Document:

EXHIBIT 10.1

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of September 20, 2019, but effective as of
September 9, 2019 (the “Effective Date”) by and between Stewart Information Services Corporation, a
Delaware corporation (the “Company”), and Frederick H. Eppinger (“Executive”)
(collectively, the “Parties”). This Agreement amends, restates and supersedes any prior written employment
agreement between the Parties and any other written or unwritten agreement or understanding between the Parties regarding the
subject matter hereof.

 

The Company and Executive
agree as follows:

 

1.             Definitions.
The following terms used in this Agreement shall, unless otherwise clearly required by the context, have the meanings assigned
to them in this Section 1.

 

“2020
Performance Share Units” has the meaning set forth in Section 6.10. “Additional Term”
has the meaning set forth in Section 2.

 

“Annual
Salary” means the annual salary payable to Executive in the amount of

 

$850,000,
as it may be adjusted by the Company from time to time. “Benefits” has the meaning set forth in Section
4.4. “Board” means the Board of Directors of the Company. “Cause” has
the meaning set forth in Section 6.1(a).

 

“Change
in Control” has the meaning set forth in Section 6.8.

 

“Change
in Control Effective Date” shall mean the first date during the Term on which a Change in Control occurs; provided
that if a Change in Control occurs and if Executive’s employment with the Company is terminated prior to the date on which
the Change in Control occurs, the Change in Control Effective Date shall be the date immediately prior to such termination of
employment if Executive can demonstrate that such termination of employment (i) was at the request of a third party who has taken
steps reasonably calculated to effect a Change in Control or (ii) otherwise arose in connection with or anticipation of a Change
in Control.

 

“Change
in Control Period” shall mean the period commencing on the Change in Control Effective Date and ending on the second
anniversary of the Change in Control Effective Date.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Company
Business” means the business of providing real estate support services, including, without limitation, title insurance,
real estate information services, escrow services and related transaction services.

 

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“Conflict
of Interest” has the meaning set forth in Section 5.5.

 

“Date
of Termination” means the date that is Executive’s last day of work for the Company.

 

“Disability”
means a physical or mental disability, whether total or partial, as defined by the Company’s Long-Term Disability Plan,
as in effect from time to time.

 

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

 

“Expenses”
means all damages, losses, judgments, liabilities, fines, penalties, excise taxes, settlements, and costs, attorneys’ fees,
accountants’ fees, and disbursements and costs of attachment or similar bonds, investigations, and any other expenses incurred
in establishing a right to indemnification under this Agreement.

 

“Good Reason”
has the meaning set forth in Section 6.3(a).

 

“Incentive
Plan” means the Company’s shareholder approved incentive plan or plans, which may include long-term equity-based
compensation plans, short-term performance- based compensation plans and any other similar plans, as such may be in effect from
time to time.

 

“Initial
Term” has the meaning set forth in Section 2.

 

“Mutual
Separation” has the meaning set forth in Section 6.10. “Other Separation Pay” has
the meaning set forth in Section 6.6.

 

“Proceeding”
means any action, suit or proceeding, whether civil, criminal, administrative or investigative.

 

“Release”
has the meaning set forth in Section 6.9.

 

“Restrictive
Covenants” has the meaning set forth in Section 5.6. “Section 409A Penalties” has
the meaning set forth in Section 7.1.

 

“Separation
Payment Commencement Date” has the meaning set forth in Section 6.5(a).

 

“Term”
has the meaning set forth in Section 2.

 

2.
            Term. The term of this Agreement begins on the
Effective Date and ends on

 

December
31, 2022 (the “Initial Term”); provided, however, that that beginning on the first day immediately following
the expiration date of the Initial Term, and on each subsequent anniversary of such day, the Initial Term will be automatically
extended for successive one year periods (each such period, an “Additional Term” and, with the Initial
Term, collectively the “Term”) unless either
party provides written notice of non-renewal to the other party at least ninety (90) days prior to the applicable renewal date.
Notwithstanding the foregoing, Executive’s employment may be terminated prior to the end of the Term pursuant to the express
provisions of this Agreement.

 

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3.             Title
and Duties. Executive shall serve as Chief Executive Officer of the Company. Executive will have such duties and responsibilities
appropriate to Executive’s position as may be assigned to Executive by the Board from time to time, at the Board’s
discretion. Executive will report to the Board and devote all reasonable efforts and all of his or her business time to the Company.

 

		4.	Compensation
                                         and Benefits.

 

4.1              
Annual Salary. The Annual Salary will be payable in accordance with the payroll policies of the Company in effect
from time to time, but in no event less frequently than twice each month, less any deductions required to be withheld by applicable
law and less any voluntary deductions made by Executive.

 

4.2              
Incentive Compensation. Executive shall be eligible to receive long and short-term incentive compensation in the
form of annual bonuses or long-term grants under the Incentive Plan. The decision to award any incentive compensation to Executive
under the Incentive Plan and the amount and terms of any such awards or grants are subject to change from year to year and shall
be in the sole and absolute discretion of the Compensation Committee of the Board or any other committee that may be designated
as the administrative committee for the Incentive Plan with respect to Executive.

 

4.3              
Vacation Policy. Executive shall be entitled to four weeks of paid vacation during each calendar year of the Term,
which such vacation shall accrue in accordance with Company policy.

 

4.4              
Participation in Employee Benefit Plans. Executive may participate in any group life, hospitalization or disability
insurance plan, health program, retirement plan, similar benefit plan or other so called “fringe benefits” of the
Company (collectively, “Benefits”). Executive’s participation in any such plans shall be on the
terms and conditions set forth in the governing plan documents as they may be in effect from time to time.

 

4.5              
General Business Expenses. The Company shall pay or reimburse Executive for all business expenses reasonably and
necessarily incurred by Executive in the performance of Executive’s duties under this Agreement, consistent with the Company’s
business expense reimbursement policy, as in effect from time to time.

 

4.6              
Other Benefits. Executive shall be entitled to participate in or receive benefits under any compensatory employee
benefit plan or other benefit or similar arrangements made available by the Company now or in the future to its senior executive
officers and key management employees, subject to and on a basis consistent with the terms, conditions, and overall administration
of such plans or arrangement.

 

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4.7              
Clawback Policy. Executive agrees that the compensation and benefits provided by the Company under this Agreement
or otherwise may be subject to recoupment under the Company’s Clawback Policy, as in effect from time to time. A copy of
the current Clawback Policy is available on request.

 

4.8              
Stock Ownership. Executive understands and agrees that Executive is subject to the Company’s stock ownership
guidelines, as such guidelines may be in effect from time to time and shall take all appropriate steps to comply with the stock
ownership guidelines. Executive understands and the Company agrees that notice of changes to the stock ownership guidelines shall
be made available by the Company as appropriate.

 

4.9              
Perquisites. Executive shall be entitled, as of the Effective Date, to the perquisites described in the Stewart
Information Services Corporation List of Perquisites provided to Executive with this Agreement; provided, however, that Executive’s
perquisites shall be subject to modification from time to time by the Compensation Committee of the Board, at its sole discretion.

 

		5.	Confidentiality
                                         and Company Property, Non-Competition and Non-Solicitation.

 

5.1              
Confidentiality, Non-Solicit, and Non-Compete Agreement. Executive agrees that, as a condition of Executive’s
employment, Executive shall execute and shall be bound by the terms of the Stewart Title Guaranty Company, Stewart Title Company
and Affiliates Confidentiality, Non-Solicit, and Non-Compete Agreement attached hereto as Exhibit A.

 

5.2              
Non-Disparagement. Executive also agrees, as a condition of Executive’s employment, that Executive and Executive’s
immediate family will not make any comments to the employees, vendors, customers, or suppliers of the Company or any of its affiliates,
or to any media outlet or to others with the intent to impugn, castigate or otherwise damage the reputation of the Company, any
of its affiliates or any of the owners, directors, officers, or employees of the Company.

 

5.3              
Covenants Independent. The covenants of Executive contained in this Section 5 will be construed as independent
of any other provision in this Agreement; and the existence of any claim or cause of action by Executive against the Company will
not constitute a defense to the enforcement by the Company of said covenants. Executive has been advised to consult with counsel
in order to be informed in all respects concerning the reasonableness and propriety of this Section 5 and its provisions
with the specific regard to the nature of the business conducted by the Company. Executive acknowledges that this Section 5
and its provisions are reasonable in all respects.

 

5.4              
Non-Competition During Employment. Executive agrees that during Executive’s employment with the Company Executive
will not compete with the Company by engaging in the Company Business or in the conception, design, development, production, marketing,
or servicing of any product or service that is substantially similar to the products or services which the Company provides, and
that Executive will not work for (in any capacity),

 

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assist,
or became affiliated with as an owner, partner, or otherwise, either directly or indirectly, any individual or business which
engages in the Company Business or offers or performs services, or offers or provides products substantially similar to the services
and products provided by the Company.

 

5.5              
Conflicts of Interest. Executive agrees that during Executive’s employment with the Company he or she
will not engage, either directly or indirectly, in any activity which might adversely affect the Company or its affiliates (a
“Conflict of Interest”), including ownership of a material interest in any supplier, contractor, distributor,
subcontractor, customer or other entity with which the Company does business or acceptance of any material payment, service, loan,
gift, trip, entertainment, or other favor from a supplier, contractor, distributor, subcontractor, customer or other entity with
which the Company does business, and that Executive will promptly inform the Board as to each offer received by Executive to engage
in any such activity. Executive further agrees to disclose to the Company any other facts of which Executive becomes aware which
might in Executive’s good faith judgment reasonably be expected to involve or give rise to a Conflict of Interest or potential
Conflict of Interest.

 

5.6              
Rights and Remedies Upon Breach. If Executive breaches any of the provisions contained in this Section 5,
including any provisions of Exhibit A (the “Restrictive Covenants”), the Company shall have the
following rights and remedies, each of which rights and remedies shall be independent of the others and severally enforceable,
and each of which is in addition to, and not in lieu of, any other rights and remedies available to the Company under law or in
equity, including, without limitation, recovery of money damages and termination of this Agreement:

 

(a)   
Specific Performance. The right and remedy to have the Restrictive Covenants specifically enforced by any court
of competent jurisdiction, it being agreed that any breach of the Restrictive Covenants would cause irreparable injury to the
Company and that money damages would not provide an adequate remedy to the Company.

 

(b)   
Accounting. The right and remedy to require Executive to account for and pay over to the Company all compensation,
profits, monies, accruals, increments or other benefits derived or received by Executive as the result of any action constituting
a breach of the Restrictive Covenants.

 

(c)   
Remedies for Violation of Non-Competition or Confidentiality Provisions. Executive acknowledges and agrees that:
(i) the skills, experience and contacts of Executive are of a special, unique, unusual and extraordinary character which give
them a peculiar value; (ii) because of the business of the Company, the restrictions agreed to by Executive as to time and area
contained in this Section 5 are reasonable; and (iii) the injury suffered by the Company by a violation of this Section
5 will be difficult to calculate in damages in an action at law and damages cannot fully compensate the Company for any violation
of any obligation or covenant in this Section 5. Executive’s compliance with this Section 5 is a condition
precedent to the Company’s obligation to make payments of any nature to Executive (including, without limitation, payments
otherwise payable pursuant to the Incentive Plan).

 

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5.7              
Materiality and Conditionality of this Section 5. The covenants contained in this Section 5 are material
to this Agreement. Executive’s agreement to strictly comply with this Section 5 is a precondition for Executive’s
receipt of payments of any nature under this Agreement (including, without limitation, payments otherwise payable pursuant to
the Incentive Plan). Whether or not this Section 5 or any portion thereof has been held or found invalid or unenforceable
for any reason whatsoever by a court or other constituted legal authority of competent jurisdiction, upon any violation of this
Section 5 or any portion thereof, or upon a finding that a violation would have occurred if this Section 5 or any
portion thereof were enforceable, Executive and the Company agree that (i) Executive’s interest in unvested awards granted
pursuant to the Incentive Plan shall automatically lapse and be forfeited; and (ii) Company shall have no obligation to make any
further payments to Executive under this Agreement.

 

5.8              
Severability, Modification of Covenants. The Restrictive Covenants shall survive the termination or expiration of
this Agreement, and in the event any of the Restrictive Covenants shall be held by any court to be effective in any particular
area or jurisdiction only if said Restrictive Covenant is modified to be limited in its duration or scope, then, at the sole option
of the Company, the provisions of Section 5.7 may be deemed to have been triggered, and the rights, liabilities and obligations
set forth therein shall apply. In the event the Company does not elect to trigger application of Section 5.7, then the
court shall have such authority to so reform the covenants and the parties hereto shall consider such covenants and/or other provisions
of this Section 5 to be amended and modified with respect to that particular area or jurisdiction so as to comply with
the order of such court and, as to all other jurisdictions, the covenants contained herein shall remain in full force and effect
as originally written. Should any court hold that the covenants in this Section 5 are void and otherwise unenforceable
in a particular area or jurisdiction, then notwithstanding the foregoing provisions of this Section 5.8, the provisions
of Section 5.7 shall be applicable and the rights, liabilities and obligations of the parties set forth therein shall apply.
Alternatively, at the sole option of the Company, the Company may consider such covenants to be amended and modified so as to
eliminate therefrom the particular area or jurisdictions as to which such covenants are so held void or otherwise unenforceable
and, as to all other areas and jurisdictions covered herein, the covenants contained herein shall remain in full force and effect
as originally written.

 

6.             Termination.
In general, on termination of Executive’s employment for any reason, the following amounts will be paid to Executive, or
Executive’s estate, as applicable:

 

(a)   
All accrued but unpaid Annual Salary through Executive’s last active day of employment, payable in a lump sum within
thirty (30) days following Executive’s termination of employment;

 

(b)   
Accrued but unused vacation time, to the extent payment is either required by law or provided for in the Company’s
vacation or paid-time-off policy, as such may be in effect from time to time;

 

(c)   
Any amounts payable to Executive under the terms of any employee benefit plans in which Executive was a participant;

 

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(d)   
Reimbursement of any of Executive’s business expenses not previously reimbursed, to the extent provided for under
the Company’s business expense reimbursement policy; and

 

(e)   
Any other amounts determined to be due under the terms of the Incentive Plan, or any grants or awards made thereunder.

 

Unless
expressly provided for under this Agreement, no amounts other than those set forth above shall be paid following any termination
of Executive’s employment, including, by way of example, and not limitation, termination of Executive’s employment
by reason of the Company for Cause, by reason of Executive’s resignation without Good Reason, and by reason of Executive’s
voluntary retirement.

 

6.1              
Termination for Cause. The Company has the right, at any time during the Term, subject to all provisions hereof,
exercisable by serving notice, effective on or after the date of service of such notice as specified therein, to terminate Executive’s
employment under this Agreement and discharge Executive for Cause.

 

(a)   
The term “Cause” means, in the good faith determination of the Board, any of the following:

 

(i)   
Executive’s willful failure to substantially perform Executive’s duties with the Company (other than by reason
of Executive’s Disability), after a written demand for substantial performance is delivered to Executive that specifically
identifies the manner in which the Company believes that Executive has not substantially performed such duties, and Executive
has failed to remedy the situation within 30 days of such written notice from the Company;

 

Executive’s duties;

 

(ii)
   Executive’s gross negligence in the performance of

 

(iii)
  Executive’s conviction of, or plea of guilty or nolo contendre to any felony or any crime involving
moral turpitude or the personal enrichment of Executive at the expense of the Company;

 

(iv)   Executive’s willful engagement in conduct that is demonstrably and materially injurious to the Company, monetarily
or otherwise, including, without limitation, Executive’s breach of fiduciary duties owed to the Company;

 

(v)
  Executive’s willful violation of any material provision of the Company’s code of conduct;

 

(vi)
 Executive’s willful violation of any of the material covenants contained in Section 5;

 

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(vii)   
Executive’s act of dishonesty resulting in or intending to result in personal gain at the expense of the Company;
or

 

(viii)  
Executive’s engaging in any material act that is intended or may be reasonably expected to harm the reputation, business
prospects, or operations of the Company.

 

6.2              
Termination without Cause. The Company has the right, at any time during the Term to terminate Executive’s
employment without Cause.

 

6.3              
Resignation for Good Reason. Executive’s resignation for Good Reason, as set forth below, shall be treated
in all respects like a Termination by the Company without Cause. In the event Executive’s resignation is deemed to be for
Good Reason, Executive shall, subject to execution of a Release, receive separation pay benefits outlined in Section 6.5.
For these purposes, the following provisions shall be applicable:

 

		(a)	The
                                         term “Good Reason” shall mean any of the following:

 

(i)   
The occurrence of any material breach by the Company or any of its affiliates of the terms of this Agreement or of the
terms of any other material agreement between Executive and the Company or any of its affiliates;

 

(ii)   
The Company’s assignment to Executive of any duties materially inconsistent with Executive’s position, including
any other action which results in a material diminution in such status, title, authority, duties or responsibility;

 

(iii)   
The relocation of Executive’s office to a location more than 35 miles outside Executive’s office location as
agreed at the time of execution of this Agreement; or

 

(iv)   
The Company’s failure, following a Change in Control, to obtain the assumption in writing of all of the Company’s
material obligations under the Executive’s employment agreement and any of the Executive’s outstanding grants or awards
by the successor to all or substantially all of the assets of the Company or any Subsidiary within fifteen (15) days after a reorganization,
merger, consolidation, sale or other disposition of assets of the Company or such Subsidiary.

 

(b)   
Notwithstanding the foregoing, Executive’s resignation shall not be deemed to be for Good Reason if Executive has
consented to the condition claimed to constitute Good Reason, nor shall Executive’s resignation be deemed to be for Good
Reason, unless Executive has provided any written notice to the Company specifying the event or condition claimed to constitute
Good Reason within sixty (60) days following the initial existence of such event or condition, and the Company has, after receipt
of such notice of Good Reason from Executive, failed to cure or correct such condition or event within sixty (60) days following
the Company’s receipt of Executive’s notice of intent to resign for Good Reason.

 

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6.4              
Resignation without Good Reason. Executive may resign and any time without Good Reason. It is understood that Executive
shall provide the Company with ninety (90) days’ notice of Executive’s intent to resign.

