 13
and further providing that, as soon as practicable on or after the date of such Business Combination, the Principal Party, at its
own expense, shall (A) prepare and file, if necessary, a registration statement on an appropriate form under the Securities Act
with respect to the Rights and the securities purchasable upon exercise of the Rights, (B) use its best efforts to cause such registration
statement to become effective as soon as practicable after such filing and remain effective (with a prospectus at all times meeting
the requirements of the Securities Act) until the Expiration Date, (C) deliver to holders of the Rights historical financial statements
for the Principal Party and each of its Affiliates which comply in all respects with the requirements for registration on Form
10 (or any successor form) under the Exchange Act, (D) use its best efforts to qualify or register the Rights and the securities
purchasable upon exercise of the Rights under the state securities or "blue sky" laws of such jurisdictions as may be
necessary or appropriate, (E) use its best efforts to list the Rights and the securities purchasable upon exercise of the Rights
on a United States national securities exchange and (F) 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, (iii) the Company and the Principal
Party shall have furnished to the Rights Agent an opinion of independent counsel stating that such supplemental agreement is a
legal, valid and binding agreement of the Principal Party enforceable against the Principal Party in accordance with its terms,
and (iv) the Company and the Principal Party shall have filed with the Rights Agent a certificate of a nationally recognized firm
of independent accountants setting forth the number of shares of Common Stock of such issuer which may be purchased upon the exercise
of each Right after the consummation of such Business Combination.

 

(d)           The
provisions of this Section 13 shall similarly apply to successive Business Combinations.  In the event a Business Combination
shall be consummated at any time after the occurrence of a Triggering Event, the Rights which have not theretofore been exercised
shall thereafter be exercisable for the consideration and in the manner described in Section 13(a).  The provisions of
Section 11(b) of this Agreement shall be applicable to events which occur after a Business Combination.

 

(e)           Notwithstanding
any other provision of this Agreement, no adjustment to the number or kind of shares (or fractions of a share), cash or other property
for which a Right is exercisable or the number of Rights outstanding or associated with each share of Common Stock or any similar
or other adjustment shall be made or be effective if such adjustment would have the effect of reducing or limiting the benefits
the holders of the Rights would have had absent such adjustment, including, without limitation, the benefits under Sections 11
and 13, unless the terms of this Agreement are amended so as to preserve such benefits, provided that this paragraph shall not
prevent any change prior to the Trigger Date permitted by Section 26(a) and provided that this Section 13(e) shall not be deemed
to limit or impair the right to engage in an exchange pursuant to Section 11(c)(2).

 

(f)           The
Company covenants and agrees that it shall not effect any Business Combination if at the time of, or immediately after such Business
Combination, there are any rights, options, warrants or other instruments outstanding which would diminish or otherwise eliminate
the benefits intended to be afforded by the Rights.

 

(g)           Without
limiting the generality of this Section 13, in the event the nature of the organization of any Principal Party shall preclude or
limit the acquisition of Common Stock of such Principal Party upon exercise of the Rights as required by Section 13(a) as a result
of a Business Combination, it shall be a condition to such Business Combination that such Principal Party shall take such steps
(including, but not limited to, a reorganization) as may be necessary to ensure that the benefits intended to be derived under
this Section 13 upon the exercise of the Rights are assured to the holders thereof.

 

    	 	18	 

     

    

 

Section 14.               Fractional
Rights and Fractional Shares.

 

(a)           The
Company shall not be required to issue fractional Rights or to distribute Rights Certificates which evidence fractional Rights.

 

(b)           The
Company shall permit the issuance and trading of Preferred Stock in fractional shares such that the smallest fractional share tradable
at any particular time shall equal the reciprocal of the Adjustment Number in effect at that particular time. The Company shall
not be required to issue fractions of shares of Preferred Stock (other than fractions which are integral multiples of the reciprocal
of the Adjustment Number) upon exercise of the Rights or to distribute certificates which evidence fractional shares of Preferred
Stock (other than fractions which are integral multiples of the reciprocal of the Adjustment Number).  Fractions of shares
of Preferred Stock may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate agreement
between the Company and a depositary selected by it, provided that such agreement shall provide that the holders of such depositary
receipts shall have all the rights, privileges and preferences to which they are entitled as beneficial owners of the Preferred
Stock.  In lieu of fractional shares of Preferred Stock that are not integral multiples of the reciprocal of the Adjustment
Number, the Company may at its option (i) issue scrip or warrants in registered form (either represented by a certificate or uncertificated)
or in bearer form (represented by a certificate) which shall entitle the holder to receive the reciprocal of the Adjustment Number
of one share of Preferred Stock upon the surrender of such scrip or warrants aggregating the reciprocal of the Adjustment Number
of one share of Preferred Stock, or (ii) pay to the registered holders of Rights Certificates at the time such Rights Certificates
are exercised as provided in this Agreement an amount in cash equal to the same fraction of the relevant closing price of a share
of Preferred Stock.  For purposes of this Section 14(b), the relevant closing price of a share of Preferred Stock shall
be the closing price of a share of Preferred Stock (as determined pursuant to the second sentence of the definition of "Current
Market Price" in Section 1) for the Trading Day immediately prior to the date of such exercise.

 

(c)           The
Company shall not be required to issue fractions of shares of Common Stock or Common Equivalent Shares or to distribute certificates
which evidence fractional shares of Common Stock. In lieu of such fractional shares of Common Stock, the Company shall pay to the
registered holders of the Rights Certificates with regard to which such fractional shares of Common Stock would otherwise be issuable
an amount in cash equal to the product derived by multiplying (x) the subject fraction, by (y) the closing price of a share of
Common Stock (as determined pursuant to the second sentence of the definition of "Current Market Price" in Section 1)
for the Trading Day immediately prior to the date of such exercise.

 

(d)           The
holder of a Right by his acceptance thereof expressly waives any right to receive any fractional Rights or any fractional shares
upon exercise of a Right (except as otherwise provided in this Agreement).

 

Section 15.               Rights
of Action.               Except as otherwise provided,
all rights of action in respect of this Agreement are vested in the respective registered holders of the Rights Certificates (and,
prior to the Distribution Date, any registered holders of associated Common Stock); and any registered holder of any Rights Certificate
(or, prior to the Distribution Date, any share of associated Common Stock), without the consent of the Rights Agent or of the holder
of any other Right, may, on his own behalf and for his own benefit, enforce, and may institute and maintain any suit, action or
proceeding against the Company to enforce, or otherwise act in respect of, his rights pursuant to this Agreement.  Without
limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of
Rights would not have an adequate remedy at law for any breach of this Agreement and will be entitled to specific performance of
the obligations under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to,
this Agreement.

 

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

 

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

 

(b)           after
the Distribution Date, the Rights Certificates will be transferable on the registry books of the Rights Agent only if surrendered
at the principal stock transfer office of the Rights Agent, duly endorsed or accompanied by a proper instrument of transfer;

 

    	 	19	 

     

    

 

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

 

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

 

(e)           Rights
that are Beneficially Owned by certain Persons will, under the circumstances set forth in Section 7(e), become null and void.

 

Section 17.               Rights
Holder Not Deemed a Stockholder.               No
holder, as such, of any Rights Certificate shall be entitled to vote or to receive dividends or distributions or shall be deemed
for any purpose the holder of Preferred Stock or any other securities, cash or other property which may at any time be issuable
on the exercise of the Rights represented thereby, nor shall anything contained in this Agreement 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, including,
without limitation, any right (i) to vote for the election of directors or upon any matter submitted to stockholders at any meeting
thereof, (ii) to give or withhold consent to any corporate action, (iii) to receive notice of meetings or other actions affecting
stockholders (except as provided in Section 24), (iv) to receive dividends, distributions or subscription rights, (v) to institute,
as a holder of Preferred Stock or other securities issuable on exercise of the Rights represented by any Rights Certificate, any
derivative action on behalf of the Company, or otherwise, until and only to the extent that the Right or Rights evidenced by such
Rights Certificate shall have been exercised in accordance with the provisions of this Agreement.

 

Section 18.               Concerning
the Rights Agent.               The Company agrees
to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand
of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration and execution
of this Agreement and the exercise and performance of its duties hereunder.  The Company also agrees to indemnify the
Rights Agent for, and to hold it harmless against, any loss, liability or expense, incurred without negligence, bad faith, willful
misconduct or breach of this Agreement on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection
with the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability
in the premises.  The costs and expenses of enforcing this right of indemnification shall also be paid by the Company.  The
indemnification provided for hereunder shall survive the expiration of the Rights and the termination of this Agreement.

 

The Rights Agent
may conclusively rely upon and shall be protected and shall incur no liability for or in respect of any action taken, suffered
or omitted by it in connection with its administration of this Agreement in reliance upon any Rights Certificate or certificate
for Preferred Stock or Common Stock or for other securities of the Company, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, direction, consent, certificate, statement or other paper or document reasonably believed
by it to be genuine and to be signed, executed and, when necessary, verified or acknowledged, by the proper Person or Persons.

 

Notwithstanding
anything in this Agreement to the contrary, in no event shall the Rights Agent be liable for special, 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.

 

    	 	20	 

     

    

 

Section 19.               Merger
or Consolidation or Change of Name of Rights Agent.               Any
corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any
corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party,
or any corporation succeeding to the corporate trust or stock transfer business of the Rights Agent or any successor Rights Agent,
shall be the successor to the Rights Agent under this Agreement without the execution or filing of any document or any further
act on the part of any of the parties hereto, provided that such corporation would be eligible for appointment as a successor Rights
Agent under the provisions of Section 21.  The purchase of all or substantially all of the Rights Agent’s assets
employed in the performance of this Agreement will be deemed to be a merger or consolidation for purposes of this Section 19.  In
case at the time such successor Rights Agent shall succeed to the agency created by this Agreement any of the Rights Certificates
shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor
Rights Agent and deliver such Rights Certificate so countersigned; and in case at that time any of the Rights Certificates shall
not have been countersigned, any successor Rights Agent may countersign such Rights Certificate either in the name of the predecessor
Rights Agent 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.

