Document:

Exhibit 4.1

 

EXECUTION VERSION

 

SECTION 382 RIGHTS AGREEMENT

 

dated as of March 18, 2016

 

between

 

VRINGO, INC.

 

and

 

American
Stock Transfer & Trust Company, LLC,

 

as Rights Agent

 

     

     

    

 

Table of Contents

 

Page

 

	SECTION 1.	Certain Definitions	1
	SECTION 2.	Appointment of Rights Agent	11
	SECTION 3.	Issue of Rights and Right Certificates	11
	SECTION 4.	Form of Right Certificates	14
	SECTION 5.	Execution, Countersignature and Registration	14
	SECTION 6.	Transfer, Split-Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates; Uncertificated Rights	15
	SECTION 7.	Exercise of Rights, Expiration Date of Rights	15
	SECTION 8.	Cancelation and Destruction of Right Certificates	17
	SECTION 9.	Reservation and Availability of Preferred Shares	18
	SECTION 10.	Preferred Shares Record Date	19
	SECTION 11.	Adjustments in Rights After There Is an Acquiring Person; Exchange of Rights for Shares; Business Combinations	19
	SECTION 12.	Certain Adjustments	23
	SECTION 13.	Certificate of Adjustment	24
	SECTION 14.	Additional Covenants	25
	SECTION 15.	Fractional Rights and Fractional Shares	25
	SECTION 16.	Rights of Action	26
	SECTION 17.	Transfer and Ownership of Rights and Right Certificates	27
	SECTION 18.	Right Certificate Holder Not Deemed a Stockholder	27
	SECTION 19.	Concerning the Rights Agent	27
	SECTION 20.	Merger or Consolidation or Change of Rights Agent	28
	SECTION 21.	Duties of Rights Agent	28
	SECTION 22.	Change of Rights Agent	31
	SECTION 23.	Issuance of Additional Rights and Right Certificates	32
	SECTION 24.	Redemption and Termination	32
	SECTION 25.	Notices	33
	SECTION 26.	Supplements and Amendments	33
	SECTION 27.	Successors	34
	SECTION 28.	Benefits of Rights Agreement; Determinations and Actions by the Board, etc	34
	SECTION 29.	Process to Seek Exemption	35
	SECTION 30.	Tax Benefits Review	36
	SECTION 31.	Severability	36
	SECTION 32.	Governing Law	36
	SECTION 33.	Counterparts; Effectiveness	36
	SECTION 34.	Descriptive Headings	36
	SECTION 35.	Force Majeure	36

 

Exhibits 

	A		Form of Certificate of Designation

	B		Form of Right Certificate

	C		Summary of Rights

 

    i

     

    

 

SECTION 382 RIGHTS AGREEMENT dated as of March
18, 2016 (the “Rights Agreement”), between VRINGO, INC., a Delaware corporation (the “Company”),
and AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, as Rights Agent (the “Rights Agent”).

 

WHEREAS, the Company has generated NOLs and
other Tax Benefits (as such terms are hereinafter defined) for United States Federal income tax purposes; and such NOLs and other
Tax Benefits may potentially provide valuable tax benefits to the Company; the Company desires to avoid an “ownership change”
within the meaning of Section 382 and the Treasury Regulations (as such terms are hereinafter defined) promulgated thereunder,
and thereby preserve the ability to utilize fully such NOLs and other Tax Benefits; and, in furtherance of such objective, the
Company desires to enter into this Rights Agreement; and

 

WHEREAS, on March 18, 2016 (the “Rights
Dividend Declaration Date”) the Board of Directors of the Company (the “Board”) has authorized and
declared a dividend of one Right (as hereinafter defined) for each share of Common Stock, par value $0.01 per share, of the Company
(the “Common Stock”) outstanding at the Close of Business (as hereinafter defined) on March 29, 2016 (the “Record
Date”), and has authorized the issuance of one Right (as such number may hereafter be adjusted pursuant to the provisions
of this Rights Agreement) with respect to each share of Common Stock that shall become outstanding (whether originally issued or
delivered from the Company’s treasury) between the Record Date and the earliest of the Distribution Date, the Redemption
Date or the Expiration Date (as such terms are hereinafter defined); provided, however, that Rights may be issued with respect
to shares of Common Stock that shall become outstanding after the Distribution Date (whether originally issued or delivered from
the Company’s treasury) and prior to the earlier of the Redemption Date or the Expiration Date only in accordance with the
provisions of Section 23. Each Right shall initially represent the right to purchase one one-thousandth (1/1,000th) of a share
of Series C Junior Participating Preferred Stock, par value $0.01 per share, of the Company (the “Preferred Shares”),
having the powers, rights and preferences set forth in the Certificate of Designation attached hereto as Exhibit A.

 

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 Rights
Agreement, the following terms have the meanings indicated:

 

“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 4.99% or more of the Common Shares then outstanding, but not including (a) the Company, any Subsidiary of the Company, any employee
benefit or compensation plan of the Company or of any of its Subsidiaries or any Person organized, appointed or established by
the Company and holding Common Shares for or pursuant to the terms of any such employee benefit or compensation plan, (b) any Grandfathered
Person, unless such Grandfathered Person becomes the Beneficial Owner of a percentage of Common Shares then outstanding exceeding
such Grandfathered Person’s Grandfathered Percentage by 0.5% or more or (c) any Exempt Person; provided, however,
that no Person who or which, alone or together with all Affiliates and Associates of such Person, has become and is the Beneficial
Owner of 4.99% or more (or in the case of a Grandfathered Person, has exceeded and is exceeding such Grandfathered Person’s
Grandfathered Percentage by 0.5% or more) of the Common Shares at the time outstanding, will be deemed to have become an Acquiring
Person solely as the result of (i) a change in the aggregate number of Common Shares outstanding since the last date on which such
Person acquired Beneficial Ownership of any Common Shares, including pursuant to a dividend or distribution of shares by the Company
made on a pro rata basis to all holders of Common Shares or the issuance of shares by the Company pursuant to a split or subdivision
of the outstanding Common Shares; (ii) equity compensation awards granted to such Person by the Company or as a result of an adjustment
to the number of Common Shares represented by such equity compensation award pursuant to the terms thereof, unless and until such
time, in the case of clause (i) and clause (ii), as such Person or one or more of its Affiliates or Associates thereafter acquires
Beneficial Ownership of one additional Common Share (other than any Common Shares acquired as described in clause (i) or (ii) above);
or (iii) the acquisition by such Person or one or more of its Affiliates or Associates of Beneficial Ownership of additional Common
Shares if the Board determines that such acquisition was made in good faith without the knowledge by such Person or one or more
of its Affiliates or Associates that such Person would thereby become an Acquiring Person (including because (A) such Person was
unaware that it Beneficially Owned a percentage of then-outstanding Common Shares that would otherwise cause such Person, together
with all Affiliates and Associates of such Person, to become an “Acquiring Person” or (B) such Person was aware of
the extent of its Beneficial Ownership but was unaware of the consequences of such Beneficial Ownership under this Rights Agreement),
which determination of the Board shall be conclusive and binding on such Person, the Rights Agent, the holders of the Rights and
all other Persons.

 

     

     

    

 

Notwithstanding clause (iii) of the proviso
in the prior sentence, unless the Board determines pursuant to the definition of “Exempt Person” that an Inadvertent
Acquiror is an Exempt person, if any Person that is not an Acquiring Person due to such clause (iii) does not reduce its, together
with all of its Affiliates and Associates, percentage of Beneficial Ownership of Common Shares to less than 4.99% by the Close
of Business on the tenth calendar day after notice from the Company (the date of notice being the first day) that such Person’s
Beneficial Ownership of Common Shares would make it an Acquiring Person, such Person shall, at the end of such ten calendar day
period, become an Acquiring Person (and such clause (iii) shall no longer apply to such Person). If any Person that is not an Acquiring
Person due to such clause (iii) and the requirements of the prior sentence shall again become the Beneficial Owner of 4.99% or
more of the Common Shares then outstanding, such Person shall be deemed an “Acquiring Person”, subject to the exceptions
set forth in this definition.

 

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

 

“Affiliate” and “Associate”,
when used with reference to any Person, shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General
Rules and Regulations under the Exchange Act, as in effect on the date of this Rights Agreement, and to the extent not included
within the foregoing, shall also include with respect to any Person, any other Person whose Common Shares would be deemed to be
constructively owned by such first Person, owned by a single “entity” as defined in Section 1.382-3(a)(1) of the Treasury
Regulations, or otherwise aggregated with shares owned by such first Person, pursuant to the provisions of the Code, or any successor
or replacement provision, and the Treasury Regulations promulgated thereunder.

 

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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:

 

(a)              
that such Person or any of such Person’s Affiliates or Associates is deemed to “beneficially own”
within the meaning of Rule 13d-3 of the General Rules and Regulations under the Exchange Act, as in effect on the date of this
Rights 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 Common Shares by virtue of owning securities or other interests (including rights, options
or warrants) that are convertible or exchangeable into, or exercisable for, such Common Shares, except to the extent that upon
the acquisition or transfer of such securities or other interests, such securities or other interests would be treated as exercised
under Section 1.382-4(d) or other applicable sections of the Treasury Regulations;

 

(b)              
that such Person or any of such Person’s Affiliates or Associates has, directly or indirectly, the legal, equitable
or contractual right or obligation to acquire (whether such right is exercisable immediately or only after the passage of time,
compliance with regulatory requirements, fulfillment of a condition or otherwise, or whether within the control of such Person)
pursuant to any agreement, arrangement or understanding (written or oral), or upon the exercise of conversion rights, exchange
rights, other rights (other than the Rights), warrants or options, or otherwise; provided, however, that a Person shall
not be deemed under this clause (b) to be the Beneficial Owner of, or to Beneficially Own, or to have Beneficial Ownership of (i)
any Common Shares by virtue of owning securities or other interests (including rights, options or warrants) that are convertible
or exchangeable into, or exercisable for, such Common Shares, except to the extent that upon the acquisition or transfer of such
securities or other interests, such securities or other interests would be treated as exercised under Section 1.382-4(d) or other
applicable sections of the Treasury Regulations or (ii) any securities tendered pursuant to a tender or exchange offer made by
or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted
for purchase or exchange thereunder or cease to be subject to withdrawal by the tendering security holder;

 

(c)              
that such Person or any of such Person’s Affiliates or Associates has the right to vote pursuant to any agreement,
arrangement or understanding (written or oral); provided, however, that a Person shall not be deemed under this clause (c)
to be the Beneficial Owner of, or to Beneficially Own, or to have Beneficial Ownership of, any security if (i) the agreement, arrangement
or understanding to vote such security arises solely from a revocable proxy or consent given to such Person in response to a public
proxy or consent solicitation made generally to all holders of Common Shares of the Company pursuant to, and in accordance with,
the applicable rules and regulations under the Exchange Act and (ii) the beneficial ownership of such security is not also then
reportable on Schedule 13D or 13G under the Exchange Act (or any comparable or successor report);

 

(d)              
that such Person or any of such Person’s Affiliates or Associates has the right to dispose of, pursuant to
any agreement, arrangement or understanding (written or oral);

 

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(e)              
that are beneficially owned, directly or indirectly, by any other Person (or an Affiliate or Associate thereof) with
which such Person (or any of such Person’s Affiliates or Associates) has any agreement, arrangement or understanding (written
or oral) for the purpose of acquiring (except pursuant to a tender or exchange offer subject to withdrawal as described in the
proviso to clause (b) of this definition) such securities, but only if the effect of such agreement, arrangement or understanding
is to treat such Persons as an “entity” under Section 1.382-3(a)(1) or other applicable sections of the Treasury Regulations;
or

 

(f)               
which are the subject of, or the reference securities for, or that underlie, any derivative security (as defined
under Rule 16a-1 under the Exchange Act) Beneficially Owned by such Person or any of such Person’s Affiliates or Associates,
with the number of Common Shares deemed Beneficially Owned being the notional or other number of Common Shares specified in the
documentation evidencing such derivative security as being subject to be acquired upon the exercise or settlement of such derivative
security or as the basis upon which the value or settlement amount of such derivative security is to be calculated in whole or
in part or, if no such number of Common Shares is specified in such documentation, as determined by the Board in its sole discretion
to be the number of Common Shares to which such derivative security relates, to the extent that such derivative security is being
used to evade the ownership change rules under Section 382.

 

Notwithstanding the foregoing, nothing contained
in this definition shall cause a Person to be deemed the “Beneficial Owner” of, or to “Beneficially Own”,
or to have “Beneficial Ownership” of, securities (A) if the Person is ordinarily engaged in business as an underwriter
of securities and has acquired such securities in a bona fide firm commitment underwriting pursuant to an underwriting agreement
with the Company until the expiration of 40 calendar days (or such later date as the Board may determine in any specific case)
after the date of such acquisition, and then only if such securities continue to be owned by such Person at such expiration of
40 calendar days (or such later date as the Board may determine in any specific case), or (B) if such Person is a “clearing
agency” (as defined in Section 3(a)(23) of the Exchange Act) and has acquired such securities solely as a result of such
status.

 

Notwithstanding anything in this Rights
Agreement to the contrary, to the extent not contained in this definition, a Person shall be deemed the “Beneficial Owner”
of and shall be deemed to “Beneficially Own” or have “Beneficial Ownership” of, Common Shares that such
Person would be deemed to constructively own or that otherwise would be aggregated with shares owned by such Person pursuant to
Section 382, or any successor provision or replacement provision of the Code and the Treasury Regulations promulgated thereunder.

 

“Board” shall have the
meaning set forth in the introductory paragraph of this Rights Agreement.

 

“Book Value”, when used
with reference to Common Shares issued by any Person, shall mean the amount of equity of such Person applicable to each Common
Share, determined (a) in accordance with generally accepted accounting principles in effect on the date as of which such Book Value
is to be determined, (b) using all the consolidated assets and all the consolidated liabilities of such Person on the date as of
which such Book Value is to be determined, except that no value shall be included in such assets for goodwill arising from consummation
of a business combination, and (c) after giving effect to (i) the exercise of all rights, options and warrants to purchase such
Common Shares (other than the Rights), and the conversion of all securities convertible into such Common Shares, that have an exercise
or conversion price, per Common Share, which is less than such Book Value before giving effect to such exercise or conversion (whether
or not exercisability or convertibility is conditioned upon occurrence of a future event), (ii) all dividends and other distributions
on the capital stock of such Person declared prior to the date as of which such Book Value is to be determined and to be paid or
made after such date, and (iii) any other agreement, arrangement or understanding (written or oral), or transaction or other action
contemplated prior to the date as of which such Book Value is to be determined that would have the effect of thereafter reducing
such Book Value.

 

    4

     

    

 

“Business Combination”
shall have the meaning set forth in Section 11(c)(i).

 

“Business Day” shall
mean each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in the State of New York
are authorized or obligated by law or executive order to close.

 

“Certificate of Designation”
shall mean the Certificate of Designation of Series C  Junior
Participating Preferred Stock of the Company, substantially in the form of Exhibit
A hereto.

 

“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, “Close of Business” shall mean 5:00 p.m., New York City time, on the next succeeding Business Day.

 

“Code” shall mean Internal
Revenue Code of 1986, as amended.

 

“Common Shares”, when
used with reference to the Company prior to a Business Combination, shall mean the shares of Common Stock or any other shares of
capital stock of the Company into which the Common Stock shall be reclassified or changed and any other interest that would be
treated as “stock” of the Company for purposes of Section 382 (including but not limited to Treasury Regulation Section
1.382-2T(f)(18)) in this Section 1 and all other provisions of this Rights Agreement in which such meaning is necessary in order
to ensure that this Rights Agreement is effective in carrying out its stated purpose and intent of preserving the Company’s
NOLs and other Tax Benefits; “Common Shares”, when used with reference to any Person (other than the Company
prior to a Business Combination), shall mean shares of capital stock of such Person (if such Person is a corporation) of any class
or series, or units of equity interests in such Person (if such Person is not a corporation) of any class or series, the terms
of which do not limit (as a maximum amount and not merely in proportional terms) the amount of dividends or income payable or distributable
on such class or series or the amount of assets distributable on such class or series upon any voluntary or involuntary liquidation,
dissolution or winding up of such Person and do not provide that such class or series is subject to redemption at the option of
such Person, or any shares of capital stock or units of equity interests into which the foregoing shall be reclassified or changed,
and if there shall be more than one class or series of such shares of capital stock or units of equity interests of such Person,
then “Common Shares” of such Person shall mean the class or series of capital stock of such Person or units
of equity interests in such Person having voting power (being the power under ordinary circumstances (and not merely upon the happening
of a contingency) to vote in the election of directors of such Person (if such Person is a corporation) or to participate in the
management and control of such Person (if such Person is not a corporation)), or in the case of multiple classes or series having
such voting power, having the greatest voting power.

 

    5

     

    

 

“Common Stock” shall
have the meaning set forth in the introductory paragraph of this Rights Agreement.

 

“Company” shall have
the meaning set forth in the heading of this Rights Agreement; provided, however, that if there is a Business Combination,
“Company” shall have the meaning set forth in Section 11(c)(iii).