 

6.5              
Separation Pay Benefits. In the event Executive’s employment with the Company or a Subsidiary is terminated
by the Company without Cause, or by the Executive for Good Reason, Executive shall, subject to execution of a Release, receive,
in addition to any payments required by law, the following separation pay benefits:

 

(a)   
Twenty-four (24) months of Executive’s then current base salary, payable in semi-monthly installments or other regular
installments in accordance with the Company’s payroll practices, no earlier than the 60th day after Executive’s termination
of employment and after the date all applicable revocation periods has past (the “Separation Payment Commencement
Date”);

 

(b)   
An additional payment in installments payable on the same schedule as the payments provided for in Section 6.5(a),
equal to an amount such that Executive will retain, net after taxes paid by Executive (assuming Executive is taxed at the highest
applicable federal, state and local tax rates in effect for the Executive), in the aggregate, the dollar value of the Company’s
subsidy (based on costs borne by the Company for active employees) of the cost of Executive’s coverage under the Company’s
group health plan for a period of eighteen (18) months; and

 

(c)   
Such accelerated vesting as may be provided for under the terms of the Incentive Plan and/or award agreement under the
Incentive Plan.

 

Notwithstanding
anything in this Section 6.5 to the contrary, the Company shall have the right to cease or terminate the separation pay
benefits otherwise provided for in the event Executive breaches, as determined by the Board in its sole discretion, the covenants
set forth in Section 5 above.

 

6.6              
Other Separation Pay Benefits. Notwithstanding anything in this Section 6, if Executive is entitled to any
separation pay by reason of any agreement or arrangement applicable to Executive other than by reason of the terms of this Section
6 (“Other Separation Pay”), the separation pay otherwise payable to Executive under Section 6.5
shall be reduced by the amount of Executive’s Other Separation Pay. The Executive’s entitlement to Other Separation
Pay shall be deemed to be separation pay provided for under Section 6. To the extent any separation pay is subject to Code
Section 409A, the provisions regarding the time and manner such separation payments are to be made shall not be modified so as
to avoid, to the extent possible, any modification to the time and manner of payment of compensation that would constitute a violation
of the requirements of Code Section 409A.

 

6.7              
Consequences of a Change in Control. In the event Executive’s employment is terminated by the Company without
Cause or by Executive for Good Reason during a Change in Control Period, and provided Executive executes, and does not thereafter
revoke, a Release, the Executive shall
be entitled to receive, in lieu of the separation pay benefits provided for under Section 6.5:

 

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(a)   
Twenty-Four (24) months of Executive’s then current base salary, payable in semi-monthly installments or other regular
installments in accordance with the Company’s payroll practices, beginning on the Separation Payment Commencement Date;

 

(b)   
An amount equal to two times Executive’s target annual bonus in effect for the fiscal year in which Executive’s
termination of employment occurs, to be paid to Executive in a lump sum within thirty (30) days after the date all applicable
revocation periods under the Release have expired, and, in all events, no later than the end of the “applicable 2 1⁄2
month period” (as that phrase is defined for purposes of Treasury Regulation Section 1.409A- 1(b)(4));

 

(c)   
An additional payment in installments payable on the same schedule as the payments provided for in Section 6.7(a),
equal to an amount such that Executive will retain, net after taxes paid by Executive (assuming Executive is taxed at the highest
applicable federal, state and local tax rates in effect for Executive), in the aggregate, the dollar value of the Company’s
subsidy (based on costs borne by the Company for active employees) of the cost of Executive’s coverage under the Company’s
group health plan for a period of eighteen (18) months;

 

(d)   
Such accelerated vesting as may be provided for under the terms of the Incentive Plan and/or award agreement under the
Incentive Plan.

 

(e)   
Executive shall also be entitled to all other payments and/or benefits provided for under Section 6 (other than
Section 6.5).

 

6.8              
Conditions for Change in Control. Notwithstanding the foregoing, a “Change in Control”
shall be deemed to have occurred if any of the following events shall occur:

 

(a)   
Any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing
50% or more of the combined voting power of the Company’s then outstanding securities; or

 

(b)   
There occurs a proxy contest or a consent solicitation, or the Company is a party to a merger, consolidation, sale of assets,
plan of liquidation or other reorganization, as a consequence of which members of the Board in office immediately prior to such
transaction or event thereafter constitute less than a majority of the Board immediately after such transaction or event; or

 

(c)   
There occurs a reverse merger involving the Company in which the Company is the surviving corporation but the shares of
common stock of the Company outstanding immediately
preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise;
or

 

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(d)   
There is a sale or other disposition of all or substantially all of the assets of the Company; or

 

(e)   
There is an adoption of any plan or proposal for the liquidation or dissolution of the Company; or

 

(f)   
Stewart Title Guaranty Company is placed in supervision, receivership, conservatorship, or special administrative action
by its domiciled Department of Insurance.

 

Notwithstanding
the foregoing, however, in any circumstance or transaction in which compensation resulting from or in respect of any payment due
hereunder would result in the imposition of an additional tax under Code Section 409A if the foregoing definition of “Change
in Control” were to apply, but would not result in the imposition of any additional tax if the term “Change in Control”
were defined herein to mean a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5),
then “Change in Control” shall mean a “change in control event” within the meaning of Treasury Regulation
Section 1.409A-3(i)(5), but only to the extent necessary to prevent such compensation from becoming subject to an additional tax
under Code Section 409A.

 

6.9              
Required Release and Other Requirements. As a condition to Executive’s receipt of payments and/or benefits
described in Section 6.5 and Section 6.7, Executive must execute and deliver to the Company a full release of all
claims that Executive may have against the Company, its Subsidiaries and affiliates, and all of their respective officers, employees,
directors, and agents, and that shall include Executive’s agreement not to disparage the Company and not to divulge any
of the Company’s confidential information, in a form acceptable to the Company (the “Release”),
and all applicable revocation periods must have expired prior to the Separation Payment Commencement Date. The Company shall provide
Executive with the form of Release within 10 days following the Date of Termination. In addition, Executive must execute such
other documentation that formalizes Executive’s resignation from the Board, the boards of any affiliates of the Company,
and any other positions with the Company and its affiliates to be eligible for receipt of payments and benefits under Section
6.5 and Section 6.7.

 

6.10          
Additional Rules Regarding Mutual Separation. Executive and the Company may mutually agree to end Executive’s
employment upon conclusion of the Initial Term. To the extent the following requirements are satisfied, such termination of employment
shall be classified as a “Mutual Separation” for purposes of this Agreement:

 

(a)   
Executive shall provide a written letter of resignation to the Board at least one hundred twenty (120) days prior to the
conclusion of the Initial Term;

 

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(b)   
Executive identifies, and obtains Board approval on, a successor to the role of Chief Executive Officer; and

 

(c)   
the Company meets or exceeds established “target” level of performance, as determined by the Board in its sole
discretion, under the 2020 long-term incentive grants tied to performance attainment (“2020 Performance Share Units”),
as may be provided for under the terms of the Incentive Plan and/or award agreement under the Incentive Plan.

 

In
the event of Mutual Separation, and provided Executive executes, and does not thereafter revoke, a Release, Executive shall be
entitled to the following benefits upon Executive’s termination of employment:

 

(x)              
Executive shall continue to vest in all previously granted but unvested shares of Company stock that vest upon the passage
of time, as provided for under the terms of the Incentive Plan and/or award agreement under the Incentive Plan; and

 

(y)              
Executive shall continue to vest in all previously granted but unvested shares of Company stock that vest, in whole or
in part, upon attainment of certain performance criteria, as provided for under the terms of the Incentive Plan and/or award agreement
under the Incentive Plan.

 

Notwithstanding
anything in this Section 6.10 to the contrary, the Company shall have the right to cease or terminate the vesting benefits
in this Section 6.10(x) and Section 6.10(y) above in the event Executive breaches, as determined by the Board in
its sole discretion, any of the covenants set forth in Section 5. Executive shall also make all reasonable efforts to assist
the Company after Executive’s termination of employment with any matters arising during Executive’s employment with
the Company.

 

		7.	Section
                                         409A; Certain Excise Taxes.

 

7.1              
Section 409A Separate Payments. This Agreement is intended to be written, administered, interpreted and construed
in a manner such that no payment or benefits provided under the Agreement become subject to (a) the gross income inclusion set
forth within Section 409A(a)(1)(A) of the Code or (b) the interest and additional tax set forth within Section 409A(a)(1)(B) of
the Code (collectively, “Section 409A Penalties”), including, where appropriate, the construction of
defined terms to have meanings that would not cause the imposition of Section 409A Penalties. Notwithstanding anything to the
contrary in this Agreement, the Company does not guarantee the tax treatment of any payment hereunder and in no event shall the
Company be liable for any Section 409A Penalties that may be imposed on Executive. For purposes of Section 409A of the Code (including,
without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), each payment that Executive may be eligible
to receive under this Agreement shall be treated as a separate and distinct payment and shall not collectively be treated as a
single payment.

 

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7.2              
In-kind Benefits and Reimbursements. Notwithstanding anything to the contrary in this Agreement or in any Company
policy with respect to such payments, in-kind benefits and reimbursements provided under this Agreement during any tax year of
Executive shall not affect in-kind benefits or reimbursements to be provided in any other tax year of Executive and are not subject
to liquidation or exchange for another benefit. Notwithstanding anything to the contrary in this Agreement, reimbursement requests
must be timely submitted by Executive and, if timely submitted, reimbursement payments shall be made to Executive as soon as administratively
practicable following such submission in accordance with the Company’s policies regarding reimbursements, but in no event
later than the last day of Executive’s taxable year following the taxable year in which the expense was incurred. This Section
7.2 shall only apply to in-kind benefits and reimbursements that would result in taxable compensation income to Executive.

 

7.3              
Specified Employee Rule. To the extent applicable, any payments to Executive called for under this Agreement or
under the terms of any other plan, agreement or award, that are determined to be payments of deferred compensation to which Code
Section 409A is applicable and that are paid by reason of Executive’s separation from service, shall be delayed, to the
extent necessary, to avoid a violation of Code Section 409A(a)(2)(B)(i). In general, this Section 7.3 may require that
payments of nonqualified deferred compensation to Executive that would otherwise be made within six (6) months following Executive’s
separation from service shall be paid on the first day of the seventh (7th) month following Executive’s separation from
service if Executive is determined to be a “specified employee” as that term is defined in Code Section 409A(a)(2)(B)(i)
and related Treasury Regulations.

 

7.4              
Certain Excise Taxes. Notwithstanding anything to the contrary in this Agreement, if Executive is a “disqualified
individual” (as defined in Code Section 280G(c)), and the payments and benefits provided for in this Agreement, together
with any other payments and benefits which Executive has the right to receive from the Company or any of its affiliates, would
constitute a “parachute payment” (as defined in Code Section 280G(b)(2)), then the payments and benefits provided
for in this Agreement shall be either (a) reduced (but not below zero) so that the present value of such total amounts and benefits
received by Executive from the Company and its affiliates will be one dollar ($1.00) less than three times Executive’s “base
amount” (as defined in Code Section 280G(b)(3)) and so that no portion of such amounts and benefits received by Executive
shall be subject to the excise tax imposed by Code Section 4999, or (b) paid in full, whichever produces the better net after-tax
position to Executive (taking into account any applicable excise tax under Code Section 4999 and any other applicable taxes).
The reduction of payments and benefits hereunder, if applicable, shall be made by reducing, first, payments or benefits to be
paid in cash hereunder in the order in which such payment or benefit would be paid or provided (beginning with such payment or
benefit that would be made last in time and continuing, to the extent necessary, through to such payment or benefit that would
be made first in time) and, then, reducing any benefit to be provided in-kind hereunder in a similar order. The determination
as to whether any such reduction in the amount of the payments and benefits provided hereunder is necessary shall be made by the
Company in good faith. If a reduced payment or benefit is made or provided and through error or otherwise that payment or benefit,
when

 

    -13-

     

    

aggregated
with other payments and benefits from the Company (or its affiliates) used in determining if a “parachute payment”
exists, exceeds one dollar ($1.00) less than three times Executive’s base amount, then Executive shall immediately repay
such excess to the Company upon notification that an overpayment has been made. Nothing in this Section 7.4 shall require
the Company to be responsible for, or have any liability or obligation with respect to, Executive’s excise tax liabilities
under Code Section 4999.

 

		8.	Indemnification.

 

8.1              
General. The Company agrees that if Executive is made a party or is threatened to be made a party to any Proceeding
by reason of the fact that Executive is or was a trustee, director or officer of the Company, or any predecessor to the Company
(including any sole proprietorship owned by Executive) or any of their affiliates or is or was serving at the request of the Company,
any predecessor to the Company (including any sole proprietorship owned by Executive), or any of their affiliates as a trustee,
director, officer, member, employee or agent of another corporation or a partnership, joint venture, limited liability company,
trust or other enterprise, including, without limitation, service with respect to employee benefit plans, whether or not the basis
of such Proceeding is alleged action in an official capacity as a trustee, director, officer, member, employee or agent while
serving as a trustee, director, officer, member, employee or agent, Executive shall be indemnified and held harmless by the Company
to the fullest extent authorized by Texas or Delaware law, as the same exists or may hereafter be amended, against all Expenses
incurred or suffered by Executive in connection therewith, and such indemnification shall continue as to Executive even if Executive
has ceased to be an officer, director, trustee or agent, or is no longer employed by the Company and shall inure to the benefit
of Executive’s heirs, executors and administrators.

 

8.2              
Enforcement. If a claim or request under this Section 8 is not paid by the Company or on its behalf, within
thirty (30) days after a written claim or request has been received by the Company, Executive may at any time thereafter bring
an arbitration claim against the Company to recover the unpaid amount of the claim or request and if successful in whole or in
part, Executive shall be entitled to be paid also the expenses of prosecuting such suit. All obligations for indemnification hereunder
shall be subject to, and paid in accordance with, applicable Texas or Delaware law.

 

8.3              
Partial Indemnification. If Executive is entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of any expenses, but not, however, for the total amount thereof, the Company shall nevertheless
indemnify Executive for the portion of such expenses to which Executive is entitled.

 

8.4              
Advances of Expenses. Expenses incurred by Executive in connection with any Proceeding shall be paid by the Company
in advance upon request of Executive that the Company pay such expenses, but only in the event that Executive shall have delivered
in writing to the Company (i) an undertaking to reimburse the Company for expenses with respect to which Executive is not entitled
to indemnification and (ii) a statement of Executive’s good faith belief that the standard of conduct necessary for indemnification
by the Company has been met.

 

    -14-

     

    

8.5              
Notice of Claim. Executive shall give to the Company notice of any claim made against Executive for which indemnification
will or could be sought under this Agreement. In addition, Executive shall give the Company such information and cooperation as
it may reasonably require and as shall be within Executive’s power and at such times and places as are convenient for Executive.

 

8.6              
Defense of Claim. With respect to any Proceeding as to which Executive notifies the Company of the commencement
thereof:

 

(a)
   The Company will be entitled to participate therein at its own expense;

 

(b)
   Except as otherwise provided below, to the extent that it may wish,

 

the
Company will be entitled to assume the defense thereof, with counsel reasonably satisfactory to Executive, which in the Company’s
sole discretion may be regular counsel to the Company and may be counsel to other officers and directors of the Company or any
subsidiary. Executive also shall have the right to employ Executive’s own counsel in such action, suit or proceeding if
Executive reasonably concludes that failure to do so would involve a conflict of interest between the Company and Executive, and
under such circumstances the fees and expenses of such counsel shall be at the expense of the Company; and

 

(c)   
The Company shall not be liable to indemnify Executive under this Agreement for any amounts paid in settlement of any action
or claim effected without its written consent. The Company shall not settle any action or claim in any manner which would impose
any penalty that would not be paid directly or indirectly by the Company or limitation on Executive without Executive’s
written consent. Neither the Company nor Executive will unreasonably withhold or delay their consent to any proposed settlement.

 

8.7              
Non-exclusivity. The right to indemnification and the payment of expenses incurred in defending a Proceeding in
advance of its final disposition conferred in this Section 8 shall not be exclusive of any other right which Executive
may have or hereafter may acquire under any statute or certificate of incorporation or by-laws of the Company or any subsidiary,
agreement, vote of shareholders or disinterested directors or trustees or otherwise.

 

		9.	Miscellaneous.

 

9.1              
Legal Fees and Expenses. If any contest or dispute shall arise between the Company and Executive regarding any provision
of this Agreement, the Company shall reimburse Executive for all legal fees and expenses reasonably incurred by Executive in connection
with such contest or dispute, but only if Executive prevails to a substantial extent with respect to Executive’s claims
brought and pursued in connection with such contest or dispute. Such reimbursement shall be made as soon as practicable following
the resolution of such contest or dispute (whether or not appealed) to the extent the Company receives reasonable written evidence
of such fees and expenses.

 

    -15-

     

    

9.2              
Notices. Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered
personally, sent by courier service, sent by facsimile transmission or sent by certified, registered or express mail, postage
prepaid. Any such notice shall be deemed given when so delivered personally or sent by facsimile transmission or, if mailed or
sent by courier service, on the date of actual receipt thereof, as follows:

 

if to the Company, to:

 

Chairman
of the Board, Thomas G. Apel

1360 Post Oak Blvd., Suite 100

 Houston,
Texas 77056

 

if to Executive, to:

 

Frederick H.
Eppinger

44 South Street

Grafton, MA 01519

 

Any party may change
its address for notice hereunder by notice to the other party hereto.

 

9.3              
Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter
hereof and supersedes all prior agreements (including but not limited to prior employment agreements and incentive plans and agreements),
written or oral, with respect thereto, however, the terms of any benefit plans shall remain in force and effect.

 

9.4              
Waivers and Amendments. This Agreement may be amended, superseded, canceled, renewed or extended, and the terms
and conditions hereof may be waived, only by a written instrument signed by the parties or, in the case of a waiver, by the party
waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof nor shall any waiver on the part of any party of any such right, power or privilege hereunder, nor any single or
partial exercise of any right, power or privilege hereunder, preclude any other or further exercise thereof or the exercise of
any other right, power or privilege hereunder.

 

9.5              
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas
(without giving effect to the choice of law provisions thereof).

 

9.6              
Assignment. This Agreement and any rights and obligations hereunder, may not be assigned by Executive and may be
assigned by the Company only to a successor by merger or purchasers of substantially all of the assets of the Company or its affiliates.

 

9.7              
Counterparts. This Agreement may be executed in separate counterparts, each of which when so executed and delivered
shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

    -16-

     

    

9.8              
Headings. The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning
or interpretation of this Agreement.

 

9.9              
No Presumption Against Interest. This Agreement has been negotiated, drafted, edited and reviewed by the respective
parties, and therefore, no provision of this Agreement shall be construed against any party as being drafted by said party.