 

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

 

(a)           Before
the Rights Agent acts or refrains from acting, the Rights Agent may consult with legal counsel (who may be legal counsel for the
Company), and the opinion of such counsel shall be full and complete authorization and protection to the Rights Agent as to any
action taken or omitted by it in good faith and in accordance with such 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 or any Affiliate or Associate of an Acquiring Person or the
determination of Current Market Price) be proved or established by the Company prior to taking or suffering any action hereunder,
such fact or matter (unless other evidence in respect thereof be specifically prescribed in this Agreement) may be deemed to be
conclusively proved and established by a certificate signed by the Chairman, the Chief Executive Officer, the President, the Chief
Financial Officer, the Treasurer, any Vice President or the Secretary of the Company and delivered to the Rights Agent; and such
certificate shall be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions
of this Agreement in reliance upon such certificate.

 

(c)           The
Rights Agent shall be liable hereunder only for the negligence, bad faith, willful misconduct or breach of this Agreement by it
or its directors, officers, employees, Affiliates, agents, advisors and representatives.

 

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

 

    	 	21	 

     

    

 

(e)           The
Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery of
this Agreement (except the due execution and delivery of this Agreement by the Rights Agent) or in respect of the validity or execution
of any Rights Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be responsible for any change or adjustment
in the terms of the Rights (including the manner, method or amount thereof) provided for in Sections 3, 11, 13 or 23 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 actual notice of any change or adjustment is required); nor shall it by any act hereunder be deemed
to make any representation or warranty as to the authorization or reservation of any shares of Preferred Stock, Common Stock or
other securities to be issued pursuant to this Agreement or any Rights Certificate or as to whether any shares of Preferred Stock,
Common Stock or other securities will, when issued, be validly authorized and issued, fully paid and nonassessable.

 

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

 

(g)           The
Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from
the Chief Executive Officer, the President, the Chief Financial Officer, the Treasurer, any Vice President or the Secretary of
the Company, and to apply to such officers for advice or instructions in connection with its duties, and it shall not be liable
for any action taken or suffered to be taken by it in good faith in accordance with instructions of any such officer.  Any
application by the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in
writing any action proposed to be taken or omitted by the Rights Agent under this Agreement and the date on or after which such
action shall be taken of such omission shall be effective.  The Rights Agent shall not be liable for any action taken
by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or after the date specified
in  such application (which date shall not be less than ten 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 subject to the proposed action or omission and/or specifying the action to be taken or omitted.

 

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

 

(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
or by or through its attorneys or agents.

 

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

 

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

 

(l)           The
Rights Agent shall not be required to take notice or be deemed to have notice of any fact, event or determination (including, without
limitation, any dates or events defined in this Agreement or the designation of any Person as an Acquiring Person, Affiliate or
Associate) under this Agreement unless and until the Rights Agent shall be specifically notified in writing by the Company of such
fact, event or determination.

 

    	 	22	 

     

    

 

(m)           From
time to time after the Distribution Date, upon the written request of the Company, the Rights Agent will promptly deliver to the
Company a list, as of the most recent practicable date (or as of such earlier date as may be specified by the Company), of the
record holders of Rights and Rights Certificates.

 

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 notice of 30 days in writing
mailed to the Company and to each transfer agent of the Common Stock or Preferred Stock by registered or certified mail and, at
the expense of the Company, to the holders of the Rights Certificates by either (i) first-class mail or (ii) by disclosure in a
periodic report of the Company required to be filed under the Exchange Act, any permitted report under the Exchange Act, a press
release of the Company or in any proxy or other communication of the Company with its stockholders.  The Company may
remove the Rights Agent or any successor Rights Agent upon notice of 30 days in writing, mailed to the Rights Agent or successor
Rights Agent, as the case may be, and to each transfer agent of the Common Stock or Preferred Stock by registered or certified
mail, and to the holders of the Rights Certificates by either (i) first-class mail or (ii) by disclosure in a periodic report of
the Company required to be filed under the Exchange Act, any permitted report under the Exchange Act, a press release of the Company
or in any proxy or other communication of the Company with its stockholders.  If the Rights Agent shall resign or be
removed or shall otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent.  Notwithstanding
any other provision of this Agreement, in no event shall the resignation or removal of a Rights Agent be effective until a successor
Rights Agent shall have been appointed and have accepted such appointment.  If the Company shall fail to make such appointment
within a period of 30 days after such removal or after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Rights Agent or by any holder of a Rights Certificate (who shall, with such notice, submit his Rights
Certificate for inspection by the Company), then the incumbent Rights Agent or the 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 (i) a corporation organized and doing business under the laws of
the United States or of the State of Maryland (or of any other state of the United States so long as such corporation is authorized
to conduct a banking, corporate trust or stock transfer business) in good standing, which is authorized under such laws to exercise
corporate trust or stock transfer powers and is subject to supervision or examination by federal or state authority and which has
at the time of its appointment as Rights Agent a combined capital and surplus of at least $25,000,000 or (ii) a subsidiary of a
corporation described in clause (i) of this sentence.  After appointment, the successor Rights Agent shall be vested
with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act
or deed; 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 such purpose.  Not
later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights
Agent and each transfer agent of the Common Stock or Preferred Stock; the Company shall also either (i) mail a notice thereof in
writing to the registered holders of the Rights Certificates or (ii) make a disclosure with respect thereto in a periodic report
of the Company required to be filed under the Exchange Act, any permitted report under the Exchange Act, a press release of the
Company or in any proxy or other communication of the Company with its stockholders.  Failure to give any notice provided
for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal
of the Rights Agent or the appointment of the successor Rights Agent, as the case may be.

 

Section 22.               Issuance
of New Rights Certificates.               Notwithstanding
any of the provisions of this Agreement or of 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 a majority of the Board of Directors of the Company to
reflect any adjustment or change in the Purchase Price per share and the number or kind or class of securities, cash or other property
purchasable under the Rights Certificates made in accordance with the provisions of this Agreement.

 

Section 23.               Redemption
and Termination.

 

(a)           The
Board of Directors of the Company may, at its option, at any time prior to the earlier of (i) the Trigger Date and (ii) the Expiration
Date, redeem all but not less than all of the then-outstanding Rights at a redemption price of $.001 per Right (the "Redemption
Price") appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date
of this Agreement.  The Company may, at its option, pay the Redemption Price in cash, shares (including fractional shares)
of Common Stock (based on the Current Market Price of the Common Stock at the time of redemption) or any other form of consideration
deemed appropriate by the Board of Directors.  The redemption of the Rights by the Board of Directors of the Company
may be made effective at such time, on such basis and with such conditions as the Board of Directors of the Company in its sole
discretion may establish.

 

    	 	23	 

     

    

 

(b)           At
the time and date of effectiveness set forth in any resolution of the Board of Directors of the Company ordering the redemption
of the Rights, without any further action and without any further 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; provided, however, that such resolution
of the Board of Directors of the Company may be revoked, rescinded or otherwise modified at any time prior to the time and date
of effectiveness set forth in such resolution, in which event the right to exercise will not terminate at the time and date originally
set for such termination by the Board of Directors of the Company. The Company shall promptly give public notice of any such redemption;
provided, however, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption.
The Company shall also give notice of such redemption to the Rights Agent.  The Company may elect to give notice of such
redemption to the holders of the then-outstanding Rights by mailing such notice to all such holders at their last addresses as
they appear upon the registry books of the Rights Agent or, prior to the issuance of Rights Certificates, on the registry books
of the transfer agent for the Common Stock.  Any notice which is mailed in the manner provided in this Agreement shall
be deemed given, whether or not the holder receives the notice.  In connection with any redemption permitted under this
Section 23, the Company may, at its option, discharge all of its obligations with respect to the Rights by (i) issuing a press
release announcing the manner of redemption of the Rights and (ii) mailing payment of the Redemption Price to the registered holders
of the Rights at their last addresses as they appear on the registry books of the Rights Agent or, prior to the issuance of the
Rights Certificates, on the registry books of the transfer agent for the Common Stock, and upon such action, all outstanding Rights
Certificates shall be null and void without any further action by the Company.  Neither the Company nor any of its Affiliates
or Associates may redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically set forth
in this Section 23, and other than in connection with the purchase of shares of Common Stock prior to the earlier of the Trigger
Date and the Expiration Date.

 

Section 24.               Notice
of Certain Events.               In case the Company,
on or after the Distribution Date, shall propose to (a) pay any dividend payable in stock of any class to the holders of its Common
Shares or to make any other distribution to the holders of its Common Shares (other than a regular periodic cash dividend at an
annual rate not in excess of 125 percent of the annualized rate of the cash dividend paid on the Common Shares during the immediately
preceding fiscal year), or (b) offer to the holders of its Common Shares rights, options or warrants to subscribe for or to purchase
any additional shares of Common Shares or shares of stock of any class or any other securities, rights or options, or (c) effect
any reclassification of the Common Shares (other than a reclassification involving only the subdivision of outstanding shares of
Common Shares, a change in the par value of such Common Shares or a change from par value to no par value), or (d) directly or
indirectly effect any consolidation or merger into or with, or effect any sale, lease, exchange, or other transfer or disposition
(or to permit one or more of its Subsidiaries to effect any sale, lease, exchange or other transfer or disposition), in one transaction
or a series of related transactions, of more than 50 percent of the assets or earning power of the Company and its Subsidiaries
(taken as a whole) to, any other Person, or (e) effect the liquidation, dissolution or winding up of the Company, then, in each
such case, the Company shall give to each holder of a Right, in accordance with Section 25, a notice of such proposed action, which
shall specify any record date for the purposes of such stock dividend or distribution of rights, or the date on which such reclassification,
consolidation, merger, sale, lease, exchange, transfer, disposition, liquidation, dissolution or winding up is to take place and
if such holders will or may participate therein, the date of participation therein by the holders of Common Shares, if any such
date is to be fixed, and such notice shall be so given in the case of any action covered by clause (a) or (b) above at least 20
days prior to the record date for determining holders of the Common Shares for purposes of such action, and in the case of any
such other action, at least 20 days prior to the date of the taking of such proposed action or the date of participation therein,
if any, by the holders of Common Shares, whichever shall be the earlier.  The failure to give notice as required by this
Section 24 or any defect therein shall not affect the legality or validity of the action taken by the Company or the vote upon
any such action.