 

The term “control” with
respect to any Person shall mean the power to direct the management and policies of such Person, directly or indirectly, by or
through stock ownership, agency or otherwise, or pursuant to or in connection with an agreement, arrangement or understanding (written
or oral) with one or more other Persons by or through stock ownership, agency or otherwise; and the terms “controlling”
and “controlled” shall have meanings correlative to the foregoing.

 

“Distribution Date” shall
have the meaning set forth in Section 3(b).

 

“Exchange Act” shall
mean the Securities Exchange Act of 1934, as in effect on the date in question, unless otherwise specifically provided.

 

“Exchange Consideration”
shall have the meaning set forth in Section 11(b)(i).

 

“Exempt Person” shall
mean any Person, alone or together with all Affiliates and Associates of such Person, whose Beneficial Ownership of 4.99% or more
of the then outstanding Common Shares, as determined by the Board in its sole discretion, or a duly constituted committee of Independent
Directors, in its sole discretion, including a determination pursuant to Section 29, (a) would not jeopardize or endanger the availability
to the Company of its NOLs or other Tax Benefits, taking into account all relevant facts and circumstances, including the potential
for the Company to issue a reasonable amount of equity in the future without jeopardizing the availability of its NOLs and other
Tax Benefits or (b) is otherwise in the best interests of the Company; provided, however, that the Board, or a duly constituted
committee of Independent Directors, makes such determination either (x) before the time such Person otherwise would have become
an Acquiring Person, or (y) after the time such Person otherwise would have become an Acquiring Person if the Board has determined
that such Person is an Inadvertent Acquiror; provided, further, that such Person will cease to be an “Exempt Person”
if the Board, in its sole discretion, or a duly constituted committee of Independent Directors, makes a contrary determination
with respect to the effect of such Person’s Beneficial Ownership (together with all Affiliates and Associates of such Person)
with respect to the availability to the Company of its NOLs or other Tax Benefits, taking into account all relevant facts and circumstances,
including the potential for the Company to issue a reasonable amount of equity in the future without jeopardizing the availability
of its NOLs and other Tax Benefits. In granting an exemption under this definition, the Board may require any Person who would
otherwise be an Acquiring Person to make certain representations, undertakings or covenants or to agree that any violation or attempted
violation of such representations, undertakings or covenants will result in such consequences and be subject to such conditions
as the Board, or a duly constituted committee of Independent Directors, may determine in its sole discretion, including that any
such violation shall result in such Person becoming an Acquiring Person.

 

    6

     

    

 

“Exempt Transaction”
shall mean any transaction that the Board determines, or a duly constituted committee of Independent Directors determines, is exempt
from this Rights Agreement, which determination shall be made in the sole discretion of the Board (or any such committee) prior
to the date of such transaction, including if the Board determines that (a) neither the Beneficial Ownership of Common Shares by
any Person, directly or indirectly, as a result of such transaction nor any other aspect of such transaction would jeopardize or
endanger the availability to the Company of the NOLs or other Tax Benefits, taking into account all relevant facts and circumstances,
including the potential for the Company to issue a reasonable amount of equity in the future without jeopardizing the availability
of its NOLs and other Tax Benefits or (b) such transaction is otherwise in the best interests of the Company. In granting an exemption
under this definition, the Board may require any Person who would otherwise be an Acquiring Person to make certain representations,
undertakings or covenants or to agree that any violation or attempted violation of such representations, undertakings or covenants
will result in such consequences and be subject to such conditions as the Board, or a duly constituted committee of Independent
Directors, may determine in its sole discretion, including that any such violation shall result in such Person becoming an Acquiring
Person.

 

“Exemption Request” shall
have the meaning set forth in Section 29.

 

“Expiration Date” shall
have the meaning set forth in Section 7(a).

 

“Final Expiration Date”
shall mean the Close of Business on March 18, 2019.

 

“Further Subsequent Transferee”
shall have the meaning set forth in Section 7(e).

 

“Grandfathered Percentage”
shall mean, with respect to any Grandfathered Person, the percentage of the outstanding Common Shares of the Company that such
Grandfathered Person, together with all Affiliates and Associates of such Grandfathered Person, Beneficially Owns as of the Rights
Dividend Declaration Date; provided that, in the event any Grandfathered Person shall sell, transfer, or otherwise dispose
of any outstanding Common Shares of the Company after the Rights Dividend Declaration Date, the Grandfathered Percentage shall,
subsequent to such sale, transfer or disposition, mean, with respect to such Grandfathered Person, the lesser of (a) the Grandfathered
Percentage as in effect immediately prior to such sale, transfer or disposition or (b) the percentage of outstanding Common Shares
of the Company that such Grandfathered Person Beneficially Owns immediately following such sale, transfer or disposition.

 

“Grandfathered Person”
shall mean any Person who or which, together with all Affiliates and Associates of such Person, is, as of the Rights Dividend Declaration
Date, the Beneficial Owner (as disclosed in public filings with the Securities and Exchange Commission on the Rights Dividend Declaration
Date) of 4.99% or more of the Common Shares of the Company then outstanding. Notwithstanding anything to the contrary provided
in this Rights Agreement, any Grandfathered Person who after the Rights Dividend Declaration Date becomes the Beneficial Owner
of less than 4.99% of the Common Shares of the Company then outstanding shall cease to be a Grandfathered Person and shall be subject
to all of the provisions of this Rights Agreement in the same manner as any Person who or which is not and was never a Grandfathered
Person.

 

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“including” shall mean
including, without limitation.

 

“Inadvertent Acquiror”
shall mean any Person who would be an Acquiring Person but for clause (iii) of the proviso in the definition of “Acquiring
Person”.

 

“Independent Director”
shall mean an independent director as defined under Listing Rules of the NASDAQ Stock Market.

 

“Major Part”, when used
with reference to the assets of the Company and its Subsidiaries as of any date, shall mean assets (a) having a fair market value
aggregating 50% or more of the total fair market value of all the assets of the Company and its Subsidiaries (taken as a whole)
as of the date in question, (b) accounting for 50% or more of the total value (net of depreciation and amortization) of all the
assets of the Company and its Subsidiaries (taken as a whole) as would be shown on a consolidated or combined balance sheet of
the Company and its Subsidiaries as of the date in question, prepared in accordance with generally accepted accounting principles
then in effect, or (c) accounting for 50% or more of the total amount of earnings before interest, taxes, depreciation and amortization
or of the revenues of the Company and its Subsidiaries (taken as a whole) as would be shown on, or derived from, a consolidated
or combined statement of income or net earnings of the Company and its Subsidiaries for the period of 12 months ending on the last
day of the Company’s monthly accounting period immediately preceding the date in question, prepared in accordance with generally
accepted accounting principles then in effect.

 

“Market Value”, when
used with reference to Common Shares on any date, shall mean the average of the daily closing prices, per share, of such Common
Shares for the period which is the shorter of (a) 30 consecutive Trading Days ending on the Trading Day immediately prior to the
date in question or (b) the number of consecutive Trading Days beginning on the Trading Day immediately after the date of the first
public announcement of the event requiring a determination of the Market Value of Common Shares and ending on the Trading Day immediately
prior to the record date of such event. The closing price for each Trading Day shall be the closing price quoted on the principal
consolidated transaction reporting system with respect to securities listed or admitted to trading on the NASDAQ Stock Market,
or, if the Common Shares or other relevant securities are not quoted on the NASDAQ Stock Market, on the principal United States
securities exchange registered under the Exchange Act (or any recognized foreign stock exchange) on which such securities are listed
or admitted to trading, or, if such securities are not listed or admitted to trading on any such exchange, the closing price (or,
if no sale takes place on such Trading Day, the average of the closing bid and asked prices on such Trading Day) as quoted on any
reputable quotations system specified by the Board, or if no such quotations are available, the average of the closing bid and
asked prices as furnished by a professional market maker making a market in such securities selected by the Board, or if on any
such Trading Day no market maker is making a market in such securities, the closing price of such securities on such Trading Day
shall be deemed to be the fair value of such securities as determined in good faith by the Board (whose determination shall be
described in a statement filed with the Rights Agent and shall be binding on the Rights Agent, the holders of Rights and all other
Persons); provided, however, that if a Trading Day occurs during a period following an announcement of any action of the
type described in Section 12(a) that would require an adjustment thereunder by the issuer of the securities the closing price of
which is to be determined, then, and in each such case, the closing price of such securities shall be appropriately adjusted to
reflect the effect of such action on the market price of such securities; and provided further, however, that for the purpose
of determining the closing price of the Preferred Shares for any Trading Day on which there is no market maker for the Preferred
Shares, the closing price on such Trading Day shall be deemed to be the Formula Number (as defined in the Certificate of Designation)
multiplied by the closing price of the Common Shares of the Company on such Trading Day.

 

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“NOLs” shall mean the
Company’s net operating loss carryforwards.

 

“Person” shall mean an
individual, firm, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization
or other entity, or a group of Persons making a “coordinated acquisition” of shares or otherwise treated as an entity
within the meaning of Section 1.382-3(a)(1) of the Treasury Regulations, and shall include any successor (by merger or otherwise)
of such individual or entity, but shall not include a Public Group (as defined in Section 1.382-2T(f)(13) of the Treasury Regulations).

 

“Post Transferee” shall
have the meaning set forth in Section 7(e).

 

“Preferred Shares” shall
have the meaning set forth in the introductory paragraph of this Rights Agreement. Any reference in this Rights Agreement to Preferred
Shares shall be deemed to include any authorized fraction of a Preferred Share, unless the context otherwise requires.

 

“Principal Party” shall
mean the Surviving Person in a Business Combination; provided, however, that, (i) if such Surviving Person is a direct or
indirect Subsidiary of any other Person, “Principal Party” shall mean the Person which is the ultimate parent
of such Surviving Person, and (ii) in the event ultimate control of such Surviving Person is shared by two or more Persons, “Principal
Party” shall mean that Person that is immediately controlled by such two or more Persons.

 

“Prior Transferee” shall
have the meaning set forth in Section 7(e).

 

“Purchase Price” with
respect to each Right shall mean $9.50, as such amount may from time to time be adjusted as provided in this Rights Agreement,
and shall be payable in lawful money of the United States of America. All references herein to the Purchase Price shall mean the
Purchase Price as in effect at the time in question.

 

“Record Date” shall have
the meaning set forth in the introductory paragraph of this Rights Agreement.

 

“Redemption Date” shall
have the meaning set forth in Section 24(a).

 

    9

     

    

 

“Redemption Price” with
respect to each Right shall mean $0.01, as such amount may from time to time be adjusted in accordance with Section 12. All references
herein to the Redemption Price shall mean the Redemption Price as in effect at the time in question.

 

“Registered Common Shares”
shall mean Common Shares that are, as of the date of consummation of a Business Combination, and have continuously been for the
12 months immediately preceding such date, registered under Section 12 of the Exchange Act, and if a Person has multiple classes
or series of Registered Common Shares outstanding, “Registered Common Shares” of such Person shall mean the
class or series of Registered Common Shares of such Person having voting power (being the power under ordinary circumstances (and
not merely upon the happening of a contingency) to vote in the election of directors of such Person (if such Person is a corporation)
or to participate in the management and control of such Person (if such Person is not a corporation)), or in the case of multiple
classes or series having such voting power, having the greatest voting power.

 

“Requesting Person” shall
have the meaning set forth in Section 29.

 

“Right Certificate” shall
mean a certificate evidencing a Right in substantially the form attached hereto as Exhibit B.

 

“Rights” shall mean the
rights to purchase Preferred Shares (or other securities) as provided in this Rights Agreement.

 

“Rights Dividend Declaration Date”
shall have the meaning set forth in the introductory paragraph of this Rights Agreement.

 

“Section 382” shall mean
Section 382 of the Code, or any successor provision or replacement provision.

 

“Securities Act” shall
mean the Securities Act of 1933, as in effect on the date in question, unless otherwise specifically provided.

 

“Share Acquisition Date”
shall mean the date on which the Company learns that a Person has become an Acquiring Person; provided, however that, if
such Person is determined by the Board (a) to be an Exempt Person or (b) not to have become an Acquiring Person pursuant to clause
(iii) of the proviso in the definition of “Acquiring Person”, then in the case of each of clause (a) and (b), the Share
Acquisition Date shall be deemed not to have occurred; but only for so long as such Person (i) in the case of clause (a), remains
an Exempt Person or (ii) in the case of clause (b), does not thereafter become an Acquiring Person pursuant to the second sentence
of the definition of “Acquiring Person”, unless, in the case of each of clause (i) and clause (ii), the Distribution
Date shall have occurred.

 

“Subsidiary” of another
Person shall mean a Person, at least a majority of the total outstanding voting power (being the power under ordinary circumstances
(and not merely upon the happening of a contingency) to vote in the election of directors of such Person (if such Person is a corporation)
or to participate in the management and control of such Person (if such Person is not a corporation)) of which is owned, directly
or indirectly, by such other Person or by one or more other Subsidiaries of such other Person or by such other Person and one or
more other Subsidiaries of such other Person.

 

    10

     

    

 

“Summary of Rights” shall
have the meaning set forth in Section 3(c).

 

“Surviving Person” shall
mean (a) the Person which is the continuing or surviving Person in a consolidation, merger, share exchange or other business combination
specified in Section 11(c)(i)(A) or (b) the Person to which the Major Part of the assets of the Company and its Subsidiaries is
sold, leased, exchanged or otherwise transferred or disposed of in a transaction specified in Section 11(c)(i)(B); provided,
however, that, if the Major Part of the assets of the Company and its Subsidiaries is sold, leased, exchanged or otherwise
transferred or disposed of in one or more related transactions specified in Section 11(c)(i)(B) to more than one Person, the “Surviving
Person” in such case shall mean the Person that acquired assets of the Company and/or its Subsidiaries with the greatest
fair market value in such transaction or transactions.

 

“Tax Benefits” shall
mean the net operating loss carryovers, capital loss carryovers, general business credit carryovers, alternative minimum tax credit
carryovers, foreign tax credit carryovers, research and development credit carryovers and any loss or deduction attributable to
a “net unrealized built-in loss” within the meaning of Section 382, and the Treasury Regulations promulgated thereunder,
of the Company or any of its Subsidiaries.

 

“Trading Day” shall mean
a day on which the principal United States securities exchange (or principal recognized foreign stock exchange, as the case may
be) on which the Rights or securities in question are listed or admitted to trading is open for the transaction of business or,
if the Rights or securities in question are not listed or admitted to trading on any United States securities exchange (or recognized
foreign stock exchange, as the case may be), a Business Day.

 

“Treasury Regulations”
shall mean final, temporary and proposed tax regulations promulgated under the Code, as amended.

 

“Trust” shall have the
meaning set forth in Section 11(b)(ii).

 

“Trust Agreement” shall
have the meaning set forth in Section 11(b)(ii).

 

SECTION
2.      Appointment of Rights Agent. The Company hereby
appoints the Rights Agent to act as agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent
hereby accepts such appointment. The Company may from time to time appoint one or more co-rights agents as it may deem necessary
or desirable, upon ten days’ prior written notice to the Rights Agent. The Rights Agent shall have no duty to supervise,
and shall in no event be liable for, the acts or omissions of any such co-rights agent. In the event the Company appoints one or
more co-rights agents, the respective duties of the Rights Agent and any co-rights agents shall be as the Company shall determine,
and shall be provided in writing to the Rights Agent.

 

SECTION
3.      Issue of Rights and Right Certificates. (a)
One Right shall be associated with each Common Share outstanding on the Record Date, each additional Common Share that shall become
outstanding between the Record Date and the earliest of the Distribution Date, the Redemption Date or the Expiration Date and each
additional Common Share with which Rights are issued after the Distribution Date but prior to the earlier of the Redemption Date
or the Expiration Date as provided in Section 23, subject to adjustment as provided in this Rights Agreement.

 

    11

     

    

 

(b)Until the earlier of the Close of Business
on (i) the tenth calendar day after the Share Acquisition Date and (ii) such date, if any, as may be designated by the Board following
the commencement of, or first public disclosure of an intent to commence, a tender or exchange offer by any Person (other than
the Company, any Subsidiary of the Company, any employee benefit or compensation plan of the Company or of any of its Subsidiaries,
or any Person organized, appointed or established by the Company and holding Common Shares for or pursuant to the terms of any
such employee benefit or compensation plan) for outstanding Common Shares, if upon consummation of such tender or exchange offer
such Person could be the Beneficial Owner of 4.99% or more of the outstanding Common Shares (the Close of Business on the earlier
of such dates being the “Distribution Date”), (x) the Rights shall, except as otherwise provided in Section
3(c), be evidenced by the certificates for Common Shares registered in the names of the holders thereof, or, in the case of Common
Shares held in uncertificated form, by the transaction statement or other record of ownership of such Common Shares, and not by
separate Right Certificates, and (y) the Rights, including the right to receive Right Certificates, shall be transferable only
in connection with the transfer of the underlying Common Shares. As soon as practicable after the Distribution Date, the Rights
Agent shall send by first-class, postage-prepaid mail, to each record holder of Common Shares as of the Close of Business on the
Distribution Date, at the address of such holder shown on the records of the Company or the transfer agent or registrar for the
Common Shares, one or more Right Certificates evidencing one whole Right for each Common Share held by such record holder, subject
to the provisions of Section 15 and to adjustment as provided in this Rights Agreement. As of and after the Distribution
Date, the Rights shall be evidenced solely by such Right Certificates.

