Document:

Exhibit 10.4

 

CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT
TREATS AS PRIVATE OR CONFIDENTIAL.

 

INVENTORY FINANCING AGREEMENT

 

This Inventory Financing Agreement
(as from time to time amended and together with any Transaction Statements. as hereinafter defined, “Agreement”) is
between GE Commercial Distribution Finance Corporation (“CDF’’), with its chief executive office and principal
place of business at 5595 Trillium Boulevard, Hoffman Estates, Illinois 60192 and Twin Vee Catamarans, Inc, a FL corporation (“Dealer”).

 

1.                  
Extensions of Credit Subject to the terms of this Agreement CDF may extend credit to or on behalf
of Dealer from time to time to enable Dealer to purchase inventory from CDF-approved vendors (“Vendors”) and for other
purposes. CDF’s decision to advance funds is discretionary on CDF’s part CDF may combine all of CDF’s advances to Dealer
or on Dealer’s behalf. whether under this Agreement or any other agreement, and whether provided by one or more of CDF’s branch
offices, together with all finance charges, fees and expenses related thereto, to make one debt owed by Dealer. Without limiting the discretionary
nature of this credit facility, CDF may, without notice to Dealer, elect not to finance any inventory sold by particular Vendors who are
in default to CDF, or with respect to which CDF reasonably feels insecure. This Agreement concerns the extension of credit, and not the
provision of goods or services.

 

2.                  
Financing Terms. Certain financial terms of any advance which CDF makes under this Agreement
are not set forth herein because such terms depend, in part, on various factors, including without limitation, the availability of Vendor
discounts, payment terms or other incentives, CDF’s floor planning volume with Dealer and Vendor and other economic factors which
vary from time to time. Therefore, CDF and Dealer agree to set forth in this Agreement only the general terms of Dealer’s financing
arrangement with CDF. Upon agreeing to finance an item of inventory for Dealer, CDF will transmit or otherwise send to Dealer a “Transaction
Statement” which is a record that may be authenticated and transmitted by CDF to Dealer from time to time which identifies the
Collateral financed and/or the advance made and the terms and conditions of repayment of such advance. Dealer agrees that Dealer’s
failure to notify CDF in writing of any objection to a Transaction Statement within thirty (30) days after a Transaction Statement is
transmitted or otherwise sent to Dealer shall constitute Dealer’s (a) acceptance of all terms thereof, (b) agreement that CDF is
financing such inventory at Dealer’s request, and (c) agreement that such Transaction Statement will be incorporated herein by reference.
If Dealer objects to the terms of any Transaction Statement, Dealer will pay CDF for such inventory in accordance with the most recent
terms for similar inventory to which Dealer has not objected (or, if there are no prior terms, at the lesser of 16% per annum or at the
maximum lawful contract rate of interest permitted under applicable law), subject to termination of this Agreement by CDF and its rights
under the termination provision contained herein. With respect to any advance CDF makes to a Vendor on behalf of Dealer, CDF may apply
against any such amount owed to Vendor any amount CDF is owed from such Vendor with respect to Free Floor Periods (each a “CDF
Credit”) or any other amounts. Notwithstanding the foregoing, Dealer agrees to pay the full amount reflected on any Transaction
Statement.

 

3.                  
Security Interest.

 

(a)                
Dealer hereby grants to CDF a security interest in all of the Collateral as security for all Obligations.

 

    1 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

(b)              
“Collateral” means all personal property of Dealer, whether such property or Dealer’s
right, title or interest therein or thereto is now owned or existing or hereafter acquired or arising, and wherever located, including
without limitation, all Accounts, Inventory, Equipment, Fixtures, other Goods, General Intangibles (including without limitation, Payment
Intangibles), Chattel Paper (whether tangible or electronic), Instruments (including without limitation. Promissory Notes). Deposit Accounts,
Investment Property and Documents and all Products and Proceeds of the foregoing. Without limiting the foregoing, the Collateral includes
Dealer’s right to all Vendor Credits (as defined below). Similarly, the Collateral includes, without limitation, all books and records,
electronic or otherwise, which evidence or otherwise relate to any of the foregoing property, and all computers, disks, tapes, media and
other devices in which such records are stored. For purposes of this Section 3 only, capitalized terms used in this Section 3, which are
not otherwise defined, shall have the meanings given to them in Article 9 of the Illinois Uniform Commercial Code.

 

(c)              
“Obligations” means all indebtedness and other obligations of any nature whatsoever
of Dealer to CDF and/or to any person that at any time directly or indirectly controls, is controlled by, or is under common control with
CDF (a “CDF Affiliate”), whether such indebtedness or other obligations arise under this Agreement or any other existing
or future agreement between or among Dealer, CDF and/or a CDF Affiliate or otherwise, and whether for principal, interest, fees, expenses,
indemnification obligations or otherwise. and whether such indebtedness or other obligations are existing, future, direct. indirect, acquired,
contractual, noncontractual, joint and/or several, fixed, contingent or otherwise.

 

(d)              
“Vendor Credits” means all of Dealer’s rights to any price protection payments,
rebates, discounts. credits, factory holdbacks, incentive payments and other amounts which at any time are due Dealer from a Vendor.

 

4.                
Representations and Warranties. Dealer represents and warrants that at the time of execution
of this Agreement and at the time of each approval and each advance hereunder: (a) Dealer is in good standing, does not conduct business
under any trade styles or trade names except as disclosed by the Dealer to CDF in writing and has all the necessary authority to enter
into and perform this Agreement and Dealer will not violate its organizational documents, or any law, regulation or agreement binding
upon it, by entering into or performing its obligations under this Agreement: (b) Dealer keeps its records respecting accounts and chattel
paper at its chief executive office identified below, and the only locations at which Collateral is located have been or will be disclosed
by the Dealer to CDF in writing prior to the execution of this Agreement (together with additional locations of Dealer in the United States
with respect to which Dealer gives CDF at least thirty (30) days prior written notice, “Permitted Locations”); (c)
this Agreement correctly sets forth Dealer’s true legal name, the type of its organization (if not an individual;, the state in
which Dealer is incorporated or otherwise organized, and Dealer’s organizational identification number, if any: (d) all information
supplied by Dealer to CDF. ,including any financial. credit or accounting statements or application for credit, in connection. with this
Agreement is true, correct and complete: (e) all advances and other transactions hereunder are for business purposes and not for personal.
family, household or any other consumer purposes; (f) Dealer has good title to all Collateral; (g) there are no actions or proceedings
pending or threatened against Dealer which might result in any material adverse change in Dealer’s financial or business condition.;
and (h) when requested by CDF. Dealer will provide CDF with a copy of Dealer’s organizational documents, and will provide any subsequent
amendments thereto bearing indicia of filing from the appropriate governmental authority, or such other documents verifying Dealer’s
true and correct legal name as CDF may request from time to time.

 

    2 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

5.                 
Covenants.

 

(a)               
Until sold as permitted by this Agreement, Dealer shall own all Collateral financed by CDF
free and clear of all liens. security interests, claims and other encumbrances. whether arising by agreement or operation of law (collectively
“Liens”), other than Liens in favor of CDF and subordinate Liens in favor of other persons with respect to which CDF
shall have first consented in writing.

 

(b)              
Dealer will: (1) keep all Collateral at Permitted Locations and keep all tangible Collateral
in good order, repair and operating condition and insured as required herein; (2) promptly file all tax returns required by law and promptly
pay all taxes, fees, and other governmental charges for which it is liable, including without limitation all governmental charges against
the Collateral or this Agreement; (3) permit CDF and its designees. without notice, to inspect the Collateral during normal business hours
and at any other time CDF deems desirable (and Dealer hereby grants CDF and its designees an irrevocable license to enter Dealer’s
business locations during normal business hours without notice to Dealer to account for and inspect all Collateral and to examine and
copy Dealer’s books and records related to the Collateral); (4) keep complete and accurate records of its business, including inventory,
accounts and sales, and permit CDF and its designees to inspect and copy such records upon request; (5) furnish CDF with such additional
information regarding the Collateral and Dealer’s business and financial condition as CDF may from time to time reasonably request
(including without limitation financial statements and projections more frequently than set forth below); (6) immediately notify CDF of
any material adverse change in Dealer’s prospects, business, operations or condition (financial or otherwise) or in any Collateral;
(7) execute (or cause any third party in possession of Collateral to execute) all documents CDF requests to perfect and maintain CDF’s
security interest in the Collateral; (8) deliver to CDF immediately upon each request by CDF (and CDF may retain) each certificate of
title or statement of origin issued for Collateral financed by CDF; (9) at all times be duly organized, existing, in good standing, qualified
and licensed to do business in each jurisdiction in which the nature of its business or property so requires; (10) notify CDF of the commencement
of any material legal proceedings against Dealer or any Guarantor (as defined below); and (11) comply with all laws, rules and regulations
applicable to Dealer, including without limitation, the USA PATRIOT ACT and all laws, rules and regulations relating to import or export
controls or anti-money laundering.

 

(c)               
Dealer will not without CDF’s prior written consent: (1) use (except for demonstration
for sale), rent, lease, sell, transfer, consign, license, encumber or otherwise dispose of Collateral except for sales of inventory at
retail in the ordinary course of Dealer’s business: (2) sell or otherwise transfer inventory to a Dealer Affiliate (as defined below);
(3) engage in any other material transaction not in the ordinary course of Dealer’s business; (4) change its business in any material
manner or its structure or be a party to a merger or consolidation or change its registration to a registered organization other than
as specified above; (5) change its name or conduct business under a trade style or trade name other than those disclosed by the Dealer
to CDF in writing without giving CDF at least thirty (30) days’ prior written notice thereof; (6) change its chief executive office
or office where it keeps its records with respect to accounts or chattel paper; (7) change the state in which it is incorporated or otherwise
organized (except upon thirty (30) days’ prior written notice to CDF); (8) finance on a secured basis with any Vendor or any third
party the acquisition of inventory of the same brand as any inventory financed or to be financed by CDF; or (9) store Collateral financed
by CDF with any third party. For purposes of this Agreement, a “Dealer Affiliate” means any person that: (i) directly
or indirectly controls, is controlled by or is under common control with Dealer, (ii) directly or indirectly owns 5% or more of Dealer,
(iii) is a director, partner, manager, or officer of Dealer or an affiliate of Dealer, or (iv) any natural person related to Dealer or
an affiliate of Dealer.

 

    3 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

6.                  
Insurance.

 

(a)              
All risk of loss, damage to or destruction of Collateral shall at all times be on Dealer.
Dealer shall keep tangible Collateral insured for full value against all insurable risks under policies delivered to CDF and issued by
insurers satisfactory to CDF with loss payable to CDF and at CDF’s request under long-form mortgagee endorsements as its interest
may appear subject to cancellation or change only (i) upon ten (10) days written notice to CDF for non-payment of premium or (ii) upon
thirty (30) days written notice to CDF for all other reasons. CDF is authorized, but not required, to act as attorney-in-fact for Dealer
in adjusting and settling any insurance claims under any such policy and in endorsing any checks or drafts drawn by insurers. Dealer shall
promptly remit to CDF in the form received, with all necessary endorsements, all proceeds of such insurance which Dealer may receive.
CDF, at its election, shall either apply any proceeds of insurance it may receive toward payment of the Obligations or pay such proceeds
to Dealer.

 

(b)              
The following notice is given pursuant to Section 180/15 of the Collateral Protection Act
set forth in Chapter 815 Section 180/1 of the Illinois Compiled Statutes; nothing contained in such notice shall be deemed to limit or
modify the terms of this Agreement: UNLESS DEALER PROVIDES EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY DEALER’S AGREEMENT
WITH CDF, CDF MAY PURCHASE INSURANCE AT DEALER’S EXPENSE TO PROTECT CDF’S INTEREST IN DEALER’S COLLATERAL. THIS INSURANCE
MAY, BUT NEED NOT, PROTECT DEALER’S INTEREST. THE COVERAGE THAT CDF PURCHASES MAY NOT PAY ANY CLAIM THAT DEALER MAKES OR ANY CLAIM
THAT IS MADE AGAINST DEALER IN CONNECTION WITH THE COLLATERAL. DEALER MAY LATER CANCEL ANY INSURANCE PURCHASED BY CDF, BUT ONLY AFTER
PROVIDING CDF EVIDENCE THAT DEALER HAS OBTAINED INSURANCE AS REQUIRED UNDER THIS AGREEMENT, IF CDF PURCHASES INSURANCE FOR THE COLLATERAL,
DEALER WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES CDF MAY IMPOSE
IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS
OF THE INSURANCE MAY BE ADDED TO DEALER’S TOTAL OUTSTANDING BALANCE OR OBLIGATION. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE
COST OF INSURANCE DEALER MAY BE ABLE TO OBTAIN ON ITS OWN.

 

7.                  
Financial Statements. Unless waived by CDF, Dealer will deliver to CDF, in a form satisfactory
to CDF: (a) Dealer’s year-end balance sheet and annual profit and loss statement for each of its fiscal years, within twenty (20)
days after the same are prepared but in no event later than one hundred and twenty (120) days after the end of each fiscal year: (b) within
forty-five (45) days after the end of each of Dealer’s fiscal quarters. a reasonably detailed balance sheet and income statement
as of the last day of such quarter covering Dealer’s operations for such quarter; and (c) within ten (10) days after CDF’s
request, any other information relating to the Collateral or the financial condition of Dealer or any Guarantor. Dealer represents
that all financial statements and information which have been or may hereafter be delivered by Dealer or any Guarantor are and will be
correct and prepared in accordance with generally accepted accounting principles consistently applied, and there has been no material
adverse change in the financial or business condition of Dealer or any Guarantor since the submission to CDF of such financial statements,
and Dealer acknowledges CDF’s reliance thereon.

 

    4 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

8.                 
Payment Terms. Dealer will immediately pay CDF the principal amount of the Obligations owed
CDF on each item of Collateral financed by CDF on the earliest occurrence of any of the following events: (a) when such Collateral is
lost, stolen or damaged; (b) for Collateral financed under any pay-as-sold (“PAS”) terms. when such Collateral is sold.
transferred, rented. leased, otherwise disposed of, or its payment term has matured: (c) for Collateral financed under any scheduled payment
program (“SPP”) terms, in strict accordance with the installment payment schedule: (d) in strict accordance with any
curtailment schedule for such Collateral; and (e) when otherwise required under the terms of this Agreement. The PAS, SPP and curtailment
terms are or may be set forth in a Transaction Statement If Dealer is required to make immediate payment to CDF of any past due obligation
discovered during any Collateral review, or at any other time, CDF’s acceptance of such payment shall not be construed to have waived
or amended the terms of its financing program. Dealer will send all payments to CDF as directed. CDF may apply: (1) payments to reduce
finance charges first and then principal, regardless of Dealer’s instructions; and (2) principal payments to the oldest (earliest)
invoice for Collateral financed by CDF, but, in any event, all principal payments, may, in CDF’s sole discretion, first be applied
to such Collateral which is sold, lost, stolen, damaged. rented, leased, or otherwise disposed of or unaccounted for. Any Vendor Credit
granted to Dealer for any Collateral will not reduce the Obligations Dealer owes CDF until CDF has received payment therefor in cash.
Dealer will: (A) pay CDF even if any Collateral is defective or fails to conform to any warranties extended by any third party; and (B)
indemnify and hold CDF harmless against all claims and defenses asserted by any buyer of any Collateral. Dealer waives all rights of setoff
Dealer may have against CDF. Any payment hereunder which would otherwise be due on a day which is not a Business Day. shall be due on
the next succeeding Business Day, with such extension of time included in any calculation of applicable finance charges. Any advances
which are not used to acquire inventory, as contemplated hereby, shall be paid on demand unless otherwise provided in this Agreement or
in any Transaction Statement In order to adequately secure Dealer’s Obligations to CDF, Dealer shall, at CDF’s request immediately
pay CDF the amount necessary to reduce the sum of CDFs outstanding advances with respect to inventory received by Dealer to an amount
which does not exceed the aggregate invoice price to Dealer of the inventory in Dealer’s possession which (i) is financed by CDF,
and (ii) in which CDF has a perfected first priority lien. For purposes of this Agreement. “Business Day” means any
day the Federal Reserve Bank of Chicago is open for the transaction of business,

 

9.                 
Calculation of Charges.

 

(a)             
Dealer shall pay fees, charges and interest (collectively, “Charges”) with respect
to each advance in accordance with the Agreement. Dealer shall pay CDF its customary Charge for any check or other item which is returned
unpaid to CDF. Unless otherwise provided in the Agreement, the following additional provisions shall be applicable to Charges: (i) any
reference to: (a) “Prime Rate” shall mean for any calendar month the [***] “prime rate” published in the
“Money Rates” column of The Wall Street Journal on the first Business Day of such month; (b) “One month Libor”
rate shall mean for any calendar month the “One month Libor” rate published in the “Money Rates” column of The
Wall Street Journal on the first Business Day of such month; and/or (c) “Three month Libor” rate shall mean for
any calendar month the “Three month Libor” rate published in the “Money Rates” column of The Wall Street Journal
on the first Business Day of such month; (ii) all Charges shall be paid by Dealer monthly pursuant to the terms of the billing statement
in which such Charges appear; (iii) interest on each advance and principal amount of the Obligations related thereto shall be computed
each calendar month on the sum of the daily balances thereof during such month divided by thirty (30) and (A) in the case where a monthly
rate of interest is provided for, multiplied by the monthly rate provided for in the Agreement; or (B) in the case where an annual rate
of interest is provided for, multiplied by one-twelfth of the annual rate provided for in the Agreement; or (C) in the case where a daily
rate of interest is provided for, multiplied by such daily rate and multiplied by thirty (30); (iv) interest on an advance shall begin
to accrue on the Start Date which shall be defined as the earlier of: (A) the invoice date referred to in the Vendor’s invoice;
or (B) the ship date referred to in the Vendor’s invoice; or (C) the date CDF makes such advance; provided, however, if a Vendor
fails to fully pay, by honoring or paying any CDF Credit or otherwise, the interest or other cost of financing such inventory during the
period between the Start Date and the end of the Free Floor Period (as defined below), then Dealer shall pay such interest to CDF on demand
as if there were no Free Floor Period with respect to such inventory; (v) for the purpose of computing Charges, any payment will be credited
pursuant to CDF’s payment recognition policy, as in effect from time to time; and (vi) advances or any part thereof not paid when
due (and Charges not paid when due. at the option of CDF, shall become part of the principal amount of the Obligations and) shall bear
interest at the Default Rate (as defined below), For purposes of this Agreement, the following definitions shall apply: “Default
Rate” shall mean the default rate specified in Dealer’s financing program with CDF, if any, or if there is none so specified,
at the lesser of [***]% per annum above the rate in effect immediately prior to the Default, or the highest lawful contract rate of interest
permitted under applicable law; “Free Floor Period” shall mean a period equal to the number of days during which a
Vendor agrees to assume the cost of financing Collateral purchased by Dealer by granting CDF a CDF Credit

 

    5 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

(b)              
CDF intends to strictly conform to the usury laws governing this Agreement. Regardless of any provision
contained herein, in any Transaction Statement, or in any other document, CDF shall never be deemed to have contracted for, charged or
be entitled to receive, collect or apply as interest, any amount in excess of the maximum amount allowed by applicable law. If CDF ever
receives any amount which, if considered to be interest, would exceed the maximum amount permitted by law, CDF will apply such excess
amount to the reduction of the unpaid principal balance which Dealer owes, and then will pay any remaining excess to Dealer. In determining
whether the interest paid or payable exceeds the highest lawful rate, Dealer and CDF shall. to the maximum extent permitted under applicable
law, (1) characterize any non-principal payment (other than payments which are expressly designated as interest payments hereunder) as
an expense or fee rather than as interest, (2) exclude voluntary pre-payments and the effect thereof, and (3) spread the total amount
of interest throughout the entire term of this Agreement so that the interest rate is uniform throughout such term. CDF will recognize
and credit payments made by check, ACH, federal wire, or other means, according to its payment recognition policies from time to time
in effect, or as otherwise agreed, Information regarding CDF payment recognition policies is available from Dealer’s CDF representative,
the CDF website, or will be communicated pursuant to Section 10(b) below.

 

(c)               
Dealer may receive a record which is or contains a Self-Certification Floorcheck (“SCF”)
at the beginning of certain months reflecting unpaid advances through the last day of the preceding month. If Dealer receives an SCF,
Dealer must complete it and return it to CDF by the 15th day of the same month in which it was received by Dealer, along with
all payments due CDF under this Agreement. If CDF does not receive the completed SCF and all payments due by the 25”‘ day
of the month in which the SCF was received by Dealer, Dealer will pay CDF a self-certification fee as may be announced from time to time
for such month in addition to all other amounts owed. The cost of any collateral inspection occasioned by a default or otherwise out of
the ordinary course of business may be added to the Obligations at CDF’s discretion.

 

10.             
Billing Statement/Fees; Right to Modify Charges and Other Terms.

 

(a)          CDF
will transmit or otherwise send Dealer a monthly billing statement identifying all charges due on Dealer’s account with CDF. The
charges specified on each billing statement will be (1) due and payable in full immediately on receipt and (2) an account stated, unless
CDF receives Dealer’s written objection thereto within fifteen 115) days after it is transmitted or otherwise sent to Dealer. If
CDF does not receive, by the 25th day of any given month, payment of all charges accrued to Dealer’s account with CDF during the
immediately preceding month, Dealer will (to the extent allowed by law) pay CDF a late fee equal to the greater of $5 or [***]% of the
amount of such charges (payment of such fee does not waive the default caused by the late payment). CDF may adjust the billing statement
at any time to conform to applicable law and this Agreement.