 

9.10          
No Duty to Mitigate. Executive shall not be required to mitigate damages with respect to the termination of Executive’s
employment under this Agreement by seeking other employment or otherwise, and there shall be no offset against amounts due Executive
under this Agreement on account of subsequent employment except as specifically provided in this Agreement. Additionally, amounts
owed to Executive under this Agreement shall not be offset by any claims the Company may have against Executive, and the Company’s
obligation to make the payments provided for in this Agreement, and otherwise to perform its obligations hereunder, shall not
be affected by any other circumstances, including, without limitation, any counterclaim, recoupment, defense or other right which
the Company may have against Executive or others.

 

9.11          
Dispute Resolution. If any dispute arises out of or relates to this Agreement, or the breach thereof, Executive
and the Company agree to promptly negotiate in good faith to resolve such dispute. If the dispute cannot be settled by the parties
through negotiation, Executive and the Company agree to try in good faith to settle the dispute by mediation under the Commercial
Mediation Rules of the American Arbitration Association before resorting to arbitration or any other dispute resolution procedure.
If the parties are unable to settle the dispute by mediation as provided in the preceding sentence within thirty (30) days of
a written demand for mediation, any claim, controversy or dispute arising out of or relating to this Agreement, or the breach
thereof, shall be settled by binding arbitration before one arbitrator in accordance with the Commercial Arbitration Rules of
the American Arbitration Association. The arbitration shall be conducted in English and held in Houston, Harris County, Texas,
or such other location to which the parties mutually agree. The arbitrator shall among other things determine the validity, scope,
interpretation and enforceability of this arbitration clause. The award shall be a reasoned award and rendered within 30 days
of the conclusion of the arbitration hearing. The decision of the arbitrator shall be final and binding and judgment upon the
award rendered may be entered in any court having jurisdiction thereof. Notwithstanding the foregoing provisions of this Section
9.11, the Company may seek injunctive relief from a court of competent jurisdiction located in Harris County, Texas, in the
event of a breach or threatened breach of any covenant contained in Section 5.

 

9.12          
Binding Agreement. This Agreement shall inure to the benefit of and be binding upon the Company and its respective
successors and assigns and Executive and Executive’s legal representatives.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

    -17-

     

    

 

 

	 	 EXECUTIVE:	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
		/s/
    Fred Eppinger 	 
	 	Fred
    Eppinger		 
	 			 
	 	 	 	 

	 	Company: 	 	 	 
	 	 	 	 	 
	 	STEWART
                    INFORMATION SERVICES

                    CORPORATION
	 
	 	 	 	 	 
	 	 	 	 	 
	 	By:	/s/
    Tom Apel 	 
	 	 	Name:	Thomas
    G. Apel	 
	 	 	Title:	Chairman
    of the Board	 
	 	 	 	 	 

 

 

 

	 

 

 

    -18-

     

    

STEWART
INFORMATION SERVICES CORPORATION LIST OF PERQUISITES

 

Notice of Participation
to Frederick H. Eppinger ("Executive"):

 

Effective September
9, 2019, Executive shall be entitled to the following perquisites:

 

		·	Executive
                                         Long Term Disability Plan (Company paid)

 

		·	Group
                                         Variable Universal Life Insurance (Basic coverage Company paid)

 

		·	Nonqualified
                                         Deferred Compensation Plan provided through the Company

 

		·	Paid
                                         Association / Membership Dues as needed for the position and with Board approval

 

		·	Executive
                                         Development as needed for the position up to $5,000 and with Board approval

 

		·	Housing
                                         Allowance of up to $4,000 per month payable in accordance with payroll policies of the
                                         Company, less such deductions as shall be required to be withheld under applicable law
                                         and regulations and less any Executive voluntary deductions

 

		·	Travel
                                         Expenses for twelve (12) trips annually to Executive’s home base in Grafton, MAExhibit 4.1

    

     

      
        SECTION 382 RIGHTS AGREEMENT

         

      

      
        SECTION 382 RIGHTS AGREEMENT (this “Agreement”), dated as of September 23, 2019, between Photronics, Inc., a Connecticut corporation (the “Company”), and Computershare Trust Company, N.A., a federally chartered trust company, as Rights Agent (the “Rights Agent”).

         

      

      
        WITNESSETH:

         

      

      
        WHEREAS, the Company and certain of its Subsidiaries (as defined below) have generated certain Tax Attributes (as defined below) for
          United States federal income tax purposes and the Company desires to avoid an “ownership change” within the meaning of Section 382 of the Code (as defined below) and to preserve the Company’s ability to utilize such Tax Attributes; and

         

        WHEREAS, the Board of Directors of the Company (the “Board of Directors”) has authorized and
          declared a dividend of one preferred share purchase right (a “Right”) for each share of common stock, par value $0.01 per share, of the Company, outstanding on the Close of Business (as defined below) on
          September 30, 2019 (the “Record Date”) and has authorized the issuance of one Right with respect to (a) each additional Common Share (as defined below) issued by the Company between the Record Date and the
          earliest of (i) the Distribution Date (as defined below), (ii) the Redemption Date (as defined below) and (iii) the Final Expiration Date (as defined below) and (b) each additional Common Share that shall become outstanding after the Distribution
          Date as provided in Section 22, each Right initially representing the right to purchase one one-thousandth of a Preferred Share, subject to adjustment, upon the terms and subject to the conditions hereof;

         

        NOW, THEREFORE, in consideration of the premises, representations and warranties and the mutual covenants and agreements contained herein
          and other good, valuable and sufficient consideration, the receipt of which is hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

         

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

         

        1.1          “Acquiring Person” means any Person (other than an Exempt Person)
            who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial Owner of 4.9% or more of the Common Shares then outstanding, but shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii) any
            employee benefit plan of the Company or of any Subsidiary of the Company, (iv) any entity holding Common Shares for or pursuant to the terms of any such employee benefit plan or (v) any Person who or which, together with all Affiliates and
            Associates of such Person, at the time of the first public announcement of this Agreement, is a Beneficial Owner of 4.9% or more of the Common Shares then outstanding (a “Grandfathered Stockholder”); provided, that, if a Grandfathered Stockholder becomes, after such time, the Beneficial Owner (other than pursuant to the vesting or exercise of any equity awards issued to a member of the Board of Directors
            or pursuant to additional grants of any such equity awards to a member of the Board of Directors) of any additional Common Shares (regardless of whether, thereafter or as a result thereof, there is an increase, decrease or no change in the
            percentage of Common Shares then outstanding Beneficially Owned by such Grandfathered Stockholder) then such Grandfathered Stockholder shall be deemed to be an Acquiring Person unless, upon such acquisition of Beneficial Ownership of additional
            Common Shares, such Person is not the Beneficial Owner of 4.9% or more of the Common Shares then outstanding; provided, further, that upon the first decrease of
            a Grandfathered Stockholder’s Beneficial Ownership below 4.9%, such Grandfathered Stockholder shall no longer be deemed to be a Grandfathered Stockholder and this clause (v) shall have no further force or effect with respect to such Person. 
            For the avoidance of doubt, in the event that, after the time of the first public announcement of this Agreement, any agreement, arrangement or understanding pursuant to which any Grandfathered Stockholder is deemed to be the Beneficial Owner
            of Common Shares expires, is settled in whole or in part, terminates or no longer confers any benefit to or imposes any obligation on the Grandfathered Stockholder, any direct or indirect replacement, extension or substitution of such
            agreement, arrangement or understanding with respect to the same or different Common Shares that confers Beneficial Ownership of Common Shares shall be considered the acquisition of Beneficial Ownership of additional Common Shares by the
            Grandfathered Stockholder and render such Grandfathered Stockholder an Acquiring Person for purposes of this Agreement unless, upon such acquisition of Beneficial Ownership of additional Common Shares, such Person is not the Beneficial Owner of
            4.9% or more of the Common Shares then outstanding.

          

        

      

      
        1

        
          

      

      
        Notwithstanding the foregoing, no Person shall become an Acquiring Person as the result of an acquisition or redemption of Common Shares by the Company which, by reducing the
          number of shares outstanding, increases the proportionate number of shares Beneficially Owned by such Person to 4.9% (or such other percentage as would otherwise result in such Person becoming an Acquiring Person) or more of the Common Shares
          then outstanding; provided, that, if a Person would, but for the provisions of this paragraph, become an Acquiring Person by reason of an acquisition or redemption of Common Shares by the Company and
          shall, after such share acquisitions or redemptions by the Company, become the Beneficial Owner of any additional Common Shares at any time such that the Person is or thereby becomes the Beneficial Owner of 4.9% (or such other percentage as would
          otherwise result in such Person becoming an Acquiring Person) or more of the Common Shares then outstanding (other than Common Shares acquired solely as a result of corporate action of the Company not caused, directly or indirectly, by such
          Person), then such Person shall be deemed to be an Acquiring Person.

         

        Notwithstanding the foregoing, if the Board of Directors, with the concurrence of a majority of the members of the Board of Directors who are not, and are not representatives,
          nominees, Affiliates or Associates of, such Person or an Acquiring Person, determines in good faith that a Person that would otherwise be an Acquiring Person has become such inadvertently (including because (i) such Person was unaware that it
          beneficially owned a percentage of Common Shares that would otherwise cause such Person to be an Acquiring Person or (ii) such Person was aware of the extent of its Beneficial Ownership of Common Shares but had no actual knowledge of the
          consequences of such Beneficial Ownership under this Agreement) and without any intention of changing, obtaining or influencing control of the Company, and such Person divests as promptly as practicable a sufficient number of Common Shares so
          that such Person would no longer be an Acquiring Person, then such Person shall not be deemed to have become an Acquiring Person.  Notwithstanding the foregoing, if a bona fide swaps dealer who would otherwise be an Acquiring Person has become so
          as a result of its actions in the ordinary course of its business that the Board of Directors determines, in its sole discretion, were taken without the intent or effect of evading or assisting any other Person to evade the purposes and intent of
          this Agreement, or otherwise seeking to control or influence the management or policies of the Company, then, and unless and until the Board of Directors shall otherwise determine, such Person shall not be deemed to be an Acquiring Person.

         

        Notwithstanding the foregoing, no Person shall become an Acquiring Person solely as a result of an Exempt Transaction.

         

        Notwithstanding the foregoing, no regulated investment company under Section 851 of the Code shall be deemed to be an Acquiring Person, unless the Board of Directors determines,
          in its reasonable discretion, that such regulated investment company is deemed to Beneficially Own more than 4.9% or more of the shares of Common Stock then outstanding under the applicable standards of Treasury Regulation 1.382-3(a).  In
          determining whether any regulated investment company is an Acquiring Person, the filing of a statement under Section 13 of the Exchange Act with respect to such regulated investment company shall not be deemed to establish that such regulated
          investment company has acquired Beneficial Ownership of 4.9% or more of the shares of Common Stock then outstanding; provided, that the Board of Directors shall be entitled to rely upon any such filing
          unless such regulated investment company provides information that permits the Board of Directors to conclude, in its reasonable discretion, that such regulated investment company has not acquired Beneficial Ownership of 4.9% or more of the
          shares of Common Stock then outstanding pursuant to the standards of Treasury Regulation 1.382-3.

         

        

      

      
        2

        
          

      

      
        Notwithstanding the definition of Acquiring Person under this Agreement, the Board of Directors may also determine that any Person is an Acquiring Person under this Agreement if
          such Person becomes the Beneficial Owner of 4.9% (by value) or more of the Common Stock then outstanding (as the term “stock” is defined in Treasury Regulations Sections 1.382-2(a)(3) and 1.382-2T(f)(18)).

         

          

        1.2          “Affiliate” and “Associate”
            shall have the respective meanings ascribed to such terms in Rule 12b‐2 promulgated under the Exchange Act, as in effect on the date of this Agreement.

         

        1.3          A Person shall be deemed the “Beneficial Owner” of and shall be
            deemed to “Beneficially Own,” or have “Beneficial Ownership” of, any securities:

         

      

      
        1.3.1          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 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);

         

        1.3.2          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;

         

        1.3.3          which such Person or any of such Person’s Affiliates or Associates has (i) 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, 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 (A) 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 (B) is not also then reportable on a statement on Schedule 13D under the Exchange Act (or any comparable or successor report) or
            (ii) 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, the satisfaction of
            regulatory requirements or otherwise) pursuant to any agreement, arrangement or understanding, whether or not in writing (other than customary agreements with and between underwriters and selling group members with respect to a bona fide public
            offering of securities), written or otherwise, 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, that a Person shall not be deemed to be the Beneficial Owner of, or to Beneficially Own, securities tendered pursuant to a tender or 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;

         

        1.3.4          which are Beneficially Owned (within the meaning of the preceding subsections of this Section 1.3),
            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 cooperating in changing, obtaining or influencing control of the Company; provided, that a Person shall not be deemed the Beneficial Owner of, or to
            Beneficially Own, any security solely on the basis of such Person’s, or such Person’s Affiliates or Associates, participation in discussions, negotiations or potential transactions with another Person (including the Company) which discussions,
            negotiations or transactions are for the purposes of restructuring outstanding indebtedness (including debt securities) of the Company; or

        

        

      

      
        3

        
          

      

      
        1.3.5          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 (without regard to any short or similar position) that is specified in (i) one or more filings with the Securities and Exchange Commission by such Person or any of such Person’s Affiliates or Associates or (ii) 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 the amounts specified in the preceding clause (i) or (ii) 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 of
            Directors), as determined by the Board of Directors in its reasonable discretion.

         

      

      
        Notwithstanding anything in this definition of Beneficial Owner to the contrary, the phrase “then outstanding,” when used with reference
          to a Person’s Beneficial Ownership of securities of the Company, means the number of such securities then issued and outstanding together with the number of such securities not then actually issued and outstanding which such Person would be
          deemed to Beneficially Own hereunder.

         

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

         

        1.5          “Close of Business” on any given date means 5:00 p.m., Eastern time,
            on such date; provided, that if such date is not a Business Day, it means 5:00 p.m., Eastern time, on the next succeeding Business Day.

         

        1.6          “Code” means the Internal Revenue Code of 1986, as amended.

         

        1.7          “Common Shares” means the shares of common stock, par value $0.01
            per share, of the Company.  “Common Shares,” when used with reference to any Person other than the Company, means the capital stock (or equity interest) with the greatest voting power of such other Person
            or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person.

         

        1.8          “Common Stock Equivalents” has the meaning set forth in Section
            11.1.3(ii)(C).

         

        1.9          “Current Per Share Market Price” has the meaning set forth in
            Section 11.4.1.

         

        1.10        “Current Value” has the meaning set forth in Section 11.1.3(i)(A).

         

        1.11        “Derivative” has the meaning set forth in Section 1.12.

         

        1.12        “Derivative Position” shall mean 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 (any of the foregoing, a “Derivative”), that (i) has an exercise or 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 and (ii) is capable of being settled, in whole or in part, through delivery of cash or Common Shares (whether on a required or optional basis, and whether such settlement may occur immediately or only after the passage of time, the occurrence of conditions, the satisfaction of regulatory requirements or
            otherwise), in each case regardless of whether (A) it conveys any voting rights in such Common Shares to any Person or (B) any Person (including the holder of such Derivative Position) may have entered into other transactions that hedge its
            economic effect.

        

        

      

      
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        1.13        “Distribution Date” has the meaning set forth in Section 3.1.

         

        1.14        “Earning Power” has the meaning set forth in Section 13.3.

         

        1.15        “Equivalent Preferred Shares” has the meaning set forth in Section
            11.2.

         

        1.16        “Exchange Act” means the Securities Exchange Act of 1934, as
            amended.

         

        1.17        “Exchange Property” has the meaning set forth in Section 24.6.

         

        1.18        “Exchange Ratio” has the meaning set forth in Section 24.1.

         

        1.19        “Exchange Recipients” has the meaning set forth in Section 24.6.

         

        1.20        “Exempt Person” means any Person that the Board of Directors
            determines is exempt from this Agreement, which determination shall be made in the sole and absolute discretion of the Board of Directors; provided, that such determination is made, and no Person shall
            qualify as an Exempt Person unless such determination is made, prior to such time as any Person becomes an Acquiring Person; provided, further, that any Person will cease to be an Exempt Person if the Board of Directors makes a contrary determination with respect to such Person regardless of the reason therefor.

         

        1.21        “Exempt Transaction” means any transaction that the Board of
            Directors determines is exempt from this Agreement, which determination shall be made in the sole and absolute discretion of the Board of Directors; provided, that such determination is made, and no
            transaction shall qualify as an Exempt Transaction unless such determination is made, prior to such time as any Person becomes an Acquiring Person.

         

        1.22        “Exemption Request” has the meaning set forth in Section 36.

         

        1.23        “Final Expiration Date” means the earliest to occur of (i) the Close
            of Business on the day following the certification of the voting results of the Company’s 2020 annual meeting of stockholders, if at such stockholder meeting a proposal to approve this Agreement has not been passed by the affirmative vote of
            the majority of the votes cast at the 2020 annual meeting of stockholders or any other meeting of stockholders of the Company duly held prior to September 22, 2020, (ii) the date on which the Board of Directors determines in its sole discretion
            that (x) this Agreement is no longer necessary for the preservation of material valuable Tax Attributes or (y) the Tax Attributes have been fully utilized and may no longer be carried forward and (iii) the Close of Business on September 22, 2022.

         

        1.24        “Grandfathered Stockholder” has the meaning set forth in Section
            1.1.

         

        1.25        “NASDAQ” means the NASDAQ Global Select Market, the Nasdaq Global
            Market or the Nasdaq Capital Market.

          

        

      

      
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        1.26        “Person” means an individual, a partnership, a sole proprietorship,
            a company, a firm, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, a union, a group acting in concert, a judicial authority, a governmental authority
            or any other entity or association of any kind.

         

        1.27        “Preferred Shares” means shares of Series A Preferred Stock, par
            value $0.01 per share, of the Company having such rights and preferences as are set forth in the form of Certificate of Amendment set forth as Exhibit A, as the same may be amended from time to time.

         

        1.28        “Purchase Price” has the meaning set forth in Section 7.2.

         

        1.29        “Redemption Date” has the meaning set forth in Section 23.2.

         

        1.30        “Redemption Price” has the meaning set forth in Section 23.1.

         

        1.31        “Requesting Person” has the meaning set forth in Section 36.

         

        1.32        “Right Certificate” means a certificate evidencing a Right
            substantially in the form of Exhibit B.

         

        1.33        “Spread” has the meaning set forth in Section 11.1.3(i).

         

        1.34        “Stock Acquisition Date” means the earliest of the date of (i) the
            public announcement by the Company or an Acquiring Person that an Acquiring Person has become such (which, for purposes of this definition, shall include a statement on Schedule 13D filed pursuant to the Exchange Act), (ii) the public
            disclosure of facts by the Company or an Acquiring Person that reveals the existence of an Acquiring Person or indicating that an Acquiring Person has become an Acquiring Person and (iii) the Board of Directors becoming aware of the existence
            of an Acquiring Person.

