Document:

AGEN-Exhibit4.4 Q1 2015

EXHIBIT 4.4

FORM OF WARRANT
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SHARES IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND, IF THE CORPORATION REQUESTS, AN OPINION SATISFACTORY TO THE CORPORATION TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.
Warrant Certificate No.: ______                  Original Issue Date: February __, 2015
FOR VALUE RECEIVED, Agenus Inc., a Delaware corporation (the “Company”), hereby certifies that ____________________, or [his]/[her]/their registered assigns (the “Holder”) is entitled to purchase from the Company _______ duly authorized, validly issued, fully paid and nonassessable shares of Common Stock at a purchase price per share of $5.10 (subject to adjustment as provided herein, the “Exercise Price”), all subject to the terms, conditions and adjustments set forth below in this Warrant.  Certain capitalized terms used herein are defined in Section 1 hereof.
This Warrant has been issued pursuant to the terms of the Amended and Restated Note Purchase Agreement, dated as of February 20, 2015, as amended (the “Purchase Agreement”), between the Company and the Holder.
1.Definitions.  As used in this Warrant, the following terms have the respective meanings set forth below:
“Aggregate Exercise Price” means an amount equal to the product of (a) the number of Warrant Shares in respect of which this Warrant is then being exercised pursuant to Section 3 hereof, multiplied by (b) the Exercise Price in effect as of the Exercise Date in accordance with the terms of this Warrant.
“Board” means the board of directors of the Company.
“Business Day” means any day other than (i) a Saturday or Sunday or (ii) a day on which banking institutions located in New York City are closed.
“Common Stock” means the common stock, par value $0.01 per share, of the Company, and any capital stock into which such Common Stock shall have been converted, exchanged or reclassified following the date hereof.

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“Common Stock Deemed Outstanding” means, at any given time, the number of shares of Common Stock actually outstanding at such time, less shares owned or held by or for the account of the Company or any of its wholly owned subsidiaries.
“Company” has the meaning set forth in the preamble.
“Exercise Date” means, for any given exercise of this Warrant, the date on which the conditions to such exercise as set forth in Section 3 shall have been satisfied at or prior to 5:00 p.m., New York City time, on a Business Day, including, without limitation, the receipt by the Company of the Exercise Agreement, the Warrant and the Aggregate Exercise Price.
“Exercise Agreement” has the meaning set forth in Section 3(a)(i). 
“Exercise Period” has the meaning set forth in Section 2. 
“Exercise Price” has the meaning set forth in the preamble.
“Fair Market Value” means, as of any particular date: (a) the volume weighted average of the closing sales prices of the Common Stock for such day on all domestic securities exchanges on which the Common Stock may at the time be listed; (b) if there have been no sales of the Common Stock on any such exchange on any such day, the average of the highest bid and lowest asked prices for the Common Stock on all such exchanges at the end of such day; (c) if on any such day the Common Stock is not listed on a domestic securities exchange, the closing sales price of the Common Stock as quoted on Nasdaq, the OTC Bulletin Board or similar quotation system or association for such day; or (d) if there have been no sales of the Common Stock on Nasdaq, the OTC Bulletin Board or similar quotation system or association on such day, the average of the highest bid and lowest asked prices for the Common Stock quoted on Nasdaq, the OTC Bulletin Board or similar quotation system or association at the end of such day; in each case, averaged over twenty (20) consecutive Business Days ending on the Business Day immediately prior to the day as of which “Fair Market Value” is being determined; provided, that if the Common Stock is listed on any domestic securities exchange, the term “Business Day” as used in this sentence means Business Days on which such exchange is open for trading.  If at any time the Common Stock is not listed on any domestic securities exchange or quoted on Nasdaq, the OTC Bulletin Board or similar quotation system or association, the “Fair Market Value” of the Common Stock shall be the fair market value per share as determined jointly by the Board and the Holder.
“Holder” has the meaning set forth in the preamble.
“Original Issue Date” means February [  ], 2015, the date on which the Warrant was issued by the Company pursuant to the Purchase Agreement.
“Nasdaq” means The Nasdaq Stock Market, Inc.

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“Person” means any individual, sole proprietorship, partnership, limited liability company, corporation, joint venture, trust, incorporated organization or government or department or agency thereof.
“Purchase Agreement” has the meaning set forth in the preamble.
“Trading Day” means a day on which Nasdaq is open for trading. 
“Warrant” means this Warrant and all warrants issued upon division or combination of, or in substitution for, this Warrant.
“Warrant Shares” means the shares of Common Stock or other capital stock of the Company then purchasable upon exercise of this Warrant in accordance with the terms of this Warrant.
2.    Term of Warrant.  Subject to the terms and conditions hereof, at any time or from time to time after the date hereof and prior to 5:00 p.m., New York City time, on the fifth (5th) anniversary of the date hereof or, if such day is not a Business Day, on the next preceding Business Day (the “Exercise Period”), the Holder of this Warrant may exercise this Warrant for all or any part of the Warrant Shares purchasable hereunder (subject to adjustment as provided herein).
3.    Exercise of Warrant.
(a)    Exercise Procedure.  This Warrant may be exercised from time to time on any Business Day during the Exercise Period, for all or any part of the unexercised Warrant Shares, upon:
(i)    surrender of this Warrant to the Company at its then principal executive offices (or an indemnification undertaking with respect to this Warrant in the case of its loss, theft or destruction), together with an Exercise Agreement in the form attached hereto as Exhibit A (each, an “Exercise Agreement”), duly completed (including specifying the number of Warrant Shares to be purchased) and executed; and
(ii)    payment to the Company of the Aggregate Exercise Price in accordance with Section 3(b) or completion of a cashless exercise in accordance with Section 3(c).
(b)    Payment of the Aggregate Exercise Price.  At the option of the Holder, payment of the Aggregate Exercise Price for any exercise of this Warrant shall be made (i) by delivery to the Company of a certified or official bank check payable to the order of the Company, (ii) by wire transfer of immediately available funds to an account designated in writing by the Company, (iii) by cashless exercise as provided in Section 3(c) below, or (iv) by any permissible combination of such methods, in the amount of such Aggregate Exercise Price.
(c)    Cashless Exercise. This Warrant may be exercised at the Holder’s election, in whole or in part, by means of a “cashless exercise” in which the Holder shall be 

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entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:
(A)    =    the Fair Market Value of one share of Common Stock as of the Trading Day immediately preceding the date of such exercise;
(B)     =     the Exercise Price, as adjusted hereunder; and 
(X)     =     the number of shares of Common Stock that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.
Notwithstanding anything to the contrary herein or in the Purchase Agreement, the Holder agrees that the Holder’s ability to elect a cashless exercise represents the sole and exclusive monetary remedy of the Holder for a registration default with respect to the Warrant Shares, and in no event shall the Company be required to satisfy the Warrant through net cash settlement.
(d)    Delivery of Stock Certificates.  Upon receipt by the Company of the Exercise Agreement, surrender of this Warrant and payment of the Aggregate Exercise Price (in accordance with Section 3(a) hereof), the Company shall, as promptly as practicable, execute (or cause to be executed) and deliver (or cause to be delivered) to the Holder a certificate or certificates representing the Warrant Shares issuable upon such exercise, together with cash in lieu of any fraction of a share, as provided in Section 3(e)  hereof.  The stock certificate or certificates so delivered shall be, to the extent possible, in such denomination or denominations as the exercising Holder shall reasonably request in the Exercise Agreement and shall be registered in the name of the Holder or, subject to compliance with Section 5 below, such other Person’s name as shall be designated in the Exercise Agreement.  This Warrant shall be deemed to have been exercised and such certificate or certificates of Warrant Shares shall be deemed to have been issued, and the Holder or any other Person so designated to be named therein shall be deemed to have become a holder of record of such Warrant Shares for all purposes, as of the Exercise Date.
(e)    Fractional Shares.  The Company shall not be required to issue a fractional Warrant Share upon exercise of any Warrant.  As to any fraction of a Warrant Share that the Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay to such Holder an amount in cash (by delivery of a certified or official bank check or by wire transfer of immediately available funds) equal to the product of (i) such fraction multiplied by (ii) the Fair Market Value of one Warrant Share on the Exercise Date.
(f)    Valid Issuance of Warrant and Warrant Shares; Payment of Taxes.  With respect to the exercise of this warrant, the Company hereby represents, covenants and agrees:
(i)    This Warrant is, and any Warrant issued in substitution for or replacement of this Warrant shall be, upon issuance, duly authorized and validly issued.

