Document:

Exhibit 4.1

 

 

 

 

____________________

RIGHTS AGREEMENT

____________________

by and between

THE CHEFS’ WAREHOUSE, INC.

and

AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC

as Rights Agent

 

Dated as of March 22, 2020

 

 

 

 

 

 

    	 	 	 

     

    

 

TABLE OF CONTENTS

Page

	SECTION 1.	Certain Definitions	1
	SECTION 2.	Appointment of Rights Agent	9
	SECTION 3.	Issue of Rights Certificates	9
	SECTION 4.	Form of Rights Certificates	10
	SECTION 5.	Countersignature and Registration	11
	SECTION 6.	Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	12
	SECTION 7.	Exercise of Rights; Purchase Price; Expiration Date of Rights	12
	SECTION 8.	Cancellation and Destruction of Rights Certificates	14
	SECTION 9.	Reservation and Availability of Capital Stock	14
	SECTION 10.	Preferred Stock Record Date	16
	SECTION 11.	Adjustment of Purchase Price, Number and Kind of Shares or Rights	16
	SECTION 12.	Certificate of Adjusted Purchase Price or Number of Shares	23
	SECTION 13.	Consolidation, Merger or Sale or Transfer of Assets or Earning Power	23
	SECTION 14.	Fractional Rights, Units and Shares of Preferred Stock	26
	SECTION 15.	Rights of Action	27
	SECTION 16.	Agreement of Rights Holders	27
	SECTION 17.	Rights Certificate Holder Not Deemed a Stockholder	28
	SECTION 18.	Concerning the Rights Agent	28
	SECTION 19.	Merger or Consolidation or Change of Name of Rights Agent	28
	SECTION 20.	Duties of Rights Agent	29
	SECTION 21.	Change of Rights Agent	31
	SECTION 22.	Issuance of New Rights Certificates	32

 

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	SECTION 23.	Redemption and Termination	32
	SECTION 24.	Notice of Certain Events	33
	SECTION 25.	Notices	34
	SECTION 26.	Supplements and Amendments	35
	SECTION 27.	Successors	35
	SECTION 28.	Determinations and Actions by the Board of Directors, Etc	35
	SECTION 29.	Benefits of this Agreement	36
	SECTION 30.	Severability	36
	SECTION 31.	Governing Law	36
	SECTION 32.	Counterparts	36
	SECTION 33.	Descriptive Headings	36
	SECTION 34.	Exchange	36

 

 

 

 

 

 

EXHIBITS

Exhibit A        Form of Rights
Certificate

Exhibit B        Form of Summary
of Rights

Exhibit C        Form of Certificate
of Designation, Preferences and Rights

 

 

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RIGHTS AGREEMENT

RIGHTS AGREEMENT, dated as of March 22,
2020 (this “Agreement”), between The Chefs’ Warehouse, Inc., a Delaware corporation (the “Company”),
and American Stock Transfer & Trust Company, LLC, a New York limited liability trust company (the “Rights Agent”).

WHEREAS, effective March 22, 2020 (the
“Rights Dividend Declaration Date”), the Board of Directors of the Company authorized and declared a distribution
of one right (each, a “Right”) for each share of common stock, par value $0.01 per share, of the Company (the
“Company Common Stock”) outstanding at the Close of Business (as defined below) on April 2, 2020 (the “Record
Date”), and has authorized the issuance of one Right (as such number may hereinafter be adjusted pursuant hereto) for
each share of Company Common Stock issued between the Record Date (whether originally issued or delivered from the Company’s
treasury) and, except as otherwise provided in Section 22, the Distribution Date, each Right initially representing
the right to purchase upon the terms and subject to the conditions hereinafter set forth one Unit (as defined below) of Preferred
Stock (as defined below);

WHEREAS, the Company desires to set forth
certain terms and conditions governing the Rights; and

WHEREAS, the Company desires to appoint
the Rights Agent to act as rights agent hereunder, in accordance with the terms and conditions hereof.

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

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

(a)              
A Person will be deemed to be “Acting in Concert” with another Person if such Person knowingly acts (whether
or not pursuant to an express agreement, arrangement or understanding) in concert or in parallel with such other Person, or towards
a common goal with such other Person, relating to (i) acquiring, holding, voting or disposing of voting securities of the
Company or (ii) changing or influencing the control of the Company or in connection with or as a participant in any transaction
having that purpose or effect, where (A) each Person is conscious of the other Person’s conduct or intent and this awareness
is an element in their decision-making processes and (B) at least one additional factor supports a determination by the Board
of Directors of the Company that such Persons intended to act in concert or in parallel, which such additional factors may include,
without limitation, exchanging information, attending meetings, conducting discussions, or making or soliciting invitations to
act in concert or in parallel. A Person who is Acting in Concert with another Person shall also be deemed to be “Acting in
Concert” with any third Person who is also Acting in Concert with such other Person. Notwithstanding the foregoing, no Person
will be deemed to be Acting in Concert with another Person solely as a result of (I) making or receiving a solicitation of,
or granting or receiving, revocable proxies or consents given in response to a public proxy or consent solicitation made pursuant
to, and in accordance with, Section 14(a) of the Exchange Act by means of a proxy or

    	 	  	 

     

    

 

solicitation statement filed on Schedule 14A,
or (II) soliciting or being solicited for, or tendering or receiving tenders of securities in a public tender or exchange
offer made pursuant to, and in accordance with, Section 14(d) of the Exchange Act by means of a tender offer statement filed
on Schedule TO.

(b)              
“Acquiring Person” shall mean any Person who or which, alone or together with all Affiliates and Associates
of such Person, shall be the Beneficial Owner of 10% (20% in the case of a Passive Institutional Investor) or more of the shares
of Company Common Stock then outstanding, but shall not include:

(i)                
any Exempt Person;

(ii)             
any Person who has become and is such a Beneficial Owner solely because (A) of a change in the aggregate number of
shares of the Company Common Stock since the last date on which such Person acquired Beneficial Ownership of any shares of the
Company Common Stock and who has not acquired Beneficial Ownership of any additional shares since the date on which such Person
became such a Beneficial Owner, (B) it acquired such Beneficial Ownership in the good faith belief that such acquisition would
not (I) cause such Beneficial Ownership to be equal to or exceed 10% (20% in the case of a Passive Institutional Investor)
of the shares of the Company Common Stock then outstanding and in computing the percentage of its Beneficial Ownership such Person
relied in good faith on publicly filed reports or documents of the Company that are inaccurate or out-of-date or (II) otherwise
cause a Distribution Date or the adjustment provided for in Section 11(a)(i) to occur, or (C) such Person inadvertently
became the Beneficial Owner of 10% (20% in the case of a Passive Institutional Investor) or more of the shares of the Company Common
Stock then outstanding (including because (I) such Person was unaware that it beneficially owned that number of shares of
Company Common Stock that would otherwise cause such Person to be an “Acquiring Person” or (II) as determined
by the Board of Directors in its sole discretion, such Person was aware of the extent of its Beneficial Ownership of Company Common
Stock but had no actual knowledge of the consequences of such Beneficial Ownership under this Agreement) and had no intention of
obtaining, changing or influencing control of the Company or influencing the management or policies of the Company. Notwithstanding
clause (B) and (C) of the foregoing sentence, if any Person that is not an Acquiring Person due to such clause (B) or (C), (x) does
not reduce its percentage of Beneficial Ownership of the Company Common Stock to less than 10% (20% in the case of a Passive Institutional
Investor) of the shares of Company Common Stock then outstanding or (y) in the case solely of Derivative Common Shares (as such
term is hereinafter defined), does not terminate the subject derivative transaction or transactions or disposes of the subject
derivative security or securities, or establish to the satisfaction of the Board of Directors of the Company that such Derivative
Common Shares are not held with any intention of changing or influencing control of the Company), in each case as promptly as practicable
after notice from the Company that such Person’s Beneficial Ownership of the Company Common Stock is equal to or exceeds
10% (20% in the case of a Passive Institutional Investor), such Person shall then become an Acquiring Person (and clause (B) or
(C), as applicable, shall no longer apply to such Person). Notwithstanding the foregoing, if a bona fide swaps dealer who would
otherwise be an “Acquiring Person”

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has become so as a result of its actions in the ordinary course of its business
that the Board of Directors of the Company 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 of the Company shall otherwise determine,
such Person shall not be deemed to be an “Acquiring Person” for any purposes of this Agreement. For purposes of this
definition, the determination of whether any Person acted in “good faith” or “as promptly as practicable”
shall be conclusively determined by the Board of Directors of the Company, acting by a vote of those directors of the Company whose
approval would be required to redeem the Rights under Section 23.

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

(d)              
“Adjustment Spread” has the meaning set forth in Section 34(a)(ii).

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

(f)               
“Agreement” has the meaning set forth in the preamble to this Agreement.

(g)              
A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially own”,
and shall be deemed to have “Beneficial Ownership” of, any securities:

(i)                
of which such Person or any of such Person’s Affiliates or Associates is considered to be a “beneficial owner”
under Rule 13d-3 of the Exchange Act Regulations as in effect on the date of this Agreement; provided, however,
that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own”, or to have “Beneficial
Ownership” of, any securities under this subparagraph (i) as a result of an agreement, arrangement or understanding
to vote such securities if such agreement, arrangement or understanding (A) arises solely from a revocable proxy given in
response to a proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the Exchange
Act and the Exchange Act Regulations, and (B) is not reportable by such Person on Schedule 13D under the Exchange Act
(or any comparable or successor report);

(ii)             
that are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate of such other Person)
with which such Person (or any of such Person’s Affiliates or Associates) is Acting in Concert or has any agreement, arrangement
or understanding (whether or not in writing), for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy
as described in the proviso to subparagraph (i) of this Section 1(g)) or disposing of such securities;

(iii)           
that such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to acquire
(whether such right is exercisable immediately or only after the passage of time or upon the satisfaction of conditions) pursuant
to any agreement, arrangement or understanding (whether or not in writing) or

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upon the exercise of conversion rights, exchange
rights, rights, warrants or options, or otherwise; or

(iv)            
which are beneficially owned, directly or indirectly, by a Counterparty (or any of such Counterparty’s Affiliates
or Associates) under any Derivatives Contract (without regard to any short or similar position under the same or any other Derivatives
Contract) to which such Person or any of such Person’s Affiliates or Associates is a Receiving Party (as such terms are defined
in the penultimate paragraph of this Section 1(g)); provided, however that the number of shares of Company
Common Stock that a Person is deemed to Beneficially Own pursuant to this clause (iv) in connection with a particular Derivatives
Contract shall not exceed the number of Notional Common Shares with respect to such Derivatives Contract; provided, further,
that the number of securities beneficially owned by each Counterparty (including its Affiliates and Associates) under a Derivatives
Contract shall for purposes of this clause (iv) be deemed to include all securities that are beneficially owned, directly or indirectly,
by any other Counterparty (or any of such other Counterparty’s Affiliates or Associates) under any Derivatives Contract to
which such first Counterparty (or any of such first Counterparty’s Affiliates or Associates) is a Receiving Party, with this
proviso being applied to successive Counterparties as appropriate. Such shares of Company Common Stock that are deemed so beneficially
owned pursuant to the operation of this Section 1(g)(iv) shall be referred to herein as “Derivative Common
Shares”;

provided, however, that under this Section 1(g)
(i) a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own”, or to have “Beneficial
Ownership” of, (A) securities tendered pursuant to a tender or exchange offer made in accordance with Exchange Act Regulations
by such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase
or exchange, (B) securities that may be issued upon exercise of Rights at any time prior to the occurrence of a Triggering
Event or (C) securities that may be issued upon exercise of Rights from and after the occurrence of a Triggering Event, which
Rights were acquired by such Person or any of such Person’s Affiliates or Associates or transferees (as described in Section 7(e))
prior to the Distribution Date or pursuant to Section 3(c) or Section 22 or pursuant to Section 11(i)
in connection with an adjustment made with respect to any such Rights and (ii) no Person who is an officer, director, or employee
of an Exempt Person shall be deemed, solely by reason of such Person’s status or authority as such, to be the “Beneficial
Owner” of, to have “Beneficial Ownership” of or to “beneficially own” any securities that are “beneficially
owned”, including, without limitation, in a fiduciary capacity, by an Exempt Person or by any other such officer, director
or employee of an Exempt Person.

A “Derivatives Contract” is a contract
between two parties (the “Receiving Party” and the “Counterparty”) that is designed to provide economic
benefits and allocate risks to the Receiving Party that correspond substantially to the ownership by the Receiving Party of a number
of shares of Company Common Stock specified or referenced in such contract or related documentation or (if no such number of shares
of Company Common Stock is specified in such contract or related documentation), as determined by the Board of Directors of the
Company in good faith to be the number of shares of Company

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Common Stock to which such economic benefits and risks relates (the
number corresponding to such economic benefits and risks, the “Notional Common Shares”), regardless of whether
obligations under such contract are required or permitted to be settled through the delivery of cash, shares of Company Common
Stock or other property, without regard to any short position under the same or any other Derivatives Contract. For the avoidance
of doubt, interests in broad-based index options, broad-based index futures and broad-based publicly traded market baskets of stocks
approved for trading by the appropriate federal governmental authority shall not be deemed to be Derivatives Contracts.

Notwithstanding anything in this definition of Beneficial
Ownership to the contrary, the phrase “then outstanding,” when used with reference to a Person’s Beneficial Ownership
of securities of the Company, shall mean the number of such securities then outstanding together with the number of such securities
not then actually outstanding which are issuable by the Company and which such Person would be deemed to beneficially own hereunder.

(h)              
“Book Entry Shares” has the meaning set forth in Section 3(a).

(i)                
“Business Day” shall mean any day other than a Saturday, Sunday or a day on which banking institutions
in New York City are authorized or obligated by law or executive order to close.

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

(k)              
“Common Stock” of any Person other than the Company shall mean the capital stock of such Person with
the greatest voting power, or, if such Person shall have no capital stock, the equity securities or other equity interest having
power to control or direct the management of such Person.

(l)                
“Company” has the meaning set forth in the preamble to this Agreement.

(m)            
“Company Common Stock” has the meaning set forth in the recitals to this Agreement.

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

(o)              
“Depositary Agent” has the meaning set forth in Section 7(c).

(p)              
“Distribution Date” has the meaning set forth in Section 3(a).

(q)              
“Equivalent Preferred Stock” has the meaning set forth in Section 11(b).

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

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

(t)                
“Exempt Person” shall mean:

(i)                
Christopher Pappas, John Pappas, members of their immediate families, any trust or other estate in which such person has
a substantial beneficial interest or of which such person serves as a trustee and any relative or spouse of such person, or any
relative of such spouse, who has the same home as such person (collectively, the “Founders Group”, and each,
a member of such Founders Group); provided, however, that at such time as the members of the Founders Group acquire
Beneficial Ownership after the first public announcement of this Agreement of an additional 1% of the shares of Company Common
Stock then outstanding (as determined by aggregating all shares of Company Common Stock of which any member of the Founders Group
acquires Beneficial Ownership after the first public announcement of this Agreement), other than (A) as a dividend or distribution
paid or made by the Company on the outstanding shares of Company Common Stock, or similar transaction effected by the Company in
which all Company stockholders are treated substantially equally as determined in good faith by the Board of Directors, (B) as
a result of a split or subdivision of the outstanding shares of Company Common Stock, or (C) as a result of any grant of any
security by the Company, or as a result of the exercise of any options or, warrants, rights, or similar interests, conversion of
any securities, vesting of any restricted shares or acquisition of any shares of Company Common Stock under any employee benefit,
incentive, award or compensation plan or arrangement or employment agreement of or with the Company or any of its Subsidiaries,
each member of the Founders Group shall cease to be an Exempt Person hereunder; or

(ii)             
the Company or any Subsidiary of the Company, in each case including, without limitation, in its fiduciary capacity, or
any employee benefit plan of the Company or of any Subsidiary of the Company or any entity, fiduciary or trustee holding Common
Stock for or pursuant to the terms of any such plan or for the purpose of funding any such plan or funding other employee benefits
for employees of the Company or of any Subsidiary of the Company.

(u)              
“Expiration Date” has the meaning set forth in Section 7(a).

(v)              
“Final Expiration Date” has the meaning set forth in Section 7(a).

(w)            
“Passive Institutional Investor” shall mean any Person who or which has reported or is required to report
Beneficial Ownership of shares of Company Common Stock on Schedule 13G under the Exchange Act (or any comparable or successor
report), but only so long as (i) such Person is eligible to report such ownership on Schedule 13G under the Exchange
Act (or any comparable or successor report), and (ii) such Person has not reported and is not required to report such ownership
on Schedule 13D under the Exchange Act (or any comparable or successor report) and such Person does not hold shares of Company
Common Stock on behalf of any other Person who is required to report Beneficial Ownership of shares of Company Common Stock on
such Schedule 13D; provided that if a formerly Passive Institutional Investor should

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report or become required to report Beneficial
Ownership of shares of Company Common Stock on Schedule 13D, that formerly Passive Institutional Investor will not be deemed
to be or to have become an Acquiring Person if (A) at the time it reports or becomes required to report Beneficial Ownership
of shares of Common Stock of the Company on Schedule 13D, that formerly Passive Institutional Investor has Beneficial Ownership
of less than 10% of the shares of Company Common Stock then outstanding; or (B) (1) it divests as promptly as practicable
(but in any event not later than ten calendar days after becoming required to report on Schedule 13D) Beneficial Ownership
of a sufficient number of shares of Company Common Stock so that it would no longer be an “Acquiring Person,” as defined
herein, and (2) prior to reducing its Beneficial Ownership of shares of Company Common Stock then outstanding to below 10%,
it does not increase its Beneficial Ownership of the shares of Company Common Stock then outstanding (other than by reason of share
purchases by the Company) above such Person’s lowest Beneficial Ownership of the Common Stock then outstanding at any time
during such ten calendar day period.

(x)              
“Person” shall mean any individual, partnership, limited liability company, limited liability partnership,
firm, corporation, joint venture, association, trust, unincorporated organization or other entity, as well as any syndicate or
group deemed to be a person under Section 14(d)(2) of the Exchange Act, and shall include any successor (by merger or otherwise)
of such entity.

(y)              
“Preferred Stock” shall mean the Series A Preferred Stock, par value $0.01 per share, of the Company
having the voting powers, designation, preferences and relative, participating, optional or other special rights and qualifications,
limitations and restrictions described in the Certificate of Designation, Preferences and Rights set forth as Exhibit C
hereto.

(z)              
“preferred stock equivalents” has the meaning specified in Section 11(a)(iii).

(aa)           
“Principal Party” has the meaning set forth in Section 13(b).

(bb)          
“Purchase Price” has the meaning set forth in Section 7(b).

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

(dd)          
“Redemption Date” has the meaning set forth in Section 23(a).

(ee)           
“Redemption Price” has the meaning set forth in Section 23(a).

(ff)             
“Registered Common Stock” has the meaning set forth in Section 13(b)(ii).

(gg)          
“Registration Date” has the meaning set forth in Section 9(c).

(hh)          
“Registration Statement” has the meaning set forth in Section 9(c).

(ii)             
“Right” has the meaning set forth in the recitals to this Agreement.

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(jj)             
“Rights Agent” has the meaning set forth in the preamble to this Agreement.

(kk)          
“Rights Certificates” has the meaning set forth in Section 3(a).