         

        1.35        “Subsidiary” of any Person means any Person of which a majority of
            the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by such Person.

         

        1.36        “Summary of Rights” means the Summary of Rights to Purchase
            Preferred Shares substantially in the form of Exhibit C.

         

        1.37        “Tax Attributes” means the net operating loss carryovers, capital
            loss carryovers, general business credit carryovers, Section 163(j) deferred interest carryovers, alternative minimum tax credit carryovers and foreign tax credit carryovers, as well as any loss or deduction (whether actual or prospective)
            attributable to a “net unrealized built-in loss” within the meaning of Section 382 of the Code and the Treasury Regulations promulgated thereunder, of the Company or any of its Subsidiaries.

         

        1.38        “Trading Day” means a day on which the principal national securities
            exchange on which a security is listed or admitted to trading is open for the transaction of business or, if a security is not listed or admitted to trading on any national securities exchange, a Business Day.

         

        1.39        “Treasury Regulations” means final, temporary and proposed
            regulation of the Department of Treasury under the Code and any successor regulation, including any amendments thereto.

         

        1.40        “Trust” has the meaning set
            forth in Section 24.6.

          

        

      

      
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        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 hereof (and no implied terms or conditions), and the Rights Agent hereby accepts such appointment.  The Company may from time to time
            appoint such co-rights agents as it may deem necessary or desirable, upon ten calendar days’ prior written notice 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.  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 shall be as the Company shall reasonably determine, provided that such duties
            and determination are consistent with the terms and provisions of this Agreement and that contemporaneously with such appointment, if any, the Company shall notify the Rights Agent in writing thereof.

         

        3.            Issue of Right Certificates.

         

        3.1          Until the earlier of (i) the Close of Business on the tenth day after the Stock Acquisition Date (or, in the
            event that the Board of Directors determines on or before such tenth day to effect an exchange in accordance with Section 24 and determines that a later date is advisable, such later date) or (ii) the Close of Business on the tenth Business Day
            (or such later date as may be determined by action of the Board of Directors prior to such time as any Person becomes an Acquiring Person) after the date of the commencement by any Person (other than the Company, any Subsidiary of the Company,
            any employee benefit plan of the Company or of any Subsidiary of the Company, any entity holding Common Shares for or pursuant to the terms of any such benefit plan or any Exempt Person) of, or the first public announcement of the intention of
            any Person (other than any of the Persons referred to in the preceding parenthetical) to commence, a tender or exchange offer the consummation of which would result in any Person becoming an Acquiring Person (such date being herein referred to
            as the “Distribution Date”) (provided, that if such tender or exchange offer is terminated prior to the occurrence of a Distribution Date, then no Distribution
            Date shall occur as a result of such tender or exchange offer), (A) the Rights will be evidenced by the certificates (or other evidence of book-entry or other uncertificated ownership) for Common Shares registered in the names of the holders
            thereof (which shall also be deemed to be Right Certificates) and not by separate Right Certificates (provided, that each certificate (or other evidence of book-entry or other uncertificated ownership)
            representing Common Shares outstanding as of the Close of Business on the Record Date evidencing the Rights shall be deemed to incorporate by reference the terms of this Agreement, as amended from time to time) and (B) the right to receive
            Right Certificates will be transferable only in connection with the transfer of Common Shares.  As soon as practicable after the Distribution Date, the Company will prepare and execute, the Rights Agent will countersign and the Company will
            send or cause to be sent (and the Rights Agent will, if requested, at the expense of the Company and upon receipt of all relevant information, send) by first-class, postage-prepaid mail, to each record holder of Common Shares as of the
            Distribution 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, a Right Certificate, substantially in the form of Exhibit B, evidencing one Right for each Common Share so held, subject to adjustment as provided herein; provided, that the Rights may instead be recorded in
            book-entry or other uncertificated form, in which case such book-entries or other evidence of ownership shall be deemed to be Right Certificates for all purposes of this Agreement; provided, further, that all procedures relating to actions to be taken or information to be provided with respect to such Rights recorded in book-entry or other uncertificated forms, and all requirements with respect
            to the form of any Right Certificate set forth in this Agreement, may be modified as necessary or appropriate to reflect book-entry or other uncertificated ownership.  As of the Distribution Date, the Rights will be evidenced solely by such
            Right Certificates.

         

        3.2          As soon as practicable after the Record Date, the Company will make available a copy of the Summary of
            Rights to any holder of Rights who may request it prior to the Final Expiration Date.  The Company shall provide the Rights Agent with written notice of the occurrence of the Final Expiration Date and the Rights Agent shall not be deemed to
            have knowledge of the occurrence of the Final Expiration Date, unless and until it shall have received such written notice.

          

        

      

      
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        3.3          Certificates for Common Shares which become outstanding (including reacquired Common Shares referred to in
            the last sentence of this Section 3.3) after the Record Date but prior to the earliest of (i) the Distribution Date, (ii) the Redemption Date and (iii) the Final Expiration Date shall have impressed on,
            printed on, written on or otherwise affixed to them a legend in substantially the following form:

         

      

      
        This certificate also evidences and entitles the holder hereof to certain Rights (as defined in the Rights Agreement) as set forth in a
          Section 382 Rights Agreement between Photronics, Inc. and Computershare Trust Company, N.A., as Rights Agent (or any successor rights agent), dated as of September 23, 2019, as it may from time to time be amended or supplemented pursuant to its
          terms (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal executive offices of the Company.  The Rights are not
          exercisable prior to the occurrence of certain events specified in the Rights Agreement.  Under certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced separately and will no longer be evidenced by this
          certificate.  The Company will mail to the holder of this certificate a copy of the Rights Agreement without charge after receipt of a written request therefor.  Under certain circumstances, Rights that are or were acquired or Beneficially Owned
          by an Acquiring Person (or an Affiliate or Associate of an Acquiring Person (as such terms are defined in the Rights Agreement)), including such Rights held by a subsequent holder, may become null and void.

         

      

      
        Notwithstanding this Section 3.3, the omission of a legend shall not affect the enforceability of any part of this Agreement or the rights of any holder of the Rights.  If the
          Company purchases or acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common Shares shall be deemed canceled and retired so that the Company shall not be entitled to exercise any
          Rights associated with the Common Shares which are no longer outstanding.  Rights shall be issued in respect of all Common Shares issued or disposed of (including upon issuance or reissuance of Common Shares out of authorized but unissued shares)
          after the Record Date but prior to the earliest of the Distribution Date, the Redemption Date and the Final Expiration Date or, in certain circumstances provided in Section 22 hereof, after the Distribution Date.

         

        4.            Form of Right Certificates.  Right Certificates (and the forms of
            election to purchase Preferred Shares and of assignment to be printed on the reverse thereof) shall be substantially the same as Exhibit B  and may have such marks of identification or designation and
            such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement (but which do not affect the rights, duties, liabilities or responsibilities of the
            Rights Agent), 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.  Subject to the other provisions of this Agreement, the Right Certificates shall entitle the holders thereof to purchase such number of one one-thousandths of a Preferred Share as shall be set forth therein at the Purchase Price, but
            the amount and type of securities purchasable upon exercise and the Purchase Price shall be subject to adjustment as provided herein.

          

        

      

      
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        5.            Countersignature and Registration.  Right Certificates shall be
            duly executed on behalf of the Company by any of its Chief Executive Officer, Senior Vice President, Chief Financial Officer, Vice President, General Counsel and Secretary, either manually or by facsimile signature, and shall be attested by the
            Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company, either manually or by facsimile signature or by other customary means of electronic transmission.  Upon written request by the Company, the Right
            Certificates shall be countersigned by the Rights Agent, either manually or by facsimile signature or by other customary means of electronic transmission, by an authorized signatory of the Rights Agent, but it shall not be necessary for the
            same signatory to countersign all of the Right Certificates hereunder.  No Right Certificate shall be valid for any purpose unless so countersigned, either manually or by facsimile or by other customary means of electronic transmission.  If any
            officer of the Company who shall have signed any of the Right Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the Company, such Right Certificates nevertheless
            may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the Person that signed such Right Certificates had not ceased to be such officer of the Company.  Any Right Certificate
            may be signed on behalf of the Company by any Person that, at the actual date of the execution of such Right Certificate, is a proper officer of the Company to sign such Right Certificate, even if at the date of the execution of this Agreement
            such Person was not such an officer.

         

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

         

        6.            Transfer, Split-up, Combination and Exchange of Right Certificates;
              Mutilated, Destroyed, Lost or Stolen Right Certificates.

         

        6.1          Subject to the provisions of Section 14, at any time after the Distribution Date, and prior to the earlier
            of the Redemption Date and the Final Expiration Date, any Right Certificate (other than a Right Certificate representing Rights that have become null and void pursuant to Section 11.1.2 or that have been exchanged pursuant to Section 24) may be
            transferred, split up, combined or exchanged for another Right Certificate, entitling the registered holder to purchase a like number of Preferred Shares as the Right Certificate surrendered then entitled such holder to purchase.  Any
            registered holder desiring to transfer, split up, combine or exchange any Right Certificate shall make such request in writing delivered to the Rights Agent, and shall surrender (together with any required form of assignment and certificate
            duly executed and properly completed) the Right Certificate to be transferred, split up, combined or exchanged at the office or offices of the Rights Agent designated for such purpose, accompanied by a signature guarantee from an eligible
            guarantor institution participating in a signature guarantee program approved by the Securities Transfer Association (a “signature guarantee”) and such other documentation as 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 shall have properly completed and duly executed the certificate contained in the
            form of assignment on the reverse side of such Right Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) of the Rights represented by such Right Certificate or the
            Affiliates or Associates thereof, 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 any securities of the Company, as the Company or the Rights Agent shall reasonably request.  Thereupon, the Rights Agent shall countersign and deliver to the Person entitled thereto a Right Certificate
            or Right Certificates, as the case may be, as so requested.  The Company or the Rights Agent may require payment from the holders of the Right Certificates of a sum sufficient for 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 shall not have any duty or obligation to take any action under any section of this Agreement that requires the payment of taxes and/or charges unless
            and until it is satisfied that all such payments have been made.

          

        

      

      
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        6.2          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 (other than any Right Certificate representing Rights that have become null and void pursuant to Section 11.1.2, that have been redeemed pursuant to Section 23 or that have been exchanged
            pursuant to Section 24), and the identity of the Beneficial Owner (or former Beneficial Owner) of the Rights represented by such Right Certificate or the Affiliates or Associates thereof, 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 any securities of the Company, as the Company
            or the Rights Agent shall request (including a signature guarantee and such other documentation as the Rights Agent may reasonably request) and, in case of loss, theft or destruction, of indemnity or security satisfactory to them, and, at the
            Company’s or the Rights Agent’s request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and, in case of mutilation, upon surrender to the Rights Agent and cancellation of the Right Certificate,
            the Company will make and deliver a new Right Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.

         

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

         

        7.1         The registered holder of any Right Certificate (other than a holder whose Rights have become void pursuant
            to Section 11.1.2, have been redeemed pursuant to Section 23 or have been exchanged pursuant to Section 24) may exercise the Rights evidenced thereby in whole or in part at any time after the Distribution Date upon surrender of the Right
            Certificate, with the appropriate form of election to purchase on the reverse side thereof properly completed and duly executed, to the Rights Agent at the offices of the Rights Agent designated for such purpose, accompanied by a signature
            guarantee and such other documentation as the Rights Agent may reasonably request, together with payment of the Purchase Price for each one one-thousandth of a Preferred Share represented by a Right that is exercised and an amount equal to any
            applicable transfer tax or charges required to be paid pursuant to Section 9, prior to the earliest of (i) the Final Expiration Date, (ii) the time at which the Rights are redeemed pursuant to Section 23 and (iii) the time at which the Rights
            are exchanged pursuant to Section 24.

         

        7.2         The purchase price to be paid upon the exercise of each Right to purchase one one-thousandth of a Preferred
            Share represented by a Right shall initially be $33.63 (the “Purchase Price”) and shall be payable in lawful money of the United States of America in accordance with Section 7.3.  Each Right shall
            initially entitle the holder to acquire one one-thousandth of a Preferred Share upon exercise of the Right.  The Purchase Price and the number of Preferred Shares or other securities for which a Right is exercisable shall be subject to
            adjustment from time to time as provided in Sections 11 and 13.

         

        7.3         Upon receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase
            and certificate properly completed and duly executed, accompanied by payment of the Purchase Price for the number of Rights exercised and an amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate
            in accordance with Section 9 by cash, certified check, cashier’s check or money order payable to the order of the Company, the Rights Agent shall thereupon promptly: (i)(A) requisition from any transfer agent of the Preferred Shares (or from
            the Company if there shall be no such transfer agent, or make available, if the Rights Agent is the transfer agent) certificates for the number of Preferred Shares to be purchased, and the Company hereby irrevocably authorizes its transfer
            agent to comply with all such requests, or (B) requisition from any depositary agent for the Preferred Shares depositary receipts representing such number of Preferred Shares as are to be purchased (in which case certificates for the Preferred
            Shares represented by such receipts shall be deposited by the transfer agent with the depositary agent), and the Company hereby directs any such depositary agent to comply with such request; (ii) when necessary to comply with this Agreement,
            requisition from the Company the amount of cash to be paid in lieu of issuance of fractional Preferred Shares in accordance with Section 14 or Section 24; (iii) after receipt of such certificates or depositary receipts, cause the same to be
            delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names as may be designated in writing by such holder; and (iv) 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.  In the event that the Company is obligated to issue other securities of the Company, pay cash and/or distribute other property pursuant to this Agreement, the
            Company will make all arrangements necessary so that such other securities, cash and/or other property are available for distribution by the Rights Agent, if and when necessary to comply with this Agreement.

          

        

      

      
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        7.4          If the registered holder of any Right Certificate shall exercise less than all the Rights evidenced thereby,
            a new Right Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent and delivered to the registered holder of such Right Certificate or to such holder’s duly authorized assigns, subject
            to the provisions of Section 14.

         

        7.5          Notwithstanding anything in this Agreement or the Right Certificate to the contrary, neither the Rights
            Agent nor the Company shall be obligated to undertake any action with respect to a registered holder of Rights or other securities of the Company upon the occurrence of any purported transfer or exercise as set forth in this Section 7 unless
            such registered holder shall have (i) properly completed and duly executed the certificate contained in the appropriate form of election to purchase set forth on the reverse side of the Right Certificate surrendered for such 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 and the Rights Agent shall reasonably request.

         

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

         

        9.            Status and Availability of Preferred Shares.

         

        9.1          The Company covenants and agrees that 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, the number of Preferred Shares that will be sufficient to permit the exercise in full of all outstanding Rights in accordance with Section 7.

         

        9.2          The Company covenants and agrees that it will take all such action as may be necessary to ensure that all
            Preferred Shares delivered upon exercise of Rights shall, at the time of delivery of the certificates (or entry in the book-entry account system of the Company) for such Preferred Shares (subject to payment of the Purchase Price and compliance
            with all other applicable provisions of this Agreement), be duly and validly authorized and issued and fully paid and non-assessable shares.

         

        9.3          The Company further covenants and agrees that it will pay when due and payable any and all federal and state
            transfer taxes and charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any Preferred Shares upon the exercise of Rights.  The Company shall not, however, be required to pay any transfer tax 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 for the Preferred Shares in a name other than that of, the registered holder
            of the Right Certificate evidencing Rights surrendered for exercise, and shall not be required to issue or to deliver any certificates or depositary receipts for Preferred Shares upon the exercise of any Rights until any such tax or charge
            shall have been paid (any such tax or charge being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to the Company’s and the Rights Agent’s reasonable satisfaction that no such tax is
            due.

          

        

      

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

         

        11.          Adjustment of Purchase Price, Number of Shares or Number of Rights.

         

        11.1        General.

         

      

      
        11.1.1        In the event that the Company shall at any time after the date of this Agreement (i) declare a dividend on
            the Preferred Shares payable in Preferred Shares, (ii) subdivide the outstanding Preferred Shares, (iii) combine the outstanding Preferred Shares into a smaller number of Preferred Shares or (iv) issue 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 Person), except as otherwise provided in this Section 11.1, 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 the number and kind of shares of capital stock issuable on such date, shall be
            proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to such date, the
            holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification; provided, that in no event shall the consideration to be
            paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right.  If an event occurs that would require an adjustment under both this Section 11.1.1 and
            Section 11.1.2 hereof, the adjustment provided for in this Section 11.1.1 shall be in addition to, and shall be made prior to, the adjustment required pursuant to Section 11.1.2 hereof.

         

        11.1.2        Subject to the second paragraph of this Section 11.1.2 and to Section 24, from and after the Stock
            Acquisition Date, each holder of a Right shall have a right to receive, upon exercise of each Right, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares as shall equal the result obtained
            by dividing the current Purchase Price by 50% of the then Current Per Share Market Price of the Common Shares (determined pursuant to Section 11.4) on the Stock Acquisition Date.

          

        

      

      
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        From and after the Stock Acquisition Date, any Rights that are or were acquired or Beneficially Owned by (i) an Acquiring Person (or any Associate or Affiliate of such Acquiring
          Person), (ii) a transferee of any Acquiring Person (or of any such Associate or Affiliate) who becomes such a transferee after the Acquiring Person becomes an Acquiring Person or (iii) a transferee of an Acquiring Person (or of any such Associate
          or Affiliate) who becomes such a transferee prior to or concurrently with the Acquiring Person becoming an Acquiring Person and who receives such Rights (A) with actual knowledge that the transferor is or was an Acquiring Person or (B) pursuant
          to either (x) a transfer (whether or not for consideration) from the Acquiring Person (or any such Associate or Affiliate) to holders of equity interests in such Acquiring Person (or any such Associate or Affiliate) or to any Person with whom the
          Acquiring Person (or such Associate or Affiliate) has any continuing agreement, arrangement, understanding or relationship (whether or not in writing) regarding the transferred Rights or (y) a transfer which the Board of Directors has determined
          is part of a plan, arrangement or understanding (whether or not in writing) which has as a primary purpose or effect of the avoidance of this Section 11.1.2 (each such Person described in the preceding clauses (i) through (iii), an “Excluded Person”) shall, in each such case, be null and void, and any holder of such Rights (whether or not such holder is an Acquiring Person or an Associate or Affiliate of an Acquiring Person) shall
          thereafter have no right to exercise such Rights under any provision of this Agreement.  No Right Certificates shall be issued pursuant to Sections 3, 6, 7.4 or 11 or otherwise that represents Rights that are or have become null and void pursuant
          to the provisions of this paragraph and any Right Certificate delivered to the Rights Agent that represents Rights that are or have become null and void pursuant to the provisions of this paragraph shall, upon receipt of written notice directing
          it to do so, be canceled by the Rights Agent.