 

In case any Triggering
Event or Business Combination shall occur, then, in any such case, the Company shall as soon as practicable thereafter give to
each holder of a Rights Certificate, in accordance with Section 25, notice of the occurrence of such Triggering Event or Business
Combination, which shall specify the Triggering Event or Business Combination and include a description of the consequences of
such event to holders of Rights under Section 11 or 13.

 

    	 	24	 

     

    

 

Section 25.               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 mail, postage prepaid, addressed (until another address
is filed in writing with the Rights Agent) as follows:

 

Spherix Incorporated

One Rockefeller Plaza, 11th
Floor

New York, NY 10020

Attention:  Chairman of the
Board

 

Subject to the provisions of Section
21, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Rights Certificate
to or on the Rights Agent shall be sufficiently given or made if sent by registered or certified mail and shall be deemed given
upon receipt and addressed (until another address is filed in writing with the Company) as follows:

 

Transfer Online,
Inc.

512 SE Salmon Street

Portland, OR 97214

 

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 shall
be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder
as shown on the registry books of the Company (or, if no Rights Certificates have been issued, if sent by first-class mail, postage
prepaid, addressed to each holder of a certificate representing shares of Common Stock at the address of such holder as shown on
the Company's Common Stock registry books).

 

Section 26.               Supplements
and Amendments.

 

(a)           At
any time prior to the Trigger Date, a majority of the Board of Directors of the Company may, and the Rights Agent shall, if so
directed, supplement or amend any provision of this Agreement (including, without limitation, (i) the Beneficial Ownership percent
as set forth in Section 1 at which a Person becomes an Acquiring Person, (ii) the definition of Exempt Person as set forth in Section
1 to include any Person in addition to the Persons described therein, and (iii) to the extent permitted by applicable law, the
number, designation, preferences and rights of shares of the Preferred Stock as set forth in Exhibit A) without the approval of
any holders of Rights.

 

(b)           Except
as otherwise provided in Section 26(c):

 

(1)           The
Board of Directors of the Company shall have the exclusive power and authority to administer this Agreement and to exercise all
rights and powers specifically granted to the Board of Directors or the Company, or as may be necessary or advisable in the administration
of this Agreement, including, without limitation, the right and power to (i) interpret the provisions of this Agreement and (ii)
make all determinations deemed necessary or advisable for the administration of this Agreement (including a determination to redeem
or not redeem the Rights, to exchange or not exchange the Rights for Common Stock, or to amend or supplement this Agreement). 

 

(2)           All
such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with
respect to the foregoing) which are done or made by the Board of Directors of the Company in good faith shall (x) be final, conclusive
and binding on the Company, the Rights Agent, the holders of the Rights and all other Persons and (y) not subject the Board of
Directors of the Company to any liability to the holders of the Rights.

 

    	 	25	 

     

    

 

(c)           From
and after the Trigger Date:

 

(1)           No
amendment or other change shall be made in this Agreement or the terms of the Rights (including the number, designation, preferences
and rights of shares of the Preferred Stock as set forth in Exhibit A) which would have an effect prohibited by Section 11(j) or
Section 13(f) or which would otherwise adversely affect the interests of the holders of Rights Certificates (other than an Acquiring
Person or any other Person in whose hands the Rights are void under the provisions of Section 7(e)).  Notwithstanding
the foregoing, a majority of the Board of Directors may, and the Rights Agent shall, if so directed, amend this Agreement prior
to the Trigger Date effective upon the Trigger Date.

 

(2)           The
Board of Directors of the Company shall not be entitled to exercise the powers specified in Section 26(b) after the Trigger Date
unless the Board of Directors can establish by clear and convincing evidence that its action satisfies the requirement in Section
26(c)(1).

 

(d)           Notwithstanding
anything in this Agreement to the contrary, no supplement or amendment that changes the rights and duties of the Rights Agent under
this Agreement will be effective against the Rights Agent without the execution of such supplement or amendment by the Rights Agent.

 

Section 27.               Successors.               All
the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to
the benefit of their respective successors and assigns hereunder.

 

Section 28.               Benefits
of this Agreement.               Nothing in this
Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the registered holders of Rights
any legal or equitable right, remedy or claim under this Agreement; and this Agreement shall be for the sole and exclusive benefit
of the Company, the Rights Agent and the registered holders of the Rights.

 

Section 29.               Severability.               Whenever
possible, each provision of this Agreement shall be interpreted in such manner as to be valid and enforceable under applicable
law, but if any provision of this Agreement shall be held to be prohibited by or unenforceable under applicable law, (i) such provision
shall be applied to accomplish the objectives of the provision as originally written to the fullest extent permitted by law and
(ii) all other provisions of this Agreement shall remain in full force and effect.  No rule of strict construction, rule
resolving ambiguities against the person who drafted the provision giving rise to such ambiguities, or other such rule of interpretation
shall be applied against any party with respect to this Agreement.

 

Section 30.               Governing
Law.               This Agreement 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 internal laws of Delaware applicable to contracts to be made and performed
entirely within Delaware.

 

Section 31.               Counterparts.               This
Agreement may be executed in counterparts and each of such counterparts shall for all purposes be deemed to be an original, and
both such counterparts shall together constitute but one and the same instrument.

 

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

 

Section 33.               Grammatical
Construction.               Throughout this Agreement,
where such meanings would be appropriate, (a) any pronouns used herein shall include the corresponding masculine, feminine or neuter
forms (e.g., references to "he" shall also include "she" and "it" and references to "who"
and "whom" shall also include "which") and (b) the plural form of nouns and pronouns shall include the singular
and vice-versa.

 

    	 	26	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.

 

SPHERIX INCORPORATED

 

	/s/ Anthony Hayes	 
	By: Anthony Hayes
	Title: CEO

 

TRANSFER ONLINE INC.

as Rights Agent

 

	/s/ Lori Livingston	 
	By: Lori Livingston
	Title: CEO and President

 

    	 	27	 

     

    

 

Exhibit A

 

FORM OF

CERTIFICATE OF
DESIGNATION, PREFERENCES AND RIGHTS

OF SERIES A PARTICIPATING
PREFERRED STOCK

OF

SPHERIX INCORPORATED

 

Pursuant to Section
151 of the Corporation Law

of the State of
Delaware

 

Spherix Incorporated,
a corporation organized and existing under the General Corporation Law of the State of Delaware, in accordance with the provisions
of Section 151 thereof, DOES HEREBY CERTIFY:

 

That pursuant to
the authority conferred upon the Board of Directors by the Certificate of Incorporation of the Corporation, as amended, the Board
of Directors on January 1, 2013, adopted the following resolution creating a series of five hundred thousand (500,000) shares of
Preferred Stock designated as Series A Participating Preferred Stock:

 

RESOLVED, that pursuant
to the authority vested in the Board of Directors by ARTICLE FOURTH of the Certificate of Incorporation and out of the Preferred
Stock authorized therein, the Board hereby authorizes that a series of Preferred Stock of the Corporation be, and it hereby is,
created and approved for issuance in accordance with the Rights Agreement dated as of January 1, 2013, between the Corporation
and Equity Stock Transfer, LLC, and that the designation and amount thereof and the voting powers, preferences and relative, participating,
optional and other special rights of the shares of such series, and the qualifications, limitations or restrictions thereof be,
and hereby are, as follows:

 

Section 1.               Designation
and Amount.               The shares of such series
shall be designated as Series A Participating Preferred Stock (the "Series A Preferred Stock") and the number of shares
constituting such series shall be five hundred thousand (500,000).  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 A 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 A Preferred Stock.

 

Section 2.               Dividends
and Distributions.

 

(a)           Subject
to the prior and superior rights of the holders of any outstanding shares of any series of Preferred Stock ranking prior and superior
to the shares of Series A Preferred Stock with respect to dividends, the holders of shares of Series A Preferred Stock, in preference
to the holders of Common Stock and of any other junior stock, shall be entitled to receive, when, as and if declared by the Board
of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on the fifteenth day of March,
June, September and December in each year (each such date being referred to herein as a "Quarterly Dividend Payment Date"),
commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A
Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $0.005 or (b) the Adjustment
Number (as defined below) times the aggregate per share amount of all cash dividends, and the Adjustment Number times the aggregate
per share amount (payable in kind) of all non-cash dividends or other distributions other than a dividend payable in shares of
Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common
Stock since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment
Date, since the first issuance of any share or fraction of a share of Series A Preferred Stock.  The "Adjustment
Number" shall initially be 100.  In the event the Corporation shall at any time after January 1, 2013 (i) declare
or pay any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock into a greater
number of shares or (iii) combine the outstanding Common Stock into a smaller number of shares, then in each such case the Adjustment
Number in effect immediately prior to such event shall be adjusted by multiplying such Adjustment Number by a fraction, the numerator
of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number
of shares of Common Stock that were outstanding immediately prior to such event. 

 

    	 	A-1	 

     

    

 

(b)           The
Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) of this Section
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 $0.005 per share
on the Series A Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date.

 

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

 

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

 

(a)           Each
share of Series A Preferred Stock shall entitle the holder thereof to a number of votes equal to the Adjustment Number (as adjusted
from time to time pursuant to Section 2(A) hereof) on all matters submitted to a vote of the stockholders of the Corporation.

 

(b)           Except
as otherwise provided herein, by law or in the Certificate of Incorporation or By-Laws, the holders of shares of Series A 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.

 

(i)           If
at any time dividends on any Series A Preferred Stock shall be in arrears in an amount equal to six quarterly dividends thereon,
the occurrence of such contingency shall mark the beginning of a period (herein called a "default period") that shall
extend until such time when all accrued and unpaid dividends for all previous quarterly dividend periods and for the current quarterly
period on all shares of Series A Preferred Stock then outstanding shall have been declared and paid or set apart for payment. During
each default period, (1) the number of Directors shall be increased by two, effective as of the time of election of such Directors
as herein provided, and (2) the holders of Series A Preferred Stock and the holders of other Preferred Stock upon which these or
like voting rights have been conferred and are exercisable (the "Voting Preferred Stock") with dividends in arrears equal
to six quarterly dividends thereon, voting as a class, irrespective of series, shall have the right to elect such two Directors.