(ll)             
“Rights Dividend Declaration Date” has the meaning set forth in the recitals to this Agreement.

(mm)     
“Section 11(a)(ii) Event” has the meaning set forth in Section 11(a)(ii).

(nn)          
“Section 11(a)(iii) Trigger Date” has the meaning set forth in Section 11(a)(iii).

(oo)          
“Section 13 Event” has the meaning set forth in Section 13(a).

(pp)          
“Section 34(a)(i) Exchange Ratio” has the meaning set forth in Section 34(a)(i).

(qq)          
“Section 34(a)(ii) Exchange Ratio” has the meaning set forth in Section 34(a)(ii).

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

(ss)            
“Spread” has the meaning set forth in Section 11(a)(iii).

(tt)             
“Stock Acquisition Date” shall mean the first date of public announcement (including, without limitation,
the filing of any report pursuant to Section 13(d) of the Exchange Act) by the Company or an Acquiring Person that an Acquiring
Person has become such or such earlier date as the Company’s Board of Directors shall become aware of the existence of an
Acquiring Person.

(uu)          
“Subsidiary” of any Person shall mean any other Person of which a majority of the voting securities or
equity interests is beneficially owned, directly or indirectly, by such Person, or which is otherwise controlled by such Person.

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

(ww)      
“Trading Day” has the meaning set forth in Section 11(d)(i).

(xx)          
“Triggering Event” shall mean any Section 11(a)(ii) Event or any Section 13 Event.

(yy)          
“Trust” has the meaning set forth in Section 34(a)(iii).

(zz)           
“Trust Agreement” has the meaning set forth in Section 34(a)(iii).

(aaa)       
“Unit” has the meaning set forth in Section 7(b).

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

Section 3.                 
Issue of Rights Certificates. (a) Until the earlier of (i) the Close of Business on the tenth day after
the Stock Acquisition Date and (ii) the Close of Business on the tenth Business Day (or such later date as may be determined
by action of the Company’s Board of Directors prior to such time as any Person becomes an Acquiring Person, and of which
the Company will give the Rights Agent prompt written notice) after the date that a tender or exchange offer by any Person (other
than the Company, any Subsidiary of the Company, any employee benefit plan maintained by the Company or any of its Subsidiaries
or any trustee or fiduciary with respect to such plan acting in such capacity) is commenced within the meaning of Rule 14d-2
of the Exchange Act Regulations or any successor rule, if upon consummation thereof such Person would be the Beneficial Owner of
10% (20% in the case of a Passive Institutional Investor) (the earlier of (i) and (ii) above being the “Distribution Date”),
(x) the Rights will be evidenced (subject to the provisions of Section 3(c)) by the certificates for shares of
Company Common Stock registered in the names of the holders thereof (which certificates shall also be deemed to be Right Certificates),
or with respect to uncertificated shares of Company Common Stock registered in book entry form (“Book Entry Shares”),
by notation in book entry, and not by separate Rights Certificates, and (y) the Rights will be transferable only in connection
with the transfer of the underlying shares of Company Common Stock (including a transfer to the Company). As promptly as practicable
after the Distribution Date, the Rights Agent will send by first-class, insured, postage prepaid mail, to each record holder of
shares of Company Common Stock as of the Close of Business on the Distribution Date, at the address of such holder shown on the
books and records of the Company or, if applicable, its transfer agent, one or more rights certificates, in substantially the form
of Exhibit A hereto (the “Rights Certificates”) evidencing one Right for each share of Company Common
Stock so held, subject to adjustment as provided herein. In the event that an adjustment in the number of Rights per share of Company
Common Stock has been made pursuant to Section 11(p), at the time of distribution of the Rights Certificates, the Company
may make the necessary and appropriate rounding adjustments (in accordance with Section 14(a)) so that Rights Certificates
evidencing only whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of and after the
Distribution Date, the Rights will be evidenced solely by such Rights Certificates.

(b)              
On the Record Date, or as promptly as practicable thereafter, the Company will make available a Summary of Rights to Purchase
Preferred Stock, in substantially the form of Exhibit B hereto (the “Summary of Rights”), to each
record holder of shares of Company Common Stock as of the Close of Business on the Record Date.

(c)              
Rights shall, without any further action, be issued in respect of all shares of Company Common Stock that are issued (for
the avoidance of doubt, including any shares of Company Common Stock held in treasury) after the Record Date but prior to the earlier
of the Distribution Date and the Expiration Date. Certificates for shares of Company Common Stock

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that become outstanding (including,
without limitation, reacquired shares of Company Common Stock referred to in the last sentence of this paragraph (c)) after the
Record Date but prior to the earliest of the Distribution Date, the Redemption Date or the Final Expiration Date shall have impressed
on, printed on, written on or otherwise affixed to them a legend substantially as follows:

“This certificate also
evidences and entitles the holder hereof to certain Rights as set forth in a Rights Agreement, dated as of March 22, 2020 (the
“Rights Agreement”), between The Chefs’ Warehouse, Inc. (the “Company”) and American Stock Transfer
& Trust Company, LLC (the “Rights Agent”), the terms of which are hereby incorporated herein by reference and a
copy of which is on file at the office of the Rights Agent designated for such purpose. Under certain circumstances, as set forth
in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate.
The Company will mail to the holder of this certificate a copy of the Rights Agreement without charge after receipt of a written
request therefor. Under certain circumstances, as set forth in the Rights Agreement, Rights issued to, or held by, any Person who
is, was or becomes an Acquiring Person or any Affiliate, Associate or transferee thereof (as such terms are defined or described
in the Rights Agreement), whether currently held by or on behalf of such Person or by any subsequent holder, shall become null
and void.”

With respect to any Book Entry Shares, such legend shall
be included in a notice to the record holders of such shares in accordance with applicable law. With respect to certificates or
notations in book entry evidencing ownership of shares of Company Common Stock (whether or not such certificates, or notice to
the record holders of Book Entry Shares, include the foregoing legend or have appended to them the Summary of Rights), until the
earlier of the Distribution Date and the Expiration Date, the Rights associated with the shares of Company Common Stock evidenced
by such certificates or notations in book entry shall be evidenced by such certificates or notations in book entry alone, and the
transfer of shares of Company Common Stock, shall also constitute the transfer of the Rights associated with the shares of Company
Common Stock, the ownership of which is evidenced thereby. In the event that the Company purchases or acquires any shares of Company
Common Stock after the Record Date but prior to the Distribution Date, any Rights associated with such shares of Company Common
Stock shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights associated with the
shares of Company Common Stock which are no longer outstanding.

Section 4.                 
Form of Rights Certificates. (a) The Rights Certificates (and the forms of election to purchase, assignment
and certificate to be printed on the reverse thereof) shall each be substantially in the form set forth in Exhibit A
hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as
the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply
with any applicable law or any rule or regulation thereunder or with any rule or regulation of any stock exchange on which the
Rights may from time to time be listed or to conform to usage. Subject to the provisions of Section 11 and Section 22,
the Rights Certificates, whenever distributed, shall be dated as of the Record Date and on their face shall entitle the holders
thereof to purchase such number of Units of Preferred

    	 	10	 

     

    

 

Stock as shall be set forth therein at the price set forth therein, but the
amount and type of securities, cash or other assets that may be acquired upon the exercise of each Right and the Purchase Price
thereof shall be subject to adjustment as provided herein.

(b)              
Any Rights Certificate issued pursuant hereto that evidences Rights beneficially owned by: (i) an Acquiring Person
or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or
Affiliate) that becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person
(or of any such Associate or Affiliate) that becomes a transferee prior to or concurrently with the Acquiring Person becoming such
and that receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person
(or any such Associate or Affiliate) to holders of equity interests in such Acquiring Person (or such Associate or Affiliate) or
to any Person with whom such Acquiring Person (or such Associate or Affiliate) has any continuing agreement, arrangement or understanding
regarding either the transferred Rights, shares of Company Common Stock or the Company or (B) a transfer that the Company’s
Board of Directors has determined to be part of a plan, agreement, arrangement or understanding that has as a primary purpose or
effect the avoidance of Section 7(e), shall, upon the written direction of the Company’s Board of Directors,
contain (to the extent feasible) the following legend:

“The Rights evidenced
by this Rights Certificate are or were beneficially owned by a Person who was or became an Acquiring Person or an Affiliate, Associate
or transferee of an Acquiring Person (as such terms are defined or described in the Rights Agreement referred to below). Accordingly,
this Rights Certificate and the Rights evidenced hereby shall become null and void in the circumstances specified in Section 7(e)
of such Rights Agreement.”

Section 5.                 
Countersignature and Registration. (a) Rights Certificates shall be executed on behalf of the Company by its
Chairman of the Board, its President, or one of its Vice Presidents under its corporate seal reproduced thereon in facsimile attested
by its Secretary or one of its Assistant Secretaries. The signature of any one or more of these officers on the Rights Certificates
may be manual or facsimile. Rights Certificates bearing the manual or facsimile signatures of the individuals who were at any time
the officers of the Company described in the first sentence of this Section 5(a) shall bind the Company, notwithstanding
that such individuals or any of them have ceased to hold such offices prior to the countersignature of such Rights Certificates
or did not hold such offices at the date of such Rights Certificates. No Rights Certificate shall entitle the holder of such Rights
Certificate to any benefit under this Agreement or be valid for any purpose unless there appears on such Rights Certificate a countersignature
duly executed by the Rights Agent by manual or facsimile signature of an authorized signatory, and such countersignature upon any
Rights Certificate shall be conclusive evidence, and the only evidence, that such Rights Certificate has been duly countersigned
as required hereunder.

(b)              
Following the Distribution Date, the Rights Agent will keep, or cause to be kept, at its office designated for surrender
of Rights Certificates upon exercise or transfer, books for registration and transfer of the Rights Certificates issued hereunder.
Such books shall show the name and address of each holder of the Rights Certificates, the number of Rights evidenced on its face
by each Rights Certificate and the date of the issuance of each Rights Certificate.

    	 	11	 

     

    

 

Section 6.                 
Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights
Certificates. (a) Subject to the provisions of Sections 4(b), 7(e) and 14, at any time after the Close of
Business on the Distribution Date, and at or prior to the Close of Business on the Expiration Date, any Rights Certificate or Certificates
may be transferred, split up, combined or exchanged for another Rights Certificate or Certificates, entitling the registered holder
to purchase a like number of Units of Preferred Stock (or, following a Triggering Event, other securities, cash or other assets,
as the case may be) as the Rights Certificate or Certificates surrendered then entitled such holder to purchase. Any registered
holder desiring to transfer, split up, combine or exchange any Rights Certificate or Certificates shall make such request in writing
delivered to the Rights Agent, and shall surrender the Rights Certificate or Certificates to be transferred, split up, combined
or exchanged at the office of the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be obligated
to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate until the registered holder
shall have completed and duly executed the certificate set forth in the form of assignment on the reverse side of such Rights Certificate
and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) of the Rights
evidenced by such Rights Certificate or Affiliates or Associates thereof as the Company shall reasonably request; whereupon the
Rights Agent shall, subject to the provisions of Sections 4(b), 7(e) and 14, countersign and deliver to the
Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested. The Company may require
payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split
up, combination or exchange of Rights Certificates.

(b)              
If a Rights Certificate shall be mutilated, destroyed, lost or stolen, upon request by the registered holder of the Rights
evidenced thereby and upon payment to the Company and the Rights Agent of all reasonable expenses incident thereto, there shall
be issued, in exchange for and upon cancellation of the mutilated Rights Certificate, or in substitution for the lost, stolen or
destroyed Rights Certificate, a new Rights Certificate, in substantially the form of the prior Rights Certificate, of like tenor
and evidencing the equivalent number of Rights, but, in the case of loss, theft or destruction, only upon receipt of evidence satisfactory
to the Company and the Rights Agent of such loss, theft or destruction of such Rights Certificate and, if requested by the Company
or the Rights Agent, indemnity also satisfactory to it.

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

(a)              
Prior to the earlier of (i) the Close of Business on the 364th day after the date hereof (the “Final
Expiration Date”), (ii) the Redemption Date, and (iii) the date on which the Rights are exchanged as provided in Section 34
hereof (the earlier of (i), (ii) and (iii) being the “Expiration Date”), the registered holder of any Rights
Certificate may, subject to the provisions of Sections 7(e), 9(c) and 34, exercise the Rights evidenced
thereby in whole or in part at any time after the Distribution Date upon surrender of the Rights Certificate, with the form of
election to purchase and the certificate on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights
Agent designated for such purpose, together with payment of

    	 	12	 

     

    

 

the aggregate Purchase Price for the number of Units of Preferred Stock
(or, following a Triggering Event, other securities, cash or other assets, as the case may be) for which such surrendered Rights
are then exercisable.

(b)              
The purchase price for each one one-thousandth of a share (each such one one-thousandth of a share being a “Unit”)
of Preferred Stock upon exercise of a Right shall be $40.00, subject to adjustment from time to time as provided in Sections 11
and 13(a) (such purchase price, as so adjusted, being the “Purchase Price”), and shall be payable in
accordance with paragraph (c) below.

(c)              
As promptly as practicable following the occurrence of the Distribution Date, the Company shall deposit with a corporation
in good standing organized under the laws of the United States or any state of the United States, that is authorized under such
laws to exercise corporate trust or stock transfer powers and is subject to supervision or examination by federal or state authority
(such institution being the “Depositary Agent”), certificates evidencing the shares of Preferred Stock that
may be acquired upon exercise of the Rights and shall cause such Depositary Agent to enter into an agreement pursuant to which
the Depositary Agent shall issue receipts evidencing interests in the shares of Preferred Stock so deposited. Upon receipt of a
Rights Certificate evidencing exercisable Rights, with the form of election to purchase and the certificate duly executed, accompanied
by payment, with respect to each Right so exercised, of the Purchase Price for the Units of Preferred Stock (or, following a Triggering
Event, other securities, cash or other assets, as the case may be) to be purchased thereby as set forth below and an amount equal
to any applicable transfer tax or evidence satisfactory to the Company of payment of such tax, the Rights Agent shall, subject
to Section 20(k), thereupon promptly (i) requisition from the Depositary Agent (or make available, if the Rights
Agent is the Depositary Agent) depositary receipts or certificates evidencing such number of Units of Preferred Stock as are to
be purchased and the Company will issue the Units of Preferred Stock and direct the Depositary Agent to comply with such request,
(ii) requisition from the Company the amount of cash, if any, to be paid in lieu of fractional shares in accordance with Section 14,
(iii) after receipt of such depositary receipts or certificates, cause the same to be delivered to or upon the order of the
registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder, and (iv) when
appropriate, after receipt thereof, deliver such cash, if any, to or upon the order of the registered holder of such Rights Certificate.
In the event that the Company is obligated to issue Company Common Stock, other securities of the Company, pay cash and/or distribute
other property pursuant to Section 11(a), the Company will make all arrangements necessary so that such Company Common
Stock, other securities, cash and/or other property are available for distribution by the Rights Agent, if and when appropriate.
Subject to Section 34, the payment of the Purchase Price may be made in cash or by certified or bank check payable
to the order of the Company, or by wire transfer of immediately available funds to the account of the Company (provided that notice
of such wire transfer shall be given by the holder of the related Right to the Rights Agent).

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

    	 	13	 

     

    

 

(e)              
Notwithstanding anything in this Agreement or any Rights Certificate to the contrary, from and after the first occurrence
of any Section 11(a)(ii) Event or Section 13 Event, any Rights that are or were beneficially owned by (i) an Acquiring
Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate
or Affiliate) that becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring Person
(or of any such Associate or Affiliate) that becomes a transferee prior to or concurrently with the Acquiring Person becoming such
and that receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person
(or any such Associate or Affiliate) to holders of equity interests in such Acquiring Person (or such Associate or Affiliate) or
to any Person with whom such Acquiring Person (or such Associate or Affiliate) has any continuing agreement, arrangement or understanding
regarding the transferred Rights, shares of Company Common Stock or the Company or (B) a transfer that the Company’s
Board of Directors has determined to be part of a plan, arrangement or understanding that has as a primary purpose or effect the
avoidance of this Section 7(e), shall be null and void without any further action, and no holder of such Rights shall
have any rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. The Company
shall use all reasonable efforts to ensure that the provisions of this Section 7(e) and Section 4(b) are
complied with, but shall have no liability to any holder of Rights or any other Person as a result of the Company’s failure
to make any determination under this Section 7(e) or Section 4(b) with respect to an Acquiring Person or
its Affiliates, Associates or transferees.

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

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

Section 9.                 
Reservation and Availability of Capital Stock. (a)  The Company shall at all times prior to the
Expiration Date cause to be reserved and kept available, out of its authorized and unissued shares of Preferred Stock, the number
of shares of Preferred Stock that, as provided in this Agreement, will be sufficient to permit the exercise in full of all

    	 	14	 

     

    

 

outstanding
Rights. Upon the occurrence of any events resulting in an increase in the aggregate number of shares of Preferred Stock (or other
equity securities of the Company) issuable upon exercise of all outstanding Rights above the number then reserved, the Company
shall make appropriate increases in the number of shares so reserved.

(b)              
If the shares of Preferred Stock to be issued and delivered upon the exercise of the Rights may be listed on any national
securities exchange, the Company shall during the period from the Distribution Date through the Expiration Date use its best efforts
to cause all securities reserved for such issuance to be listed on such exchange upon official notice of issuance upon such exercise.

(c)              
The Company shall use its best efforts (i) as soon as practicable following the occurrence of a Section 11(a)(ii)
Event and a determination by the Company in accordance with Section 11(a)(iii) of the consideration to be delivered
by the Company upon exercise of the Rights or, if so required by law, as soon as practicable following the Distribution Date (such
date being the “Registration Date”), to file a registration statement on an appropriate form under the Securities
Act with respect to the securities that may be acquired upon exercise of the Rights (the “Registration Statement”),
(ii) to cause the Registration Statement to become effective as soon as practicable after such filing, (iii) to cause
the Registration Statement to continue to be effective (and to include a prospectus complying with the requirements of the Securities
Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for the securities covered by the
Registration Statement and (B) the Expiration Date and (iv) to take as soon as practicable following the Registration
Date such action as may be required to ensure that any acquisition of securities upon exercise of the Rights complies with any
applicable state securities or “blue sky” laws. The Company may temporarily suspend, for a period of time not
to exceed 90 Business Days after the Stock Acquisition Date, the exercisability of the Rights in order to prepare and file such
Registration Statement and permit it to become effective.  Upon such suspension, the Company shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as
the suspension is no longer in effect, in each case with prompt written notice to the Rights Agent.  If the Registration Statement
does not become effective prior to the Close of Business on the 90th Business Day following the occurrence of a Section 11(a)(ii)
Event, the Company shall, unless otherwise determined by the Company’s Board of Directors, on the 91st Business Day following
the occurrence of such Section 11(a)(ii) Event, be obligated to exercise the option described in Section 34.

(d)              
The Company shall take such action as may be necessary to ensure that all shares of Preferred Stock (and, following the
occurrence of a Triggering Event, any other securities that may be delivered upon exercise of Rights) shall be, at the time of
delivery of the certificates or depositary receipts for such securities, duly and validly authorized and issued and fully paid
and non-assessable.