 

(c)As soon as practicable after the Record
Date, the Company will send a copy of a Summary of Rights to Purchase Preferred Shares, in substantially the form attached hereto
as Exhibit C (the “Summary of Rights”), by first-class, postage-prepaid mail, to each record holder
of Common Shares as of the Close of Business on the Record Date at the address of such holder shown on the records of the Company
or the transfer agent or registrar for the Common Shares. With respect to any Common Shares outstanding as of the Record Date,
and until the earliest of the Distribution Date, the Redemption Date or the Expiration Date, (i) in the case of certificated shares,
(A) the Rights associated with the Common Shares represented by any certificate shall be evidenced by such certificate for the
Common Shares with a copy of the Summary of Rights attached thereto and the registered holders of the Common Shares shall also
be the registered holders of the associated Rights and (B) the surrender for transfer of any such certificate, even without a copy
of the Summary of Rights attached thereto, shall also constitute the transfer of the Rights associated with the Common Shares represented
thereby, and (ii) in the case of Common Shares held in uncertificated form, (A) the Rights associated with the Common Shares shall
be evidenced by the balances indicated in the book-entry account system of the transfer agent for such Common Shares and the registered
holders of the Common Shares shall also be the registered holders of the associated Rights and (B) the transfer of any Common Shares
in the book-entry account system of the transfer agent for such Common Shares shall also constitute the transfer of the Rights
associated with such Common Shares.

 

    12

     

    

 

(d)In the case of certificated Common
Shares, certificates issued for Common Shares after the Record Date (including upon transfer or exchange of outstanding Common
Shares), but prior to the earliest of the Distribution Date, the Redemption Date or the Expiration Date, shall have printed on,
written on or otherwise affixed to them a legend in substantially the following form:

 

This certificate also evidences and entitles
the holder hereof to certain Rights as set forth in a Rights Agreement dated as of March 18, 2016 (as it may be amended from time
to time (the “Rights Agreement”)), between VRINGO, INC. (the “Company”) and American
Stock Transfer & Trust Company, LLC, as Rights Agent (the “Rights Agent”), the terms of which (including
restrictions on the transfer of such Rights) are hereby incorporated herein by reference and a copy of which is on file at the
principal executive offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights shall
be evidenced by separate certificates and shall no longer be evidenced by this certificate. The Company shall mail to the holder
of this certificate a copy of the Rights Agreement without charge after receipt of a written request therefor. RIGHTS THAT ARE
OR WERE, AT ANY TIME ON OR AFTER THE DATE AN ACQUIRING PERSON BECOMES SUCH, BENEFICIALLY OWNED BY SUCH ACQUIRING PERSON OR ANY
AFFILIATE OR ASSOCIATE OF SUCH ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND BY ANY SUBSEQUENT HOLDER
OF SUCH RIGHTS ARE NULL AND VOID AND NONTRANSFERABLE.

 

Notwithstanding this Section 3(d), neither the omission of a
legend nor the inclusion of a legend that makes reference to a rights agreement other than the Rights Agreement shall affect the
enforceability of any part of this Rights Agreement or the rights of any holder of Rights.

 

(e)In the case of Common Shares held in
uncertificated form, the Company shall cause the confirmation and account statements sent to holders of Common Shares in book-entry
form (including upon transfer or exchange of outstanding Common Shares) prior to the earliest of the Distribution Date, the Redemption
Date or the Expiration Date to bear a legend in substantially the following form:

 

Each share of Common Stock, par value $0.01
per share, of VRINGO, INC. (the “Company”) entitles the holder thereof to certain Rights as set forth in a Rights
Agreement dated as of March 18, 2016 (as it may be amended from time to time (the “Rights Agreement”)), between
the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent (the “Rights Agent”), the terms of
which (including restrictions on the transfer of such Rights) are hereby incorporated herein by reference and a copy of which is
on file at the principal executive offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such
Rights shall be evidenced by separate certificates and shall no longer be evidenced by the shares to which this statement relates.
The Company shall mail to the holder of shares to which this statement relates a copy of the Rights Agreement without charge after
receipt of a written request therefor. RIGHTS THAT ARE OR WERE, AT ANY TIME ON OR AFTER THE DATE AN ACQUIRING PERSON BECOMES SUCH,
BENEFICIALLY OWNED BY SUCH ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE OF SUCH ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN
THE RIGHTS AGREEMENT) AND BY ANY SUBSEQUENT HOLDER OF SUCH RIGHTS ARE NULL AND VOID AND NONTRANSFERABLE.

 

    13

     

    

 

Notwithstanding this Section 3(e), neither
the omission of a legend nor the inclusion of a legend that makes reference to a rights agreement other than the Rights Agreement
shall affect the enforceability of any part of this Rights Agreement or the rights of any holder of Rights.

 

SECTION
4.      Form of Right Certificates. The Right Certificates
(and the form of election to purchase and form of assignment to be printed on the reverse side thereof) shall be in substantially
the form set forth as Exhibit B hereto and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of
this Rights Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto
or with any rule or regulation of any stock exchange or interdealer quotation system on which the Rights may from time to time
be listed or traded, or to conform to usage. Subject to the other provisions of this Rights Agreement (including Sections 7, 11
and 24), the Right Certificates, whenever issued, shall be dated as of the Distribution Date and shall entitle the holders thereof
to purchase such number of Preferred Shares as shall be set forth therein for the Purchase Price set forth therein, subject to
adjustment as provided in this Rights Agreement.

 

SECTION
5.      Execution, Countersignature and Registration.
(a) The Right Certificates shall be executed on behalf of the Company by (x) the Chairman of the Board, the Chief Executive Officer,
the President or any Vice President, and by the Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer or
(y) any two officers designated by the Board, either manually or by facsimile signature, and may have affixed thereto the Company’s
seal or a facsimile thereof. The Right Certificates shall be countersigned by the Rights Agent either manually or by facsimile
signature, and shall not be valid or obligatory for any purpose unless so countersigned. In the event that any officer of the Company
who shall have signed any of the Right Certificates shall cease to be such an officer of the Company before countersignature by
the Rights Agent and issuance and delivery by the Company, such Right Certificates may nevertheless be countersigned by the Rights
Agent and issued and delivered by the Company with the same force and effect as though the person who signed such Right Certificates
had not ceased to be such an officer of the Company; and any Right Certificate may be signed on behalf of the Company by any person
who, at the actual date of execution of such Right Certificate, shall be a proper officer of the Company to sign such Right Certificate,
although at the date of execution of this Rights Agreement any such person was not such an officer of the Company.

 

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

 

    14

     

    

 

SECTION
6.      Transfer, Split-Up, Combination and Exchange of
Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates; Uncertificated Rights. (a) Subject to Section
15, at any time after the Distribution Date, and at or prior to the Close of Business on the earlier of the Redemption Date or
the Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates representing Rights that have become
null and void pursuant to Section 7(e)) may be transferred, split-up, combined or exchanged for another Right Certificate or Right
Certificates representing, in the aggregate, the same number of Rights as the Right Certificate or Right Certificates surrendered
then represented. The Right Certificates are transferable only on the registry books of the Rights Agent. Any registered holder
desiring to transfer, split-up, combine or exchange any Right Certificate or Right Certificates shall make such request in writing
delivered to the Company and the Rights Agent and shall surrender the Right Certificate or Right Certificates to be transferred,
split-up, combined or exchanged at the office of the Rights Agent designated for such purpose; provided, however, that neither
the Rights Agent nor the Company shall be obligated to take any action whatsoever with respect to the transfer of any Right Certificate
surrendered for transfer until the registered holder shall have properly completed and duly signed the certification contained
in the form of assignment on the reverse side of such Right Certificate and shall have provided such additional evidence
of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the
Rights Agent shall reasonably request. Thereupon the Rights Agent shall, subject to Sections 7(e) and 15, countersign and deliver
to the Person entitled thereto a Right Certificate or Right 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 Right Certificates.

 

(b)Subject to Sections 7(e) and 15, upon
receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation
of a valid Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them,
and, at the Company’s request, reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto,
and upon surrender to the Rights Agent and cancelation of the Right Certificate if mutilated, the Company shall execute a new Right
Certificate of like tenor and deliver such new Right Certificate to the Rights Agent for countersignature and delivery to the registered
owner in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.

 

(c)Notwithstanding any other provision
hereof, the Company and the Rights Agent may amend this Rights Agreement to provide for uncertificated Rights in addition to or
in place of Rights evidenced by Right Certificates.

 

SECTION
7.      Exercise of Rights, Expiration Date of Rights.
(a) Subject to the other provisions of this Rights Agreement (including Section 7(e) and Section 11), each Right shall entitle
the registered holder thereof, upon exercise thereof as provided in this Rights Agreement, to purchase for the Purchase
Price one one-thousandth (1/1,000th) of a Preferred Share, subject to adjustment as provided in this Rights Agreement, at
any time after the Distribution Date and at or prior to the earliest of (i) the Final Expiration Date, (ii) the Redemption Date,
(iii) the Close of Business on the effective date of the repeal of Section 382 or any successor statute if the Board determines
that this Rights Agreement is no longer necessary or desirable for the preservation of NOLs or other Tax Benefits, (iv) the Close
of Business on the first day of a taxable year of the Company to which the Board determines that no NOLs or other Tax Benefits
may be carried forward or (v) the Close of Business on March 18, 2017, if stockholder approval of this Rights Agreement has not
been obtained by or on such date (the earliest of the events described in clauses or (i), (iii), (iv) and (v) being herein referred
to as the “Expiration Date”).

 

    15

     

    

 

(b)Subject to the other provisions of
this Rights Agreement (including Section 7(e)), the registered holder of any Right certificate may exercise the Rights evidenced
thereby (except as otherwise provided in this Rights Agreement) in whole or in part at any time after the Distribution Date
and at or prior to the earlier of (i) the Expiration Date and (ii) the Redemption Date, upon surrender of the Right Certificate,
with the form of election to purchase on the reverse side thereof properly completed and duly executed, to the Rights Agent at
the office of the Rights Agent designated for such purpose, accompanied by payment of the Purchase Pride for each one one-thousandth
(1/1,000th) of a Preferred Share (as such fraction may be adjusted as provided in this Rights Agreement) as to which the
Rights are exercised, together with an amount equal to any applicable transfer tax, in the manner required hereby.

 

(c) Subject to the other provisions of this
Rights Agreement (including Section 7(e)), upon receipt of a Right Certificate representing exercisable Rights, with the form of
election to purchase properly completed and duly executed, accompanied by payment of the Purchase Price for the Preferred Shares
to be purchased together with an amount equal to any applicable transfer tax, in lawful money of the United States of America,
in cash or by certified check or money order payable to the order of the Company, the Rights Agent shall thereupon promptly (i)
either (A) requisition from any transfer agent of the Preferred Shares (or make available, if the Rights Agent is the transfer
agent for such shares) certificates for the total number of Preferred Shares to be purchased and the Company hereby irrevocably
authorizes its transfer agent to comply with all such requests or (B) if the Company shall have elected to deposit the Preferred
Shares with a depositary agent under a depositary arrangement, requisition from the depositary agent depositary receipts representing
the number of one one-thousandths (1/1,000ths) of a Preferred Share (as such fraction may be adjusted as provided in this
Rights Agreement) to be purchased (in which case certificates for the Preferred Shares to be represented by such receipts shall
be deposited by the transfer agent with the depositary agent) and the Company shall direct the depositary agent to comply with
all such requests, (ii) when necessary to comply with this Rights Agreement (or otherwise when appropriate, as determined by the
Company with notice to the Rights Agent), requisition from the Company the amount of cash, if any, to be paid in lieu of issuance
of fractional shares in accordance with Section 15, (iii) after receipt of such certificates or depositary receipts, cause the
same to be delivered to or, upon the order of the registered holder of such Right Certificate, registered in such name or names
as may be designated by such holder and (iv) when necessary to comply with this Rights Agreement (or otherwise when appropriate,
as determined by the Company with notice to the Rights Agent), after receipt thereof, deliver such cash, if any, to or upon the
order of the registered holder of such Right Certificate.

 

(d)In case the registered holder of any
Right Certificate shall exercise fewer than all the Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent
to the Rights remaining unexercised shall be issued by the Rights Agent and delivered to the registered holder of such Right Certificate
or to such holder’s duly authorized assigns, subject to the provisions of Section 15.

 

    16

     

    

 

(e)Notwithstanding anything in this Rights
Agreement to the contrary, any Rights that are at any time Beneficially Owned by (i) an Acquiring Person or an Affiliate or Associate
of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any Associate or Affiliate of such Acquiring Person) who
becomes a transferee after the Acquiring Person becomes such (a “Post Transferee”), (iii) a transferee of an
Acquiring Person (or of any Associate or Affiliate of such Acquiring Person) who becomes a transferee prior to or concurrently
with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration)
from the Acquiring Person (or from such Affiliate or Associate) to holders of equity interests in such Acquiring Person or to any
Person with whom the Acquiring Person (or such Affiliate or Associate) has any continuing agreement, arrangement or understanding
(written or oral) regarding the transferred Rights or (B) a transfer which the Board has determined is part of a plan, arrangement
or understanding which has as a primary purpose or effect the avoidance of this Section 7(e) (a “Prior Transferee”),
or (iv) any subsequent transferee receiving transferred Rights from a Post Transferee or a Prior Transferee, either directly or
through one or more intermediate transferees (a “Further Subsequent Transferee”), shall become 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 Rights Agreement or otherwise. The Company shall use all reasonable efforts to ensure that the provisions
of this Section 7(e) are complied with, but shall have no liability to any holder of any Right Certificate or any other Person
as a result of its failure to make any determinations with respect to an Acquiring Person or its Affiliate or Associate, or any
transferee thereof, hereunder.

 

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

 

SECTION
8.      Cancelation and Destruction of Right Certificates.
All Right Certificates surrendered or presented for the purpose of exercise, transfer, split-up, combination or exchange shall,
and any Right Certificate representing Rights that have become null and void and nontransferable pursuant to Section 7(e) surrendered
or presented for any purpose shall, if surrendered or presented to the Company or to any of its agents, be delivered to the Rights
Agent for cancelation or in canceled form, or, if surrendered or presented to the Rights Agent, shall be canceled by it, and no
Right Certificates shall be issued in lieu thereof except as expressly permitted by this Rights Agreement. The Company shall deliver
to the Rights Agent for cancelation and retirement, and the Rights Agent shall so cancel and retire, any Right Certificate purchased
or acquired by the Company. Subject to applicable law and regulation, the Rights Agent shall maintain in a retrievable database
electronic records of all cancelled or destroyed Rights Certificates which have been canceled or destroyed by the Rights Agent.
The Rights Agent shall maintain such electronic records for the term of this Rights Agreement and any additional time period required
by applicable law and regulation. Upon written request of the Company (and at the expense of the Company), the Rights Agent shall
provide to the Company or its designee copies of such electronic records relating to Rights Certificates canceled or destroyed
by the Rights Agent and shall certify to the Company the accuracy of such records.

 

    17

     

    

 

SECTION
9.      Reservation and Availability of Preferred Shares.
(a) The Company shall cause to be reserved and kept available out of its authorized and unissued Preferred Shares (or any authorized
and issued Preferred Shares held in its treasury), free from preemptive rights or any right of first refusal, a number of Preferred
Shares sufficient to permit the exercise in full of all outstanding Rights.

 

(b)If there are not sufficient Preferred
Shares authorized but unissued (or authorized and issued Preferred Shares held by the Company in its treasury) to permit the exercise
of Rights in accordance with this Rights Agreement, the Company shall take all such action as may be necessary to authorize additional
Preferred Shares for issuance upon the exercise of Rights pursuant to this Rights Agreement; provided, however, that if
the Company is unable to cause the authorization of additional Preferred Shares then the Company shall, or, if action by the Company’s
stockholders is necessary to cause such authorization, in lieu of seeking any authorization, the Company may, to the extent necessary
and permitted by applicable law and any agreements or instruments to which it is a party in effect prior to the Distribution Date,
(i) upon surrender of a Right, pay cash equal to the Purchase Price in lieu of issuing Preferred Shares and requiring payment therefor
or (ii) upon due exercise of a Right and payment of the Purchase Price for each Preferred Share as to which such Right is exercised,
distribute cash, Preferred Shares (including fractions thereof), Common Shares (including fractions thereof) or other equity or
debt securities (or any combination of any of the foregoing) having an aggregate value equal to the value of the Preferred Shares
(including fractions thereof) that otherwise would have been issuable pursuant to this Rights Agreement, which value shall be determined
by a nationally recognized investment banking firm selected by the Board. To the extent that any legal or contractual restrictions
(pursuant to agreements or instruments to which it is party in effect prior to the Distribution Date) prevent the Company from
paying the full amount payable in accordance with the foregoing sentence, the Company shall pay to holders of the Rights as to
which such payments are being made all amounts that are not then restricted on a pro rata basis as such payments are or become
permissible under such legal or contractual restrictions until such payments have been paid in full.