 

(ii)           During
any default period, such voting right of the holders of Series A Preferred Stock may be exercised initially at a special meeting
called pursuant to subparagraph (iii) of this Section 3 or at any annual meeting of stockholders, and thereafter at annual meetings
of stockholders, provided that such voting right shall not be exercised unless the holders of at least one-third in number of the
shares of Voting Preferred Stock outstanding shall be present in person or by proxy.  The absence of a quorum of the
holders of Common Stock shall not affect the exercise by the holders of Voting Preferred Stock of such voting right.

 

    	 	A-2	 

     

    

 

(iii)           Unless
the holders of Voting Preferred Stock shall, during an existing default period, have previously exercised their right to elect
Directors, the Board of Directors may order, or any stockholder or stockholders owning in the aggregate not less than 10 percent
of the total number of shares of Voting Preferred Stock outstanding, irrespective of series, may request, the calling of a special
meeting of the holders of Voting Preferred Stock, which meeting shall thereupon be called by the Chairman of the Board, the President,
an Executive Vice President, a Vice President or the Secretary of the Corporation.  Notice of such meeting and of any
annual meeting at which holders of Voting Preferred Stock are entitled to vote pursuant to this paragraph 3(iii) shall be given
to each holder of record of Voting Preferred Stock by mailing a copy of such notice to him at his last address as the same appears
on the books of the Corporation.  Such meeting shall be called for a time not earlier than 10 days and not later than
60 days after such order or request or, in default of the calling of such meeting within 60 days after such order or request, such
meeting may be called on similar notice by any stockholder or stockholders owning in the aggregate not less than 10 percent of
the total number of shares of Voting Preferred Stock outstanding.  Notwithstanding the provisions of this paragraph 3(iii),
no such special meeting shall be called during the period within 60 days immediately preceding the date fixed for the next annual
meeting of the stockholders.

 

(iv)           In
any default period, after the holders of Voting Preferred Stock shall have exercised their right to elect Directors voting as a
class, (x) the Directors so elected by the holders of Voting Preferred Stock shall continue in office until their successors shall
have been elected by such holders or until the expiration of the default period, and (y) any vacancy in the Board of Directors
may be filled by vote of a majority of the remaining Directors theretofore elected by the holders of the class or classes of stock
which elected the Director whose office shall have become vacant.  References in this paragraph 3 to Directors elected
by the holders of a particular class or classes of stock shall include Directors elected by such Directors to fill vacancies as
provided in clause (y) of the foregoing sentence.

 

(v)           Immediately
upon the expiration of a default period, (x) the right of the holders of Voting Preferred Stock as a class to elect Directors shall
cease, (y) the term of any Directors elected by the holders of Voting Preferred Stock as a class shall terminate and (z) the number
of Directors shall be such number as may be provided for in the Certificate of Incorporation or By-Laws irrespective of any increase
made pursuant to the provisions of this Section 3 (such number being subject, however, to change thereafter in any manner provided
by law or in the Certificate of Incorporation or By-Laws).  Any vacancies in the Board of Directors effected by the provisions
of clauses (y) and (z) in the preceding sentence may be filled by a majority of the remaining Directors.

 

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

 

Section 4.               Certain
Restrictions.

 

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

 

(i)           declare
or pay dividends on, 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 A Preferred Stock;

 

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

 

(iii)           redeem
or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the Series A Preferred Stock, 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 A Preferred Stock; or

 

    	 	A-3	 

     

    

 

(iv)           purchase
or otherwise acquire for consideration any shares of Series A Preferred Stock, or any shares of stock ranking on a parity with
the Series A Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the
Board 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.

 

Section 5.               Reacquired
Shares.               Any shares of Series A 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 to be created by resolution or resolutions of the Board of
Directors, subject to the conditions and restrictions on issuance set forth herein, in the Certificate of Incorporation or By-laws
or otherwise required by law.

 

Section 6.               Liquidation,
Dissolution or Winding Up.               Upon any
liquidation, dissolution or winding up of the Corporation, no distribution shall be made (A) to the holders of shares of stock
ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock unless,
prior thereto, the holders of shares of Series A Preferred Stock shall have received the greater of (i) $0.0001 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 (ii) an aggregate amount per share, equal to the Adjustment Number (as adjusted from time to time pursuant to Section 2(a)
hereof) times the aggregate amount to be distributed per share to holders of Common Stock, or (B) to the holders of stock ranking
on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except distributions
made ratably on the Series A Preferred Stock and all other such parity stock in proportion to the total amounts to which the holders
of all such shares are entitled upon such liquidation, dissolution or winding up.

 

Section 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 the shares of Series A Preferred
Stock then outstanding shall at the same time be similarly exchanged or changed in an amount per share equal to the Adjustment
Number (as adjusted from time to time pursuant to Section 2(a) hereof) 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.

 

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

 

Section 9.               Amendment.               The
Certificate of Incorporation of the Corporation shall not be amended in any manner which would materially alter or change the powers,
preferences or special rights of the Series A Preferred Stock so as to affect them adversely without the affirmative vote of the
holders of two-thirds of the outstanding shares of Series A Preferred Stock, if any, voting together as a single class.  At
any time when there are no shares of Series A Preferred Stock outstanding, the number, designation, preferences and rights of the
Series A Preferred Stock as set forth in this Certificate of Designation may be amended by the Board of Directors in the manner
provided in Section 151(g) of the Delaware General Corporation Law.

 

Section 10.             Prior
Filing.    The Certificate of Designation filed on March 1, 2001 is hereby rescinded and terminated.

 

    	 	A-4	 

     

    

 

IN WITNESS WHEREOF,
I have executed and subscribed this Certificate and do affirm the foregoing as true under the penalties of perjury as of the 1st
day of January, 2013.

 

	 	SPHERIX INCORPORATED

 

	By:	/s/ Robert L. Clayton	 
	 	Robert L. Clayton, Chief Financial Officer

 

    	 	A-5	 

     

    

 

Exhibit B

 

[Form of Rights
Certificate]

Certificate No.
R-                                         __________Rights

 

NOT EXERCISABLE
AFTER [DECEMBER 31, 2020] OR EARLIER IF

NOTICE OF REDEMPTION
OR EXCHANGE IS GIVEN.  THE RIGHTS ARE

SUBJECT TO REDEMPTION
OR EXCHANGE, AT THE OPTION OF THE

COMPANY, 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 AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED
IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID.

 

Rights Certificate

 

SPHERIX INCORPORATED

 

This certifies that
_________________________, or registered assigns, is the registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement dated as of January 1, 2013,
as amended and restated on May 23, 2017 (the "Rights Agreement") between Spherix Incorporated, a Delaware corporation
(the "Company"), and Transfer Online Inc., a __________ corporation (the "Rights Agent"), unless notice of
redemption or exchange shall have been previously given by the Company, to purchase from the Company at any time after the Distribution
Date (as such term is defined in the Rights Agreement) and prior to 5:00 P.M. Baltimore, Maryland  time) on December
31, 2020, at the principal corporate trust office of the Rights Agent, or at the office of its successor as Rights Agent, one nineteen-hundredth
of a fully paid nonassessable share of the Series A Participating Preferred Stock, no par value, of the Company (the "Preferred
Stock"), at a purchase price (the "Purchase Price") of $7.46 per one one-hundredth share, upon presentation and
surrender of this Rights Certificate with the Form of Election to Purchase duly executed.  The Purchase Price may be
paid in cash or by certified bank check or bank draft payable to the order of the Company.

 

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.  Capitalized terms used but not defined in this Rights Certificate that are defined in the
Rights Agreement shall have the same meanings ascribed to them in the Rights Agreement.  Copies of the Rights Agreement
are on file at the principal executive offices of the Company and the above-mentioned office of the Rights Agent.

 

As provided in the
Rights Agreement, the Purchase Price and the number of shares of Preferred Stock or other securities, cash or other property which
may be purchased upon the exercise of the Rights evidenced by this Rights Certificate are subject to modification and adjustment
upon the happening of certain events.

 

If the Rights evidenced
by this Rights Certificate are or were formerly beneficially owned, on or after the earlier of the Distribution Date and the Trigger
Date, by (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a direct or indirect transferee of
an Acquiring Person (or of any Associate or Affiliate of an Acquiring Person) who becomes or becomes entitled to be a transferee
after the Acquiring Person becomes such, or (iii) a direct or indirect transferee of an Acquiring Person (or of an Associate or
Affiliate of such Acquiring Person) who becomes or becomes entitled to be a transferee prior to or concurrently with the Acquiring
Person becoming such and receives such Rights pursuant to either (A) a direct or indirect transfer (whether or not for consideration)
from the Acquiring Person (or from an Associate or Affiliate of such Acquiring Person) to holders of equity interests in such Acquiring
Person (or to holders of equity interests in any Associate or Affiliate of such Acquiring Person) or to any Person with whom the
Acquiring Person (or an Associate or Affiliate of such Acquiring Person) has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a direct or indirect transfer which a majority of the Board of Directors of the Company
determines is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of Section 7(e)
of the Rights Agreement, such Rights shall, immediately upon the occurrence of a Triggering Event and without any further action,
be null and void and no holder of such Rights (including any subsequent holder) shall have any rights whatsoever with respect to
such Rights whether under the Rights Agreement or otherwise, provided, however, that, in the case of transferees under clause (ii)
or clause (iii) above, any Rights beneficially owned by such transferee shall be null and void only if and to the extent such Rights
were formerly beneficially owned by a Person who was, at the time such Person beneficially owned such Rights, or who later became,
an Acquiring Person or an Affiliate or Associate of such Acquiring Person. 