(e)              
The Company shall pay any documentary, stamp or transfer tax imposed in connection with the issuance or delivery of the
Rights Certificates or upon the exercise of Rights; provided, however, that the Company shall not be required to
pay any such tax imposed in connection with the issuance or delivery of Units of Preferred Stock, or any certificates or depositary
receipts for such Units of Preferred Stock (or, following the occurrence of a

    	 	15	 

     

    

 

Triggering Event, any other securities, cash or assets,
as the case may be) to any Person other than the registered holder of the Rights Certificates evidencing the Rights surrendered
for exercise. The Company shall not be required to issue or deliver any certificates or depositary receipts for Units of Preferred
Stock (or, following the occurrence of a Triggering Event, any other securities, cash or assets, as the case may be) to, or in
a name other than that of, the registered holder of the Rights Certificate upon the exercise of any Rights evidenced thereby until
any such tax shall have been paid (any such tax being payable by the holder of such Rights Certificate at the time of surrender)
or until it has been established to the Company’s satisfaction that no such tax is due.

Section 10.             
Preferred Stock Record Date. Each Person in whose name any certificate or depositary receipt for Units of
Preferred Stock (or, following the occurrence of a Triggering Event, other securities) is issued upon the exercise of Rights shall
for all purposes be deemed to have become the holder of record of the Units of Preferred Stock (or, following the occurrence of
a Triggering Event, other securities) evidenced thereby on, and such certificate or depositary receipt shall be dated, the date
upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of the aggregate Purchase Price (and
any applicable transfer taxes) was made; provided, however, that if the date of such surrender and payment is a date
upon which the Preferred Stock (or, following the occurrence of a Triggering Event, other securities) transfer books of the Company
are closed, such Person shall be deemed to have become the record holder of such securities on, and such certificate or depositary
receipt shall be dated, the next succeeding Business Day on which the Preferred Stock (or, following the occurrence of a Triggering
Event, other securities) transfer books of the Company are open; and further provided, however, that if delivery
of Units of Preferred Stock is delayed as a result of a failure to register such Units of Preferred Stock pursuant to Section 9(c),
such Persons shall be deemed to have become the record holders of such Units of Preferred Stock only when such Units first become
deliverable. Prior to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not be entitled to
any rights of a stockholder of the Company with respect to securities for which the Rights shall be exercisable, including, without
limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not
be entitled to receive any notice of any proceedings of the Company, except as provided herein.

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

(a)              
(i) In the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred
Stock payable in shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock, (C) combine the outstanding
Preferred Stock into a smaller number of shares or (D) issue any shares of its capital stock in a reclassification of the
Preferred Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), except as otherwise provided in this Section 11(a), 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 Preferred Stock or capital stock, as the case may be, issuable on such date upon

    	 	16	 

     

    

 

exercise of the Rights,
shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled to receive, upon
payment of the Purchase Price then in effect, the aggregate number and kind of shares of Preferred Stock or capital stock, as the
case may be, which, if such Right had been exercised immediately prior to such date, such holder would have owned upon such exercise
and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification. If an event occurs that
would require an adjustment under both this Section 11(a)(i) and Section 11(a)(ii), the adjustment provided
for in this Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required pursuant
to Section 11(a)(ii).

(ii)             
In the event any Person shall become an Acquiring Person, unless the event causing such Person to become an Acquiring Person
is a transaction set forth in Section 13(a), then, immediately upon the date of the occurrence of such event described
in this Section 11(a)(ii) (a “Section 11(a)(ii) Event”), proper provision shall be made so
that each holder of a Right (except as provided below and in Section 7(e)) shall thereafter have the right to receive,
upon exercise thereof at the then-current Purchase Price in accordance with the terms of this Agreement, in lieu of the number
of Units of Preferred Stock for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii)
Event, such number of Units of Preferred Stock as shall equal the result obtained by (x) multiplying the then-current Purchase
Price by the then number of Units of Preferred Stock for which a Right was exercisable immediately prior to the first occurrence
of a Section 11(a)(ii) Event (such product thereafter being, for all purposes of this Agreement other than Section 13,
the “Purchase Price”), and (y) dividing that product by 50% of the then-current market price (determined
pursuant to Section 11(d)) per Unit of Preferred Stock on the date of such first occurrence (such Units of Preferred
Stock being the “Adjustment Shares”).

(iii)           
In the event that the number of shares of Preferred Stock that are authorized by the Company’s Certificate of Incorporation
but not outstanding or reserved for issuance for purposes other than upon exercise of the Rights is not sufficient to permit the
exercise in full of the Rights in accordance with the foregoing subparagraph (ii) of this Section 11(a), the Company,
by or pursuant to a resolution of the Company’s Board of Directors, shall: (A) determine the excess of (1) the
value of the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”) over (2) the
Purchase Price (such excess being the “Spread”), and (B) with respect to each Right, make adequate provision
to substitute for such Adjustment Shares, upon payment of the applicable Purchase Price, (1) cash, (2) a reduction in
the Purchase Price, (3) Company Common Stock or other equity securities of the Company (including, without limitation, shares,
or units of shares, of preferred stock (such other shares being “preferred stock equivalents”)), (4) debt
securities of the Company, (5) other assets or (6) any combination of the foregoing, having an aggregate value equal
to the Current Value, where such aggregate value has been determined by the Company’s Board of Directors, after receiving
advice from a nationally recognized investment banking firm; provided, however, that if the Company shall not have
made adequate provision to deliver value pursuant to clause (B) above within thirty days following the later of (x) the
first occurrence of a Section 11(a)(ii) Event and (y) the date on which the Company’s right of redemption pursuant
to Section 23(a) expires (the later of (x) and (y) being referred to

    	 	17	 

     

    

 

herein as the “Section 11(a)(iii) Trigger
Date”), then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring
payment of the Purchase Price, Units of Preferred Stock (to the extent available) and then, if necessary, cash, which Units of
Preferred Stock and/or cash shall have an aggregate value equal to the Spread. To the extent that the Company determines that some
action need be taken pursuant to the first sentence of this Section 11(a)(iii), the Company shall provide, subject
to Section 7(e), that such action shall apply uniformly to all outstanding Rights. For purposes of this Section 11(a)(iii),
the value of a Unit of Preferred Stock shall be the current market price (as determined pursuant to Section 11(d))
per Unit of Preferred Stock on the Section 11(a)(iii) Trigger Date and the value of any preferred stock equivalent shall be
deemed to have the same value as the Preferred Stock on such date.

(b)              
In case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Preferred
Stock entitling them to subscribe for or purchase (for a period expiring within 45 calendar days after such record date) shares
of Preferred Stock (or shares having substantially the same rights, privileges and preferences as shares of Preferred Stock (“Equivalent
Preferred Stock”)) or securities convertible into Preferred Stock or Equivalent Preferred Stock at a price per share
of Preferred Stock or per share of Equivalent Preferred Stock (or having a conversion price per share, if a security convertible
into Preferred Stock or Equivalent Preferred Stock) less than the current market price (as determined pursuant to Section 11(d))
per share of Preferred Stock on such record date, the Purchase Price to be in effect after such record date shall be determined
by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be
the sum of the number of shares of Preferred Stock outstanding on such record date plus the number of shares of Preferred Stock
which the aggregate offering price of the total number of shares of Preferred Stock and/or Equivalent Preferred Stock so to be
offered (and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such current
market price, and the denominator of which shall be the number of shares of Preferred Stock outstanding on such record date plus
the number of additional shares of Preferred Stock and/or Equivalent Preferred Stock to be offered for subscription or purchase
(or into which the convertible securities so to be offered are initially convertible). In case such subscription price may be paid
by delivery of consideration part or all of which may be in a form other than cash, the value of such consideration shall be as
determined in good faith by the Company’s Board of Directors, whose determination shall be described in a statement filed
with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. Shares of Preferred Stock owned by
or held for the account of the Company or any Subsidiary of the Company shall not be deemed outstanding for the purpose of any
such computation. Such adjustment shall be made successively whenever such a record date is fixed, and in the event that such rights
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.

(c)              
In case the Company shall fix a record date for a distribution to all holders of shares of Preferred Stock (including any
such distribution made in connection with a consolidation or merger in which the Company is the continuing corporation) of evidences
of indebtedness, cash (other than a regular quarterly cash dividend out of the earnings or retained earnings of the Company), assets
(other than a dividend payable in shares of Preferred Stock, but including any dividend payable in stock other than Preferred Stock)
or subscription rights or

    	 	18	 

     

    

 

warrants (excluding those referred to in Section 11(b)), the Purchase Price to be in effect
after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by
a fraction, the numerator of which shall be the current market price (as determined pursuant to Section 11(d)) per
share of Preferred Stock on such record date less the fair market value (as determined in good faith by the Company’s Board
of Directors, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights
Agent and the holder of the Rights) of the cash, assets or evidences of indebtedness so to be distributed or of such subscription
rights or warrants distributable in respect of a share of Preferred Stock and the denominator of which shall be such current market
price (as determined pursuant to Section 11(d)) per share of Preferred Stock. Such adjustments shall be made successively
whenever such a record date is fixed, and in the event that such distribution is not so made, the Purchase Price shall be adjusted
to be the Purchase Price that would have been in effect if such record date had not been fixed.

(d)              
 

(i)                
For the purpose of any computation hereunder, the “current market price” per share of Company Common Stock or
Common Stock on any date shall be deemed to be the average of the daily closing prices per share of such shares for the ten consecutive
Trading Days immediately prior to such date; provided, however, that if prior to the expiration of such requisite
ten Trading Day period the issuer announces either (A) a dividend or distribution on such shares payable in such shares or
securities convertible into such shares (other than the Rights) or (B) any subdivision, combination or reclassification of
such shares, then, following the ex-dividend date for such dividend or the record date for such subdivision, as the case may be,
the “current market price” shall be properly adjusted to take into account such event. The closing price for each day
shall be, if the shares are listed and admitted to trading on a national securities exchange, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal national securities exchange on which such shares
are listed or admitted to trading or, if such shares are not listed or admitted to trading on any national securities exchange,
the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as
reported by the NASDAQ National Market or such other system then in use, or, if on any such date such shares are not quoted by
any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market
in such shares selected by the Company’s Board of Directors. If, on any such date no market maker is making a market in such
shares, the fair value of such shares on such date as determined in good faith by the Company’s Board of Directors shall
be used. If such shares are not publicly held or not so listed or traded, “current market price” per share shall mean
the fair value per share as determined in good faith by the Company’s Board of Directors, whose determination shall be described
in a statement filed with the Rights Agent and shall be conclusive for all purposes. The term “Trading Day”
shall mean, if such shares are listed or admitted to trading on any national securities exchange, a day on which the principal
national securities exchange on which such shares are listed or admitted to trading is open for the transaction of business or,
if such shares are not so listed or admitted, a Business Day.

    	 	19	 

     

    

 

(ii)             
For the purpose of any computation hereunder, the “current market price” per share of Preferred Stock shall
be determined in the same manner as set forth above for Company Common Stock in Section 11(d)(i) (other than the fourth
sentence thereof). If the current market price per share of Preferred Stock cannot be determined in the manner provided above or
if the Preferred Stock is not publicly held or listed or traded in a manner described in Section 11(d)(i), the “current
market price” per share of Preferred Stock shall be conclusively deemed to be an amount equal to 1,000 (as such amount may
be appropriately adjusted for such events as stock splits, stock dividends and recapitalizations with respect to Company Common
Stock occurring after the Rights Dividend Declaration Date) multiplied by the current market price per share of Company Common
Stock. If neither Company Common Stock nor Preferred Stock is publicly held or so listed or traded, “current market price”
per share of the Preferred Stock shall mean the fair value per share as determined in good faith by the Company’s Board of
Directors, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights
Agent and the holders of the Rights. For all purposes of this Agreement, the “current market price” of a Unit of Preferred
Stock shall be equal to the “current market price” of one share of Preferred Stock divided by 1,000.

(e)              
Anything herein to the contrary notwithstanding, 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, however, that any adjustments
which by reason of this Section 11(e) 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 share of Company Common Stock or Common Stock or other share or one ten-thousandth of a share of Preferred
Stock, as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required by this
Section 11 shall be made no later than the earlier of (i) three years from the date of the transaction that mandates
such adjustment and (ii) the Expiration Date.

(f)               
If, as a result of an adjustment made pursuant to Section 11(a)(ii) or Section 13(a), the holder
of any Right thereafter exercised shall become entitled to receive any shares other than Preferred Stock, thereafter the number
of such other shares so receivable upon exercise of any Right and the Purchase Price thereof shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Stock
contained in Sections 11(a), (b), (c), (d), (e), (g), (h), (i), (j),
(k), (l) and (m), and the provisions of Sections 7, 9, 10, 13 and 14
with respect to the Preferred Stock shall apply on like terms to any such other shares.

(g)              
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 Units of Preferred Stock (or other securities or amount of
cash or combination thereof) that may be acquired from time to time hereunder upon exercise of the Rights, all subject to further
adjustment as provided herein.

(h)              
Unless the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the
Purchase Price as a result of the calculations made in Sections 11(b) and (c), each Right outstanding immediately
prior to the making of such

    	 	20	 

     

    

 

adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number
of Units of Preferred Stock (calculated to the nearest one ten-thousandth of a Unit) obtained by (i) multiplying (x) the
number of Units of Preferred Stock covered by a Right immediately prior to this adjustment by (y) the Purchase Price in effect
immediately prior to such adjustment of the Purchase Price and (ii) dividing the product so obtained by the Purchase Price
in effect immediately after such adjustment of the Purchase Price.

(i)                
The Company may elect on or after the date of any adjustment of the Purchase Price to adjust the number of Rights, in lieu
of any adjustment in the number of Units of Preferred Stock that may be acquired upon the exercise of a Right. Each of the Rights
outstanding after the adjustment in the number of Rights shall be exercisable for the number of Units of Preferred Stock for which
a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number
of Rights shall become that number of Rights (calculated to the nearest one ten -thousandth) obtained by dividing the Purchase
Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment
of the Purchase Price. The Company shall make a public announcement 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. This record date may be
the date on which the Purchase Price is adjusted or any day thereafter, but, if the Rights Certificates have been issued, shall
be at least ten days later than the date of such public announcement. If Rights Certificates have been issued, upon each adjustment
of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be
distributed to holders of record of Rights Certificates on such record date Rights 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 Rights Certificates held by such
holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Rights Certificates evidencing
all the Rights to which such holders shall be entitled after such adjustment. Rights Certificates to be so distributed shall be
issued, executed and countersigned in the manner provided for herein (and may bear, at the option of the Company, the adjusted
Purchase Price) and shall be registered in the names of the holders of record of Rights Certificates on the record date specified
in the public announcement.

(j)                
Irrespective of any adjustment or change in the Purchase Price or the number of Units of Preferred Stock issuable upon the
exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Purchase Price per
Unit and the number of Units of Preferred Stock that were expressed in the initial Rights Certificates issued hereunder without
prejudice to any such adjustment or change.

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

    	 	21	 

     

    

 

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

(m)            
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 in their good faith judgment the Company’s Board of Directors shall determine to be advisable in order that any (i) consolidation
or subdivision of the Preferred Stock, (ii) issuance wholly for cash of any shares of Preferred Stock at less than the current
market price, (iii) issuance wholly for cash of shares of Preferred Stock or securities that by their terms are convertible
into or exchangeable for shares of Preferred Stock, (iv) stock dividends or (v) issuance of rights, options or warrants
referred to in this Section 11, hereafter made by the Company to holders of its Preferred Stock, shall not be taxable
to such holders or shall reduce the taxes payable by such holders.

(n)              
The Company shall not, at any time after the Distribution Date, (i) consolidate with any other Person (other than a
Subsidiary of the Company in a transaction that complies with Section 11(o)), (ii) merge with or into any other
Person (other than a Subsidiary of the Company in a transaction that complies with Section 11(o)), or (iii) sell
or transfer (or permit any Subsidiary of the Company to sell or transfer), in one transaction, or a series of transactions, assets
or earning power aggregating more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole)
to any other Person or Persons (other than the Company and/or any of its Subsidiaries in one or more transactions each of which
complies with Section 11(o)), if (x) at the time of or immediately after such consolidation, merger or sale there
are any rights, warrants or other instruments or securities outstanding or agreements in effect that would substantially diminish
or otherwise eliminate the benefits intended to be afforded by the Rights or (y) prior to, simultaneously with or immediately
after such consolidation, merger or sale, the Person that constitutes, or would constitute, the “Principal Party” for
purposes of Section 13(a) shall have distributed or otherwise transferred to its stockholders or other Persons holding
an equity interest in such Person Rights previously owned by such Person or any of its Affiliates and Associates; provided,
however, that this Section 11(n) shall not affect the ability of any Subsidiary of the Company to consolidate
with, merge with or into, or sell or transfer assets or earning power to, any other Subsidiary of the Company.

    	 	22	 

     

    

 

(o)              
After the Distribution Date, the Company shall not, except as permitted by Section 23 or Section 26,
take (or permit any Subsidiary of the Company to take) any action if at the time such action is taken it is reasonably foreseeable
that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights.

(p)              
Anything in this Agreement to the contrary notwithstanding, in the event that the Company shall at any time after the Rights
Dividend Declaration Date and prior to the Distribution Date (i) declare a dividend on the outstanding shares of Company Common
Stock payable in shares of Company Common Stock, (ii) subdivide the outstanding shares of Company Common Stock, (iii) combine
or consolidate the outstanding shares of Company Common Stock into a smaller number of shares, or (iv) issue any shares of
its capital stock in a reclassification of Company Common Stock (including any such reclassification in connection with a consolidation
or merger in which (A) the Company is the continuing or surviving corporation or (B) holders of shares of Company Common Stock
immediately prior thereto control 50% or more of the total voting power of the consolidated or merged continuing or surviving corporation),
the number of Rights associated with each share of Company Common Stock then outstanding, or issued or delivered thereafter but
prior to the Distribution Date, shall be proportionately adjusted so that the number of Rights thereafter associated with each
share of Company Common Stock following any such event shall equal the result obtained by multiplying the number of Rights associated
with each share of Company Common Stock immediately prior to such event by a fraction the numerator of which shall be the total
number of shares of Company Common Stock outstanding immediately prior to the occurrence of the event and the denominator of which
shall be the total number of shares of Company Common Stock outstanding immediately following the occurrence of such event.

Section 12.             
Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in
Section 11 or Section 13, the Company shall (a) promptly prepare a certificate setting forth such
adjustment and a brief statement of the facts accounting for such adjustment, (b) promptly file with the Rights Agent, and
with each transfer agent for the Preferred Stock and the Company Common Stock, a copy of such certificate, and (c) make available
a brief summary thereof to each holder of a Rights Certificate (or, if prior to the Distribution Date, to each holder of shares
of Company Common Stock) in accordance with Section 25. The Rights Agent shall be fully protected in relying on any
such certificate and on any adjustment therein contained and shall not be deemed to have knowledge of any such adjustment unless
and until it shall have received such certificate.