 

(c)The Company shall take all actions
as may be necessary to ensure that all Preferred Shares and Common Shares delivered upon exercise or exchange of Rights shall,
at the time of delivery of the certificates for such Preferred Shares and Common Shares (subject to payment of the Purchase Price),
be duly and validly authorized and issued and fully paid and nonassessable shares.

 

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

 

    18

     

    

 

SECTION
10.  Preferred Shares Record Date. Each Person in whose name any certificate
for Preferred Shares or Common Shares or other securities is issued upon the exercise or exchange of Rights shall for all purposes
be deemed to have become the holder of record of the Preferred Shares or Common Shares or other securities, as the case may be,
represented thereby on, and such certificate shall be dated, the date on which the Right Certificate evidencing such Rights was
duly surrendered and payment of any 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 transfer books of the Company for the Preferred Shares or Common
Shares or other securities, as the case may be, are closed, such Person shall be deemed to have become the record holder of such
Preferred Shares or Common Shares or other securities, as the case may be, on, and such certificate shall be dated, the next succeeding
Business Day on which the transfer books of the Company for the Preferred Shares or Common Shares or other securities, as the case
may be, are open.

 

SECTION
11.  Adjustments in Rights After There Is an Acquiring Person; Exchange of
Rights for Shares; Business Combinations. (a) Subject to the other provisions of this Rights Agreement (including Section 7(e)),
upon the occurrence of the Share Acquisition Date, each holder of a Right shall thereafter have a right to receive, upon exercise
thereof for the Purchase Price in accordance with the terms of this Rights Agreement, such number of one one-thousandths (1/1,000ths)
of a Preferred Share (as such fraction may be adjusted as provided in this Rights Agreement) as shall equal the result obtained
by multiplying the Purchase Price by a fraction, the numerator of which is the number of one one-thousandths (1/1,000ths) of a
Preferred Share (as such fraction may be adjusted as provided in this Rights Agreement) for which such Right is then exercisable
and the denominator of which is 50% of the Market Value of the Common Shares on the date on which such Person became an Acquiring
Person.

 

(b) (i)The Board may, at its option,
at any time after the Share Acquisition Date, mandatorily exchange all or part of the then outstanding and exercisable Rights (which
shall not include Rights that shall have become null and void and nontransferable pursuant to Section 7(e)) for consideration per
Right consisting of either (A) one-half of the Preferred Shares (or fractions thereof) that would be issuable at such time upon
the exercise of one Right in accordance with Section 11(a) or (B) cash, Preferred Shares (including fractions thereof), Common
Shares (including fractions thereof) or other equity or debt securities (or any combination of any of the foregoing) having an
aggregate value equal to one-half of the value of Preferred Shares (including fractions thereof) that would be issuable at such
time upon the exercise of one Right in accordance with Section 11(a), which values shall be determined by a nationally recognized
investment banking firm selected by the Board (such consideration in this Section 11(b)(i) being the “Exchange Consideration”).
If the Board elects to exchange all the Rights for Exchange Consideration pursuant to this Section 11(b)(i) prior to the physical
distribution of the Right Certificates, the Company may distribute the Exchange Consideration in lieu of distributing Right Certificates,
in which case for purposes of this Rights Agreement holders of Rights shall be deemed to have simultaneously received and surrendered
for exchange Right Certificates on the date of such distribution. If the Board elects to exchange Rights for Exchange Consideration
consisting all or in part of Preferred Shares, the Company may elect to deposit such Preferred Shares with a depositary agent under
a depositary arrangement, and, in such event the Company shall cause the depositary agent to issue, in lieu of certificates for
such Preferred Shares, depositary receipts representing the number of such Preferred Shares (or fractions thereof) to be exchanged
(in which case the certificates for such Preferred Shares to be represented by such receipts shall be deposited by the transfer
agent with the depositary agent). Notwithstanding the foregoing, the Board may not effect such exchange at any time after any Person
(other than the Company, any Subsidiary of the Company or any employee benefit plan of the Company or any of its Subsidiaries or
any Person holding Common Shares for or pursuant to the terms of any such employee benefit or compensation plan), together with
all Affiliates and Associates of such Person, becomes the Beneficial Owner of more than 50% of the Common Shares then outstanding.

 

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(ii)If the Board elects to mandatorily
exchange any Rights under Section 11(b)(i), the Board may, at its option and without limiting any rights the Company may have under
Section 26, cause the Company to enter into such arrangements or implement such procedures as it deems necessary or appropriate,
in its sole discretion, for the purpose of ensuring that the Exchange Consideration is not received by holders of Rights that have
become null and void pursuant to Section 7(e), including entering into a Trust Agreement in such form and with such terms as the
Board shall then approve (the “Trust Agreement”). If the Board so directs, the Company shall enter into the
Trust Agreement and shall issue to the trust created by such agreement (the “Trust”) all or a portion (as designated
by the Board) of the Exchange Consideration distributable pursuant to the exchange, and all holders of Rights entitled to receive
such Exchange Consideration pursuant to the exchange shall be entitled to receive such Exchange Consideration (and any dividends
paid or distributions made with respect to any securities constituting such Exchange Consideration after the date on which such
securities are deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of
the Trust Agreement. Prior to effecting an exchange and distributing such Exchange Consideration, the Company may require (or cause
the trustee of the Trust to require), as a condition thereof, that any holder of Rights provide evidence, including the identity
of the Beneficial Owners thereof and their Affiliates and Associates (or former Beneficial Owners thereof and their Affiliates
and Associates) as the Company shall reasonably request in order to determine if such Rights are null and void. If any Person shall
fail to comply with such request, the Company shall be entitled conclusively to deem the Rights formerly held by such Person to
be null and void pursuant to Section 7(e) hereof and not transferable, exercisable or exchangeable in connection herewith. Any
securities issued at the direction of the Board in connection herewith shall be validly issued, fully paid and nonassessable securities,
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 securities so issued.

 

(iii)Any action of the Board ordering
the exchange of any Rights pursuant to Section 11(b)(i) shall be irrevocable and, immediately upon the taking of such action and
without any further action and without any notice, the right to exercise any such Right so exchanged pursuant to Section 11(a)
shall terminate and the only right thereafter of a holder of such Right shall be to receive the Exchange Consideration in exchange
for each such Right held by such holder or, if the Exchange Consideration shall not have been paid or issued, to exercise any such
Right pursuant to Section 11(c)(i). 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. The Company shall promptly
mail a notice of any such exchange to all holders of the Rights to be exchanged at their last addresses as they appear upon the
registry books of the Rights Agent. Any notice which is mailed 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 the Rights
for the Exchange Consideration will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged.
Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which shall have become null and
void and nontransferable pursuant to the provisions of Section 7(e)) held by each holder of Rights.

 

    20

     

    

 

(c) (i)In the event that, directly or
indirectly, any transactions specified in the following clause (A) or (B) of this Section 11(c)(i) (each such transaction being
a “Business Combination”) shall be consummated:

 

A.               
the Company shall consolidate with, merge with and into, or effect a share exchange with any Acquiring Person or
any Affiliate or Associate of an Acquiring Person, any Acquiring Person or any Affiliate or Associate of an Acquiring Person shall
merge with and into the Company or the Company shall otherwise effect any business combination or similar transaction with any
Acquiring Person or any Affiliate or Associate of an Acquiring Person;

 

B.                
the Company shall sell, lease, exchange or otherwise transfer or dispose of (or one or more of its Subsidiaries shall
sell, lease, exchange or otherwise transfer or dispose of), in one or more transactions, the Major Part of the assets of the Company
and its Subsidiaries to any Acquiring Person or any Affiliate or Associate of an Acquiring Person, then, in each such case, proper
provision shall be made so that each holder of a Right, except as provided in Section 7(e), shall thereafter have the right
to receive, upon the exercise thereof for the Purchase Price in accordance with the terms of this Rights Agreement, the securities
specified below (or, at such holder’s option, the securities specified in Section 11(a) if the Company is the surviving corporation
in such Business Combination):

 

(1)              
if the Principal Party in such Business Combination has Registered Common Shares outstanding, each Right shall thereafter
represent the right to receive, upon the exercise thereof for the Purchase Price in accordance with the terms of this Rights Agreement,
such number of Registered Common Shares of such Principal Party, free and clear of all liens, encumbrances or other adverse claims,
as shall have an aggregate Market Value as of the time of exercise thereof equal to the result obtained by multiplying the Purchase
Price by two;

 

(2)              
if the Principal Party in such Business Combination does not have Registered Common Shares outstanding, each Right
shall thereafter represent the right to receive, upon the exercise thereof for the Purchase Price in accordance with the terms
of this Rights Agreement, at the election of the holder of such Right at the time of the exercise thereof, any of:

 

    21

     

    

 

(i)                
if the Principal Party in such Business Combination has Common Shares listed or admitted to trading on any recognized
foreign stock exchange, such number of Common Shares of such Principal Party, free and clear of all liens, encumbrances or other
adverse claims, as shall have an aggregate Market Value as of the time of exercise thereof equal to the result obtained by multiplying
the Purchase Price by two;

 

(ii)             
such number of Common Shares of the Surviving Person in such Business Combination (if the Principal Party is also
the Surviving Person in such Business Combination) as shall have an aggregate Book Value immediately after giving effect to such
Business Combination equal to the result obtained by multiplying the Purchase Price by two;

 

(iii)           
such number of Common Shares of the Principal Party in such Business Combination (if the Principal Party is not also
the Surviving Person in such Business Combination) as shall have an aggregate Book Value immediately after giving effect to such
Business Combination equal to the result obtained by multiplying the Purchase Price by two; or

 

(iv)            
if the Principal Party in such Business Combination is an Affiliate of one or more Persons that has Registered Common
Shares outstanding, such number of Registered Common Shares of whichever of such Affiliates of the Principal Party has Registered
Common Shares with the greatest aggregate Market Value on the date of consummation of such Business Combination as shall have an
aggregate Market Value on the date of such Business Combination equal to the result obtained by multiplying the Purchase Price
by two.

 

(ii)             
The Company shall not consummate any Business Combination unless each issuer of Common Shares for which Rights may
be exercised, as set forth in this Section 11(c), shall have sufficient authorized Common Shares that have not been issued or reserved
for issuance (and which shall, when issued upon exercise thereof in accordance with this Rights Agreement, be validly issued, fully
paid and nonassessable and free of preemptive rights, rights of first refusal or any other restrictions or limitations on the transfer
or ownership thereof) to permit the exercise in full of the Rights in accordance with this Section 11(c) and unless prior thereto:

 

A.               
a registration statement under the Securities Act on an appropriate form, with respect to the Rights and the Common
Shares of such issuer purchasable upon exercise of the Rights, shall be effective under the Securities Act; and

 

B.                
the Company and each such issuer shall have:

 

(1)              
executed and delivered to the Rights Agent a supplemental agreement providing for the assumption by such issuer of
the obligations set forth in this Section 11(c) (including the obligation of such issuer to issue Common Shares upon the exercise
of Rights in accordance with the terms set forth in Sections 11(c)(i) and 11(c)(iii)) and further providing that such issuer, at
its own expense, shall use its best efforts to:

 

    22

     

    

 

(i)                
cause a registration statement under the Securities Act on an appropriate form, with respect to the Rights and the
Common Shares of such issuer purchasable upon exercise of the Rights, to remain effective (with a prospectus at all times meeting
the requirements of the Securities Act) until the Expiration Date;

 

(ii)             
qualify or register the Rights and the Common Shares of such issuer purchasable upon exercise of the Rights under
the blue sky or securities laws of such jurisdictions as may be necessary or appropriate; and

 

(iii)           
list the Rights and the Common Shares of such issuer purchasable upon exercise of the Rights on each national securities
exchange on which the Common Shares were listed prior to the consummation of the Business Combination or, if the Common Shares
were not listed on a national securities exchange prior to the consummation of the Business Combination, on a national securities
exchange;

 

(2)              
furnished to the Rights Agent a written opinion of independent counsel stating that such supplemental agreement is
a valid, binding and enforceable agreement of such issuer; and

 

(3)              
filed with the Rights Agent a certificate of a nationally recognized firm of independent accountants setting forth
the number of Common Shares of such issuer that may be purchased upon the exercise of each Right after the consummation of such
Business Combination.

 

(iii)           
After consummation of any Business Combination, (A) each issuer of Common Shares for which Rights may be exercised
as set forth in this Section 11(c) shall be liable for, and shall assume, by virtue of such Business Combination, all the obligations
and duties of the Company pursuant to this Rights Agreement, (B) the term “Company” shall thereafter be deemed
to refer to such issuer, (C) each such issuer shall take such steps in connection with such consummation as may be necessary to
assure that the provisions of this Rights Agreement (including Sections 11(a) and 11(c)) shall thereafter be applicable, as nearly
as reasonably may be, in relation to its Common Shares thereafter deliverable upon the exercise of the Rights, (D) the number of
Common Shares of each such issuer thereafter receivable upon exercise of any Right shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the provisions of Sections 11 and 12 and (E) the other provisions
of this Rights Agreement (including Sections 7, 9 and 10) with respect to the Preferred Shares shall apply, as nearly as reasonably
may be, on like terms to any such Common Shares.

 

SECTION
12.  Certain Adjustments. (a) To preserve the actual or potential economic
value of the Rights, if at any time after the date of this Rights Agreement there shall be any change in the Common Shares or the
Preferred Shares, including any change in the number of Common Shares or Preferred Shares outstanding, whether by reason of stock
dividends, stock splits, reclassifications, recapitalizations, mergers, consolidations, combinations or exchanges of securities,
split-ups, split-offs, spin-offs, liquidations, other similar changes in capitalization, any distribution or issuance of cash,
assets, evidences of indebtedness or subscription rights, options or warrants to holders of Common Shares, or Preferred Shares,
as the case may be (other than distribution of the Rights or regular quarterly cash dividends), or otherwise, then, in each such
event the Board shall make such appropriate adjustments in the number of Preferred Shares (or the number and kind of other securities)
issuable upon exercise of each Right, the Purchase Price and Redemption Price in effect at such time and the number of Rights outstanding
at such time (including the number of Rights or fractional Rights associated with each Common Share) such that following such adjustment
such event shall not have had the effect of reducing or limiting the benefits the holders of the Rights would have had absent such
event.

 

    23

     

    

 

(b)If, as a result of an adjustment made
pursuant to Section 12(a), the holder of any Right thereafter exercised shall become entitled to receive any securities other than
Preferred Shares, thereafter the number of such securities so receivable upon exercise of any Right shall be subject to adjustment
from time to time in a manner and on terms as nearly equivalent as practicable to the provisions of Sections 11 and 12 and the
other provisions of this Rights Agreement (including Sections 7, 9 and 10) with respect to the Preferred Shares shall apply, as
nearly as reasonably may be, on like terms to any such other securities.

 

(c)All Rights originally issued by the
Company subsequent to any adjustment made to the amount of Preferred Shares or other securities relating to a Right shall evidence
the right to purchase, for the Purchase Price, the adjusted number and kind of securities purchasable from time to time hereunder
upon exercise of the Rights, all subject to further adjustment as provided in this Rights Agreement.

 

(d)Irrespective of any adjustment or change
in the Purchase Price or the number of Preferred Shares or number or kind of other securities issuable upon the exercise of the
Rights, the Right Certificates theretofore and thereafter issued may continue to express the terms that were expressed in the initial
Right Certificates issued hereunder.

 

(e)In any case in which action taken pursuant
to Section 12(a) requires that an adjustment be made effective as of a record date for a specified event, the Company may elect
to defer until the occurrence of such event the issuing to the holder of any Right exercised after such record date the Preferred
Shares and/or other securities, if any, issuable upon such exercise over and above the Preferred Shares and/or other securities,
if any, issuable before giving effect 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 securities upon the
occurrence of the event requiring such adjustment.

 

SECTION
13.  Certificate of Adjustment. Whenever an adjustment is made or any event
occurs affecting the Rights or their exercisability (including an event which causes the Rights to become null and void) as provided
in Section 11 or 12, the Company shall (a) promptly prepare a certificate setting forth such adjustment or describing such event
and a brief, reasonably detailed statement of the facts, computations and methodology accounting for such adjustment, (b) promptly
file with the Rights Agent and with each transfer agent for the Preferred Shares, a copy of such certificate and (c) mail a brief
summary thereof to each holder of a Right Certificate (or, if prior to the Distribution Date, to each holder of Common Shares)
in accordance with Section 25, provided that the failure to prepare, file or mail such certificate or summary shall not
affect the validity of such adjustment. The Rights Agent shall be fully protected and indemnified by the Company for any and all
losses, liabilities or costs, of any nature, incurred in relying on any such certificate and on any adjustment therein contained.

 

    24

     

    

 

SECTION
14.  Additional Covenants. (a) Notwithstanding any other provision of this
Rights Agreement, no adjustment to the number of Preferred Shares (or fractions of a share) or other securities for which a Right
is exercisable or the number of Rights outstanding or associated with each Common Share or any similar or other adjustment shall
be made or be effective if such adjustment would have the effect of reducing or limiting the benefits the holders of the Rights
would have had absent such adjustment, including the benefits under Sections 11 and 12, unless the terms of this Rights Agreement
are amended so as to preserve such benefits.