 

    6 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

(c)               
CDF may charge one or more fees in connection with the servicing and administration of Dealer’s
account from time to time, CDF may provide written notice to Dealer of new or changed fees, interest and/or other finance charges (including
without limitation, increases or decreases in the periodic rate or amount of finance charges, the method of computing finance charges
and when and how finance charges, and principal payments, are payable). policies, practices and other charges and/or credit terms (collectively,
“Fees and Terms”) payable by, or applicable to. Dealer or relating to Dealer’s account generally, or in connection
with specific services. or events, to be effective as of the notice date, or such other future effective date as CDF shall advise, with
respect to existing Obligations owing by Dealer to CDF and/or to Obligations incurred or arising after such notice or future effective
date, as the case may be, all as CDF may elect by so indicating in such notice. Such notice may be delivered by mail, courier or electronically
in a separate writing or website posting, or set forth in the Transaction Statement and/or the billing statement Dealer shall be deemed
to have accepted such Fees and Terms by either (1) making any request for financing after the effective date of such notice, or (2) failing
to notify CDF in writing of any objection to a Transaction Statement billing statement or written notice advising of such Fees and Terms
within fifteen (15) days after such notice has been sent to Dealer. If Dealer objects to the Fees and Terms, such Fees and Terms shall
not be imposed, but CDF may charge or implement the last Fees and Terms to which Dealer has not objected, and may elect to terminate Dealer’s
financing program.

 

11.             
Default. The occurrence of one or more of the following events shall constitute a default
by Dealer (a “Default”): (a) Dealer shall fail to pay any Obligations when due or any remittance for any Obligations
is dishonored when first presented for payment; (b) any representation made to CDF by Dealer or by any guarantor, surety. issuer of a
letter of credit or any person other than Dealer primarily or secondarily liable with respect to any Obligations (a “Guarantor”)
shall not be true when made or if Dealer or any Guarantor shall breach any covenant. warranty or agreement to or with CDF; (c) Dealer
(including, if Dealer is a partnership or limited liability company, any partner or member of Dealer) or any Guarantor shall die. become
insolvent or generally fail to pay its debts as they become due or, if a business, shall cease to do business as a going concern; (d)
any letter of credit or other form of collateral provided by Dealer or a Guarantor to CDF with respect to any Obligations or Collateral
shall terminate or not be renewed at least sixty (60) days prior to its stated expiration or maturity: (e) Dealer abandons any Collateral;
(f) any Guarantor shall revoke, terminate or limit, or take any action purporting to revoke, terminate or limit, any guaranty or other
assurance of payment relating to any Obligations; (g) Dealer or any Guarantor shall make an assignment for the benefit of creditors, or
commence a proceeding with respect to itself under any bankruptcy, reorganization, arrangement, insolvency, receivership, dissolution
or liquidation statute or similar law of any jurisdiction, or any such proceeding shall be commenced against it or any of its property
(an “Automatic Default”); (h) an attachment, sale or seizure shall be issued or shall be executed against any assets
of Dealer or of any Guarantor; (i) Dealer shall lose, or shall be in default of, any franchise, license or right to deal in any Collateral
which CDF finances: (j) Dealer. Guarantor or any third party shall file any correction or termination statement with respect to any Uniform
Commercial Code (the “UCC”) filing made by CDF in connection herewith; (k) a material adverse change shall occur in
the business. operations or condition (financial or otherwise) of Dealer (including, if Dealer is a partnership or limited liability company,
any partner or member of Dealer) or any Guarantor or with respect to the Collateral; (l) Dealer or any Guarantor fails to pay any debt
or perform any other obligation owed to any third party; (m) Dealer or any Guarantor defaults under the terms of any agreement with any
CDF Affiliate: or (n) CDF in good faith believes the prospect of payment of any Obligations is impaired or CDF deems itself insecure.

 

    7 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

12.             
Rights and Remedies Upon Default. Upon the occurrence of a Default, CDF shall have all rights
and remedies of a secured party under the UCC as in effect in any applicable jurisdiction and other applicable law and all the rights
and remedies set forth in this Agreement. CDF may terminate any obligations it has under this Agreement and any outstanding credit approvals
immediately and/or declare any and all Obligations immediately due and payable without notice or demand. Dealer waives notice of intent
to accelerate, and of acceleration of any Obligations. CDF may enter any premises of Dealer, with or without process of law, without force,
to search for. take possession of, and remove the Collateral, or any part thereof. If CDF requests, Dealer shall cease disposition of
and shall assemble the Collateral and make it available to CDF, at Dealer’s expense, at a convenient place or places designated
by CDF. CDF may take possession of the Collateral or any part thereof on Dealer’s premises and cause it to remain there at Dealer’s
expense, pending sale or other disposition. Dealer agrees that the sale of inventory by CDF to a person who is liable to CDF under a guaranty,
endorsement, repurchase agreement or the like shall not be deemed to be a transfer subject to UCC §9-618 or any similar provision
of any other applicable law, and Dealer waives any provision of such laws to that effect Dealer agrees that the repurchase of inventory
by a Vendor pursuant to a repurchase agreement with CDF shall be a commercially reasonable method of disposition. Dealer shall be liable
to CDF for any deficiency resulting from CDF’s disposition. including without limitation a repurchase by a Vendor. regardless of
any subsequent disposition thereof. Dealer is not a beneficiary of, and has no right to require CDF to enforce, any repurchase agreement.
Any notice of a disposition shall be deemed reasonably and properly given if given to Dealer at least ten (10) days before such disposition.
If Dealer fails to perform any of its obligations under this Agreement, CDF may perform the same in any form or manner CDF in its discretion
deems necessary or desirable, and all monies paid by CDF in connection therewith shall be additional Obligations and shall be immediately
due and payable without notice together with interest payable on demand at the Default Rate. All of CDF’s rights and remedies shall
be cumulative. At CDF’s request, or without request in the event of an Automatic Default, Dealer shall pay all Vendor Credits to
CDF as soon as the same are received for application to the Obligations. Dealer authorizes CDF lo collect such amounts directly from Vendors
and, upon request of CDF shall instruct Vendors to pay CDF directly. Dealer irrevocably waives any requirement that CDF retain possession
and not dispose of any Collateral until after an arbitration hearing. arbitration award, confirmation, trial or final judgment or appeal
thereof. CDF’s election to extend or not extend credit to Dealer is solely at CDF’s discretion and does not depend on the
absence or existence of a Default. If a Default is in effect, and without regard to whether CDF has accelerated any Obligations, CDF may.
without notice, apply the Default Rate.

 

13.            
Power of Attorney. Dealer authorizes CDF to: (a) file financing statements describing CDF
as “Secured Party,” Dealer as “Debtor” and indicating the Collateral; (b) authenticate. execute or endorse on
behalf of Dealer any instruments. chattel paper, certificates of title, manufacturer statements of origin. builder’s certificate.
financing statements and amendments thereto, or other notices or records comprising or related to Collateral or evidencing financing under
the Agreement or evidencing or maintaining the perfection of the security interest granted hereby, as attorney-in-fact for Dealer; and
(c) supply any omitted information and correct errors in any documents between CDF and Dealer. This power of attorney and the other powers
of attorney granted herein are irrevocable and coupled with an interest.

 

14.             
Collection and Other Costs. Dealer shall pay to CDF on demand all reasonable attorneys’
fees and legal expenses and other costs and expenses incurred by CDF in connection with establishing. Perfecting, maintaining perfection
of, protecting and enforcing its Lien on the Collateral and collecting any Obligations, or in connection with any modification of this
Agreement, any Default or in connection with any action or proceeding under any bankruptcy or insolvency laws or incurred pursuant to
an arbitration proceeding involving the Dealer, any Guarantor or any Collateral. All fees, expenses, costs and other amounts described
in this Section shall constitute Obligations, shall be secured by the Collateral and interest shall accrue thereon at the Default Rate.

 

    8 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

15.              
Information. Dealer irrevocably authorizes CDF to investigate and make inquiries of former,
current, or future creditors or other persons and credit bureaus regarding or relating to Dealer (including, to the extent permitted by
law, any equity holders of Dealer). CDF may provide to any CDF Affiliate or any third parties any financial, credit or other information
regarding Dealer that CDF may at any time possess, whether such information was supplied by Dealer to CDF or otherwise obtained by CDF.
Further, Dealer irrevocably authorizes and instructs any third parties (including without limitation, any Vendors or customers of Dealer)
to provide to CDF any credit, financial or other information regarding Dealer that such third parties may at any time possess, whether
such information was supplied by Dealer to such third parties or otherwise obtained by such third parties.

 

16.              
Dealer’s Claims Against Vendors. Dealer will not assert against CDF any claim or defense
Dealer may have against any Vendor whether for breach of contract warranty. misrepresentation, failure to ship, lack of authority. or
otherwise, including without limitation claims or defenses based upon charge backs, credit memos, rebates, price protection payments or
returns. Any such claims or defenses or other claims or defenses Dealer may have against a Vendor shall not affect Dealer’s liabilities
or obligations to CDF.

 

17.              
Termination. Unless sooner terminated as provided in this Agreement or by at least thirty
(30) days prior written notice from either party to the other, the term of this Agreement shall be for one (1) year from the date hereof
and from year to year thereafter; provided. however, that CDF may terminate the Agreement immediately by notice to Dealer if Dealer objects
to any terms of any Transaction Statement, billing statement or written notice advising of Fees and Terms. Upon termination of the Agreement,
all Obligations shall become immediately due and payable without notice or demand. Upon any termination, Dealer shall remain fully liable
to CDF for all Obligations. including without limitation all fees, expenses and charges. arising prior to or after termination. and all
of CDF’s rights and remedies and its security interest shall continue until all Obligations to CDF are paid and all obligations
of Dealer are performed in full. If CDF makes advances in reliance on a repurchase agreement from a Vendor, it may cease making such advances
if it has any concern as to whether such repurchase agreement will cover future advances or be performed by such Vendor. No provision
of the Agreement shall be construed to obligate CDF to make any advances. All waivers and indemnifications in CDF’s favor, and the
agreement to arbitrate, set forth in this Agreement will survive any termination of this Agreement.

 

18.             
Binding Effect. Dealer cannot assign its interest in this Agreement without CDF’s prior
written consent CDF may assign or participate CDF’s interest. in whole or in part, without Dealer’s consent This Agreement
will protect and bind CDF’s and Dealer’s respective heirs. representatives, successors and assigns. as the case may be.

 

19.             
Notices. Except as required by law or as otherwise provided herein, all notices or other communications
to be given under the Agreement or under the UCC shall be in writing served either personally, by deposit with a reputable overnight courier
with charges prepaid, or by deposit in the United States mail, first-class postage prepaid or provided for, addressed to Dealer at its
chief executive office shown below or to any office to which CDF sends billing statements, or to CDF at its address shown in the preamble
hereto, to the attention of its Credit Department, or at such other address designated by such party by notice to the other. Any such
communication shall be deemed to have been given upon delivery in the case of personal delivery, one Business Day after deposit with an
overnight courier or two (2) calendar days after deposit in the United States mail except that any notice of change of address shall not
be effective until actually received.

 

    9 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

20.             
Severability. If any provision of this Agreement or its application is invalid or unenforceable,
the remainder of this Agreement will not be impaired or affected and will remain binding and enforceable.

 

21.             
Supplement. If Dealer and CDF have previously executed other agreements pertaining to all
or any part of the Collateral, this Agreement will supplement but not amend, such agreement and this Agreement will neither be deemed
a novation nor a termination of such agreement, nor will execution of this Agreement be deemed a satisfaction of any obligation secured
by such agreement

 

22.             
Receipt of Agreement. Dealer acknowledges that it has received a true and complete copy of
this Agreement. Dealer has read and understands this Agreement Notwithstanding anything herein to the contrary, CDF may rely on any facsimile
copy, electronic data transmission, or electronic data storage of this Agreement, any Transaction Statement, billing statement. financing
statement, authorization to pre-file financing statements. invoice from a Vendor, financial statements or other reports, which will be
deemed an original. and the best evidence thereof for all purposes.

 

23.             
Acceptance by CDF. CDF may accept this Agreement by issuance of an approval to a Vendor for
the purchase of inventory by Dealer or by making an advance hereunder,

 

24.             
Miscellaneous. Time is of the essence regarding Dealer’s performance of its obligations
to CDF. Dealer’s liability to CDF Is direct and unconditional and will not be affected by the release or nonperfection of any security
interest granted hereunder. CDF may refrain from or postpone enforcement of this Agreement or any other agreements between CDF and Dealer
without prejudice. and the failure to strictly enforce these agreements will not create a course of dealing which waives, amends or modifies
such agreements. Any waiver by CDF of a Default shall only be effective if in writing signed by CDF and transmitted to Dealer. The express
terms of this Agreement will not be mcx11fied by any course of dealing, usage of trade, or custom of trade which may deviate from the
terms hereof. If Dealer fails to pay any taxes, fees or other obligations which may impair CDF’s interest in the Collateral, or
fails to keep any Collateral insured, CDF may, but shall not be required to. pay such amounts. Such paid amounts will be: (a) additional
Obligations which Dealer owes to CDF, which are subject to finance charges as provided herein and shall be secured by the Collateral;
and (b) due and payable immediately in full. Section titles used herein are for convenience only, and do not define or limit the contents
of any Section. All words used herein shall be understood and construed to be of such number and gender as the circumstances may require.
This Agreement may be validly executed in one or more multiple counterpart signature pages. This Agreement shall be construed without
presumption for or against any party who drafted all or any portion of this Agreement No modification of this Agreement shall bind CDF
unless in a writing signed by CDF and transmitted to Dealer. Among other symbols, CDF hereby adopts “GE Commercial Distribution
Finance Corporation,” “GE Commercial Distribution Finance,” “GECDF’ or “CDF” as evidence of
its intent to authenticate a record.

 

25.              
Limitation of Remedies and Damages. In the event there is any dispute under this Agreement.
the aggrieved party shall not be entitled to exemplary or punitive damages so that the aggrieved party’s remedy in connection with
any action arising under or in any way related to this Agreement shall be limited to a breach of contract action and any damages in connection
therewith are limited to actual and direct damages, except that CDF may seek equitable relief in connection with any judicial repossession
of, or temporary restraining order with respect to, the Collateral.

 

    10 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

26.              
BINDING ARBITRATION.

 

(a)               
Arbitrable Claims. Except as otherwise specified below, all actions, disputes, claims and
controversies under common law, statutory law or in equity of any type or nature whatsoever, whether arising before or after the date
of this Agreement, and whether directly or indirectly relating to: (a) this Agreement and/or any amendments and addenda hereto, or the
breach, invalidity or termination hereof: (b) any previous or subsequent agreement between CDF and Dealer; (c) any act committed by CDF
or by any parent company, subsidiary or affiliated company of CDF (the “CDF Companies”),or by any employee, agent,
officer or director of a CDF Company whether or not arising within the scope and course of employment or other contractual representation
of the CDF Companies provided that such act arises under a relationship, transaction or dealing between CDF and Dealer; and/or (d) any
other relationship, transaction or dealing between CDF and Dealer (collectively the “Disputes”), will be subject to and resolved
by binding arbitration. Notwithstanding the foregoing. the parties agree that either party may pursue claims against the other that do
not exceed Fifteen Thousand Dollars ($15,000) in the aggregate in a court of competent jurisdiction. Service of arbitration claims shall
be acceptable if made by U.S. mail or overnight delivery to the address for the party described herein.

 

(b)            
Administrative Body. All arbitration hereunder will be conducted in accordance with the Commercial
Arbitration Rules of either: (a) The American Arbitration Association (“AAA”); or (b) United States Arbitration & Mediation
(“USA&M’’), The party first filing an arbitration claim shall designate which arbitration forum and rules are to
be applied for all disputes between the parties. The arbitration rules are currently found at www.adr.org for AAA, and at www.usam-midwestcom
for USA&M. AAA claims may be filed in any AAA office. Claims filed with USA&M shall be filed in its Midwest office located at
720 Olive Street, Suite 2020, St Louis, Missouri 63101. All arbitrator(s) selected will be attorneys with at least five (5) years secured
transactions experience. A panel of three arbitrators shall hear all claims exceeding One Million Dollars ($1,000.000), exclusive of interest
costs and attorneys’ fees. The arbitrator(s) will decide if any inconsistency exists between the rules of the applicable arbitral
forum and the arbitration provisions contained herein. If such inconsistency exists, the arbitration provisions contained herein will
control and supersede such rules. The arbitrator shall follow the terms of this Agreement and the applicable law. including without limitation,
the attorney-client privilege and the attorney work product doctrine.

 

(c)              
Hearings. Each party hereby consents to a documentary hearing for all arbitration claims by
submitting the dispute to the arbitrator(s) by written briefs and affidavits, along with relevant documents. However, arbitration claims
will be submitted by way of an oral hearing if any party requests an oral hearing within forty (40) days after service of the claim and
that party remits the appropriate deposit for fees and arbitrator compensation within ten (10) days of making the request. Each party
agrees that failure to timely pay all fees and arbitrator compensation billed to the party requesting the oral hearing will be deemed
such party’s consent to submitting the Dispute to the arbitrator on documents and such party’s waiver of its request for an
oral hearing. The site of all oral arbitration hearings will be in the Division of the Federal Judicial District in which the designated
arbitration association maintains a regional office that is closest to Dealer.

 

(d)             
Discovery. Discovery permitted in any arbitration proceeding commenced hereunder is limited
as follows. No later than forty (40) days after the filing and service of a claim for arbitration, the parties in contested cases will
exchange detailed statements setting forth the facts supporting the claim(s) and all defenses to be raised during the arbitration, and
a list of all exhibits and witnesses. No later than twenty-one (21) days prior to the oral arbitration hearing, the parties will exchange
a final list of all exhibits and all witnesses. including any designation of any expert witness(es) together with a summary of their testimony:
a copy of all documents and a detailed description of any property to be introduced at the hearing. Under no circumstances will the use
of interrogatories, requests for admission, requests for the production of documents or the taking of depositions be permitted. However,
in the event of the designation of any expert witness(es), the following will occur: (i) all information and documents relied upon by
the expert witness(es) will be delivered to the opposing party; (ii) the opposing party will be permitted to depose the expert witness(es);
(iii) the opposing party will be permitted to designate rebuttal expert witness(es); and (iv) the arbitration hearing will be continued
to the earliest possible date that enables the foregoing limited discovery to be accomplished.

 

    11 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

(e)              
The arbitrator(s) will not have the authority to award exemplary or punitive damages.

 

(f)              
All arbitration proceedings, including testimony or evidence at hearings, will be kept confidential,
although any award or order rendered by the arbitrator(s) pursuant to the terms of this Agreement may be confined as a judgment or order
in any state or federal court of competent jurisdiction within the federal judicial district which includes the residence of the party
against whom such award or order was entered. This Agreement concerns transactions involving commerce among the several states. The Federal
Arbitration Act, Title 9 U.S.C. Sections 1 et seq., as amended (“FAA”) will govern all arbitration(s) and confirmation proceedings
hereunder.

 

(g)             
Provisions. Nothing herein will be construed to prevent CDF’s or Dealer’s use
of bankruptcy, receivership, injunction, repossession, replevin. claim and delivery, sequestration, seizure, attachment, foreclosure,
and/or any other prejudgment or provisional action or remedy relating to any Collateral for any current or future debt owed by either
party to the other. Any such action or remedy will not waive CDF’s or Dealers right to compel arbitration of any Dispute.

 

(h)             
If either Dealer or CDF brings any other action for judicial relief with respect to any Dispute
(other than those set forth in Sections 26(a) or 26(g)), the party bringing such action will be liable for and immediately pay all of
the other party’s costs and expenses (including attorneys· fees) incurred to stay or dismiss such action and remove or refer
such Dispute to arbitration. If either Dealer or CDF brings or appeals an action to vacate or modify an arbitration award and such party
does not prevail, such party will pay all costs and expenses. including attorneys· fees. incurred by the other party in defending
such action. Additionally. if Dealer sues CDF or institutes any arbitration claim or counterclaim against CDF in which CDF is the prevailing
party, Dealer will pay all costs and expenses (including attorneys’ fees) incurred by CDF in the course of defending such action
or proceeding.

 

(i)                
Limitations. Any arbitration proceeding must be instituted: (a) with respect to any Dispute
for the collection of any debt owed by either party to the other, within two (2) years after the date the last payment by or on behalf
of the payer was received and applied in respect of such debt by the payee; and (b) with respect to any other Dispute, within two (2)
years after the date the incident giving rise thereto occurred. whether or not any damage was sustained or capable of ascertainment or
either party knew of such incident Failure to institute an arbitration proceeding within such period will constitute an absolute bar and
waiver to the institution of any proceeding. whether arbitration or a court proceeding, with respect to such Dispute. Notwithstanding
the foregoing. this limitations provision will be suspended temporarily as of the date any of the following events occur and will not
resume until the date following the date either party is no longer subject to (i) bankruptcy, (ii) receivership, (iii) any proceeding
regarding an assignment for the benefit of creditors, or (iv) any legal proceeding, civil or criminal, which prohibits either party from
foreclosing any interest it might have in the collateral of the other party.

 

(j)                
Survival After Termination. The agreement to arbitrate will survive the termination of this
Agreement

 

    12 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

27.            
Governing Law. This Agreement and all agreements between Dealer and CDF have been substantially
negotiated and will be substantially performed in the state of Illinois. Accordingly, all Disputes will be governed by. and construed
in accordance with, the laws of such state, except to the extent inconsistent with the provisions of the FAA, which will control and govern
all arbitration proceedings hereunder.

 

28.             
INVALIDITY/UNENFORCEABILITY OF BINDING ARBITRATION. IF THIS AGREEMENT IS FOUND TO BE NOT SUBJECT
TO ARBITRATION, ANY LEGAL PROCEEDING WITH RESPECT TO ANY DISPUTE WILL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE WITHOUT
A JURY. DEALER AND CDF WAIVE ANY RIGHT TO A JURY TRIAL IN ANY SUCH PROCEEDING. SIMILARLY, IF THIS AGREEMENT OR A PARTICULAR DISPUTE HEREUNDER
IS NOT SUBJECT TO ARBITRATION, DEALER HEREBY CONSENTS TO THE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURT LOCATED WITHIN ILLINOIS
AND WAIVES ANY OBJECTION WHICH DEALER MAY HAVE BASED ON IMPROPER VENUE OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY ACTION OR PROCEEDING
IN ANY SUCH COURT.

 

    13 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

THIS CONTRACT CONTAINS BINDING
ARBITRATION, JURY WAIVER AND PUNITIVE DAMAGE WAIVER PROVISIONS.

 

	Dated: January 28, 2010.	 
	 	 	 
