Document:

Document

DICK’S SPORTING GOODS, INC.
EXCHANGE AGREEMENT

Dated as of September 26, 2022

[__________] (the “Undersigned”), for itself and on behalf of the beneficial owners listed on Exhibit A hereto (collectively, the “Accounts”) for whom the Undersigned holds contractual and investment authority (each Account, as well as the Undersigned if it is a beneficial owner of the outstanding 3.25% Convertible Senior Notes due 2025 (the “Outstanding Notes”) issued by DICK’S Sporting Goods, Inc., a Delaware corporation (the “Company”), a “Holder”), enters into this Exchange Agreement (this “Agreement”) with the Company as of the date first written above, whereby the Holders will exchange the Exchanged Notes (as defined below) for a combination of shares of the Company’s common stock, par value $0.01 (“Common Stock”), and cash, plus cash in respect of accrued and unpaid interest on such Holder’s Exchanged Notes, in each case determined as set forth herein.

On and subject to the terms hereof, and in consideration of the mutual covenants, agreements and understandings herein contained, the Undersigned, the Holders and the Company hereto agree as follows:

Article I

Exchange

Section 1.1 Exchange. On and subject to the terms set forth in this Agreement, at the Closing (as defined below), the Undersigned hereby agrees to cause each Holder that accepts the  Company’s offer as set forth in this Article I to deliver to the Company at the Closing the aggregate principal amount of Outstanding Notes specified for such Holder on Exhibit A under the heading “Exchanged Notes” (the aggregate principal amount of Outstanding Notes delivered for exchange pursuant to this Agreement, the “Exchanged Notes”), and in exchange therefor the Company hereby agrees to pay or deliver, as applicable, to the Holders in the manner set forth in this Agreement for each $1,000 principal amount of Exchanged Notes:

(a) a cash payment (collectively, the “Cash Payment”) equal to:

(i)        the lesser of $1,000.00 and the Exchange Price; and

(ii)       Accrued Interest (as defined herein, as calculated per $1,000 principal amount of Exchanged Notes); and

(b) if the Exchange Price is greater than $1,000.00, a number of shares of Common Stock equal to the lesser of (x) the Share Cap and (y)(1) the Exchange Price minus $1,000.00 divided by (2) the average of the Daily VWAPs for each Trading Day in the Measurement Period (the “Exchange Shares”).

The Company shall pay cash in lieu of issuing any fractional share pursuant to clause (b) above based on the Daily VWAP on the last Trading Day of the Measurement Period, computed based on the total principal amount of Exchanged Notes by such Holder.

The Cash Payment and the Exchange Shares, together with cash in lieu of any fractional share, in respect of a Holder’s Exchanged Notes are referred to herein as the “Exchange Consideration.”

Any Accrued Interest shall be determined based on a Holder’s total number of Exchanged Notes, rounded to the nearest cent.

For the avoidance of doubt, (i) no Holder’s exchange of its Exchanged Notes shall be contingent upon any other Holder’s exchange of its Exchanged Notes, and (ii) any Accrued Interest paid hereunder shall be paid in lieu of payment of interest on the regular Interest Payment Date (as defined in the Indenture) of October 15, 2022 (“Regular Interest Payment Date”), and no Holder will be entitled to payment of any additional interest on such Regular Interest Payment Date by virtue of being a Holder on the record date for such Regular Interest Payment Date.

The issuance, delivery and acceptance of the Exchange Consideration and the exchange of the Exchanged Notes are collectively referred to herein as the “Transactions.”

For purposes of this Agreement:

“Accrued Interest” means, with respect to each Holder, accrued and unpaid interest on such Holder’s Exchanged Notes from and including April 15, 2022, to but excluding the Closing Date.

“Bond Reference Price” means $3,206.97.

“Business Day” means any day other than a Saturday, a Sunday, or any day on which the Federal Reserve Bank of New York is authorized or required by law or executive order to close or be closed.

“Conversion Rate” shall mean the Conversion Rate as set forth in the Indenture (and subject to the same adjustments as set forth therein). For the avoidance of doubt, the Conversion Rate as of the date hereof is 30.9636, taking into account all adjustments to the Conversion Rate through the date hereof, and without regard to the adjustment thresholds set forth in Section 5.05(C) of the Indenture.

“Daily Conversion Rate Fraction” means, with respect to each Trading Day in the Measurement Period, the Conversion Rate on such Trading Day divided by five.

“Daily Conversion Value” means, with respect to each Trading Day in the Measurement Period, the Daily Conversion Rate Fraction for such Trading Day multiplied by the Daily VWAP for such Trading Day.