 

(b)The Company covenants and agrees that,
after the Distribution Date, except as permitted by Section 26, it shall not take (or permit any Subsidiary of the Company to take)
any action if at the time such action is taken it is intended or reasonably foreseeable that such action will reduce or otherwise
limit the benefits the holders of Rights would have had absent such action, including the benefits under Sections 11 and 12. Any
action taken by the Company during any period after any Person becomes an Acquiring Person but prior to the Distribution Date shall
be null and void unless such action could be taken under this Section 14(b) from and after the Distribution Date. The Company shall
not consummate any Business Combination if any issuer of Common Shares for which Rights may be exercised after such Business Combination
in accordance with Section 11(c) shall have taken any action that reduces or otherwise limits the benefits the holders of Rights
would have had absent such action, including the benefits under Sections 11 and 12.

 

SECTION
15.  Fractional Rights and Fractional Shares. (a) The Company may, but
shall not be required to, issue fractions of Rights or distribute Right Certificates which evidence fractional Rights. In lieu
of such fractional Rights, the Company may pay to the registered holders of the Right Certificates with regard to which such fractional
Rights would otherwise be issuable an amount in cash equal to the same fraction of the current market value of a whole Right. For
purposes of this Section 15(a), the current market value of a whole Right shall be the closing price of the Rights (as determined
pursuant to the second sentence of the definition of Market Value contained in Section 1) for the Trading Day immediately prior
to the date on which such fractional Rights would have been otherwise issuable.

 

(b)With respect to one one-thousandths
(1/1,000ths) of a Preferred Share (as such fraction may be adjusted as provided in this Rights Agreement), or any integral
multiple thereof, represented by one or more whole Rights immediately prior to their exercise, the Company shall be required and,
with respect to other fractions of a Preferred Share the Company may, but shall not be required, to (i) issue fractions of Preferred
Shares upon exercise of the Rights or distribute certificates that evidence such fractional Preferred Shares or (ii) utilize a
depositary arrangement as provided by the terms of this Rights Agreement and the Preferred Shares. Except with respect to
one one-thousandths (1/1,000ths) of a Preferred Share (as such fraction may be adjusted as provided in this Rights Agreement),
or any integral multiple thereof, represented by one or more whole Rights immediately prior to their exercise, the Company, in
lieu of issuing fractional shares, may elect to pay to the registered holders of Right Certificates at the time such Rights are
exercised as herein provided an amount in cash equal to the same fraction of the current market value of one Preferred Share,
if any are outstanding and publicly traded (or the same fraction of the current market value of one Common Share times the Formula
Number (as defined in the Certificate of Designation) if the Preferred Shares are not outstanding and publicly traded). For purposes
of this Section 15(b), the current market value of a Preferred Share (or Common Share) shall be the closing price of a Preferred
Share (or Common Share) (as determined pursuant to the second sentence of the definition of Market Value contained in Section 1)
for the Trading Day immediately prior to the date of such exercise. If, as a result of an adjustment made pursuant to Section 12(a),
the holder of any Right thereafter exercised shall become entitled to receive any securities other than Preferred Shares, the provisions
of this Section 15(b) shall apply, as nearly as reasonably practicable, on like terms to such other securities.

 

    25

     

    

 

(c)The Company may, but shall not be required
to, issue fractions of Common Shares upon exchange of Rights pursuant to Section 11(b), or to distribute certificates that evidence
fractional Common Shares. In lieu of such fractional Common Shares, the Company may pay to the registered holders of the Right
Certificates with regard to which such fractional Common Shares would otherwise be issuable an amount in cash equal to the same
fraction of the current Market Value of one Common Share as of the date on which a Person became an Acquiring Person.

 

(d)Each holder of Rights by the acceptance
of such Rights expressly waives such holder’s right to receive any fractional Rights or any fractional shares upon exercise
of a Right except as provided in this Section 15.

 

SECTION
16.  Rights of Action. (a) All rights of action in respect of this Rights
Agreement, excepting the rights of action given to the Rights Agent under Sections 19 and 21, are vested in the respective registered
holders of the Right Certificates (and, prior to the Distribution Date, the registered holders of the Common Shares); and any registered
holder of any Right Certificate (or, prior to the Distribution Date, of the Common Shares), without the consent of the Rights Agent
or of the holder of any other Right Certificate (or, prior to the Distribution Date, of the Common Shares) may, on such holder’s
own behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action or proceeding against
the Company to enforce, or otherwise act in respect of, such holder’s right to exercise the Rights evidenced by such Right
Certificate in the manner provided in such Right Certificate and in this Rights 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 Rights Agreement and shall be entitled to specific performance of the obligations
of any Person under, and injunctive relief against actual or threatened violations of the obligations of any Person subject to,
this Rights Agreement. Notwithstanding anything in this Rights Agreement to the contrary, the Company shall not have any liability
to any holder of a Right or other Person as a result of its inability to perform any of its obligations under this Rights Agreement
by reason of any preliminary or permanent injunction or other order, judgment, decree or ruling (whether interlocutory or final)
issued by a court of competent jurisdiction or by a governmental, regulatory, self-regulatory or administrative agency or commission,
or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise
restraining performance of such obligation; provided, however, the Company must use reasonable efforts to have any such
injunction, order, judgment, decree or ruling lifted or otherwise overturned as soon as possible.

 

    26

     

    

 

(b)Any holder of Rights who prevails in
an action to enforce the provisions of this Rights Agreement shall be entitled to recover the reasonable costs and expenses, including
attorneys’ fees, incurred in such action.

 

SECTION
17.  Transfer and Ownership of Rights and Right Certificates. (a) Prior
to the Distribution Date, the Rights shall be transferable only in connection with the transfer of the Common Shares and the Right
associated with each such Common Share shall be automatically transferred upon the transfer of each such Common Share.

 

(b)After the Distribution Date, the Right
Certificates shall be transferable, subject to Section 7(e), only on the registry books of the Rights Agent if surrendered at the
principal office of the Rights Agent, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate
forms and certificates properly completed and duly executed.

 

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

 

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

 

SECTION
19.  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 and counsel fees and other disbursements incurred in the administration and execution of this Rights
Agreement and the exercise and performance of its duties hereunder, including any taxes or governmental charges imposed as a result
of the action taken by it hereunder (other than any taxes on the fees payable to it).

 

(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 acceptance
and administration of this Rights Agreement and the exercise and performance of its duties hereunder in reliance upon any Right
Certificate or certificate for the Common Shares, 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 be signed, executed and, where necessary, verified, guaranteed or acknowledged, by the proper
Person or Persons.

 

    27

     

    

 

(c)The provisions of this Section 19 and
Section 21 hereof shall survive the termination of this Rights Agreement, the exercise or expiration of the Rights and the resignation,
replacement or removal of the Rights Agent.

 

SECTION
20.  Merger or Consolidation or Change of Rights Agent. (a) Any Person
into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting
from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding
to the corporate trust or stockholder services business of the Rights Agent or any successor Rights Agent, shall be the successor
to the Rights Agent under this Rights Agreement without the execution or filing of any paper or any further act on the part of
any of the parties hereto; provided, however, that such Person would be eligible for appointment as a successor Rights Agent
under the provisions of Section 22. In case, at the time such successor Rights Agent shall succeed to the agency created by this
Rights Agreement, any of the Right Certificates shall have been countersigned but not delivered, any such successor Rights Agent
may adopt the countersignature of the predecessor Rights Agent and deliver such Right Certificates so countersigned; and, in case
at that time any of the Right Certificates shall not have been countersigned, any successor Rights Agent may countersign such Right
Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases
such Right Certificates shall have the full force provided in the Right Certificates and in this Rights Agreement.

 

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

 

SECTION
21.  Duties of Rights Agent. The Rights Agent undertakes to perform the
duties and obligations imposed by this Rights Agreement upon the following terms and conditions, by all of which the Company and
the holders of Right Certificates (or, prior to the Distribution Date, of the Common Shares), 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 written advice
or opinion of such counsel shall be full and complete authorization and protection to the Rights Agent as to any action taken,
suffered or omitted by it in good faith and in accordance with such opinion.

 

    28

     

    

 

(b)              
Whenever in the performance of its duties under this Rights Agreement the Rights Agent shall deem it necessary or
desirable that any fact or matter (including the identity of any Acquiring Person) be proved or established by the Company prior
to taking, suffering or omitting to take any action hereunder, such fact or matter (unless other evidence in respect thereof shall
be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by the Chairman
of the Board, the Chief Executive Officer, the President or 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, suffered or omitted by it in good faith under
the provisions of this Rights Agreement in reliance upon such certificate.

 

(c)              
The Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence,
bad faith or intentional misconduct (which gross negligence, bad faith or intentional misconduct must be determined by a final
order, judgment, decree or ruling of a court of competent jurisdiction). Notwithstanding anything in this Rights Agreement to the
contrary, in no event will the Rights Agent be liable for special, indirect or consequential loss or damage of any kind whatsoever
(including, but not limited to, lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damages
and regardless of the form of action.

 

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

 

(e)              
The Rights Agent shall not be under any responsibility in respect of the validity of this Rights Agreement or the
execution and delivery hereof (except the due execution and delivery hereof by the Rights Agent) or in respect of the validity
or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for any breach by the
Company of any covenant or condition contained in this Rights Agreement or in any Right Certificate; nor shall it be responsible
for any adjustment required under the provisions of Section 11 or 12 or responsible for the manner, method or amount of any such
adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise
of Rights evidenced by Right Certificates after actual notice of any such adjustment); nor shall it by any act hereunder be deemed
to make any representation or warranty as to the authorization or reservation of any Preferred Shares or Common Shares to be issued
pursuant to this Rights Agreement or any Right Certificate or as to whether any Preferred Shares or Common Shares will, when so
issued, be validly authorized and issued, fully paid and nonassessable.

 

(f)               
The Company agrees that it shall perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged
and delivered all such further and other acts, instruments and assurances as may reasonably be required by the Rights Agent for
the carrying out or performing by the Rights Agent of the provisions of this Rights 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 Chief Executive Officer, the President or Secretary of the Company of the
Company in connection with its duties and it shall not be liable for any action taken, suffered or omitted by it in good faith
in accordance with instructions of any such instruction.

 

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(h)              
The Rights Agent and any stockholder, member, affiliate, 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 or its Subsidiaries may be interested, or contract with or lend money to the Company or its Subsidiaries or otherwise
act as fully and freely as though it were not the Rights Agent under this Rights Agreement. Nothing herein shall preclude the Rights
Agent or any stockholder, member, affiliate, director, officer or employee from acting in any other capacity for the Company or
for any other Person.

 

(i)                
If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate
contained in the form of assignment or the form of election to purchase set forth on the reverse thereof, as the case may be, has
either not been properly completed, the certification set forth therein has been altered or any other change to such form has been
made (other than with respect to the information that the form requires the executor thereof to furnish in the blank spaces provided
for such purpose), the Rights Agent shall not take any further action with respect to such requested exercise or transfer without
first consulting with the Company.

 

(j)                
The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder
either itself or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act
or for any loss to the Company resulting from any such act, default, neglect or misconduct of any such attorneys or agents; provided
that reasonable care was exercised.

 

(k)              
The Company shall indemnify the Rights Agent for, and hold the Rights Agent harmless against, any loss, liability,
damage, judgment, fine, penalty, claim demand, settlement, cost or expense (including reasonable fees and expenses of legal counsel)
that the Rights Agent may incur resulting from its actions as Rights Agent pursuant to this Rights Agreement, including the costs
and reasonable expenses of defending against any claim of liability and the costs and reasonable expense of enforcing this right
of indemnification; provided, however, that the Rights Agent shall not be indemnified or held harmless with respect to any
such loss, liability, damage, judgment, fine, penalty, claim demand, settlement, cost or expense incurred by the Rights Agent as
a result of, or arising out of, its own gross negligence, bad faith or intentional misconduct (each as determined by a final judgment
of a court of competent jurisdiction). In no case shall the Company be liable with respect to any action, proceeding, suit or claim
against the Rights Agent unless the Rights Agent shall have notified the Company of the assertion of any action, proceeding, suit
or claim against the Rights Agent, promptly after the Rights, provided, however, that failure by the Rights Agent to provide such
notice shall not relieve the Company of any liability hereunder if no prejudice occurs.

 

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(l)                
Agent shall have notice of any such assertion of an action, proceeding, suit or claim or have been served with the
summons or other first legal process giving information as to the nature and basis of the action, proceeding, suit or claim. The
Company shall be entitled to participate at its own expense in the defense of any such action, proceeding, suit or claim, and,
if the Company so elects, the Company shall assume the defense of any such action, proceeding, suit or claim. In no event shall
the Company agree to settle any litigation to which the Rights Agent is a party without the prior written consent of the Rights
Agent, which consent shall not be unreasonably withheld. In the event that the Company assumes such defense, the Company shall
not thereafter be liable for the fees and expenses of any additional counsel retained by the Rights Agent, so long as the Company
shall retain counsel satisfactory to the Rights Agent, in the exercise of its reasonable judgment, to defend such action, proceeding,
suit or claim. The Rights Agent agrees not to settle any litigation in connection with any action, proceeding, suit or claim with
respect to which it may seek indemnification from the Company without the prior written consent of the Company.

 

SECTION
22.  Change of Rights Agent. The Rights Agent or any successor Rights Agent
may resign and be discharged from its duties under this Rights Agreement upon 30 days’ notice in writing mailed to the Company
and, in the event that the Rights Agent or one of its Affiliates is not also the transfer agent for the Company, to each transfer
agent of the Common Shares and the Preferred Shares, in each case by registered or certified mail. In the event the transfer agency
relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned automatically
and be discharged from its duties under this Rights Agreement as of the effective date of such termination, and the Company shall
be responsible for providing notice of such resignation to each transfer agent of the Common Shares and the Preferred Shares. The
Company may remove the Rights Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent
or successor Rights Agent, as the case may be, and to each transfer agent of the Common Shares and the Preferred Shares by registered
or certified mail, and to the holders of the Right Certificates (or, prior to the Distribution Date, of the Common Shares) by first-class
mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a
successor to the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after giving notice
of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights
Agent, then the registered holder of any Right Certificate (or, prior to the Distribution Date, of the Common Shares) 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 Person organized and doing business under the laws of the United States or of
the State of New York (or of any other state of the United States so long as such entity is authorized to do business as a banking
institution in the State of New York), in good standing, which is authorized under such laws to exercise corporate trust or stockholder
services powers and is subject to supervision or examination by Federal or state authority and which has at the time of its appointment
as Rights Agent a combined capital and surplus of at least $50,000,000 or (b) any Affiliate of a Person described in clause (a)
of this sentence. After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities
as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver
and transfer to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance,
conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall
mail notice thereof in writing to the predecessor Rights Agent and each transfer agent of the Common Shares and the Preferred Shares,
and mail a notice thereof in writing to the registered holders of the Right Certificates (or, prior to the Distribution Date, of
the Common Shares). Failure to give any notice provided for in this Section 22, however, or any defect therein shall not
affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent,
as the case may be.

 

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SECTION
23.  Issuance of Additional Rights and Right Certificates. Notwithstanding
any of the provisions of this Rights Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right
Certificates evidencing Rights in such form as may be approved by the Board to reflect any adjustment or change made in accordance
with the provisions of this Rights Agreement. In addition, in connection with the issuance or sale of Common Shares following the
Distribution Date and prior to the earlier of the Redemption Date and the Expiration Date, the Company (a) shall, with respect
to Common Shares so issued, granted or sold pursuant to the exercise of stock options or under any employee plan or arrangement
(whether or not subject to vesting or other restrictions), or upon the exercise, conversion or exchange of securities, notes or
debentures issued by the Company, and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue Right
Certificates representing the appropriate number of Rights in connection with such issuance or sale; provided, however,
that (i) no such Right 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 Right Certificate
would be issued, (ii) no such Right Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise
have been made in lieu of the issuance thereof and (iii) no such Right Certificate shall be issued to an Acquiring Person or an
Affiliate or Associate of an Acquiring Person.

 

SECTION
24.  Redemption and Termination. (a) The Board may, at its option, at any
time prior to the earlier of (i) the Share Acquisition Date and (ii) the Expiration Date, order the redemption of all, but not
fewer than all, the then outstanding Rights at the Redemption Price (the date of such redemption being the “Redemption
Date”), and the Company, at its option, may pay the Redemption Price either in cash or Common Shares or other securities
of the Company deemed by the Board, in the exercise of its sole discretion, to be at least equivalent in value to the Redemption
Price.

 

(b)Immediately upon the action of the
Board ordering the redemption of the Rights, 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. Promptly after
the action of the Board 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 by mailing such notice to all such holders at their last addresses as they appear
upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for
the Common Shares. Each such notice of redemption shall state the method by which payment of the Redemption Price will be made.
The notice, if mailed in the manner herein provided, shall be conclusively presumed to have been duly given, whether or
not the holder of Rights receives such notice. In any case, failure to give such notice by mail, or any defect in the notice, to
any particular holder of Rights shall not affect the sufficiency of the notice to other holders of Rights. Neither the Company
nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner except as
specifically set forth in this Section or in Section 11(b) or in connection with the purchase of Common Shares prior to the Distribution
Date.