	DEALER	 
	 	 	 
	Twin Vee Catamarans, Inc	 
	 	 	 
	By:	/s/ Donna Dunshee	 
	Print Name:	Donna Dunshee	 
	Title:	President	 
	Tax ID:	[***]	 
	Org. ID (if any):	 	 
	 	 	 
	Dealer’s Chief Executive Office and Principal Place of Business:
	3101 S. US Highway 1	 
	Fort Pierce, FL 34982	 
	 	 
	 	 	 
	 ☒	Attach copy of Driver s License or State ID card for parties signing in their individual capacity.
	 	 	 
	GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION
	 	 	 
	By:	/s/ Samuel Gillespie	 
	Printed:	Samuel Gillespie	 
	Title:	Credit Analyst	 

 

    14 

    CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

    

 

CERTIFIED COPY OF RESOLUTIONS

OF BOARD OF DIRECTORS

 

The undersigned hereby certifies
to GE Commercial Distribution Finance Corporation that: he/she is the duly elected, qualified and acting Secretary or Assistant Secretary
of Twin Vee Catamarans, Inc, a corporation duly existing and in good standing under the laws of the Stale of FL (the “Corporation”);
as such officer he/she has custody of the corporate records of the Corporation, including the minutes of the meetings of, and actions
taken by consent of, its Board of Directors; (i) at a meeting of said Board of Directors duly called, convened and held, at which there
was present and acting throughout a quorum of the Board of Directors, or (ii) pursuant to a written consent duly executed by all directors
of the Corporation, the following resolutions were duly adopted by the Board of Directors of the Corporation; and said resolutions have
not been amended or rescinded, and presently are in full force and effect and do not in any manner contravene the charter or by-laws of
the Corporation:

 

RESOLVED, that this Corporation is hereby
authorized to establish and maintain financing arrangements with GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION, and its successors and
assigns (“Lender”), in such amounts and upon such terms as any officer of this Corporation (including any such officer’s
successors in office) may approve, such approval to be conclusively evidenced by the execution by any officer (including any such officer’s
successors in office) or agent of this Corporation, or any person now or hereafter designated by any of them (each such officer, agent
and other person, an “Authorized Person’), of any loan agreement or other document or documents which provide for such financing
arrangements; and such financing and this Corporation’s other indebtedness, liabilities and obligations to Lender are hereby authorized
to be secured by a security interest in and lien on all of this Corporation’s assets, whether now existing or hereafter acquired
or arising, or any part thereof.

 

FURTHER RESOLVED, that each Authorized
Person is authorized and directed to do the following in the name and on behalf of this Corporation, namely, (a) to borrow from Lender
such sums as may be made available to this Corporation pursuant to such financing arrangements, directly or indirectly, by Lender at any
time and from time to time, (b) to execute and deliver such loan agreements, security agreements, powers of attorney, financing statements,
notes, program letters, guaranties, and other agreements, instruments, financial reports, certifications and other documents, and all
renewals, extensions, supplements and modifications thereof, as Lender shall require to establish and continue such financing arrangements,
in each case upon such terms as any officer of this Corporation (including any such officer’s successors in office) may approve,
such approval to be conclusively evidenced by the execution thereof by any Authorized Person, and (c) to do all such other acts and things
as any Authorized Person deems necessary or advisable to establish and continue such financing arrangements and to carry out the intent
of these resolutions and the transactions contemplated herein, with all such acts and things previously done by them to establish and
continue financing arrangements for this Corporation with Lender being hereby ratified and approved.

 

IN WITNESS WHEREOF, the
undersigned has set his/her hand as such Secretary or Assistant Secretary of the Corporation on January 28, 2010.

 

	 	/s/ Donna Dunshee
	 	(Signature of Secretary or Assistant Secretary)
	 	Print Name: 	Donna DunsheeEXHIBIT 4.1

  

 

 

Rights Agreement

 

Dated as
of June 2, 2021

 

By and Between

 

Star Equity
Holdings, Inc.

 

and

 

American
Stock Transfer & Trust Company, LLC,

as Rights
Agent

 

 

 

     

     

    

 

Table of Contents

 

Page

 

	1.	Certain Definitions	1
	 	 	 
	2.	Appointment of Rights Agent	7
	 	 	 
	3.	Issue of Right Certificates	8
	 	 	 
	4.	Form of Right Certificates	10
	 	 	 
	5.	Countersignature and Registration	10
	 	 	 
	6.	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	11
	 	 	 
	7.	Exercise of Rights; Purchase Price; Expiration Date of Rights	12
	 	 	 
	8.	Cancellation and Destruction of Right Certificates	13
	 	 	 
	9.	Company Covenants Concerning Securities and Rights	14
	 	 	 
	10.	Record Date	15
	 	 	 
	11.	Adjustment of Purchase Price, Number and Kind of Securities or Number of Rights	15
	 	 	 
	12.	Certificate of Adjusted Purchase Price or Number of Securities	22
	 	 	 
	13.	Consolidation, Merger or Sale or Transfer of Assets or Earning Power	22
	 	 	 
	14.	Fractional Rights and Fractional Securities	25
	 	 	 
	15.	Rights of Action	27
	 	 	 
	16.	Agreement of Rights Holders	27
	 	 	 
	17.	Right Certificate Holder Not Deemed a Stockholder	28
	 	 	 
	18.	Concerning the Rights Agent	28
	 	 	 
	19.	Merger or Consolidation or Change of Name of Rights Agent	29
	 	 	 
	20.	Duties of Rights Agent	29
	 	 	 
	21.	Change of Rights Agent	31
	 	 	 
	22.	Issuance of New Right Certificates	32
	 	 	 
	23.	Redemption	33

 

    i 

     

    

 

Table of Contents

(continued)

 

Page

 

	24.	Exchange	33
	 	 	 
	25.	Notice of Certain Events	34
	 	 	 
	26.	Notices	35
	 	 	 
	27.	Supplements and Amendments	36
	 	 	 
	28.	Successors; Certain Covenants	37
	 	 	 
	29.	Benefits of This Agreement	37
	 	 	 
	30.	Governing Law	37
	 	 	 
	31.	Severability	37
	 	 	 
	32.	Descriptive Headings, Etc	38
	 	 	 
	33.	Determinations and Actions by the Board	38
	 	 	 
	34.	Process to Seek Exemption	38
	 	 	 
	35.	Suspension of Exercisability or Exchangeability	40
	 	 	 
	36.	Effective Time	40
	 	 	 
	37.	Counterparts	40
	 	 	 
	38.	Force Majeure	40
	 	 	 
	Exhibits	 
	 	 
	Certificate of Designation of Series C Participating Preferred Stock	A-1
	 	 
	Form of Right Certificate	B-1
	 	 
	Summary of Rights to Purchase Preferred Stock	C-1

 

    ii 

     

    

 

RIGHTS AGREEMENT

 

This Rights Agreement, dated as of June 2, 2021
(this “Agreement”), is made and entered into by and between Star Equity Holdings, Inc., a Delaware corporation
(the “Company”), and American Stock Transfer & Trust Company, LLC, as Rights Agent (the “Rights
Agent”).

 

RECITALS:

 

WHEREAS, (i) the Company has generated Tax Benefits
(as hereinafter defined) for United States federal income tax purposes; (ii) the Company desires to avoid an “ownership change”
within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), and related
Treasury Regulations (as hereinafter defined) in order to preserve the ability to fully utilize such Tax Benefits; and (iii) in furtherance
of such objective, the Company desires to enter into this Agreement; and

 

WHEREAS, on June 2, 2021, the Board of Directors
of the Company (the “Board”) authorized and declared a dividend distribution of one right (a “Right”)
in respect of each of the Company’s Common Shares (as hereinafter defined) outstanding as of the Close of Business (as hereinafter
defined) on June 14, 2021 (the “Record Date”), each Right initially representing the right to purchase one one-thousandth
of a Preferred Share (as hereinafter defined), on the terms and subject to the conditions herein set forth, and further authorized and
directed the issuance of one Right (subject to adjustment as provided herein) with respect to each Common Share issued or delivered by
the Company (whether originally issued or delivered from the Company’s treasury) after the Record Date but prior to the earlier
of the Distribution Date (as hereinafter defined) and the Expiration Date (as hereinafter defined) or as provided in Section 22.

 

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

 

1.                 
Certain Definitions. For purposes of this Agreement, the following terms have the meanings indicated:

 

(a)              
“Acquiring Person” means any Person (other than the Company, any Related Person or any Exempt Person)
who or which, together with all Affiliates and Associates of such Person, is or becomes the Beneficial Owner of 4.99% or more of the then-outstanding
Common Shares; provided, however, that (i) any Person who would otherwise constitute an Acquiring Person as of 4:00 p.m.,
New York City time, on the date of this Agreement (the “Effective Time”), will not be deemed to be an Acquiring
Person for any purpose of this Agreement unless and until such time as (A) such Person or any Affiliate or Associate of such Person thereafter
becomes the Beneficial Owner of any additional Common Shares, other than (1) pursuant to any agreement or regular-way purchase order for
Common Shares that is in effect on or prior to the Effective Time and consummated in accordance with its terms after the Effective Time
or (2) as a result of a stock dividend, rights dividend, stock split or similar transaction effected by the Company in which all holders
of Common Shares are treated equally, or (B) any other Person who is the Beneficial Owner of Common Shares becomes an Affiliate or Associate
of such Person, provided that the exclusion in this clause (i) shall cease to apply with respect to any Person at such time as
such Person, together with all Affiliates and Associates of such Person, ceases to Beneficially Own 4.99% or more of the then-outstanding
Common Shares, (ii) a Person will not be deemed to have become an Acquiring Person solely as a result of a reduction in the number of
Common Shares outstanding unless and until such time as (A) such Person or any Affiliate or Associate of such Person thereafter becomes
the Beneficial Owner of any additional Common Shares, other than as a result of a stock dividend, rights dividend, stock split or similar
transaction effected by the Company in which all holders of Common Shares are treated equally, or (B) any other Person who is the Beneficial
Owner of Common Shares thereafter becomes an Affiliate or Associate of such Person, and in either such case, such Person, together with
all Affiliates and Associates of such Person, shall thereafter be the Beneficial Owner of 4.99% or more of the outstanding Common Shares
and (iii) a Person will not be deemed to have become an Acquiring Person solely as a result of an Exempt Transaction unless and until
such time as (A) such Person or any Affiliate or Associate of such Person thereafter becomes the Beneficial Owner of any additional Common
Shares, other than as a result of a stock dividend, rights dividend, stock split or similar transaction effected by the Company in which
all holders of Common Shares are treated equally, or (B) any other Person who is the Beneficial Owner of Common Shares thereafter becomes
an Affiliate or Associate of such Person, and in either such case, such Person, together with all Affiliates and Associates of such Person,
shall thereafter be the Beneficial Owner of 4.99% or more of the outstanding Common Shares. Notwithstanding the foregoing, if (1) the
Board determines in good faith that a Person who would otherwise be an “Acquiring Person” as defined pursuant to the foregoing
provisions of this Section 1(a), has become such inadvertently and (2) such Person has divested, divests as promptly as practicable or
agrees in writing with the Company to divest, a sufficient number of Common Shares so that such Person is not or would no longer be an
“Acquiring Person” as defined pursuant to the foregoing provisions of this Section 1(a), then such Person shall not be deemed
to be an “Acquiring Person” for any purposes of this Agreement.

 

     

     

    

 

(b)              
“Affiliate” and “Associate” mean, with respect to any Person, any other Person
(other than a Related Person or an Exempt Person) whose Common Shares would be deemed constructively owned by such first Person, owned
by a single “entity” as defined in Section 1.382-3(a)(1) of the Treasury Regulations, or otherwise aggregated with Common
Shares owned by such first Person pursuant to the provisions of the Code or the Treasury Regulations, provided, however,
that a Person will not be deemed to be the Affiliate or Associate of another Person solely because either or both Persons are or were
directors of the Company.

 

(c)              
“Agreement” has the meaning set forth in the Preamble to this Agreement.

 

(d)              
A Person will be deemed the “Beneficial Owner” of, and to “Beneficially Own,”
any securities:

 

(i)                
which such Person actually owns, directly or indirectly, or would be deemed to actually or constructively own pursuant to Section
382 of the Code and the Treasury Regulations promulgated thereunder (including any coordinated acquisition of securities by any Persons
who have a formal or an informal understanding with respect to such acquisition (to the extent that ownership of such securities would
be attributed to such Persons under Section 382 of the Code and the Treasury Regulations promulgated thereunder));

 

     2

     

    

 

(ii)             
which such Person or any of such Person’s Affiliates or Associates beneficially owns, directly or indirectly, within the
meaning of Rules 13d-3 or 13d-5 promulgated under the Exchange Act, as in effect on the date of this Agreement; provided, however,
that notwithstanding anything to the contrary contained herein, a Person shall not be deemed the Beneficial Owner of, or to Beneficially
Own, any stock options, shares, restricted shares or restricted stock units granted by the Board or a committee thereof to such Person
in his or her capacity as an officer, director, employee or consultant of the Company;

 

(iii)           
which such Person or any of such Person’s Affiliates or Associates has (A) the right or ability to vote, cause to be voted
or control or direct the voting of pursuant to any agreement, arrangement or understanding, whether or not in writing; provided,
however, that a Person shall not be deemed the Beneficial Owner of, or to Beneficially Own, any security if the agreement, arrangement
or understanding to vote such security (1) arises solely from a revocable proxy or consent given to such Person in response to a public
proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange
Act and (2) would not also then be reportable on a statement on Schedule 13D or Schedule 13G under the Exchange Act (or any comparable
or successor report), or (B) whether or not in writing, the right or the obligation to become the Beneficial Owner (whether such right
is exercisable or such obligation is required to be performed immediately or only after the passage of time, the occurrence of conditions
or the satisfaction of regulatory requirements) pursuant to any agreement, arrangement or understanding (other than customary agreements
with and between underwriters and selling group members with respect to a bona fide public offering of securities), or upon the exercise
of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise, through conversion of a security,
pursuant to the power to revoke a trust, discretionary account or similar arrangement, pursuant to the power to terminate a repurchase
or similar so-called “stock-borrowing” agreement or arrangement, or pursuant to the automatic termination of a trust, discretionary
account or similar arrangement; provided, however, that a Person shall not be deemed to be the Beneficial Owner of, or to
Beneficially Own, securities tendered pursuant to a tender or an exchange offer made pursuant to, and in accordance with, the applicable
rules and regulations promulgated under the Exchange Act until such tendered securities are accepted for purchase or exchange;

 

(iv)            
which are Beneficially Owned (within the meaning of the preceding subsections of this Section 1(d)), directly or indirectly, by
any other Person with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding,
whether or not in writing, for the purpose of acquiring, holding, voting or disposing of any securities of the Company; or

 

(v)              
which are the subject of, or the reference securities for, or that underlie, any Derivative Position of such Person or any of such
Person’s Affiliates or Associates, with the number of Common Shares deemed Beneficially Owned in respect of a Derivative Position
being the notional or other number of Common Shares in respect of such Derivative Position that is specified in (A) one or more filings
with the SEC by such Person or any of such Person’s Affiliates or Associates or (B) the documentation evidencing such Derivative
Position as the basis upon which the value or settlement amount of such Derivative Position, or the opportunity of the holder of such
Derivative Position to profit or share in any profit, is to be calculated in whole or in part (whichever of (A) or (B) is greater), or
if no such number of Common Shares is specified in such filings or documentation (or such documentation is not available to the Board),
as determined by the Board in its reasonable discretion.

 

     3

     

    

 

(e)              
“Board” has the meaning set forth in the Recitals to this Agreement.

 

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

 

(g)              
“Close of Business” on any given date means 5:00 p.m., New York City time, on such date; provided,
however, that if such date is not a Business Day, it means 5:00 p.m., New York City time, on the next succeeding Business Day.

 

(h)              
“Code” has the meaning set forth in the Recitals to this Agreement.

 

(i)                
“Common Shares”, when used with reference to the Company, means the shares of common stock, par value
$0.0001 per share, of the Company; provided, however, that if the Company is the continuing or surviving corporation in
a transaction described in Section 13(a)(ii), “Common Shares”, when used with reference to the Company, means shares of the
capital stock or units of the equity interests with the greatest aggregate voting power of the Company. “Common Shares”, when
used with reference to any corporation or other legal entity other than the Company, including an Issuer, means shares of the capital
stock or units of the equity interests with the greatest aggregate voting power of such corporation or other legal entity.

 

(j)                
“Company” has the meaning set forth in the Preamble to this Agreement.

 

(k)              
“current market price” has the meaning set forth in Section 11(d)(i).

 

(l)                
“Derivative Position” means any option, warrant, convertible security, stock appreciation right, or other
security, contract right or derivative position or similar right (including any “swap” transaction with respect to any security,
other than a broad based market basket or index), whether or not presently exercisable, that has an exercise or a conversion privilege
or a settlement payment or mechanism at a price related to the value of the Common Shares or a value determined in whole or in part with
reference to, or derived in whole or in part from, the value of the Common Shares and that increases in value as the market price or value
of the Common Shares increases or that provides an opportunity, directly or indirectly, to profit or share in any profit derived from
any increase in the value of the Common Shares, in each case regardless of whether (i) it conveys any voting rights in such Common Shares
to any Person, (ii) it is required to be, or capable of being, settled through delivery of Common Shares or (iii) any Person (including
the holder of such Derivative Position) may have entered into other transactions that hedge its economic effect.

 

(m)            
“Distribution Date” means the earlier of: (i) the Close of Business on the tenth calendar day following
the Share Acquisition Date (or, if the tenth calendar day following the Share Acquisition Date occurs before the Record Date, the Close
of Business on the Record Date), or (ii) the Close of Business on the tenth Business Day (or, unless the Distribution Date shall have
previously occurred, such later date as may be specified by the Board) after the commencement of a tender or an exchange offer by any
Person (other than the Company, any Related Person or any Exempt Person), if upon the consummation thereof such Person would be the Beneficial
Owner of 4.99% or more of the then-outstanding Common Shares.

 

     4

     

    

 

(n)              
“equivalent common shares” has the meaning set forth in Section 11(a)(iii).

 

(o)              
“equivalent preferred shares” has the meaning set forth in Section 11(a)(iii).

 

(p)              
“Effective Time” has the meaning set forth in Section 1(a).

 

(q)              
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(r)               
“Exchange Ratio” has the meaning set forth in Section 24(a).

 

(s)               
“Exemption Request” has the meaning set forth in Section 34(a).

 

(t)                
“Exempt Person” means a Person whose Beneficial Ownership (together with all Affiliates and Associates
of such Person) of 4.99% or more of the then-outstanding Common Shares will not, as determined by the Board in its sole discretion, jeopardize
or endanger the availability to the Company of any income tax benefit, and only for so long as such Person complies with any limitations
or conditions required by the Board in making such determination, provided, however, that such a Person will cease to be
an Exempt Person if the Board makes a contrary determination in its sole discretion with respect to the effect of such Person’s
Beneficial Ownership (together with all Affiliates and Associates of such Person), regardless of the reason for such contrary determination.

 

(u)              
“Exempt Transaction” means any transaction that the Board determines, in its sole discretion, is exempt
for purposes of this Agreement.

 

(v)              
“Exercise Value” has the meaning set forth in Section 11(a)(iii).

 

(w)            
“Expiration Date” means the earliest of (i) the Close of Business on June 2, 2024, which is the third
anniversary of the date on which the Board authorized and declared a dividend distribution of the Rights, or such earlier date as of which
the Board determines that this Agreement is no longer necessary for the preservation of Tax Benefits, (ii) the time at which the Rights
are redeemed as provided in Section 23, (iii) the time at which all exercisable Rights are exchanged as provided in Section 24, (iv) the
Close of Business on the effective date of the repeal of Section 382 of the Code or any successor or replacement provision if the Board
determines that this Agreement is no longer necessary for the preservation of Tax Benefits, (v) the Close of Business on the first day
of a taxable year of the Company to which the Board determines that no Tax Benefits may be carried forward, and (vi) the Close of Business
on the first Business Day following the certification of the voting results of the Company’s 2021 annual meeting of stockholders,
if Stockholder Approval has not been obtained prior to such date.

 

(x)              
“Flip-in Event” means the event described in Section 11(a)(ii).

 

     5

     

    

 

(y)              
“Flip-over Event” means any event described in clauses (i), (ii) or (iii) of Section 13(a).

 

(z)              
“Issuer” has the meaning set forth in Section 13(b).

 

(aa)           
“Person” means any individual, firm, corporation, partnership, limited liability company, limited partnership,
trust or other entity, including any group thereof making a “coordinated acquisition” of shares or otherwise treated as an
“entity” within the meaning of Section 1.382-3(a)(1) of the Treasury Regulations, and includes any successor (by merger or
otherwise) of such entity, but will not include a Public Group (as such term is defined in Section 1.382.2T(f)(13) of the Treasury Regulations).

 

(bb)          
“Preferred Shares” means shares of Series C Participating Preferred Stock, par value $0.0001 per share,
of the Company having substantially the rights and preferences set forth in the form of Certificate of Designation of Series C Participating
Preferred Stock attached as Exhibit A.

 

(cc)           
“Purchase Price” means initially $12.00 per one one-thousandth of a Preferred Share, subject to adjustment
from time to time as provided in this Agreement.

 

(dd)          
“Record Date” has the meaning set forth in the Recitals to this Agreement.

 

(ee)           
“Redemption Price” means $0.0001 per Right, subject to adjustment by resolution of the Board to reflect
any stock split, stock dividend or similar transaction occurring after the Record Date.

 

(ff)             
“Related Person” means (i) any Subsidiary of the Company or (ii) any employee benefit or stock ownership
plan of the Company or of any Subsidiary of the Company or any entity holding Common Shares for or pursuant to the terms of any such plan.

 

(gg)          
“Requesting Person” has the meaning set forth in Section 34(a).

 

(hh)          
“Right” has the meaning set forth in the Recitals to this Agreement.

 

(ii)             
“Right Certificates” means certificates evidencing the Rights, in substantially the form attached as
Exhibit B.