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(ii)    All Warrant Shares issuable upon the exercise of this Warrant pursuant to the terms hereof shall be, upon issuance, and the Company shall take all such actions as may be necessary or appropriate in order that such Warrant Shares are, validly issued, fully paid and non-assessable, issued without violation of any preemptive or similar rights of any stockholder of the Company and free and clear of all taxes, liens and charges.
(iii)    The Company shall take all such actions as may be necessary to ensure that all such Warrant Shares are issued without violation by the Company of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which shares of Common Stock or other securities constituting Warrant Shares may be listed at the time of such exercise (except for official notice of issuance which shall be immediately delivered by the Company upon each such issuance).
(iv)    The Company shall pay all expenses in connection with, and all taxes and other governmental charges that may be imposed with respect to, the issuance or delivery of Warrant Shares upon exercise of this Warrant; provided, that the Company shall not be required to pay any tax or governmental charge that may be imposed with respect to any applicable withholding or the issuance or delivery of the Warrant Shares to any Person other than the Holder, and no such issuance or delivery shall be made unless and until the Person requesting such issuance has paid to the Company the amount of any such tax, or has established to the satisfaction of the Company that such tax has been paid.
(g)    Conditional Exercise.  Notwithstanding any other provision hereof, if an exercise of any portion of this Warrant is to be made in connection with a public offering or a sale of the Company (pursuant to a merger, sale of stock, or otherwise), such exercise may at the election of the Holder be conditioned upon the consummation of such transaction, in which case such exercise shall not be deemed to be effective until immediately prior to the consummation of such transaction.
(h)    Reservation of Shares.  During the Exercise Period, the Company shall at all times reserve and keep available out of its authorized but unissued Common Stock or other securities constituting Warrant Shares, solely for the purpose of issuance upon the exercise of this Warrant, the maximum number of Warrant Shares issuable upon the exercise of this Warrant, and the par value per Warrant Share shall at all times be less than or equal to the applicable Exercise Price.  The Company shall not increase the par value of any Warrant Shares receivable upon the exercise of this Warrant above the Exercise Price then in effect, and shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant.
4.    Adjustment to Exercise Price and Number of Warrant Shares.  In order to prevent dilution of the purchase rights granted under this Warrant, the Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant shall be subject to adjustment from time to time as provided in this Section 4.
(a)    Adjustment to Exercise Price and Warrant Shares Upon Dividend, Subdivision or Combination of Common Stock.  If the Company shall, at any time or from 

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time to time after the Original Issue Date, (i) pay a dividend or make any other distribution upon the Common Stock or any other capital stock of the Company payable in shares of Common Stock, or (ii) subdivide (by any stock split, recapitalization or otherwise) its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to any such dividend, distribution or subdivision shall be proportionately reduced and the number of Warrant Shares issuable upon exercise of this Warrant shall be proportionately increased.  If the Company at any time combines (by combination, reverse stock split or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall be proportionately increased and the number of Warrant Shares issuable upon exercise of this Warrant shall be proportionately decreased.  Any adjustment under this Section 4(a) shall become effective at the close of business on the date the dividend, subdivision or combination becomes effective.
(b)    Adjustment to Exercise Price and Warrant Shares Upon Reorganization, Reclassification, Consolidation or Merger.  In case the Company after the date hereof (a) shall consolidate with or merge into any other Person and shall not be the continuing or surviving corporation of such consolidation or merger, or (b) shall permit any other Person to consolidate with or merge into the Company and the Company shall be the continuing or surviving Person but, in connection with such consolidation or merger, the Common Stock shall be changed into or exchanged for stock or other securities of any other Person or cash or any other property, or (c) shall transfer all or substantially all of its properties or assets to any other Person, then, and in the case of each such transaction, proper provision shall be made so that, upon the basis and the terms and in the manner provided in this Warrant, this Warrant shall be terminated upon the consummation of the transaction and the holder of this Warrant shall be entitled to receive upon such consummation, in the same form of consideration as received by the shareholders, the excess, if any, of (i) the fair market value of the securities, cash or other property to which such holder would actually have been entitled as a shareholder upon such consummation if such holder had exercised the rights represented by this Warrant immediately prior thereto, less (ii) the aggregate exercise price payable upon exercise in full of this Warrant.
(c)    Certificate as to Adjustment.
(i)    As promptly as reasonably practicable following any adjustment of the Exercise Price, the Company shall furnish to the Holder a certificate of an executive officer setting forth in reasonable detail such adjustment and the facts upon which it is based and certifying the calculation thereof.
(ii)    As promptly as reasonably practicable following the receipt by the Company of a written request by the Holder, the Company shall furnish to the Holder a certificate of an executive officer certifying the Exercise Price then in effect and the number of Warrant Shares or the amount, if any, of other shares of stock, securities or assets then issuable upon exercise of the Warrant.

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(d)    Notices.  In the event:
(i)    that the Company shall take a record of the holders of its Common Stock (or other capital stock or securities at the time issuable upon exercise of the Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, to vote at a meeting (or by written consent), to receive any right to subscribe for or purchase any shares of capital stock of any class or any other securities, or to receive any other security; or
(ii)    of any capital reorganization of the Company, any reclassification of the Common Stock of the Company, any consolidation or merger of the Company with or into another Person, or sale of all or substantially all of the Company’s assets to another Person; or
(iii)    of the voluntary or involuntary dissolution, liquidation or winding-up of the Company;
then, and in each such case, the Company shall send or cause to be sent to the Holder at least fifteen (15) days prior to the applicable record date or the applicable expected effective date, as the case may be, for the event, a written notice specifying, as the case may be, (A) the record date for such dividend, distribution, meeting or consent or other right or action, and a description of such dividend, distribution or other right or action to be taken at such meeting or by written consent, or (B) the effective date on which such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up is proposed to take place, and the date, if any is to be fixed, as of which the books of the Company shall close or a record shall be taken with respect to which the holders of record of Common Stock (or such other capital stock or securities at the time issuable upon exercise of the Warrant) shall be entitled to exchange their shares of Common Stock (or such other capital stock or securities) for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding-up, and the amount per share and character of such exchange applicable to the Warrant and the Warrant Shares.
5.    Transfer of Warrant.  Subject to the transfer conditions referred to in the legend endorsed hereon and the terms and conditions of this Warrant and all rights hereunder are transferable, in whole or in part, by the Holder without charge to the Holder, upon surrender of this Warrant to the Company at its then principal executive offices with a properly completed and duly executed Assignment in the form attached hereto as Exhibit B, together with funds sufficient to pay any transfer taxes described in Section 3(f)(iv) in connection with the making of such transfer.  Upon such compliance, surrender and delivery and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant, if any, not so assigned and this Warrant shall promptly be cancelled.
6.    Holder Not Deemed a Stockholder; Limitations on Liability.  Except as otherwise specifically provided herein, prior to the issuance to the Holder of the Warrant Shares to which the Holder is then entitled to receive upon the due exercise of this Warrant, the Holder shall not be entitled to vote or receive dividends or be deemed the holder of shares of capital stock of the 

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Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise.  In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company.
7.    Replacement on Loss; Division and Combination.
(a)    Replacement of Warrant on Loss.  Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and upon delivery of an indemnity reasonably satisfactory to it (it being understood that a written indemnification agreement or affidavit of loss of the Holder shall be a sufficient indemnity) and, in case of mutilation, upon surrender of such Warrant for cancellation to the Company, the Company at its own expense shall execute and deliver to the Holder, in lieu hereof, a new Warrant of like tenor and exercisable for an equivalent number of Warrant Shares as the Warrant so lost, stolen, mutilated or destroyed; provided, that, in the case of mutilation, no indemnity shall be required if this Warrant in identifiable form is surrendered to the Company for cancellation.
(b)    Division and Combination of Warrant.  Subject to compliance with the applicable provisions of this Warrant as to any transfer or other assignment which may be involved in such division or combination, this Warrant may be divided or, following any such division of this Warrant, subsequently combined with other Warrants, upon the surrender of this Warrant or Warrants to the Company at its then principal executive offices, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the respective Holders or their agents or attorneys.  Subject to compliance with the applicable provisions of this Warrant as to any transfer or assignment which may be involved in such division or combination, the Company shall at its own expense execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants so surrendered in accordance with such notice.  Such new Warrant or Warrants shall be of like tenor to the surrendered Warrant or Warrants and shall be exercisable in the aggregate for an equivalent number of Warrant Shares as the Warrant or Warrants so surrendered in accordance with such notice.
8.    No Impairment.  The Company shall not, by amendment of its Certificate of Incorporation or Bylaws, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed by it hereunder, but shall at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may reasonably be requested by the Holder in order to protect the exercise rights of the Holder against dilution or other impairment, consistent with the tenor and purpose of this Warrant.

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9.    Compliance with the Securities Act.
(a)    Agreement to Comply with the Securities Act; Legend.  The Holder, by acceptance of this Warrant, agrees to comply in all respects with the provisions of this Section 9 and the restrictive legend requirements set forth on the face of this Warrant and further agrees that such Holder shall not offer, sell or otherwise dispose of this Warrant or any Warrant Shares to be issued upon exercise hereof except under circumstances that will not result in a violation of the Securities Act of 1933, as amended (the “Securities Act”).  This Warrant and all Warrant Shares issued upon exercise of this Warrant (unless registered under the Securities Act) shall be stamped or imprinted with a legend in substantially the following form:
“THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SHARES IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND, IF THE CORPORATION REQUESTS, AN OPINION SATISFACTORY TO THE CORPORATION TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL.”
(b)    Representations of the Holder.  In connection with the issuance of this Warrant, the Holder specifically represents, as of the date hereof, to the Company by acceptance of this Warrant as follows:
(i)    The Holder is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act.  The Holder is acquiring this Warrant and the Warrant Shares to be issued upon exercise hereof for investment for its own account and not with a view towards, or for resale in connection with, the public sale or distribution of this Warrant or the Warrant Shares, except pursuant to sales registered or exempted under the Securities Act.
(ii)    The Holder understands and acknowledges that this Warrant and the Warrant Shares to be issued upon exercise hereof are “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that, under such laws and applicable regulations, such securities may be resold without registration under the Securities Act only in certain limited circumstances.  In addition, the Holder represents that it is familiar with Rule 144 under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