 

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

 

Vringo, Inc.

780 Third Avenue, 12th Floor

New York, NY 10017

 

Attention: Chief Executive Officer

 

Subject to the provisions of Section 22, any notice or demand
authorized by this Rights Agreement to be given or made by the Company or by the holder of a Right Certificate (or, prior to the
Distribution Date, of the Common Shares) to or on the Rights Agent shall be sufficiently given or made if sent by overnight delivery
service or first-class mail, postage-prepaid, addressed (until another address is filed in writing with the Company) as follows:

 

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

 

Attention: Client Services

 

Notices or demands authorized by this Rights Agreement to be
given or made by the Company or the Rights Agent to any holder of a Right Certificate (or, prior to the Distribution Date, of the
Common Shares) 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 Common Shares.

 

SECTION
26.  Supplements and Amendments. At any time prior to the Distribution
Date, and subject to the last sentence of this Section 26, the Company may, and the Rights Agent shall if the Company so directs,
supplement or amend any provision of this Rights Agreement in any manner which the Company may deem necessary or desirable (including
the date on which the Distribution Date shall occur, the amount of the Purchase Price, the definition of “Acquiring Person”
or the time during which the Rights may be redeemed pursuant to Section 24) without the approval of any holder of the Rights.
From and after the Distribution Date, and subject to applicable law, the Company may, and the Rights Agent shall if the Company
so directs, amend this Rights Agreement without the approval of any holders of Right Certificates only (a) to cure any ambiguity
or to correct or supplement any provision contained herein which may be defective or inconsistent with any other provision of this
Rights Agreement or (b) to otherwise change or supplement any other provisions in this Rights Agreement in any manner which
the Company may deem necessary or desirable and which does not adversely affect the interests of the holders of Right Certificates
(other than an Acquiring Person, an Affiliate or Associate of an Acquiring Person, a Post Transferee, a Prior Transferee or a Further
Subsequent Transferee). Any supplement or amendment adopted during any period after any Person has become an Acquiring Person but
prior to the Distribution Date shall be null and void unless such supplement or amendment could have been adopted under the prior
sentence from and after the Distribution Date. All supplements and amendments shall be in writing and must be authorized by the
Board. Upon the delivery of a certificate from the Chairman of the Board, the Chief Executive Officer, the President or Secretary
of the Company 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; provided, that the Rights Agent may, but shall not be obligated to, enter
into any supplement or amendment that affects the Rights Agent’s own rights, duties, obligations or immunities under this
Agreement. In addition, notwithstanding anything to the contrary contained in this Rights Agreement, no supplement or amendment
to this Rights Agreement shall be made which reduces the Redemption Price (except as required by Section 12(a)) or extends
the Expiration Date.

 

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

 

SECTION
28.  Benefits of Rights Agreement; Determinations and Actions by the Board,
etc. (a) Nothing in this Rights Agreement shall be construed to give to any Person other than the Company, the Rights Agent
and the registered holders of the Right Certificates (and, prior to the Distribution Date, of the Common Shares) any legal or equitable
right, remedy or claim under this Rights Agreement; but this Rights Agreement shall be for the sole and exclusive benefit of the
Company, the Rights Agent and the registered holders of the Right Certificates (and, prior to the Distribution Date, of the Common
Shares).

 

(b)Except as explicitly otherwise provided
in this Rights Agreement, the Board shall have the exclusive power and authority to administer this Rights Agreement and to exercise
all rights and powers specifically granted to the Board or to the Company, or as may be necessary or advisable, in the administration
of this Rights Agreement, including the right and power to (i) interpret the provisions of this Rights Agreement and (ii) make
all determinations deemed necessary or advisable for the administration of this Rights Agreement (including a determination to
redeem or not redeem the Rights or to amend this Rights Agreement and a determination of whether there is an Acquiring Person).
For all purposes of this Rights Agreement, any calculation of the number of Common Shares outstanding at any particular time, including
for purposes of determining the particular percentage of such outstanding Common Shares of which any Person is the Beneficial Owner,
will be made in accordance with, as the Board deems to be applicable, the last sentence of Rule 13d-3(d)(1)(i) of the General Rules
and Regulations under the Exchange Act or the provisions of Section 382.

 

(c)Nothing contained in this Rights Agreement
shall be deemed to be in derogation of the obligation of the Board to exercise its fiduciary duty. Without limiting the foregoing,
nothing contained herein shall be construed to suggest or imply that the Board shall not be entitled to reject any tender offer
or other acquisition proposal, or to recommend that holders of Common Shares reject any tender offer or other acquisition proposal,
or to take any other action (including the commencement, prosecution, defense or settlement of any litigation and the submission
of additional or alternative offers or other proposals) with respect to any tender offer or other acquisition proposal that the
Board believes is necessary or appropriate in the exercise of such fiduciary duty.

 

    34

     

    

 

SECTION
29.  Process to Seek Exemption. Any Person who desires to effect any acquisition
of securities that would, if consummated, result in such Person becoming an Acquiring Person (a “Requesting Person”)
may, prior to such time and in accordance with this Section 29, request that the Board grant an exemption with respect to such
acquisition under this Rights Agreement so that such Person would be deemed to be an “Exempt Person” as defined in
Section 1 for purposes of this Rights Agreement (an “Exemption Request”). An Exemption Request shall be in proper
form and shall be delivered by overnight delivery service or first-class mail, postage-prepaid, to the Secretary of the Company
at the principal executive office of the Company. The Exemption Request shall be deemed made upon receipt by the Secretary of the
Company. To be in proper form, an Exemption Request shall set forth (a) the name and address of the Requesting Person, (b) the
number and percentage of Common Shares then Beneficially Owned by the Requesting Person, together with all Affiliates and Associates
of the Requesting Person, and (c) a reasonably detailed description of the transaction or transactions by which the Requesting
Person would propose to become an Acquiring Person and the maximum number and percentage of Common Shares that the Requesting Person
proposes to acquire. The Board shall make a determination whether to grant an exemption in response to an Exemption Request as
promptly as practicable (and, in any event, within ten Business Days) after receipt thereof; provided, that the failure
of the Board to make a determination within such period shall be deemed to constitute the denial by the Board of the Exemption
Request. The Requesting Person shall respond promptly to reasonable and appropriate requests for additional information from the
Board and its advisors to assist the Board in making its determination. The Board shall only grant an exemption in response to
an Exemption Request if the Board determines in its sole discretion that the acquisition of Beneficial Ownership of Common Shares
by the Requesting Person, considered alone or with other transactions (including past transactions or contemplated transactions),
(i) will not jeopardize or endanger the availability to the Company of its NOLs or other Tax Benefits, taking into account all
relevant facts and circumstances, including the potential for the Company to issue a reasonable amount of equity in the future
without jeopardizing the availability of its NOLs and other Tax Benefits or (ii) is otherwise in the best interests of the Company.
Any exemption granted hereunder may be granted in whole or in part, and may be subject to limitations or conditions (including
a requirement that the Requesting Person agree that it will not acquire Beneficial Ownership of Common Shares in excess of the
maximum number and percentage of shares approved by the Board), in each case as and to the extent the Board shall determine necessary
or desirable to provide for the protection of the NOLs and other Tax Benefits or as is otherwise in the best interests of the Company.
Any Exemption Request may be submitted on a confidential basis and, except to the extent required by applicable law, the Company
shall maintain the confidentiality of such Exemption Request and the Board’s determination with respect thereto, unless the
information contained in the Exemption Request or the Board’s determination with respect thereto otherwise becomes publicly
available. The Exemption Request shall be considered and evaluated by the Board, or a duly constituted committee of Independent
Directors, and the action of a majority of such directors (or such committee) shall be deemed to be the determination of the Board
for purposes of such Exemption Request.

 

    35

     

    

 

SECTION
30.  Tax Benefits Review. In addition to the review and evaluation otherwise
contemplated by this Rights Agreement, the Board, or a duly constituted committee of Independent Directors, shall review the calculation
for determining whether an ownership change has occurred under Section 382 once per year (or with such greater frequency as the
Board (or any such committee), in its sole discretion, shall determine is advisable). The Board shall determine after such review
whether maintenance of this Rights Agreement continues to be advisable in order to preserve the value of the NOLs and other Tax
Benefits, taking into account all the relevant facts and circumstances, including the potential for the Company to issue a reasonable
amount of equity in the future without jeopardizing the availability of the NOLs and other Tax Benefits, the potential value of
the NOLs and other Tax Benefits even after an ownership change under Section 382 based upon the price of the Company’s Common
Shares at such time or based upon changes in the Company’s projected taxable income during any future period and potential
opportunities to monetize the NOLs through one or more inter-company sales or other transactions that increase the depreciable
basis of the Company’s assets.

 

SECTION
31.  Severability. If any term, provision, covenant or restriction of this
Rights 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 Rights Agreement shall remain in full force and effect and shall in
no way be affected, impaired or invalidated.

 

SECTION
32.  Governing Law. This Rights Agreement and each Right Certificate issued
hereunder shall be deemed to be a contract made under the law of the State of Delaware and for all purposes shall be governed by
and construed in accordance with the law of such State applicable to contracts to be made and performed entirely within such State.

 

SECTION
33.  Counterparts; Effectiveness. This Rights Agreement may be executed
in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts
shall together constitute but one and the same instrument. A signature to this Rights Agreement transmitted electronically shall
have the same authority, effect and enforceability as an original signature. This Rights Agreement shall be effective as of the
Close of Business on the date hereof.

 

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

 

SECTION
35.  Force Majeure. Notwithstanding anything to the contrary contained
herein, the Rights Agent shall not be liable for any delays or failures in performance resulting from acts beyond its reasonable
control and without the fault or gross negligence of the delayed or non-performing party, including acts of God, terrorist acts,
shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due to power
failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest; provided
that the Rights Agent shall use reasonable commercial efforts to resume or cure performance as soon as practicable.

 

[Signature Page Follows]

 

    36

     

    

 

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

 

	 	VRINGO, INC.,
	 	 	 	 
	 	 	by:	/s/ Anastasia Nyrkovskaya
	 	 	 	Name: Anastasia
    Nyrkovskaya
	 	 	 	Title: Chief Financial
    Officer
	 	 	 	 
	 	American
    Stock Transfer & Trust 
	 	Company, LLC, as Rights Agent
	 	 		 
	 	 	by:	/s/ Jennifer Donovan
	 	 	 	Name: Jennifer Donovan
	 	 	 	Title: SVP

  

     

     

    

 

Exhibit A

 

CERTIFICATE OF DESIGNATION

 

OF

 

SERIES C JUNIOR PARTICIPATING PREFERRED
STOCK

 

OF

 

VRINGO, INC.

 

The undersigned do
hereby certify that the following resolution was duly adopted by the Board of Directors of Vringo, Inc., a Delaware corporation
(the “Company”), on March 18, 2016:

 

RESOLVED, that
pursuant to the authority vested in the board of directors of the Company (the “Board of Directors”) by the
Company’s Amended and Restated Certificate of Incorporation, as amended (the “Certificate of
Incorporation”), the Board of Directors does hereby create, authorize and provide for the issue of a series of
Preferred Stock, par value $0.01 per share, of the Company, to be designated “Series C Junior Participating Preferred
Stock”, initially consisting of 300,000 shares, and to the extent that the designations, powers, preferences and
relative and other special rights and the qualifications, limitations or restrictions of the Series C Junior Participating
Preferred Stock are not stated and expressed in the Certificate of Incorporation, does hereby fix and herein state and
express such designations, powers, preferences and relative and other special rights and the qualifications, limitations and
restrictions thereof, as follows (all terms used herein which are defined in the Certificate of Incorporation shall be deemed
to have the meanings provided therein):

 

SECTION 1.Designation and
Amount. There shall be a series of Preferred Stock that shall be designated as “Series C Junior Participating
Preferred Stock,” and the number of shares constituting such series shall be 300,000. Such number of shares may be increased
or decreased by resolution of the Board of Directors of the Company (the “Board”); provided,
however, that no decrease shall reduce the number of shares of Series C Junior Participating Preferred Stock to less than
the number of shares then issued and outstanding plus the number of shares issuable upon exercise of outstanding rights,
options or warrants or upon conversion of outstanding securities issued by the Company.

 

SECTION 2.Dividends or
Distributions. (a) Subject to the superior rights of the holders of shares of any other series of preferred stock of the
Company or other class of capital stock of the Company ranking superior to the shares of Series C Junior Participating
Preferred Stock with respect to dividends, the holders of shares of Series C Junior Participating Preferred Stock shall be
entitled to receive, when, as and if declared by the Board, out of the assets of the Company legally available therefor, (1)
quarterly dividends payable in cash on the last day of each fiscal quarter in each year, or such other dates as the Board
shall approve (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing
on the first Quarterly Dividend Payment Date after the first issuance of a share or a fraction of a share of Series C Junior
Participating Preferred Stock, in the amount of $10.00 per whole share (rounded to the nearest cent) less the amount of all
cash dividends declared on the Series C Junior Participating Preferred Stock pursuant to the following clause (2) since the
immediately preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since
the first issuance of any share or fraction of a share of Series C Junior Participating Preferred Stock (the total of which
shall not, in any event, be less than zero) and (2) dividends payable in cash on the payment date for each cash dividend
declared on the shares of Common Stock, par value $0.01 per share, of the Company (the “Common Stock”) in
an amount per whole share (rounded to the nearest cent) equal to the Formula Number (as hereinafter defined) then in effect
times the cash dividends then to be paid on each share of Common Stock. In addition, if the Company shall pay any dividend or
make any distribution on the Common Stock payable in assets, securities or other forms of noncash consideration (other than
dividends or distributions solely in shares of Common Stock), then, in each such case, the Company shall simultaneously pay
or make on each outstanding whole share of Series C Junior Participating Preferred Stock a dividend or distribution in like
kind equal to the Formula Number then in effect times such dividend or distribution on each share of Common Stock. As used
herein, the “Formula Number” shall be 1,000; provided, however, that, if at any time after March 18,
2016, the Company shall (i) declare or pay any dividend on the Common Stock payable in shares of Common Stock or make any
distribution on the Common Stock in shares of Common Stock, (ii) subdivide (by a stock split or otherwise) the
outstanding shares of Common Stock into a larger number of shares of Common Stock or (iii) combine (by a reverse stock split
or otherwise) the outstanding shares of Common Stock into a smaller number of shares of Common Stock, then in each such event
the Formula Number shall be adjusted to a number determined by multiplying the Formula Number in effect immediately prior to
such event by a fraction, the numerator of which is the number of shares of Common Stock that are outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that are outstanding immediately prior
to such event (and rounding the result to the nearest whole number); and provided further that, if at any time after
March 18, 2016, the Company shall issue any shares of its capital stock in a merger, reclassification, or change of the
outstanding shares of Common Stock, then in each such event the Formula Number shall be appropriately adjusted to reflect
such merger, reclassification or change so that each share of Series C Junior Participating Preferred Stock continues to be
the economic equivalent of a Formula Number of shares of Common Stock prior to such merger, reclassification or change.

 

     

     

    

 

(b)The Company shall declare a cash
dividend on the Series C Junior Participating Preferred Stock as provided in Section 2(a)(2) immediately prior to or
at the same time it declares a cash dividend on the Common Stock; provided, however, that, in the event no cash
dividend shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the
next subsequent Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, during the
period between the first issuance of any share or fraction of a share of Series C Junior Participating Preferred Stock, a
dividend of $10.00 per whole share on the Series C Junior Participating Preferred Stock shall nevertheless accrue on such
subsequent Quarterly Dividend Payment Date or the first Quarterly Dividend Payment Date, as the case may be. The Board may
fix a record date for the determination of holders of shares of Series C Junior Participating Preferred Stock entitled to
receive a dividend or distribution declared thereon, which record date shall be the same as the record date for any
corresponding dividend or distribution on the Common Stock.

 

(c)Whether or not declared, dividends
shall begin to accrue and be cumulative on outstanding shares of Series C Junior Participating Preferred Stock from and after the
Quarterly Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior
to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue
and be cumulative from and after the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment
Date or is a date after the record date for the determination of holders of shares of Series C Junior Participating 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 and after such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall
not bear interest. Dividends paid on the shares of Series C Junior Participating Preferred Stock in an amount less than the total
amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among
all such shares at the time outstanding.

 

    	 	2	 

     

    

 

(d)So long as any shares of Series C Junior
Participating Preferred Stock are outstanding, no dividends or other distributions shall be declared, paid or distributed, or set
aside for payment or distribution, on the Common Stock unless, in each case, the dividend required by this Section 2 to be declared
on the Series C Junior Participating Preferred Stock shall have been declared and set aside.

 

(e)The holders of shares of Series C Junior
Participating Preferred Stock shall not be entitled to receive any dividends or other distributions except as herein provided.