“Daily Exchange Price Fraction” means, with respect to each Trading Day in the Measurement Period (i) the Bond Reference Price divided by five plus (ii) (A) the Hedge Ratio multiplied by 

(B)(I) the Daily Conversion Value for such Trading Day minus (II) the Signing Date Conversion Value divided by five.

“Daily VWAP” means, for any Trading Day, the per share volume-weighted average price of the Common Stock as displayed under the heading “Bloomberg VWAP” on Bloomberg page “DKS <equity> AQR” (or, if such page is not available, its equivalent successor page) in respect of the period from the scheduled open of trading until the scheduled close of trading of the primary trading session on such Trading Day (or if such volume-weighted average price is unavailable, the market value of one share of Common Stock on such Trading Day, determined using a volume-weighted average price method, by a nationally recognized independent investment banking firm selected by the Company). The “Daily VWAP” will be determined without regard to after-hours trading or any other trading outside of the regular trading session.

“Exchange Price” means the sum of the Daily Exchange Price Fractions for each Trading Day in the Measurement Period.

“Hedge Ratio” means the “Hedge Ratio” of the Holder set forth in Exhibit A hereto.

“Indenture” means the Indenture, dated as of April 17, 2020, by and between the Company and U.S. Bank Trust Company, National Association (as successor to U.S. Bank National Association), as trustee, pursuant to which the Company issued the Outstanding Notes.

“Market Disruption Event” means (i) a failure by NYSE to open for trading during its regular trading session or (ii) a Trading Halt.

“Measurement Period” means the five Trading Day period commencing on, and including, the Trading Day immediately following the date of this Agreement.

“Share Cap” means 30.9636,, subject to the same adjustment in the same manner and at the same time as adjustments to the Conversion Rate pursuant to the Indenture.

“Signing Date Conversion Value” means $3,165.72.

“Trading Day” means a day on which (i) there is no Market Disruption Event and (ii) trading in the Common Stock generally occurs on NYSE.

“Trading Halt” means the occurrence or existence prior to 1:00 p.m., New York City time, on any scheduled trading day for the Common Stock for more than one 45 minute period in the aggregate during regular trading hours of any suspension of trading (by reason of movements in price exceeding limits permitted by NYSE or otherwise) in the Common Stock.

Section 1.2 Closing. Subject to the satisfaction (or waiver by the applicable parties) of the conditions set forth in Section 4.1 below, the closing of the Transactions (the “Closing”) will take place remotely via the exchange of documents and signatures on the second Business Day following the last Trading Day of the Measurement Period or at such other time and place as the Company and the Undersigned may agree in writing (the “Closing Date”).

At the Closing, (a) each Holder shall, and the Undersigned shall cause each Holder to, deliver or cause to be delivered to the Company all right, title and interest in and to its Exchanged Notes as specified on Exhibit A hereto (and no other consideration), free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto (collectively, “Liens”), together with any documents of conveyance or transfer that the Company may deem necessary or desirable to transfer to and confirm in the Company all right, title and interest in and to the Exchanged Notes, free and clear of any Liens (no later than 10:00 a.m. (New York City time) on the Closing Date), and (b) the Company shall deliver or cause to be delivered to each Holder (i) the aggregate Cash Payment, together with cash in lieu of any fractional share, applicable thereto pursuant to the wire instructions provided by such Holder pursuant to Section 2.10, and (ii) the applicable number of Exchange Shares pursuant to the delivery instructions provided by such Holder pursuant to Section 2.10; provided, that the parties acknowledge that the delivery of the Exchange Shares may be delayed due to procedures and mechanics within the system of The Depository Trust Company (“DTC”) or The New York Stock Exchange (“NYSE”) (including the procedures and mechanics regarding the listing of the Exchange Shares on such exchange) or other events beyond the Company’s control and that such delay will not be a default under this Agreement so long as the Company is using its reasonable best efforts to effect the issuance of the Exchange Shares; provided, further, that no delivery of Exchange Shares will be made until such Exchanged Notes have been properly submitted for withdrawal through the Deposit/Withdrawal at Custodian (“DWAC”) program at DTC, and no accrued interest will be payable by reason of any delay in making such delivery.

For the avoidance of doubt, in the event of any delay in the Closing as described above, the Holders shall not be required to deliver the Exchanged Notes until the Closing occurs. The Company may at any time (whether before, simultaneously with or after the Closing) deliver Exchange Consideration to one or more other holders of Outstanding Notes or to other investors (any such issuances pursuant to agreements dated as of the date hereof, the “Aggregated Transactions”).