 

(jj)             
“Rights Agent” means American Stock Transfer & Trust Company, LLC, unless and until a successor Rights
Agent has become such pursuant to the terms of this Agreement, and thereafter, “Rights Agent” means such successor Rights
Agent.

 

(kk)          
“Securities Act” means the Securities Act of 1933, as amended.

 

(ll)             
“SEC” means the U.S. Securities and Exchange Commission.

 

(mm)     
“Share Acquisition Date” means the first date of public announcement by the Company or an Acquiring Person
(by press release, filing made with the SEC or otherwise) that an Acquiring Person has become such or that discloses information that
reveals the existence of an Acquiring Person.

 

     6

     

    

 

(nn)          
“Stockholder Approval” means the approval of this Agreement by the affirmative vote of the holders of
a majority of the voting power of the outstanding Common Shares of the Company entitled to vote (excluding the vote of any Acquiring Person)
that are present in person or represented by proxy and actually voted on the proposal to approve this Agreement, at a duly called meeting
of stockholders of the Company (or any adjournment or postponement thereof) at which a quorum is present.

 

(oo)          
“Subsidiary”, when used with reference to any Person, means any corporation or other legal entity of
which a majority of the voting power of the voting equity securities or equity interests is owned, directly or indirectly, by such Person;
provided, however, that for purposes of Section 13(b), “Subsidiary”, when used with reference to any Person,
means any corporation or other legal entity of which at least 20% of the voting power of the voting equity securities or equity interests
is owned, directly or indirectly, by such Person.

 

(pp)          
“Summary of Rights” has the meaning set forth in Section 3(a).

 

(qq)          
“Tax Benefits” means the net operating loss carryovers, capital loss carryovers, general business credit
carryovers, alternative minimum tax credit carryovers and foreign tax credit carryovers, as well as any “net unrealized built-in
loss” within the meaning of Section 382 of the Code or any successor or replacement provision, of the Company or any direct or indirect
subsidiary thereof.

 

(rr)             
“Trading Day” means any day on which the principal national securities exchange or quotation system on
which the Common Shares are listed or admitted to trading is open for the transaction of business or, if the Common Shares are not listed
or admitted to trading on any national securities exchange or quotation system, a Business Day.

 

(ss)            
“Treasury Regulations” means final, temporary and proposed income tax regulations promulgated under the
Code, including any amendments thereto.

 

(tt)             
“Triggering Event” means any Flip-in Event or Flip-over Event.

 

(uu)          
“Trust” has the meaning set forth in Section 24(a).

 

(vv)          
“Trust Agreement” has the meaning set forth in Section 24(a).

 

2.                 
Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as rights agent for the Company in accordance
with the express terms and conditions of this Agreement (and no implied terms and conditions), and the Rights Agent hereby accepts such
appointment. The Company may from time to time appoint co-rights agents as it may deem necessary or desirable, upon 10 days’ prior
written notice to the Rights Agent, setting forth the respective duties of the Rights Agent and any co-rights agent. In the event that
the Company appoints one or more co-rights agents, the respective duties of the Rights Agent and any co-rights agent(s) shall be as the
Company shall determine and the Company shall provide written notice thereof to the Rights Agent. The Rights Agent shall have no duty
to supervise, and shall in no event be liable for, the acts or omissions of any such co-rights agent.

 

     7

     

    

 

3.                 
Issue of Right Certificates. (a) Until the Distribution Date, (i) the Rights will be evidenced by the certificates
representing Common Shares registered in the names of the record holders thereof or, in the case of uncertificated Common Shares registered
in book entry form, by notation in accounts reflecting the ownership of such Common Shares (which certificates and uncertificated Common
Shares, as applicable, will also be deemed to be Right Certificates), (ii) the Rights will be transferable only in connection with the
transfer of the underlying Common Shares, and (iii) the transfer of any Common Shares in respect of which Rights have been issued will
also constitute the transfer of the Rights associated with such Common Shares. On the Record Date, or as soon as practicable thereafter,
the Company will send a copy of the Summary of Rights to Purchase Preferred Stock in substantially the form attached as Exhibit C
(the “Summary of Rights”), by first-class mail, postage-prepaid or by such means as may be selected by the Company,
to each record holder of Common Shares as of the Close of Business on the Record Date (other than any Acquiring Person or any Associate
or Affiliate of any Acquiring Person), at the address of such holder shown on the records of the Company or the transfer books of the
transfer agent for the Common Shares. With respect to certificates for Common Shares outstanding as of the Record Date, until the Distribution
Date, the Rights will be evidenced by such certificates registered in the names of the holders thereof, together with the Summary of Rights.

 

(b)              
Rights will be issued by the Company in respect of all Common Shares (other than Common Shares issued upon the exercise or exchange
of any Right) issued or delivered by the Company (whether originally issued or delivered from the Company’s treasury) after the
Record Date but prior to the earlier of the Distribution Date and the Expiration Date. Certificates evidencing such Common Shares will
have stamped on, impressed on, printed on, written on, or otherwise affixed to them the following legend, or such similar legend in substantially
the form as follows, as the Company may deem appropriate and as is not inconsistent with the provisions of this Agreement, or as may be
required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange or quotation system on which the Common Shares may from time to time be listed or quoted, or to conform to usage:

 

THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF
TO CERTAIN RIGHTS AS SET FORTH IN A RIGHTS AGREEMENT BETWEEN STAR EQUITY HOLDINGS, INC. AND AMERICAN STOCK TRANSFER & TRUST COMPANY,
LLC (OR ANY SUCCESSOR RIGHTS AGENT), AS RIGHTS AGENT, DATED AS OF JUNE 2, 2021 (AS IT MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME,
THE “RIGHTS AGREEMENT”), THE TERMS OF WHICH ARE HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH IS ON FILE AT
THE PRINCIPAL EXECUTIVE OFFICES OF STAR EQUITY HOLDINGS, INC. THE RIGHTS ARE NOT EXERCISABLE PRIOR TO THE OCCURRENCE OF CERTAIN EVENTS
AS SPECIFIED IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, SUCH RIGHTS MAY BE REDEEMED,
MAY BE EXCHANGED, MAY EXPIRE, MAY BE AMENDED, OR MAY BE EVIDENCED BY SEPARATE CERTIFICATES AND NO LONGER BE EVIDENCED BY THIS CERTIFICATE.
STAR EQUITY HOLDINGS, INC. WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF THE RIGHTS AGREEMENT, AS IN EFFECT ON THE DATE OF MAILING,
WITHOUT CHARGE, PROMPTLY AFTER ITS RECEIPT OF A WRITTEN REQUEST THEREFOR. UNDER CERTAIN CIRCUMSTANCES AS SET FORTH IN THE RIGHTS AGREEMENT,
RIGHTS THAT ARE OR WERE BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS
ARE DEFINED IN THE RIGHTS AGREEMENT) MAY BECOME NULL AND VOID.

 

     8

     

    

 

With respect to any uncertificated Common Shares, a legend in substantially
similar form will be included in a notice to the record holder of such shares in accordance with applicable law. Notwithstanding the provisions
of this Section, neither the omission of a legend nor the failure to deliver the notice of such legend required hereby shall affect the
enforceability of any part of this Agreement or the rights of any holder of Rights.

 

(c)              
Any Right Certificate issued pursuant to this Section 3 that represents Rights Beneficially Owned by an Acquiring Person or any
Associate or Affiliate thereof and any Right Certificate issued at any time upon the transfer of any Rights to an Acquiring Person or
any Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate or Affiliate and any Right Certificate issued
pursuant to Section 6 or 11 hereof upon the transfer, exchange, replacement or adjustment of any other Right Certificate referred to in
this sentence, shall be subject to and contain the following legend, or such similar legend in substantially the form as follows, as the
Company may deem appropriate and as is not inconsistent with the provisions of this Agreement, or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the
Rights may from time to time be listed, or to conform to usage:

 

THE RIGHTS REPRESENTED BY THIS RIGHT CERTIFICATE ARE OR WERE
BENEFICIALLY OWNED BY A PERSON WHO WAS AN ACQUIRING PERSON OR AN AFFILIATE OR AN ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED
IN THE RIGHTS AGREEMENT). THIS RIGHT CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED
IN SECTION 11(A)(II) OR SECTION 13 OF THE RIGHTS AGREEMENT.

 

(d)              
As promptly as practicable after the Company has notified the Rights Agent of the occurrence of the Distribution Date as set forth
herein, the Company will prepare and execute, the Rights Agent will countersign and the Company will send or cause to be sent (or, the
Rights Agent will, if requested in writing to do so by the Company and provided with all necessary and relevant information and documentation,
in form and substance reasonably satisfactory to the Rights Agent, send), by first-class, insured, postage prepaid mail, to each record
holder of Common Shares as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the
Company or the transfer agent or registrar for such Common Shares, a Right Certificate evidencing one Right for each Common Share so held,
subject to adjustment as provided herein. As of, and after, the Distribution Date, the Rights will be evidenced solely by such Right Certificates.
The Company shall promptly notify the Rights Agent in writing upon the occurrence of the Distribution Date and, if such notification is
given orally, the Company shall confirm the same in writing within two Business Days.

 

     9

     

    

 

(e)              
In the event that the Company purchases or otherwise acquires any Common Shares after the Record Date but prior to the Distribution
Date, any Rights associated with such Common Shares will be deemed canceled and retired so that the Company will not be entitled to exercise
any Rights associated with the Common Shares so purchased or acquired.

 

4.                 
Form of Right Certificates. The Right Certificates (and the form of election to purchase and the form of assignment to be
printed on the reverse thereof) will be substantially in the form attached as Exhibit B with such changes and marks of identification
or designation, and such legends, summaries or endorsements printed thereon, as the Company may deem appropriate (but which will not affect
the rights, duties, liabilities, protections or responsibilities of the Rights Agent hereunder) and as are not inconsistent with the provisions
of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with
any rule or regulation of any stock exchange or quotation system on which the Rights may from time to time be listed or quoted, or to
conform to usage. Subject to the provisions of Section 22, the Right Certificates, whenever issued, on their face will entitle the holders
thereof to purchase such number of one one-thousandths of a Preferred Share as is set forth therein at the Purchase Price set forth therein,
but the Purchase Price, the number and kind of securities issuable upon the exercise of each Right and the number of Rights outstanding
will be subject to adjustment as provided herein.

 

5.                 
Countersignature and Registration. (a) The Right Certificates will be executed on behalf of the Company by its Chairman
of the Board, Chief Executive Officer, President or Chief Financial Officer, either manually or by facsimile signature, and will have
affixed thereto the Company’s seal or a facsimile thereof, which will be attested to by the Secretary or an Assistant Secretary
of the Company, either manually or by facsimile signature. The Right Certificates will be countersigned by an authorized signatory of
the Rights Agent, either manually or by facsimile signature, and will not be valid for any purpose unless so countersigned. In case any
officer of the Company who signed any of the Right Certificates ceases to be such an officer of the Company before countersignature by
the Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless, may be countersigned by the Rights Agent,
and issued and delivered by the Company with the same force and effect as though the person who signed such Right Certificates had not
ceased to be such an officer of the Company; and any Right Certificate may be signed on behalf of the Company by any person who, at the
actual date of the execution of such Right Certificate, is a proper officer of the Company to sign such Right Certificate, although at
the date of the execution of this Agreement any such person was not such an officer. In case any authorized signatory of the Rights Agent
who has countersigned any Right Certificate ceases to be an authorized signatory of the Rights Agent before issuance and delivery by the
Company, such Right Certificate, nevertheless, may be issued and delivered by the Company with the same force and effect as though the
person who countersigned such Right Certificate had not ceased to be an authorized signatory of the Rights Agent; and any Right Certificate
may be countersigned on behalf of the Rights Agent by any person who, at the actual date of the countersignature of such Right Certificate,
is properly authorized to countersign such Right Certificate, although at the date of the execution of this Rights Agreement any such
person was not so authorized.

 

     10

     

    

 

(b)              
Following the Distribution Date, upon receipt by the Rights Agent of notice to that effect and all other relevant information and
documentation as referred to in Section 3(d), the Rights Agent will keep or cause to be kept, at the office of the Rights Agent designated
for such purpose and at such other offices as may be required to comply with any applicable law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange or any quotation system on which the Rights may from time to time be listed
or quoted, books for registration and transfer of the Right Certificates issued hereunder. Such books will show the names and addresses
of the respective holders of the Right Certificates, the number of Rights evidenced on its face by each of the Right Certificates and
the date of each of the Right Certificates.

 

6.                 
Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.
(a) Subject to the provisions of Sections 7(d) and 14, at any time after the Close of Business on the Distribution Date and prior to the
Expiration Date, any Right Certificate or Right Certificates representing exercisable Rights may be transferred, split up, combined or
exchanged for another Right Certificate or Right Certificates, entitling the registered holder to purchase a like number of one one-thousandths
of a Preferred Share (or other securities, as the case may be) as the Right Certificate or Right Certificates surrendered then entitled
such holder (or former holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine or
exchange any such Right Certificate or Right Certificates must make such request in a writing delivered to the Rights Agent and must surrender
the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the office or offices of the Rights
Agent designated for such purpose, along with a signature guarantee (if required) and such other and further documentation as the Company
or the Rights Agent may reasonably request. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever
with respect to the transfer of any such surrendered Right Certificate until the registered holder has properly completed and duly signed
the certificate contained in the form of assignment on the reverse side of such Right Certificate and has provided such additional evidence,
as the Company or the Rights Agent may reasonably request, of the identity of the Beneficial Owner (or former Beneficial Owner), any Affiliates
or Associates of such Beneficial Owner, or of any other Person with which such Beneficial Owner or any of such Beneficial Owner’s
Affiliates or Associates has any agreement, arrangement or understanding (whether or not in writing) for the purpose of acquiring, holding,
voting or disposing of securities of the Company. Thereupon or as promptly as practicable thereafter, subject to the provisions of Sections
7(d) and 14, the Company will prepare, execute and deliver to the Rights Agent, and the Rights Agent will countersign and deliver to the
Person entitled thereto, a Right Certificate or Right Certificates, as the case may be, as so requested. Pursuant to this Agreement, the
Company or the Rights Agent may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection
with any transfer, split up, combination or exchange of Right Certificates. The Rights Agent will not have any duty or obligation to take
any action pursuant to any Section of this Agreement that requires the payment of such taxes and/or charges unless and until it is satisfied
that all such taxes and/or charges have been paid, and the Rights Agent shall promptly forward any such sum collected by it to the Company
or to such Persons as the Company may specify by written notice.

 

     11

     

    

 

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

 

7.                 
Exercise of Rights; Purchase Price; Expiration Date of Rights; Partial Exercise; Information Concerning Ownership. (a) The
registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein), in whole or
in part, at any time after the Distribution Date and prior to the Expiration Date, upon the surrender of the Right Certificate, with the
form of election to purchase and the certificate on the reverse side thereof properly completed and duly executed (with such signature
duly guaranteed, if required), to the Rights Agent at the office or offices of the Rights Agent designated for such purpose, together
with payment in cash, in lawful money of the United States of America, by certified check or bank draft payable to the order of the Company,
equal to the sum of (i) the exercise price for the total number of securities as to which such surrendered Rights are exercised and (ii)
an amount equal to any applicable tax and/or charge required to be paid by the holder of such Right Certificate in accordance with the
provisions of Section 9(d). Except for those provisions herein that expressly survive the termination of this Agreement, this Agreement
shall terminate upon the earlier to occur of (x) the Expiration Date and (y) such time as all outstanding Rights have been exercised,
redeemed or exchanged pursuant to the terms of this Agreement.

 

(b)              
Except as otherwise provided herein, upon receipt of a Right Certificate representing exercisable Rights, with the form of election
to purchase properly completed and duly executed, accompanied by payment as described above, the Rights Agent will promptly (i) requisition
from any transfer agent of the Preferred Shares (or make available, if the Rights Agent is the transfer agent) certificates representing
the number of one one-thousandths of a Preferred Share to be purchased or, in the case of uncertificated shares or other securities, requisition
from any transfer agent therefor a notice setting forth such number of shares or other securities to be purchased for which registration
will be made on the stock transfer books of the Company (and the Company hereby irrevocably authorizes and directs its transfer agent
to comply with all such requests), or, if the Company elects to deposit Preferred Shares issuable upon the exercise of the Rights hereunder
with a depositary agent, requisition from the depositary agent depositary receipts representing such number of one one-thousandths of
a Preferred Share as are to be purchased (and the Company hereby irrevocably authorizes and directs such depositary agent to comply with
all such requests), (ii) after receipt of such certificates (or notices or depositary receipts, as the case may be), cause the same to
be delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names as may be designated
by such holder, (iii) when necessary to comply with this Agreement, requisition from the Company or any transfer agent therefor (or make
available, if the Rights Agent is the transfer agent) certificates representing the number of equivalent common shares (or, in the case
of uncertificated shares, a notice of the number of equivalent common shares for which registration will be made on the stock transfer
books of the Company) to be issued in lieu of the issuance of Common Shares in accordance with the provisions of Section 11(a)(iii), (iv)
when necessary to comply with this Agreement, after receipt of such certificates or notices, cause the same to be delivered to or upon
the order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder, (v)
when necessary to comply with this Agreement, requisition from the Company the amount of cash to be paid in lieu of the issuance of fractional
shares in accordance with the provisions of Section 14 or in lieu of the issuance of Common Shares in accordance with the provisions of
Section 11(a)(iii), (vi) when necessary to comply with this Agreement, after receipt, deliver such cash to or upon the order of the registered
holder of such Right Certificate, and (vii) when necessary to comply with this Agreement, deliver any due bill or other instrument provided
to the Rights Agent by the Company for delivery to the registered holder of such Right Certificate as provided in Section 11(l).

 

     12

     

    

 

(c)              
Except as otherwise provided herein, in case the registered holder of any Right Certificate properly exercises less than all of
the Rights evidenced thereby, the Company will prepare, execute and deliver a new Right Certificate evidencing the Rights remaining unexercised
and the Rights Agent will countersign and deliver such new Right Certificate to the registered holder of such Right Certificate or to
his, hers or its duly authorized assigns, subject to the provisions of Section 14.

 

(d)              
Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company will be obligated to undertake
any action with respect to any purported transfer, split up, combination or exchange of any Right Certificate pursuant to Section 6 or
exercise of a Right Certificate as set forth in this Section 7 unless the registered holder of such Right Certificate has (i) properly
completed and duly executed the certificate following the form of assignment or the form of election to purchase, as applicable, set forth
on the reverse side of the Right Certificate surrendered for such transfer, split up, combination, exchange or exercise and (ii) provided
such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the
Company or the Rights Agent may reasonably request.

 

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

 

     13

     

    

 

9.                 
Company Covenants Concerning Securities and Rights. The Company covenants and agrees that:

 

(a)              
It will cause to be reserved and kept available out of its authorized and unissued Preferred Shares or any Preferred Shares held
in its treasury, a number of Preferred Shares that will be sufficient to permit the exercise pursuant to Section 7 of all outstanding
Rights.

 

(b)              
So long as the Preferred Shares (and, following the occurrence of a Triggering Event, Common Shares and/or other securities) issuable
upon the exercise of the Rights may be listed on a national securities exchange or quoted on a quotation system, it will endeavor to cause,
from and after such time as the Rights become exercisable, all securities reserved for issuance upon the exercise of Rights to be listed
on such exchange or quoted on such system, upon official notice of issuance upon such exercise.

 

(c)              
It will take all such action as may be necessary to ensure that all Preferred Shares (and, following the occurrence of a Triggering
Event, Common Shares and/or other securities) delivered (or evidenced by registration on the stock transfer books of the Company) upon
the exercise of Rights, at the time of delivery of the certificates for (or registration of) such securities, will be (subject to payment
of the Purchase Price) duly authorized, validly issued, fully paid and non-assessable securities.

 

(d)              
It will pay when due and payable any and all transfer taxes and/or charges that may be payable in respect of the issuance or delivery
of the Right Certificates and of any certificates representing securities issued upon the exercise of Rights (or, if such securities are
uncertificated, the registration of such securities on the stock transfer books of the Company); provided, however, that
the Company will not be required to pay any transfer tax or charge which may be payable in respect of any transfer or delivery of Right
Certificates to a person other than, or the issuance or delivery of certificates or depositary receipts representing (or the registration
of) securities issued upon the exercise of Rights in a name other than that of, the registered holder of the Right Certificate evidencing
Rights surrendered for exercise, or to issue or deliver any certificates, depositary receipts or notices representing securities issued
upon the exercise of any Rights until any such tax or charge has been paid (any such tax or charge being payable by the holder of such
Right Certificate at the time of surrender) or until it has been established to the Company’s and the Rights Agent’s reasonable
satisfaction that no such tax or charge is due.

 

(e)              
If the Company, based on the advice of its counsel, determines that a registration statement should be filed under the Securities
Act with respect to the securities issuable upon exercise of the Rights, the Company will use all reasonable efforts (i) to file on an
appropriate form, as soon as practicable following the later of the Share Acquisition Date and the Distribution Date, a registration statement
under the Securities Act with respect to the securities issuable upon exercise of the Rights, (ii) to cause such registration statement
to become effective as soon as practicable after such filing, and (iii) to cause such registration statement to remain effective (with
a prospectus at all times meeting the requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are
no longer exercisable for such securities and (B) the Expiration Date. The Company will also take such action as may be appropriate under,
or to ensure compliance with, the applicable state securities or “blue sky” laws in connection with the exercisability of
the Rights. The Company may temporarily suspend, for a period of time after the date set forth in clause (i) of the first sentence of
this Section 9(e), the exercisability of the Rights in order to prepare and file such registration statement and to permit it to become
effective. Upon any such suspension, the Company will issue a public announcement stating that the exercisability of the Rights has been
temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect, in each case with prompt
written notice to the Rights Agent. In addition, if the Company determines that a registration statement should be filed under the Securities
Act or any state securities laws following the Distribution Date, the Company may temporarily suspend the exercisability of the Rights
in each relevant jurisdiction until such time as a registration statement has been declared effective and, upon any such suspension, the
Company will issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public
announcement at such time as the suspension is no longer in effect, in each case with prompt written notice to the Rights Agent. Notwithstanding
anything in this Agreement to the contrary, the Rights will not be exercisable in any jurisdiction if the requisite registration or qualification
in such jurisdiction has not been effected or the exercise of the Rights is not permitted under applicable law.