         

        11.1.3        If there are not sufficient authorized but unissued Common Shares to permit the exercise in full of the
            Rights in accordance with Section 11.1.2 or the exchange of the Rights in accordance with Section 24, or should the Board of Directors so elect, the Company may with respect to such deficiency, (i) determine the excess (the “Spread”) of (A) the value of the Common Shares issuable upon the exercise of a Right as provided in Section 11.1.2 (the “Current Value”) over (B) the Purchase Price and
            (ii) with respect to each Right, make adequate provision to substitute for such Common Shares, upon payment of the applicable Purchase Price, any one or more of the following having an aggregate value determined by the Board of Directors to be
            equal to the Current Value: (A) cash, (B) a reduction in the Purchase Price, (C) Common Shares or other equity securities of the Company (including shares, or units of shares, of preferred stock which the Board of Directors has determined to
            have the same value as Common Shares (“Common Stock Equivalents”)), (D) debt securities of the Company or (E) other assets, property or instruments.  The Company shall provide the Rights Agent with prompt
            reasonably detailed written notice of any final determination under the previous sentence.

         

        If the Board of Directors shall determine in good faith that additional Common Shares should be authorized for issuance upon exercise in full of the Rights, the Company may
          suspend the exercisability of the Rights in order to seek any authorization of additional shares, decide the appropriate form of distribution to be made and determine the value thereof.  If the exercisability of the Rights is suspended pursuant
          to this Section 11.1.3, the Company shall make a public announcement, and shall promptly deliver to the Rights Agent a statement, stating that the exercisability of the Rights has been temporarily suspended.  When the suspension is no longer in
          effect, the Company shall make another public announcement, and promptly deliver to the Rights Agent, a statement, so stating.  For purposes of this Section 11.1.3, the value of the Common Shares shall be the Current Per Share Market Price of the
          Common Shares (as determined pursuant to Section 11.4.1) as of the Stock Acquisition Date and the value of any Common Stock Equivalent shall be deemed to have the same value as the Common Shares on such date.

         

      

      
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        11.2        If 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 days after such record date) to subscribe for or purchase Preferred Shares (or shares having the same rights, privileges and preferences as the Preferred Shares (“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 then Current Per Share Market Price of the Preferred Shares (as determined pursuant to Section 11.4.2) on such record date, the Purchase Price
            to be in effect after such record date shall be adjusted by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, (i) the numerator of which shall be (A) the number of Preferred Shares outstanding on such
            record date plus (B) the number of Preferred Shares which the aggregate offering price of the total number of Preferred Shares or Equivalent Preferred Shares to be offered (or the aggregate initial conversion price of the convertible securities
            to be offered) would purchase at such Current Per Share Market Price and (ii) the denominator of which shall be (A) the number of Preferred Shares outstanding on such record date plus (B) the number of additional Preferred Shares or Equivalent
            Preferred Shares to be offered for subscription or purchase (or into which the convertible securities to be offered are initially convertible); provided, that in no event shall the consideration to be
            paid upon the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise of one Right.  If such subscription price may be paid in a consideration part or all of which shall be
            in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of Directors, whose determination shall be described in a statement filed with the Rights Agent.  Preferred Shares owned by or held for
            the account of the Company shall not be deemed outstanding for the purpose of any such computation.  Such adjustment shall be made successively whenever such a record date is fixed.  If such rights, options or warrants are not so issued, the
            Purchase Price shall be adjusted to be the Purchase Price that would then be in effect if such record date had not been fixed.

         

        11.3        If the Company fixes a record date for the making of a distribution to all holders of the Preferred Shares
            (including any distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving Person) or evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend payable
            in Preferred Shares) or subscription rights or warrants (excluding those referred to in Section 11.2), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior
            to such record date by a fraction, (i) the numerator of which shall be the then Current Per Share Market Price of the Preferred Shares on such record date, less the fair market value (as determined in good faith by the Board of Directors, whose
            determination shall be described in a statement filed with the Rights Agent) of the portion of the assets or evidences of indebtedness to be distributed or of such subscription rights or warrants applicable to one Preferred Share and (ii) the
            denominator of which shall be the then Current Per Share Market Price of the Preferred Shares; provided, 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 Preferred Shares to be issued upon exercise of one Right.  Such adjustments shall be made successively whenever such a record date is fixed.  If such distribution is not so made, the Purchase Price shall again be
            adjusted to be the Purchase Price that would then be in effect if such record date had not been fixed.

         

        11.4        Current Per Share Market Price.

         

      

      
        11.4.1        For the purpose of any computation hereunder, the “Current Per Share
              Market Price” of any security on any date shall be deemed to be the average of the daily closing prices per share of such security for the 30 consecutive Trading Days immediately prior to such date; provided,
            that if the Current Per Share Market Price of the security is determined during a period (i) following the announcement by the issuer of such security of (A) a dividend or distribution on such security payable in shares of such security or
            other securities convertible into such shares, or (B) any subdivision, combination or reclassification of such security, and (ii) prior to the expiration of 30 Trading Days after the ex-dividend date for such dividend or distribution, or the
            record date for such subdivision, combination or reclassification, then, and in each such case, the Current Per Share Market Price shall be appropriately adjusted to reflect the current market price per share equivalent of such security.  The
            closing price for each day shall be the last sale price or, if no such sale takes place on such day, the average of the closing bid and asked prices, in either case as reported by NASDAQ, or, if on any such date the security is not quoted by
            NASDAQ, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the security selected by the Board of Directors.  If on any such date no such market maker is making a market in the
            security, the fair value of the security on such date as determined in good faith by the Board of Directors shall be used.

          

        

      

      
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        11.4.2        For the purpose of any computation hereunder, the “Current Per Share
              Market Price” of the Preferred Shares shall be determined in accordance with the method set forth in Section 11.4.1.  If the Preferred Shares are not publicly traded, the “Current Per Share Market Price”
            of the Preferred Shares shall be conclusively deemed to be the Current Per Share Market Price of the Common Shares as determined pursuant to Section 11.4.1 (appropriately adjusted to reflect any stock split, stock dividend or similar
            transaction occurring after the date hereof) multiplied by one thousand.  If neither the Common Shares nor the Preferred Shares are publicly held or so listed or traded, “Current Per Share Market Price”
            means the fair value per share as determined in good faith by the Board of Directors, whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes.

         

      

      
        11.5        No adjustment in the Purchase Price shall be required unless such adjustment would require an increase or
            decrease of at least 1% in the Purchase Price; provided, that any adjustments which by reason of this Section 11.5 are not required to be made shall be carried forward and taken into account in any
            subsequent adjustment.  All calculations under this Section 11 shall be made to the nearest cent or to the nearest one one-thousandth of a Preferred Share or one one-thousandth of any other share or security as the case may be.  Notwithstanding
            the first sentence of this Section 11.5, any adjustment required by this Section 11 shall be made no later than three years from the date of the transaction which requires such adjustment.

         

        11.6        If, as a result of an adjustment made pursuant to Section 11.1, the holder of any Right thereafter exercised
            shall become entitled to receive any shares of capital stock of the Company other than Preferred Shares, the number of such other shares so receivable upon exercise of any Right shall thereafter 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 contained in Sections 11.1 through 11.3, inclusive, and the provisions of Sections 7, 9, 10 and 13 with respect to the Preferred
            Shares shall apply on like terms to any such other shares.

         

        11.7        All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price
            hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the number of Preferred Shares purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein.

         

        11.8        Unless the Company exercises its election as provided in Section 11.9, upon each adjustment of the Purchase
            Price as a result of the calculations made in Sections 11.2 and 11.3, each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of one
            one-thousandth of a Preferred Share (calculated to the nearest one one-thousandth of a Preferred Share) obtained by (i) multiplying the number of one one-thousandth of a Preferred Share covered by a Right immediately prior to this adjustment by
            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.

          

        

      

      
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        11.9        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 Preferred Shares purchasable upon the exercise of a Right.  Each of the Rights outstanding after such adjustment of the number of Rights shall be exercisable for the number of Preferred
            Shares for which a Right was exercisable immediately prior to such adjustment.  Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one one-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 shall make a public announcement (with
            prompt written notice thereof to the Rights Agent) of its election to adjust the number of Rights, indicating the record date for the adjustment and, if known at the time, the amount of the adjustment to be made.  The record date may be the
            date on which the Purchase Price is adjusted or any day thereafter but, if the Right Certificates have been distributed, shall be at least ten days after the date of the public announcement.  If Right Certificates have been distributed, upon
            each adjustment of the number of Rights pursuant to this Section 11.9, the Company shall, as promptly as practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing, subject
            to Section 14, the additional Rights to which such holders shall be entitled as a result of such adjustment or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Right
            Certificates held by such holders prior to the date of adjustment, and upon surrender thereof if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment.  Right
            Certificates to be so distributed shall be issued, executed and countersigned in the manner provided for herein and shall be registered in the names of the holders of record of Right Certificates on the record date specified in the public
            announcement.

         

        11.10      Irrespective of any adjustment or change in the Purchase Price or the number of Preferred Shares issuable
            upon the exercise of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number of Preferred Shares which were expressed in the initial Right Certificates issued hereunder.

         

        11.11      Before taking any action that would cause an adjustment reducing the Purchase Price below the then par value
            of the Preferred Shares issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel, be necessary in order that the Company may validly and legally issue fully paid and
            non-assessable Preferred Shares at such adjusted Purchase Price.

         

        11.12      If this Section 11 requires that an adjustment in the Purchase Price be made effective as of a record date
            for a specified event, the Company may defer, until the occurrence of such event, issuing to the holder of any Right exercised after such record date Preferred Shares and other capital stock or securities of the Company, if any, issuable upon
            such exercise over and above the Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, that the Company shall deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares upon the occurrence of the event requiring adjustment.

         

        11.13      Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such
            reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that it in its sole discretion shall determine to be advisable in order that any (i) combination or subdivision of
            the Preferred Shares, (ii) issuance wholly for cash of any Preferred Shares at less than the Current Per Share Market Price, (iii) issuance wholly for cash of Preferred Shares or securities which by their terms are convertible into or
            exchangeable for Preferred Shares, (iv) dividends on Preferred Shares payable in Preferred Shares, or (v) issuance of any rights, options or warrants referred to in Section 11.2 made by the Company after the date of this Agreement to holders of
            its Preferred Shares shall not be taxable to such stockholders.

         

        11.14      If, at any time after the date of this Agreement and prior to the Distribution Date, the Company (i) declares
            or pays any dividend on the Common Shares payable in Common Shares or (ii) effects a subdivision, combination or consolidation of the Common Shares (by reclassification or otherwise other than by payment of dividends in Common Shares) into a
            greater or lesser number of Common Shares, then in any such case (a) the number of one one-thousandths of a Preferred Share purchasable after such event upon exercise of each Right shall be determined by multiplying the number of one
            one-thousandths of a Preferred Share so purchasable immediately prior to such event by a fraction, the numerator of which is the number of Common Shares outstanding immediately before such event and the denominator of which is the number of
            Common Shares outstanding immediately after such event, and (b) each Common Share outstanding immediately after such event shall have issued with respect to it that number of Rights which each Common Share outstanding immediately prior to such
            event had issued with respect to it.  The adjustments provided for in this Section 11.14 shall be made successively whenever such a dividend is declared or paid or such a subdivision, combination or consolidation is affected.

          

        

      

      
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        12.          Certificate of Adjustment.  Whenever an adjustment is made as
            provided in Sections 11 and 13, the Company shall promptly (i) prepare a certificate setting forth such adjustment and a reasonably detailed statement of the facts, computation, methodology and accounting for such adjustment, (ii) promptly file
            with the Rights Agent and with each transfer agent for the Common Shares or the Preferred Shares a copy of such certificate, and (iii) if such adjustment occurs following a Distribution Date, mail a brief summary thereof to each holder of a
            Right Certificate in accordance with Section 25.  The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein contained and shall not be obligated or responsible for calculating any
            adjustment, nor shall the Rights Agent be deemed to have knowledge of such an adjustment or any such event, unless and until it shall have received such certificate.  Notwithstanding the foregoing sentence, but without limiting any of the
            rights or immunities of the Rights Agent, the failure of the Company to make such certification or give such notice shall not affect the validity of, or the force or effect of, the requirement for such adjustment.  Any adjustment to be made
            pursuant to Section 11 or 13 hereof shall be effective as of the date of the event giving rise to such adjustment.

         

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

         

        13.1        If, at any time after a Stock Acquisition Date, (i) the Company consolidates with, or merges with and into,
            any other Person; (ii) any Person consolidates with the Company, or merges with and into the Company, and the Company is the continuing or surviving Person of such merger and, in connection with such merger, all or part of the Common Shares are
            or will be changed into or exchanged for stock or other securities of any other Person (or the Company) or cash or any other property; or (iii) the Company sells or otherwise transfers (or one or more of its Subsidiaries sell or otherwise
            transfer), in one or more transactions, assets or Earning Power aggregating 50% or more of the assets or Earning Power of the Company and its Subsidiaries (taken as a whole) to any other Person other than the Company or one or more of its
            wholly owned Subsidiaries, then proper provision shall be made so that (A) each holder of a Right (except as otherwise provided herein) shall have the right to receive, upon the exercise of each Right in accordance with the terms of this
            Agreement and in lieu of Preferred Shares, such number of Common Shares of such other Person (including the Company as successor thereto or as the surviving Person) equal to the result obtained by dividing the then current Purchase Price by 50%
            of the then Current Per Share Market Price of the Common Shares of such other Person (determined pursuant to Section 11.4) on the date of consummation of such consolidation, merger, sale or transfer; (B) the issuer of such Common Shares shall
            thereafter be liable for, and shall assume, by virtue of such consolidation, merger, sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (C) the term “Company” shall thereafter be deemed to refer to such
            issuer; and (D) such issuer shall take steps (including the reservation of a sufficient number of shares of its common stock in accordance with Section 9) in connection with such consummation as may be necessary to ensure that the provisions
            hereof shall thereafter be applicable in relation to the common stock thereafter deliverable upon the exercise of the Rights.  The ability of the Board of Directors to determine which transaction(s) shall qualify as an Exempt Transaction is
            unaffected by the foregoing, and shall prevail over any other consideration.

         

        13.2        The Company shall not consummate any such consolidation, merger, sale or transfer unless prior thereto the
            Company and such issuer shall have executed and delivered to the Rights Agent a supplemental agreement providing for such issuer’s compliance with this Section 13.  The Company shall not enter into any transaction of the kind referred to in
            this Section 13 if, at the time of such transaction, there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as a result of the consummation of such transaction, would eliminate or
            substantially diminish the benefits intended to be afforded by the Rights.  The provisions of this Section 13 shall apply to successive mergers or consolidations or sales or other transfers.

          

        

      

      
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        13.3        For purposes of this Agreement, the “Earning Power” of the Company
            and its Subsidiaries shall be determined in good faith by the Company’s Board of Directors on the basis of the operating earnings of each business operated by the Company and its Subsidiaries during the three fiscal years preceding the date of
            such determination (or, in the case of any business not operated by the Company or any Subsidiary during three full fiscal years preceding such date, during the period such business was operated by the Company or any Subsidiary).

         

        14.          Fractional Rights and Fractional Shares.

         

        14.1        The Company shall 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 may instead pay to the registered holders of the Right Certificates with regard to which such fractional Rights would otherwise be issuable an amount in cash equal to
            the same fraction of the current market value of a whole Right.  For the purposes of this Section 14.1, the current market value of a whole Right shall be the closing price of the Rights (as determined pursuant to the second sentence of Section
            11.4.1) for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable.

         

        14.2        The Company shall 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 exercise of the Rights, to distribute certificates which evidence fractional Preferred Shares or to register fractional Preferred Shares in the Company’s share register (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 agreement between the Company and a depositary selected by the Company; provided, that such agreement shall provide that the holders of such depositary receipts shall
            have all the rights, privileges and preferences to which they are entitled as Beneficial Owners of the Preferred 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 shall pay to each registered holder of Right Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one
            Preferred Share as the fraction of one Preferred Share that such holder would otherwise receive upon the exercise of the aggregate number of rights exercised by such holder.  For the purposes of this Section 14.2, the current market value of a
            Preferred Share shall be the closing price of a Preferred Share (pursuant to Section 11.4.1) for the Trading Day immediately prior to the date of such exercise.

         

        14.3        For purposes of this Section 14, the closing price for any day shall be the last quoted price or, if not so
            quoted, the average of the high bid and low asked prices as reported by NASDAQ, or if on any such date the Rights or Preferred Shares, as applicable, are not listed on NASDAQ, the average of the closing bid and asked prices as furnished by a
            professional market maker making a market in the Rights or Preferred Shares, as applicable, selected by the Board of Directors.  If on any such date no such market maker is making a market in the Rights or Preferred Shares, as applicable, the
            fair value of the Rights or Preferred Shares, as applicable, on such date as determined in good faith by the Board of Directors shall be used.

         

        14.4        The holder of a Right by the acceptance of the Right expressly waives any right to receive fractional Rights
            or fractional shares upon exercise of a Right (except as provided in this Section 14).

          

        

      

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

         

        15.          Rights of Action.  All rights of action in respect of this
            Agreement, excepting the rights of action given to the Rights Agent under Section 18, are vested in the respective registered holders of the Right Certificates.  Any registered holder of any Right Certificate may, without the consent of the
            Rights Agent or of the holder of any other Right Certificate, on such holder’s own behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise act
            in respect of, such holder’s 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
            Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement by the Company and will be entitled to specific performance of the obligations hereunder, and
            injunctive relief against actual or threatened violations of the obligations hereunder, of the Company.  Except with respect to the rights, interests and immunities of the Rights Agent under this Agreement, the Company shall have the right to
            enforce, and may institute and maintain any suit, action or proceeding with respect to any claims arising from, related to, in connection with or under this Agreement.