Upon delivery by the Holders of the Exchanged Notes and delivery by the Company of the Exchange Consideration, in each case in accordance with the terms hereof, the Undersigned and the Company shall enter into a customary cross-receipt pursuant to which the Undersigned will acknowledge (on behalf of each Holder) receipt of the Exchange Consideration and the Company will acknowledge receipt of the Exchanged Notes.

Article II

Covenants, Representations and Warranties of the Holders

Each Holder (and, where specified below, the Undersigned) hereby covenants as follows, and makes the following representations and warranties, each of which is and shall be true and correct on the date hereof and at and as of the Closing, to the Company and to HudsonWest LLC (the “Financial Advisor”), and all such covenants, representations and warranties shall survive the Closing.

Section 2.1 Power and Authorization. Each of the Undersigned and each Holder is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation, and the Undersigned has the power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the Transactions. If the Undersigned is executing this Agreement on behalf of Accounts, the Undersigned has all requisite discretionary and contractual authority to enter into this Agreement on behalf of, and to bind, each Account. Exhibit A hereto is a true, correct and complete list of (a) the name of each Holder, (b) the principal amount of Outstanding Notes owned by such Holder that is to be delivered for exchange pursuant to this Agreement, and (c) the Accrued Interest (assuming the Closing Date occurs on October 5, 2022) applicable to such Holder in respect of its Exchanged Notes.
Section 2.2 Valid and Enforceable Agreement; No Violations. This Agreement has been duly authorized, executed and delivered by the Undersigned and constitutes a legal, valid and binding obligation of the Undersigned and the applicable Holder, enforceable against the Undersigned and the applicable Holder in accordance with its terms, except as may be subject to (a) bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity, whether such enforceability is considered in a proceeding at law or in equity (the “Enforceability Exceptions”). This Agreement and consummation of the Transactions will not violate, conflict with or result in a breach of or default under (i) the Undersigned or the applicable Holder’s organizational documents (or any similar documents governing each Account), (ii) any agreement or instrument to which the Undersigned or the applicable Holder is a party or by which the Undersigned or the applicable Holder or any of their respective assets are bound, or (iii) any laws, regulations or governmental or judicial decrees, injunctions or orders applicable to the Undersigned or the applicable Holder. No consent, approval, authorization, order, registration or qualification of or with any court or arbitrator or governmental or regulatory authority is required for the execution, delivery and performance by the Holders of this Agreement and the consummation of the Transactions. The Undersigned is not and will not, nor is any Holder nor will any Holder be, a party to any agreement, arrangement or understanding with any individual, corporation, company, association, partnership, limited liability company, joint venture, trust or unincorporated organization, or a government or any agency or political subdivision thereof, which could result in the Undersigned or any Holder having any obligation or liability for any brokerage fees, commissions, underwriting discounts or other similar fees or expenses relating to the Transactions.

Section 2.3 Title to the Exchanged Notes. (a) Each Holder is the sole legal and beneficial owner of the Exchanged Notes (including any Accrued Interest) set forth opposite its name on Exhibit A hereto; (b) each Holder has good, valid and marketable title to its Exchanged Notes, free and clear of any Liens (other than pledges or security interests that such Holder may have created in favor of a prime broker under and in accordance with its prime brokerage agreement with such broker, which will be terminated and released prior to or at the Closing); (c) no Holder has, in whole or in part, except as described in the preceding clause (b), (i) assigned, transferred, hypothecated, pledged, exchanged or otherwise disposed of any of its Exchanged Notes or its rights, title or interest in or to its Exchanged Notes or (ii) given any person or entity (other than the Undersigned) any transfer order, power of attorney or other authority of any nature whatsoever with respect to its Exchanged Notes; (d) each Holder has the sole right to dispose or direct the disposition of the Exchanged Notes being exchanged by such Holder hereunder; and (e) upon each Holder’s delivery of its Exchanged Notes to the Company pursuant to the Transactions, good, valid and marketable title to such Exchanged Notes shall vest in the 

Company free and clear of all Liens. Such Exchanged Notes are unrestricted and freely tradeable (including pursuant to Rule 144 under the Securities Act of 1933, as amended (the “Securities Act”)) and are free and clear of any restrictions on transfer, taxes, options, warrants, purchase rights, contracts, commitments, equities, claims, and demands.