 

     14

     

    

 

(f)               
In the event that the Company is obligated to issue other securities of the Company and/or pay cash pursuant to Sections 11, 13,
14, 23 or 24, it will make all arrangements necessary so that such other securities and/or cash are available for distribution by the
Rights Agent, if and when appropriate.

 

10.             
Record Date. Each Person in whose name any certificate representing Preferred Shares (or Common Shares and/or other securities,
as the case may be) is issued (or in which such securities are registered upon the stock transfer books of the Company) upon the exercise
of Rights will for all purposes be deemed to have become the holder of record of the Preferred Shares (or Common Shares and/or other securities,
as the case may be) represented thereby on, and such certificate (or registration) will be dated, the date upon which the Right Certificate
evidencing such Rights was duly surrendered and payment of the Purchase Price and all applicable transfer taxes and/or charges was made;
provided, however, that if the date of such surrender and payment is a date upon which the transfer books of the Company
for the Preferred Shares (or Common Shares and/or other securities, as the case may be) are closed, such Person will be deemed to have
become the record holder of such securities on, and such certificate (or registration) will be dated, the next succeeding Business Day
on which the transfer books of the Company for the Preferred Shares (or Common Shares and/or other securities, as the case may be) are
open. Prior to the exercise of the Rights evidenced thereby, the holder of a Right Certificate will not be entitled to any rights of a
holder of any security for which the Rights are or may become exercisable, including, without limitation, the right to vote, to receive
dividends or other distributions, or to exercise any preemptive rights, and will not be entitled to receive any notice of any proceedings
of the Company, except as provided herein.

 

11.             
Adjustment of Purchase Price, Number and Kind of Securities or Number of Rights. The Purchase Price, the number and kind
of securities issuable upon the exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time
as provided in this Section 11.

 

     15

     

    

 

(a)              
(i) In the event that the Company at any time after the Record Date (A) declares a dividend on the Preferred Shares payable in
Preferred Shares, (B) subdivides the outstanding Preferred Shares, (C) combines the outstanding Preferred Shares into a smaller number
of Preferred Shares, or (D) issues any shares of its capital stock in a reclassification of the Preferred Shares (including any such reclassification
in connection with a consolidation or merger in which the Company is the continuing or surviving corporation), except as otherwise provided
in this Section 11(a), the Purchase Price in effect at the time of the record date for such dividend or of the effective date of such
subdivision, combination or reclassification and/or the number and/or kind of shares of capital stock issuable on such date upon the exercise
of a Right, will be proportionately adjusted so that the holder of any Right exercised after such time is entitled to receive upon payment
of the Purchase Price then in effect the aggregate number and kind of shares of capital stock which, if such Right had been exercised
immediately prior to such date and at a time when the transfer books of the Company for the Preferred Shares were open, the holder of
such Right would have owned upon such exercise (and, in the case of a reclassification, would have retained after giving effect to such
reclassification) and would have been entitled to receive by virtue of such dividend, subdivision, combination or reclassification; provided,
however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value
of the shares of capital stock issuable upon the exercise of one Right. If an event occurs which would require an adjustment under both
this Section 11(a)(i) and Section 11(a)(ii) or Section 13, the adjustment provided for in this Section 11(a)(i) will be in addition to,
and will be made prior to, any adjustment required pursuant to Section 11(a)(ii) or Section 13.

 

(ii)             
Subject to the provisions of Section 23 and Section 24, if any Person becomes an Acquiring Person, unless the event causing such
Person to become an Acquiring Person is a transaction set forth in Section 13(a) hereof, proper provision will be made so that each holder
of a Right, except as provided below, will thereafter have the right to receive, upon the exercise thereof in accordance with the terms
of this Agreement at an exercise price per Right equal to the product of the then-current Purchase Price multiplied by the number of one
one-thousandths of a Preferred Share for which a Right was exercisable immediately prior to the date of the occurrence of such Flip-in
Event (or, if any other Flip-in Event shall have previously occurred, the product of the then-current Purchase Price multiplied by the
number of one one-thousandths of a Preferred Share for which a Right was exercisable immediately prior to the date of the first occurrence
of a Flip-in Event), in lieu of Preferred Shares, such number of Common Shares as equals the result obtained by (x) multiplying the then-current
Purchase Price by the number of one one-thousandths of a Preferred Share for which a Right was exercisable immediately prior to the date
of the occurrence of such Flip-in Event (or, if any other Flip-in Event shall have previously occurred, multiplying the then-current Purchase
Price by the number of one one-thousandths of a Preferred Share for which a Right was exercisable immediately prior to the date of the
first occurrence of a Flip-in Event), and dividing that product by (y) 50% of the current per share market price of the Common Shares
(as determined pursuant to Section 11(d)) on the date of the occurrence of such Flip-in Event. Notwithstanding anything in this Agreement
to the contrary, from and after the first occurrence of a Flip-in Event, any Rights that are Beneficially Owned by (A) any Acquiring Person
(or any Affiliate or Associate of any Acquiring Person), (B) a transferee of any Acquiring Person (or any such Affiliate or Associate)
who becomes a transferee after the occurrence of a Flip-in Event, or (C) a transferee of any Acquiring Person (or any such Affiliate or
Associate) who became a transferee prior to or concurrently with the occurrence of a Flip-in Event pursuant to either (1) a transfer from
an Acquiring Person to holders of its equity securities or to any Person with whom it has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (2) a transfer which the Board has determined is part of a plan, an arrangement or understanding which
has the purpose or effect of avoiding the provisions of this Section 11(a)(ii), and any subsequent transferees of any of such Persons,
will be null and void without any further action and any holder of such Rights will thereafter have no rights whatsoever with respect
to such Rights under any provision of this Agreement. The Company will use all reasonable efforts to ensure that the provisions of this
Section 11(a)(ii) are complied with, but will have no liability to any holder of Right Certificates or any other Person as a result of
its failure to make any determinations with respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder. Upon
the occurrence of a Flip-in Event, no Right Certificate that represents Rights that are or have become null and void pursuant to the provisions
of this Section 11(a)(ii) will thereafter be issued pursuant to Section 3 or Section 6, and any Right Certificate delivered to the Rights
Agent that represents Rights that are or have become null and void pursuant to the provisions of this Section 11(a)(ii) will be canceled.
Upon the occurrence of a Flip-over Event, any Rights that shall not have been previously exercised pursuant to this Section 11(a)(ii)
shall thereafter be exercisable only pursuant to Section 13 and not pursuant to this Section 11(a)(ii).

 

     16

     

    

 

(iii)           
Upon the occurrence of a Flip-in Event, if there are not sufficient Common Shares authorized but unissued or issued but not outstanding
to permit the issuance of all Common Shares issuable in accordance with Section 11(a)(ii) upon the exercise of a Right, the Board will
use its best efforts to promptly authorize and, subject to the provisions of Section 9(e), make available for issuance additional Common
Shares or other equity securities of the Company having equivalent voting rights and an equivalent value (as determined in good faith
by the Board) to the Common Shares (for purposes of this Section 11(a)(iii), “equivalent common shares”). In
the event that equivalent common shares are so authorized, upon the exercise of a Right in accordance with the provisions of Section 7,
the registered holder will be entitled to receive (A) Common Shares, to the extent any are available, and (B) a number of equivalent common
shares, which the Board has determined in good faith to have a value equivalent to the excess of (x) the aggregate current per share market
value on the date of the occurrence of the most recent Flip-in Event of all Common Shares issuable in accordance with Section 11(a)(ii)
upon the exercise of a Right (the “Exercise Value”) over (y) the aggregate current per share market value on
the date of the occurrence of the most recent Flip-in Event of any Common Shares available for issuance upon the exercise of such Right;
provided, however, that if at any time after 90 calendar days after the latest of the Share Acquisition Date, the Distribution
Date and the date of the occurrence of the most recent Flip-in Event, there are not sufficient Common Shares and/or equivalent common
shares available for issuance upon the exercise of a Right, then the Company will be obligated to deliver, upon the surrender of such
Right and without requiring payment of the Purchase Price, Common Shares (to the extent available), equivalent common shares (to the extent
available) and then cash (to the extent permitted by applicable law and any agreements or instruments to which the Company is a party
in effect immediately prior to the Share Acquisition Date), which securities and cash have an aggregate value equal to the excess of (1)
the Exercise Value over (2) the product of the then-current Purchase Price multiplied by the number of one one-thousandths of a Preferred
Share for which a Right was exercisable immediately prior to the date of the occurrence of the most recent Flip-in Event (or, if any other
Flip-in Event shall have previously occurred, the product of the then-current Purchase Price multiplied by the number of one one-thousandths
of a Preferred Share for which a Right would have been exercisable immediately prior to the date of the occurrence of such Flip-in Event
if no other Flip-in Event had previously occurred). To the extent that any legal or contractual restrictions prevent the Company from
paying the full amount of cash payable in accordance with the foregoing sentence, the Company will pay to holders of the Rights as to
which such payments are being made all amounts which are not then restricted on a pro rata basis and will continue to make payments on
a pro rata basis as promptly as funds become available until the full amount due to each such holder of Rights has been paid.

 

     17

     

    

 

(b)              
In the event that the Company fixes a record date for the issuance of rights, options or warrants to all holders of Preferred Shares
entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Shares (or
securities having equivalent rights, privileges and preferences as the Preferred Shares (for purposes of this Section 11(b), “equivalent
preferred shares”)) or securities convertible into Preferred Shares or equivalent preferred shares at a price per Preferred
Share or equivalent preferred share (or having a conversion price per share, if a security convertible into Preferred Shares or equivalent
preferred shares) less than the current per share market price of the Preferred Shares (as determined pursuant to Section 11(d)) on such
record date, the Purchase Price to be in effect after such record date will be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, the numerator of which is the number of Preferred Shares outstanding on such record
date plus the number of Preferred Shares which the aggregate offering price of the total number of Preferred Shares and/or equivalent
preferred shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would
purchase at such current per share market price, and the denominator of which is the number of Preferred Shares outstanding on such record
date plus the number of additional Preferred Shares and/or equivalent preferred shares to be offered for subscription or purchase (or
into which the convertible securities so to be offered are initially convertible); provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock issuable
upon the exercise of one Right. In case such subscription price may be paid in a consideration part or all of which is in a form other
than cash, the value of such consideration will be as determined in good faith by the Board, which determination will be described in
a written statement filed with the Rights Agent. Preferred Shares owned by or held for the account of the Company will not be deemed outstanding
for the purposes of any such computation. Such adjustment will be made successively whenever such a record date is fixed, and in the event
that such rights, options or warrants are not so issued, the Purchase Price will be adjusted to be the Purchase Price which would then
be in effect if such record date had not been fixed.

 

(c)              
In the event that the Company fixes a record date for the making of a distribution to all holders of Preferred Shares (including
any such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation)
of evidences of indebtedness, cash (other than a regular periodic cash dividend), assets, stock (other than a dividend payable in Preferred
Shares) or subscription rights, options or warrants (excluding those referred to in Section 11(b)), the Purchase Price to be in effect
after such record date will be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which is the current per share market price of the Preferred Shares (as determined pursuant to Section 11(d)) on such
record date or, if earlier, the date on which the Preferred Shares begin to trade on an ex-dividend or when issued basis for such distribution,
less the fair market value (as determined in good faith by the Board, which determination will be described in a written statement filed
with the Rights Agent) of the portion of the evidences of indebtedness, cash, assets or stock so to be distributed or of such subscription
rights, options or warrants applicable to one Preferred Share, and the denominator of which is such current per share market price of
the Preferred Shares; provided, however, that in no event shall the consideration to be paid upon the exercise of one Right
be less than the aggregate par value of the shares of capital stock issuable upon the exercise of one Right. Such adjustments will be
made successively whenever such a record date is fixed; and in the event that such distribution is not so made, the Purchase Price will
again be adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed.

 

     18

     

    

 

(d)              
(i) For the purposes of any computation hereunder, the “current per share market price” of Common Shares
on any date will be deemed to be the average of the daily closing prices per share of such Common Shares for the 30 consecutive Trading
Days immediately prior to but not including such date; provided, however, that in the event that the current per share market
price of the Common Shares is determined during a period following the announcement by the issuer of such Common Shares of (A) a dividend
or distribution on such Common Shares payable in such Common Shares or securities convertible into such Common Shares (other than the
Rights) or (B) any subdivision, combination or reclassification of such Common Shares, and prior to the expiration of 30 Trading Days
after but not including the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or
reclassification, then, and in each such case, the current per share market price will be appropriately adjusted to take into account
ex-dividend trading or to reflect the current per share market price per equivalent common share. The closing price for each day will
be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices,
regular way, in either case as reported in the principal consolidated quotation system with respect to securities listed or admitted to
trading on The NASDAQ Stock Market LLC or, if the Common Shares are not listed or admitted to trading on The NASDAQ Stock Market LLC,
as reported in the principal consolidated quotation system with respect to securities listed on the principal national securities exchange
on which the Common Shares are listed or admitted to trading or, if the Common Shares are not listed or admitted to trading on any national
securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter
market, as reported by such market then in use, or, if on any such date the Common Shares are not quoted by any such organization, the
average of the closing bid and asked prices as furnished by a professional market maker making a market in the Common Shares selected
by the Board. If the Common Shares are not publicly held or not so listed or traded, or are not the subject of available bid and asked
quotes, “current per share market price” will mean the fair value per share as determined in good faith by the Board, which
determination will be described in a written statement filed with the Rights Agent.

 

(ii)             
For the purposes of any computation hereunder, the “current per share market price” of the Preferred
Shares will be determined in the same manner as set forth above for the Common Shares in Section 11(d)(i), other than the last sentence
thereof. If the current per share market price of the Preferred Shares cannot be determined in the manner provided above, the “current
per share market price” of the Preferred Shares will be conclusively deemed to be an amount equal to the current per share market
price of the Common Shares multiplied by 1,000 (as such number may be appropriately adjusted to reflect events, such as stock splits,
stock dividends, recapitalizations or similar transactions relating to the Common Shares occurring after the date of this Agreement).
If neither the Common Shares nor the Preferred Shares are publicly held or so listed or traded, or the subject of available bid and asked
quotes, “current per share market price” of the Preferred Shares will mean the fair value per share as determined in good
faith by the Board, which determination will be described in a written statement filed with the Rights Agent. For all purposes of this
Agreement, the current per share market price of one one-thousandth of a Preferred Share will be equal to the current per share market
price of one Preferred Share divided by 1,000.

 

     19

     

    

 

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

 

(f)               
If, as a result of an adjustment made pursuant to Section 11(a), the holder of any Right thereafter exercised becomes entitled
to receive any securities of the Company other than Preferred Shares, thereafter the number and/or kind of such other securities so receivable
upon the exercise of any Right (and/or the Purchase Price in respect thereof) will be subject to adjustment from time to time in a manner
and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares (and the Purchase Price in respect
thereof) contained in this Section 11, and the provisions of Sections 7, 9, 10, 13 and 14 with respect to the Preferred Shares (and the
Purchase Price in respect thereof) will apply on like terms to any such other securities (and the Purchase Price in respect thereof).

 

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

 

(h)              
Unless the Company has exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price pursuant
to Section 11(b) or Section 11(c), each Right outstanding immediately prior to the making of such adjustment will thereafter evidence
the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths of a Preferred Share (calculated to the nearest
one one-millionth of a Preferred Share) obtained by (i) multiplying (x) the number of one one-thousandths of a Preferred Share issuable
upon the exercise of a Right immediately prior to such adjustment of the Purchase Price by (y) the Purchase Price in effect immediately
prior to such adjustment of the Purchase Price and (ii) dividing the product so obtained by the Purchase Price in effect immediately after
such adjustment of the Purchase Price.

 

     20

     

    

 

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

 

(j)                
Without respect to any adjustment or change in the Purchase Price and/or the number and/or kind of securities issuable upon the
exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number
and kind of securities which were expressed in the initial Right Certificates issued hereunder.

 

(k)              
Before taking any action that would cause an adjustment reducing the Purchase Price below one one-thousandth of the then par value,
if any, of the Preferred Shares or below the then par value, if any, of any other securities of the Company issuable upon the exercise
of the Rights, the Company will take any corporate action which may, based on the advice of its counsel, be necessary in order that the
Company may validly and legally issue fully paid and non-assessable Preferred Shares or such other securities, as the case may be, at
such adjusted Purchase Price.

 

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

 

     21

     

    

 

(m)            
Notwithstanding anything in this Agreement to the contrary, the Company will be entitled to make such reductions in the Purchase
Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that in its good faith judgment the
Board determines to be advisable in order that any (i) consolidation or subdivision of the Preferred Shares, (ii) issuance wholly for
cash of Preferred Shares at less than the current per share market price therefor, (iii) issuance wholly for cash of Preferred Shares
or securities which by their terms are convertible into or exchangeable for Preferred Shares, (iv) stock dividends, or (v) issuance of
rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its Preferred Shares is not taxable
to such stockholders.

 

(n)              
Notwithstanding anything in this Agreement to the contrary, in the event that the Company at any time after the Record Date, but
prior to the Distribution Date (i) pays a dividend on the outstanding Common Shares payable in Common Shares, (ii) subdivides the outstanding
Common Shares, (iii) combines the outstanding Common Shares into a smaller number of shares, or (iv) issues any shares of its capital
stock in a reclassification of the outstanding Common Shares (including any such reclassification in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation), the number of Rights associated with each Common Share then outstanding,
or issued or delivered thereafter but prior to the Distribution Date, will be proportionately adjusted so that the number of Rights thereafter
associated with each Common Share following any such event equals the result obtained by multiplying the number of Rights associated with
each Common Share immediately prior to such event by a fraction, the numerator of which is the total number of Common Shares outstanding
immediately prior to the occurrence of the event and the denominator of which is the total number of Common Shares outstanding immediately
following the occurrence of such event. The adjustments provided for in this Section 11(n) will be made successively whenever such a dividend
is paid or such a subdivision, combination or reclassification is effected.

 

12.             
Certificate of Adjusted Purchase Price or Number of Securities. Whenever an adjustment is made as provided in Section 11
or Section 13, the Company will promptly (a) prepare a certificate setting forth such adjustment and a brief statement of the facts accounting
for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Preferred Shares and the Common Shares a copy
of such certificate, and (c) if such adjustment is made after the Distribution Date, mail a brief summary of such adjustment to each holder
of a Right Certificate in accordance with Section 26. The Rights Agent shall be fully protected in relying on any such certificate and
on any adjustments or statements therein contained and shall have no duty or liability with respect to, and shall not be deemed to have
knowledge of, any such adjustment or any such event unless and until it shall have received such a certificate.

 

13.             
Consolidation, Merger or Sale or Transfer of Assets or Earning Power. (a) In the event that, at any time after a Person
has become an Acquiring Person:

 

     22

     

    

 

(i)                
the Company consolidates with, or merges with or into, any other Person and the Company is not the continuing or surviving corporation
of such consolidation or merger; or

 

(ii)             
any Person consolidates with the Company, or merges with or into the Company, and the Company is the continuing or surviving corporation
of such merger or consolidation and, in connection with such merger or consolidation, all, or part, of the Common Shares are changed into
or exchanged for stock or other securities of any other Person or cash or any other property; or

 

(iii)           
the Company, directly or indirectly, sells or otherwise transfers (or one or more of its Subsidiaries sells or otherwise transfers),
in one or more transactions, assets or earning power (including, without limitation, securities creating any obligation on the part of
the Company and/or any of its Subsidiaries) representing in the aggregate more than 50% of the assets or earning power of the Company
and its Subsidiaries (taken as a whole) to any Person or Persons other than the Company or one or more of its wholly owned Subsidiaries;
then, and in each such case, proper provision will be made so that from and after the latest of the Distribution Date, the Share Acquisition
Date, and the date of the occurrence of such Flip-over Event: (A) each holder of a Right thereafter has the right to receive, upon the
exercise thereof in accordance with the terms of this Agreement at an exercise price per Right equal to the product of the then-current
Purchase Price multiplied by the number of one one-thousandths of a Preferred Share for which a Right was exercisable immediately prior
to the Share Acquisition Date, such number of duly authorized, validly issued, fully paid, non-assessable and freely tradeable Common
Shares of the Issuer, free and clear of any liens, encumbrances and other adverse claims and not subject to any rights of call or first
refusal, as equals the result obtained by (x) multiplying the then-current Purchase Price by the number of one one-thousandths of a Preferred
Share for which a Right is exercisable immediately prior to the Share Acquisition Date and dividing that product by (y) 50% of the current
per share market price of the Common Shares of the Issuer (as determined pursuant to Section 11(d)), on the date of the occurrence of
such Flip-over Event; (B) the Issuer will thereafter be liable for, and will assume, by virtue of the occurrence of such Flip-over Event,
all obligations and duties of the Company pursuant to this Agreement; (C) the term “Company” will thereafter
be deemed to refer to the Issuer; and (D) the Issuer will take such steps (including, without limitation, the reservation of a sufficient
number of its Common Shares to permit the exercise of all outstanding Rights) in connection with such consummation as may be necessary
to assure that the provisions hereof are thereafter applicable, as nearly as reasonably may be possible, in relation to its Common Shares
thereafter deliverable upon the exercise of the Rights.