 

SECTION 3.Voting Rights. The
holders of shares of Series C Junior Participating Preferred Stock, in addition to the voting rights provided by law, shall
have the following voting rights:

 

(a)Each holder of Series C Junior Participating
Preferred Stock shall be entitled to a number of votes on each matter on which holders of the Common Stock or stockholders generally
are entitled to vote equal to the Formula Number then in effect, for each share of Series C Junior Participating Preferred Stock
held of record, multiplied by the maximum number of votes per share which any holder of Common Stock or stockholders generally
then have with respect to such matter (assuming, if applicable, any holding period or other requirement to exercise such maximum
voting rights is satisfied).

 

(b)Except as otherwise herein provided
or by applicable law, the holders of shares of Series C Junior Participating Preferred Stock and the holders of shares of Common
Stock shall vote together as one class for the election of directors of the Company and on all other matters submitted to a vote
of stockholders of the Company.

 

(c)Except as otherwise herein provided
or by applicable law, holders of Series C Junior Participating Preferred Stock shall have no voting rights.

 

SECTION 4.Certain Restrictions.
(a) Whenever quarterly dividends or other dividends or distributions on the Series C Junior Participating Preferred Stock as provided
in Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared,
on shares of Series C Junior Participating Preferred Stock outstanding shall have been paid in full, the Company shall not:

 

    	 	3	 

     

    

 

(i)declare or pay dividends on, make any
other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of stock ranking junior (either
as to dividends or upon liquidation, dissolution or winding up) to the Series C Junior Participating Preferred Stock;

 

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

 

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

 

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

 

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

 

SECTION 5.Liquidation Rights.
Upon the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, no distribution shall be made
(1) to the holders of any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up)
to the Series C Junior Participating Preferred Stock unless, prior thereto, the holders of shares of Series C Junior Participating
Preferred Stock shall have received an amount equal to the accrued and unpaid dividends and distributions thereon, whether or
not declared, to the date of such payment, plus an amount equal to the greater of (x) $1,000 per whole share or (y) an aggregate
amount per share equal to the Formula Number then in effect times the aggregate amount to be distributed per share to holders
of Common Stock or (2) to the holders of any shares of stock ranking on a parity (either as to dividends or upon liquidation,
dissolution or winding up) with the Series C Junior Participating Preferred Stock, except distributions made ratably on the Series
C Junior Participating Preferred Stock and all other such parity stock in proportion to the total amounts to which the holders
of all such shares are entitled upon such liquidation, dissolution or winding up.

 

    	 	4	 

     

    

 

SECTION 6.Consolidation, Merger,
etc. In case the Company shall enter into any consolidation, merger, combination or other transaction in which the shares of
Common Stock are exchanged for or changed into other stock or securities, cash or any other property, then in any such case the
then outstanding shares of Series C Junior Participating Preferred Stock shall at the same time be similarly exchanged or changed
into an amount per share equal to the Formula Number then in effect times the aggregate amount of stock, securities, cash or any
other property (payable in kind), as the case may be, into which or for which each share of Common Stock is exchanged or changed.
In the event both this Section 6 and Section 2 appear to apply to a transaction, this Section 6 will control.

 

SECTION 7.No Redemption; No Sinking
Fund. (a) The shares of Series C Junior Participating Preferred Stock shall not be subject to redemption by the Company or
at the option of any holder of Series C Junior Participating Preferred Stock; provided, however, that, subject to Section
4(a)(iv), the Company may purchase or otherwise acquire outstanding shares of Series C Junior Participating Preferred Stock in
the open market or by offer to any holder or holders of shares of Series C Junior Participating Preferred Stock.

 

(b)The shares of Series C Junior Participating
Preferred Stock shall not be subject to or entitled to the operation of a retirement or sinking fund.

 

SECTION 8.No Purchase Fund. The
shares of Series C Junior Participating Preferred Stock shall not be subject to or entitled to the operation of a purchase fund.

 

SECTION 9.No Conversion; No Exchange.
The shares of Series C Junior Participating Preferred Stock shall not be convertible into, or exchangeable for, shares of any other
class or series.

 

SECTION 10.Ranking. The Series
C Junior Participating Preferred Stock shall rank junior to all other series of preferred stock of the Company unless the Board
shall specifically determine otherwise in fixing the powers, preferences and relative, participating, optional and other special
rights of the shares of such series and the qualifications, limitations and restrictions thereof.

 

SECTION 11.Fractional Shares.
The Series C Junior Participating Preferred Stock shall be issuable upon exercise of the Rights issued pursuant to the Rights Agreement
in whole shares or in any fraction of a share that is one one-thousandth of a share (as such fraction may be adjusted as provided
in the Rights Agreement) or any integral multiple of such fraction which shall entitle the holder, in proportion to such holder’s
fractional shares, to receive dividends, participate in distributions and to have the benefit of all other rights of holders of
Series C Junior Participating Preferred Stock. In lieu of any fractional shares, the Company may elect (a) to make a cash payment
as provided in the Rights Agreement for fractions of a share, other than those one one-thousandths (1/1,000ths) of a Preferred
Share (as such fraction may be adjusted as provided in the Rights Agreement), or any integral multiple thereof, represented
by one or more whole Rights immediately prior to such exercise, or (b) to issue depositary receipts evidencing fractional shares
of Series C Junior Participating Preferred Stock pursuant to an appropriate agreement between the Company and a depository selected
by the Company; provided, however, that such agreement shall provide that the holders of such depositary receipts shall
have all the rights, privileges and preferences to which they are entitled as holders of the Series C Junior Participating Preferred
Stock.

 

    	 	5	 

     

    

 

SECTION 12.Reacquired Shares.
Any shares of Series C Junior Participating Preferred Stock purchased or otherwise acquired by the Company in any manner whatsoever
shall be retired and canceled promptly after the acquisition thereof. All such shares shall upon their cancelation become authorized
but unissued shares of Preferred Stock, without designation as to series until such shares are once more designated as part of
a particular series by the Board pursuant to the provisions of the Articles.

 

SECTION 13.Amendment. So long
as any shares of Series C Junior Participating Preferred Stock shall be outstanding, (i) none of the voting power, the designations,
the relative preferences, powers, participating, optional or other special rights and the qualifications, limitations and restrictions
of the Series C Junior Participating Preferred Stock as herein provided shall be amended in any manner which would alter
or change the powers, preferences, rights or privileges of the holders of Series C Junior Participating Preferred Stock so as to
affect them adversely and (ii) no amendment, alteration or repeal of the Articles or of the Amended and Restated By-laws of the
Company shall be effected so as to affect adversely any of such powers, preferences, rights or privileges.

 

IN WITNESS WHEREOF, the Company has caused
this Certificate of Designations to be signed by Andrew D. Perlman its Chief Executive Officer, as of the 18th day of
March, 2016.

 

	 	VRINGO, INC.
	 	 	 
	 	By: 	 
	 	 	Andrew D. Perlman
	 	 	Chief Executive Officer

  

    	 	6	 

     

    

 

Exhibit B

 

[Form of Right Certificate]

 

	Certificate No. [R]- 	_________________Rights

 

	NOT EXERCISABLE AFTER MARCH 18, 2019, OR EARLIER IF REDEEMED BY THE COMPANY OR OTHERWISE EXPIREDPURSUANT TO THE RIGHTS AGREEMENT.
THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.01 PER RIGHT, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.
RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED
IN THE RIGHTS AGREEMENT) AND BY ANY SUBSEQUENT HOLDER OF SUCH RIGHTS ARE NULL AND VOID AND NONTRANSFERABLE.

 

Right Certificate

 

VRINGO, INC.

 

This certifies that, or
registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner
thereof, subject to the terms, provisions and conditions of the Rights Agreement dated as of March 18, 2016, as it may be
amended from time to time (the “Rights Agreement”), between VRINGO, INC., a Delaware corporation (the
“Company”), and AMERICAN TRANSFER & TRUST COMPANY, LLC, as Rights Agent (the “Rights
Agent”), unless the Rights evidenced hereby shall have been previously redeemed or exchanged by the Company, to
purchase from the Company at any time after the Distribution Date (as defined in the Rights Agreement) and prior to 5:00
p.m., New York City time on the earliest of (a) March 18, 2019, (b) the effective date of the repeal of Section 382 or any
successor statute if the Board determines that the Rights Agreement is no longer necessary or desirable for the preservation
of NOLs or other tax benefits, (c) the first day of a taxable year of the Company to which the Board determines that no NOLs
or other tax benefits may be carried forward or (d) March 18, 2017, if shareholder approval of the Rights Agreement has not
been obtained by or on such date, unless earlier redeemed or exchanged by the Company as described below (the earliest of the
events described in clauses (a), (b), (c), and (d) being referred to as, the “Expiration Date”), at the
office or offices of the Rights Agent designated for such purpose, or its successors as Rights Agent, one one-thousandth
(1/1,000th) of a fully paid, nonassessable share of Series C Junior Participating Preferred Stock, par value $0.01 per share,
of the Company (the “Preferred Shares”), at a purchase price per one one-thousandth (1/1,000th) of a share
equal to $9.50 (the “Purchase Price”) payable in cash, upon presentation and surrender of this Right
Certificate with the Form of Election to Purchase duly executed.

 

The Purchase Price and the number and kind
of shares which may be purchased upon exercise of each Right evidenced by this Right Certificate, as set forth above, are the Purchase
Price and the number and kind of shares which may be so purchased as of March 18, 2019. As provided in the Rights Agreement,
the Purchase Price and the number and kind of shares which may be purchased upon the exercise of each Right evidenced by this Right
Certificate are subject to modification and adjustment upon the happening of certain events.

 

     

     

    

 

If the Rights evidenced by this Right Certificate
are at any time beneficially owned by an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are
defined in the Rights Agreement), such Rights shall be null and void and nontransferable and the holder of any such Right (including
any purported transferee or subsequent holder) shall not have any right to exercise or transfer any such Right.

 

This Right Certificate is subject to all
the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein
by reference and made a part hereof and to which reference to the Rights Agreement 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 Right Certificates. Copies of the Rights Agreement are on file at the above-mentioned office of the Rights Agent and are also
available from the Company upon written request.

 

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

 

Subject to the provisions of the Rights
Agreement, the Rights evidenced by this Right Certificate may be redeemed by the Company at its option at a redemption price (in
cash or shares of Common Stock, par value $0.01 per share, of the Company or other securities of the Company deemed by the Board
of Directors of the Company (the “Board”) to be at least equivalent in value) of $0.01 per Right (which amount
shall be subject to adjustment as provided in the Rights Agreement) at any time prior to the earlier of (i) the Distribution
Date and (ii) the Expiration Date.

 

With respect to one one-thousandths (1/1,000ths)
of a Preferred Share (as such fraction may be adjusted as provided in the Rights Agreement), or any integral multiple thereof,
represented by one or more whole Rights immediately prior to their exercise, the Company shall be required and, with respect to
other fractions of a Preferred Share the Company may, but shall not be required, to (i) issue fractions of Preferred Shares upon
exercise of the Rights or distribute certificates that evidence such fractional Preferred Shares or (ii) utilize a depositary arrangement
as provided by the terms of the Rights Agreement and the Preferred Shares. Except with respect to one one-thousandths (1/1,000ths)
of a Preferred Share (as such fraction may be adjusted as provided in this Rights Agreement), or any integral multiple thereof,
represented by one or more whole Rights immediately prior to their exercise, the Company, in lieu of issuing fractional shares,
may elect to make a cash payment as provided in the Rights Agreement for fractions of a share.

 

    	 	2	 

     

    

 

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

 

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

 

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

 

Dated as of:

 

	 	VRINGO, INC.
	 	 	 
	 	by: 	 
	 	 	Name:
	 	 	Title:

 

	Attest:	 
	 	 
	 	 
	Name:	 
	Title:	 

 

Date of countersignature:

 

Countersigned:

 

AMERICAN STOCK TRANSFER & TRUST COMPANY,
LLC,

as Rights Agent,

 

by 

	 	 

Authorized Signatory

 

    	 	3	 

     

    

  

[On Reverse Side of Right Certificate]

 

FORM OF ELECTION TO PURCHASE

 

(To be executed by the registered holder
if

such holder desires to exercise the Rights

represented by this Right Certificate.)

 

To the Rights Agent:

 

The undersigned hereby irrevocably elects
to exercise ______ Rights represented by this Right Certificate to purchase the Preferred Shares (or other shares) issuable upon
the exercise of such Rights and requests that certificates for such shares be issued in the name of:

 

Please insert social security

or other identifying number

 

 

(Please print name and address)

 

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

 

Please insert social security

or other identifying number

 

 

 (Please print name and address)

 

Dated: ________

 

 

	 	Signature

 

Signature Medallion Guaranteed:

 

Signatures must be guaranteed by a participant in the Securities
Transfer Agent Medallion Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion Signature
Program.

 

The undersigned hereby certifies that (1) the Rights evidenced
by this Right Certificate are not being exercised by or on behalf of a person who is or was an Acquiring Person or an Affiliate
or Associate thereof (as such terms are defined in the Rights Agreement) and (2) after due inquiry and to the best knowledge of
the undersigned, the undersigned did not acquire the Rights evidenced by this Right Certificate from any person who is or was an
Acquiring Person or an Affiliate or Associate thereof.

 

    	 	4	 

     

    

 

Dated: ________

 

 

	 	Signature

 

Signature Medallion Guaranteed:

 

Signatures must be guaranteed by a participant
in the Securities Transfer Agent Medallion Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc.
Medallion Signature Program.

 

    	 	5	 

     

    

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder
if such

holder desires to transfer the Right Certificate.)

 

FOR VALUE RECEIVED ____________________________________________________________
hereby sells, assigns and transfer unto ________________________________________________________________

 

 

 

 (Please print name and address of
transferee)

 

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

 

Dated: ______________, ____

 

 

	Signature	 

 

Signature Medallion Guaranteed:

 

Signatures must be guaranteed by a participant in the Securities
Transfer Agent Medallion Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion Signature
Program.

 

The undersigned hereby certifies that (1) the Rights evidenced
by this Right Certificate are not being sold, assigned or transferred by or on behalf of a Person who is or was an Acquiring Person
or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement), (2) this Right Certificate is not being
sold, assigned or transferred to or on behalf of any such Acquiring Person, Affiliate or Associate and (3) after inquiry and to
the best knowledge of the undersigned, the undersigned did not acquire the Rights evidenced by this Right Certificate from any
Person who is or was an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement).

 

 

	Signature	 

 

    	 	6	 

     

    

 

NOTICE

 

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

  

    	 	7	 

     

    

 

Exhibit C

 

RIGHTS BENEFICIALLY OWNED BY ANY ACQUIRING
PERSONS OR THEIR AFFILIATES OR ASSOCIATES AND BY ANY SUBSEQUENT HOLDER OF SUCH RIGHTS ARE NULL AND VOID AND NONTRANSFERABLE.

 

SUMMARY OF RIGHTS TO PURCHASE

 

SERIES C JUNIOR PARTICIPATING PREFERRED
STOCK

 

OF VRINGO, INC.

 

On March 18, 2016 (the
“Rights Dividend Declaration Date”), the Board of Directors (the “Board”) of VRINGO,
INC., a Delaware corporation (the “Company”), declared a dividend of one right (collectively, the
“Rights”) for each outstanding share of Common Stock, par value $0.01 per share, of the Company (the
“Common Shares”). The Rights will be issued to the holders of record of Common Shares outstanding at March
29, 2016 (the “Record Date”) and with respect to Common Shares issued thereafter until the Distribution
Date (as defined below). Each Right, when it becomes exercisable as described below, will entitle the registered holder to
purchase from the Company one one-thousandth (1/1,000th) of a share of Series C Junior Participating Preferred Stock, par
value $0.01 per share, of the Company (the “Preferred Shares”) at a price of  $9.50 (the
“Purchase Price”). The description and terms of the Rights are set forth in a Section 382 Rights Agreement
dated as of March 18, 2016 as it may be amended from time to time (the “Rights Agreement”), between the
Company and American Stock Transfer & Trust Company, LLC, as Rights Agent (the “Rights Agent”).

 

The Board adopted the Rights Agreement in
an effort to protect shareholder value by attempting to protect against a possible limitation on the Company’s ability to
use its net operating loss carryforwards (the “NOLs”) and other tax benefits to reduce potential future United
States Federal income tax obligations. The Company has experienced and continues to experience substantial operating losses, and
under the Internal Revenue Code of 1986, as amended (the “Code”), and rules promulgated thereunder, the Company
may “carry forward” these NOLs and other tax benefits in certain circumstances to offset any current and future earnings
and thus reduce the Company’s federal income tax liability, subject to certain requirements and restrictions. To the extent
that the NOLs and other tax benefits do not otherwise become limited, the Company believes that it will be able to carry forward
a significant amount of NOLs and other tax benefits, and therefore these NOLs and other tax benefits could be a substantial asset
to the Company. However, if the Company experiences an “Ownership Change,” as defined in Section 382, its ability to
use the NOLs and other tax benefits will be substantially limited, including that the timing of the usage of the NOLs and other
tax benefits could be substantially delayed, which could therefore significantly impair the value of those assets.