 

    	 	B-1	 

     

    

 

This Rights Certificate,
with or without other Rights Certificates, upon surrender at the principal corporate trust office of the Rights Agent, may be exchanged
for another Rights Certificate or Rights Certificates of like tenor and date evidencing Rights entitling the holder to purchase
a like aggregate number of shares of Preferred Stock or other property as the Rights evidenced by the Rights Certificate or Rights
Certificates surrendered 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 (a) may be redeemed by the Board of Directors of the Company
at its option at a redemption price of $.001 per Right,  subject to adjustment, payable, at the election of the Company,
in cash or shares (including fractional shares) of Common  Stock or such other consideration as the Board of Directors
of the Company may determine, at any time prior to the earlier of (i) the Trigger Date and (ii) the Expiration Date, or (b) may
be exchanged by the Board of Directors of the Company, at its option, in whole or in part, for shares of the Company's Common Stock
or other equivalent securities on a one-for-one basis, at any time after the Trigger Date and prior to (i) any Person (other than
an Exempt Person), together with all Affiliates and Associates of such Person, becoming the Beneficial Owner of 50 percent or more
of the Common Stock then outstanding and (ii) the occurrence of a Business Combination.

 

No fractional shares
of Preferred Stock (other than fractions that are integral multiples of one one-hundredth of a share of Preferred Stock, which
may, at the election of the Company, be evidenced by depository receipts) are required to be issued upon the exercise of any Right
or Rights evidenced hereby, but in lieu thereof the Company may elect to (i) evidence fractional shares by depositary receipts,
(ii) issue scrip or warrants in registered form (either represented by a certificate or uncertificated) or in bearer form (represented
by a certificate) which shall entitle the holder to receive a full share upon the surrender of such scrip or warrants aggregating
a full share, or (iii) make a cash payment, as provided in the Rights Agreement.

 

No holder of this
Rights Certificate, as such, shall be entitled to vote or to receive dividends on, or shall be deemed for any purpose the holder
of, Preferred Stock or any other securities, cash or property which may at any time be issuable on the exercise hereof, nor shall
anything contained in the Rights Agreement or this Certificate be construed to confer upon the holder hereof, as such, any of the
rights of a stockholder of the Company, including, without limitation, any right to vote for the election of directors or upon
any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive
notice of meetings or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends
or subscription rights, or to institute, as a holder of Preferred Stock or other securities issuable on the exercise of the Rights
represented by this Certificate, any derivative action, or otherwise, until and only to the extent 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 the Rights Agent.

 

    	 	B-2	 

     

    

 

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

 

Dated as of ___________________.

 

SPHERIX INCORPORATED

 

By:

Title:

 

Countersigned:

 

Transfer Online Inc.

 

	By:	 
	 	Authorized Officer

 

[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
the undersigned _________________________ hereby sells, assigns and transfers unto __________________________________ __________________________________________________________________ 

(Please print name
and address of transferee)

 

Rights evidenced by this Rights Certificate,
together with all right, title and interest therein, and does hereby irrevocably constitute and appoint _______________________
with a power of Attorney to transfer the said Rights and a Rights Certificate evidencing such Rights on the books of ______________,
with full power of substitution.

 

A new Rights Certificate
evidencing the remaining balance, if any, of such Rights not hereby sold, assigned and transferred shall be mailed to and registered
in the name of the undersigned unless such person requests that such Rights Certificate be registered in the name of and mailed
to (complete only if a Rights Certificate evidencing any remaining balance of Rights is to be registered in a name other than the
undersigned):

 

Please insert Social Security or other
identifying number of transferee: _________

 

__________________________________________________________________

(Please print name
and address)

 

__________________________________________________________________

 

    	 	B-3	 

     

    

 

Certificate

 

The undersigned
hereby certifies by checking the appropriate boxes that:

 

(1)           his
Rights Certificate or any Rights evidenced hereby __ are __ are 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 an Acquiring Person (as such terms are defined in the Rights
Agreement);

 

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

 

Dated:____________________                                                                                     ________________________________________

Signature

 

Signature Guaranteed:

 

Signatures must be guaranteed by an
eligible guarantor institution with membership in a recognized signature guarantee medallion program as approved by the Stock Transfer
Association.

 

NOTICE

 

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

 

In the event the
certification set forth above in the Form of Assignment is not completed, the Company will  deem the beneficial owner
of the Rights evidenced by this Right 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 or other transfer of this Rights Certificate or any Rights evidenced hereby,
will affix a legend to that effect on any Rights Certificate issued in whole or partial exchange for this Rights Certificate.

 

FORM OF ELECTION
TO PURCHASE

 

(To be executed
if holder desires to exercise

the Rights represented
by this Rights Certificate)

 

To:  SPHERIX INCORPORATED

 

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

 

Please insert social security or other
identifying number: _____________________

 

__________________________________________________________________

(Please print name
and address)

 

__________________________________________________________________

 

A new Rights Certificate
evidencing the remaining balance, if any, of such Rights not hereby exercised shall be mailed to and registered in the name of
the undersigned unless such person requests that such Rights Certificate be registered in the name of and mailed to (complete only
if Rights Certificate evidencing any remaining balance of Rights is to be registered in a name other than the undersigned):

 

Please insert social security or other
identifying number: _____________________

 

__________________________________________________________________

(Please print name
and address)

 

__________________________________________________________________

 

    	 	B-4	 

     

    

 

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 an Acquiring Person (as such terms are defined in the Rights Agreement);

 

(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 or was an Acquiring Person or an Affiliate or Associate of an Acquiring Person.

 

Dated:  ______________________                                                                                                ____________________________________

Signature

 

Signature Guaranteed:

 

Signatures must be guaranteed by an
eligible guarantor institution with membership in a recognized signature guarantee medallion program as approved by the Stock Transfer
Association.

 

NOTICE

 

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

 

In the event the
certification set forth above in the Form of Election to Purchase 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 or other transfer of this Rights Certificate or any Rights evidenced hereby,
will affix a legend to that effect on any Rights Certificate issued in whole or partial exchange for this Rights Certificate.

 

    	 	B-5	 

     

    

 

Exhibit C

 

SUMMARY OF RIGHTS
TO PURCHASE PREFERRED SHARES

 

ADOPTION OF RIGHTS PLAN

 

On January 1, 2013,
the Board of Directors of Spherix Incorporated (the "Company") authorized the issuance of one preferred share purchase
right (a "Right") for each outstanding share of common stock, par value $0.0001 per share (the "Common Shares"),
of the Company.  The distribution is payable to stockholders of record at the close of business on January 1, 2013 (the
"Record Date"), and with respect to all Common Shares that become outstanding after the Record Date and prior to the
earliest of the Distribution Date (as defined below), the redemption of the Rights, the exchange of the Rights, and the expiration
of the Rights (and, in certain cases, following the Distribution Date).

 

The Board adopted
the Rights Agreement (as herein defined) to protect stockholders from coercive or otherwise unfair takeover tactics.  In
general terms, it works by imposing a significant penalty under any person or group that acquires 10% or more of the Common Shares
without the approval of the Board.  As a result, the overall effect of the Rights Agreement and the issuance of the Rights
may be to render more difficult or discourage a merger, tender or exchange offer or other business combination involving the Company
that is not approved by the Board.  However, neither the Rights Agreement nor the Rights should interfere with any merger,
tender or exchange offer or other business combination approved by the Board.

 

Each Right entitles
the registered holder to purchase from the Company one nineteen-hundredth of a share of Series A Participating Preferred Stock,  no
par value per share, of the Company (the "Preferred Shares") at a price of $7.46 per one one-hundredth of a Preferred
Share (the "Purchase Price"), subject to adjustment.  The description and terms of the Rights are set forth
in a Rights Agreement, as amended and restated on May 23, 2017 (the "Rights Agreement"), between the Company and Transfer
Online Inc. as Rights Agent (the "Rights Agent").

 

The Rights have
certain anti-takeover effects.  The Rights may cause substantial dilution to a person or group that attempts to acquire
the Company on terms not approved by the Board of Directors, except pursuant to an offer conditioned on a substantial number of
Rights being acquired.  The Rights should not interfere with any merger or other business combination approved by the
Board of Directors because of the Board of Directors ability to redeem the Rights, as discussed below.

 

RIGHTS ATTACH TO COMMON SHARES INITIALLY

 

Initially
and until a Distribution Date (as defined below) occurs, the Rights are attached to all Common Shares and no separate Rights certificates
will be issued.  During this initial period:

 

-   The
Rights are not exercisable;

 

-   Holders,
as such, have no voting rights;

 

-   The Rights are transferred with the Common Shares and are not transferable separately from the Common Shares;

 

-   No
dividends are paid on the Rights;

 

-   New
Common Share certificates or book entry shares issued will contain a notation incorporating the Rights Agreement by reference;

 

-   The
transfer of any Common Shares will also constitute the transfer of the Rights; and

 

The Rights expire
December 31, 2020 (the "Expiration Date") unless earlier redeemed or exchange by the Company as described below. 

 

    	 	C-1	 

     

    

 

DISTRIBUTION OF RIGHTS

 

Separate certificates
evidencing the Rights will be mailed to holders of record of the Common Shares on the "Distribution Date."  The
Distribution Date is the earlier to occur of the following two events:

 

-   The
tenth (10th) day after a public announcement that a person or group of affiliated or associated persons has acquired or obtained
the right to acquire 10% or more of the outstanding Common Shares; or

 

-  The
tenth (10th) business day after the commencement or public disclosure of an intention to commence a tender offer or exchange offer
by a person if, upon consummation of the offer, such person could acquire beneficial ownership of 10% or more of the outstanding
of Common Shares.

 

RIGHT TO PURCHASE SPHERIX STOCK

 

If a person or group
acquires or obtains the right to acquire 10% or more of the outstanding Common Shares (thereby becoming an "Acquiring Person")
each holder of a Right (except those held by the Acquiring Person and its affiliates and associates) will have the right to purchase,
upon exercise, Common Shares (as adjusted for any splits, dividends and the like) (or, in certain circumstances, Preferred Shares,
Common Share equivalents or cash) having a value equal to two times the exercise price of the Right.  In other words,
the Rights holders other than the Acquiring Person may purchase Common Shares at a 50% discount (subject to adjustment for any
splits, dividends and the like).