 

(b)              
For the purposes of this Section 13, “Issuer” means (i) in the case of any Flip-over Event described
in Sections 13(a)(i) or (ii) above, the Person that is the continuing, surviving, resulting or acquiring Person (including the Company
as the continuing or surviving corporation of a transaction described in Section 13(a)(ii) above), and (ii) in the case of any Flip-over
Event described in Section 13(a)(iii) above, the Person that is the party receiving the greatest portion of the assets or earning power
(including, without limitation, securities creating any obligation on the part of the Company and/or any of its Subsidiaries) transferred
pursuant to such transaction or transactions; provided, however, that in any such case: (A) if (1) no class of equity security
of such Person is, at the time of such merger, consolidation or transaction and has been continuously over the preceding 12-month period,
registered pursuant to Section 12 of the Exchange Act, and (2) such Person is a Subsidiary, directly or indirectly, of another Person,
a class of equity security of which is and has been so registered, the term “Issuer” means such other Person; and (B) in case
such Person is a Subsidiary, directly or indirectly, of more than one Person, a class of equity security of two or more of which are and
have been so registered, the term “Issuer” means whichever of such Persons is the issuer of the equity security having the
greatest aggregate market value. Notwithstanding the foregoing, if the Issuer in any of the Flip-over Events listed above is not a corporation
or other legal entity having outstanding equity securities, then, and in each such case, (x) if the Issuer is directly or indirectly wholly
owned by a corporation or other legal entity having outstanding equity securities, then all references to Common Shares of the Issuer
will be deemed to be references to the Common Shares of the corporation or other legal entity having outstanding equity securities which
ultimately controls the Issuer, and (y) if there is no such corporation or other legal entity having outstanding equity securities, (I)
proper provision will be made so that the Issuer creates or otherwise makes available for purposes of the exercise of the Rights in accordance
with the terms of this Agreement, a kind or kinds of security or securities having a fair market value at least equal to the economic
value of the Common Shares which each holder of a Right would have been entitled to receive if the Issuer had been a corporation or other
legal entity having outstanding equity securities; and (II) all other provisions of this Agreement will apply to the issuer of such securities
as if such securities were Common Shares.

 

     23

     

    

 

(c)              
The Company will not consummate any Flip-over Event if (i) at the time of or immediately after such Flip-over Event, there are
or would be any rights, warrants, instruments or securities outstanding or any agreements or arrangements in effect which would eliminate
or substantially diminish the benefits intended to be afforded by the Rights, (ii) prior to, simultaneously with or immediately after
such Flip-over Event, the stockholders of the Person who constitutes, or would constitute, the Issuer for purposes of Section 13(a) shall
have received a distribution of Rights previously owned by such Person or any of its Affiliates or Associates, or (iii) the form or nature
of the organization of the Issuer would preclude or limit the exercisability of the Rights. In addition, the Company will not consummate
any Flip-over Event unless the Issuer has a sufficient number of authorized Common Shares (or other securities as contemplated in Section
13(b) above) which have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this
Section 13, and unless prior to such consummation the Company and the Issuer have executed and delivered to the Rights Agent a supplemental
agreement providing for the terms set forth in subsections (a) and (b) of this Section 13 and further providing that as promptly as practicable
after the consummation of any Flip-over Event, the Issuer will:

 

(A)            
if the Issuer, based on the advice of its counsel, determines that a registration statement should be filed under the Securities
Act, prepare and file a registration statement under the Securities Act with respect to the Rights and the securities issuable upon the
exercise of the Rights on an appropriate form, and use its best efforts to cause such registration statement to (1) become effective as
soon as practicable after such filing and (2) remain effective (with a prospectus at all times meeting the requirements of the Securities
Act) until the Expiration Date;

 

     24

     

    

 

(B)             
take all such action as may be appropriate under, or to ensure compliance with, the applicable state securities or “blue
sky” laws in connection with the exercisability of the Rights; and

 

(C)             
deliver to holders of the Rights historical financial statements for the Issuer and each of its affiliates which comply in all
respects with the requirements for registration on Form 10 under the Exchange Act.

 

(d)              
The provisions of this Section 13 will similarly apply to successive mergers or consolidations or sales or other transfers. In
the event that a Flip-over Event occurs at any time after the occurrence of a Flip-in Event, except for Rights that have become null and
void pursuant to Section 11(a)(ii), Rights that shall not have been previously exercised will cease to be exercisable in the manner provided
in Section 11(a)(ii) and will thereafter be exercisable in the manner provided in Section 13(a).

 

14.             
Fractional Rights and Fractional Securities. (a) The Company will not be required to issue fractions of Rights or to distribute
Right Certificates which evidence fractional Rights. In lieu of such fractional Rights, the Company will pay as promptly as practicable
to the registered holders of the Right Certificates with regard to which such fractional Rights otherwise would be issuable, an amount
in cash equal to the same fraction of the current market value of one Right. For the purposes of this Section 14(a), the current market
value of one Right is the closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights
otherwise would have been issuable. The closing price for any day is the last sale price, regular way, or, in case no such sale takes
place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal quotation
system with respect to securities listed or admitted to trading on The NASDAQ Stock Market LLC or, if the Rights are not listed or admitted
to trading on The NASDAQ Stock Market LLC, as reported in the principal quotation system with respect to securities listed on the principal
national securities exchange on which the Rights are listed or admitted to trading or, if the Rights are not listed or admitted to trading
on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by such market then in use, or, if on any such date the Rights are not quoted by any such organization,
the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by
the Board. If the Rights are not publicly held or are not so listed or traded, or are not the subject of available bid and asked quotes,
the current market value of one Right will mean the fair value thereof as determined in good faith by the Board, which determination will
be described in a written statement filed with the Rights Agent.

 

(b)              
The Company will not be required to issue fractions of Preferred Shares (other than fractions which are integral multiples of one
one-thousandth of a Preferred Share) upon the exercise of the Rights or to distribute certificates which evidence fractional Preferred
Shares or to register fractional Preferred Shares on the stock transfer books of the Company (other than fractions which are integral
multiples of one one-thousandth of a Preferred Share). Fractions of Preferred Shares in integral multiples of one one-thousandth of a
Preferred Share may, at the election of the Company, be evidenced by depositary receipts pursuant to an appropriate agreement between
the Company and a depositary selected by it, provided that such agreement provides that the holders of such depositary receipts
have all of the rights, privileges and preferences to which they are entitled as Beneficial Owners of the Preferred Shares represented
by such depositary receipts. In lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth of a Preferred
Share, the Company may pay to any Person to whom or which such fractional Preferred Shares would otherwise be issuable an amount in cash
equal to the same fraction of the current market value of one Preferred Share. For the purposes of this Section 14(b), the current market
value of one Preferred Share is the closing price of the Preferred Shares (as determined in the same manner as set forth for Common Shares
in the second sentence of Section 11(d)(i)) for the Trading Day immediately prior to the date of such exercise; provided, however,
that if the closing price of the Preferred Shares cannot be so determined, the closing price of the Preferred Shares for such Trading
Day will be conclusively deemed to be an amount equal to the closing price of the Common Shares (as determined pursuant to the second
sentence of Section 11(d)(i)) for such Trading Day multiplied by 1,000 (as such number may be appropriately adjusted to reflect events
such as stock splits, stock dividends, recapitalizations or similar transactions relating to the Common Shares occurring after the date
of this Agreement); provided further, however, that if neither the Common Shares nor the Preferred Shares are publicly held
or listed or admitted to trading on any national securities exchange, or the subject of available bid and asked quotes, the current market
value of one Preferred Share will mean the fair value thereof as determined in good faith by the Board, which determination will be described
in a written statement filed with the Rights Agent.

 

     25

     

    

 

(c)              
Following the occurrence of a Triggering Event, the Company will not be required to issue fractions of Common Shares or other securities
issuable upon the exercise or exchange of the Rights or to distribute certificates which evidence any such fractional securities or to
register any such fractional securities on the stock transfer books of the Company. In lieu of issuing any such fractional securities,
the Company may pay to any Person to whom or which such fractional securities would otherwise be issuable an amount in cash equal to the
same fraction of the current market value of one such security. For the purposes of this Section 14(c), the current market value of one
Common Share or other security issuable upon the exercise or exchange of the Rights is the closing price thereof (as determined in the
same manner as set forth for Common Shares in the second sentence of Section 11(d)(i)) for the Trading Day immediately prior to the date
of such exercise or exchange; provided, however, that if neither the Common Shares nor any such other securities are publicly
held or listed or admitted to trading on any national securities exchange, or the subject of available bid and asked quotes, the current
market value of one Common Share or such other security will mean the fair value thereof as determined in good faith by the Board, which
determination will mean the fair value thereof as will be described in a written statement filed with the Rights Agent.

 

(d)              
Whenever a payment of cash in lieu of fractional Rights, fractional Preferred Shares or fractional Common Shares is to be made
by the Rights Agent under this Agreement, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting
forth in reasonable detail the facts related to such payments and the prices and/or formulas utilized in calculating such payments, and
(ii) provide sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. The Rights Agent shall
be fully protected in relying upon such a certificate and shall have no duty with respect to, and shall not be deemed to have knowledge
of, any payment of cash in lieu of fractional Rights, fractional Preferred Shares or fractional Common Shares under this Agreement unless
and until the Rights Agent shall have received such a certificate and sufficient monies.

 

     26

     

    

 

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

 

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

 

(a)              
Prior to the Distribution Date, the Rights are transferable only in connection with the transfer of the Common Shares;

 

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

 

(c)              
The Company and the Rights Agent may deem and treat the person in whose name the Right Certificate (or, prior to the Distribution
Date, the associated Common Shares) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any
notations of ownership or writing on the Right Certificate or the associated Common Shares, if any, made by anyone other than the Company
or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent will be affected by any notice to the contrary;

 

(d)              
Such holder expressly waives any right to receive any fractional Rights and any fractional securities upon the exercise or exchange
of a Right, except as otherwise provided in Section 14.

 

(e)              
Notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent will have any liability to
any holder of a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of
any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a governmental,
regulatory or an administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any
governmental authority, prohibiting or otherwise restraining performance of such obligation; provided, however, that the
Company will use its best efforts to have any such order, decree or ruling lifted or otherwise overturned as soon as possible.

 

     27

     

    

 

17.             
Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right Certificate will be entitled to vote,
receive dividends, or be deemed for any purpose the holder of Preferred Shares or any other securities of the Company, which may at any
time be issuable upon the exercise of the Rights represented thereby, nor will anything contained herein or in any Right Certificate be
construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the Company or any right
to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent
to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as provided in Section 25),
or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Right Certificate shall have
been exercised in accordance with the provisions of this Agreement or exchanged pursuant to the provisions of Section 24.

 

18.             
Concerning the Rights Agent. (a) The Company will pay to the Rights Agent reasonable compensation for all services rendered
by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements
incurred in the preparation, negotiation, delivery, amendment, administration and execution of this Agreement and the exercise and performance
of its duties hereunder. The Company will also indemnify the Rights Agent and its affiliates, directors, employees. representatives and
advisors for, and hold them harmless against, any loss, liability, suit, action, proceeding, damage, judgment, fine, penalty, claim, demand,
settlement, cost or expense (including, without limitation, the reasonable fees and expenses of legal counsel), incurred without gross
negligence, bad faith or willful misconduct on the part of the Rights Agent (which gross negligence, bad faith or willful misconduct must
be determined by a final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction), for action taken, suffered
or omitted to be taken by the Rights Agent in connection with the acceptance and administration of this Agreement, including the costs
and expenses of defending against any claim of liability arising therefrom, directly or indirectly. The provisions provided for under
this Section 18 and Section 20 below shall survive the exercise or expiration of the Rights, the termination or expiration
of this Agreement and the resignation, replacement or removal of the Rights Agent. The costs and expenses incurred in enforcing this right
of indemnification shall be paid by the Company.

 

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

 

     28

     

    

 

19.             
Merger or Consolidation or Change of Name of Rights Agent. (a) Any Person into which the Rights Agent or any successor Rights
Agent may be merged or with which it may be consolidated, or any Person resulting from any merger or consolidation to which the Rights
Agent or any successor Rights Agent is a party, or any Person succeeding to the stockholder services business of the Rights Agent or any
successor Rights Agent, will be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or
any further act on the part of any of the parties hereto, provided that such Person would be eligible for appointment as a successor
Rights Agent under the provisions of Section 21. If at the time such successor Rights Agent succeeds to the agency created by this Agreement
any of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature
of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and if at that time any of the Right Certificates
shall not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor
Rights Agent or in the name of the successor Rights Agent; and in all such cases such Right Certificates will have the full force provided
in the Right Certificates and in this Agreement.

 

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

 

20.             
Duties of Rights Agent. The Rights Agent undertakes the duties and obligations expressly imposed by this Agreement upon
the following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, will
be bound:

 

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

 

(b)              
Whenever in the performance of its duties under this Agreement the Rights Agent deems it necessary or desirable that any fact or
matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence
in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed
by any one of the Chairman of the Board, the President, any Vice President, the Secretary or the Treasurer of the Company and delivered
to the Rights Agent, and such certificate will be full authorization to the Rights Agent for any action taken, suffered or omitted to
be taken by it under the provisions of this Agreement in reliance upon such certificate.

 

     29

     

    

 

(c)              
The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct (which gross negligence,
bad faith or willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a court of competent
jurisdiction). Any liability of the Rights Agent under this Agreement will be limited to the amount of annual fees paid by the Company
to the Rights Agent. Anything to the contrary notwithstanding, in no event will the Rights Agent be liable for special, punitive, indirect,
incidental or consequential loss or damages of any kind whatsoever (including, without limitation, lost profits), even if the Rights Agent
has been advised of the likelihood of such loss or damages. and regardless of the form of the action; and the Company agrees to indemnify
the Rights Agent and its affiliates, directors, employees, representatives and advisors and to hold them harmless to the fullest extent
permitted by law against any loss, liability or expense incurred as a result of claims for special, punitive, incidental, indirect or
consequential losses or damages of any kind whatsoever.

 

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

 

(e)              
The Rights Agent will not be under any responsibility or have any liability in respect of the validity of this Agreement or the
execution and delivery hereof (except the due execution and delivery hereof by the Rights Agent) or in respect of the validity or execution
of any Right Certificate (except its countersignature thereof); nor will it be liable or responsible for any breach by the Company of
any covenant contained in this Agreement or in any Right Certificate; nor will it be liable or responsible for any adjustment required
under the provisions of Sections 11 or 13 (including any adjustment which results in the Rights becoming null and void) or liable or responsible
for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment
(except with respect to the exercise of the Rights evidenced by the Right Certificates after actual notice of any such adjustment); nor
will it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any shares of
stock or other securities to be issued pursuant to this Agreement or any Right Certificate or as to whether any shares of stock or other
securities will, when issued, be duly authorized, validly issued, fully paid and non-assessable.

 

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

 

(g)              
The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder
from any one of the Chairman of the Board, the President, any Vice President, the Secretary or the Treasurer of the Company, and to apply
to such officers for advice or instructions in connection with its duties, and the Rights Agent will not be liable for any action taken,
suffered or omitted to be taken by it in accordance with instructions of any such officer(s). The Rights Agent will be fully authorized
and protected in relying upon instructions received by any such officer(s). The Rights Agent will not be held to have notice of any change
of authority of any person until its receipt of written notice thereof from the Company.

 

     30

     

    

 

(h)              
The Rights Agent and any stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in any of the Rights
or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract
with or lend money to the Company or otherwise act as fully and freely as though it were not the Rights Agent under this Agreement. Nothing
herein will preclude the Rights Agent (or its shareholders, affiliates, directors, officers or employees) from acting in any other capacity
for the Company or for any other Person.

 

(i)                
The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either
itself or by or through its attorneys or agents, and the Rights Agent will not be answerable or accountable for any act, default, neglect
or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct
in the absence of gross negligence, bad faith or willful misconduct in the selection and continued employment thereof (which gross negligence,
bad faith or willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a court of competent
jurisdiction). The Rights Agent will not be under any duty or responsibility to ensure compliance with any applicable federal or state
securities laws in connection with the issuance, transfer or exchange of the Right Certificates.

 

(j)                
If, with respect to any Right Certificate surrendered to the Rights Agent for exercise, transfer, split up, combination or exchange,
either (i) the certificate attached to the form of assignment or form of election to purchase, as the case may be, has either not been
completed or indicates an affirmative response to clause 1 or 2 thereof, or (ii) any other actual or suspected irregularity exists, the
Rights Agent will not take any further action with respect to such requested exercise, transfer, split up, combination or exchange without
first consulting with the Company, and will thereafter take further action with respect thereto only in accordance with the Company’s
written instructions.

 

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

 

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

 

21.             
Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under
this Agreement upon 60 calendar days’ notice in writing mailed to the Company in accordance with Section 26 hereof and, in the event
that the Rights Agent or one of its Affiliates is not also the transfer agent for the Company, to each transfer agent of the Preferred
Shares or the Common Shares, by first-class mail, postage prepaid, or nationally recognized overnight delivery. In the event that the
transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned
automatically and be discharged from its duties under this Agreement as of the effective date of such termination, and the Company shall
be responsible for sending any required notice. The Company may remove the Rights Agent or any successor Rights Agent upon 30 calendar
days’ notice in writing, mailed to the Rights Agent or such successor Rights Agent, as the case may be, and to each transfer agent
of the Preferred Shares and the Common Shares by registered or certified mail, and to the holders of the Right Certificates by first-class
mail. If the Rights Agent resigns or is removed or otherwise becomes incapable of acting, the Company will appoint a successor to the
Rights Agent. If the Company fails to make such appointment within a period of 90 calendar days after giving notice of such removal or
after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder
of a Right Certificate (who will, with such notice, submit his/her Right Certificate for inspection by the Company), then the registered
holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor
Rights Agent, whether appointed by the Company or by such a court, will be a corporation or other legal entity organized and doing business
under the laws of the United States, in good standing, which is authorized under such laws to exercise stockholder services powers and
is subject to supervision or examination by federal or state authority and which has, along with its Affiliates, at the time of its appointment
as Rights Agent a combined capital and surplus of at least $50 million. After its appointment, the successor Rights Agent will be vested
with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed;
but the predecessor Rights Agent will deliver to the successor Rights Agent any property at the time held by it hereunder, and will execute
and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment,
the Company will file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Preferred Shares and/or
the Common Shares, and mail a notice thereof in writing to the registered holders of the Right Certificates. Failure to give any notice
provided for in this Section 21, however, or any defect therein, will not affect the legality or validity of the resignation or removal
of the Rights Agent or the appointment of the successor Rights Agent, as the case may be.

 

     31

     

    

 

22.             
Issuance of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Right Certificates
to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by the
Board to reflect any adjustment or change in the Purchase Price per share and the number and/or kind of securities issuable upon the exercise
of the Rights made in accordance with the provisions of this Agreement. In addition, in connection with the issuance or sale by the Company
of Common Shares following the Distribution Date and prior to the Expiration Date, the Company (a) will, with respect to Common Shares
so issued or sold pursuant to the exercise, exchange or conversion of securities (other than the Rights) issued prior to the Distribution
Date which are exercisable or exchangeable for, or convertible into, Common Shares, and (b) may, in any other case, if deemed necessary,
appropriate or desirable by the Board, issue Right Certificates representing an equivalent number of Rights as would have been issued
in respect of such Common Shares if they had been issued or sold prior to the Distribution Date, as appropriately adjusted as provided
herein as if they had been so issued or sold; provided, however, that (i) no such Right Certificate will be issued if, and
to the extent that, in its good faith judgment the Board determines that the issuance of such Right Certificate could have a material
adverse tax consequence to the Company or to the Person to whom or which such Right Certificate otherwise would be issued and (ii) no
such Right Certificate will be issued if, and to the extent that, appropriate adjustment otherwise has been made in lieu of the issuance
thereof.

 

     32

     

    

 

23.             
Redemption. (a) The Board may, at its option, at any time prior to such time as any Person becomes an Acquiring Person,
redeem all but not less than all of the then-outstanding Rights at the Redemption Price. Any such redemption will be effective immediately
upon the action of the Board ordering the same, unless such action of the Board expressly provides that such redemption will be effective
at a subsequent time or upon the occurrence or nonoccurrence of one or more specified events (in which case such redemption will be effective
in accordance with the provisions of such action of the Board).

 

(b)              
Immediately upon the effectiveness of the redemption of the Rights as provided in Section 23(a), and without any further action
and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights will be
to receive the Redemption Price, without interest thereon. Promptly after the effectiveness of the redemption of the Rights as provided
in Section 23(a), the Company will publicly announce such redemption (with prompt written notice to the Rights Agent) and, within 10 calendar
days thereafter, will give notice of such redemption to the holders of the then-outstanding Rights by mailing such notice to all such
holders at their last addresses as they appear upon the registry books of the Company; provided, however, that the failure
to give, or any defect in, any such notice will not affect the validity of the redemption of the Rights. Any notice that is mailed in
the manner herein provided will be deemed given, whether or not the holder receives such notice. The notice of redemption mailed to the
holders of Rights will state the method by which the payment of the Redemption Price will be made. The Company may, at its option, pay
the Redemption Price in cash, Common Shares (based upon the current per share market price of the Common Shares (as determined pursuant
to Section 11(d)) at the time of such redemption), or any other form of consideration deemed appropriate by the Board (based upon the
fair market value of such other consideration, as determined by the Board in good faith) or any combination thereof. The Company may,
at its option, combine the payment of the Redemption Price with any other payment being made concurrently to the holders of Common Shares
and, to the extent that any such other payment is discretionary, may reduce the amount thereof on account of the concurrent payment of
the Redemption Price. If legal or contractual restrictions prevent the Company from paying the Redemption Price (in the form of consideration
deemed appropriate by the Board) at the time of such redemption, the Company will pay the Redemption Price, without interest, promptly
after such time as the Company ceases to be so prevented from paying the Redemption Price.

 

24.             
Exchange. (a) The Board may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part
of the then-outstanding and exercisable Rights (which will not include Rights that have become null and void pursuant to the provisions
of Section 11(a)(ii)) for Common Shares at an exchange ratio of two Common Shares per Right, appropriately adjusted to reflect any stock
split, stock dividend or similar transaction occurring after the Record Date (such exchange ratio being hereinafter referred to as the
“Exchange Ratio”). Any such exchange will be effective immediately upon the action of the Board ordering the
same, unless such action of the Board expressly provides that such exchange will be effective at a subsequent time or upon the occurrence
or nonoccurrence of one or more specified events (in which case such exchange will be effective in accordance with the provisions of such
action of the Board). Prior to effecting an exchange pursuant to this Section 24, the Board may direct the Company to enter into a Trust
Agreement in such form and with such terms as the Board shall then approve (the “Trust Agreement”). If the Board
so directs, the Company shall enter into the Trust Agreement and shall issue to the trust created by such agreement (the “Trust”)
all of the Common Shares issuable pursuant to the exchange, and all Persons entitled to receive Common Shares pursuant to the exchange
shall be entitled to receive such Common Shares (and any dividends or distributions made thereon after the date on which such shares are
deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the Trust Agreement.
Notwithstanding the foregoing, the Board will not be empowered to effect such exchange at any time after any Acquiring Person, who or
which, together with all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the then-outstanding
Common Shares.