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(iii)    The Holder acknowledges that it can bear the economic and financial risk of its investment for an indefinite period, and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Warrant and the Warrant Shares.  The Holder has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Warrant and the business, properties, prospects and financial condition of the Company.
10.    Warrant Register.  The Company shall keep and properly maintain at its principal executive offices books for the registration of the Warrant and any transfers thereof.  The Company may deem and treat the Person in whose name the Warrant is registered on such register as the Holder thereof for all purposes, and the Company shall not be affected by any notice to the contrary, except any assignment, division, combination or other transfer of the Warrant effected in accordance with the provisions of this Warrant.
11.    Notices.  Any and all notices or other communications or deliveries hereunder (including without limitation any Exercise Notice) shall be in writing and shall be mailed by certified mail, return receipt requested, or by a nationally recognized courier service or delivered (in person or by facsimile), against receipt to the party to whom such notice or other communication is to be given.  Any notice or other communication given by means permitted by this Section 11 shall be deemed given at the time of receipt thereof.  The address for such notices or communications shall be as set forth below (or at such other address for a party as shall be specified in a notice given in accordance with this Section 11):

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	If to the Company:   
	Agenus Inc.
3 Forbes Road 
Lexington, MA 02421
Facsimile:   781-674-4200
Attention:   Vice-President of Finance

	If to the Company:

	Agenus Inc.
3 Forbes Road 
Lexington, MA 02421
Facsimile:   781-674-4200
Attention:   Legal Department

	with a copy to:
	Choate, Hall & Stewart LLP 
Two International Place
Boston, MA 02110
Attention:   Gerald E. Quirk

	If to the Holder:   

	[ADDRESS]
Facsimile:
Attention:

	with a copy to:
	[ADDRESS]
Facsimile:
Attention:

12.    Cumulative Remedies.  Except to the extent expressly provided in Section 6 to the contrary, the rights and remedies provided in this Warrant are cumulative and are not exclusive of, and are in addition to and not in substitution for, any other rights or remedies available at law, in equity or otherwise.
13.    Equitable Relief.  Each of the Company and the Holder acknowledges that a breach or threatened breach by such party of any of its obligations under this Warrant would give rise to irreparable harm to the other party hereto for which monetary damages would not be an adequate remedy and hereby agrees that in the event of a breach or a threatened breach by such party of any such obligations, the other party hereto shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction.
14.    Entire Agreement.  This Warrant, together with the Purchase Agreement, constitutes the sole and entire agreement of the parties to this Warrant with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.  In the event of any inconsistency between the statements in the body of this Warrant and the Purchase Agreement, the statements in the body of this Warrant shall control.

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15.    Successor and Assigns.  This Warrant and the rights evidenced hereby shall be binding upon and shall inure to the benefit of the parties hereto and the successors of the Company and the successors and permitted assigns of the Holder.  Such successors and/or permitted assigns of the Holder shall be deemed to be a Holder for all purposes hereunder.
16.    No Third-Party Beneficiaries.  This Warrant is for the sole benefit of the Company and the Holder and their respective successors and, in the case of the Holder, permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Warrant.
17.    Headings.  The headings in this Warrant are for reference only and shall not affect the interpretation of this Warrant.
18.    Amendment and Modification; Waiver.  To the extent that (i) the terms of this Warrant require the Company to obtain the consent or approval of the Purchasers (as defined in the Purchase Agreement or (ii) the Company seeks an amendment to or modification or waiver of any of the terms of this Warrant, such Approval (as defined in the Purchase Agreement) shall be made by the Required Purchasers (as defined in the Purchase Agreement). Notwithstanding the foregoing, the Holder may, in its sole discretion, agree to any consent, approval, action, termination, amendment or waiver that solely effects the rights of the Holder under this Warrant.  No failure or delay by any party in exercising any power or right arising from this Warrant shall operate as a waiver thereof nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of each party under this Warrant are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  
19.    Severability.  If any term or provision of this Warrant is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Warrant or invalidate or render unenforceable such term or provision in any other jurisdiction.
20.    Governing Law.  THIS WARRANT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
21.    Submission to Jurisdiction.  ANY LEGAL ACTION OR PROCEEDING ARISING UNDER THIS WARRANT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE COMPANY OR THE HOLDER OR ANY OF THEM WITH RESPECT TO THIS WARRANT, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY (BOROUGH OF MANHATTAN) OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE.  EACH OF THE COMPANY AND THE HOLDER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THOSE 

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COURTS AND AGREES THAT IT WILL NOT COMMENCE OR SUPPORT ANY SUCH ACTION OR PROCEEDING IN ANOTHER JURISDICTION.  THE COMPANY AND THE HOLDER IRREVOCABLY WAIVE ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT THIS WARRANT OR OTHER DOCUMENT RELATED THERETO.  EACH OF THE COMPANY AND THE HOLDER IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS WARRANT IN THE MANNER PROVIDED FOR NOTICES (OTHER THAN FACSIMILE) IN SECTION 11.  NOTHING IN THIS WARRANT WILL AFFECT THE RIGHT OF THE COMPANY OR THE HOLDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.
22.    Waiver of Jury Trial.  EACH OF THE COMPANY AND THE HOLDER HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS WARRANT.  EACH OF THE COMPANY AND THE HOLDER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THIS WARRANT, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 22.
23.    Counterparts.  This Warrant may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.  A signed copy of this Warrant delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Warrant.
24.    No Strict Construction.  This Warrant shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.
[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the Company has duly executed this Warrant on the Original Issue Date.
AGENUS INC.

By:                        
Name: 
Title:    

[Signature Page to Warrant]

Exhibit A

FORM OF EXERCISE NOTICE

(To be executed by the Holder to exercise the right to purchase shares of Common Stock under the foregoing Warrant)
To:    Agenus Inc.
The undersigned is the Holder of Warrant No. [    ] (the “Warrant”) issued by Agenus Inc., a Delaware corporation (the “Company”). Capitalized terms used herein and not otherwise defined have the respective meanings set forth in the Warrant.
		
	1.
	The Warrant is currently exercisable to purchase a total of ________ Warrant Shares.

		
	2.
	The undersigned Holder hereby exercises its right to purchase _______ Warrant Shares pursuant to the Warrant.

		
	3.
	[The Holder shall pay the sum of $_______ to the Company in accordance with the terms of the Warrant.]/ [The Holder elects for a cashless exercise in accordance with the terms of the Warrant.]

		
	4.
	Pursuant to this exercise, the Company shall deliver to the Holder _____ Warrant Shares in accordance with the terms of the Warrant.

		
	5.
	Following this exercise, the Warrant shall be exercisable to purchase a total of _______ Warrant Shares.

	
		
	Dated:            
	Name of Holder:

(Print)                  

By:                  

Title:                  

(Signature must conform in all respects to name of Holder as specified on face of the Warrant)

Exhibit B

FORM OF ASSIGNMENT

(to be completed and signed only upon transfer of Warrant)

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ___________________________ the right represented by the within Warrant to purchase _____________ shares of Common Stock of Agenus Inc. to which the within warrant relates and appoints ______________ attorney to transfer said right on the books of Agenus Inc. with full power of substitution in the premises.
	
		
	Dated:            
	                  
(Signature must conform in all respects to name of Holder as specified on face of the Warrant)

Address of Transferee:

               

               

               

	In the presence of:EX-10.1

 Exhibit 10.1 

Execution Version 

SETTLEMENT AGREEMENT 

This Settlement Agreement (this “Agreement”) dated April 30, 2015, is by and among the persons and entities
listed on Schedule A (collectively, the “Stadium Capital Group”, and each, individually, a “member” of the Stadium Capital Group), Big 5 Sporting Goods Corporation (the
“Company”), Dominic P. DeMarco, in his individual capacity and as a member of the Stadium Capital Group, and Nicholas Donatiello, Jr., in his individual capacity (each of Mr. DeMarco and Mr. Donatiello being a
“Stadium Capital Designee” and, collectively, the “Stadium Capital Designees”). 
 WHEREAS,
the Stadium Capital Group submitted a notice dated March 17, 2015 (the “Stadium Capital Notice”) of stockholder nominations for the Company’s Board of Directors (the “Board”) in conjunction
with the Company’s 2015 annual meeting of stockholders (the “2015 Annual Meeting”). 
 WHEREAS, the Stadium
Capital Group has filed a preliminary proxy statement (as amended, the “Stadium Capital Proxy Statement”) with the SEC regarding the 2015 Annual Meeting. 

WHEREAS, the Stadium Capital Group and the Company have engaged in communications including with respect to the composition of the Board, as
well as the Company’s governance and performance. 
 WHEREAS, the Stadium Capital Group currently beneficially owns 2,513,220 shares of
the common stock, par value $0.01 per share, of the Company (the “Common Stock”), which represented approximately 11.4% of the issued and outstanding shares of Common Stock as of April 23, 2015. 

WHEREAS, the Nominating and Corporate Governance Committee of the Board (the “Nominating Committee”) and
the Board have considered the qualifications of Mr. DeMarco and Mr. Donatiello. 
 WHEREAS, in anticipation of this Agreement, the
Nominating Committee has recommended that (i) the Board nominate Mr. DeMarco for re-election to the Board and (ii) the Board nominate Mr. Donatiello for election to the Board, and the Board has determined that it is in the best
interests of the Company and its stockholders to do so on the terms set forth in this Agreement. 
 WHEREAS, Engaged Capital Master Feeder
I, LP and affiliated funds (collectively, “Engaged Capital”) previously submitted notice of stockholder nominations for the 2015 Annual Meeting. 