         

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

         

        16.1        prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the
            Common Shares;

         

        16.2        after the Distribution Date, the Right Certificates are transferable only on the registry books maintained
            by 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 with the appropriate form of certification, properly completed and duly
            executed, accompanied by a signature guarantee and such other documentation as the Rights Agent may reasonably request;

         

        16.3        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 certificate or, in the case of uncertificated Common Shares, by the book-entry that evidences record ownership of such 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 Certificates or the associated Common Shares certificate or book-entry made by anyone other than the Company or the Rights Agent) for all
            purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary; and

         

        16.4        notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall
            have any liability to any holder of a Right or other Person as a result of the inability of the Company or the Rights Agent to perform any of its or their obligations under this Agreement by reason of any preliminary or permanent injunction or
            other order, decree, judgment or ruling issued by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any
            governmental authority prohibiting or otherwise restraining performance of such obligation.

          

        

      

      
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        17.          Right Certificate Holder Not Deemed a Stockholder.  No holder, as
            such, of any Right Certificate shall be entitled to vote or receive dividends, or be deemed for any purpose the holder of the Preferred Shares or any other securities of the Company that may at any time be issuable on the exercise or exchange
            of the Rights represented thereby, nor shall anything contained herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights of a stockholder of the Company or any right to vote
            for the election of directors or upon any matter submitted to stockholders at any meeting thereof, to give or withhold consent to any corporate action, 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 Rights evidenced by such Right Certificate shall have been exercised or exchanged in accordance with the provisions hereof.

         

        18.          Concerning the Rights Agent.  The Company agrees to pay to the
            Rights Agent reasonable compensation for all services rendered by it hereunder in accordance with a fee schedule to be mutually agreed upon, and, from time to time, on demand of the Rights Agent, to reimburse the Rights Agent for all of its
            reasonable expenses and counsel fees and other disbursements incurred in the preparation, delivery, negotiation, administration, execution and amendment of this Agreement and the exercise and performance of its duties hereunder.  The Company
            also covenants and agrees to indemnify the Rights Agent for, and to hold it harmless against, any and all loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense (including the reasonable fees and expenses
            of legal counsel) that may be paid, incurred or suffered by it, or which it may become subject, 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 judgment of a court of competent jurisdiction), for any action taken, suffered or omitted to be taken by the Rights Agent in connection with the execution, acceptance and, administration of,
            exercise and performance of its duties under this Agreement, including the costs and expenses of defending against any claim or liability arising therefrom or in connection therewith, directly or indirectly.  The provisions under this Section
            18 and Section 20 below shall survive the expiration of the Rights and the termination of this Agreement and the resignation, replacement or removal of the Rights Agent.  The reasonable costs and expenses incurred in enforcing this right of
            indemnification shall be paid by the Company to the extent that the Rights Agent is successful in so enforcing its right of indemnification.

         

        The Rights Agent shall be fully authorized and protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection with its
          acceptance and administration of this Agreement and the exercise and performance of its duties hereunder, in each case in reliance upon any Right Certificate or certificate for Preferred Shares or for other securities of the Company, instrument
          of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, instruction, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where
          necessary, verified or acknowledged by the proper Person or Persons, or otherwise upon the advice of counsel as set forth in Section 20.  The Rights Agent shall not be deemed to have knowledge of any event of which it was supposed to receive
          notice thereof hereunder, and the Rights Agent shall be fully protected and shall incur no liability for failing to take action in connection therewith, unless and until it has received such notice in writing.

         

        Notwithstanding anything in this Agreement to the contrary, in no event will the Rights Agent be liable for special, punitive, indirect, incidental or consequential loss or
          damage of any kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage and regardless of the form of action.

        

        

        
          20

          
            

        

        
          
          
            
              19.          Merger or Consolidation or Change of Name of Rights Agent.  Any Person into which the
                  Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any
                  Person succeeding to the stock transfer or other stockholder services business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper
                  or any further act on the part of any of the parties hereto; provided that such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section 21.  The
                  purchase of all or substantially all of the Rights Agent’s assets employed in the performance of transfer agent activities shall be deemed a merger or consolidation for purposes of this Section 19.  If, at the time such successor Rights
                  Agent shall succeed 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.  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.  In all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement.

               

              If, at any time, the name of the Rights Agent changes and any of the Right Certificates have been countersigned but not delivered, the Rights Agent may adopt the countersignature under its prior
                name and deliver Right Certificates so countersigned.  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. 
                In all such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement.

               

              20.          Rights and Duties of Rights Agent.  The Rights Agent undertakes to perform only the
                  duties and obligations expressly set forth in this Agreement and no implied duties or obligations shall be read into this Agreement against the Rights Agent.  The Rights Agent shall perform its duties and obligations hereunder upon the
                  following terms and conditions, by all of which the Company and the holders of Right Certificates, by their acceptance thereof, shall be bound:

               

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

               

              20.2        Whenever in the performance of its duties under this Agreement, the Rights Agent shall deem it necessary or desirable that any
                  fact or matter be proved or established by the Company prior to taking, suffering or omitting to take any action hereunder, such fact or matter (unless other evidence in respect thereof is specifically prescribed herein) may be deemed to
                  be conclusively proved and established by a certificate signed by a Person reasonably believed by the Rights Agent to be any one of the Chief Executive Officer, Senior Vice President, Chief Financial Officer, Vice President, General
                  Counsel and Secretary of the Company and delivered to the Rights Agent, and such certificate shall be full authorization to the Rights Agent and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or
                  omitted to be taken by it under the provisions of this Agreement in reliance upon such certificate.  The Rights Agent shall have no duty to act without such a certificate as set forth in this Section 20.2.

               

              20.3        The Rights Agent shall not be liable hereunder to the Company and any other Person, except 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 judgment of a court of competent jurisdiction).  Notwithstanding anything in this Agreement to the contrary, any
                  liability of the Rights Agent under this Agreement will be limited to the amount of annual fees paid by the Company to the Rights Agent during the 12 months immediately preceding the event for which recovery from the Rights Agent is being
                  sought.

               

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

               

            

            
              21

              
                

            

            
              20.5        The Rights Agent shall not have any liability for or be under any responsibility in respect of the validity of this Agreement or
                  the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the legality or validity or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for
                  any determination by the Board of Directors with respect to the Rights or breach by the Company of any covenant or failure by the Company to satisfy any condition contained in this Agreement or in any Right Certificate; nor shall it be
                  liable or responsible for any modification by or order of any court, tribunal or governmental authority in connection with the foregoing, any change in the exercisability of the Rights or any adjustment required under the provisions of
                  Sections 11 or 13 or 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 Rights evidenced by Right
                  Certificates after receipt of a certificate furnished pursuant to Section 12 describing such adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any
                  shares of Preferred Shares to be issued pursuant to this Agreement or any Right Certificate or as to whether any Preferred Shares will, when so issued, be validly authorized and issued, fully paid, and non-assessable.

               

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

               

              20.7        The Rights Agent is hereby authorized and directed to accept written instructions with respect to the performance of its duties
                  hereunder and certificates delivered pursuant to any provision hereof from any Person reasonably believed by the Rights Agent to be any one of the Chief Executive Officer, Senior Vice President, Chief Financial Officer, Vice President,
                  General Counsel and Secretary of the Company, and to apply to such officers for advice or instructions in connection with its duties under this Agreement, and such advice or instructions shall provide full authorization and protection to
                  the Rights Agent, and the Rights Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance with the written advice or instructions of any such officer or for any delay in acting while waiting for
                  these instructions.  The Rights Agent shall be fully authorized and protected in relying upon the most recent advice or instructions received by any such officer.  Any application by the Rights Agent for written instructions from the
                  Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights Agent with respect to its duties or obligations under this Agreement.

               

              20.8        The Rights Agent and any affiliate, stockholder, director, officer, agent, representative 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, in each case in compliance with applicable laws.  Nothing herein shall preclude the Rights Agent and such other Persons from acting in any other capacity for the Company
                  or for any other Person.

               

              20.9        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.  The Rights Agent shall not be answerable or accountable for any act, omission, default, neglect, or misconduct of any such attorneys or agents or for any loss to the Company or any other
                  Person resulting from any such act, omission, default, neglect or misconduct, absent gross negligence or bad faith in the selection and continued employment of such attorneys or agents thereof (which gross negligence or bad faith must be
                  determined by a final, non-appealable judgment of a court of competent jurisdiction).

               

              20.10      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 the Rights Agent believes that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to
                  it.

               

            

            
              22

              
                

            

            
              20.11      The Rights Agent shall not be required to take notice or be deemed to have notice of any fact, event or determination (including
                  any dates or events defined in this Agreement or the designation of any Person as an Acquiring Person, Affiliate or Associate or whether any Requesting Person has been designated as an Exempt Person) under this Agreement unless and until
                  the Rights Agent shall be specifically notified in writing by the Company of such fact, event or determination, and all notices or other instruments required by this Agreement to be delivered to the Rights Agent must, in order to be
                  effective, be received by the Rights Agent as specified in Section 26, and in the absence of such notice so delivered, the Rights Agent may conclusively assume no such event or condition exists.

               

              20.12      The Rights Agent shall have no responsibility or liability for any diminution of the funds received by the Rights Agent under this
                  Agreement that are to be distributed or applied by it in the performance of services hereunder and which may result from any deposit made by the Rights Agent in accordance with this paragraph, including any losses resulting from a default
                  by any bank, financial institution or other third party. The Rights Agent may from time to time receive interest, dividends or other earnings in connection with such deposits. The Rights Agent shall not be obligated to pay such interest,
                  dividends or earnings to the Company, any holders of the Rights Certificate or any other Person.

               

              20.13      The Rights Agent may rely on and be fully authorized and protected in acting or failing to act upon (a) any guaranty of signature
                  by an “eligible guarantor institution” that is a member or participant in the Securities Transfer Agents Medallion Program or other comparable “signature guarantee program” or insurance program in addition to, or in substitution for, the
                  foregoing; or (b) any law, act, regulation or any interpretation of the same even though such law, act, or regulation may thereafter have been altered, changed, amended or repealed.

               

              20.14      The Rights Agent shall not be liable or responsible for any failure of the Company to comply with any of its obligations relating
                  to any registration statement filed with the Securities and Exchange Commission or this Agreement, including without limitation obligations under applicable regulation or law.

               

              21.          Change of Rights Agent.  The Rights Agent or any successor Rights Agent may resign and be
                  discharged from its duties under this Agreement upon 30 days’ notice in writing mailed to the Company and, in the event that the Rights Agent or one of its Affiliates is not also the transfer agent for the Company in accordance with
                  Section 26, to each transfer agent of the Common Shares and the Preferred Shares in accordance with Section 26.  The Company may remove the Rights Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights
                  Agent or successor Rights Agent in accordance with Section 26, as the case may be, and to each transfer agent of the Common Shares and the Preferred Shares by registered or certified mail, and, after the Distribution Date, to the holders
                  of the Right Certificates by first-class mail.  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 as Rights Agent under this Agreement as of the effective date of such termination, and the Company shall be responsible for sending any required notice.  If the Rights Agent shall resign or be removed or shall
                  otherwise become incapable of acting, the Company shall appoint a successor to the Rights Agent.  If the Company shall fail to make such appointment within a period of 30 days after giving notice of such removal or after it has been
                  notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent, then the incumbent Rights Agent or registered holder of any Right Certificate may apply to any court of competent jurisdiction for the
                  appointment of a new Rights Agent.  Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (i) a Person (other than a natural person) organized and doing business under the laws of the United States or
                  of any state of the United States, in good standing, which is authorized under such laws to exercise stock transfer powers, is subject to supervision or examination by federal or state authority, and has, along with its Affiliates, at the
                  time of its appointment as Rights Agent a combined capital and surplus of at least $50 million or (ii) an Affiliate of a Person described in clause (i) of this sentence.  After appointment, the successor Rights Agent shall be vested with
                  the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed, and the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at
                  the time held by it hereunder, and shall execute and deliver any further assurance, conveyance, act or deed necessary for the purpose but such predecessor Rights Agent shall not be required to make any additional expenditure or assume any
                  additional liability in connection with the foregoing, and shall thereafter be discharged from all duties and obligations hereunder.  Not later than the effective date of any such appointment the Company shall file notice thereof in
                  writing with the predecessor Rights Agent and each transfer agent of the Common Shares and the Preferred Shares, and, after the Distribution Date, mail a notice in writing to the registered holders of the Right Certificates.  Failure to
                  give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may
                  be.

               

            

            
              23

              
                

            

            
              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 its Board of Directors to reflect any adjustment or change in the
                  Purchase Price and the number or kind or class of shares or other securities or property purchasable under the Right Certificates made in accordance with the provisions of this Agreement.  In addition, in connection with the issuance or
                  sale of Common Shares following the Distribution Date and prior to the earlier of the Redemption Date and the Final Expiration Date, the Company may, with respect to Common Shares so issued or sold, issue Right Certificates representing
                  the appropriate number of Rights in connection with such issuance or sale; provided, that no such Right Certificates may be issued if, and to the extent that, the Company, in its sole discretion,
                  determines that such issuance would jeopardize or endanger the value or availability to the Company of the Tax Attributes or otherwise create a significant risk of material adverse tax consequences to the Company.

               

              23.          Redemption; Repurchase.

               

              23.1        The Board of Directors may, at its option, at any time prior to the earlier to occur of (i) the Close of Business on the
                  tenth day following the Stock Acquisition Date (or, if the tenth day following the Stock Acquisition Date occurs before the Record Date, the Close of Business on the Record Date) and (ii) the Final Expiration Date, redeem all, but not
                  less than all, of the then outstanding Rights at a redemption price of $0.0001 per Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (the “Redemption Price”).  The redemption of the Rights by the Board of Directors may be made effective at such time, on such basis and subject to such conditions as the Board of Directors in its sole
                  discretion may establish.

               

              23.2        Immediately upon the time of the effectiveness of the redemption of the Rights or such earlier time as may be determined by the
                  Board of Directors in the action ordering such redemption (although not earlier than the time of such action) (the “Redemption Date”), and without any further action and without any notice, the
                  right to exercise the Rights shall terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price.  The Company shall promptly give public notice of any such redemption (with prompt written
                  notice to the Rights Agent); provided, that the failure to give, or any defect in, any such notice shall not affect the validity of such redemption.  Within ten Business Days after action of the
                  Board of Directors ordering the redemption of the Rights, the Company shall mail, or cause the Rights Agent to mail (at the expense of the Company), a notice of redemption to the holders of the then outstanding Rights at their last
                  addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Shares.  Any notice mailed in the manner herein provided shall be deemed
                  given, whether or not the holder receives the notice.  If the payment of the Redemption Price is not included with such notice, each such notice shall state the method by which the payment of the Redemption Price will be made.

               

            

            
              24

              
                

            

            
              23.3        Neither the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in
                  any manner other than that specifically set forth in this Section 23 or in Section 24, other than in connection with the purchase of Common Shares prior to the Distribution Date.

               

              24.          Exchange.

               

              24.1        The Board of Directors may, at its option, at any time after a Stock Acquisition Date, mandatorily exchange all or part of the
                  then outstanding and exercisable Rights (which excludes Rights that have become void pursuant to Section 11.1.2) for Common Shares at an exchange ratio of two Common Shares per one one-thousandth of a Preferred Share represented by a
                  Right, appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (the “Exchange Ratio”).  From and after the occurrence of an event
                  specified in Section 13.1, any Right that theretofore has not been exchanged pursuant to this Section 24 shall thereafter be exercisable only in accordance with Section 13 and may not be exchanged pursuant to this Section 24.  The
                  exchange of the Rights by the Board of Directors may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish.

               

              24.2        Immediately upon the action of the Board of Directors ordering the exchange of any Rights pursuant to Section 24.1, and without
                  any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder of such Rights shall be to receive that number of Common Shares equal to the number of such Rights held
                  by such holder multiplied by the Exchange Ratio.  The Company shall promptly give reasonably detailed written notice of any such exchange to the Rights Agent, and shall promptly give public notice of any such exchange; provided, that the failure to give, or any defect in, any such notice shall not affect the validity of such exchange.  Within ten Business Days after action by the Board of Directors ordering the
                  exchange of any Rights pursuant to Section 24.1, the Company shall mail, or cause the Rights Agent to mail, a notice of any such exchange to the holders of such Rights at their last addresses as they appear upon the registry books of the
                  Rights Agent.  Any notice mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice.  Each such notice of exchange will state the method by which the exchange of the Common Shares for Rights
                  will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged.  Any partial exchange shall be effected pro rata
                  based on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 11.1.2) held by each holder of Rights.

               

              24.3        In any exchange pursuant to this Section 24, the Company, at its option, may substitute Preferred Shares or Common Stock
                  Equivalents for Common Shares exchangeable for Rights at the initial rate of one one-thousandth of a Preferred Share (or an appropriate number of Common Stock Equivalents) for each Common Share, as appropriately adjusted.

               

              24.4        If there shall not be sufficient Common Shares, Preferred Shares or Common Stock Equivalents authorized but unissued to permit any
                  exchange of Rights as contemplated in accordance with this Section 24, the Company shall use its reasonable efforts to authorize additional Common Shares, Preferred Shares or Common Stock Equivalents for issuance upon exchange of the
                  Rights.

               

              24.5        The Company shall not be required to issue fractions of Common Shares or to distribute certificates which evidence fractional
                  Common Shares.  In lieu of issuing fractional Common Shares, the Company may instead pay to the registered holders of the Right Certificates with regard to which such fractional Common Shares would otherwise be issuable an amount in cash
                  equal to the same fraction of the current per share market value of a whole Common Share.  For the purposes of this Section 24.5, the current per share market value of a whole Common Share shall be the closing price of a Common Share (as
                  determined pursuant to the second sentence of Section 11.4.1) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24.

               

            

            
              25

              
                

            

            
              24.6        Notwithstanding anything in this Section 24 to the contrary, the exchange of the Rights may be made effective at such time, on
                  such basis and subject to such conditions as the Board of Directors in its sole discretion may establish.  Without limiting the preceding sentence, the Board of Directors may (i) in lieu of issuing Common Shares or any other securities
                  contemplated by this Section 24 to the Persons entitled thereto in connection with the exchange (such Persons, the “Exchange Recipients,” and such shares and other securities, together with any
                  dividends or distributions made on such shares or other securities, the “Exchange Property”), issue, transfer or deposit the Exchange Property to or into a trust or other entity (the “Trust”) created upon such terms as the Board of Directors may determine to hold all or a portion of the Exchange Property for the benefit of the Exchange Recipients, (ii) permit the Trust to exercise
                  all of the rights that a stockholder of record would possess with respect to any shares deposited in the Trust and (iii) direct that all holders of Rights entitled to receive Exchange Property shall be entitled to receive such Exchange
                  Property only from the Trust and only upon compliance with the relevant terms and provisions of the Trust and subject to such conditions as the Board of Directors in its sole discretion may establish.  Prior to effecting an exchange of
                  Rights, the Company may require (or cause the trustee or other governing body of the Trust to require), as a condition thereof, that any Exchange Recipient provide evidence that it is not an Acquiring Person, including evidence of the
                  identity of the current or former Beneficial Owners thereof and their Affiliates and Associates.  If any Person shall fail to comply with any request to provide such evidence, the Company shall be entitled conclusively to deem the Rights
                  held by such Person to be null and void pursuant to Section 11.1.2 and not transferable or exercisable or exchangeable in connection herewith.  In the event that the Board of Directors determines, before the Distribution Date, to effect
                  an exchange, the Board of Directors may delay the occurrence of the Distribution Date to such time as the Board of Directors deems advisable.