 

     

     

    

 

Until the earlier of 5:00 p.m. New York
City time on (a) the tenth calendar day after such date as the Company learns that a person or group (including any affiliate or
associate of such person or group), has acquired, or obtained the right to acquire, beneficial ownership of 4.99% or more of the
outstanding Common Shares (any such person or group being called an “Acquiring Person”) (subject to exceptions),
and (b) such date, if any, as may be designated by the Board following the commencement of, or first public disclosure of an intention
to commence, a tender or exchange offer for outstanding Common Shares which could result in such person or group becoming the beneficial
owner of 4.99% or more of the outstanding Common Shares (the earlier of such dates being called the “Distribution Date”),
the Rights will be evidenced by certificates for Common Shares registered in the names of the holders thereof, or, in the case
of Common Shares held in uncertificated form, by the transaction statement or other record of ownership of such Common Shares,
and not by separate Right Certificates. Generally, the Rights Agreement provides that any person or group (including any affiliate
or associate of such person or group) (a “Grandfathered Person”) which beneficially owned (as disclosed in public
filings with the Securities and Exchange Commission) 4.99% or more of the outstanding Common Shares as of the Rights Dividend Declaration
Date (the percentage of such ownership, the “Grandfathered Percentage”) will not be deemed an “Acquiring
Person” unless such Grandfathered Person exceeds its Grandfathered Percentage by 0.5% or more. If any Grandfathered Person
shall sell, transfer or otherwise dispose of any outstanding Common Shares after the Rights Dividend Declaration Date, the related
Grandfathered Percentage shall then mean, the lesser of (a) the Grandfathered Percentage as in effect immediately prior to such
sale, transfer or disposition or (b) the percentage of outstanding Common Shares of the Company that such Grandfathered Person
beneficially owns immediately following such sale, transfer or disposition; provided, however, if at any time after the
Rights Dividend Declaration Date, such Grandfathered Person is the beneficial owner of less than 4.99% of the outstanding Common
Shares, then such person or group (including any affiliate or associate of such person or group) will cease to be a Grandfathered
Person. Additionally, the Rights Agreement includes procedures whereby the Board will consider requests to exempt (a) any person
or group (including any affiliate or associate of such person or group) (an “Exempt Person”) which would otherwise
be an “Acquiring Person”, or (b) any transaction (an “Exempt Transaction”) resulting in the beneficial
ownership of Common Shares, prior to the consummation of such transaction, from the Acquiring Person trigger, in each case if the
Board determines in its sole discretion either that such person or group (including any affiliate or associate of such person or
group) or such transaction (i) will not jeopardize or endanger the availability of the NOLs or other tax benefits to the Company
or (ii) is otherwise in the best interest of the Company; provided that, (A) in the case of an Exempt Person, if the Board
later makes a contrary determination with respect to the effect of such person or group’s (including any affiliate or associate
of such person or group) beneficial ownership with respect to the availability to the Company of its NOLs or other tax benefits,
such person or group (including any affiliate or associate of such person or group) shall cease to be an Exempt Person and (B)
in the case of an Exempt Person or Exempt Transaction, the Board may require the applicable person or group (including any affiliate
or associate of such person or group) to make certain representations or undertakings, the violation or attempted violation of
which will be subject to such consequences as the Board may determine it its sole discretion, including that such person or group
(including any affiliate or associate of such person or group) shall become an “Acquiring Person”.

 

With respect to any Common Shares outstanding
as of the Record Date, until the earliest of the Distribution Date, the Redemption Date or the Expiration Date (as defined below),
(a) in the case of certificated shares, the Rights associated with the Common Shares represented by a certificate shall be evidenced
by such certificate along with a copy of this Summary of Rights, and the surrender for transfer of any such certificate shall
also constitute the transfer of the Rights associated with the Common Shares represented thereby, and (b) in the case of Common
Shares held in uncertificated form, the Rights associated with the Common Shares shall be evidenced by the balances indicated
in the book-entry account system of the transfer agent for the Common Shares, and the transfer of any Common Shares in the book-entry
account system of the transfer agent for such Common Shares shall also constitute the transfer of the Rights associated with such
Common Shares. Therefore, until the Distribution Date, the Rights may be transferred with and only with the underlying Common
Shares.

 

    	 	2	 

     

    

 

As soon as practicable following the Distribution
Date, separate certificates evidencing the Rights (“Right Certificates”) will be mailed to holders of record
of the Common Shares as of the close of business on the Distribution Date, and such separate Right Certificates alone will thereafter
evidence the Rights.

 

The Rights are not exercisable until the
Distribution Date and will expire at 5:00 p.m., New York City time, on the earliest of (a) March 18, 2019, (b) the effective date
of the repeal of Section 382 or any successor statute if the Board determines that the Rights Agreement is no longer necessary
or desirable for the preservation of NOLs or other tax benefits, (c) the first day of a taxable year of the Company to which the
Board determines that no NOLs or other Tax Benefits may be carried forward or (d) March 18, 2017, if shareholder approval of the
Rights Agreement has not been obtained by or on such date (the earliest of the events described in clauses (a), (b), (c), and (d)
being referred to as, the “Expiration Date”), unless earlier redeemed or exchanged by the Company as described
below.

 

The number of Preferred Shares or other
securities issuable upon exercise of the Rights is subject to adjustment by the Board in the event of any change in the Common
Shares or Preferred Shares, whether by reason of stock dividends, stock splits, reclassifications, recapitalizations, mergers,
consolidations, combinations or exchanges of securities, split-ups, split-offs, spin-offs, liquidations, other similar changes
in capitalization, any distribution or issuance of cash, assets, evidences of indebtedness or subscription rights, options or warrants
to holders of Common Shares or Preferred Shares or otherwise. The Purchase Price and the number of Preferred Shares or other securities
issuable upon exercise of the Rights are subject to adjustment from time to time in the event of the declaration of a stock dividend
on the Common Shares payable in Common Shares or a subdivision or combination of the Common Shares prior to the Distribution Date.

 

The Preferred Shares are authorized to be
issued in fractions which are an integral multiple of one one-thousandth (1/1,000th) of a Preferred Share and, unless represented
by depositary receipts pursuant to a depositary arrangement (as provided by the terms of the Preferred Shares), shall be
so issued. The foregoing sentence notwithstanding, the Company may, in lieu of issuing fractional shares (other than fractional
shares represented by one or more whole Rights immediately prior to their exercise), make a cash payment for such shares based
on the market price of such shares on the first trading date prior to the date of exercise.

 

Subject to the right of the Board to redeem
or exchange the Rights as described below, on the tenth day after such time as the Company learns that there is an Acquiring Person,
the holder of each Right will thereafter have the right to receive, upon exercise thereof, for the Purchase Price, that number
of one one-thousandths (1/1,000ths) of a Preferred Share equal to the number of Common Shares which at the time of such transaction
would have a market value of twice the Purchase Price. Any Rights that are or were beneficially owned by an Acquiring Person will
become null and void and will not be subject to this “flip-in” provision.

 

    	 	3	 

     

    

 

In the event the Company is acquired by,
or otherwise engages in a merger, share exchange or other business combination with, an Acquiring Person that has common shares
publicly traded in the United States or 50% or more of the Company’s assets or assets representing 50% or more of the Company’s
earning power are sold, leased, exchanged or otherwise transferred (in one or more transactions) to an Acquiring Person that has
common shares publicly traded in the United States, proper provision must be made so that each Right will entitle its holder to
purchase, for the Purchase Price, that number of common shares of such entity which at the time of the transaction would have a
market value of twice the Purchase Price. In the event the Company is acquired in a merger or other business combination by an
Acquiring Person that does not have common shares publicly traded in the United States or 50% or more of the Company’s assets
or assets representing 50% or more of the earning power of the Company are sold, leased, exchanged or otherwise transferred (in
one or more transactions) to an Acquiring Person that does not have common shares publicly traded in the United States, proper
provision must be made so that each Right will entitle its holder to purchase, for the Purchase Price, at such holder’s option,
(a) if such entity has common shares publicly traded outside the United States, that number of common shares of such entity which
at the time of the transaction would have a market value of twice the Purchase Price, (b) that number of common shares of the surviving
corporation in the transaction with such entity which at the time of the transaction would have a book value of twice the Purchase
Price, (c) that number of common shares of such entity which at the time of the transaction would have a book value of twice the
Purchase Price or (d) if such entity has an affiliate which has common shares publicly traded in the United States, that number
of common shares of such affiliate which at the time of the transaction would have a market value of twice the Purchase Price.
This “flip-over” provision only applies to a merger or similar business combination with an Acquiring Person.

 

ANY RIGHTS THAT ARE OR WERE, AT ANY TIME
ON OR AFTER THE DATE AN ACQUIRING PERSON BECOMES SUCH, BENEFICIALLY OWNED BY SUCH ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE
OF SUCH ACQUIRING PERSON (OR A TRANSFEREE THEREOF) WILL BECOME NULL AND VOID AND ANY HOLDER OF ANY SUCH RIGHT (INCLUDING ANY SUBSEQUENT
HOLDER) WILL BE UNABLE TO EXERCISE ANY SUCH RIGHT.

 

The Rights are redeemable by the Board at
a redemption price of $0.01 per Right (the “Redemption Price”) any time prior to the earlier of (a) the Distribution
Date and (b) the Expiration Date (the date of such redemption being the “Redemption Date”). Immediately upon
the action of the Board electing to redeem the Rights, and without any further action and without any notice, the right to exercise
the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price.

 

After there is an Acquiring Person the Board
may elect to exchange each Right (other than Rights owned by an Acquiring Person) for consideration per Right consisting of (a)
one-half of the securities that would be issuable at such time upon the exercise of one Right pursuant to the terms of the Rights
Agreement or (b) cash, Preferred Shares (including fractions thereof), Common Shares (including fractions thereof) or other equity
or debt securities (or any combination of any of the foregoing) having an aggregate value equal to one-half of the value of Preferred
Shares (including fractions thereof) that would be issuable at such time upon the exercise of one Right pursuant to the terms of
the Rights Agreement. Notwithstanding the foregoing, the Board is not empowered to effect such exchange at any time after any person
(other than the Company, any subsidiary of the Company, any employee benefit plan of the Company or any such subsidiary, or any
entity holding Common Shares for or pursuant to the terms of any such plan), together with all affiliates and associates of such
person, becomes the beneficial owner of 50% or more of the Common Shares then outstanding.

 

    	 	4	 

     

    

 

If the Board elects to mandatorily exchange
any Rights, the Board may, at its option and without limiting any rights the Company may have under the Rights.

 

Agreement, cause the Company to enter into
one or more arrangements it deems necessary or appropriate to implement and give effect to such mandatory exchange in the manner
contemplated by the Rights Agreement, including by establishing one or more trusts or other mechanisms for the proper and orderly
distribution of the securities and/or cash to be exchanged therefor.

 

At any time prior to the date the Company
learns that a person or group (including any affiliate or associate of such person or group) has become an Acquiring Person (subject
to exceptions), the Company may, without the approval of any holder of the Rights, supplement or amend any provision of the Rights
Agreement (including the date on which the Distribution Date will occur, the amount of the Purchase Price or the definition of
“Acquiring Person”), except that no supplement or amendment may be made that reduces the Redemption Price or adversely
affects the holders of Rights (other than an Acquiring Person, an affiliate or associate of an Acquiring Person and certain transferees).

 

Until a Right is exercised, the holder thereof,
as such, will have no rights as a stockholder of the Company, including the right to vote or to receive dividends.

 

A copy of the Rights Agreement, including
the terms of the Preferred Shares, will be filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement
on Form 8-A. A copy of the Rights Agreement is available free of charge from the Company upon written request. This summary description
of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is
incorporated herein by reference.

 

    	 	5Exhibit
10.1

 

PROMISSORY
NOTE

 

	$500,000.00	Date:
    March 15, 2016

 

FOR
VALUE RECEIVED, ST. LAWRENCE ZINC COMPANY, LLC, a Delaware limited liability company, with an address of 408 Sylvia Lake Road,
Gouverneur, New York 13642 and (hereinafter referred to as “Borrower”) hereby covenants and promises to pay to DEVELOPMENT
AUTHORITY OF THE NORTH COUNTRY, a New York public benefit corporation with its principal office at Dulles State Office Building,
317 Washington Street, Watertown, New York 13601 (referred to herein as “Lender”), or order, at Lender’s address
first above written or at such other address as Lender may designate in writing, the principal sum of FIVE HUNDRED THOUSAND AND
00/100ths ($500,000.00) Dollars, in lawful money of the United States of America, together with interest thereon computed from
the date hereof as set forth herein, until paid in full.

 

Borrower
covenants and agrees with Lender as follows:

 

1.
Borrower will pay the indebtedness evidenced by this Note as provided herein.

 

2.
The interest rate charged on the outstanding principal balance shall be at the rate of TWO AND ONE-QUARTER percent (2.25%) per
annum. Interest is calculated on the basis of a 360 day year for the actual number of days the loan is outstanding.

 

3.
Borrower shall make payments of only accrued interest at the aforesaid rate commencing on the 1st day of April 2016
and continuing on the 1st day of each consecutive month thereafter, until the Maturity Date of this loan as hereinafter
defined.

 

4.
Borrower shall have the right to prepay all or a portion of the outstanding principal balance of this Note without any prepayment
fee.

 

5.
Payments as received by Lender are to be applied first against late charges or other penalties or expenses for which Borrower
is liable; accrued interest at the aforesaid rate on the outstanding principal amount; and then to the reduction of principal.

 

6.
Notwithstanding any other provision contained herein to the contrary, on April 1, 2017 (the “Maturity Date”), all
outstanding sums of principal and accrued interest shall be due and payable in full, if not sooner paid.

 

    	1 

    	 

    

 

7.
In the event any payment due hereunder shall not be paid within fifteen (15) days of the date it is due, there shall be a penalty
of 6.0% of the amount of the payment that is late. This paragraph shall not be deemed to extend or otherwise modify or amend the
date when such payments are due hereunder.

 

8.
The Lender may declare the entire unpaid amount of principal and interest under this Note to be immediately due and payable if
Borrower fails to make any payment required by this Note within thirty (30) days of its due date.

 

9.
The holder of this Note may also declare the entire unpaid amount of principal and interest under this Note to be due and payable
upon the occurrence of any event of default under the Security Agreement, or the Assignment of Mineral and Mining Rights securing
this Note and such default has not been cured within twenty-five(25) days after Borrower’s receipt of written notice of
such default specifying the reasons for the default. In the event the default cannot be cured within twenty-five (25) days, Borrower
shall not be in default if, within the twenty-five (25) day period, it shall have commenced to cure the default and shall continue
its efforts to cure the default with due diligence. Forbearance to exercise the right to accelerate the maturity of the principal
indebtedness with respect to any event of default shall not constitute a waiver of said right as to any other or subsequent event
of default.

 

10.
Borrower, and all guarantors, endorsers and sureties of this Note, hereby waive presentment for payment, demand, protest, notice
of protest, notice of nonpayment, and notice of dishonor of this Note. Borrower and all guarantors, endorsers and sureties consent
that Lender at any time may extend the time of payment of all or any part of the indebtedness secured hereby, or may grant any
other indulgences.

 

11.
Any notice or demand required or permitted to be made or given hereunder shall be deemed sufficiently made and given if given
by personal service or five (5) days after the mailing of such notice or demand by certified mail, addressed, if to Borrower,
at Borrower’s address first above written, with a copy to Star Mountain Resources, Inc., 8307 Shaffer Parkway, Suite 102,
Littleton, Colorado 80127 Attn. Chief Financial Officer and to Legal & Compliance, LLC, 330 Clematis Street, Suite 217, West
Palm Beach, Florida 33401 Attn. Laura Anthony, Esq., and Lazarus Rothstein, Esq., or if to Lender, at Lender’s address first
above written. Any party may change its address by like notice actually received by the other party or parties.

 

12.
This Note may not be changed or terminated orally, but only by an agreement in writing signed by the party against whom enforcement
of any change, modification, termination, waiver, or discharge is sought.

 

13.
This Promissory Note shall be construed in accordance with and governed by the laws of the State of New York.

 

14.
Any legal action by any party against another relating in any way to this instrument, or the indebtedness, or any relationship
between or conduct by the parties, whether at law or in equity, shall be commenced in the Supreme Court of the State of New York
in and for St. Lawrence County, New York. Borrower shall indemnify Lender for all costs, disbursements and reasonable attorneys’
fees incurred by Lender in the event Lender must enforce its rights under this instrument.

 

[This
space was intentionally left blank].

 

    	2 

    	 

    

 

IN
WITNESS WHEREOF, Borrower has executed this Note on the date first above written.

 

Borrower:

 

	ST.
    LAWRENCE ZINC COMPANY, LLC 	 
	 	By:	Balmat
    Holding Corporation	 
	 	 	A
    Delaware Corporation	 
	 	 	Sole
    Member	 

 

	/s/
    Wayne Rich	 
	By:	Wayne
    Rich	 
	Its:	Chief
    Financial Officer	 

 

	STATE
    OF COLORADO	           )
	 	)ss:
	COUNTY
    OF JEFFERSON	)

 

On
the 15 day of March 2016, before me, the undersigned, a Notary Public in and for said State, personally appeared WAYNE
RICH, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed
to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument,
the individual, entity or person upon behalf of which the individual acted, executed the instrument.

 

	 	/s/
    Bryan S. Doyle
	 	Notary
    Public

 

    	3

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