Section 2.4 Qualified Institutional Buyer. Each Holder is (a) a “qualified institutional buyer” within the meaning of Rule 144A promulgated under the Securities Act, and (b) an “Institutional Account” as defined in FINRA Rule 4512(c). The Undersigned and each Holder is aware that issuance of the Exchange Shares is being made in reliance on a private placement exemption from registration under the Securities Act. Each Holder is acquiring the Exchange Shares for its own account, and not with a view toward, or for sale in connection with, any distribution thereof in violation of any federal or state securities or “blue sky” law. Each Holder is capable of bearing the economic risks of such investment. The Holder agrees not to reoffer or resell the Exchange Shares except pursuant to an exemption from registration under the Securities Act.
Section 2.5 Sole Consideration; Full Satisfaction of Obligations under the Notes. The sole consideration paid, given or otherwise provided to the Company for the Exchange Consideration consists of the Outstanding Notes delivered to the Company pursuant to the terms hereof. Each Holder expressly acknowledges that upon issuance and delivery, as applicable, of the Exchange Consideration by the Company, the obligations of the Company to the Holder in respect of the Exchanged Notes shall have been satisfied in full.

Section 2.6 No Affiliate Status; Etc. The Undersigned is not and no Holder is, or has been at any time during the consecutive three-month period preceding the date hereof or the Closing Date, a director, officer or “affiliate” within the meaning of Rule 144 promulgated under the Securities Act (an “Affiliate”) of the Company. To the Undersigned’s and each Holder’s knowledge, no Holder acquired any of the Exchanged Notes, directly or indirectly, from an Affiliate of the Company. None of the Undersigned or any Holder “controls” (as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) the Company. A period of at least one year (calculated in the manner provided in Rule 144(d) under the Securities Act) has lapsed since the Exchanged Notes of the Holder were acquired from the Company or from a person known by the Holder or the Undersigned to be an Affiliate of the Company.

Section 2.7 No Illegal Transactions. Each of the Undersigned and each Holder has not, directly or indirectly, and no person acting on behalf of or pursuant to any understanding with it has, disclosed to a third party any information regarding the Transactions nor engaged in any transactions in the securities of the Company (including, without limitation, any Short Sales (as defined below) involving any of the Company’s securities) since the time that the Undersigned was first contacted by either the Company, the Financial Advisor or any other person regarding the Aggregated Transactions, this Agreement or an investment in the Exchange Shares or the Company. Each of the Undersigned and the Holder covenants that neither it nor any person acting on its behalf or pursuant to any understanding with it shall disclose to a third party any information regarding the Transactions or engage, directly or indirectly, in any transactions in the securities of the Company (including Short Sales) prior to the time the Aggregated Transactions are publicly disclosed by the Company. “Short Sales” include all “short sales” as defined in Rule 200 of Regulation SHO promulgated under the Exchange Act, and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps, derivatives and similar arrangements (including on a total return basis), and sales and other transactions 

through non-U.S. broker-dealers or foreign regulated brokers. Solely for purposes of this Section 2.7, subject to the Undersigned’s and each Holder’s compliance with their respective obligations under the U.S. federal securities laws and the Undersigned’s and such Holder’s respective internal policies, (a) “Undersigned” and “Holder” shall not be deemed to include any employees, subsidiaries, desks, groups or Affiliates of the Undersigned or the applicable Holder that are effectively walled off by appropriate “Fire Wall” information barriers approved by the Undersigned’s or such Holder’s respective legal or compliance department (and thus such walled off parties have not been privy to any information concerning the Aggregated Transactions), and (b) the foregoing representations and covenants of this Section 2.7 shall not apply to any transaction by or on behalf of an Account that was effected without the advice or participation of, or such Account’s receipt of information regarding the Aggregated Transactions provided by, the Undersigned or the applicable Holder.