 

For example, at
the initial exercise price of $7.46 per Right, each Right not owned by an Acquiring Person would entitle its holder to purchase
$14.92 worth of Common Shares (or other consideration, as noted above) for $7.46.  Assuming a value of $3.73 per Common
Share at such time, the holder of each valid Right would be entitled to purchase four (4) Common Shares for $14.92.

 

RIGHTS TO PURCHASE ACQUIRING PERSON
STOCK

 

In the event that,
at the time or after a person becomes an Acquiring Person, the Company is involved in a merger or other business combination in
which (i) the Company is not the surviving corporation, (ii) Common Stock is changed or exchanged, or (iii) 50% or more of the
Company's consolidated assets or earning power are sold, then each Right (other than Rights that are or were owned by the Acquiring
Person and certain related persons and transferees, which will thereafter be void) shall thereafter be exercisable for a number
of shares of common stock of the acquiring company having a market value of two times the exercise price of the Right.  In
other words, a Rights holder may purchase the acquiring company's common stock at a 50% discount.

 

EXCHANGE OF SPHERIX STOCK FOR RIGHTS

 

At
any time after any person or group becomes an Acquiring Person and before the Acquiring Person acquires 50% or more of the outstanding
Common Shares, the Board of Directors may exchange the Rights (other than Rights owned by the Acquiring Person which will have
become void), in whole or in part, at an exchange ratio of one Common Share, or one nineteen-hundredth of a Preferred Share (or
a Common Share equivalent), per Right (subject to adjustment).

 

REDEMPTION

 

The Rights are redeemable
by the Company, at the direction of its Board of Directors, in whole but not in part at a price of $.001 per Right at any time
prior to the time that a person or a group has become an Acquiring Person.  Immediately upon redemption, the right to
exercise will terminate and the only right of holders will be to receive the redemption price.

 

    	 	C-2	 

     

    

 

AMENDMENTS

 

As long as the Rights
are redeemable, the terms of the Rights may be amended by the Board of Directors in its discretion without the consent of the Rights
holders.  After that time, no amendment may adversely affect the interests of the Rights Holder (other than the Acquiring
Person).

 

TERMS OF PREFERRED SHARES

 

The Preferred Shares
purchasable upon exercise of the Rights will not be redeemable.  Each Preferred Share will be entitled to a minimum preferential
quarterly dividend payment equal to the greater of $0.005 per share and 100 times the dividend declared per Common Share.  In
the event of liquidation, the holders of the Preferred Shares will be entitled to a minimum preferential liquidation payment equal
to the greater of $.0001 per share and 100 times the payment made per Common Share.  Each Preferred Share will have 100
votes per share, voting together with the Common Shares.  In the event of any merger, consolidation or other transaction
in which Common Shares are exchanged, each Preferred Share will be entitled to receive 100 times the amount received per Common
Share.

 

MISCELLANEOUS

 

The Purchase Price
payable, and the number and kind of securities, cash or other property issuable, upon exercise of the Rights are subject to adjustment
from time to time to prevent dilution (i) in the event of a stock dividend or distribution on, or a subdivision or combination
of, the Common Shares, (ii) upon the grant to holders of the Common Shares of rights, options or warrants to subscribe for Common
Shares or securities convertible into Common Shares at less than the current market price, (iii) upon the distribution to holders
of the Common Shares of securities, cash, evidences of indebtedness or assets (excluding regular periodic cash dividends out of
earnings or retained earnings) and (iv) in connection with recapitalizations of the Company or reclassifications of the Common
Shares.

 

No
fractional Common Shares or Preferred Shares will be required to be issued (other than fractions of Preferred Shares which are
integral multiples of one one-hundredth of a Preferred Share, 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 market price of Common Shares or Preferred Shares
on the last trading date prior to the date of exercise.

 

Because
of the nature of the Preferred Shares' dividend, liquidation and voting rights, the value of the one one-hundredth interest in
a Preferred Share that may be purchased upon exercise of each Right should approximate the value of one Common Share.

 

A
copy of the Rights Agreement will be filed with the Securities and Exchange Commission on or around May 25, 2017 as an Exhibit
to an application for Registration on Form 8-A/A and as an Exhibit to the Company's Current Report on Form 8-K.  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, which is incorporated herein by reference.

 

    	 	C-3EX-4.2

 Exhibit 4.2 

AUTHORIZING RESOLUTION 

June 12, 2017 
  

 
 This Authorizing Resolution relates
to $150,000,000 aggregate principal amount of additional 4.875% Senior Notes due 2027 (the “Additional Notes”) to be issued in accordance with the indenture dated as of February 7, 2012 (as amended and supplemented, the
“Indenture”) among Toll Brothers Finance Corp. (the “Issuer”), Toll Brothers, Inc. (the “Company”) and the other Guarantors and The Bank of New York Mellon, as trustee (the
“Trustee”), as amended and supplemented by the authorizing resolution relating to the existing $300,000,000 aggregate principal amount of 4.875% Senior Notes due 2027 attached hereto as Annex A (the “Authorizing Resolution
for the Existing Notes”). Capitalized terms not otherwise defined herein but used below shall have the meanings given to them in the Indenture. 

PARAGRAPH 1. Pursuant to Section 2.01 of the Indenture and Paragraph 2 of the Authorizing Resolution for the Existing Notes, the
aggregate principal amount of additional 4.875% Senior Notes due 2027 which shall be authenticated and delivered under the Indenture pursuant to this Authorizing Resolution shall be $150,000,000 (except for any such notes authenticated and delivered
upon registration of the transfer of, or in exchange for, or in lieu of other such notes pursuant to the terms of the Indenture). For the avoidance of doubt, additional 4.875% Senior Notes due 2027 may be authenticated and issued pursuant to
Paragraph 2 of the Authorizing Resolution for the Existing Notes. 
 PARAGRAPH 2. The terms of the Additional Notes shall be the same as
those set forth in the Authorizing Resolution for the Existing Notes. 
 PARAGRAPH 3. For the avoidance of doubt, the Additional Notes shall
be entitled to the benefit of Article Nine of the Indenture. 

  
 1 

 ANNEX A 

[Authorizing Resolution for the Existing Notes attached] 

  
 2 

 AUTHORIZING RESOLUTION 

4.875% SENIOR NOTES DUE 2027 

March 10, 2017 
  

 
 This Authorizing Resolution relates
to $300,000,000 aggregate principal amount of 4.875% Senior Notes due 2027 to be issued in accordance with the indenture dated as of February 7, 2012 (as amended and supplemented, the “Indenture”), among Toll Brothers Finance
Corp. (the “Issuer”), Toll Brothers, Inc. (the “Company”) and the other Guarantors and The Bank of New York Mellon, as trustee (the “Trustee”). In the event of a conflict between any provisions of
the Indenture and this Authorizing Resolution, the relevant provision or provisions of this Authorizing Resolution shall govern with respect to the Notes (as defined below). Capitalized terms not otherwise defined herein but used below shall have
the meanings given to them in the Indenture. 
 PARAGRAPH 1. The title of the senior notes shall be “4.875% Senior Notes due
2027” (the “Notes”). 
 PARAGRAPH 2. The aggregate principal amount of the Notes that shall be authenticated and
delivered under the Indenture, shall be $300,000,000 (except for any Notes authenticated and delivered upon registration of the transfer of, or in exchange for, or in lieu of other Notes pursuant to the terms of the Indenture); provided,
however, that, subject to the following two sentences, the Notes may be reopened for issuances of an unlimited amount of additional Notes at any time in accordance with the terms of the Indenture. The Issuer will not issue any additional
Notes with the same CUSIP number as the Notes authenticated by the prior sentence if they will not be fungible with such Notes for U.S. federal income tax purposes. Any additional Notes will constitute part of the same series as the Notes
authenticated by the second preceding sentence. The form of Notes shall be in the form of Exhibit A hereto. The Notes will be issued only in fully registered form without interest coupons, in denominations of $2,000 and integral multiples of $1,000
in excess thereof. 
 PARAGRAPH 3. The principal amount of the Notes is due and payable in full on March 15, 2027, subject to any
earlier redemption as referred to in the Indenture. 
 The principal of, premium, if any, and interest on the Notes will be payable, and,
subject to the restrictions on transfer described in the Indenture, the Notes may be surrendered for registration of transfer or exchange, at the office or agency maintained by the Issuer for that purpose; provided that payments of interest
may be made at the Issuer’s option by check mailed to the address of the persons entitled thereto or by transfer to an account maintained by the payee with a bank located in the United States. The office or agency initially maintained by the
Issuer for the foregoing purposes will be the corporate trust office of the Trustee. 
 PARAGRAPH 4. Interest on the Notes shall accrue at
a rate of 4.875% per annum (computed on the basis of a 360-day year of twelve 30-day months), from March 10, 2017 to maturity or any earlier redemption; and
interest will be payable semiannually 

  
 3 

 
in arrears on March 15 and September 15 of each year, commencing on September 15, 2017, to the Holders in whose names such Notes are registered at the close of business on
March 1 or September 1, as the case may be, preceding such interest payment date. 
 PARAGRAPH 5. Prior to the Par Call Date, the
Issuer may, at its option, redeem the Notes in whole at any time, or in part from time to time, by providing notice thereof pursuant to Section 3.03 of the Indenture, at a redemption price equal to the greater of (a) 100% of the principal
amount of the Notes being redeemed and (b) the present value of the Remaining Scheduled Payments (as defined below) on the Notes being redeemed on the redemption date (assuming, for this purpose, that the Notes are scheduled to mature on the
Par Call Date), discounted to the date of redemption, on a semiannual basis, at the Treasury Rate plus 50 basis points. On or after the Par Call Date, the Issuer may, at its option, redeem the Notes in whole at any time, or in part from time to
time, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed. In both instances, the Issuer will also pay accrued and unpaid interest on the Notes to be redeemed to the date of redemption. In determining the
redemption price and accrued and unpaid interest, interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months. If money sufficient to
pay the redemption price of and accrued and unpaid interest on the Notes to be redeemed is deposited with the Trustee on or before the redemption date, on and after the redemption date interest will cease to accrue on the Notes (or such portions
thereof) called for redemption and such Notes will cease to be outstanding. Notice of any redemption may, at the Issuer’s discretion, be subject to one or more conditions precedent. In the event that any relevant condition precedent is not
satisfied (or waived by the Issuer) as of the date specified for redemption in any such notice of redemption (or amendment thereto), the Issuer may, in its discretion, rescind such notice or amend it on one or more occasions to specify another
redemption date until the satisfaction (or waiver by the Issuer) of any such conditions precedent, unless such notice is earlier rescinded by the Issuer as described above. 