Section 13.             
Consolidation, Merger or Sale or Transfer of Assets or Earning Power. (a)  In the event that, following
the Stock Acquisition Date, directly or indirectly, either (x) the Company shall consolidate with, or merge with and into,
any other Person (other than a Subsidiary of the Company in a transaction that complies with Section 11(o)), and either
(A) the Company shall not be the continuing or surviving corporation of such consolidation or merger or (B) holders of shares of
Company Common Stock immediately prior thereto shall not control 50% or more of the total voting power of the consolidated or merged
corporation, (y) any Person (other than a Subsidiary of the Company in a transaction that complies with Section 11(o))
shall consolidate with, or merge with or into, the Company, and the Company shall be the continuing or surviving corporation of
such consolidation or merger and, in connection with such consolidation or merger, all or part of the outstanding shares of Company
Common Stock shall be converted into or exchanged for stock or other securities of any other Person or cash or any other property,
or (z) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer)
to any Person or Persons (other than the Company or any of its Subsidiaries in one or more transactions each of which complies
with Section 11(o)), in one or more transactions, assets or earning power aggregating more than 50% of the assets or

    	 	23	 

     

    

 

earning power of the Company and its Subsidiaries, taken as a whole (any such event described in clause (x), (y) or (z) being a
“Section 13 Event”), then, and in each such case, proper provision shall be made so that: (i) each
holder of a Right, except as provided in Section 7(e), shall thereafter have the right to receive, upon the exercise
thereof at the then current Purchase Price, such number of validly authorized and issued, fully paid and non-assessable shares
of Common Stock of the Principal Party, which shares shall not be subject to any liens, encumbrances, rights of first refusal,
transfer restrictions or other adverse claims, as shall be equal to the result obtained by (1) multiplying the then current
Purchase Price by the number of Units of Preferred Stock for which a Right is exercisable immediately prior to the first occurrence
of a Section 13 Event (or, if a Section 11(a)(ii) Event has occurred prior to the first occurrence of a Section 13
Event, multiplying the number of such Units for which a Right would be exercisable hereunder but for the occurrence of such Section 11(a)(ii)
Event by the Purchase Price that would be in effect hereunder but for such first occurrence) and (2) dividing that product
(which, following the first occurrence of a Section 13 Event, shall be the “Purchase Price” for all purposes of
this Agreement) by 50% of the current market price (determined pursuant to Section 11(d)) per share of the Common Stock
of such Principal Party on the date of consummation of such Section 13 Event; (ii) such Principal Party shall thereafter
be liable for, and shall assume, by virtue of such Section 13 Event, all the obligations and duties of the Company pursuant
to this Agreement; (iii) the term “Company” shall, for all purposes of this Agreement, thereafter be deemed to
refer to such Principal Party, it being specifically intended that the provisions of Section 11 shall apply only to
such Principal Party following the first occurrence of a Section 13 Event; (iv) such Principal Party shall take such
steps (including, but not limited to, the reservation of a sufficient number of shares of its Common Stock) in connection with
the consummation of any such transaction as may be necessary to ensure that the provisions of this Agreement shall thereafter be
applicable to its shares of Common Stock thereafter deliverable upon the exercise of the Rights; and (v) the provisions of
Section 11(a)(ii) shall be of no further effect following the first occurrence of any Section 13 Event.

(b)              
“Principal Party” shall mean:

(i)                
in the case of any transaction described in clause (x) or (y) of the first sentence of Section 13(a), (A) the
Person that is the issuer of any securities into which shares of Company Common Stock are converted in such merger or consolidation,
or, if there is more than one such issuer, the issuer of Common Stock that has the highest aggregate current market price (determined
pursuant to Section 11(d)) and (B) if no securities are so issued, the Person that is the other party to such
merger or consolidation, or, if there is more than one such Person, the Person the Common Stock of which has the highest aggregate
current market price (determined pursuant to Section 11(d)); and

(ii)             
in the case of any transaction described in clause (z) of the first sentence of Section 13(a), the Person
that is the party receiving the largest portion of the assets or earning power transferred pursuant to such transaction or transactions,
or, if each Person that is a party to such transaction or transactions receives the same portion of the assets or earning power
transferred pursuant to such transaction or transactions or if the Person receiving the largest portion of the assets or earning
power cannot be determined, whichever Person the Common Stock of which has the highest aggregate current market price (determined
pursuant to Section 11(d)); provided, however, that in

    	 	24	 

     

    

 

any such case, (A) if the Common Stock of
such Person is not at such time and has not been continuously over the preceding 12 month period registered under Section 12
of the Exchange Act (“Registered Common Stock”), or such Person is not a corporation, and such Person is a direct
or indirect Subsidiary of another Person that has Registered Common Stock outstanding, “Principal Party” shall refer
to such other Person; (B) if the Common Stock of such Person is not Registered Common Stock or such Person is not a corporation,
and such Person is a direct or indirect Subsidiary of another Person but is not a direct or indirect Subsidiary of another Person
that has Registered Common Stock outstanding, “Principal Party” shall refer to the ultimate parent entity of such first-mentioned
Person; (B) if the Common Stock of such Person is not Registered Common Stock or such Person is not a corporation, and such
Person is directly or indirectly controlled by more than one Person, and one or more of such other Persons has Registered Common
Stock outstanding, “Principal Party” shall refer to whichever of such other Persons is the issuer of the Registered
Common Stock having the highest aggregate current market price (determined pursuant to Section 11(d)); and (D) if
the Common Stock of such Person is not Registered Common Stock or such Person is not a corporation, and such Person is directly
or indirectly controlled by more than one Person, and none of such other Persons have Registered Common Stock outstanding, “Principal
Party” shall refer to whichever ultimate parent entity is the corporation having the greatest stockholders’ equity
or, if no such ultimate parent entity is a corporation, shall refer to whichever ultimate parent entity is the entity having the
greatest net assets.

(c)              
The Company shall not consummate any such consolidation, merger, sale or transfer unless the Principal Party shall have
a sufficient number of authorized shares of its Common Stock that have not been issued or reserved for issuance to permit the exercise
in full of the Rights in accordance with this Section 13, and unless prior thereto the Company and such Principal Party
shall have executed and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in Sections 13(a)
and (b) and further providing that the Principal Party will:

(i)                
(A) file on an appropriate form, as soon as practicable following the execution of such agreement, a registration statement
under the Securities Act with respect to the Common Stock that may be acquired upon exercise of the Rights, (B) cause such
registration statement to remain effective (and to include a prospectus complying with the requirements of the Securities Act)
until the Expiration Date, and (C) as soon as practicable following the execution of such agreement take such action as may
be required to ensure that any acquisition of such Common Stock upon the exercise of the Rights complies with any applicable state
securities or “blue sky” laws; and

(ii)             
deliver to holders of the Rights historical financial statements for the Principal Party and each of its Affiliates that
comply in all respects with the requirements for registration on Form 10 under the Exchange Act. 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 pursuant to this Section 13
by the Rights.

    	 	25	 

     

    

 

(d)              
In case the Principal Party that is to be a party to a transaction referred to in this Section 13 has a provision
in any of its authorized securities or in its Certificate of Incorporation or By-laws or other instrument governing its corporate
affairs, which provision would have the effect of (i) causing such Principal Party to issue, in connection with, or as a consequence
of, the consummation of a transaction referred to in this Section 13, shares of Common Stock of such Principal Party
at less than the then current market price per share (determined pursuant to Section 11(d)) or securities exercisable
for, or convertible into, Common Stock of such Principal Party at less than such then current market price (other than to holders
of Rights pursuant to this Section 13) or (ii) providing for any special payment, tax or similar provisions in
connection with the issuance of the Common Stock of such Principal Party pursuant to the provisions of this Section 13,
then, in such event, the Company shall not consummate any such transaction unless prior thereto the Company and such Principal
Party shall have executed and delivered to the Rights Agent a supplemental agreement providing that the provision in question of
such Principal Party shall have been cancelled, waived or amended, or that the authorized securities shall be redeemed, so that
the applicable provision will have no effect in connection with, or as a consequence of, the consummation of the proposed transaction.

(e)              
The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or
other transfers. In the event that a Section 13 Event shall occur at any time after the occurrence of a Section 11(a)(ii)
Event, the Rights that have not theretofore been exercised shall thereafter become exercisable in the manner described in Section 13(a).

Section 14.             
Fractional Rights, Units and Shares of Preferred Stock. (a) The Company shall not be required to issue fractions
of Rights or to distribute Rights Certificates that evidence fractional Rights. In lieu of such fractional Rights, there shall
be paid to the Persons to which such fractional Rights would otherwise be issuable, an amount in cash equal to such fraction of
the market value of a whole Right. For purposes of this Section 14(a), the market value of a whole Right shall be the
closing price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise
issuable. The closing price of the Rights for any day shall be, if the Rights are listed or admitted to trading on a national securities
exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed on the principal
national securities exchange on which the Rights are listed or admitted to trading or, if the Rights are not listed or admitted
to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low
asked prices in the over-the-counter market, as reported by the NASDAQ National Market or such other system then in use or, if
on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished
by a professional market maker making a market in the Rights selected by the Company’s Board of Directors. If on any such
date no such market maker is making a market in the Rights, the fair value of the Rights on such date as determined in good faith
by the Company’s Board of Directors shall be used and such determination shall be described in a statement filed with the
Rights Agent and shall be conclusive for all purposes.

(b)              
The Company shall not be required to issue fractions of Units or of shares of Preferred Stock (other than fractions that
are integral multiples of one one-thousandth of a share of Preferred Stock) upon exercise of the Rights or to distribute certificates
that evidence

    	 	26	 

     

    

 

such fractional Units or shares of Preferred Stock (other than fractions that are integral multiples of one one-thousandth
of a share of Preferred Stock). In lieu of such fractional Units or of shares of Preferred Stock (other than fractions that are
integral multiples of one one-thousandth of a share of Preferred Stock), the Company may pay to the registered holders of Rights
Certificates, at the time such Rights are exercised or exchanged as herein provided, an amount in cash equal to the same fraction
of the then current market price of a Unit or of a share of Preferred Stock on the day of exercise or exchange, determined in accordance
with Section 11(d).

(c)              
The holder of a Right by the acceptance of such Right expressly waives his right to receive any fractional Rights or any
fractional Units or shares upon exercise or exchange of a Right.

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

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

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

(b)              
after the Distribution Date, the Rights Certificates will be transferable only on the registry books of the Rights Agent
if surrendered at the office of the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper instrument
of transfer and with the appropriate forms and certificates duly executed;

(c)              
subject to Section 6(a) and Section 7(f), the Company and the Rights Agent may deem and treat the
Person in whose name any Rights Certificate (or, prior to the Distribution Date, the associated Company Common Stock) is registered,
as the absolute owner thereof and of the Rights evidenced thereby for all purposes whatsoever (notwithstanding any notations of
ownership or writing on any Rights Certificate, any associated Company Common Stock certificate or any associated notation in book
entry made by anyone other than the Company or the Rights Agent), and neither the Company nor the Rights Agent, subject to the
last sentence of Section 7(e), shall be affected by any notice to the contrary; and

    	 	27	 

     

    

 

(d)              
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 any other Person as a result of its inability to perform any of its obligations under this Agreement
by reason of any preliminary or permanent injunction or other order, decree, 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;
provided, however, that the Company must use its best efforts to have any such order, decree, judgment or ruling
lifted or otherwise overturned as promptly as practicable.

Section 17.             
Rights Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Rights Certificate shall be
entitled to vote, receive dividends or be deemed for any purpose the holder of the number of shares of Preferred Stock or any other
securities of the Company that may at any time be issuable on the exercise of the Rights evidenced thereby, nor shall anything
contained herein or in any Rights Certificate be construed to confer upon the holder of any Rights Certificate, as such, any of
the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, or to give or withhold consent to any corporate action, or, except as provided in Section 24,
to receive notice of meetings or other actions affecting stockholders, or to receive dividends or subscription rights, or otherwise.

Section 18.             
Concerning the Rights Agent. (a) The Company agrees to pay to the Rights Agent reasonable compensation for
all services rendered by it hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses, including
reasonable fees and disbursements of its counsel, incurred in connection with the execution and administration of this Agreement
and the exercise and performance of its duties hereunder. The Company shall indemnify the Rights Agent for, and hold it harmless
against, any loss, liability, or expense, incurred without gross negligence, bad faith or intentional misconduct on the part of
the Rights Agent, for anything done or omitted by the Rights Agent in connection with the acceptance and administration of this
Agreement, including the costs and expenses of defending against any claim of liability hereunder.

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

Section 19.             
Merger or Consolidation or Change of Name of Rights Agent.

(a)  Any corporation into which the Rights Agent or any successor Rights Agent may be merged or with which it may be
consolidated, or any corporation resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent
shall be a party, or any

    	 	28	 

     

    

 

corporation succeeding to the corporate trust or shareholder 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 document or any further act on the part of any of the parties hereto; provided that such corporation would be eligible
for appointment as a successor Rights Agent under the provisions of Section 21. In case at the time such successor
Rights Agent shall succeed to the agency created by this Agreement, any of the Rights Certificates shall have been countersigned
but not delivered, any such successor Rights Agent may adopt the countersignature of a predecessor Rights Agent and deliver such
Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned,
any successor Rights Agent may countersign such Rights Certificates either in the name of the predecessor or in the name of the
successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates
and in this Agreement.

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

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

(a)              
The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel
shall be full and complete authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith
and in accordance with such opinion.

(b)              
Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that
any fact or matter (including, without limitation, the identity of any Acquiring Person and the determination of “current
market price”) be proved or established by the Company prior to taking or suffering any action hereunder, such fact or matter
(unless other evidence in respect thereof be specified herein) may be deemed to be conclusively proved and established by a certificate
signed by the Chairman of the Board, the President, any Vice President, the Treasurer, any Assistant Treasurer, the Secretary or
any Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full authorization to the
Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such
certificate.

(c)              
The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or intentional misconduct.

    	 	29	 

     

    

 

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

(e)              
The Rights Agent shall not have any responsibility for the validity of this Agreement or the execution and delivery hereof
(except the due execution and delivery hereof by the Rights Agent) or for the validity or execution of any Rights Certificate (except
its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or failure by the Company
to satisfy conditions contained in this Agreement or in any Rights Certificate; nor shall it be responsible for any adjustment
required under the provisions of Section 11 or Section 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 Rights Certificates after receipt by the Rights Agent of the certificate describing any such adjustment
contemplated by Section 12); nor shall it by any act hereunder be deemed to make any representation or warranty as
to the authorization or reservation of any shares of Preferred Stock or any other securities to be issued pursuant to this Agreement
or any Rights Certificate or as to whether any shares of Preferred Stock or any other securities will, when so issued, be validly
authorized and issued, fully paid and non-assessable.

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

(g)              
The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties
hereunder from the Chairman of the Board, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer
or any Assistant Treasurer of the Company, and to apply to such officers for advice or instructions in connection with its duties,
and it shall not be liable for any action taken or suffered to be taken by it in good faith in accordance with instructions of
any such officer. Any application by the Rights Agent for written instructions from the Company may, at the option of the Rights
Agent, set forth in writing any action proposed to be taken or omitted by the Rights Agent under this Rights Agreement and the
date on and/or after which such action shall be taken or such omission shall be effective. The Rights Agent shall not be liable
for any action taken by, or omission of, the Rights Agent in accordance with a proposal included in any such application on or
after the date specified in such application (which date shall not be less than five Business Days after the date any such officer
of the Company actually receives such application, unless any such officer shall have consented in writing to an earlier date)
unless, prior to taking any such action (or the effective date in the case of an omission), the Rights Agent shall have received
written instructions in response to such application specifying the action to be taken or omitted.

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

    	 	30	 

     

    

 

(i)                
The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder
either itself or by or through its attorneys or agents.

(j)                
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 or in the exercise of its rights hereunder if the Rights Agent shall have reasonable
grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably
assured to it.

(k)              
If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached
to the form of assignment or form of election to purchase, as the case may be, has either not been completed, not signed or indicates
an affirmative response to clause 1 and/or 2 thereof, the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company. If such certificate has been completed and signed and
shows a negative response to clauses 1 and 2 of such certificate, unless previously instructed otherwise in writing by the
Company (which instructions may impose on the Rights Agent additional ministerial responsibilities, but no discretionary responsibilities),
the Rights Agent may assume without further inquiry that the Rights Certificate is not owned by a person described in Section 4(b)
or Section 7(e) and shall not be charged with any knowledge to the contrary.

Section 21.             
Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its
duties under this Agreement upon 30 days’ prior notice in writing mailed to the Company, and to each transfer agent of the
Preferred Stock and the Company Common Stock, by registered or certified mail, and to the holders of the Rights Certificates (or
holders of the Company Common Stock prior to the Distribution Date) by first-class mail. The Company may remove the Rights Agent
or any successor Rights Agent upon 30 days’ prior notice in writing, mailed to the Rights Agent or successor Rights Agent,
as the case may be, and to each transfer agent of the Preferred Stock and the Company Common Stock, by registered or certified
mail, and will notify the holders of the Rights Certificates (or the holders of the Company Common Stock prior to the Distribution
Date). 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 or by a holder of a Rights Certificate (who shall submit such holder’s Rights Certificate for inspection by the Company)
or, prior to the Distribution Date, a holder of Company Common Stock, then any registered holder of any Rights Certificate or,
prior to the Distribution Date, any holder of Company Common Stock, may apply to any court of competent jurisdiction for the appointment
of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a corporation
organized and doing business under the laws of the United States or any state of the United States in good standing, shall be authorized
to do business as a banking institution in the State of New York, shall be authorized under such laws to exercise

    	 	31	 

     

    

 

corporate trust
or stock transfer powers, shall be subject to supervision or examination by federal or state authorities and shall have at the
time of its appointment as Rights Agent a combined capital and surplus of at least $100,000,000 or (b) an Affiliate of a corporation
described in clause (a). After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties
and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights
Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver
any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment,
the Company shall file notice thereof in writing with the predecessor Rights Agent and each transfer agent of the Preferred Stock
and the Company Common Stock, and notify the registered holders of the Rights Certificates (or holders of the Company Common Stock
prior to the Distribution Date). 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.

Section 22.             
Issuance of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or the Rights
to the contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved
by the Company’s Board of Directors to reflect any adjustment or change made in accordance with the provisions of this Agreement
in the Purchase Price or the number or kind or class of shares or other securities or property that may be acquired upon exercise
of the Rights. In addition, in connection with the issuance or sale of shares of Company Common Stock following the Distribution
Date and prior to the Expiration Date, the Company (a) shall, with respect to shares of Company Common Stock so issued or
sold pursuant to the exercise of stock options or under any employee or non-employee director plan or arrangement, or upon the
exercise, conversion or exchange of securities hereinafter issued by the Company, and (b) may, in any other case, if deemed
necessary or appropriate by the Company’s Board of Directors, issue Rights Certificates evidencing the appropriate number
of Rights in connection with such issuance or sale; provided, however, that (i) no such Rights Certificate shall
be issued if, and to the extent that, the Company shall be advised by counsel that such issuance would create a significant risk
of material adverse tax consequences to the Company or the Person to whom such Rights Certificate would be issued and (ii) no
such Rights Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu
of the issuance thereof.

Section 23.             
Redemption and Termination. (a) Subject to Section 28, the Company may, at its option, by action
of the Company’s Board of Directors, at any time prior to the earlier of (i) the Close of Business on the Stock Acquisition
Date or (ii) the Final Expiration Date (such date, the “Redemption Date”), redeem all but not less than all
of the then outstanding Rights at a redemption price of $.01 per Right, as such amount may be appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after the Rights Dividend Declaration Date (such redemption price
being the “Redemption Price”), and the Company may, at its option, by action of the Company’s Board of
Directors, pay the Redemption Price either in shares of Company Common Stock (based on the current market price, determined in
accordance with Section 11(d), of the shares of Company Common Stock at the time of redemption) or cash. Subject to
the foregoing, 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.