               

              25.          Notice of Certain Events.

               

              25.1        If the Company shall after the Distribution Date propose: (i) to pay any dividend payable in stock of any class to the holders of
                  its Preferred Shares or to make any other distribution to the holders of its Preferred Shares (other than a regular quarterly cash dividend); (ii) to offer to the holders of its Preferred Shares rights 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 any other Person, 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 50% or more of the assets or Earning Power of the Company and its Subsidiaries (taken as a whole) to any other Person; (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 consolidation of the Common Shares (by reclassification or otherwise than by payment of dividends in Common
                  Shares), then, in each such case, the Company shall give to each holder of a Right Certificate and the Rights Agent, in accordance with Section 26, a reasonably detailed notice of such proposed action, which shall specify the record date
                  for the purposes of such stock dividend, or distribution of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution or winding-up is to take place and the date of
                  participation therein by the holders of the Common Shares or Preferred Shares or both, if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least ten days
                  prior to the record date for determining holders of the Preferred Shares for purposes of such action, and in the case of any such other action, at least ten 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 or Preferred Shares or both, whichever shall be the earlier.

               

            

            
              26

              
                

            

            
              25.2        The Company shall, as soon as practicable after a Stock Acquisition Date, give to the Rights Agent and each holder of a Right
                  Certificate, in accordance with Section 26, a notice that describes the transaction in which a Person became an Acquiring Person and the consequences of the transaction to holders of Rights under Section 11.1.2.

               

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

               

            

            
              Photronics, Inc.

              15 Secor   Road

              Brookfield, Connecticut 06804

            

            
              Attention:  Richelle E. Burr, Esq., General Counsel

               

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

               

            

            
              Withers Bergman LLP

              1700 East Putnam Avenue

              Greenwich, Connecticut 06870

            

            
              Attention:  M. Ridgway Barker, Esq.

               

            

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

               

            

            
              Computershare Trust Company, N.A.

              150 Royall Street

              Canton, MA 02021

              Attention:  Client Services

               

            

            
              Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate shall be sufficiently given or made if in writing,
                when sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company.

               

              27.          Supplements and Amendments.  The Company may from time to time, and the Rights Agent
                  shall if the Company so directs in writing, supplement or amend this Agreement without the approval of any holders of Right Certificates in order to cure any ambiguity, to correct or supplement any provision contained herein which may be
                  defective or inconsistent with any other provisions herein, or to make any change to or delete any provision hereof or to adopt any other provisions with respect to the Rights which the Company may deem necessary or desirable; provided, that, from and after such time as any Person becomes an Acquiring Person, this Agreement shall not be amended or supplemented in any manner which would adversely affect the interests of the
                  holders of Rights (other than an Acquiring Person and its Affiliates and Associates).  For the avoidance of doubt, the Company shall be entitled to adopt and implement such procedures and arrangements (including with third parties) as it
                  may deem necessary or desirable to facilitate the exercise, exchange, trading, issuance or distribution of the Rights (and Preferred Shares) as contemplated hereby and to ensure that an Excluded Person does not obtain the benefits
                  thereof, and amendments in respect of the foregoing shall not be deemed to adversely affect the interests of the holders of Rights.  Any supplement or amendment must be evidenced by a writing signed by the Company and the Rights Agent,
                  subject to certification by any of the officers of the Company listed in Section 20.2 that any such supplement or amendment complies with this Section 27.  Notwithstanding anything in this Agreement to the contrary, the Rights Agent shall
                  not be required to execute any supplement or amendment to this Agreement that it has determined would adversely affect its own rights, duties, obligations or immunities hereunder.  No supplement or amendment to this Agreement shall be
                  effective unless duly executed by the Rights Agent.

               

            

            
              27

              
                

            

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

               

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

               

              30.          Severability.  If any term, provision, covenant or restriction of this Agreement is held
                  by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way
                  be affected, impaired or invalidated; provided, that, if such excluded provision shall affect the rights, immunities, liabilities, duties or obligations of the Rights Agent, the Rights Agent shall
                  be entitled to resign immediately upon written notice to the Company.

               

              31.          Governing Law.  This Agreement and each Right Certificate issued hereunder shall be
                  deemed to be a contract made under the laws of the State of Connecticut and for all purposes shall be governed by and construed in accordance with the laws of the State of Connecticut applicable to contracts to be made and performed
                  entirely within the State of Connecticut; provided, that all provisions regarding the rights, duties, liabilities and obligations of the Rights Agent shall be governed by and construed in
                  accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within the State of New York.

               

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

               

              33.          Headings.  The headings set forth in this Agreement have been inserted for convenience of
                  reference only, shall not be considered a part of this Agreement and shall not limit, modify or affect in any way the meaning or interpretation of this Agreement.

               

              34.          Administration.  Other than with respect to rights, duties, obligations and immunities of
                  the Rights Agent, the Board of Directors, or a duly authorized committee of the Board of Directors, shall have the exclusive power and authority to administer and interpret the provisions of this Agreement and to exercise all rights and
                  powers specifically granted to the Board of Directors or the Company or as may be necessary or advisable in the administration of this Agreement.  All such actions, calculations, determinations and interpretations which are done or made
                  by the Board of Directors, or a duly authorized committee of the Board of Directors, in good faith shall be final, conclusive and binding on the Company, the Rights Agent, holders of the Rights and all other parties and shall not subject
                  the Board of Directors, or a duly authorized committee of the Board of Directors, to any liability to the holders of the Rights.  The Rights Agent is entitled always to assume that the Board of Directors, or a duly authorized committee of
                  the Board of Directors, as applicable, acted in good faith and shall be fully protected and incur no liability in reliance thereon.

               

            

            
              28

              
                

            

            
              35.          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 acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of
                  any utilities, communications, or 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.

               

              36.          Process to Seek Exemption.  Any Person who desires to effect any acquisition of Common
                  Stock that might, if consummated, result in such Person beneficially owning 4.9% or more of the shares of Common Stock then outstanding (such Person, a “Requesting Person”) may request that the
                  Board of Directors grant an exemption with respect to such acquisition under this Agreement so that such Person would be deemed to be an Exempt Person for purposes of this Agreement (such request, an “Exemption

                    Request”).  An Exemption Request shall be in proper form and shall be delivered by registered mail, return receipt requested, to the Secretary of the Company at the principal executive office of the Company.  The Exemption
                  Request shall be deemed made upon receipt by the Secretary of the Company.  To be in proper form, an Exemption Request shall set forth (i) the name and address of the Requesting Person, (ii) the number and percentage of shares of Common
                  Stock then Beneficially Owned by the Requesting Person, together with all Affiliates and Associates of the Requesting Person and (iii) a reasonably detailed description of the transaction or transactions by which the Requesting Person
                  would propose to acquire Beneficial Ownership of Common Stock aggregating 4.9% or more of the shares of Common Stock then outstanding and the maximum number and percentage of shares of Common Stock that the Requesting Person proposes to
                  acquire.  The Board of Directors shall endeavor to respond to an Exemption Request within 20 Business Days after receipt of such Exemption Request; provided, that the failure of the Board of
                  Directors to make a determination within 20 Business Days after receipt of an Exemption Request shall be deemed to constitute denial by the Board of Directors of the Exemption Request.  The Requesting Person shall respond promptly to
                  reasonable and appropriate requests for additional information from the Company or the Board of Directors and its advisors to assist the Board of Directors in making its determination.  The Board of Directors shall only grant an exemption
                  in response to an Exemption Request if it receives, at the request of the Board of Directors, a report from the Company’s advisors to the effect that the acquisition of Beneficial Ownership of Common Stock by the Requesting Person does
                  not create a significant risk of material adverse tax consequences to the Company or the Board of Directors otherwise determines in its sole and absolute discretion that the exemption is in the best interests of the Company.  Any
                  exemption granted hereunder may be granted in whole or in part, and may be subject to limitations or conditions (including a requirement that the Requesting Person agree that it will not acquire Beneficial Ownership of shares of Common
                  Stock in excess of the maximum number and percentage of shares approved by the Board of Directors), in each case as and to the extent the Board of Directors shall determine necessary or desirable to provide for the protection of the
                  Company’s Tax Attributes.  Any Exemption Request may be submitted on a confidential basis and, except to the extent required by applicable law, the Company shall maintain the confidentiality of such Exemption Request and the determination
                  of the Board of Directors with respect thereto, unless the information contained in the Exemption Request or the determination of the Board of Directors with respect thereto otherwise becomes publicly available.  The Exemption Request
                  shall be considered and evaluated by the directors who are independent of the Requesting Person and disinterested with respect to the Exemption Request and the action of a majority of such directors shall be deemed to be the determination
                  of the Board of Directors for purposes of such Exemption Request.

               

              37.          Construction.  Unless otherwise expressly stated in this Agreement: (i)  the words
                  “hereof”, “hereby” and “hereunder,” and correlative words, refer to this Agreement as a whole and not any particular provision; (ii)  the words “includes” and “including”, and correlative words, are deemed to be followed by the phrase
                  “without limitation;” (iii) the word “written” and the phrase “in writing,” and correlative words and phrases, include electronic and facsimile transmissions; (iv) the words “asset” and “property” are synonymous and include owned, leased
                  and licensed real, personal and intangible property of every kind, including contractual and other rights, tort claims, cash, securities and information; (v) the masculine, feminine or neuter form of a word includes the other forms of
                  such word and the singular and plural forms of a word have correlative meanings; (vi) the word “or” is not exclusive; (vii) the words “will” and “shall” shall be construed to have the same meaning and effect; (viii) references to a Person
                  shall include the successors and assigns thereof; (ix) references to a Section or Exhibit mean a Section of, or an Exhibit to, this Agreement; and (x) capitalized terms that are correlative to terms defined in Section 1 shall have
                  correlative meanings.

               

            

            
              [Signature Pages Follow]

               

            

            
              29

              
                

            

            
              IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by their duly authorized representatives as of the day and year
                first above written.

               

            

            	 	
                    PHOTRONICS, INC.

                  
	 	

                  

            	 	
                    By:

                  	/s/ Peter S. Kirlin

                  	

                  

            	 	
                    Name:

                  	Peter S. Kirlin

                  
	 	
                    Title:

                  	Chief Executive Officer

                  

            
              

              

            

            	 	
                    COMPUTERSHARE TRUST COMPANY, N.A.

                  
	 	

                  	

                  

            	 	
                    By:

                  	
                    /s/ Megan M. King

                    

                  	

                  

            	 	
                    Name:

                  	Megan M. King

                  
	 	
                    Title:

                  	VP & Manager, Relationship Management

                  

            

            

            
              [Signature Page to Section 382 Rights Agreement]

               

              

            

            
              
                

            

            
              EXHIBIT A

               

            

            
              CERTIFICATE OF AMENDMENT

              with respect to

              SERIES A PREFERRED STOCK

              of

              PHOTRONICS, INC.

            

            
              (Pursuant to Sections 33-666 and 33-800 of the Connecticut Business Corporation Act)

               

            

            
              Photronics, Inc., a corporation organized and existing under the Business Corporation Act of the State of Connecticut (the “Corporation”), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation (the “Board of Directors”) without the need to obtain shareholder
                approval in compliance with Section 33-800(5) of the Connecticut Business Corporation Act on September 12, 2019:

               

              RESOLVED, that pursuant to the authority vested in the Board of Directors in accordance with the provisions of the Certificate of Incorporation of the
                Corporation, as amended (the “Certificate of Incorporation”), a series of preferred stock, par value $0.01 per share, of the Corporation be and it hereby is created, and that the designation and
                amount thereof and the powers, 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:

               

              Section 1.  Designation and Amount.  The shares of this series shall be designated as Series A Preferred Stock (the “Series A Preferred Stock”),
                and the number of shares constituting the Series A Preferred Stock shall be 150,000.  Such number of shares may be increased or decreased by resolution of the Board of Directors; provided, that no
                decrease shall reduce the number of shares of Series A Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants
                or upon the conversion of any outstanding securities issued by the Corporation convertible into Series A Preferred Stock.

               

              Section 2.  Dividends and Distributions.

               

            

            
              (A)            Subject to the rights of the holders of any shares of any series of preferred stock, par value $0.01, of the Corporation (“Preferred Stock”) or any other stock of the Corporation ranking prior and superior to the Series A Preferred Stock with respect to dividends, the holders of shares of Series A Preferred Stock shall be
                  entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on the last day of March, June, September and December in each year (each such
                  date a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Preferred Stock, in an
                  amount (if any) per share (rounded to the nearest cent), subject to the provision for adjustment hereinafter set forth, equal to 1,000 multiplied by the aggregate per share amount of all cash dividends, and 1,000 multiplied by the
                  aggregate per share amount (payable in kind) of all non-cash dividends or other distributions, other than a dividend payable in shares of common stock, par value $0.01 per share, of the Corporation (the “Common

                    Stock”) or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise) declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first
                  Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Preferred Stock.  In the event that the Corporation shall at any time declare or pay any dividend on the Common Stock payable in
                  shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser
                  number of shares of Common Stock, then in each such case the amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under the preceding sentence shall be adjusted by multiplying such
                  amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to
                  such event.

               

            

            
              
                

            

            
              (B)            The Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) of this
                  Section 2 immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock).

               

              (C)            Dividends due pursuant to paragraph (A) of this Section 2 shall begin to accrue and be cumulative on outstanding shares of
                  Series A Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which
                  case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of
                  Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment
                  Date.  Accrued but unpaid dividends shall not bear interest.  Dividends paid on the shares of Series A Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be
                  allocated pro rata on a share-by-share basis among all such shares at the time outstanding.  The Board of Directors may fix a record date for the determination of holders of shares of Series A Preferred Stock entitled to receive payment
                  of a dividend or distribution declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof.

               

            

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

               

            

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

               

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

               

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

               

            

            
              Section 4.  Certain Restrictions.

               

            

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

               

            

            
              
                

            

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

               

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

               

            

            
              (iii)        redeem or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends
                  or upon liquidation, dissolution or winding‐up) to the Series A Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of
                  the Corporation ranking junior (as to dividends and upon dissolution, liquidation or winding‐up) to the Series A Preferred Stock.

               

            

            
              (B)            The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any
                  shares of stock of the Corporation unless the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner.

               

            

            
              Section 5.  Reacquired Shares.  Any shares of Series A Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and canceled promptly
                after the acquisition thereof.  The Corporation shall take all such actions as are necessary to cause all such shares to become authorized but unissued shares of Preferred Stock that may be reissued as part of a new series of Preferred
                Stock subject to the conditions and restrictions on issuance set forth herein or in the Certificate of Incorporation, including any Certificate of Amendment creating a series of Preferred Stock or any similar stock, or as otherwise required
                by law.

               

              Section 6.  Liquidation, Dissolution or Winding‐Up.

               

            

            
              (A)            Upon any liquidation, dissolution or winding‐up of the Corporation, voluntary or otherwise, no distribution shall be made to
                  the holders of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding‐up) to the Series A Preferred Stock unless, prior thereto, the holders of Series A Preferred Stock shall have received an amount per
                  share (the “Series A Liquidation Preference”) equal to an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 multiplied by the aggregate amount to be
                  distributed per share to holders of shares of Common Stock plus an amount equal to any accrued and unpaid dividends.  In the event that the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of
                  Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of
                  shares of Common Stock, then in each such case the aggregate amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under the preceding sentence shall be adjusted by multiplying such
                  amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to
                  such event.

               

              (B)            If there are not sufficient assets available to permit payment in full of the Series A Liquidation Preference and the
                  liquidation preferences of all other classes and series of stock of the Corporation, if any, that rank on a parity with the Series A Preferred Stock in respect thereof, then the assets available for such distribution shall be distributed
                  ratably to the holders of the Series A Preferred Stock and the holders of such parity shares in proportion to their respective liquidation preferences.

               

            

            
              
                

            

            
              (C)            Neither the merger or consolidation of the Corporation into or with another entity nor the merger or consolidation of any other
                  entity into or with the Corporation shall be deemed to be a liquidation, dissolution or winding‐up of the Corporation within the meaning of this Section 6.

               

            

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

               

              Section 8.  Amendment.  While any Series A Preferred Stock is issued and outstanding, the Certificate of Incorporation shall not be amended in any manner, including in a merger or
                consolidation, which would alter, change or repeal the powers, preferences or special rights of the Series A Preferred Stock so as to affect them adversely without the affirmative vote of the holders of at least two-thirds of the
                outstanding shares of Series A Preferred Stock, voting together as a single class.

               

              Section 9.  Rank.  The Series A Preferred Stock shall rank, with respect to the payment of dividends and upon liquidation, dissolution and winding‐up, junior to all other series of
                Preferred Stock, unless the terms of any such series shall provide otherwise, and shall rank senior to the Common Stock as to such matters.

               

              IN WITNESS WHEREOF, this Certificate of Amendment is executed on behalf of the Corporation by its duly authorized officer in compliance with Section
                33-608(f) of the Connecticut Business Corporation Act on this 24th day of September 2019.

              

              

            

            	 	
                    PHOTRONICS, INC.

                  
	 	

                  

            	

                  	
                    By:

                  	
                    /s/ Richelle E. Burr

                    

                  	

                  

            	 	
                    Name:

                  	Richelle E. Burr

                  
	 	
                    Title:

                  	Vice President, General Counsel

                  

             

            

            
              
                

            

            
              EXHIBIT B

              

              

            

            
              Form of Right Certificate

               

              NOT EXERCISABLE AFTER THE FINAL EXPIRATION DATE (AS SUCH TERM IS DEFINED IN THE RIGHTS AGREEMENT) OR EARLIER IF REDEMPTION, EXCHANGE OR TERMINATION OCCURS.  THE RIGHTS ARE SUBJECT TO REDEMPTION
                AT $0.0001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.  UNDER CERTAIN CIRCUMSTANCES, RIGHTS THAT ARE OR WERE ACQUIRED OR BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR ANY ASSOCIATES OR AFFILIATES THEREOF (AS
                SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT), OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS, MAY BECOME NULL AND VOID.