As used in this Paragraph 5, the following terms shall have the respective meanings set forth below: 

“Comparable Treasury Issue” means the United States Treasury security selected by the Reference Treasury Dealer as having a
maturity comparable to the remaining term of the Notes to be redeemed (assuming, for this purpose, that the Notes are scheduled to mature on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to such remaining term of such Notes. 

“Comparable Treasury Price” means, with respect to any redemption date, (1) the average of the Reference Treasury Dealer
Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such
quotations. 

  
 4 

 “Par Call Date” means the date that is three months prior to the date that the
Notes are scheduled to mature. 
 “Quotation Agent” means one of the Reference Treasury Dealers appointed by the Issuer.

 “Reference Treasury Dealer” means (A) Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho
Securities USA Inc., a primary U.S. government securities dealer selected by SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC (or their respective successors or affiliates that are Primary Treasury Dealers (as defined below)), and
any successor; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), the Issuer will substitute therefor another
Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected by the Issuer. 
 “Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m. on the third business day preceding such redemption date. 

“Remaining Scheduled Payments” means, with respect to any Note, the remaining scheduled payments of the principal thereof to
be redeemed and interest thereon that would be due after the related redemption date but for such redemption (assuming, for this purpose, that the Notes are scheduled to mature on the Par Call Date); provided, however, that if such
redemption date is not an interest payment date with respect to such Note, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such redemption date. 

“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. 

PARAGRAPH 6. If a Change of Control Repurchase Event occurs, unless the Issuer has previously exercised its right to redeem the Notes as
described above, the Issuer will make an offer to each Holder of Notes to repurchase all or any part (in amounts of $2,000 or in integral multiples of $1,000 in excess thereof) of that Holder’s Notes at a repurchase price in cash equal to 101%
of the aggregate principal amount of repurchased Notes plus any accrued and unpaid interest on the repurchased Notes to the date of purchase. Within 30 days following any Change of Control Repurchase Event or, at the Issuer’s option, prior to
any Change of Control, but after the public announcement of the Change of Control, the Issuer will send a notice to each Holder, with a copy to the 

  
 5 

 
Trustee, describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase Notes on the payment date specified in the
notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is sent. The notice shall, if sent prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on
the Change of Control Repurchase Event occurring on or prior to the payment date specified in the notice. The Issuer will comply with the requirements of Rule 14e-1 under the Exchange Act and any other
securities laws and regulations under the Exchange Act to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Repurchase Event. To the extent that the provisions of
any securities laws or regulations conflict with the Change of Control Repurchase Event provisions herein, the Issuer will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the
Change of Control Repurchase Event provisions herein by virtue of such conflict. 
 On the Change of Control Repurchase Event payment date,
the Issuer will, to the extent lawful: 
  

	 	•	 	accept for payment all Notes or portions of Notes properly tendered pursuant to the Issuer’s offer; 

  

	 	•	 	deposit with the Paying Agent an amount equal to the aggregate purchase price in respect of all Notes or portions of Notes properly tendered; and 

 

	 	•	 	deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an Officers’ Certificate stating the aggregate principal amount of Notes being purchased by the Issuer. 

The Paying Agent will promptly send to each Holder of properly tendered Notes the purchase price for the Notes, and the Trustee will promptly
authenticate and send (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased portion of any Notes surrendered; provided that each new Note will be in a principal amount of $2,000 or
an integral multiple of $1,000 in excess thereof. 
 The Issuer will not be required to make an offer to repurchase the Notes upon a Change
of Control Repurchase Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Issuer and such third party purchases all Notes properly tendered and not
withdrawn under its offer. 
 As used in this Paragraph 6, the following terms shall have the respective meanings set forth below: 

“Below Investment Grade Rating Event” means the Notes are rated below Investment Grade (defined below) by all three Rating
Agencies on any date from the date of the public notice of an arrangement that could result in a Change of 

  
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Control until the end of the 60-day period following public notice of the occurrence of a Change of Control (which period shall be extended so long as the
rating of the Notes is under publicly announced consideration for possible downgrade by any of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be
deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Repurchase Event) if the Rating Agencies making the
reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at the Company’s request that the reduction was the result, in whole or in part, of any event or
circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event). 

“Change of Control” means the consummation of any transaction (including, without limitation, any merger or consolidation) the
result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) becomes the beneficial owner, directly or indirectly, of more than 50% of the Company’s Voting Stock (defined below), measured by
voting power rather than number of shares. Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control if (1) the Company becomes a wholly owned subsidiary of a holding company and (2) the holders of the
Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of the Company’s Voting Stock immediately prior to that transaction. 

“Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating
Event. 
 “Fitch” means Fitch Ratings, Ltd., a division of Fitch Inc. 

“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories
of Moody’s); a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch); a rating of BBB- or better by S&P (or its
equivalent under any successor rating categories of S&P); and the equivalent Investment Grade credit rating from any additional Rating Agency or Rating Agencies selected by the Company. 

“Rating Agency” means (1) each of Moody’s, Fitch and S&P; and (2) if any of Moody’s, Fitch or S&P
ceases to rate the Notes or fails to make a rating of the Notes publicly available (for reasons outside of the Company’s control), a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by a resolution of the Company’s board of directors) as a replacement agency for Moody’s, Fitch or S&P, or all three,
as the case may be. 

  
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 “Moody’s” means Moody’s Investor Services, Inc. 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. 

“Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any
date means the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 

PARAGRAPH 7. Principal of and interest on the Notes shall be payable in accordance with Section 1 and 2 of the Notes. The Depository for
the Notes upon issuance will be Cede & Co., as nominee of DTC. Notwithstanding Section 2.02 of the Indenture, the Issuer’s seal shall not be required to be reproduced on the Notes. 

PARAGRAPH 8. The Notes shall not be convertible into the Issuer’s or any of the Guarantors’ common stock. 

PARAGRAPH 9. Neither the Notes nor the Guarantees shall be secured. 

PARAGRAPH 10. As used in the Indenture, the following terms shall have the respective meanings set forth below: 

“Attributable Debt” means, with respect to a Sale and Lease-back Transaction, the present value (discounted at the weighted
average effective interest cost per annum of the outstanding senior notes of all series issued by the Issuer, compounded semiannually) of the obligation of the lessee for rental payments during the remaining term of the lease included in such
transaction, including any period for which such lease has been extended or may, at the option of the lessor, be extended or, if earlier, until the earliest date on which the lessee may terminate such lease upon payment of a penalty (in which case
the obligation of the lessee for rental payments shall include such penalty), after excluding all amounts required to be paid on account of maintenance and repairs, insurance, taxes, assessments, water and utility rates and similar charges. 

“Consolidated Net Tangible Assets” means the total amount of assets which would be included on a combined balance sheet of the
Issuer, the Company and the other Guarantors under accounting principles generally accepted in the United States (less applicable reserves and other properly deductible items) after deducting therefrom: (1) all short-term liabilities, except
for liabilities payable by their terms more than one year from the date of determination (or renewable or extendible at the option of the obligor for a period ending more than one year after such date) and liabilities in respect of retiree benefits
other than pensions for which the Restricted Subsidiaries are required to accrue pursuant to Statement of Financial Accounting Standards No. 106; (2) investments in subsidiaries that are not Restricted Subsidiaries; and (3) all goodwill,
trade names, trademarks, patents, unamortized debt discount, unamortized expense incurred in the issuance of debt and other tangible assets. 

  
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 “Existing Indentures” means (1) the Indenture dated as of April 20,
2009, among the Issuer, the guarantors named therein and The Bank of New York Mellon, as trustee, as amended and supplemented by the First Supplemental Indenture through the Fifteenth Supplemental Indenture, the resolutions dated as of
April 20, 2009 authorizing the 8.910% Senior Notes due 2017 and the resolutions dated as of September 22, 2009 authorizing the 6.750% Senior Notes due 2019, and as may be further amended and supplemented, (2) the Indenture dated as of
February 7, 2012, among the Issuer, the guarantors named therein and The Bank of New York Mellon, as trustee, as amended and supplemented by the First Supplemental Indenture through the Thirteenth Supplemental Indenture and the resolutions
dated as of January 31, 2012 authorizing the 5.875% Senior Notes due 2022, the resolutions dated as of April 3, 2013 and May 8, 2013 authorizing the 4.375% Senior Notes due 2023, the resolutions dated as of November 21, 2013
authorizing the 4.000% Senior Notes due 2018, the resolutions dated as of November 21, 2013 authorizing the 5.625% Senior Notes due 2024, the resolutions dated as of October 30, 2015 authorizing the 4.875% Senior Notes due 2025 and as may
be further amended and supplemented and (3) the Indenture dated as of September 11, 2012, among the Issuer, the guarantors named therein and The Bank of New York Mellon, as trustee, pursuant to which the 0.5% Exchangeable Senior Notes due
2032 were issued, as amended and supplemented by the First Supplemental Indenture through the Twelfth Supplemental Indenture, and as may be further amended and supplemented. 

“Non-Recourse Indebtedness” means the Indebtedness or other obligations secured by a
Lien on property to the extent that the liability for the Indebtedness or other obligations is limited to the security of the property without liability on the part of the Issuer, the Company or any Restricted Subsidiary (other than the Restricted
Subsidiary that holds title to the property) for any deficiency. 
 “Revolving Credit Facility” means the Credit Agreement
by and among First Huntingdon Finance Corp., Toll Brothers, Inc., the lenders named therein and Citibank, N.A., as administrative agent, dated May 19, 2016, and any related documents (including, without limitation, any guarantees or security
documents), as such agreements (and such related documents) may be amended, restated, supplemented, renewed, replaced by the existing lenders or by successors or otherwise modified from time to time, including any agreement(s) extending the maturity
of or refinancing or refunding all or any portion of the indebtedness or increasing the amount to be borrowed under such agreement(s) or any successor agreement(s), whether or not by or among the same parties. 