    	 	32	 

     

    

 

(b)              
Immediately upon the action of the Company’s Board of Directors ordering the redemption of the Rights, evidence of
which shall be filed with the Rights Agent, and without any further action and without any notice, the right to exercise the Rights
will terminate and the only right thereafter of the holders of Rights shall be to receive the Redemption Price for each Right so
held. Promptly after the action of the Company’s Board of Directors ordering the redemption of the Rights, the Company shall
give notice of such redemption to the Rights Agent and the holders of the then outstanding Rights. Any notice that is given in
the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption
will state the method by which the payment of the Redemption Price will be made.

Section 24.             
Notice of Certain Events. (a) In case the Company shall propose, at any time after the Distribution Date,
(i) to pay any dividend payable in stock of any class to the holders of Preferred Stock or to make any other distribution
to the holders of Preferred Stock (other than a regular quarterly cash dividend out of earnings or retained earnings of the Company),
(ii) to offer to the holders of Preferred Stock rights or warrants to subscribe for or to purchase any additional shares of
Preferred Stock or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification
of the Preferred Stock (other than a reclassification involving only the subdivision of outstanding shares of Preferred Stock),
(iv) to effect any consolidation or merger into or with any other Person (other than a Subsidiary of the Company in a transaction
that complies with Section 11(o)), or to effect any sale or other transfer (or to permit one or more of its Subsidiaries
to effect any sale or other transfer), in one or more transactions, of more than 50% of the assets or earning power of the Company
and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in
one or more transactions each of which complies with Section 11(o)) or (v) to effect the liquidation, dissolution
or winding up of the Company, then, in each such case, the Company shall give to each holder of a Rights Certificate (or, prior
to the Distribution Date, to each holder of Company Common Stock), to the extent feasible and in accordance with Section 25,
a notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, distribution of
rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution
or winding up is to take place and the date of participation therein by the holders of the shares of Preferred Stock, if any such
date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least
20 days prior to the record date for determining holders of the shares of Preferred Stock for purposes of such action, and in the
case of any such other action, at least 20 days prior to the date of the taking of such proposed action or the date of participation
therein by the holders of the shares of Preferred Stock, whichever shall be the earlier; provided, however, that
no such notice shall be required pursuant to this Section 24 in relation to a transaction in which any Subsidiary of
the Company effects a consolidation or merger with or into, or effects a sale or other transfer of assets or earning power to,
any other Subsidiary of the Company.

(b)              
In case any of the events set forth in Section 11(a)(ii) shall occur, then, in any such case, the Company shall
as soon as practicable thereafter give to each holder of a Rights Certificate (or, prior to the Distribution Date, to each holder
of Company Common Stock), to the extent feasible and in accordance with Section 25, a notice of the occurrence of such
event, which shall specify the event and the consequences of the event to holders of Rights under Section 11(a)(ii).

    	 	33	 

     

    

 

Section 25.             
Notices.

(a)              
All notices and other communications under this Agreement shall be in writing and shall be deemed given when delivered personally
by hand or by overnight courier or other delivery method or when sent by electronic mail transmission (provided that, in
the case of electronic mail transmission, either receipt of such electronic mail is acknowledged by the applicable recipient or
a confirmatory hardcopy is sent without undue delay by an internationally recognized courier service), in each case, to the following
physical and electronic mail addresses (or to such other physical and electronic mail address as a party hereto may have specified
by notice pursuant to this provision):

(i)                
If to the Company:

The Chefs’ Warehouse, Inc.

100 East Ridge Road

Ridgefield, CT 06877

	Attention:	Alexandrous Aldous,
	 	General Counsel, Chief Government Relations

        Officer & Corporate Secretary

	Email:	AAldous@chefswarehouse.com

 

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

Shearman
& Sterling LLP

599 Lexington Avenue

New York, NY 10022

	Attention:	George A. Casey
	 	Heiko Schiwek

	Email:	George.Casey@shearman.com
	 	HSchiwek@shearman.com

(ii)             
If to the Rights Agent:

American Stock Transfer & Trust Company,
LLC

6201 15th Avenue

Brooklyn, NY 11219

	Attention:	Corporate Trust Department

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

 

American Stock Transfer & Trust Company,
LLC

48 Wall Street, 22nd Floor

New York, NY 10005

	Attention:	Legal Department

 

    	 	34	 

     

    

 

(b)              
Notices or demands authorized or required by this Agreement to be given or made by the Company or the Rights Agent to the
holder of any Rights Certificate (or, if prior to the Distribution Date, to the holder of any shares of Company Common Stock) shall
be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder
as shown on the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent
for the Company Common Stock.

Section 26.             
Supplements and Amendments. Prior to the Distribution Date, the Company may and the Rights Agent shall, if
the Company so directs, supplement or amend any provision of this Agreement without the approval of any holders of shares of Company
Common Stock. From and after the Distribution Date the Company may and the Rights Agent shall, if the Company so directs, supplement
or amend this Agreement without the approval of any holders of Rights Certificates in order (a) to cure any ambiguity, (b) to
correct or supplement any provision contained herein that may be defective or inconsistent with any other provisions herein, (c) to
shorten or lengthen any time period hereunder or (d) to change or supplement the provisions hereunder in any manner which
the Company may deem necessary or desirable and which shall not adversely affect the interests of the holders of Rights (other
than an Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided, however, that this Agreement
may not be supplemented or amended to lengthen, pursuant to clause (c) of this sentence, (i) subject to Section 30,
a time period relating to when the Rights may be redeemed at such time as the Rights are not then redeemable or (ii) any other
time period unless such lengthening is for the purpose of protecting, enhancing or clarifying the rights of, and/or the benefits
to, the holders of Rights. Upon the delivery of a certificate from an appropriate officer of the Company or, so long as any Person
is an Acquiring Person hereunder, from the majority of the Company’s Board of Directors, that states that the proposed supplement
or amendment is in compliance with the terms of this Section 26, the Rights Agent shall execute such supplement or
amendment. Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the interests
of the holders of Company Common Stock.

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

Section 28.             
Determinations and Actions by the Board of Directors, Etc. For all purposes of this Agreement, any calculation
of the number of shares of Company Common Stock outstanding at any particular time, including for purposes of determining the particular
percentage of such outstanding shares of Company Common Stock of which any Person is the Beneficial Owner, shall be made in accordance
with the last sentence of Rule 13d-3(d)(1)(i) of the Exchange Act Regulations as in effect on the date hereof. Except
as otherwise specifically provided herein, the Board of Directors of the Company shall have the exclusive power and authority to
administer this Agreement and to exercise all rights and powers specifically granted to the Board of Directors of the Company or
to the Company, or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the
right and power (i) to interpret the provisions of this Agreement and (ii) to make all determinations deemed necessary
or advisable for the administration of this Agreement. All such actions, calculations, interpretations and determinations (including,
for purposes of clause (y) below, all omissions with respect to the foregoing) that are done or made by the Board

    	 	35	 

     

    

 

of Directors
in good faith shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all
other parties, and (y) not subject the Board of Directors of the Company or any member thereof to any liability to the holders
of the Rights.

Section 29.             
Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than
the Company, the Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, registered
holders of shares of Company Common Stock) 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 Rights Certificates (and,
prior to the Distribution Date, registered holders of shares of Company Common Stock).

Section 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,
however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction
is held by such court or authority to be invalid, void or unenforceable and the Company’s Board of Directors determines in
its good faith judgment that severing the invalid language from this Agreement would adversely affect the purpose or effect of
this Agreement and the Rights shall not then be redeemable, the right of redemption set forth in Section 23 shall be
reinstated and shall not expire until the Close of Business on the tenth Business Day following the date of such determination
by the Company’s Board of Directors.

Section 31.             
Governing Law. This Agreement, each Right and each Rights Certificate issued hereunder shall be governed by,
and construed in accordance with, the laws of the State of Delaware; provided, however, that Sections 18,
19, 20 and 21 shall be governed by, and construed in accordance with, the laws of the State of New York.

Section 32.             
Counterparts. This Agreement may be executed (including by facsimile) in one or more counterparts, and by
the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, but all of
which taken together shall constitute one and the same instrument.

Section 33.             
Descriptive Headings. The headings contained in this Agreement are for descriptive purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.

Section 34.             
Exchange.

(a)              
 

(i)                
The Company may, at its option, at any time after any person becomes an Acquiring Person, upon resolution adopted by the
Company’s Board of Directors, exchange all or part of the then outstanding and exercisable Rights (which shall not include
Rights that have become null and void pursuant to Section 7(e)) for Units of Preferred Stock at an exchange ratio of
one Unit of Preferred Stock per Right,

    	 	36	 

     

    

 

appropriately adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the Rights Dividend Declaration Date (such exchange ratio being hereinafter referred to as the “Section 34(a)(i)
Exchange Ratio”). Notwithstanding the foregoing, the Company may not effect the exchange described in this Section 34(a)(i)
at any time after any Person (other than the Company, any Subsidiary of the Company, any employee benefit plan maintained by the
Company or any of its Subsidiaries, or any trustee or fiduciary with respect to such plan acting in such capacity), together with
all Affiliates and Associates of such Person, becomes the Beneficial Owner of 50% or more of the shares of Company Common Stock
then outstanding.

(ii)             
The Company may, at its option, at any time after any person becomes an Acquiring Person, upon resolution adopted by the
Company’s Board of Directors, exchange all or part of the then outstanding and exercisable Rights (which shall not include
Rights that have become null and void pursuant to Section 7(e)) for Units of Preferred Stock at an exchange ratio specified
in the following sentence, as appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring
after the Rights Dividend Declaration Date. Subject to such adjustment, each Right may be exchanged for that number of Units of
Preferred Stock obtained by dividing the Adjustment Spread (as defined below) by the then-current market price (determined pursuant
to Section 11(d)) per Unit of Preferred Stock on the earlier of (i) the date on which any Person becomes an Acquiring
Person and (ii) the date on which a tender or exchange offer by any Person (other than the Company, any Subsidiary of the
Company, any employee benefit plan maintained by the Company or any of its Subsidiaries or any trustee or fiduciary with respect
to such plan acting in such capacity) is commenced within the meaning of Rule 14d-2 of the Exchange Act Regulations or
any successor rule, if upon consummation thereof such Person would be the Beneficial Owner of 10% (20% in the case of a Passive
Institutional Investor) or more of the shares of Company Common Stock then outstanding (such exchange ratio being the “Section 34(a)(ii)
Exchange Ratio”). The “Adjustment Spread” shall equal (x) the aggregate market price on the date
of such event of the number of Adjustment Shares determined pursuant to Section 11(a)(ii), minus (y) the Purchase
Price.

(iii)           
Without limiting the foregoing, prior to effecting an exchange pursuant to this Section 34, the Company’s
Board of Directors may direct the Company to enter into a Trust Agreement in such form and with such terms as the Board shall then
approve (the “Trust Agreement”). If the Company’s Board of Directors so directs, the Company shall enter
into the Trust Agreement and shall issue to the trust created by such agreement (the “Trust”) all of the Units
of Preferred Stock issuable pursuant to the exchange (or any portion thereof that has not theretofore been issued in connection
with the exchange). From and after the time at which such Units of Preferred Stock are issued to the Trust, all Rights holders
then entitled to receive Units of Preferred Stock pursuant to the exchange shall be entitled to receive such Units of Preferred
Stock (and any dividends or distributions made thereon after the date on which such Units of Preferred Stock are deposited in the
Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the Trust Agreement. Any Units
of Preferred Stock issued at the direction of the Company’s Board of Directors in connection herewith shall be validly issued,
fully paid and nonassessable, and the Company shall be deemed to have received as consideration for such issuance a benefit having
a value that is at least equal to the aggregate par value of the Units of Preferred Stock so issued.

    	 	37	 

     

    

 

(b)              
Immediately upon the action of the Company’s Board of Directors ordering the exchange of any Rights pursuant to Section 34(a)
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 Units of Preferred Stock equal to the number of such Rights held
by such holder multiplied by the Section 34(a)(i) Exchange Ratio or Section 34(a)(ii) Exchange Ratio, as the case may be.
The Company shall promptly give public notice of any such exchange; provided, however, that the failure to give,
or any defect in, such notice shall not affect the validity of such exchange. Any notice that is given in the manner herein provided
shall be deemed given, whether or not the holder receives the notice. Each such notice of exchange shall state the method by which
the exchange of Units of Preferred Stock for Rights will be effected and, in the event of any partial exchange, the number of Rights
that will be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights that have
become null and void pursuant to Section 7(e)) held by each holder of Rights.

(c)              
In the event that the number of shares of Preferred Stock that are authorized by the Company’s Certificate of Incorporation
but not outstanding or reserved for issuance for purposes other than upon exercise of the Rights are not sufficient to permit any
exchange of Rights as contemplated in accordance with this Section 34, the Company shall take all such action as may
be necessary to authorize additional shares of Preferred Stock for issuance upon exchange of the Rights or make adequate provision
to substitute (i) cash, (ii) Company Common Stock or other equity securities of the Company, (iii) debt securities
of the Company, (iv) other assets or (v) any combination of the foregoing, having an aggregate value equal to the Adjustment
Spread, where such aggregate value has been determined by the Company’s Board of Directors.

(d)              
The Company shall not be required to issue fractions of Units of Preferred Stock or to distribute certificates that evidence
fractional Units. In lieu of fractional Units, the Company may pay to the registered holders of Rights Certificates at the time
such Rights are exchanged as herein provided an amount in cash equal to the same fraction of the current market price (determined
pursuant to Section 11(d)) of one Unit of Preferred Stock.

[Signature Page
to Follow]

 

 

 

 

 

 

 

 

 

    	 	38	 

     

    

 

 

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

 

 

	 	THE CHEFS’ WAREHOUSE, INC.
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Alexandros Aldous

	 	 	 Name:	Alexandros Aldous
	 	 	 Title:  	General Counsel, Corporate Secretary and
	 	 	 	Chief Government Relations Officer
	 	 	 	 
	 	 	 	 
	 	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Michael A. Nespoli
	 	 	 Name:	Michael A. Nespoli
	 	 	 Title:	Executive Director
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 

 

 

 

    	 		 

     

    

 

EXHIBIT A

Form of Rights Certificate

Certificate No. ___ ___ Rights

NOT EXERCISABLE
AFTER THE EXPIRATION DATE (AS DEFINED IN THE RIGHTS AGREEMENT REFERRED TO BELOW). THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE
OPTION OF THE COMPANY, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES (SPECIFIED IN THE RIGHTS AGREEMENT),
RIGHTS BENEFICIALLY OWNED BY ACQUIRING PERSONS (AS DEFINED IN THE RIGHTS AGREEMENT) OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY
BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR
BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT
REFERRED TO BELOW). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES
SPECIFIED IN SECTION 7(e) OF THE RIGHTS AGREEMENT.]*

RIGHTS CERTIFICATE

THE
CHEFS’ WAREHOUSE, INC.

This certifies that
__________, or registered assigns, is the registered holder of the number of Rights set forth above, each of which entitles the
registered holder thereof, subject to the terms and conditions of the Rights Agreement dated as of March 22, 2020 (the “Rights
Agreement”; terms defined therein are used herein with the same meaning unless otherwise defined herein) between The
Chefs’ Warehouse, Inc., a Delaware corporation (the “Company”),
and American Stock Transfer & Trust Company, LLC, a New York limited liability trust company, as Rights Agent (which term shall
include any successor Rights Agent under the Rights Agreement), to purchase from the Company at any time after the Distribution
Date and prior to the Expiration Date at the office of the Rights Agent, one one-thousandth of a fully paid and non-assessable
share of Series A Preferred Stock, par value $0.01 per share (the “Preferred Stock”), of the Company at the
Purchase Price initially of $40.00 per one one-thousandth share (each such one one-thousandth of a share being a “Unit”)
of Preferred Stock, upon presentation and surrender of this Rights Certificate with the Election to Purchase and related certificate
duly executed. The number of Rights evidenced by this Rights Certificate (and the number of Units that may be purchased upon exercise
thereof) set forth above, and the Purchase Price per Unit set forth above shall be subject to adjustment in certain events as provided
in the Rights Agreement.

Upon the occurrence
of a Section 11(a)(ii) Event or Section 13 Event, if the Rights evidenced by this Rights Certificate are beneficially owned by
an Acquiring Person or an Affiliate or Associate of any such Acquiring Person or, under certain circumstances described in the
Rights Agreement, a transferee of any such Acquiring Person, Associate or Affiliate, such Rights shall become null and void and
no holder hereof shall have any right with respect to such Rights from and after the occurrence of such Section 11(a)(ii) Event.

 

 

		*	Note: The portion of the legend in brackets shall be inserted only if applicable and shall replace
the preceding sentence.

    	 		 

     

    

 

In certain circumstances
described in the Rights Agreement, the Rights evidenced hereby may entitle the registered holder thereof to purchase capital stock
of an entity other than the Company or to receive common stock, cash or other assets, all as provided in the Rights Agreement.

This Rights Certificate
is subject to all of the terms and conditions of the Rights Agreement, which terms and conditions are hereby incorporated herein
by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Rights
Certificates. Copies of the Rights Agreement are on file at the principal office of the Company and are available from the Company
upon written request.

This Rights Certificate,
with or without other Rights Certificates, upon surrender at the office of the Rights Agent designated for such purpose, may be
exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing an aggregate number of Rights
equal to the aggregate number of Rights evidenced by the Rights Certificate or Rights Certificates surrendered. If this Rights
Certificate shall be exercised in part, the registered holder shall be entitled to receive, upon surrender hereof, another Rights
Certificate or Rights Certificates for the number of whole Rights not exercised.

Subject to the provisions
of the Rights Agreement, the Rights evidenced by this Certificate may be redeemed by the Company under certain circumstances at
its option at a redemption price of $0.01 per Right, payable at the Company’s option in cash or in common stock of the Company,
subject to adjustment in certain events as provided in the Rights Agreement.

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

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

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

    	 	2	 

     

    

 

WITNESS the facsimile
signature of the proper officers of the Company and its corporate seal. Dated as of _____ __, 202_.

 

	ATTEST:		THE
CHEFS’ WAREHOUSE, INC.
	 	 	 	 	 
	By:	 	 	By:	   
	 	Name:	 	 	Name:
	 	Title:	 	 	Title:

 

Countersigned:

AMERICAN STOCK TRANSFER & TRUST COMPANY,
LLC, as Rights Agent

 

	By:	 	 		    
	 	Name:	 	 	 
	 	Title:	 	 	 

 

 

 

 

 

 

 

 

 

    	 	3	 

     

    

 

 

[Form of Reverse Side of Rights Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder
if

such holder desires to transfer the

Rights Certificate.)

 

FOR VALUE RECEIVED ________________________________ hereby
sells, assigns and transfers unto (please print name and address of transferee) ______________________________________________________________________________ ________________________________________________
this Rights Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
___________ , Attorney, to transfer the within Rights Certificate on the books of the within-named Company, with full power of
substitution.