WHEREAS, the Company and the Stadium Capital Group have determined to come to an agreement with respect to the composition of the Board as of
the date of this Agreement and in connection with the 2015 Annual Meeting and certain other matters as provided for in this Agreement. 

NOW, THEREFORE, in consideration of and reliance upon the mutual covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 1. Nomination and
Election of Directors; Board Committees and Related Corporate Governance Matters. 
 (a) Nomination and Election of
Directors. 
 (i) The Board shall take all necessary actions to nominate the Stadium Capital Designees and David R.
Jessick as Class A Directors at the 2015 Annual Meeting. If either of the Stadium Capital Designees is unable or unwilling to stand for election at the 2015 Annual Meeting, a replacement nominee shall be chosen using the procedure outlined in
Section 1(c) of this Agreement, and such replacement nominee shall be deemed a “Stadium Capital Designee” for the purposes of this Agreement. If Mr. Jessick is unable or unwilling to stand for election at the 2015 Annual
Meeting, the Board will choose a replacement nominee, provided that such nominee must qualify as “independent” from the Company pursuant to the standards of the Nasdaq Stock Market (“Nasdaq”). The Stadium
Capital Designees and Mr. Jessick (or his replacement nominee) are collectively referred to as the “2015 Slate.” 

  
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 (ii) Except as provided in Section 1(a)(i)
of this Agreement, the Board and all applicable committees and subcommittees of the Board shall not nominate any persons other than the Stadium Capital Designees and Mr. Jessick as Class A directors for election at the 2015 Annual Meeting.
Except as provided in Section 1(a)(i) of this Agreement, the Company will recommend that the Company’s stockholders vote for the election of Stadium Capital Designees and Mr. Jessick, and will not make any other recommendation
for any other candidate for election as director for the 2015 Annual Meeting. 
 (iii) The Company shall use its commercially
reasonable efforts to hold the 2015 Annual Meeting no later than June 12, 2015. 
 (iv) As soon as practicable following
the 2015 Annual Meeting, the Board and all committees and subcommittees of the Board shall take all actions necessary and proper to (i) expand the Board to eight (8) persons and (ii) appoint Mr. Robert C. Galvin to fill this
vacancy as a new Class A Director. If for any reason Mr. Galvin is unable or unwilling to serve on the Board, as soon as practicable as it is known that Mr. Galvin is unable or unwilling to serve on the Board, the Nominating Committee
will work with the search firm Spencer Stuart to identify a pool of three (3) additional candidates who are qualified to serve as an eighth (8th) director (the “Additional
Director”) based on the job specification provided by the Nominating Committee. The Company and the Stadium Capital Group will agree upon one candidate from such pool to serve as the Additional Director within ten (10) days after
being provided with the list of candidates. Once the Company and the Stadium Capital Group agree upon a candidate from such pool, the Nominating Committee will recommend the Additional Director and the Board will approve the appointment to the Board
of the Additional Director as soon as reasonably practicable. This process will be repeated as necessary until an Additional Director has been appointed. The Additional Director shall be independent of each of the Company, the Stadium Capital Group,
the Stadium Capital Affiliates (as defined below), Mr. Donatiello and Engaged Capital, shall qualify as an “independent” director pursuant to the standards of Nasdaq, and shall agree to comply with all policies, procedures, processes,
codes, rules, standards and guidelines applicable to Board members, including without limitation the Company’s Code of Business Conduct and Ethics and Insider Trading Policy, and to preserve the confidentiality of Company business and
information, including discussions or matters considered in meetings of the Board or Board committees to the extent not disclosed publicly by the Company. 

(v) After the 2015 Annual Meeting and following the appointment of the eighth
(8th) director, during the Standstill Period (as defined below), the Board and all committees and subcommittees of the Board shall not (a) seek to increase the size of the Board to more
than eight (8) members or (b) change the classes on which the board members serve without the prior written consent of the Stadium Capital Group; provided, however, that the Board may recruit potential directors or director
nominees, announce retirements or departures of directors and replace retired or departed directors (a “Replacement Director”) without the prior written consent of the Stadium Capital Group so long as (i) the Board is
not increased to more than eight (8) members during the Standstill Period and (ii) any Replacement Director is appointed to the same class of the Board as the departing director whom he or she replaces. The Company also agrees that any
Replacement Director appointed pursuant to this Section shall (A) meet all director independence and other standards of Nasdaq and the Securities and Exchange Commission (the “SEC”) and applicable provisions of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated thereunder and (B) be qualified to serve as a director under the Delaware General Corporation Law (the
“DGCL”) (clauses (A) and (B), the “Independence Conditions”). Each Replacement Director will promptly advise the Nominating Committee if he or she ceases to satisfy any of the Independence
Conditions. If the Board is expanded beyond eight (8) members following the Standstill Period but prior to the Company’s 2016 annual meeting of stockholders (the “2016 Annual Meeting”), any director appointed to
fill such additional seat(s) on the Board shall have a term expiring at the 2016 Annual Meeting. 
 (vi) Each Stadium Capital
Designee agrees that, at all times while serving as a member of the Board, he will satisfy the Independence Conditions set forth above. Each Stadium Capital Designee will promptly advise the Nominating Committee if he ceases to satisfy any of the
Independence Conditions. 

  
 2 

 Execution Version 

 
 (vii) Consistent with its fiduciary duties, the Board
may take such actions as it deems necessary and appropriate to ensure that all directors of the Company comply with, all policies, procedures, processes, codes, rules, standards and guidelines applicable to all Board members, including without
limitation the Company’s Code of Business Conduct and Ethics and Insider Trading Policy, as well as the confidentiality of the Company’s business and information, including discussions or matters considered in meetings of the Board or
Board committees to the extent not disclosed publicly by the Company. 
 (b) Committees of the Board. 

(i) Compensation and Nominating Committees. If Mr. DeMarco is re-elected as a Class A director at the 2015
Annual Meeting and Mr. Donatiello is elected as a Class A Director at the 2015 Annual Meeting, the Board and all committees and subcommittees of the Board as necessary shall take all actions necessary to reappoint Mr. DeMarco as a
member of the Compensation Committee and to appoint Mr. Donatiello as a member of the Nominating Committee, in each case no later than 30 days following the 2015 Annual Meeting. 

(ii) Value Creation Committee. At the first meeting of the Board following the 2015 Annual Meeting, the Board shall
create a Value Creation Committee (the “Value Creation Committee”) to, among other things, review the Company’s business, operations, capital allocations and strategy and to make recommendations to the Board on these
issues. The Board shall establish the Charter for the Value Creation Committee in the form attached hereto as Exhibit A. The Value Creation Committee shall remain in effect during the Standstill Period and, if the Board determines, thereafter. The
Value Creation Committee shall be comprised solely of members of the Board who qualify as “independent” pursuant to the standards of Nasdaq. The Value Creation Committee shall be co-chaired by Mr. DeMarco and Van B. Honeycutt; the
other member of the Value Creation Committee shall be Mr. Galvin (or, in the event Mr. Galvin is unable to serve on the Board at any time during the Standstill Period, an additional director as mutually agreed upon by the Board and the
Stadium Capital Group; provided that, for the avoidance of doubt, the Value Creation Committee will continue with two members until Mr. Galvin or the additional director is appointed). During the Standstill Period, the Value Creation
Committee (i) shall have no more than three (3) members, one of whom shall be designated by the Stadium Capital Group and (ii) shall have two (2) co-chairs, one of whom shall be designated by the Stadium Capital Group. The Value
Creation Committee shall have the authority to (a) review the Company’s business, strategy, performance and market conditions, (b) explore profit enhancement opportunities for the Company’s business, (c) develop an operating
improvement plan for the Company’s business, (d) identify possible areas of value creation for the Company’s business and its stockholders and (e) retain independent financial advisors and consultants at the expense of the
Company to advise and assist the Value Creation Committee in considering these issues. The Value Creation Committee shall also have the authority to make recommendations or proposals to the full Board for consideration by the Board. 

(iii) Other Committees. Subject to the standards of Nasdaq, the Board and all committees and subcommittees of the Board
shall take all actions necessary and appropriate to ensure that each committee and subcommittee of the Board formed during the Standstill Period (other than a committee or subcommittee formed to evaluate and/or take action with respect to
(a) the ownership of shares by the Stadium Capital Group (b) the exercise of the Company’s rights or enforcement of any of the Stadium Capital Group’s obligations under this Agreement or (c) any transactions proposed by the
Stadium Capital Group or any of its affiliates) includes at least one Stadium Capital Designee or one Stadium Capital Replacement Director. Except as specifically provided above, the Company agrees that, during the Standstill Period, neither the
Company nor the Board shall create any committee that has the right to exercise all of the authority of the Board in the management of the business affairs of the Company unless Mr. DeMarco (or, if Mr. DeMarco is no longer serving on the
Board, Mr. Donatiello or a Stadium Capital Replacement Director (as defined below)) is appointed to such committee. 

  
 3 

 Execution Version 

 
 (iv) Termination of the Special Committee.
Concurrently with the signing of this Agreement, and in any event no more than three (3) business days following the signing of this Agreement, the Board will dissolve the special committee of the Board formed on January 19, 2015. 