“Sale and Lease-back Transaction” means a sale or transfer made by the Issuer, the Company or a Restricted Subsidiary (except
a sale or transfer made to the Issuer, the Company or another Restricted Subsidiary) of any property which is either (a) a manufacturing facility, office building or warehouse whose book value equals or exceeds 1% of Consolidated Net Tangible
Assets as of the date of determination or (b) another property (not including a model home) which exceeds 5% of Consolidated Net Tangible Assets as of the date of determination, 

  
 9 

 
if such sale or transfer is made with the agreement, commitment or intention of leasing such property to the Issuer, the Company or a Restricted Subsidiary for more than a three-year term. 

“Secured Debt” means any Indebtedness which is secured by (i) a Security Interest in any of the property of the Issuer,
the Company or any Restricted Subsidiary or (ii) a Security Interest in shares of stock owned directly or indirectly by the Issuer, the Company or a Restricted Subsidiary in a corporation or in equity interests owned by the Issuer, the Company
or a Restricted Subsidiary in a partnership or other entity not organized as a corporation or in the Company’s rights or the rights of a Restricted Subsidiary in respect of Indebtedness of a corporation, partnership or other entity in which the
Issuer, the Company or a Restricted Subsidiary has an equity interest; provided that “Secured Debt” shall not include Non-Recourse Indebtedness, as such categories of assets are determined in
accordance with accounting principles generally accepted in the United States. The securing in the foregoing manner of any such Indebtedness which immediately prior thereto was not Secured Debt shall be deemed to be the creation of Secured Debt at
the time security is given. 
 “Security Interests” means any mortgage, pledge, lien, encumbrance or other security interest
which secures the payment or performance of an obligation. 
 PARAGRAPH 11. The Notes shall be entitled to the benefit of each of the
covenants in Article Four of the Indenture and each of the following additional covenants (each of which is deemed to be a provision of the Indenture and, when referred to as a provision of the Indenture, shall be identified by reference to the
Section number which is set forth immediately preceding such covenant): 
 Section 4.06. Restrictions on Secured Debt. 

The Issuer and the Company shall not, and shall not cause or permit a Restricted Subsidiary to, create, incur, assume or guarantee any Secured
Debt unless the Notes will be secured equally and ratably with (or prior to) such Secured Debt; provided, however, that this Section 4.06 does not prohibit the creation, incurrence, assumption or guarantee of Secured Debt that is
secured by: 
 (1) Security Interests in model homes, homes held for sale, homes that are under contract for sale, contracts
for the sale of homes, land (improved or unimproved), manufacturing plants, warehouses or office buildings and fixtures and equipment located thereat or thereon; 

(2) Security Interests in property at the time of its acquisition by the Issuer, the Company or a Restricted Subsidiary,
including Capitalized Lease Obligations, which Security Interests secure obligations assumed by the Issuer, the Company or a Restricted Subsidiary, or in the property of a corporation or other entity at the time it is merged into or consolidated
with the Issuer, the Company or a Restricted Subsidiary (other than Secured Debt created in 

  
 10 

 
contemplation of the acquisition of such property or the consummation of such a merger or where the Security Interest attaches to or affects the property of the Issuer, the Company or a
Restricted Subsidiary prior to such transaction); 
 (3) Security Interests arising from conditional sales agreements or
title retention agreements with respect to property acquired by the Issuer, the Company or a Restricted Subsidiary; 
 (4)
Security Interests incurred in connection with pollution control, industrial revenue, water, sewage or any similar item; and 

(5) Security Interests securing Indebtedness of a Restricted Subsidiary owing to the Issuer, the Company or to another
Restricted Subsidiary that is wholly-owned (directly or indirectly) by the Company or Security Interests securing the Issuer’s Indebtedness owing to a Guarantor. 

Additionally, such permitted Secured Debt includes any amendment, restatement, supplement, renewal, replacement, extension or refunding, in
whole or in part, of Secured Debt permitted at the time of the original incurrence thereof. 
 In addition, the Issuer and the Guarantors
may create, incur, assume or guarantee Secured Debt, without equally and ratably securing the Notes, if immediately thereafter the sum of (1) the aggregate principal amount of all Secured Debt outstanding (excluding Secured Debt permitted under
clauses (1) through (5) above and any Secured Debt in relation to which the Notes have been equally and ratably secured) and (2) all Attributable Debt in respect of Sale and Lease-back Transactions (excluding Attributable Debt in respect
of Sale and Lease-back Transactions as to which the provisions of clauses (1) through (3) of Section 4.07 “Restrictions on Sale and Lease-back Transactions” have been complied with) as of the date of determination would
not exceed 20% of Consolidated Net Tangible Assets. 
 The provisions of this Section 4.06 with respect to limitations on Secured Debt
are not applicable to Non-Recourse Indebtedness and will not restrict or limit the Issuer’s or any Guarantor’s ability to create, incur, assume or guarantee any unsecured Indebtedness, or the ability
of any subsidiary which is not a Restricted Subsidiary to create, incur, assume or guarantee any secured or unsecured Indebtedness. 
 Section 4.07.
Restrictions on Sale and Lease-back Transactions. 
 The Issuer and the Company shall not, and shall not permit any Restricted Subsidiary
to, enter into any Sale and Lease-back Transaction, unless: 
 (1)    notice is promptly given to the
Trustee of the Sale and Lease-back Transaction; 
 (2)    fair value is received by the Issuer, the
Company or the relevant Restricted Subsidiary for the property sold (as determined in good faith by the Company communicated in writing to the Trustee); and 

  
 11 

 (3)    the Issuer, the Company or a Restricted Subsidiary,
within 365 days after the completion of the Sale and Lease-back Transaction, applies, or enters into a definitive agreement to apply within such 365-day period, an amount equal to the net proceeds of such Sale
and Lease-back Transaction (x) to the redemption, repayment or retirement of (a) Securities of any Series under the Existing Indentures (including the cancellation by the Trustee of any securities of any series delivered by the Issuer to
the Trustee), (b) Indebtedness of the Issuer that ranks equally with the Notes or (c) Indebtedness of any Guarantor that ranks equally with the Guarantee of such Guarantor, and/or (y) to the purchase by the Issuer, the Company or any
Restricted Subsidiary of property used in their respective trade or businesses. 
 This Section 4.07 will not apply to a Sale and
Lease-back Transaction that relates to a sale of a property that occurs within 180 days from the latest of (x) the date of acquisition of the property by the Issuer, the Company or a Restricted Subsidiary, (y) the date of the completion of
construction of that property or (z) the date of commencement of full operations on that property. In addition, the Issuer and the Guarantors may, without complying with the above restrictions, enter into a Sale and Lease-back Transaction if
immediately thereafter the sum of (1) the aggregate principal amount of all Secured Debt outstanding (excluding Secured Debt permitted under clauses (1) through (5) described in Section 4.06 “Restrictions on Secured
Debt” and any Secured Debt in relation to which the Notes have been equally and ratably secured) and (2) all Attributable Debt in respect of Sale and Lease-back Transactions (excluding Attributable Debt in respect of Sale and
Lease-back Transactions as to which the provisions of clauses (1) through (3) of this Section 4.07 have been complied with) as of the date of determination would not exceed 20% of Consolidated Net Tangible Assets 

PARAGRAPH 12. The Notes shall be entitled to the benefit of the provisions of Article Five of the Indenture; provided, however,
that (a) clause (2) of the first paragraph of such Article shall be amended and restated as follows: 
 “(2) such person (unless
it has merged into the Issuer or a Guarantor) assumes by supplemental indenture, in a form reasonably satisfactory to the Trustee, all the obligations of the Issuer or such Guarantor, as the case may be, relating to the Securities or the Guarantee,
as the case may be, and the Indenture; and” 
 and (b) the second paragraph of such Article shall be amended and restated as
follows: 
 “Upon any such consolidation, merger, sale, assignment or transfer (including any consolidation, merger, sale, assignment,
transfer described in the proviso at the end of the immediately preceding sentence) the successor corporation or legal entity, as the case may be, will be substituted for the Issuer or such Guarantor, as applicable, under the Indenture. The
successor Person may, as applicable, then exercise every power and right of the Issuer or such Guarantor, as applicable, under the Indenture, and the Issuer or such Guarantor, as applicable, will be released from all of its respective liabilities
and obligations in respect of the Securities or the Guarantee, as applicable, and 

  
 12 

 
the Indenture. If the Issuer or any Guarantor leases all or substantially all of its assets, the lessee Person will be the successor to the Issuer or such Guarantor, as applicable, and may
exercise every power and right of the Issuer or such Guarantor, as applicable, under the Indenture, but the Issuer or such Guarantor, as applicable, will not be released from its respective obligations to pay the principal and interest, if any, on
the Securities. Notwithstanding the foregoing, the requirements of the immediately preceding paragraph shall not apply to any transaction pursuant to which a Guarantor (other than Toll Brothers, Inc.) will be upon consummation thereof permitted to
be released from its Guarantee in accordance with Section 9.03.” 
 PARAGRAPH 13. The Notes shall be entitled to the benefit of
each Event of Default enumerated in Section 6.01 of the Indenture; provided, however, that sub-clause (4) of such Section 6.01 shall be amended and restated as follows: 

“(4) any default under an instrument evidencing or securing any of the Issuer’s Indebtedness or the Indebtedness of any Guarantor
(other than Non-Recourse Indebtedness) aggregating $75,000,000 or more in aggregate principal amount, resulting in the acceleration of such Indebtedness, or due to the failure to pay such Indebtedness at
maturity, upon acceleration or otherwise;”. 
 PARAGRAPH 14. For the avoidance of doubt, the Notes shall be entitled to the benefit of
Article Nine of the Indenture. 
 PARAGRAPH 15. Except as otherwise indicated, each reference herein to a “Paragraph” shall refer
to a Paragraph hereof, and each reference herein to a “Section” shall refer to a Section of the Indenture. 

  
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