 

Dated: _____ __, 202_

 

	 	 	 
	 	Signature	 

  

Signature Guaranteed:

 

 

 

 

 

    	 		 

     

    

 

CERTIFICATE

The undersigned hereby
certifies by checking the appropriate boxes that:

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

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

	Dated: _____ __, 202_	____________________________
	 	Signature

 

Signature Guaranteed:

--------------------------------------------------------------

NOTICE

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

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

 

 

 

 

    	 		 

     

    

 

FORM OF ELECTION TO PURCHASE

(To be executed if the registered holder

desires to exercise Rights represented

by the Rights Certificate.)

 

To: THE CHEFS’
WAREHOUSE, INC.

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

____________________________________________________

(Please print name and address)

____________________________________________________

____________________________________________________

Please insert social security

or other identifying number: _____________________________

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

____________________________________________________

(Please print name and address)

____________________________________________________

____________________________________________________

Please insert social security

or other identifying number: _____________________________

Dated: _____ __, 202_

	 	 	 
	 	Signature	 

 

Signature Guaranteed:

 

    	 		 

     

    

 

CERTIFICATE

The undersigned hereby
certifies by checking the appropriate boxes that:

(1)              
the Rights evidenced by this Rights Certificate [ ] are [ ] are not beneficially owned by an Acquiring Person or an Affiliate
or an Associate thereof (as defined in the Rights Agreement); and

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

	Dated: _____ __, 202_	____________________________
	 	Signature

 

Signature Guaranteed:

--------------------------------------------------------------

NOTICE

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

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

 

 

 

 

 

 

 

 

 

    	 		 

     

    

 

EXHIBIT B

SUMMARY OF RIGHTS TO PURCHASE

PREFERRED STOCK

On March 22, 2020, the Board of Directors
of The Chefs’ Warehouse, a Delaware corporation (the “Company”), declared a distribution of one right
(each, a “Right”) for each share of common stock, par value $0.01 per share (the “Company Common Stock”),
to stockholders of record at the close of business on April 2, 2020 (the “Record Date”) and for each share of
Company Common Stock issued (including shares distributed from Treasury) by the Company thereafter and prior to the Distribution
Date. Each Right entitles the registered holder, subject to the terms of the Rights Agreement (as defined below) to purchase from
the Company one one-thousandth of a share (a “Unit”) of Series A Preferred Stock, par value $0.01 per share
(the “Preferred Stock”), at a Purchase Price of $40.00 per Unit, subject to adjustment. The Purchase Price is
payable in cash or by certified or bank check payable to the order of the Company or by wire transfer to the account of the Company
(provided a notice of such wire transfer is given by the holder of the related Right to the Rights Agent). The description and
terms of the Rights are set forth in a Rights Agreement between the Company and American Stock Transfer & Trust Company, LLC,
a New York limited liability trust company, as Rights Agent (the “Rights Agreement”).

Copies of the Rights Agreement and the
Certificate of Designation for the Preferred Stock have been filed with the Securities and Exchange Commission as exhibits to Current
Report on Form 8-K dated March 23, 2020 (the “Form 8-K”). Copies of the Rights Agreement and the Certificate
of Designation are available free of charge from the Company. This summary description of the Rights and the Preferred Stock does
not purport to be complete and is qualified in its entirety by reference to all the provisions of the Rights Agreement and the
Certificate of Designation, including the definitions therein of certain terms, which Rights Agreement and Certificate of Designation
are incorporated herein by reference.

The Rights Agreement

Initially, the Rights will attach to all
certificates representing shares of outstanding Company Common Stock, and no separate Rights Certificates will be distributed.
The Rights will separate from the Company Common Stock and the “Distribution Date” will occur upon the earlier
of (i) 10 days following the first date of public announcement (the date of such announcement being the “Stock Acquisition
Date”) that a person or group of affiliated or associated persons (other than (i) the Company, any subsidiary of the
Company, or any employee benefit plan of the Company or any such subsidiary or (ii) certain Exempt Persons, as defined and further
described in the Rights Agreement) (an “Acquiring Person”) has acquired, obtained the right to acquire, or
otherwise obtained beneficial ownership of 10% (20% in the case of a Passive Institutional Investor) or more of the shares of
Company Common Stock then outstanding, and (ii) 10 business days (or such later date as may be determined by action of the Company’s
Board of Directors prior to such time as any person becomes an Acquiring Person) following the commencement of a tender or exchange
offer that would result in a person or group beneficially owning 10% (20% in the case of a Passive Institutional Investor) or
more of the then outstanding shares of Company Common Stock. Beneficial ownership as described

    	 		 

     

    

 

above is defined in the Rights Agreement
to include certain synthetic interests in securities created by derivatives contracts designed to provide economic benefits and
allocate risks to a party that correspond substantially to such party’s ownership of a number of shares of Company Common
Stock specified or referenced in such contract or related documentation, or as may be determined by the Company’s Board
of Directors as permitted by the Rights Agreement.

Until the Distribution Date, (i) the Rights
will be evidenced by Company Common Stock certificates (or, in the case of Book Entry Shares, by notation in book entry) and will
be transferred with and only with such Company Common Stock certificates, (ii) Rights shall be issued without any further action
in respect of new Company Common Stock certificates issued (including shares distributed from Treasury) after the Record Date but
prior to the earlier of the Distribution Date and the Expiration Date, (iii) certificates for shares of Company Common Stock that
become outstanding after the Record Date will contain a notation incorporating the Rights Agreement by reference and (iv) the transfer
of any certificates representing outstanding Company Common Stock will also constitute the transfer of the Rights associated with
the Company Common Stock represented by such certificates.

The Rights are not exercisable until the
Distribution Date and will expire at the close of business on the 364th day after the date of the Rights Agreement unless
earlier redeemed or exchanged by the Company as described below.

As promptly as practicable after the Distribution
Date, Rights Certificates will be mailed to each record holder of Company Common Stock as of the close of business on the Distribution
Date and, thereafter, the separate Rights Certificates alone will represent the Rights.

In the event that a Person becomes an Acquiring
Person (a “Section 11(a)(ii) Event”), then each holder of a Right will thereafter have the right to receive,
upon exercise, Units of Preferred Stock (or, in certain circumstances, Company Common Stock, cash, property or other securities
of the Company) having a value equal to two times the exercise price of the Right. The exercise price is the Purchase Price multiplied
by the number of Units of Preferred Stock issuable upon exercise of a Right prior to the events described in this paragraph. Notwithstanding
any of the foregoing, following the occurrence of any of the events set forth in this paragraph, all Rights that are, or (under
certain circumstances specified in the Rights Agreement) were, beneficially owned by any Acquiring Person will be null and void.

In the event that, at any time following
the Stock Acquisition Date, (i) the Company is acquired in a merger or other business combination transaction and the Company
is not the surviving corporation, (ii) any Person consolidates or merges with the Company and all or part of the Company Common
Stock is converted or exchanged for securities, cash or property of any other Person or (iii) 50% or more of the Company’s
assets or earning power is sold or transferred, each holder of a Right (except Rights which previously have been voided as described
above) shall thereafter have the right to receive, upon exercise, common stock of the ultimate parent of the Acquiring Person having
a value equal to two times the exercise price of the Right. The Purchase Price payable, and the number of Units of Preferred Stock
issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent dilution (i) in the event of a stock
dividend on, or a subdivision, combination or reclassification of, the Preferred Stock, (ii) if holders of the Preferred Stock
are granted certain rights or warrants to

    	 		 

     

    

 

subscribe for Preferred Stock or convertible securities at less than the current market
price of the Preferred Stock, or (iii) upon the distribution to the holders of the Preferred Stock of evidences of indebtedness,
cash or assets (excluding regular quarterly cash dividends out of the earnings or retained earnings of the Company) or of subscription
rights or warrants (other than those referred to above).

With certain exceptions, no adjustment
in the Purchase Price will be required until cumulative adjustments amount to at least 1% of the Purchase Price. The Company is
not required to issue fractional Units. In lieu thereof, an adjustment in cash may be made based on the market price of the Preferred
Stock prior to the date of exercise.

At any time prior to the earlier of (i)
the Stock Acquisition Date or (ii) the Final Expiration Date, the Company’s Board of Directors may redeem the Rights in whole,
but not in part, at a price of $0.01 per Right (subject to adjustment in certain events) (the “Redemption Price”),
payable, at the election of the Company’s Board of Directors, in cash or shares of Company Common Stock. Immediately upon
the action of the Company’s Board of Directors ordering the redemption of the Rights, the Rights will terminate and the only
remaining right of the holders of Rights will be to receive the Redemption Price.

The Board of Directors, at its option,
may exchange each Right for (i) one Unit of Preferred Stock or (ii) such number of Units of Preferred Stock as will equal (x) the
difference between the aggregate market price of the number of Units of Preferred Stock to be received upon a Section 11(a)(ii)
Event and the purchase price set forth in the Rights Agreement, divided by (y) the market price per Unit of Preferred Stock upon
a Section 11(a)(ii) Event.

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. While the distribution of the Rights will not be taxable to stockholders or to the Company, stockholders may, depending
upon the circumstances, recognize taxable income in the event that the Rights become exercisable for Units of Preferred Stock (or
other consideration).

Any of the provisions of the Rights Agreement
may be amended without the approval of the holders of Company Common Stock at any time prior to the Distribution Date. After the
Distribution Date, the provisions of the Rights Agreement may be amended in order to cure any ambiguity, defect or inconsistency,
to make changes that do not adversely affect the interests of holders of Rights (excluding the interests of any Acquiring Person),
or to shorten or lengthen any time period under the Rights Agreement; provided, however, that no amendment to adjust
the time period governing redemption shall be made at such time as the Rights are not redeemable.

Description of Preferred Stock

The Units of Preferred Stock that may be
acquired upon exercise of the Rights will be nonredeemable and subordinate to any other shares of preferred stock that may be issued
by the Company.

Each Unit of Preferred Stock will have
a minimum preferential quarterly dividend of $0.01 per Unit or any higher per share dividend declared on the Company Common Stock. 

    	 		 

     

    

 

In the event of liquidation, the holder
of a Unit of Preferred Stock will receive a preferred liquidation payment equal to the greater of $0.01 per Unit and the per share
amount paid in respect of a share of Company Common Stock.

Each Unit of Preferred Stock will have
one vote, voting together with the Company Common Stock. The holders of Units of Preferred Stock, voting as a separate class, shall
be entitled to elect two directors if dividends on the Preferred Stock are in arrears for six fiscal quarters.

In the event of any merger, consolidation
or other transaction in which shares of Company Common Stock are exchanged, each Unit of Preferred Stock will be entitled to receive
the per share amount paid in respect of each share of Company Common Stock.

The rights of holders of the Preferred
Stock to dividends, liquidation and voting, and in the event of mergers and consolidations, are protected by customary antidilution
provisions.

Because of the nature of the Preferred
Stock’s dividend, liquidation and voting rights, the economic value of one Unit of Preferred Stock that may be acquired upon
the exercise of each Right is expected to approximate the economic value of one share of Company Common Stock.

 

 

 

 

 

 

 

 

    	 		 

     

    

 

EXHIBIT C

FORM OF CERTIFICATE OF DESIGNATION

OF THE VOTING POWERS, DESIGNATION,

PREFERENCES AND RELATIVE, PARTICIPATING,

OPTIONAL OR OTHER SPECIAL RIGHTS AND QUALIFICATIONS,

LIMITATIONS AND RESTRICTIONS OF THE

SERIES A PREFERRED STOCK

________________________

Pursuant to Section 151 of the

General Corporation Law of

the State of Delaware

________________________

I, [__________________, ________________]
of The Chefs’ Warehouse, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware
(the “Corporation”), DO HEREBY CERTIFY:

that, pursuant to authority conferred upon
the Board of Directors of the Corporation by its Certificate of Incorporation (the “Certificate”), and, pursuant
to the provisions of Section 151 of the General Corporation Law of the State of Delaware, said Board of Directors, at a duly called
meeting held on March 22, 2020, at which a quorum was present and acted throughout, adopted the following resolutions, which resolutions
remain in full force and effect on the date hereof, creating a series of shares of preferred stock having a par value of $0.01
per share, designated as Series A Preferred Stock (the “Series A Preferred Stock”) out of the class of 5,000,000
shares of preferred stock, par value of $0.01 per share (the “Preferred Stock”):

RESOLVED, that pursuant to the authority
vested in the Board of Directors in accordance with the provisions of the Certificate, the Board of Directors does hereby create,
authorize and provide for the issuance of the Series A Preferred Stock having the voting powers, designation, relative, participating,
optional and other special rights, preferences, and qualifications, limitations and restrictions thereof that are set forth as
follows:

Section 1. Designation and Amount.
The shares of such series shall be designated as “Series A Preferred Stock” and the number of shares constituting such
series shall be 350,000.

Section 2. Dividends and Distributions.
(A)  Subject to the prior and superior rights of the holders of any shares of any other series of Preferred Stock or
any other shares of preferred stock of the Corporation ranking prior and superior to the shares of Series A Preferred Stock with
respect to dividends, each holder of one one-thousandth (1/1000) of a share (a “Unit”) 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 that
purpose, (i) quarterly dividends payable in cash on the last day of March, June, September and December in each year (each such
date being a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after
the first issuance of such Unit of Series A Preferred Stock, in an amount per Unit

 

    	 		 

     

    

 

(rounded to the nearest cent) equal to the greater
of (a) $0.01 or (b) subject to the provision for adjustment hereinafter set forth, the aggregate per share amount of all cash dividends
declared on shares of the Company Common Stock (as defined below) since the immediately preceding Quarterly Dividend Payment Date,
or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of a Unit of Series A Preferred Stock,
and (ii) subject to the provision for adjustment hereinafter set forth, quarterly distributions (payable in kind) on each Quarterly
Dividend Payment Date in an amount per Unit equal to the aggregate per share amount of all non-cash dividends or other distributions
(other than a dividend payable in shares of Company Common Stock or a subdivision of the outstanding shares of Company Common Stock,
by reclassification or otherwise) declared on shares of Company 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 a Unit of Series A Preferred
Stock. In the event that the Corporation shall at any time after March 22, 2020 (the “Rights Declaration Date”)
(i) declare any dividend on outstanding shares of Company Common Stock payable in shares of Company Common Stock, (ii) subdivide
outstanding shares of Company Common Stock or (iii) combine outstanding shares of Company Common Stock into a smaller number of
shares, then in each such case the amount to which the holder of a Unit of Series A Preferred Stock was entitled immediately prior
to such event pursuant to the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which
shall be the number of shares of Company Common Stock that are outstanding immediately after such event and the denominator of
which shall be the number of shares of Company Common Stock that were outstanding immediately prior to such event.

(B)             
The Corporation shall declare a dividend or distribution on Units of Series A Preferred Stock as provided in paragraph (A)
above immediately after it declares a dividend or distribution on the shares of Company Common Stock (other than a dividend payable
in shares of Company Common Stock); provided, however, that, in the event no dividend or distribution shall have
been declared on the Company Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, a dividend of $0.01 per Unit on the Series A Preferred Stock shall nevertheless be payable on
such subsequent Quarterly Dividend Payment Date.

(C)             
Dividends shall begin to accrue and shall be cumulative on each outstanding Unit of Series A Preferred Stock from the Quarterly
Dividend Payment Date next preceding the date of issuance of such Unit of Series A Preferred Stock, unless the date of issuance
of such Unit is prior to the record date for the first Quarterly Dividend Payment Date, in which case, dividends on such Unit shall
begin to accrue from the date of issuance of such Unit, or unless the date of issuance is a Quarterly Dividend Payment Date or
is a date after the record date for the determination of holders of Units 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 Units
of Series A Preferred Stock in an amount less than the aggregate amount of all such dividends at the time accrued and payable on
such Units shall be allocated pro rata on a Unit-by-Unit basis among all Units of Series A Preferred Stock at the time
outstanding. The Board of Directors may fix a record date for the determination of holders of Units of Series A Preferred Stock
entitled to receive payment of a dividend or distribution declared thereon, which record date shall be no more than 30 days prior
to the date fixed for the payment thereof.

    	 		 

     

    

 

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

(A)            
Subject to the provision for adjustment hereinafter set forth, each Unit of Series A Preferred Stock shall entitle the holder
thereof to one vote on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall
at any time after the Rights Declaration Date (i) declare any dividend on outstanding shares of Company Common Stock payable in
shares of Company Common Stock, (ii) subdivide outstanding shares of Company Common Stock or (iii) combine the outstanding shares
of Company Common Stock into a smaller number of shares, then in each such case the number of votes per Unit to which holders of
Units 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 shall be the number of shares of Company Common Stock outstanding immediately after such event
and the denominator of which shall be the number of shares of Company Common Stock that were outstanding immediately prior to such
event.

(B)             
Except as otherwise provided herein or by law, the holders of Units of Series A Preferred Stock and the holders of shares
of Company Common Stock shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation.

(C)             
(i)  If, at any time, dividends on any Units of Series A Preferred Stock shall be in arrears in an amount equal
to six quarterly dividends thereon, then during the period (a “default period”) from the occurrence of such
event until such time as all accrued and unpaid dividends for all previous quarterly dividend periods and for the current quarterly
dividend period on all Units of Series A Preferred Stock then outstanding shall have been declared and paid or set apart for payment,
all holders of Units of Series A Preferred Stock, voting separately as a class, shall have the right to elect two Directors.

(ii)             
During any default period, such voting rights of the holders of Units of Series A Preferred Stock may be exercised initially
at a special meeting called pursuant to subparagraph (iii) of this Section 3(C) or at any annual meeting of stockholders, and thereafter
at annual meetings of stockholders, provided that neither such voting rights nor any right of the holders of Units of Series A
Preferred Stock to increase, in certain cases, the authorized number of Directors may be exercised at any meeting unless one-third
of the outstanding Units of Preferred Stock shall be present at such meeting in person or by proxy. The absence of a quorum of
the holders of Company Common Stock shall not affect the exercise by the holders of Units of Series A Preferred Stock of such rights.
At any meeting at which the holders of Units of Series A Preferred Stock shall exercise such voting rights initially during an
existing default period, they shall have the right, voting separately as a class, to elect Directors to fill up to two vacancies
in the Board of Directors, if any such vacancies may then exist, or, if such right is exercised at an annual meeting, to elect
two Directors. If the number which may be so elected at any special meeting does not amount to the required number, the holders
of the Series A

    	 		 

     

    

 

Preferred Stock shall have the right to make such increase in the number of Directors as shall be necessary to
permit the election by them of the required number. After the holders of Units of Series A Preferred Stock shall have exercised
their right to elect Directors during any default period, the number of Directors shall not be increased or decreased except as
approved by a vote of the holders of Units of Series A Preferred Stock as herein provided or pursuant to the rights of any equity
securities ranking senior to the Series A Preferred Stock.

(iii)           
Unless the holders of Series A Preferred Stock shall, during an existing default period, have previously exercised their
right to elect Directors, the Board of Directors may order, or any stockholder or stockholders owning in the aggregate not less
than 25% of the total number of the Units of Series A Preferred Stock outstanding may request, the calling of a special meeting
of the holders of Units of Series A Preferred Stock, which meeting shall thereupon be called by the Secretary of the Corporation.
Notice of such meeting and of any annual meeting at which holders of Units of Series A Preferred Stock are entitled to vote pursuant
to this paragraph (C)(iii) shall be given to each holder of record of Units of Series A Preferred Stock by mailing a copy of such
notice to such stockholder at address as the same appears on the books of the Corporation. Such meeting shall be called for a time
not earlier than 20 days and not later than 60 days after such order or request, or, in default of the calling of such meeting
within 60 days after such order or request, such meeting may be called on similar notice by any stockholder or stockholders owning
in the aggregate not less than 25% of the total number of outstanding Units of Series A Preferred Stock. Notwithstanding the provisions
of this paragraph (C)(iii), no such special meeting shall be called during the 60 days immediately preceding the date fixed for
the next annual meeting of the stockholders.