(c) Stadium Replacement Director. So long as the Stadium Capital Group collectively beneficially owns, in the aggregate, at least seven
and one-half percent (7.5%) of the outstanding Common Stock, if, during the Standstill Period, a vacancy on the Board is created as a result of a Stadium Capital Designee’s death, resignation, disqualification or removal, other than as a
result of a Stadium Capital Designee’s resignation pursuant to Section 1(e) hereof, then the Stadium Capital Group shall have the right to nominate a replacement director (the “Stadium Capital Replacement
Nominee”). The Stadium Capital Replacement Nominee must qualify as “independent” of the Company pursuant to standards of Nasdaq and shall otherwise have appropriate business and financial skills to be a director of the
Company. The Stadium Capital Group shall provide the Company with the current CV of the Stadium Capital Replacement Nominee as well as a completed director questionnaire in a form provided by the Company (collectively the
“Documentation”). Once the Stadium Capital Group provides the Company with the Documentation, the Nominating Committee may conduct an interview of the proposed Stadium Capital Replacement Nominee, and such interview may occur
no more than ten (10) business days after the Company receives the Documentation. The Nominating Committee shall meet within five (5) business days of such interview to consider the recommendation to the Board of the appointment of the
Stadium Capital Replacement Nominee, such recommendation not to be unreasonably withheld, subject to the Nominating Committee’s fiduciary duties. If, after this process, the Nominating Committee recommends the appointment of the Stadium Capital
Replacement Nominee, the recommendation of the Nominating Committee shall promptly (but in no case more than five (5) business days later) go to the full Board for consideration. Subject to the approval of the full Board, which, subject to the
Board’s fiduciary duties, shall not be unreasonably withheld, the Stadium Capital Replacement Nominee shall be appointed to the full Board as the Stadium Capital replacement director (the “Stadium Capital Replacement
Director”). The Stadium Capital Replacement Director shall, upon his or her appointment to the Board, be immediately appointed (but in no case more than three (3) calendar days) to all committee positions previously held by the
departed Stadium Capital Designee, provided, that the Nominating Committee determines that the Stadium Capital Replacement Director is qualified to serve on such committees, such determination not to be unreasonably withheld. If the Stadium
Capital Replacement Director is not recommended by the Nominating Committee or appointed by the full Board, then the process set forth above shall begin again, and shall repeat until such time as a Stadium Capital Replacement Nominee is appointed as
the Stadium Capital Replacement Director. 
 (d) Corporate Governance Matters 

(i) Declassifying the Board. The Company agrees that, as part of the Company’s definitive proxy statement for the
2015 Annual Meeting, the Board shall recommend that the Company’s stockholders vote in favor of the proposal submitted by Stadium Capital Management, LLC pursuant to Rule 14a-8 under the Exchange Act and attached as Exhibit 99.B (the
“2015 Declassified Board Proposal”) to the amendment, filed with the SEC on December 18, 2014, to the Schedule 13D of the Stadium Capital Group with respect to the Company (the “Stadium Capital Schedule
13D”). If the 2015 Declassified Board Proposal receives a majority of the votes cast at the 2015 Annual Meeting with respect to such proposal then, at the 2016 Annual Meeting, the Board shall present to the Company’s stockholders,
and shall recommend that the Company’s stockholders vote in favor of, an amendment to the Amended and Restated Certificate of Incorporation of the Company (the “Charter”) to eliminate the classification of the Board and
provide for the annual election of all directors (the “2016 Declassified Board Proposal”). If such 2016 Declassified Board Proposal receives the requisite number of votes to effect such action, the directors elected at the
2016 Annual Meeting will serve a one-year term expiring at the Company’s annual meeting of stockholders in 2017, and the directors elected or appointed prior to the 2016 Annual Meeting will finish their respective terms. 

(ii) Adoption of Majority Voting Proposal. The Company agrees to submit at the 2015 Annual Meeting a precatory proposal
(the “Majority Voting Proposal”) regarding the implementation of a majority voting standard in uncontested elections of directors (a “Majority Voting Standard”), and as part of its definitive proxy
statement the Board shall recommend that the Company’s stockholders vote in favor of the Majority Voting Proposal. If the Majority Voting Proposal receives a majority of the votes cast at the 2015 Annual Meeting with respect to such proposal,
within thirty (30) days after the 2015 Annual Meeting, the Board shall take all actions necessary to amend the Bylaws to implement a Majority Voting Standard. 

  
 4 

 Execution Version 

 
 (iii) Elimination of Supermajority Voting Provisions.
The Company agrees to submit at the 2015 Annual Meeting a precatory proposal (the “Supermajority Voting Proposal”) regarding the elimination of certain provisions in the Charter and the Amended and Restated Bylaws of the
Company (the “Bylaws”) that require the affirmative vote of at least eighty percent (80%) of the voting power of all of the Company’s then-outstanding shares of Common Stock (the “Supermajority Voting
Provisions”), and as part of its definitive proxy statement the Board shall recommend that the Company’s stockholders vote in favor of the Supermajority Voting Proposal. If the Supermajority Voting Proposal receives a majority of
the votes cast at the 2015 Annual Meeting with respect to such proposal, then, at the 2016 Annual Meeting, the Board shall present to the Company’s stockholders, and shall recommend that the Company’s stockholders vote in favor of,
amendments to the Charter and the Bylaws to eliminate any Supermajority Voting Provision in the Charter and the Bylaws (collectively, with the 2016 Declassified Board Proposal, the “2016 Proposals”). 

(iv) Subject to the Board’s fiduciary duties, the Board shall recommend to the current members of the Board that each
director vote all shares of Common Stock that he or she beneficially owns, whether by proxy or otherwise, in favor of each of the Declassified Board Proposal, the Majority Voting Proposal and the Supermajority Voting Proposal. 

(v) For the avoidance of doubt, the Board’s and Company’s obligations under this Section 1(d) shall
survive the termination of this Agreement. 
 (vi) If there is no contested proxy solicitation at the 2016 Annual Meeting,
then the Company agrees that it shall have the Company’s management offer to speak to the two (2) largest institutional advisory firms as well as the Company’s five (5) largest stockholders to seek their support for the 2016
Proposals. Again, for the avoidance of doubt, the obligations on the Company set forth in this Section 1(d)(vi) shall only apply in the event that there is no contested solicitation on any matter by any party at the 2016 Annual Meeting.

 (e) Termination. 

(i) The Company may terminate its obligations hereunder immediately: 

(A) if members of the Stadium Capital Group, collectively, cease to beneficially own at least five percent (5%) of the
Company’s outstanding Common Stock, in which case Mr. DeMarco shall also promptly offer his resignation as a director of the Company to the Board; provided, further that if members of the Stadium Capital Group, collectively,
cease to beneficially own at least three percent (3%) of the Company’s outstanding Common Stock, Mr. Donatiello shall also promptly offer his resignation as a director of the Company to the Board; 

(B) if the Stadium Capital Group (other than a Stadium Capital Designee) otherwise fails to comply with or breaches any of the
terms of this Agreement and such failure to comply or breach has not been cured within ten (10) days following notice to the Stadium Capital Group of such breach; or 

(C) if the employment of Mr. DeMarco with the Stadium Capital Group is terminated for any reason and within thirty
(30) days of such termination, Mr. DeMarco fails to offer his resignation as a director of the Company to the Board. In the event that Mr. DeMarco’s employment with Stadium is terminated during the Standstill Period and
Mr. DeMarco offers his resignation as set forth above, then the Company’s obligations under this Agreement, including but not limited to the Company’s obligation to appoint a Stadium Capital Replacement Director, as set forth above,
shall continue in full force and effect. 
 (ii) The Stadium Capital Group may terminate its obligations hereunder

  
 5 

 Execution Version 

 
 
immediately if the Company or the Board fails to comply or breaches any of the terms of this Agreement and such failure to comply or breach has not been cured within ten (10) days following
notice to the Company or the Board of such breach. 
 Such offer or offers of resignation shall be promptly delivered in writing and shall provide for the
immediate resignation of the applicable Stadium Capital Designee or Designees, it being understood that it shall be in the Board’s sole discretion whether to accept or reject such resignation or resignations. The Stadium Capital Group agrees to
cause the Stadium Capital Designees to tender their resignations as directors of the Company to the Board if the Stadium Capital Designees fail to resign if and when requested pursuant to this Section 1(e). 

(f) Withdrawal of Stadium Capital Proxy Statement. Concurrently with the execution of this Agreement, the Stadium Capital Group will be
deemed to have withdrawn the Stadium Capital Notice regarding the nomination of individuals for election as directors in connection with the 2015 Annual Meeting, and Stadium Capital agrees to take all actions necessary to not use or proceed with the
Stadium Capital Proxy Statement. 
 2. Standstill. 