 

     33

     

    

 

(b)              
Immediately upon the effectiveness of the exchange of any Rights as provided in Section 24(a), and without any further action and
without any notice, the right to exercise such Rights will terminate and the only right with respect to such Rights thereafter of the
holder of such Rights will be to receive that number of Common Shares equal to the number of such Rights held by such holder multiplied
by the Exchange Ratio. Promptly after the effectiveness of the exchange of any Rights as provided in Section 24(a), the Company will publicly
announce such exchange (with prompt written notice thereof also provided to the Rights Agent) and, within 10 calendar days thereafter,
will give notice of such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry books
of the Rights Agent; provided, however, that the failure to give, or any defect in, such notice will not affect the validity
of such exchange. Any notice that is mailed in the manner herein provided will be deemed given, whether or not the holder receives such
notice. Each such notice of exchange will state the method by which the exchange of the Common Shares for the Rights will be effected
and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange will be effected pro rata
based on the number of Rights (other than Rights which have become null and void pursuant to the provisions of Section 11(a)(ii)) held
by each holder of Rights.

 

(c)              
In any exchange pursuant to this Section 24, the Company, at its option, may substitute for any Common Share exchangeable for a
Right (i) equivalent common shares (as such term is used in Section 11(a)(iii)), (ii) cash, (iii) debt securities of the Company, (iv)
other assets, or (v) any combination of the foregoing, in any event having an aggregate value, as determined in good faith by the Board
(which determination will be described in a written statement filed with the Rights Agent), equal to the current market value of one Common
Share (as determined pursuant to Section 11(d)) on the Trading Day immediately preceding the date of the effectiveness of the exchange
pursuant to this Section 24.

 

25.             
Notice of Certain Events. (a) If after the Distribution Date the Company proposes (i) to pay any dividend payable in stock
of any class to the holders of Preferred Shares or to make any other distribution to the holders of Preferred Shares (other than a regular
periodic cash dividend), (ii) to offer to the holders of Preferred Shares rights, options or warrants to subscribe for or to purchase
any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification
of its Preferred Shares (other than a reclassification involving only the subdivision of outstanding Preferred Shares), (iv) to effect
any consolidation or merger into or with, or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect
any sale or other transfer), in one or more transactions, of assets or earning power (including, without limitation, securities creating
any obligation on the part of the Company and/or any of its Subsidiaries) representing more than 50% of the assets and earning power of
the Company and its Subsidiaries, taken as a whole, to any other Person or Persons other than the Company or one or more of its wholly
owned Subsidiaries, (v) to effect the liquidation, dissolution or winding up of the Company, or (vi) to declare or pay any dividend on
the Common Shares payable in Common Shares or to effect a subdivision, combination or reclassification of the Common Shares, then, in
each such case, the Company will give to the Rights Agent and each holder of a Right Certificate, to the extent feasible and in accordance
with Section 26 hereof, a notice of such proposed action, which specifies the record date for the purposes of such stock dividend, distribution
or offering of rights, options or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation,
dissolution or winding up is to take place and the date of participation therein by the holders of the Common Shares and/or Preferred
Shares, if any such date is to be fixed, and such notice will be so given, in the case of any action covered by clause (i) or (ii) above,
at least 10 calendar days prior to the record date for determining the holders of the Preferred Shares for the purposes of such action,
and, in the case of any such other action, at least 10 calendar days prior to the date of the taking of such proposed action or the date
of participation therein by the holders of the Common Shares and/or Preferred Shares, whichever is the earlier.

 

     34

     

    

 

(b)              
In case any Triggering Event occurs, then, in any such case, the Company will as soon as practicable thereafter give to the Rights
Agent and each holder of a Right Certificate, in accordance with Section 26 hereof, a notice in writing of the occurrence of such event,
which specifies the event and the consequences of the event to the holders of Rights.

 

(c)              
Notwithstanding anything in this Agreement to the contrary, prior to the Distribution Date, a press release issued with national
distribution or a filing by the Company with the SEC shall constitute sufficient notice to the holders of any Rights or of any Common
Shares for the purposes of this Agreement.

 

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

 

Star Equity Holdings, Inc.

53 Forest Ave.

Suite 101

Old Greenwich, Connecticut 06870

Attention: Corporate Secretary

 

     35

     

    

 

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

 

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, New York 11219

Attention: Stock Transfer Administration

 

With a copy to (which copy shall not constitute notice):

 

American Stock Transfer & Trust Company, LLC

48 Wall Street, 22nd Floor

New York, New York 10005

Attention: Legal Department

 

(c)              
Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right
Certificate (or, if prior to the Distribution Date, to the holder of any Common Shares) will be sufficiently given or made if sent in
writing by first-class mail, postage prepaid, or overnight delivery service, addressed to such holder at the address of such holder as
shown on the registry books of the Company.

 

27.             
Supplements and Amendments. Prior to the time at which any Person becomes an Acquiring Person, and subject to the penultimate
sentence of this Section 27, the Company may, in its sole and absolute discretion, and the Rights Agent will if the Company so directs,
supplement or amend any provision of this Agreement in any respect without the approval of any holders of the Rights or Common Shares.
At any time, and subject to the penultimate sentence of this Section 27, the Company may, and the Rights Agent will if the Company so
directs, supplement or amend this Agreement without the approval of any holders of the Rights or Common Shares in order (i) to cure any
ambiguity, (ii) to correct or supplement any provision contained herein which may be defective or inconsistent with any other provisions
herein, (iii) to shorten or lengthen any time period hereunder, or (iv) to supplement or amend the provisions hereunder in any manner
which the Company may deem desirable; provided, however, that, from and after the time any Person becomes an Acquiring Person,
no such supplement or amendment shall adversely affect the interests of the holders of Rights as such (other than an Acquiring Person
or an Affiliate or Associate of an Acquiring Person), and no such supplement or amendment shall cause the Rights again to become redeemable
or cause this Agreement again to become supplementable or amendable other than in accordance with the terms of this Section 27. Without
limiting the generality or effect of the foregoing, this Agreement may be supplemented or amended to provide for such voting powers for
the Rights and such procedures for the exercise thereof, if any, as the Board may determine to be appropriate. Notwithstanding anything
in this Agreement to the contrary, any supplement or amendment to this Agreement shall be evidenced by a writing signed by the Company
and the Rights Agent. Upon the delivery of a certificate from an appropriate officer of the Company which states that the proposed supplement
or amendment is in compliance with the terms of this Section 27, the Rights Agent will execute such supplement or amendment; provided,
however, that such supplement or amendment does not adversely affect the rights, duties, obligations or immunities of the Rights
Agent under this Agreement. Notwithstanding anything in this Agreement to the contrary, no supplement or amendment may be made which decreases
the stated Redemption Price to an amount less than $0.0001 per Right. Notwithstanding anything in this Agreement to the contrary, the
limitations on the ability of the Board to amend this Agreement set forth in this Section 27 shall not affect the power or ability of
the Board to take any other action that is consistent with its fiduciary duties under applicable Delaware law, including, without limitation,
accelerating or extending the Expiration Date or making any other amendment to this Agreement that is permitted by this Section 27 or
adopting a new stockholder rights agreement with such terms as the Board determines in its sole discretion to be appropriate.

 

     36

     

    

 

28.             
Successors; Certain Covenants. All of the covenants and provisions of this Agreement by or for the benefit of the Company
or the Rights Agent will be binding on and inure to the benefit of their respective successors and assigns hereunder.

 

29.             
Benefits of This Agreement. Nothing in this Agreement will be construed to give to any Person other than the Company, the
Rights Agent, and the registered holders of the Right Certificates (and, prior to the Distribution Date, the Common Shares) any legal
or equitable right, remedy or claim under this Agreement. This Agreement will be for the sole and exclusive benefit of the Company, the
Rights Agent, and the registered holders of the Right Certificates (or, prior to the Distribution Date, the Common Shares). The Company
and, by accepting the Rights hereunder, each holder of the Rights: (a) irrevocably submit to the exclusive jurisdiction of the Court of
Chancery of the State of Delaware, or, if such court shall lack subject matter jurisdiction, the United States District Court for the
District of Delaware, over any suit, action or proceeding arising out of or relating to this Agreement; (b) acknowledge that the forum
designated by this Section 29 has a reasonable relation to this Agreement and to such Persons’ relationship with one another; (c)
waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter have to personal jurisdiction or to
the laying of venue of any such suit, action or proceeding brought in any court referred to in this Section 29; (d) undertake not to commence
any action subject to this Agreement in any forum other than the forum described in this Section 29; and (e) agree that, to the fullest
extent permitted by applicable law, a final and non-appealable judgment in any such suit, action or proceeding brought in any such court
shall be conclusive and binding upon such Persons.

 

30.             
Governing Law. This Agreement, each Right and each Right Certificate issued hereunder will be deemed to be a contract made
under the internal substantive laws of the State of Delaware and for all purposes will be governed by and construed in accordance with
the internal substantive laws of such State applicable to contracts to be made and performed entirely within such State.

 

31.             
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
or other authority to be invalid, null and void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of
this Agreement will remain in full force and effect and will in no way be affected, impaired or invalidated; provided, however,
that nothing contained in this Section 31 will affect the ability of the Company under the provisions of Section 27 to supplement or amend
this Agreement to replace such invalid, null and void or unenforceable term, provision, covenant or restriction with a legal, valid and
enforceable term, provision, covenant or restriction; provided further, however, that if any such excluded or severed term,
provision, covenant or restriction adversely affects the rights, immunities, duties or obligations of the Rights Agent, then the Rights
Agent will be entitled to resign immediately upon written notice to the Company.

 

     37

     

    

 

32.             
Descriptive Headings, Etc. Descriptive headings of the several Sections of this Agreement are inserted for convenience only
and will not control or affect the meaning or construction of any of the provisions hereof. Unless otherwise expressly provided, references
herein to Articles, Sections and Exhibits are to Articles, Sections and Exhibits of or to this Agreement.

 

33.             
Determinations and Actions by the Board. (a) For all the purposes of this Agreement, any calculation of the number of Common
Shares outstanding at any particular time, including for the purpose of determining the particular percentage of such outstanding Common
Shares of which any Person is the Beneficial Owner, will be made in accordance with the provisions of Section 382 of the Code, or any
successor or replacement provision, and the Treasury Regulations promulgated thereunder. The Board will have the exclusive power and authority
to administer this Agreement and to exercise or refrain from exercising all rights and powers specifically granted to the Board or to
the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right and
power (i) to interpret the provisions of this Agreement (including, without limitation, Section 27, this Section 33 and other provisions
hereof relating to its powers or authority hereunder) and (ii) to make all determinations deemed necessary or advisable for the administration
of this Agreement (including, without limitation, any determination contemplated by Section 1(a) or any determination as to whether particular
Rights shall have become null and void). All such actions, calculations, interpretations and determinations (including, for the purpose
of clause (y) below, any omission with respect to any of the foregoing) which are done or made by the Board in good faith will (x) be
final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties and (y) not subject the
Board to any liability to any Person, including, without limitation, the Rights Agent and the holders of the Rights. The Rights Agent
is entitled always to assume the Board acted in good faith and shall be fully protected and incur no liability in reliance thereon.

 

(b)              
If at any time the Board determines that a Person has become an Acquiring Person, the Company will give written notice of such
determination, indicating the identity of such Person, to the Rights Agent promptly thereafter. Until such a notice is received by the
Rights Agent, the Rights Agent may presume conclusively for all purposes that no Person has become an Acquiring Person.

 

34.             
Process to Seek Exemption. (a) Any Person who desires to effect any transaction that might, if consummated, result in such
Person becoming the Beneficial Owner of 4.99% or more of the then-outstanding Common Shares (or, in the case of any Person who would otherwise
constitute an Acquiring Person as of the Effective Time but will not be deemed to be an Acquiring Person for any purpose of this Agreement
unless and until such time as provided in Section 1(a), any additional Common Shares) (a “Requesting Person”)
may, prior to the date of the transaction for which the Requesting Person is seeking a determination, request in writing that the Board
make a determination under this Agreement so that such Person would be deemed to be an “Exempt Person” for the purposes of
this Agreement or such transaction would be deemed to be an “Exempt Transaction” for the purposes of this Agreement (an “Exemption
Request”). Any Exemption Request must be delivered by overnight delivery service or first-class mail, postage prepaid, to
the Secretary of the Company at the Company’s principal executive office. Such Exemption Request will be deemed to have been made
when actually received by the Company. Any Exemption Request must include: (i) the name, address and telephone number of the Requesting
Person; (ii) the number and percentage of Common Shares then Beneficially Owned by the Requesting Person, together with all Affiliates
and Associates of the Requesting Person; (iii) a reasonably detailed description of the transaction or transactions by which the Requesting
Person would propose to acquire Beneficial Ownership of Common Shares, the maximum number and percentage of Common Shares that the Requesting
Person proposes to acquire and the proposed tax treatment thereof; and (iv) a commitment by the Requesting Person that such Requesting
Person will not acquire Beneficial Ownership of 4.99% or more of the then-outstanding Common Shares or, if such Requesting Person Beneficially
Owns 4.99% or more of the then-outstanding Common Shares, any additional Common Shares prior to such time as the Board has responded to,
or is deemed to have responded to, the Exemption Request pursuant to this Section 34. The Board will, in good faith, endeavor to respond
to any Exemption Request within 30 calendar days of receiving such Exemption Request; provided that the failure of the Board to
make a determination within such period will be deemed to constitute the denial by the Board of the Exemption Request. The Requesting
Person must respond promptly to reasonable and appropriate requests for additional information from the Company or the Board and its advisors
to assist the Board in making its determination. As a condition to making any determination requested pursuant to this Section 34(a),
the Board may, in its discretion, require (at the expense of the Requesting Person) a report from advisors selected by the Board to the
effect that the proposed transaction or transactions will not result in the application of any limitations on the use by the Company of
the Tax Benefits taking into account any and all other transactions that have been consummated prior to receipt of the Exemption Request,
any and all other proposed transactions that have been approved by the Board prior to its receipt of the Exemption Request and any such
other actual or proposed transactions involving Common Shares as the Board may require; provided that the Board may make the determination
requested in the Exemption Request notwithstanding the effect of the proposed transaction or transactions on the Tax Benefits if it determines
that such determination is in the best interests of the Company. The Board may impose any conditions that it deems reasonable and appropriate
in connection with a determination pursuant to this Section 34(a), including, without limitation, restrictions on the ability of the Requesting
Person to transfer Common Shares acquired by it in the transaction or transactions to which such determination relates. Any Exemption
Request may be submitted on a confidential basis and, except to the extent required by applicable law, the Company will maintain the confidentiality
of such Exemption Request and the determination of the Board with respect thereto, unless the information contained in the Exemption Request
or the determination of the Board with respect thereto otherwise becomes publicly available.

 

     38

     

    

 

(b)              
The Board may make a determination under this Agreement so that a Person would be deemed to be an “Exempt Person” for
the purposes of this Agreement or a transaction would be deemed to be an “Exempt Transaction” for the purposes of this Agreement,
whether or not an Exemption Request has been made pursuant to Section 34(a). In connection with such determination, the Board may impose
any conditions that it deems reasonable and appropriate, including, without limitation, restrictions on the ability of the transferee
to transfer Common Shares acquired by it in the transaction or transactions to which such determination relates. Any determination of
the Board pursuant to this Section 34(b) may be made prospectively or retroactively.

 

     39

     

    

 

35.             
Suspension of Exercisability or Exchangeability. To the extent that the Board determines in good faith that some action
will or may need to be taken pursuant to, or in order to properly give effect to, Sections 7, 11, 13, 21, 23 or 24 or to comply with federal
or state securities laws or rules and regulations of any national securities exchange on which the Common Shares are listed or admitted
to trading, the Company may suspend the exercisability or exchangeability of the Rights for a reasonable period of time sufficient to
allow it to take such action or to comply with such laws or rules and regulations. In the event of any such suspension, the Company will
issue as promptly as practicable a public announcement stating that the exercisability or exchangeability of the Rights has been temporarily
suspended. The Company shall promptly notify the Rights Agent in writing whenever it makes such a public announcement temporarily suspending
the exercisability or exchangeability of the Rights, and whenever such suspension has been lifted. Upon such suspension, any rights of
action vested in a holder of the Rights will be similarly suspended. Failure to give a notice pursuant to the provisions of this Agreement
will not affect the validity of any action taken hereunder.

 

36.             
Effective Time. Notwithstanding anything in this Agreement to the contrary, this Agreement will not be effective until the
Effective Time.

 

37.             
Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts will for all purposes
be deemed to be an original, and all such counterparts will together constitute but one and the same instrument. A signature to this Agreement
executed and/or transmitted electronically will have the same authority, effect and enforceability as an original signature.

 

38.             
Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any delays
or failures in performance resulting from acts beyond its reasonable control, including, without limitation, acts of God, terrorist acts,
shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power failures
or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest.

 

     40

     

    

 

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

 

	 	STAR EQUITY HOLDINGS, INC.
	 	 
	 	By:	
/s/ Jeffrey E. Eberwein
	 	 	Name:	Jeffrey E. Eberwein
	 	 	Title:	Executive Chairman
	 	 	 	 
	 	American Stock Transfer & Trust Company, LLC
	 	 	 	 
	 	By:	/s/ Michael A. Nespoli
	 	 	Name:	Michael A. Nespoli
	 	 	Title:	Executive Director

 

[Signature Page to Rights Agreement]

     

     

    

 

EXHIBIT A

 

FORM OF

CERTIFICATE OF DESIGNATION

of

SERIES C PARTICIPATING

PREFERRED STOCK

of

STAR EQUITY HOLDINGS, INC.

 

(Pursuant to Section 151 of the

General Corporation Law of the State of Delaware)

 

Star Equity Holdings, Inc., a corporation organized
and existing under the General Corporation Law of the State of Delaware (the “Company”), DOES HEREBY CERTIFY:

 

That, pursuant to authority vested in the Board
of Directors of the Company by its Restated Certificate of Incorporation, as amended, and pursuant to the provisions of Section 151 of
the General Corporation Law of the State of Delaware, the Board of Directors of the Company has adopted the following resolution providing
for the issuance of a series of Preferred Stock:

 

RESOLVED, that pursuant to the authority expressly
granted to and vested in the Board of Directors of the Company (the “Board of Directors” or the “Board”)
by the Restated Certificate of Incorporation of the Company, as amended (the “Restated Certificate of Incorporation”),
a series of Preferred Stock, par value $0.0001 per share (the “Preferred Stock”), of the Company be, and it
hereby is, created, and that the designation and amount thereof and the powers, designations, preferences and relative, participating,
optional and other special rights of the shares of such series, and the qualifications, limitations or restrictions thereof are as follows:

 

I. Designation and Amount

 

The shares of such series will be designated as
Series C Participating Preferred Stock (the “Series C Preferred”) and the number of shares constituting the
Series C Preferred is 25,000. Such number of shares may be increased or decreased by resolution of the Board; provided, however,
that no decrease will reduce the number of shares of Series C Preferred to a number less than the number of shares then outstanding plus
the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any
outstanding securities issued by the Company convertible into the Series C Preferred.

 

II. Dividends and Distributions

 

(a)              
Subject to the rights of the holders of any shares of any series of Preferred Stock ranking prior to the Series C Preferred with
respect to dividends (including, but not limited to, the 10.0% Series A Cumulative Perpetual Preferred Stock of the Company), the holders
of shares of the Series C Preferred, in preference to the holders of the Common Stock, par value $0.0001 per share (the “Common
Stock”), of the Company, and of any other junior stock, will be entitled to receive, when, as and if declared by the Board
out of funds legally available for the purpose, dividends payable in cash (except as otherwise provided below) on such dates as are from
time to time established for the payment of dividends on the Common Stock (each such date being referred to herein as a “Dividend
Payment Date”), commencing on the first Dividend Payment Date after the first issuance of a share or fraction of a share
of the Series C Preferred (the “First Dividend Payment Date”), in an amount per share (rounded to the nearest
cent) equal to the greater of (i) $1.00 or (ii) subject to the provision for adjustment hereinafter set forth, 1,000 times the aggregate
per share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in kind) of all non-cash dividends, other
than a dividend payable in shares of the Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification
or otherwise), declared on the Common Stock since the immediately preceding Dividend Payment Date or, with respect to the First Dividend
Payment Date, since the first issuance of any share or fraction of a share of the Series C Preferred. In the event that the Company at
any time (i) declares a dividend on the outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivides the outstanding
shares of Common Stock, (iii) combines the outstanding shares of Common Stock into a smaller number of shares, or (iv) issues any shares
of its capital stock in a reclassification of the outstanding shares of Common Stock (including any such reclassification in connection
with a consolidation or merger in which the Company is the continuing or surviving corporation), then, in each such case and regardless
of whether any shares of the Series C Preferred are then issued or outstanding, the amount to which the holders of shares of the Series
C Preferred would otherwise be entitled immediately prior to such event under clause (ii) of the preceding sentence will be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such
event, and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

 

     A-1

     

    

 

(b)              
The Company will declare a dividend on the Series C Preferred as provided in the immediately preceding paragraph immediately after
it declares a dividend on the Common Stock (other than a dividend payable in shares of Common Stock). Each such dividend on the Series
C Preferred will be payable immediately prior to the time at which the related dividend on the Common Stock is payable.

 

(c)              
Dividends will accrue on outstanding shares of the Series C Preferred from the Dividend Payment Date next preceding the date of
issue of such shares, unless (i) the date of issue of such shares is prior to the record date for the First Dividend Payment Date, in
which case dividends on such shares will accrue from the date of the first issuance of a share of the Series C Preferred or (ii) the date
of issue is a Dividend Payment Date or is a date after the record date for the determination of the holders of shares of the Series C
Preferred entitled to receive a dividend and before such Dividend Payment Date, in either of which events such dividends will accrue from
such Dividend Payment Date. Accrued but unpaid dividends will cumulate from the applicable Dividend Payment Date but will not bear interest.
Dividends paid on the shares of Series C Preferred in an amount less than the total amount of such dividends at the time accrued and payable
on such shares will be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board may fix a
record date for the determination of the holders of shares of the Series C Preferred entitled to receive payment of a dividend or distribution
declared thereon, which record date will be not more than 60 calendar days prior to the date fixed for the payment thereof.