(iv)            
During any default period, the holders of shares of Company Common Stock and Units of Series A Preferred Stock, and other
classes or series of stock of the Corporation, if applicable, shall continue to be entitled to elect all the Directors until holders
of the Units of Series A Preferred Stock shall have exercised their right to elect two Directors voting as a separate class, after
the exercise of which right (x) the Directors so elected by the holders of Units of Series A Preferred Stock shall continue in
office until their successors shall have been elected by such holders or until the expiration of the default period, and (y) any
vacancy in the Board of Directors may (except as provided in paragraph (C)(ii) of this Section 3) be filled by vote of a majority
of the remaining Directors theretofore elected by the holders of the class of capital stock that elected the Director whose office
shall have become vacant. References in this paragraph (C) to Directors elected by the holders of a particular class of capital
stock shall include Directors elected by such Directors to fill vacancies as provided in clause (y) of the foregoing sentence.

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

 

    	 		 

     

    

 

(vi)            
The provisions of this paragraph (C) shall govern the election of Directors by holders of Units of Preferred Stock during
any default period notwithstanding any provisions of the Certificate to the contrary, including, without limitation, the provisions
of Article VII of the Certificate.

(D)            
Except as set forth herein, holders of Units of Series A Preferred Stock shall have no special voting rights and their consents
shall not be required (except to the extent they are entitled to vote with holders of shares of Company 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 Units of 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 outstanding Units of Series A Preferred Stock shall have been paid in full, the Corporation shall not:

(i)                
declare or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration
any shares of junior stock;

(ii)             
declare or pay dividends on or make any other distributions on any shares of parity stock, except dividends paid ratably
on Units of Series A Preferred Stock and shares of all such parity stock on which dividends are payable or in arrears in proportion
to the total amounts to which the holders of such Units and all such shares are then entitled;

(iii)           
redeem or purchase or otherwise acquire for consideration shares of any parity stock; provided, however, that
the Corporation may at any time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of
any junior stock; or

(iv)            
purchase or otherwise acquire for consideration any Units of Series A Preferred Stock, except in accordance with a purchase
offer made in writing or by publication (as determined by the Board of Directors) to all holders of such Units.

(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
Units of Series A Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired
and cancelled promptly after the acquisition thereof. All such Units shall, upon their cancellation, become authorized but unissued
Units of Preferred Stock and may be reissued as part of a new series of Preferred Stock to be created by resolution or resolutions
of the Board of Directors, subject to the conditions and restrictions on issuance set forth herein.

Section 6. Liquidation, Dissolution
or Winding Up. (A)  Upon any voluntary or involuntary liquidation, dissolution or winding up of the Corporation,
no distribution shall be

    	 		 

     

    

 

made (i) to the holders of shares of junior stock unless the holders of Units of Series A Preferred Stock
shall have received, subject to adjustment as hereinafter provided in paragraph (B), the greater of either (a) $0.01 per Unit plus
an amount equal to accrued and unpaid dividends and distributions thereon, whether or not earned or declared, to the date of such
payment, or (b) the amount equal to the aggregate per share amount to be distributed to holders of shares of Company Common Stock,
or (ii) to the holders of shares of parity stock, unless simultaneously therewith distributions are made ratably on Units of Series
A Preferred Stock and all other shares of such parity stock in proportion to the total amounts to which the holders of Units of
Series A Preferred Stock are entitled under clause (i)(a) of this sentence and to which the holders of shares of such parity stock
are entitled, in each case upon such liquidation, dissolution or winding up.

(B)             
In the event the Corporation shall, at any time after the Rights Declaration Date, (i) declare any dividend on outstanding
shares of Company Common Stock payable in shares of Company Common Stock, (ii) subdivide outstanding shares of Company Common Stock,
or (iii) combine outstanding shares of Company Common Stock into a smaller number of shares, then in each such case the aggregate
amount to which holders of Units of Series A Preferred Stock were entitled immediately prior to such event pursuant to clause (i)(b)
of paragraph (A) of this Section 6 shall be adjusted by multiplying such amount by a fraction the numerator of which shall be the
number of shares of Company Common Stock that are outstanding immediately after such event and the denominator of which shall be
the number of shares of Company Common Stock that were outstanding immediately prior to such event.

Section 7. Consolidation, Merger, etc.
In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Company
Common Stock are exchanged for or converted into other stock or securities, cash and/or any other property, then in any such case
Units of Series A Preferred Stock shall at the same time be similarly exchanged for or converted into an amount per Unit (subject
to the provision for adjustment hereinafter set forth) equal to 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 Company Common Stock is converted or exchanged.
In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on outstanding shares
of Company Common Stock payable in shares of Company Common Stock, (ii) subdivide outstanding shares of Company Common Stock, or
(iii) combine outstanding Company Common Stock into a smaller number of shares, then in each such case the amount set forth in
the immediately preceding sentence with respect to the exchange or conversion of Units of Series A Preferred Stock shall be adjusted
by multiplying such amount by a fraction the numerator of which shall be the number of shares of Company Common Stock that are
outstanding immediately after such event and the denominator of which shall be the number of shares of Company Common Stock that
were outstanding immediately prior to such event.

Section 8. Redemption. The Units
of Series A Preferred Stock shall not be redeemable.

Section 9. Ranking. The Units of
Series A Preferred Stock shall rank junior to all other series of the Preferred Stock and to any other class of preferred stock
that hereafter may be issued by the Corporation as to the payment of dividends and the distribution of assets, unless the terms
of any such series or class shall provide otherwise.

    	 		 

     

    

 

Section 10. Amendment. The Certificate,
including, without limitation, this resolution, shall not hereafter be amended, either directly or indirectly, or through merger
or consolidation with any other corporation or corporations in any manner that would alter or change the powers, preferences or
special rights of the Series A Preferred Stock so as to affect them adversely without the affirmative vote of the holders of a
majority or more of the outstanding Units of Series A Preferred Stock, voting separately as a class.

Section 11. Fractional Shares. The
Series A Preferred Stock may be issued in Units or other fractions of a share, which Units or fractions shall entitle the holder,
in proportion to such holder's fractional shares, to exercise voting rights, receive dividends, participate in distributions and
to have the benefit of all other rights of holders of Series A Preferred Stock.

Section 12. Certain Definitions.
As used herein with respect to the Series A Preferred Stock, the following terms shall have the following meanings:

(A)            
The term “Company Common Stock” shall mean the class of stock designated as the common stock, par value
$0.01 per share, of the Corporation at the date hereof or any other class of stock resulting from successive changes or reclassification
of such common stock.

(B)             
The term “junior stock” (i) as used in Section 4, shall mean the Common Stock and any other class or
series of capital stock of the Corporation hereafter authorized or issued over which the Series A Preferred Stock has preference
or priority as to the payment of dividends and (ii) as used in Section 6, shall mean the Company Common Stock and any other class
or series of capital stock of the Corporation over which the Series A Preferred Stock has preference or priority in the distribution
of assets upon any liquidation, dissolution or winding up of the Corporation.

(C)             
The term “parity stock” (i) as used in Section 4, shall mean any class or series of stock of the Corporation
hereafter authorized or issued ranking pari passu with the Series A Preferred Stock as to the payment of dividends and (ii)
as used in Section 6, shall mean any class or series of capital stock ranking pari passu with the Series A Preferred Stock
in the distribution of assets on any liquidation, dissolution or winding up of the Corporation.

    	 		 

     

    

 

IN WITNESS WHEREOF, The Chefs’ Warehouse,
Inc. has caused this Certificate to be signed this 23rd day of
March 2020.

 

	 	THE CHEFS’ WAREHOUSE, INC.	 
	 	 	 	 
	 	 	 	 
	 	By	 	 
	 	 	Name:	 
	 	 	Title:WELLS FARGO & COMPANY 8-K

 

Exhibit 4.1

 

[Face of Note]

 

            Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

	
CUSIP NO. 95001HHB0

	
FACE AMOUNT:  $__________

	
REGISTERED NO. ___

	
 

 

WELLS FARGO FINANCE LLC

 

MEDIUM-TERM NOTE, SERIES A

Fully and Unconditionally Guaranteed by Wells Fargo & Company

 

Principal at Risk Securities Linked to the Lowest Performing of the S&P 500® Index 

and the Invesco QQQ TrustSM, Series 1 due March 23, 2023

 

            WELLS FARGO FINANCE LLC, a limited liability company, duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company,” which term includes any successor corporation under and as defined in the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the Maturity Payment Amount (as defined below), in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, on the Stated Maturity Date.  The “Initial Stated Maturity Date“ shall be March 23, 2023.  If the Calculation Day (as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated Maturity Date.”  If the Calculation Day is postponed, the “Stated Maturity Date” shall be the later of (i) the Initial Stated Maturity Date and (ii) three Business Days (as defined below) after the last Calculation Day as postponed. This Security shall not bear any interest.

 

            Any payments on this Security at Maturity will be made against presentation of this Security at the office or agency of the Company maintained for that purpose in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose.

 

“Face Amount“ shall mean, when used with respect to this Security, the amount set forth on the face of this Security as its “Face Amount.”

 

 

 

 

Determination of Maturity Payment Amount

 

            The “Maturity Payment Amount” of this Security will equal:

 

	
 

	
●

	
if the Ending Value of the Lowest Performing Market Measure is greater than its Starting Value: the Face Amount plus:

 

 

	
 

	
●

	
if the Ending Value of the Lowest Performing Market Measure is less than or equal to its Starting Value, but greater than or equal to its Threshold Value: the Face Amount; or

 

	
 

	
●

	
if the Ending Value of the Lowest Performing Market Measure is less than its Threshold Value: the Face Amount plus:

 

 

All calculations with respect to the Maturity Payment Amount will be rounded to the nearest one hundred-thousandth, with five one-millionths rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Maturity Payment Amount will be rounded to the nearest cent, with one-half cent rounded upward.

 

“Market Measure” shall mean each of the S&P 500 Index and the Invesco QQQ Trust, Series 1.

 

“Index” shall mean the S&P 500 Index.

 

“Fund” shall mean the Invesco QQQ Trust, Series 1.

 

“Underlying Index” shall mean the Nasdaq-100 Index.

 

The “Pricing Date” shall mean March 18, 2020.

 

The “Lowest Performing Market Measure” will be the Market Measure with the lowest Market Measure Return as measured from its Starting Value to its Ending Value.

 

2

 

The “Market Measure Return” with respect to a Market Measure is the percentage change from its Starting Value to its Ending Value, measured as follows:

 

Ending Value – Starting Value
Starting Value

 

The “Buffer Amount” is 15%.

 

The “Starting Value” with respect to the S&P 500 Index is 2529.19, its Closing Value on March 17, 2020 and with respect to the Invesco QQQ Trust, Series 1 is $182.14, its Closing Value on March 17, 2020.

 

The “Ending Value” of a Market Measure will be its Closing Value on the Calculation Day.

 

The “Threshold Value” with respect to the S&P 500 Index is 2149.8155, which is equal to 85% of its Starting Value and with respect to the Invesco QQQ Trust, Series 1 is $154.819, which is equal to 85% of its Starting Value.

 

The “Participation Rate” is 135%.

 

The “Closing Value” means, with respect to the Index on any Trading Day, its Closing Level on that Trading Day, and with respect to the Fund on any Trading Day, its Fund Closing Price on that Trading Day.

 

“Index Sponsor” shall mean the sponsor or publisher of the Index. 

 

The “Closing Level“ of the Index on any Trading Day means the official closing level of the Index reported by the Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the licensed third-party market data vendor contracted by the Calculation Agent at such time; in particular, taking into account the decimal precision and/or rounding convention employed by such licensed third-party market data vendor on such date, subject to the provisions set forth below under “—Market Disruption Events,” “—Adjustments To The Index” and “—Discontinuance Of The Index.”

 

The “Fund Closing Price” with respect to the Fund on any Trading Day means the product of (i) the Closing Price of one share of the Fund (or one unit of any other security for which a Fund Closing Price must be determined) on such Trading Day and (ii) the Adjustment Factor applicable to the Fund on such Trading Day.

 

The “Closing Price” for one share of the Fund (or one unit of any other security for which a Closing Price must be determined) on any Trading Day means the official closing price on such day published by the principal United States securities exchange registered under the Securities Exchange Act of 1934, as amended, on which the Fund (or any such other security) is listed or admitted to trading.

 

The “Adjustment Factor” means, with respect to a share of the Fund (or one unit of any other security for which a Fund Closing Price must be determined), 1.0, subject to adjustment in the event

 

3

 

of certain events affecting the shares of the Fund.  See “Anti-dilution Adjustments Relating To The Fund; Alternate Calculation” below.

 

             “Business Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close in New York, New York.

 

            The “Calculation Day“ shall be March 20, 2023.  If such day is not a Trading Day with respect to either Market Measure, the Calculation Day for each Market Measure will be postponed to the next succeeding day that is a Trading Day with respect to each Market Measure.  The Calculation Day for a Market Measure is also subject to postponement due to the occurrence of a Market Disruption Event (as defined below) with respect to such Market Measure.  If a Market Disruption Event occurs or is continuing with respect to a Market Measure on the Calculation Day, then the Calculation Day for such Market Measure will be postponed to the first succeeding Trading Day for such Market Measure on which a Market Disruption Event for such Market Measure has not occurred and is not continuing; however, if such first succeeding Trading Day has not occurred as of the eighth Trading Day for such Market Measure after the originally scheduled Calculation Day, that eighth Trading Day shall be deemed to be the Calculation Day for such Market Measure.  If the Calculation Day has been postponed eight Trading Days for a Market Measure after the originally scheduled Calculation Day and a Market Disruption Event occurs or is continuing with respect to such Market Measure on such eighth Trading Day, the Calculation Agent will determine the Closing Value of such Market Measure on such eighth Trading Day (i) in the case of the Index, in accordance with the formula for and method of calculating the Closing Level of the Index last in effect prior to commencement of the Market Disruption Event, using the closing price (or, with respect to any relevant security, if a Market Disruption Event has occurred with respect to such security, its good faith estimate of the value of such security at the Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange) on such date of each security included in the Index and (ii) in the case of the Fund, based on its good faith estimate of the value of the shares (or other applicable securities) of the Fund as of the close of trading on such date. As used in clause (i) of the immediately preceding sentence, “closing price” means, with respect to any security on any date, the Relevant Stock Exchange traded or quoted price of such security as of the Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange.  Notwithstanding the postponement of the Calculation Day for one Market Measure due to a Market Disruption Event with respect to such Market Measure on the Calculation Day, the originally scheduled Calculation Day will remain the Calculation Day for the other Market Measure if such other Market Measure is not affected by a Market Disruption Event on such day.

 

            “Calculation Agent Agreement” shall mean the Calculation Agent Agreement dated as of May 18, 2018 between the Company and the Calculation Agent, as amended from time to time.

 

            “Calculation Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among other things, the determination of the Maturity Payment Amount, which term shall, unless the context otherwise requires, include its successors under such Calculation Agent Agreement.  The initial Calculation Agent shall be Wells Fargo Securities, LLC.  Pursuant to the Calculation Agent Agreement, the Company may appoint a 

 

4

 

different Calculation Agent from time to time after the initial issuance of this Security without the consent of the Holder of this Security and without notifying the Holder of this Security.

 

Certain Definitions 

 

A “Trading Day” with respect to the Index means a day, as determined by the Calculation Agent, on which (i) the Relevant Stock Exchanges with respect to each security underlying the Index are scheduled to be open for trading for their respective regular trading sessions and (ii) each Related Futures or Options Exchange with respect to the Index is scheduled to be open for trading for its regular trading session. 

 

The “Relevant Stock Exchange” for any security underlying the Index means the primary exchange or quotation system on which such security is traded, as determined by the Calculation Agent. 

 

The “Related Futures or Options Exchange” for the Index means an exchange or quotation system where trading has a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to the Index.

 

A “Trading Day” with respect to the Fund means a day, as determined by the Calculation Agent, on which the Relevant Stock Exchange and each Related Futures or Options Exchange with respect to the Fund or any successor thereto, if applicable, are scheduled to be open for trading for their respective regular trading sessions. 

 

The “Relevant Stock Exchange” for the Fund means the primary exchange or quotation system on which shares (or other applicable securities) of the Fund are traded, as determined by the Calculation Agent. 

 

The “Related Futures or Options Exchange” for the Fund means each exchange or quotation system where trading has a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to the Fund.

 

Adjustments To The Index

 

If at any time the method of calculating the Index or a Successor Equity Index, or the closing level thereof, is changed in a material respect, or if the Index or a Successor Equity Index is in any other way modified so that such index does not, in the opinion of the Calculation Agent, fairly represent the level of such index had those changes or modifications not been made, then the Calculation Agent will, at the close of business in New York, New York, on each date that the closing level of such index is to be calculated, make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive at a level of an index comparable to the Index or Successor Equity Index as if those changes or modifications had not been made, and the Calculation Agent will calculate the closing level of the Index or Successor Equity Index with reference to such index, as so adjusted. Accordingly, if the method of calculating the Index or Successor Equity Index is modified so that the level of such index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to a split or reverse split in such equity index), then the Calculation Agent will adjust the Index or Successor Equity Index

 

5

 

in order to arrive at a level of such index as if it had not been modified (e.g., as if the split or reverse split had not occurred).

 

Discontinuance Of The Index

 

If the Index Sponsor discontinues publication of the Index, and such Index Sponsor or another entity publishes a successor or substitute equity index that the Calculation Agent determines, in its sole discretion, to be comparable to the Index (a “Successor Equity Index”), then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company, the Calculation Agent will substitute the Successor Equity Index as calculated by the relevant Index Sponsor or any other entity and calculate the Ending Value of the Index as described above. Upon any selection by the Calculation Agent of a Successor Equity Index, the Company will cause notice to be given to the Holder of this Security.

 

In the event that the Index Sponsor discontinues publication of the Index prior to, and the discontinuance is continuing on, the Calculation Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will calculate a substitute Closing Level for the Index in accordance with the formula for and method of calculating the Index last in effect prior to the discontinuance, but using only those securities that comprised the Index immediately prior to that discontinuance.  If a Successor Equity Index is selected or the Calculation Agent calculates a level as a substitute for the Index, the Successor Equity Index or level will be used as a substitute for the Index for all purposes, including the purpose of determining whether a Market Disruption Event exists.

 

If on the Calculation Day the Index Sponsor fails to calculate and announce the level of the Index, the Calculation Agent will calculate a substitute Closing Level of the Index in accordance with the formula for and method of calculating the Index last in effect prior to the failure, but using only those securities that comprised the Index immediately prior to that failure; provided that, if a Market Disruption Event occurs or is continuing on such day with respect to the Index, then the provisions set forth above under the definition of “Calculation Day” shall apply in lieu of the foregoing.