(a) The Stadium Capital Group agrees that, from the date of this Agreement until the earlier of (i) ten (10) days prior to the
deadline for submission of stockholder nominees for the 2016 Annual Meeting or (ii) the date that is 100 days prior to the first anniversary of the 2015 Annual Meeting (the “Standstill Period”) neither it nor its
Affiliates or Associates (as such terms are defined in Rule 12b-2 promulgated by the SEC under the Exchange Act) (collectively and individually referred to as the “Stadium Capital Affiliates,” provided that no portfolio
company of the Stadium Capital Group shall be deemed a “Stadium Capital Affiliate”) not to, directly or indirectly, alone or in concert with others: 

(i) make, engage in, or in any way participate in, directly or indirectly, any “solicitation” of proxies (as such
terms are used in the proxy rules of the SEC but without regard to the exclusion set forth in Rule 14a-1(l)(2)(iv) of the Exchange Act) except as otherwise provided for in this Agreement; 

(ii) form, join, or in any way participate in any Group (as such term is defined in Section 13(d)(3) of the Exchange Act)
with any persons who are not Stadium Capital Affiliates with respect to any securities of the Company or otherwise in any manner agree, attempt, seek or propose to deposit any securities of the Company in any voting trust or similar arrangement, or
subject any securities of the Company to any arrangement or agreement with respect to the voting thereof, except as expressly set forth in this Agreement; 

(iii) acquire, offer or propose to acquire, or agree to acquire, directly or indirectly, whether by purchase, tender or
exchange offer, any securities of the Company that would result in the Stadium Capital Group (together with the Stadium Capital Affiliates) owning, controlling or otherwise having any beneficial or other ownership interest in more than 14% in the
aggregate of the shares of Common Stock outstanding at such time; provided, that, nothing herein will require Common Stock to be sold to the extent the Stadium Capital Group and the Stadium Capital Affiliates, collectively, exceed the
ownership limit under this paragraph as the result of a share repurchase or similar Company actions that reduces the number of outstanding shares of Common Stock; 

(iv) sell, offer or agree to sell directly or indirectly, through swap or hedging transactions or otherwise, the securities of
the Company or any rights decoupled from the underlying securities of the Company held by the Stadium Capital Group or any Stadium Capital Affiliate to any person or entity that is not (A) a party to this Agreement, (B) a member of the
Board, (C) an officer of the Company or (D) a Stadium Capital Affiliate (any person or entity not set forth in clauses (A)-(D) shall be referred to as a “Third Party”), that would knowingly result in such Third
Party, together with its affiliates and associates, owning, controlling or otherwise having any beneficial or other ownership interest in the aggregate of more than 10% of the shares of Common Stock outstanding at such time, except in a transaction
approved by the Board or in an arms-length transaction to a nationally recognized brokerage firm where the Stadium Capital Group is not otherwise aware of the identity of the buyer of the shares; 

  
 6 

 Execution Version 

 
 (v) (A) make any proposal for consideration by
stockholders at any annual or special meeting of stockholders of the Company, (B) make any offer or proposal (with or without conditions) with respect to any tender or exchange offer, merger, acquisition, recapitalization, restructuring,
disposition or other business combination involving the Company or its material assets (each, an “Extraordinary Transaction”), or (C) call or seek to call a special meeting of stockholders; 

(vi) unless otherwise approved by the Company’s board, take any public action in support of, take any action that would
cause or require the Company to make public disclosure of, or make any proposal or request that constitutes: (A) advising, controlling, changing or influencing the Board or management of the Company, including any plans or proposals to change
the number or term of directors or to fill any vacancies on the Board (other than as provided in this Agreement); (B) any material change in the capitalization, stock repurchase programs and practices or dividend policy of the Company;
(C) any other material change in the Company’s management, business or corporate structure (other than as provided in this Agreement); (D) seeking to have the Company waive or make amendments to the Charter or Bylaws (other than as
provided in this Agreement), or other actions that may impede or facilitate the acquisition of control of the Company by any person; (E) causing a class of securities of the Company to be delisted from, or to cease to be authorized to be quoted
on, any securities exchange; or (F) causing a class of securities of the Company to become eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange Act; 

(vii) seek, or encourage any person, to submit nominations in furtherance of a “contested solicitation” for the
election or removal of directors with respect to the Company or seek, encourage or take any other action with respect to the election or removal of any directors; 

(viii) seek, alone or in concert with others, representation on the Board, except as specifically provided for in this
Agreement; 
 (ix) seek to advise, encourage, support or influence any person with respect to the voting or disposition of
securities of the Company at any annual or special meeting of stockholders except as specifically provided for in this Agreement; 

(x) make any public disclosure, announcement or statement regarding any intent, purpose, plan or proposal with respect to the
Board, the Company, its management, policies or affairs, any of its securities or assets or this Agreement that is inconsistent with the provisions of this Agreement; or 

(xi) enter into any discussions, negotiations, agreements, or understandings with any Third Party with respect to any of the
foregoing, or advise, assist, knowingly encourage or seek to persuade any Third Party to take any action or make any statement with respect to any of the foregoing, or otherwise take or cause any action or make any statement inconsistent with any of
the foregoing. 
 (b) Each member of the Stadium Capital Group shall cause all shares of Common Stock beneficially owned, directly or
indirectly, by it, or by any Stadium Capital Affiliate, as applicable, to be present for quorum purposes and to be voted, at the 2015 Annual Meeting and at any adjournments or postponements thereof, in favor of (i) the 2015 Slate, (ii) the
Declassified Board Proposal, (iii) the Majority Voting Proposal, (iv) the Supermajority Voting Proposal, (v) the “say-on-pay” vote regarding the compensation paid to the Company’s named executive officers, and
(vi) the ratification of the appointment of Deloitte & Touche LLP to serve as the Company’s independent auditors for fiscal year 2015. Except as specifically set forth above, the Stadium Capital Group may vote their shares of
Common Stock in their discretion. 
 For purposes of this Agreement the terms “person” or “persons” shall
mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability or unlimited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature. 

(c) Nothing in this Section 2 shall limit, in any way, any action that may be taken by any Stadium Capital Designee (or any
Stadium Replacement Director), acting solely in their capacity as a director of the Company, as necessary and appropriate to comply with their fiduciary duties to the Company and its stockholders. 

  
 7 

 Execution Version 

 
 3. Representations of the Company. The Company represents
and warrants as follows: (a) the Company has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby; (b) this Agreement has been duly and
validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company and is enforceable against the Company in accordance with its terms; and (c) the execution, delivery and
performance of this Agreement by the Company does not and will not violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to the Company, or (ii) result in any breach or violation of or constitute a
default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration
or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound. 

4. Representations of the Stadium Capital Group. The Stadium Capital Group, jointly and severally, represents and warrants as
follows: (a) the Stadium Capital Group has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby; (b) this Agreement has been duly and
validly authorized, executed and delivered by the Stadium Capital Group, constitutes a valid and binding obligation and agreement of the Stadium Capital Group and is enforceable against the Stadium Capital Group in accordance with its terms;
(c) the Stadium Capital Group, together with the Stadium Capital Affiliates, beneficially owns, directly or indirectly, an aggregate of 2,513,220 shares of Common Stock and such shares of Common Stock constitute all of the Common Stock
beneficially owned by the Stadium Capital Group, the Stadium Capital Affiliates or in which the Stadium Capital Group, the Stadium Capital Affiliates have any interest or right to acquire, whether through derivative securities, voting agreements or
otherwise; and (d) as of the date of this Agreement, each of the Stadium Capital Designees satisfies the Independence Conditions and the obligations of such Stadium Capital Designee set forth in this Agreement. 

5. Press Release and Non-Disparagement. 

(a) Promptly following the execution of this Agreement, the Company and the Stadium Capital Group shall jointly issue a mutually agreeable
press release (the “Mutual Press Release”) announcing certain terms of this Agreement, in the form attached hereto as Exhibit B. Except for the issuance of the Mutual Press Release and subject to the terms of this
Agreement, during the Standstill Period, neither the Company (including the Board and any committee or subcommittee thereof) nor the Stadium Capital Group shall issue any press release or public announcement regarding this Agreement or the matters
contemplated hereby (including any recommendations or other findings of the Value Creation Committee established pursuant to Section 1(b)(ii) hereof) without the prior written consent of the other party hereto. During the Standstill
Period, neither the Company nor the Stadium Capital Group nor the Stadium Capital Designees shall make any public announcement or statement that is inconsistent with or contrary to the statements made in the Mutual Press Release, except as required
by law or the rules of any stock exchange or with the prior written consent of the other party hereto, and otherwise in accordance with this Agreement. 

(b) Subject to applicable law, each of the parties to this Agreement covenants and agrees that, during the Standstill Period, neither it nor
any of its respective agents, subsidiaries, affiliates, successors, assigns, officers, key employees or directors, shall in any way make any public announcement or statement that shall disparage, call into disrepute, or otherwise defame or slander
the other parties hereto or such other parties’ subsidiaries, affiliates, successors, assigns, officers, directors, employees, stockholders, agents, attorneys or representatives, or any of their businesses, products or services, in any manner
that would reasonably be expected to damage the business or reputation of such other parties, their businesses, products or services or their subsidiaries, affiliates, successors, assigns, officers (or former officers), directors (or former
directors), employees, stockholders, agents, attorneys or representatives. 
 6. SEC Filings. 

(a) The Company shall file promptly with the SEC a Form 8-K reporting entry into this Agreement (the “Form 8-K”) and
appending this Agreement as an exhibit thereto. 

  
 8 

 Execution Version 

 
 (b) The Stadium Capital Group shall promptly, but in no case prior to
the date of filing of the Form 8-K by the Company pursuant to Section 6(a) hereof, file an amendment to the Stadium Capital Schedule 13D, reporting the entry into this Agreement and appending this Agreement as an exhibit thereto. 

7. Specific Performance, Governing Law and Forum Selection. Each of the members of the Stadium Capital Group, on the one hand,
and the Company, on the other hand, acknowledges and agrees that irreparable injury to the other party hereto would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached and that such injury would not be adequately compensable by the remedies available at law (including the payment of money damages). It is accordingly agreed that the Stadium Capital Group, on the one hand, and the Company, on the
other hand (the “Moving Party”), shall each be entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof, and the other party hereto will not take action, directly or indirectly,
in opposition to the Moving Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity. 