 

     A-2

     

    

 

III. Voting Rights

 

The holders of shares of the Series C Preferred
will have the following voting rights:

 

(a)              
Subject to the provision for adjustment hereinafter set forth, each share of the Series C Preferred will entitle the holder thereof
to 1,000 votes on all matters submitted to a vote of the stockholders of the Company. In the event the Company at any time (i) declares
a dividend on the outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivides the outstanding shares of Common
Stock, (iii) combines the outstanding shares of Common Stock into a smaller number of shares, or (iv) issues any shares of its capital
stock in a reclassification of the outstanding shares of Common Stock (including any such reclassification in connection with a consolidation
or merger in which the Company is the continuing or surviving corporation), then, in each such case and regardless of whether any shares
of Series C Preferred are then issued or outstanding, the number of votes per share to which the holders of shares of the Series C Preferred
would otherwise be entitled immediately prior to such event will be adjusted by multiplying such number by a fraction, the numerator of
which is the number of shares of Common Stock outstanding immediately after such event, and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

 

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

 

(c)              
Except as set forth in the Restated Certificate of Incorporation or herein, or as otherwise provided by law, the holders of shares
of the Series C Preferred will have no voting rights.

 

IV. Certain Restrictions

 

(a)              
Whenever dividends or other dividends or distributions payable on the Series C Preferred are in arrears, thereafter and until all
accrued and unpaid dividends and distributions, whether or not declared, on shares of the Series C Preferred outstanding have been paid
in full, the Company will not:

 

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

 

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

 

     A-3

     

    

 

(iii)           
Redeem, purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the shares of Series C Preferred; provided, however, that the Company may at any time redeem,
purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Company ranking junior (either
as to dividends or upon dissolution, liquidation or winding up) to the shares of Series C Preferred; or

 

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

 

(b)              
The Company will not permit any majority-owned subsidiary of the Company to purchase or otherwise acquire for consideration any
shares of stock of the Company unless the Company could, under paragraph (a) of this Article IV, purchase or otherwise acquire such shares
at such time and in such manner.

 

V. Reacquired Shares

 

Any shares of the Series C Preferred purchased
or otherwise acquired by the Company in any manner whatsoever will be retired and canceled promptly after the acquisition thereof. All
such shares will upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new
series of Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the Restated Certificate of Incorporation,
or in any other Certificate of Designation creating a series of Preferred Stock or any similar stock or as otherwise required by law.

 

VI. Liquidation, Dissolution
or Winding Up

 

Upon any liquidation, dissolution or winding up
of the Company, no distribution will be made (a) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation,
dissolution or winding up) to the shares of Series C Preferred unless, prior thereto, the holders of shares of the Series C Preferred
have received $1,000 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared,
to the date of such payment; provided, however, that the holders of shares of the Series C Preferred will be entitled to
receive an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate
amount to be distributed per share to the holders of shares of the Common Stock or (b) to the holders of shares of stock ranking on a
parity (either as to dividends or upon liquidation, dissolution or winding up) with the shares of Series C Preferred, except distributions
made ratably on the shares of Series C Preferred and all such parity stock in proportion to the total amounts to which the holders of
all such shares are entitled upon such liquidation, dissolution or winding up. In the event the Company at any time (i) declares a dividend
on the outstanding shares of Common Stock payable in shares of Common Stock, (ii) subdivides the outstanding shares of Common Stock, (iii)
combines the outstanding shares of Common Stock into a smaller number of shares, or (iv) issues any shares of its capital stock in a reclassification
of the outstanding shares of Common Stock (including any such reclassification in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation), then, in each such case and regardless of whether any shares of the Series C Preferred
are then issued or outstanding, the aggregate amount to which each holder of shares of the Series C Preferred would otherwise be entitled
immediately prior to such event under the proviso in clause (a) of the preceding sentence will be adjusted by multiplying such amount
by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event, and the denominator
of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

 

     A-4

     

    

 

VII. Consolidation, Merger,
Etc.

 

In the event that the Company enters into any consolidation,
merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities,
cash and/or any other property, then, in each such case, each share of the Series C Preferred will at the same time be similarly exchanged
for or changed into an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate
amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share
of Common Stock is changed or exchanged. In the event the Company at any time (a) declares a dividend on the outstanding shares of Common
Stock payable in shares of Common Stock, (b) subdivides the outstanding shares of Common Stock, (c) combines the outstanding shares of
Common Stock into a smaller number of shares, or (d) issues any shares of its capital stock in a reclassification of the outstanding shares
of Common Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), then, in each such case and regardless of whether any shares of the Series C Preferred are then issued or outstanding,
the amount set forth in the preceding sentence with respect to the exchange or change of shares of the Series C Preferred will be adjusted
by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after
such event, and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

 

VIII. Redemption

 

The shares of Series C Preferred are not redeemable.

 

IX. Rank

 

The Series C Preferred rank, with respect to the
payment of dividends and the distribution of assets, junior to all other series of the Company’s Preferred Stock and shall rank
senior to the Common Stock as to such matters.

 

X. Amendment

 

Notwithstanding anything contained in the Restated
Certificate of Incorporation to the contrary and in addition to any other vote required by applicable law, the Restated Certificate of
Incorporation may not be amended in any manner that would materially alter or change the powers, preferences or special rights of the
Series C Preferred so as to affect them adversely without the affirmative vote of the holders of at least two-thirds of the outstanding
shares of Series C Preferred, voting together as a single series.

 

     A-5

     

    

 

IN WITNESS WHEREOF, I have signed this Certificate
of Designation on behalf of Star Equity Holdings, Inc. this 2nd day of June 2021.

 

	 	STAR EQUITY HOLDINGS, INC.
	 	 
	 	By:	

	 	 	Name:	 
	 	 	Title:	 

 

     A-6

     

    

 

EXHIBIT B

 

FORM OF RIGHT CERTIFICATE

 

	Certificate No. R-___________	______________ Rights

 

NOT EXERCISABLE AFTER JUNE
2, 2024 OR EARLIER IF REDEEMED, EXCHANGED OR AMENDED. THE RIGHTS ARE SUBJECT TO REDEMPTION, EXCHANGE AND AMENDMENT AT THE OPTION
OF THE COMPANY, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES SPECIFIED IN THE RIGHTS AGREEMENT, RIGHTS
THAT ARE OR WERE BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR AN ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED
IN THE RIGHTS AGREEMENT) OR A TRANSFEREE THEREOF MAY BECOME NULL AND VOID.

 

Right Certificate

 

STAR EQUITY HOLDINGS, INC.

 

This certifies that ________, or registered assigns,
is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions,
and conditions of the Rights Agreement, dated as of June 2, 2021 (the “Rights Agreement”), by and between Star
Equity Holdings, Inc., a Delaware corporation (the “Company”), and American Stock Transfer & Trust Company,
LLC, (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term
is defined in the Rights Agreement) and prior to the Expiration Date (as such term is defined in the Rights Agreement) at the office or
offices of the Rights Agent designated for such purpose, one one-thousandth of a fully paid, non-assessable share of Series C Participating
Preferred Stock, par value $0.0001 per share (the “Preferred Shares”), of the Company, at a purchase price of
$12.00 per one one-thousandth of a Preferred Share (the “Purchase Price”), upon presentation and surrender of
this Right Certificate with the Form of Election to Purchase and related Certificate duly executed. If this Right Certificate is exercised
in part, the holder will be entitled to receive upon the surrender hereof another Right Certificate or Right Certificates for the number
of whole Rights not exercised. The number of Rights evidenced by this Right Certificate (and the number of one one-thousandths of a Preferred
Share which may be purchased upon the exercise hereof) set forth above, and the Purchase Price set forth above, are the number and Purchase
Price as of the date of the Rights Agreement, based on the Preferred Shares as constituted at such date.

 

As provided in the Rights Agreement, the Purchase
Price and/or the number and/or kind of securities issuable upon the exercise of the Rights evidenced by this Right Certificate are subject
to adjustment upon the occurrence of certain events.

 

This Right Certificate is subject to all of the
terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference
and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights,
obligations, duties and immunities of the Rights Agent, the Company and the holders of the Right Certificates, which limitations of rights
include the temporary suspension of the exercisability of the Rights under the circumstances specified in the Rights Agreement. Copies
of the Rights Agreement are on file at the office or offices of the Rights Agent designated for such purpose and can be obtained from
the Company without charge upon the written request therefor. Terms used herein with initial capital letters and not defined herein are
used herein with the meanings ascribed thereto in the Rights Agreement.

 

     B-1

     

    

 

Pursuant to the Rights Agreement, from and after
the occurrence of a Flip-in Event, any Rights that are Beneficially Owned by (i) any Acquiring Person (or any Affiliate or Associate of
any Acquiring Person), (ii) a transferee of any Acquiring Person (or any such Affiliate or Associate) who becomes a transferee after the
occurrence of a Flip-in Event, or (iii) a transferee of any Acquiring Person (or any such Affiliate or Associate) who became a transferee
prior to or concurrently with the Flip-in Event pursuant to either (a) a transfer from an Acquiring Person to holders of its equity securities
or to any Person with whom it has any continuing agreement, arrangement or understanding regarding the transferred Rights or (b) a transfer
which the Board of Directors of the Company has determined is part of a plan, an arrangement or understanding which has the purpose or
effect of avoiding certain provisions of the Rights Agreement, and subsequent transferees of any of such Persons, will be null and void
without any further action and any holder of such Rights will thereafter have no rights whatsoever with respect to such Rights under any
provision of the Rights Agreement. From and after the occurrence of a Flip-in Event, no Right Certificate will be issued that represents
Rights that are or have become null and void pursuant to the provisions of the Rights Agreement, and any Right Certificate delivered to
the Rights Agent that represents Rights that are or have become null and void pursuant to the provisions of the Rights Agreement will
be canceled.

 

This Right Certificate, with or without other Right
Certificates, may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates entitling the holder
to purchase a like number of one one-thousandths of a Preferred Share (or other securities, as the case may be) as the Right Certificate
or Right Certificates surrendered entitled such holder (or former holder in the case of a transfer) to purchase, upon the presentation
and surrender hereof at the office or offices of the Rights Agent designated for such purpose, with the Form of Assignment (if appropriate)
and the related Certificate duly executed.

 

Subject to the provisions of the Rights Agreement,
the Rights evidenced by this Certificate may be redeemed by the Company, at its option, at a redemption price of $0.0001 per Right or
may be exchanged in whole or in part. The Rights Agreement may be supplemented and amended by the Company, as provided therein.

 

The Company is not required to issue fractions
of Preferred Shares (other than fractions which are integral multiples of one one-thousandth of a Preferred Share, which may, at the option
of the Company, be evidenced by depositary receipts) or other securities issuable upon the exercise of any Right or Rights evidenced hereby.
In lieu of issuing such fractional Preferred Shares or other securities, the Company may make a cash payment, as provided in the Rights
Agreement.

 

     B-2

     

    

 

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

 

This Right Certificate will not be valid or obligatory
for any purpose until it has been countersigned by the Rights Agent.

 

WITNESS the facsimile signature of the officers
of the Company and its corporate seal. Dated as of _______, ____.

 

	ATTEST:	 	STAR EQUITY HOLDINGS, INC.
	 	 	 
	
	 	By:	

	 	 	 	 	 	Name:	 
	 	 	 	 	 	Title:	 
	 	 	 
	Countersigned:	 	 
	 	 	 
	American Stock Transfer & Trust Company, LLC, as Rights Agent	 	 
	 	 	 
	By:	
	 	 	 
	 	Authorized Signature	 	 	 	 

 

     B-3

     

    

 

Form of Reverse Side of Right Certificate

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder if such

holder desires to transfer the Right Certificate)

 

FOR VALUE RECEIVED, ___________ hereby sells,
assigns and transfers unto 

 

 

	

	(Please print name and address of transferee) 

	 

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

 

	Dated: ________, ____	 	 
	 	 	 
	 	 	

	 	 	Signature
	 	 	 
	Signature Guaranteed:	
	 	 
	 	 	 	 
	Signatures must be guaranteed by an eligible guarantor institution (a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion program) at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient.

 

     B-4

     

    

 

CERTIFICATE

 

The undersigned hereby certifies by checking the
appropriate boxes that:

 

(1) the Rights evidenced by this Right
Certificate ☐ are ☐ are not being sold, assigned, transferred, split up, combined or exchanged by or on behalf of a Person
who is or was an Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined in the Rights
Agreement); and

 

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

 

	Dated: ________, ____	 	 
	 	 	
	 	 	

	 	 	Signature

 

     B-5

     

    

 

FORM OF ELECTION TO PURCHASE

 

(To be executed if the holder desires to

exercise the Right Certificate)

 

To Star Equity Holdings, Inc.:

 

The undersigned hereby irrevocably elects to exercise
_________ Rights represented by this Right Certificate to purchase the one one-thousandths of a Preferred Share or other securities issuable
upon the exercise of such Rights and requests that a certificate or certificates for such securities be issued in the name of and delivered
to:

 

	Please insert social security	 
	or other identifying number:	

	 
	 

	(Please print name and address)
	 

	 
	 

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

	 
	Please insert social security	 
	or other identifying number:	

	 
	 

	(Please print name and address)
	 

 

	Dated: ________, ____	 	 
	 	 	 
	 	 	

	 	 	Signature
	 	 	 
	Signature Guaranteed:	
	 	 
	 	 	 	 
	Signatures must be guaranteed by an eligible guarantor institution (a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion program) at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient.

 

     B-6

     

    

 

CERTIFICATE

 

The undersigned hereby certifies by checking the
appropriate boxes that:

 

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

 

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

 

	Dated: ________, ____	 	 
	 	 	 
	 	 	

	 	 	Signature

 

NOTICE

 

Signatures on the foregoing Form of Assignment
and Form of Election to Purchase and in the related Certificates must correspond to the name as written upon the face of this Right Certificate
in every particular, without alteration or enlargement or any change whatsoever.

 

Signatures must be guaranteed by an eligible
guarantor institution (banks, stockbrokers, savings and loan associations and credit unions with membership in an approved medallion signature
program) pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended.

 

     B-7

     

    

 

EXHIBIT C

 

SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK

 

On June 2, 2021, the Board of Directors of Star
Equity Holdings, Inc. declared a dividend of one preferred share purchase right for each outstanding share of Star Equity Holdings, Inc.’s
common stock, par value $0.0001 per share. The dividend is payable on June 14, 2021 to our stockholders of record on that date. The terms
of the rights are set forth in a Rights Agreement, dated as of June 2, 2021 (the “Rights Agreement”), by and
between Star Equity Holdings, Inc. and American Stock Transfer & Trust Company, LLC, as rights agent.

 

The Rights Agreement is intended to protect stockholder
value by attempting to protect against a possible limitation on our ability to use our net operating loss carryforwards and other tax
attributes to reduce potential future federal income tax obligations. Under the Internal Revenue Code and rules promulgated by the Internal
Revenue Service, we may “carry forward” tax losses and credits in certain circumstances to offset any current
and future earnings and thus reduce our federal income tax liability, subject to certain requirements and restrictions. To the extent
that our tax attributes do not otherwise become limited, we believe that we will be able to carry forward a significant amount of losses
and credits, and therefore these tax attributes could be a substantial asset to us. However, if we experience an “ownership
change,” as defined in Section 382 of the Internal Revenue Code, our ability to use these tax attributes will be substantially
limited, and the timing of the usage of the tax attributes could be substantially delayed, which could significantly impair the value
of that asset.

 

In general terms, the Rights Agreement imposes
a significant penalty upon any person or group that acquires beneficial ownership of 4.99% or more of our outstanding common stock without
the prior approval of our Board of Directors. A person or group that acquires a percentage of our common stock in excess of that threshold
is called an “acquiring person.” Any rights held by an acquiring person are null and void and may not be exercised.

 

This summary of rights provides a general description
of the Rights Agreement. Because it is only a summary, this description should be read together with the entire Rights Agreement, which
we incorporate in this summary by reference. Upon written request, we will provide a copy of the Rights Agreement free of charge to any
stockholder.

 

The Rights. Our Board of Directors authorized
the issuance of one right per each outstanding share of our common stock on June 14, 2021. If the rights become exercisable, each right
would allow its holder to purchase from us one one-thousandth of a share of our Series C Participating Preferred Stock for a purchase
price of $12.00.

 

Each fractional share of preferred stock would give the stockholder
approximately the same dividend, voting and liquidation rights as does one share of our common stock. Prior to exercise, however, a right
does not give its holder any dividend, voting or liquidation rights.

 

Exercisability. The rights will not be exercisable
until the earlier of:

 

		·	10 days after a public announcement by Star Equity Holdings, Inc. that a person or group has become an acquiring person; and

 

     C-1

     

    

 

		·	10 business days (or a later date determined by our Board of Directors) after a person or group begins a tender or an exchange offer
that, if completed, would result in that person or group becoming an acquiring person.

 

We refer to the date that the rights become exercisable as the “distribution
date.” Until the distribution date, our common stock certificates will also evidence the rights and will contain a notation
to that effect. Any transfer of shares of common stock prior to the distribution date will constitute a transfer of the associated rights.
After the distribution date, the rights will separate from the common stock and be evidenced by right certificates, which we will mail
to all holders of rights that have not become null and void.

 

After the distribution date, if a person or group
already is or becomes an acquiring person, all holders of rights, except the acquiring person, may exercise their rights upon payment
of the purchase price to purchase shares of our common stock (or other securities or assets as determined by the Board of Directors) with
a market value of two times the purchase price. We refer to this as a “flip-in event.”

 

After the distribution date, if a flip-in event
has already occurred and Star Equity Holdings, Inc. is acquired in a merger or similar transaction, all holders of rights, except the
acquiring person, may exercise their rights upon payment of the purchase price, to purchase shares of the acquiring or other appropriate
entity with a market value of two times the purchase price of the rights. We refer to this as a “flip-over event.”

 

Rights may be exercised to purchase our preferred
shares only after the distribution date occurs and prior to the occurrence of a flip-in event as described above. A distribution date
resulting from the commencement of a tender offer or an exchange offer as described in the second bullet point above could precede the
occurrence of a flip-in event, in which case the rights could be exercised to purchase our preferred shares. A distribution date resulting
from any occurrence described in the first bullet point above would necessarily follow the occurrence of a flip-in event, in which case
the rights could be exercised to purchase shares of common stock (or other securities or assets) as described above.

 

Exempted Persons and Exempted Transactions.
Our Board of Directors recognizes that there may be instances when an acquisition of our common stock that would cause a stockholder to
become an acquiring person may not jeopardize the availability of any tax attributes to Star Equity Holdings, Inc. Accordingly, the Rights
Agreement grants discretion to the Board of Directors to designate a person as an “Exempt Person” or to designate a transaction
involving our common stock as an “Exempt Transaction.” An “Exempt Person” cannot become an acquiring person under
the Rights Agreement. Our Board of Directors can revoke an “Exempt Person” designation if it subsequently makes a contrary
determination regarding whether a person jeopardizes the availability of tax attributes to Star Equity Holdings, Inc.

 

Expiration. The rights will expire on the
earliest of (i) June 2, 2024, which is the third anniversary of the date on which our Board of Directors authorized and declared a dividend
of the rights, or such earlier date as of which our Board of Directors determines that the Rights Agreement is no longer necessary for
the preservation of our tax assets, (ii) the time at which the rights are redeemed, (iii) the time at which the rights are exchanged,
(iv) the effective time of the repeal of Section 382 of the Code or any successor statute if the Board of Directors determines that the
Rights Agreement is no longer necessary for the preservation of our tax assets, (v) the first day of a taxable year of the Company to
which the Board of Directors determines that no NOLs or other tax assets may be carried forward, and (vi) the day following the certification
of the voting results of Star Equity Holdings, Inc.’s 2021 annual meeting of stockholders, if stockholder approval of the Rights
Agreement has not been obtained prior to that date.

 

     C-2

     

    

 

Redemption. Our Board may redeem all (but
not less than all) of the rights for a redemption price of $0.0001 per right at any time before a person or group has become an acquiring
person. Once the rights are redeemed, the right to exercise the rights will terminate, and the only right of the holders of such rights
will be to receive the redemption price. The redemption price will be adjusted if we declare a stock split or issue a stock dividend on
our common stock.

 

Exchange. At any time after a person or
group has become an acquiring person, but before an acquiring person owns 50% or more of our outstanding common stock, our Board of Directors
may exchange each right (other than rights that have become null and void) for two shares of common stock or equivalent securities.

 

Anti-Dilution Provisions. Our Board may
adjust the purchase price of the preferred shares, the number of preferred shares issuable and the number of outstanding rights to prevent
dilution that may occur as a result of certain events, including, among others, a stock dividend, a stock split or a reclassification
of the preferred shares or our common stock. No adjustments to the purchase price of less than one percent will be made.

 

Amendments. Before the time a person or
group has become an acquiring person, our Board of Directors may amend or supplement the Rights Agreement in any respect without the consent
of the holders of the rights, except that no amendment may decrease the redemption price below $0.0001 per right. At any time, our Board
of Directors may amend or supplement the Rights Agreement to cure an ambiguity, to alter time period provisions, to correct inconsistent
provisions or to make any additional changes to the Rights Agreement, but after a person or group has become an acquiring person only
to the extent that those changes do not impair or adversely affect any rights holder and do not result in the rights again becoming redeemable.
The limitations on our Board of Director’s ability to amend the Rights Agreement does not affect our Board of Director’s power
or ability to take any other action that is consistent with its fiduciary duties, including, without limitation, accelerating or extending
the expiration date of the rights, or making any amendment to the Rights Agreement that is permitted by the Rights Agreement or adopting
a new rights agreement with such terms as our Board determines in its sole discretion to be appropriate.

 

* * *

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}]]