               

              PHOTRONICS, INC.

               

              Right Certificate

               

            

            	
                    Certificate No.  R-__________

                  	 	
                    __________ Rights

                  

            
              

              

              This certifies that ___________________________, or his, her or its 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 Section 382 Rights Agreement (as may be amended from time to time, the “Rights Agreement”), dated as of September 23, 2019, between Photronics, Inc., a Connecticut corporation (the “Company”), and Computershare Trust Company, N.A., a federally chartered trust company, as rights agent (or any
                successor rights agent) (the “Rights Agent”), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior to the Final Expiration
                Date (as such term is defined in the Rights Agreement) or earlier under certain circumstances set forth in the Rights Agreement, at the office or offices of the Rights Agent designated for such purpose, or at the office of its successor as
                Rights Agent, one one-thousandth of a fully paid non-assessable share of Series A Preferred Stock, par value $0.01 per share, of the Company (the “Preferred Shares”), at a purchase price of $33.63 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 properly completed and duly executed,
                accompanied by such documentation as the Rights Agent may reasonably request.  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 exercise hereof)
                set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of September 23, 2019, based on the Preferred Shares as constituted at such date.  As provided in the Rights Agreement, the Purchase Price and the
                number of one one-thousandths of a Preferred Share which may be purchased upon the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of certain events.

               

              From and after the occurrence of a Stock Acquisition Date (as defined in the Rights Agreement), if the Rights evidenced by this Right Certificate are or were acquired or Beneficially Owned by an
                Acquiring Person or an Associate or Affiliate of an Acquiring Person, such Rights shall become void, and any holder of such Rights shall thereafter have no right to exercise such Rights.

               

              This Right Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are incorporated herein by this reference and
                made a part hereof, and to which Rights Agreement reference is made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right
                Certificates.  Copies of the Rights Agreement are on file at the principal executive offices of the Company and the office or offices of the Rights Agent designated for such purpose.

               

            

            
              
                

            

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

               

              Subject to the provisions of the Rights Agreement, at the Company’s option, the Rights evidenced by this Certificate (i) may be redeemed by the Company at a redemption price of $0.0001 per Right
                or (ii) may be exchanged in whole or in part for shares of the Company’s common stock, par value $0.01 per share, Preferred Shares, cash, debt securities, or other assets, property or instruments.  The shares and other securities
                transferred as part of the exchange may be transferred to a trust created upon such terms as the Board of Directors of the Company may determine.

               

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

               

              No holder of this Right Certificate, as such, shall 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 on the exercise or exchange hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the
                Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions
                affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised or exchanged as
                provided in the Rights Agreement.

               

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

               

            

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

               

            

            	
                    Dated as of ____________.

                  	 
	 	 
	
                    Attest:

                  	
                    PHOTRONICS, INC.

                  
	 	 

            	 	
                    By:

                  	
                    

                    

                  	

                  

            	 	
                    Name:

                  	 
	 	
                    Title:

                  	 

            

            

            	
                    Countersigned:

                  	
                    COMPUTERSHARE TRUST COMPANY, N.A.

                  
	 	

                  

            	 	
                    By:

                  	
                    

                    

                  	

                  

            	 	
                    Name:

                  	 
	 	
                    Title:

                  	 

             

            

            
              
                

            

            
              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.

               

            

            	
                    Date:

                  	 	 	 
	

                  	 	 	 
	 	 	
                    Signature

                  

            
              Signature Guaranteed:

               

            

            
              Signatures must be guaranteed by an eligible guarantor institution (bank, stock broker or savings and loan association with membership in an approved signature medallion program).

               

            

            	
                    Date:

                  	 	 	 
	

                  	 	 	 
	 	 	
                    Signature

                  

            
               

              

              The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not Beneficially Owned by, were not acquired by the undersigned from, and are not being assigned to an
                Acquiring Person or an Affiliate or Associate thereof and are not issued with respect to Common Shares underlying a Derivative Position described in the definition of Beneficial Owner (as such terms are defined in the Rights Agreement).

               

            

            	
                    Date:

                  	 	 	 
	
                    

                    

                  	 	 	 
	 	 	
                    Signature

                  

            
              

              

              FORM OF ELECTION TO PURCHASE

            

            
              (To be executed if holder desires to exercise the Right Certificate.)

               

            

            
              TO PHOTRONICS, INC.:

               

            

            
              The undersigned hereby irrevocably elects to exercise _______________ Rights represented by this Right Certificate to purchase the Preferred Shares issuable upon the exercise of such Rights and
                requests that certificates for such Preferred Shares be issued in the name of: ____________________________________________________________________________ (Please insert Social Security or other identifying
                number:_________________________________________________________.  Please print name and address: ____________________________________________________________________.)  If such number of Rights shall not be all the Rights evidenced by this
                Right Certificate, a new Right Certificate for the balance remaining of such Rights shall be registered in the name of and delivered to: _______________________________________________________.  (Please insert Social Security or other
                identifying number:_________________________________________________________.  Please print name and address: _______________________________________________________________.)

               

            

            	
                    Date:

                  	 	 	 
	
                    

                    

                  	 	 	 
	 	 	
                    Signature

                  

             

            

            
              
                

            

            
              Signature Guaranteed:

               

            

            
              Signatures must be guaranteed by an eligible guarantor institution (bank, stock broker or savings and loan association with membership in an approved signature medallion program).

               

            

            	
                    Date:

                  	 	 	 
	

                  	 	 	 
	 	 	
                    Signature

                  

            

              The undersigned hereby certifies that the Rights evidenced by this Right Certificate are not Beneficially Owned by, were not acquired by the undersigned from, and are not being assigned to an
                Acquiring Person or an Affiliate or Associate thereof and are not issued with respect to Common Shares underlying a Derivative Position described in the definition of Beneficial Owner (as such terms are defined in the Rights Agreement).

               

            

            	
                    Date:

                  	 	 	 
	

                  	 	 	 
	 	 	
                    Signature

                  

            
              

              

              NOTICE

               

            

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

               

              In the event that the certification set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, such assignment or election to purchase
                will not be honored.

               

            

            
              
                

            

            
              EXHIBIT C

               

            

            
              UNDER CERTAIN CIRCUMSTANCES, RIGHTS THAT ARE OR WERE ACQUIRED OR BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR ANY ASSOCIATES OR AFFILIATES THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
                AGREEMENT), OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS, MAY BECOME NULL AND VOID.

               

              PHOTRONICS, INC.

               

            

            
              SUMMARY OF RIGHTS TO PURCHASE

            

            
              PREFERRED SHARES

               

            

            
              On September 12, 2019, the Board of Directors of Photronics, Inc. (the “Company”) declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $0.01 per share, of the Company (the “Common Shares”), outstanding on or about October 1, 2019 (the “Record Date”) to the stockholders of record on that date.  Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Preferred Stock, par value $0.01
                per share, of the Company (the “Preferred Shares”), at a price of $33.63 per one one-thousandth of a Preferred Share represented by a Right (the “Purchase Price”),

                subject to adjustment.  The description and terms of the Rights are set forth in a Section 382 Rights Agreement (the “Rights Agreement”), dated as of September 23, 2019, between the Company and
                Computershare Trust Company, N.A., a federally chartered trust company, as Rights Agent.  Capitalized terms used but not defined in this summary have the meanings ascribed to such terms in the Rights Agreement.

               

              The Rights Agreement is intended to, among other things, avoid an “ownership change” within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended, and thereby preserve the
                ability of the Company to utilize certain net operating loss carryovers and other tax attributes of the Company and its subsidiaries.

               

              Until the earlier to occur of (i) the Close of Business on the tenth day following the acquisition of Beneficial Ownership of 4.9% or more of the outstanding Common Shares (including ownership
                of a Derivative Position) by a Person or group of affiliated or associated Persons (an “Acquiring Person”) (or, in the event that an exchange is effected in accordance with Section 24 of the Rights
                Agreement and the Board of Directors determines that a later date is advisable, then such later date) or (ii) ten Business Days (or such later date as may be determined by action of the Board of Directors prior to such time as any Person
                becomes an Acquiring Person) following the commencement of, or of the first public announcement of the intention to commence, a tender offer or exchange offer the consummation of which would result in the Beneficial Ownership by a Person or
                group of 4.9% or more of the outstanding Common Shares (the earlier of such dates, the “Distribution Date”), the Rights will be evidenced by Common Share certificates with a copy of this Summary of
                Rights attached thereto (unless such Rights are recorded in book-entry); provided, that each certificate (or other evidence of book-entry or other uncertificated ownership) representing Common
                Shares outstanding as of the Close of Business on the Record Date evidencing the Rights shall be deemed to incorporate by reference the terms of the Rights Agreement.

               

            

            
              
                

            

            
              A Person shall not be deemed to be an Acquiring Person if such Person, together with all Affiliates and Associates of such Person, at the time of the first public announcement of the Rights
                Agreement, is a Beneficial Owner of 4.9% or more of the Common Shares then outstanding (a “Grandfathered Stockholder”); provided, that if a Grandfathered
                Stockholder becomes (other than pursuant to the vesting or exercise of any equity awards issued to a member of the Board of Directors or pursuant to additional grants of any such equity awards to a member of the Board of Directors), after
                the date of the Rights Agreement, the Beneficial Owner of any additional Common Shares (regardless of whether, thereafter or as a result thereof, there is an increase, decrease or no change in the percentage of Common Shares then
                outstanding Beneficially Owned by such Grandfathered Stockholder) then such Grandfathered Stockholder shall be deemed to be an Acquiring Person unless, upon such acquisition of Beneficial Ownership of additional Common Shares, such Person
                is not the Beneficial Owner of 4.9% or more of the Common Shares then outstanding; provided, further, that upon the first decrease of a Grandfathered
                Stockholder’s Beneficial Ownership below 4.9%, such Grandfathered Stockholder shall no longer be deemed to be a Grandfathered Stockholder.  For the avoidance of doubt, in the event that after the time of the first public announcement of the
                Rights Agreement, any agreement, arrangement or understanding pursuant to which any Grandfathered Stockholder is deemed to be the Beneficial Owner of Common Shares expires, is settled in whole or in part, terminates or no longer confers any
                benefit to or imposes any obligation on the Grandfathered Stockholder, any direct or indirect replacement, extension or substitution of such agreement, arrangement or understanding with respect to the same or different Common Shares that
                confers Beneficial Ownership of Common Shares shall be considered the acquisition of Beneficial Ownership of additional Common Shares by the Grandfathered Stockholder and render such Grandfathered Stockholder an Acquiring Person for
                purposes of the Rights Agreement unless, upon such acquisition of Beneficial Ownership of additional Common Shares, such Person is not the Beneficial Owner of 4.9% or more of the Common Shares then outstanding.

               

              “Beneficial Ownership” shall include any securities (i) which a Person or any of such Person’s Affiliates or Associates (a) would be deemed to actually or
                constructively own for purposes of Section 382 of the Code or the Treasury Regulations promulgated thereunder, including any coordinated acquisition of securities by any Persons who have a formal or informal understanding with respect to
                such acquisition (to the extent ownership of such securities would be attributed to such Persons under Section 382 of the Code and the Treasury Regulations promulgated thereunder), (b) beneficially owns, directly or indirectly, within the
                meaning of Rules 13d-3 or 13d-5 promulgated under the Exchange Act or (c) has the right or ability to vote, or the right to acquire, pursuant to any agreement, arrangement or understanding (except under limited circumstances), (ii) which
                are directly or indirectly Beneficially Owned by any other Person with which a Person has any agreement, arrangement or understanding for the purpose of acquiring, holding or voting such securities, or changing, obtaining or influencing
                control of the Company or (iii) in respect of which a Person or any of such Person’s Affiliates or Associates has a derivative position which is capable of being settled, in whole or in part, through delivery of cash or Common Shares (whether on a required or optional basis, and whether such settlement may occur immediately or only after the passage of time, the occurrence of conditions, the satisfaction of regulatory
                requirements or otherwise).

               

              Any Person, together with all Affiliates and Associates of such Person, who proposes to acquire 4.9% or more of the outstanding Common Shares may apply to the Board of Directors in advance for
                an exemption in accordance with and pursuant to the terms of the Rights Agreement.  In addition, Persons are not deemed to be part of a group that would constitute an Acquiring Person based on participation in discussions, negotiations or
                transactions with another Person for the purposes of restructuring the Company’s debt.

               

              The Rights Agreement provides that, until the Distribution Date (or the earlier expiration or redemption of the Rights), the Rights will be transferred with and only with the Common Shares.  New
                Rights will accompany any new Common Shares issued by the Company after the Record Date, until the Distribution Date (or the earlier expiration or redemption of the Rights).  Until the Distribution Date (or earlier redemption or expiration
                of the Rights), new Common Share certificates issued after the Record Date or upon transfer or new issuance of Common Shares will contain a notation incorporating the Rights Agreement by reference.  Until the Distribution Date (or earlier
                redemption or expiration of the Rights), the surrender for transfer of any certificates for Common Shares outstanding as of the Record Date, even without such notation or a copy of this Summary of Rights being attached thereto, will also
                constitute the transfer of the Rights associated with the Common Shares represented by such certificate.  As soon as practicable following the Distribution Date, separate certificates evidencing the Rights (“Right

                  Certificates”) will be mailed to holders of record of the Common Shares as of the Distribution Date, and such separate Right Certificates alone will evidence the Rights (unless such Rights are recorded in book-entry).

               

            

            
              
                

            

            
              The Rights are not exercisable until the Distribution Date.  The Rights will expire on the earliest to occur of (i) the Close of Business on the day following the certification of the voting
                results of the Company’s 2020 annual meeting of stockholders, if at such stockholder meeting a proposal to approve the Rights Agreement has not been passed by the affirmative vote of the majority of the votes cast at the 2020 annual meeting
                of stockholders or any other meeting of stockholders of the Company duly held prior to September 22, 2020, (ii) the date on which the Board of Directors determines in its sole discretion that (x) the Rights Agreement is no longer necessary
                for the preservation of material valuable Tax Attributes or (y) the Tax Attributes have been fully utilized and may no longer be carried forward and (iii) the Close of Business on September 22, 2022 (the “Final

                  Expiration Date”).

               

              The Purchase Price payable, and the number of Preferred Shares or other securities or property issuable, upon exercise of the Rights is subject to adjustment from time to time to prevent
                dilution: (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Preferred Shares; (ii) upon the grant to holders of the Preferred Shares of certain rights or warrants to subscribe for or purchase
                Preferred Shares at a price, or securities convertible into Preferred Shares with a conversion price, less than the then current market price of the Preferred Shares; or (iii) upon the distribution to holders of the Preferred Shares of
                evidences of indebtedness or assets (excluding regular periodic cash dividends paid out of earnings or retained earnings or dividends payable in Preferred Shares) or of subscription rights or warrants (other than those referred to above).

               

            

            
              The number of outstanding Rights and the number of Preferred Shares issuable upon exercise of each Right are also subject to adjustment in the event of a stock split of the
                Common Shares or a stock dividend on the Common Shares payable in Common Shares or subdivisions, consolidations or combinations of the Common Shares occurring, in any such case, prior to the Distribution Date.

               

              Preferred Shares purchasable upon exercise of the Rights will not be redeemable.  Each Preferred Share will be entitled to a quarterly dividend payment of 1,000 multiplied
                by the dividend declared per Common Share.  In the event of liquidation, the holders of the Preferred Shares will be entitled to a payment per share equal to 1,000 multiplied by the aggregate payment made per Common Share.  Each Preferred
                Share will have 1,000 votes, voting together with the Common Shares.  In the event of any merger, consolidation or other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to receive 1,000 multiplied by
                the amount received per Common Share.

               

            

            
              From and after the time any Person becomes an Acquiring Person, if the Rights evidenced by this Right Certificate are or were acquired or Beneficially Owned by an Acquiring Person or an
                Associate or Affiliate of an Acquiring Person (as such terms are defined in the Rights Agreement), such Rights shall become void, and any holder of such Rights shall thereafter have no right to exercise such Rights.

               

              If any Person becomes an Acquiring Person, proper provision shall be made so that each holder of a Right, other than Rights Beneficially Owned by the Acquiring Person and its Affiliates and
                Associates (all of which will thereafter be void), will thereafter have the right to receive upon exercise that number of Common Shares having a market value of two times the exercise price of the Right.  If the Board of Directors so
                elects, the Company may deliver upon payment of the exercise price of a Right an amount of cash, securities, or other property equivalent in value to the Common Shares issuable upon exercise of a Right.

               

              If, at any time after a Person becomes an Acquiring Person, the Company is acquired in a merger or other business combination transaction or 50% or more of its consolidated assets or Earning
                Power are sold, proper provision will be made so that each holder of a Right will thereafter have the right to receive, upon the exercise thereof at the then current exercise price of the Right, that number of shares of common stock of the
                acquiring company which at the time of such transaction will have a market value of two times the exercise price of the Right.

               

            

            
              
                

            

            
              At any time after any Person becomes an Acquiring Person and prior to the acquisition by any Person or group of a majority of the outstanding Common Shares, the Board of Directors may exchange
                the Rights (other than Rights owned by such Person or group which have become void), in whole or in part, at an exchange ratio of two Common Shares per Right (subject to adjustment).  The shares and other securities transferred as part of
                the exchange may be transferred to a trust created upon such terms as the Board of Directors of the Company may determine.

               

              With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of at least 1% in such Purchase Price.  No fractional Preferred
                Shares will be issued (other than fractions which are integral multiples of one one-thousandth of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts), and in lieu thereof, an adjustment in cash
                will be made based on the market price of the Preferred Shares on the last trading day prior to the date of exercise.

               

              At any time prior to the earlier to occur of (i) the Close of Business on the tenth day following the Stock Acquisition Date (or, if the tenth day following the Stock Acquisition Date occurs
                before the Record Date, the Close of Business on the Record Date) and (ii) the Final Expiration Date, the Board of Directors may redeem the Rights in whole, but not in part, at a price of $0.0001 per Right (the “Redemption Price”).  The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish.  Immediately upon any redemption of
                the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price.

               

            

            
              The terms of the Rights may be amended by the Board of Directors without the consent of the holders of the Rights.  However, from and after such time as any Person becomes
                an Acquiring Person, the Rights Agreement shall not be amended or supplemented in any manner which would adversely affect the interests of the holders of Rights (other than an Acquiring Person and its Affiliates and Associates).

               

            

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

             

            A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as an Exhibit to a Current Report on Form 8‐K.  A copy of the
                Rights Agreement is available free of charge from the Company.  The foregoing summary of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is hereby incorporated herein
                by reference.

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