Each of the parties hereto (a) consents to submit itself to the personal jurisdiction of the Court of Chancery or other federal or state
courts of the State of Delaware in the event any dispute arises out of this Agreement or the transactions contemplated by this Agreement, (b) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other
request for leave from any such court, (c) agrees that it shall not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other than the Court of Chancery or other federal or state courts of
the State of Delaware, and each of the parties irrevocably waives the right to trial by jury, and (d) each of the parties irrevocably consents to service of process by a reputable overnight mail delivery service, signature requested, to the
address set forth in Section 11 of this Agreement or as otherwise provided by applicable law. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING WITHOUT LIMITATION VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF
DELAWARE APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH STATE THAT WOULD OTHERWISE BE APPLICABLE THERETO. 

8. Expenses. All attorneys’ fees, costs and expenses incurred in connection with this Agreement and all matters related
hereto will be paid by the party incurring such fees, costs or expenses; provided, however, that the Company shall reimburse the Stadium Capital Group for the reasonable and documented fees and expenses (including but not limited to
legal expenses) incurred by the Stadium Capital Group, in connection herewith in an amount not to exceed $195,000, within seven (7) days of the receipt of all documentation. 

9. Litigation Costs and Expenses. If any party institutes any legal suit, action or proceeding against the other party to
enforce this Agreement (or obtain any other remedy regarding any breach of this Agreement) or arising out of or relating to this Agreement, including, but not limited to, contract, equity, tort, fraud and statutory claims, the prevailing party in
the suit, action or proceeding is entitled to receive, and the non-prevailing party shall pay, in addition to all other remedies to which the prevailing party may be entitled, the costs and expenses incurred by the prevailing party in conducting the
suit, action or proceeding, including actual attorneys’ fees and expenses, even if not recoverable by law. 
 10. Entire
Agreement; Amendment. This Agreement contains the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior and contemporaneous agreements, memoranda, arrangements and
understandings, both written and oral, between the parties, or any of them, with respect to the subject matter hereof. This Agreement may be amended only by an agreement in writing executed by the parties hereto, and no waiver of compliance with any
provision or condition of this Agreement and no consent provided for in this Agreement shall be effective unless evidenced by a written instrument executed by the party against whom such waiver or consent is to be effective. No failure or delay by a
party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege
hereunder. 
 11. Notices. All notices, consents, requests, instructions, approvals and other communications provided for
herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, when delivered in person or sent by overnight courier, when actually received during normal business hours at the address specified
in this subsection: 

  
 9 

 Execution Version 

 
  

			
	If to the Company:		Big 5 Sporting Goods Corporation
			2525 East El Segundo Boulevard
			El Segundo, CA 90245
			Attention: General Counsel
	
	with a copy, which shall not constitute notice, to:
		
			Latham & Watkins LLP
			650 Town Center Drive, 20th Floor
			Costa Mesa, CA 92626
			Attention: Michael A. Treska
		
	 If to the Stadium Capital Group:
		Stadium Capital Management, LLC
			199 Elm Street
			New Canaan, CT 06840
			Attention: Dominic DeMarco
	
	with a copy, which shall not constitute notice, to:
		
			 Wilson Sonsini Goodrich & Rosati

			 Professional Corporation,

			 650 Page Mill Rd. Palo Alto, CA 94304

			 Attention: David J. Berger

 12. Severability. If at any time subsequent to the date hereof, any provision of this Agreement
shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or
enforceability of any other provision of this Agreement. 
 13. Counterparts. This Agreement may be executed in two or more
counterparts either manually or by electronic or digital signature (including by facsimile or electronic mail transmission), each of which shall be deemed to be an original and all of which together shall constitute a single binding agreement on the
parties, notwithstanding that not all parties are signatories to the same counterpart. 
 14. No Third Party Beneficiaries;
Assignment. This Agreement is solely for the benefit of the parties hereto and is not binding upon or enforceable by any other persons. No party to this Agreement may assign its rights or delegate its obligations under this Agreement,
whether by operation of law or otherwise, and any assignment in contravention hereof shall be null and void. Nothing in this Agreement, whether express or implied, is intended to or shall confer any rights, benefits or remedies under or by reason of
this Agreement on any persons other than the parties hereto, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third persons to any party. 

15. Interpretation and Construction. When a reference is made in this Agreement to a Section, such reference shall be to a
Section of this Agreement, unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,”
“includes” and “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The word “will” shall be construed to have the same meaning as the word “shall.” The words
“dates hereof” will refer to the date of this Agreement. The word “or” is not exclusive. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms. Any agreement,
instrument, law, rule or statute defined or referred to herein means, unless otherwise indicated, such agreement, 

  
 10 

 Execution Version 

 
 
instrument, law, rule or statute as from time to time amended, modified or supplemented. Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout
all negotiations that have preceded the execution of this Agreement, and that it has executed the same with the advice of said independent counsel. Each party cooperated and participated in the drafting and preparation of this Agreement and the
documents referred to herein, and any and all drafts relating thereto exchanged among the parties shall be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation.
Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties
hereto, and any controversy over interpretations of this Agreement shall be decided without regards to events of drafting or preparation. 

[Signature Pages Follow] 

  
 11 

 IN WITNESS WHEREOF, each of the parties hereto has executed this SETTLEMENT AGREEMENT or caused
the same to be executed by its duly authorized representative as of the date first above written. 
  

			
	Big 5 Sporting Goods Corporation
		
	By:		 /s/ Steven G. Miller

	Name:		 Steven G. Miller

	Title:		 Chairman, President & CEO

 [Signature Page —
Settlement Agreement] 

 IN WITNESS WHEREOF, each of the parties hereto has executed this SETTLEMENT AGREEMENT or caused
the same to be executed by its duly authorized representative as of the date first above written. 
  

			
	Stadium Capital Management, LLC
		
	 By:
	 	 /s/ Alexander M. Seaver

	 Name:
	 	 Alexander M. Seaver

	 Title:
	 	 Managing Member

	
	Stadium Capital Management GP, L.P.
		
	 By:
	 	 /s/ Alexander M. Seaver

	 Name:
	 	 Alexander M. Seaver

	 Title:
	 	 Managing Member

	Stadium Capital Management, LLC, General Partner
	
	Stadium Capital Partners, L.P.
		
	 By:
	 	 /s/ Alexander M. Seaver

	 Name:
	 	 Alexander M. Seaver

	 Title:
	 	 Managing Member

	Stadium Capital Management GP, LP, General Partner
	Stadium Capital Management, LLC, General Partner
	
	Stadium Capital Qualified Partners, L.P.
		
	 By:
	 	 /s/ Alexander M. Seaver

	 Name:
	 	 Alexander M. Seaver

	 Title:
	 	 Managing Member

	Stadium Capital Management GP, LP, General Partner
	Stadium Capital Management, LLC, General Partner
	
	 /s/ Dominic P. DeMarco

	Dominic P. DeMarco
	
	 /s/ Nicholas Donatiello, Jr.

	Nicholas Donatiello, Jr.

 [Signature Page — Settlement Agreement] 

 Schedule A 

Members of Stadium Capital Group 
 Stadium
Capital Management, LLC 
 Stadium Capital Management GP, L.P. 

Stadium Capital Partners, L.P. 
 Stadium Capital Qualified
Partners, L.P. 
 Dominic P. DeMarco 

 Exhibit A 

Charter of Value Creation Committee 

 VALUE CREATION COMMITTEE CHARTER 

Big 5 Sporting Goods Corporation 

Value Creation Committee 

Purpose 
 The
Value Creation Committee is appointed by the Board of Directors (the “Board”) of Big 5 Sporting Goods Corporation (the “Company”) to, among other things, review the Company’s business, operations, capital allocations and
strategy, explore profit enhancement opportunities for the Company’s business, identify possible areas of value creation for the Company’s business and its stockholders and to make recommendations to the Board on these issues. 

Membership and Meetings 
 The Committee
shall consist of a maximum of three (3) directors. The Committee shall initially be co-chaired by Mr. Dominic P. DeMarco and Mr. Van B. Honeycutt; the other member of the Committee shall initially be Mr. Robert C.
Galvin or another designee as set forth in the Settlement Agreement dated April 30, 2015, it being understood that if, for any reason, Mr. Galvin is unable or unwilling to serve, the Committee shall operate with two (2) members until
the additional director is selected and appointed to the Committee. Subject to the terms of any agreement to which the Company may be party, the members of the Committee shall be appointed and may be removed solely for cause as defined by Delaware
law, and shall serve for such term as the Board determines or until their successors are elected or appointed. Subject to the terms of any agreement to which the Company may be party, the members of the Committee shall meet the independence
requirements of the listing standards of the Nasdaq Stock Market. 
 The Committee shall (i) meet as often as its members shall determine to be
necessary, or meetings may be called by either Co-Chairman or any two (2) members of the Committee or the Chairman of the Board and (ii) hold meetings on at least two (2) business days’
prior written notice or such shorter period as to which the members of the Committee agree. The Committee shall keep minutes and other relevant documentation of all meetings held. The Co-Chairs of the Committee shall be responsible for scheduling
all meetings of the Committee, determining the agenda for each meeting (following consultation with other members of the Committee), ensuring that the agenda for each meeting is circulated to each Committee member in advance of the meeting,
presiding over meetings of the Committee and coordinating reporting to the Board. A vote of a majority of all members of the Committee will constitute an act of the Committee. 