 

Anti-dilution Adjustments Relating To The Fund; Alternate Calculation

 

Anti-dilution Adjustments 

 

The Calculation Agent will adjust the Adjustment Factor with respect to the Fund as specified below if any of the events specified below occurs with respect to the Fund and the effective date or ex-dividend date, as applicable, for such event is after the Pricing Date and on or prior to the Calculation Day for the Fund.

 

The adjustments specified below do not cover all events that could affect the Fund. The Calculation Agent may, in its sole discretion, make additional adjustments to any terms of this Security upon the occurrence of other events that affect or could potentially affect the market price of, or shareholder rights in, the Fund, with a view to offsetting, to the extent practical, any such change, and preserving the relative investment risks of this Security. In addition, the Calculation Agent may, in its sole discretion, make adjustments or a series of adjustments that differ from those described herein if the Calculation Agent determines that such adjustments do not properly

 

6

 

reflect the economic consequences of the events specified herein or would not preserve the relative investment risks of this Security. All determinations made by the Calculation Agent in making any adjustments to the terms of this Security, including adjustments that are in addition to, or that differ from, those described herein, will be made in good faith and a commercially reasonable manner, with the aim of ensuring an equitable result. In determining whether to make any adjustment to the terms of this Security, the Calculation Agent may consider any adjustment made by the Options Clearing Corporation or any other equity derivatives clearing organization on options contracts on the Fund.

 

For any event described below, the Calculation Agent will not be required to adjust the Adjustment Factor unless the adjustment would result in a change to the Adjustment Factor then in effect of at least 0.10%. The Adjustment Factor resulting from any adjustment will be rounded up or down, as appropriate, to the nearest one-hundred thousandth.

 

	
 

	
(A)

	
Stock Splits and Reverse Stock Splits

 

If a stock split or reverse stock split has occurred, then once such split has become effective, the Adjustment Factor will be adjusted to equal the product of the prior Adjustment Factor and the number of securities which a holder of one share (or other applicable security) of the Fund before the effective date of such stock split or reverse stock split would have owned or been entitled to receive immediately following the applicable effective date.

 

	
 

	
(B)

	
Stock Dividends

 

If a dividend or distribution of shares (or other applicable securities) of the Fund has been made by the Fund ratably to all holders of record of such shares (or other applicable security), then the Adjustment Factor will be adjusted on the ex-dividend date to equal the prior Adjustment Factor plus the product of the prior Adjustment Factor and the number of shares (or other applicable security) of the Fund which a holder of one share (or other applicable security) of the Fund before the ex-dividend date would have owned or been entitled to receive immediately following that date; provided, however, that no adjustment will be made for a distribution for which the number of securities of the Fund paid or distributed is based on a fixed cash equivalent value.

 

	
 

	
(C)

	
Extraordinary Dividends

 

If an Extraordinary Dividend (as defined below) has occurred, then the Adjustment Factor will be adjusted on the ex-dividend date to equal the product of the prior Adjustment Factor and a fraction, the numerator of which is the Closing Price per share (or other applicable security) of the Fund on the Trading Day preceding the ex-dividend date, and the denominator of which is the amount by which the Closing Price per share (or other applicable security) of the Fund on the Trading Day preceding the ex-dividend date exceeds the Extraordinary Dividend Amount (as defined below).

 

7

 

For purposes of determining whether an Extraordinary Dividend has occurred:

 

	
 

	
(1)

	
“Extraordinary Dividend” means any cash dividend or distribution (or portion thereof) that the Calculation Agent determines, in its sole discretion, is extraordinary or special; and

 

	
 

	
(2)

	
“Extraordinary Dividend Amount” with respect to an Extraordinary Dividend for the securities of the Fund will equal the amount per share (or other applicable security) of the Fund of the applicable cash dividend or distribution that is attributable to the Extraordinary Dividend, as determined by the Calculation Agent in its sole discretion.

 

A distribution on the securities of the Fund described below under the section entitled “—Reorganization Events” below that also constitutes an Extraordinary Dividend will only cause an adjustment pursuant to that “—Reorganization Events” section.

 

	
 

	
(D)

	
Other Distributions

 

If the Fund declares or makes a distribution to all holders of the shares (or other applicable security) of the Fund of any non-cash assets, excluding dividends or distributions described under the section entitled “—Stock Dividends” above, then the Calculation Agent may, in its sole discretion, make such adjustment (if any) to the Adjustment Factor as it deems appropriate in the circumstances.  If the Calculation Agent determines to make an adjustment pursuant to this paragraph, it will do so with a view to offsetting, to the extent practical, any change in the economic position of a holder of this Security that results solely from the applicable event.

 

	
 

	
(E)

	
Reorganization Events

 

If the Fund, or any Successor Fund, is subject to a merger, combination, consolidation or statutory exchange of securities with another exchange traded fund, and the Fund is not the surviving entity (a “Reorganization Event”), then, on or after the date of such event, the Calculation Agent shall, in its sole discretion, make an adjustment to the Adjustment Factor or the method of determining the Maturity Payment Amount or any other terms of this Security as the Calculation Agent determines appropriate to account for the economic effect on this Security of such event, and determine the effective date of that adjustment. If the Calculation Agent determines that no adjustment that it could make will produce a commercially reasonable result, then the Calculation Agent may deem such event a Liquidation Event (as defined below).

 

Liquidation Events

 

If the Fund is de-listed, liquidated or otherwise terminated (a “Liquidation Event”), and a successor or substitute exchange traded fund exists that the Calculation Agent determines, in its sole discretion, to be comparable to the Fund, then, upon the Calculation Agent’s notification of

 

8

 

that determination to the Trustee and the Company, any subsequent Fund Closing Price for the Fund will be determined by reference to the Fund Closing Price of such successor or substitute exchange traded fund (such exchange traded fund being referred to herein as a “Successor Fund”), with such adjustments as the Calculation Agent determines are appropriate to account for the economic effect of such substitution on the holder of this Security.

 

If the Fund undergoes a Liquidation Event prior to, and such Liquidation Event is continuing on, the date that any Fund Closing Price of the Fund is to be determined and the Calculation Agent determines that no Successor Fund is available at such time, then the Calculation Agent will, in its discretion, calculate the Fund Closing Price for the Fund on such date by a computation methodology that the Calculation Agent determines will as closely as reasonably possible replicate the Fund, provided that if the Calculation Agent determines in its discretion that it is not practicable to replicate the Fund (including but not limited to the instance in which the sponsor of the Underlying Index discontinues publication of the Underlying Index), then the Calculation Agent will calculate the Fund Closing Price for the Fund in accordance with the formula last used to calculate such Fund Closing Price before such Liquidation Event, but using only those securities that were held by the Fund immediately prior to such Liquidation Event without any rebalancing or substitution of such securities following such Liquidation Event.

 

If a Successor Fund is selected or the Calculation Agent calculates the Fund Closing Price as a substitute for the Fund, such Successor Fund or Fund Closing Price will be used as a substitute for the Fund for all purposes, including for purposes of determining whether a Market Disruption Event exists with respect to the Fund.

 

If any event is both a Reorganization Event and a Liquidation Event, such event will be treated as a Reorganization Event for purposes of this Security unless the Calculation Agent makes the determination referenced in the last sentence of the section entitled “—Anti-dilution Adjustments—Reorganization Events” above.

 

Alternate Calculation

 

If at any time the method of calculating the Fund or a Successor Fund, or the Underlying Index, is changed in a material respect, or if the Fund or a Successor Fund is in any other way modified so that the Fund does not, in the opinion of the Calculation Agent, fairly represent the price of the securities of the Fund or such Successor Fund had such changes or modifications not been made, then the Calculation Agent may, at the close of business in New York City on the date that any Fund Closing Price is to be determined, make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive at a Closing Price of an exchange traded fund comparable to the Fund or such Successor Fund, as the case may be, as if such changes or modifications had not been made, and calculate the Fund Closing Price and the Maturity Payment Amount with reference to such adjusted Closing Price of the Fund or such Successor Fund, as applicable.

 

9

 

Market Disruption Events 

 

A “Market Disruption Event” with respect to the Index means any of the following events as determined by the Calculation Agent in its sole discretion:

 

	
 

	
(A)

	
The occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock Exchanges or otherwise relating to securities which then comprise 20% or more of the level of the Index or any Successor Equity Index at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements in price exceeding limits permitted by those Relevant Stock Exchanges or otherwise.

 

	
 

	
(B)

	
The occurrence or existence of a material suspension of or limitation imposed on trading by any Related Futures or Options Exchange or otherwise in futures or options contracts relating to the Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise.

 

	
 

	
(C)

	
The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market participants in general to effect transactions in, or obtain market values for, securities that then comprise 20% or more of the level of the Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during the one-hour period that ends at the Close of Trading on that day.

 

	
 

	
(D)

	
The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market participants in general to effect transactions in, or obtain market values for, futures or options contracts relating to the Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that day.

 

	
 

	
(E)

	
The closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities that then comprise 20% or more of the level of the Index or any Successor Equity Index are traded or any Related Futures or Options Exchange with respect to the Index or any Successor Equity Index prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the actual closing time for the regular trading session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, and (2) the submission deadline for orders to be entered into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system for execution at such actual closing time on that day.

 

10

 

	
 

	
(F)

	
The Relevant Stock Exchange for any security underlying the Index or Successor Equity Index or any Related Futures or Options Exchange with respect to the Index or Successor Equity Index fails to open for trading during its regular trading session.

 

For purposes of determining whether a Market Disruption Event has occurred with respect to the Index:

 

	
 

	
(1)

	
the relevant percentage contribution of a security to the level of the Index or any Successor Equity Index will be based on a comparison of (x) the portion of the level of such index attributable to that security and (y) the overall level of the Index or Successor Equity Index, in each case immediately before the occurrence of the Market Disruption Event;

 

	
 

	
(2)

	
the “Close of Trading“ on any Trading Day for the Index or any Successor Equity Index means the Scheduled Closing Time of the Relevant Stock Exchanges with respect to the securities underlying the Index or Successor Equity Index on such Trading Day; provided that, if the actual closing time of the regular trading session of any such Relevant Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A) and (C) of the definition of “Market Disruption Event” above, with respect to any security underlying the Index or Successor Equity Index for which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close of Trading” means such actual closing time and (y) for purposes of clauses (B) and (D) of the definition of “Market Disruption Event” above, with respect to any futures or options contract relating to the Index or Successor Equity Index, the “Close of Trading” means the latest actual closing time of the regular trading session of any of the Relevant Stock Exchanges, but in no event later than the Scheduled Closing Time of the Relevant Stock Exchanges;

 

	
 

	
(3)

	
the “Scheduled Closing Time” of any Relevant Stock Exchange or Related Futures or Options Exchange on any Trading Day for the Index or any Successor Equity Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading Day, without regard to after hours or any other trading outside the regular trading session hours; and

 

	
 

	
(4)

	
an “Exchange Business Day” means any Trading Day for the Index or any Successor Equity Index on which each Relevant Stock Exchange for the securities underlying the Index or any Successor Equity Index and each Related Futures or Options Exchange with respect to the Index or any Successor Equity Index are open for trading during their respective regular trading sessions, notwithstanding any such Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled Closing Time.

 

A “Market Disruption Event” with respect to the Fund means any of the following events as determined by the Calculation Agent in its sole discretion:

 

	
 

	
(A)

	
The occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock Exchange or otherwise relating to the shares (or other 

 

11

 

	

 

	
 

	
applicable securities) of the Fund or any Successor Fund on the Relevant Stock Exchange at any time during the one-hour period that ends at the Close of Trading on such day, whether by reason of movements in price exceeding limits permitted by such Relevant Stock Exchange or otherwise.

 

	
 

	
(B)

	
The occurrence or existence of a material suspension of or limitation imposed on trading by any Related Futures or Options Exchange or otherwise in futures or options contracts relating to the shares (or other applicable securities) of the Fund or any Successor Fund on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise.

 

	
 

	
(C)

	
The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market participants in general to effect transactions in, or obtain market values for, shares (or other applicable securities) of the Fund or any Successor Fund on the Relevant Stock Exchange at any time during the one-hour period that ends at the Close of Trading on that day.

 

	
 

	
(D)

	
The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market participants in general to effect transactions in, or obtain market values for, futures or options contracts relating to shares (or other applicable securities) of the Fund or any Successor Fund on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that day.

 

	
 

	
(E)

	
The closure of the Relevant Stock Exchange or any Related Futures or Options Exchange with respect to the Fund or any Successor Fund prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the actual closing time for the regular trading session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, and (2) the submission deadline for orders to be entered into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system for execution at the Close of Trading on that day.

 

	
 

	
(F)

	
The Relevant Stock Exchange or any Related Futures or Options Exchange with respect to the Fund or any Successor Fund fails to open for trading during its regular trading session.

 

For purposes of determining whether a Market Disruption Event has occurred with respect to the Fund:

 

	
 

	
(1)

	
“Close of Trading” means the Scheduled Closing Time of the Relevant Stock Exchange with respect to the Fund or any Successor Fund; and

 

	
 

	
(2)

	
the “Scheduled Closing Time” of the Relevant Stock Exchange or any Related Futures or Options Exchange on any Trading Day for the Fund or any Successor Fund means 

 

12

 

	

 

	
 

	
the scheduled weekday closing time of such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading Day, without regard to after hours or any other trading outside the regular trading session hours.

 

Calculation Agent

 

            The Calculation Agent will determine the Maturity Payment Amount.  In addition, the Calculation Agent will (i)  determine if adjustments are required to the Closing Value of a Market Measure under the circumstances described in this Security, (ii) if publication of the Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available, determine the Closing Value of the Index under the circumstances described in this Security, (iii) determine whether a Market Disruption Event or non-Trading Day has occurred, and (iv) if the Fund undergoes a Liquidation Event, select a Successor Fund or, if no Successor Fund is available, determine the Closing Value of the Fund. 

 

            The Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall be a broker-dealer, bank or other financial institution) with respect to this Security.

 

            All determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security. 

 

Tax Considerations

 

            The Company agrees, and by acceptance of a beneficial ownership interest in this Security each Holder of this Security will be deemed to have agreed (in the absence of a statutory, regulatory, administrative or judicial ruling to the contrary), for United States federal income tax purposes to characterize and treat this Security as a prepaid derivative contract that is an “open transaction.”

 

Redemption and Repayment

 

            This Security is not subject to redemption at the option of the Company or repayment at the option of the Holder hereof prior to March 23, 2023.  This Security is not entitled to any sinking fund.

 

Acceleration

 

            If an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity Payment Amount (calculated as set forth in the next sentence) of this Security may be declared due and payable in the manner and with the effect provided in the Indenture.  The amount payable to the Holder hereof upon any acceleration permitted under the Indenture will be equal to the Maturity Payment Amount hereof calculated as provided herein as though the date of acceleration was the Calculation Day.

 

__________________

 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

13

 

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

[The remainder of this page has been left intentionally blank]

 

14

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

DATED: 

 

	
 

	
WELLS FARGO FINANCE LLC

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
Its:

 

	
 

	
Attest:

	
 

	
 

	
 

	
 

	
 

	
 

	
Its:

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION
This is one of the Securities of the 
series designated therein described
in the within-mentioned Indenture.

 

	
CITIBANK, N.A.,

	
 

	
as Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Authorized Signature

	
 

	
 

	
 

	
 

	
OR

	
 

	
 

	
 

	
 

	
WELLS FARGO BANK, N.A.,

	
 

	
as Authenticating Agent for the Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Authorized Signature

	
 

 

15

 

[Reverse of Note]

 

WELLS FARGO FINANCE LLC

 

MEDIUM-TERM NOTE, SERIES A

Fully and Unconditionally Guaranteed by Wells Fargo & Company

 

Principal at Risk Securities Linked to the Lowest Performing of the S&P 500® Index 

and the Invesco QQQ TrustSM, Series 1 due March 23, 2023

 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an indenture dated as of April 25, 2018, as amended or supplemented from time to time (herein called the “Indenture”), among the Company, as issuer, Wells Fargo & Company, as guarantor (the “Guarantor”) and Citibank, N.A., as trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantor, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered.  This Security is one of the series of the Securities designated as Medium-Term Notes, Series A, of the Company.  The amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest at a fixed rate or a floating rate.  The Securities of this series may mature at different times, be redeemable at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies.

 

The Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities issued to and registered in the names of, the beneficial owners or their nominees.

 

The Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against a Holder of this Security.

 

Guarantee 

 

The Securities of this series are fully and unconditionally guaranteed by the Guarantor as and to the extent set forth in the Indenture.

 

Modification and Waivers 

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the Guarantor and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the

 

16

 

Company, the Guarantor and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected, acting together as a class.  The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting together as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company or the Guarantor with those provisions of the Indenture.  Certain past defaults under the Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series.  Solely for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof as the “Face Amount” hereof.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

Defeasance

 

Section 403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon compliance by the Company or the Guarantor with certain conditions set forth therein, shall not apply to this Security.  The remaining provisions of Section 401 of the Indenture shall apply to this Security.

 

Authorized Denominations

 

This Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which is an integral multiple of $1,000.

 

Registration of Transfer

 

Upon due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis, Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental charge imposed in connection therewith.

 

This Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z) an Event of Default with respect to the Securities

 

17

 

 
represented
hereby has occurred and is continuing.  If this Security is exchangeable pursuant to the preceding sentence, it shall be
exchangeable for definitive Securities in registered form, having the same date of issuance, Stated Maturity Date and other terms
and of authorized denominations aggregating a like amount. 

 

This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor.  Except as provided above, owners of beneficial interests in this Global Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture.

 

Prior to due presentment of this Security for registration of transfer, the Company, the Guarantor, the Trustee and any agent of the Company, the Guarantor or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Guarantor, the Trustee nor any such agent shall be affected by notice to the contrary.

 

Obligation of the Company Absolute

 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the Maturity Payment Amount at the times, place and rate, and in the coin or currency, herein prescribed, except as otherwise provided in this Security.

 

No Personal Recourse

 

No recourse shall be had for the payment of the Maturity Payment Amount, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation or of the Guarantor or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

 

Defined Terms

 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise defined in this Security.

 

Governing Law

 

This Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles of conflicts of laws.

 

18

 

ABBREVIATIONS

 

                        The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN COM

	
--

	
as tenants in common

	
 

	
 

	
 

	
TEN ENT

	
--

	
as tenants by the entireties

	
 

	
 

	
 

	
JT TEN

	
--

	
as joint tenants with right

	
 

	
 

	
of survivorship and not

	
 

	
 

	
as tenants in common

 

	
UNIF GIFT MIN ACT

	
--

	
 

	
Custodian

	
 

	
 

	
 

	
(Minor)

	
 

	
(Minor)

 

	
Under Uniform Gifts to Minors Act

	
 

	
 

	
 

	
(State)

	
 

 

            Additional abbreviations may also be used though not in the above list.

 

            FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

 

	
Please Insert Social Security or
Other Identifying Number of Assignee

	
 

	
 

	
 

	
 

	
     

	
 

	
 

	
(Please print or type name and address including postal zip code of Assignee)

 

19

 

the within Security of WELLS FARGO FINANCE LLC and does hereby irrevocably constitute and appoint __________________ attorney to transfer the said Security on the books of the Company, with full power of substitution in the premises.

 

Dated:  _________________________

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

NOTICE:  The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular, without alteration or enlargement or any change whatever.

 

20

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