The Committee shall have reasonable access to members of management, and management shall furnish to the Committee such financial information, projections and
other information, support and cooperation as the Committee reasonably requests to assist it in performing its duties. In addition, the Committee may obtain reasonable assistance from management of the Company, and shall have the authority to retain
and engage independent financial advisors and consultants at the expense of the Company in furtherance of the purposes and authority of the Committee as set forth above and below. 

 The Committee shall make regular reports to the Board, and all recommendations of the Committee shall be reported
to the Board at the next regular meeting of the Board. 
 The Committee shall remain in effect until the earlier of (i) ten (10) days prior to the
deadline for submission of stockholder nominees for the Company’s 2016 annual meeting of stockholders or (ii) the date that is one hundred (100) days prior to the first anniversary of the Company’s 2015 annual meeting of
stockholders, and, if determined by the Board, thereafter. 
 Purpose and Authority 

The Committee shall have the authority to do the following: 
  

	 	1.	review the Company’s business, strategy, performance and market conditions; 

  

	 	2.	explore profit enhancement opportunities for the Company’s business; 

  

	 	3.	develop an operating improvement plan for the Company’s business; 

  

	 	4.	identify possible areas of value creation for the Company’s business and its stockholders; 

  

	 	5.	retain independent financial advisors and consultants at the expense of the Company to advise and assist it in considering these issues; and 

 

	 	6.	make recommendations to the Board for the Board’s consideration in deciding whether or not to approve and implement any (or all) of the above-referenced matters. 

Confidentiality 
 Subject to and consistent
with each Committee member’s fiduciary and/or contractual duties to the Company and its stockholders, each member of the Committee shall preserve the confidentiality of the Committee’s communications, deliberations and recommendations and
of information and material supplied to the Committee in the course of its duties (collectively, the “Confidential Information”). Consistent with the above provision, no member of the Committee shall use any Confidential Information for a
purpose other than as contemplated by this Charter or disclose any Confidential Information other than to (i) the Board, (ii) the Committee’s outside advisors or (iii) any person to whom disclosure of Confidential Information is
required by law. 
 ***** 

 Exhibit B 

Mutual Press Release 

  
 

 
 Contact: 
 Big 5 Sporting
Goods Corporation 
 Barry Emerson 
 Sr. Vice President and
Chief Financial Officer 
 (310) 536-0611 
 ICR, Inc. 

John Mills 
 Partner 

(310) 954-1105 
 BIG 5 SPORTING GOODS
CORPORATION ANNOUNCES BOARD CHANGES AS 
 PART OF AGREEMENT WITH STADIUM CAPITAL 

 

	 	•	 	New Slate for 2015 Annual Meeting 

  

	 	•	 	Two New Directors to be Added 

  

	 	•	 	Stockholders to Vote on Governance Changes 

 EL SEGUNDO, Calif., May 1, 2015 — Big 5
Sporting Goods Corporation (NASDAQ: BGFV) (the “Company”), a leading sporting goods retailer, today announced that it will revise its slate of director nominees for election to the Company’s Board of Directors at its 2015 Annual
Meeting of Stockholders (the “2015 Annual Meeting”) after reaching an agreement with Stadium Capital Management, LLC and certain of its affiliates (“Stadium”). The Company’s Class A director nominees for the 2015 Annual
Meeting will be Dominic P. DeMarco, Nicholas Donatiello, Jr., and David R. Jessick. In addition, following the 2015 Annual Meeting, the Company’s Board of Directors will be expanded to eight members and Robert C. Galvin will be appointed as a
director. As previously announced, G. Michael Brown has elected to retire from the Board at the end of his current term of service at the 2015 Annual Meeting. 

As part of the agreement with Stadium, the Company agreed to support the precatory stockholder proposal submitted by Stadium with respect to the
declassification of the Company’s Board of Directors and to submit and support precatory proposals at the 2015 Annual Meeting regarding the implementation of a majority voting standard in uncontested director elections and the elimination of
provisions in the Company’s certificate of incorporation and bylaws which require supermajority approval of certain actions. If stockholders approve these proposals at the 2015 Annual Meeting, the Board will implement majority voting following
the 2015 Annual Meeting and, at the Company’s 2016 Annual Meeting of Stockholders, submit and recommend in favor of binding stockholder proposals to eliminate the Company’s classified board and supermajority voting provisions. 

 Under the terms of the agreement, Stadium, the Company’s largest stockholder and the beneficial owner of
approximately 11.4% of the Company’s outstanding shares, has agreed to vote its shares in favor of the election of the Company’s revised slate of directors at the 2015 Annual Meeting. Stadium agreed to withdraw its other nominee for
director and its proxy solicitation, and has agreed to customary standstill provisions through the earlier of (A) the date that is ten days prior to the expiration of the Company’s advance notice period for the nomination of directors at
the Company’s 2016 Annual Meeting of Stockholders or (B) the date that is 100 days prior to the first anniversary of the 2015 Annual Meeting. The full agreement is being filed today with the Securities and Exchange Commission on a Form
8-K. 
 Based on the Company’s agreement with Stadium, Engaged Capital, LLC also has withdrawn its Board nominees for the 2015 Annual Meeting. 

Steven G. Miller, the Company’s Chairman, President and Chief Executive Officer, said, “We are pleased to have reached an agreement with Stadium and
look forward to Mr. Donatiello and Mr. Galvin joining the Board. This agreement will allow us to eliminate the distraction and unnecessary costs of a possible proxy contest and focus on driving business performance and long-term
stockholder value. 
 “We are grateful to Michael Brown for his service to the Company and our stockholders and we believe that the Board will benefit
from Mr. Donatiello’s extensive consumer, media and technology experience and Mr. Galvin’s financial and operational experience in the retail, sporting goods and footwear sectors,” added Mr. Miller. 

Dominic P. DeMarco of Stadium said, “We appreciate Big 5’s commitment to enhancing its Board composition and governance. As a significant
stockholder, we look forward to continuing to work constructively with Big 5 to drive long-term stockholder value.” 
 The 2015 Annual Meeting will be
held on June 12, 2015, at 10:00 a.m. local time at the Ayres Hotel, 14400 Hindry Avenue, Hawthorne, California 90250. 
 The Company provided the
following background information on Messrs. DeMarco, Donatiello, Galvin and Jessick: 
 Mr. DeMarco has served as a director of the Company since
October 2011 and currently serves as Managing Director, Co-Chief Investment Officer and Chief Compliance Officer for Stadium. 

 Mr. Donatiello is President and Chief Executive Officer of Odyssey Ventures, Inc., a marketing and strategy
consulting firm specializing in how technology changes consumer media use habits. Mr. Donatiello currently serves as a director of Dolby Laboratories, Inc., a creator of audio, imaging and communication technologies; three of the American Funds
managed by Capital Research and Management; and the Schwab Charitable Fund, one of the nation’s 10 largest grant-making charities and the largest in California. 

Mr. Galvin was previously Chief Executive Officer of Elie Tahari, Ltd., a designer fashion retail chain, President of Camuto Group, a manufacturer and
omni-channel retailer and wholesaler of women’s footwear and apparel, and held several executive roles, including Chief Operating Officer, of Sports Brands International Ltd., an international manufacturer and distributor of sports apparel and
footwear. Mr. Galvin currently serves as a director of bebe stores, Inc., a women’s fashion retailer; Cherokee, Inc., a licensor of brand names and trademarks for apparel, footwear and accessories; and Land’s End, Inc., a
multi-channel retailer of casual clothing, accessories and footwear. 
 Mr. Jessick has served as a director of the Company since 2006 and has more
than thirty years of experience as a corporate financial executive and chief financial officer of publicly traded companies in the retail sector, including Rite Aid Corp., Fred Meyer, Inc. and Thrifty Payless, Inc. He has been a member of several
public company boards, including three companies in the retail sector, and currently serves a director of Rite Aid Corp. 
 About Big 5 Sporting Goods
Corporation 
 Big 5 is a leading sporting goods retailer in the western United States, operating 437 stores under the “Big 5 Sporting Goods”
name as of the fiscal quarter ended March 29, 2015. Big 5 provides a full-line product offering in a traditional sporting goods store format that averages 11,000 square feet. Big 5’s product mix includes athletic shoes, apparel and
accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, winter and summer recreation and roller sports. 

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause Big 5’s actual results in current or future periods to differ materially from
forecasted results. Those risks and uncertainties include, among other things, continued or worsening weakness in the consumer spending environment and the U.S. financial and credit markets, fluctuations in consumer holiday spending patterns, breach
of data security or other unauthorized disclosure of sensitive personal or confidential information, the competitive environment in the sporting goods industry in general and in Big 5’s specific market areas, inflation, product availability and
growth opportunities, changes in the current market for (or regulation of) firearm-related products, seasonal fluctuations, weather conditions, changes in cost of goods, operating 

 
expense fluctuations, lower than expected profitability of Big 5’s e-commerce platform or cannibalization of sales from Big 5’s existing store base which could occur as a result of
operating the e-commerce platform, litigation risks, stockholder campaigns and proxy contests, disruption in product flow, changes in interest rates, credit availability, higher expense associated with sources of credit resulting from uncertainty in
financial markets and economic conditions in general. Those and other risks and uncertainties are more fully described in Big 5’s filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K and Quarterly
Reports on Form 10-Q. Big 5 conducts its business in a highly competitive and rapidly changing environment. Accordingly, new risk factors may arise. It is not possible for management to predict all such risk factors, nor to assess the impact of all
such risk factors on Big 5’s business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Big 5 undertakes no obligation to
revise or update any forward-looking statement that may be made from time to time by it or on its behalf. 
 # # #

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