Section 2.8 Adequate Information; No Reliance. The Undersigned acknowledges and agrees on behalf of itself and each Holder that (a) the Undersigned has been furnished with all materials it considers relevant to making an investment decision to enter into the Transactions and has had the opportunity to review (and has carefully reviewed) the Company’s filings and submissions with the SEC, including, without limitation, all information filed or furnished pursuant to the Exchange Act, (b) the Undersigned has had a full opportunity to ask questions of and receive answers from the Company or any person or persons acting on behalf of the Company concerning the Company, its business, operations, financial performance, financial condition and prospects and the terms and conditions of the Transactions, (c) the Undersigned and each Holder has had the opportunity to consult with their respective accounting, tax, financial and legal advisors to be able to evaluate the risks involved in the Transactions and to make an informed investment decision with respect to such Transactions, (d) each Holder has evaluated the tax and other consequences of the Transactions and ownership of the Exchange Shares with its tax, accounting, financial and legal advisors to be able to evaluate the risks involved in the transactions contemplated by this Agreement and to make an informed investment decision with respect to the Transactions, including, without limitation, whether the exchange contemplated hereby will result in any adverse tax consequences to the such Holder, (e) neither the Company nor the Financial Advisor is acting as a fiduciary or financial or investment advisor to the Undersigned or any Holder, (f) neither the Undersigned nor any Holder is relying, and none of them has relied, upon any statement, advice (whether accounting, tax, financial, legal or other), representation or warranty made by the Company or any of its Affiliates or representatives including, without limitation, the Financial Advisor, except for the representations and warranties expressly made by the Company in Article III, (g) neither the Financial Advisor nor any of its affiliates or any of its control persons, officers, directors or employees shall be liable to the Holders in connection with the Transactions and (h) each Holder had a sufficient amount of time to consider whether to participate in the Transactions and that neither the Company nor the Financial Advisor has placed any pressure on such Holder to respond to the opportunity to participate in the Transactions. Each of the Undersigned and each Holder is able to fend for itself in the Transactions; has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its prospective investment in the Exchange Shares; has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment; acknowledges that investment in the Exchange Shares involves a high degree of risk; has, independently and without reliance upon the Company or the Financial Advisor, made its own analysis and decision to participate in the exchange contemplated hereby on the terms and conditions set forth in this Agreement; and was given a meaningful opportunity to negotiate the terms of the Transactions.

Section 2.9 Taxpayer Information. The Undersigned agrees that it shall obtain from each Holder and deliver to the Company an accurately completed and duly executed IRS Form W-9 or applicable IRS Form W-8, as appropriate.

Section 2.10 Further Action. The Undersigned and each Holder, as applicable, agrees that it shall (a) no later than the 2:00 p.m. (New York City time) on the Business Day immediately following the date hereof, deliver to the Company the information for such Holder set forth in, and substantially in the form of, Exhibit B and (b) upon request, execute and deliver any additional documents deemed by the Company to be necessary or desirable to complete the Transactions.

Section 2.11 No Reliance. Each of the Undersigned and each Holder represents that it is not relying upon, and has not relied upon, any statement, representation or warranty made by the Financial Advisor or any of its affiliates or any of its control persons, officers, director or employees, in making the exchange of the Exchanged Notes or decision to exchange the Exchanged Notes.

Section 2.12 No Liability. Each of the Undersigned and each Holder represents that neither the Financial Advisor nor any of its affiliates or any of its control persons, officers, directors or employees shall be liable with respect to any transaction in connection with its exchange of the Exchanged Notes.

Section 2.13 Advisory Fee. Each of the Undersigned and each Holder acknowledges that it understands that the Company intends to pay the Financial Advisor a fee in respect of the Transactions.
Article III

Covenants, Representations and Warranties of the Company

The Company hereby covenants as follows, and makes the following representations and warranties, each of which is and shall be true and correct on the date hereof and at the Closing, to the Holders, and all such covenants, representations and warranties shall survive the Closing:

Section 3.1 Power and Authorization; No Consents Required. The Company is duly organized, validly existing and in good standing under the laws of the state of Delaware, and has the power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the Transactions. No consent, approval, order or authorization of, or registration, declaration or filing with any governmental entity is required on the part of the Company in connection with the execution, delivery and performance by it of this Agreement and the consummation by the Company of the Transactions, except as may be required under any state or federal securities laws or that may be obtained after the Closing without penalty or such that would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the financial position or results of operations of the Company and its subsidiaries, taken as a whole.

Section 3.2 Valid and Enforceable Agreements; No Violations. This Agreement has been duly authorized, executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as may be subject to the Enforceability Exceptions. This Agreement and consummation of the Transactions will not violate, conflict with or result in a breach of or default under (a) the Amended and Restated Articles of Incorporation or the Amended and Restated By-laws, or (b) any laws, regulations or governmental or judicial decrees, injunctions or orders applicable to the Company, except where such violations, conflicts, breaches or defaults would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the financial position or results of operations of the Company and its subsidiaries, taken as a whole, or affect the Company’s ability to consummate the Transactions in any material respect.

Section 3.3 Validity of the Exchange Shares. When delivered to the applicable Holder pursuant to the Transactions against delivery of the Exchanged Notes therefor in accordance with the terms of this Agreement, the Exchange Shares will (a) be validly issued, fully paid and non-assessable, (b) be free and clear of any Liens, including claims or rights under any voting trust agreements, shareholder agreements or other agreements and (c) will not be subject to any preemptive, participation, rights of first refusal or other similar rights (other than any such rights that will be waived prior to the Closing). Assuming the accuracy of the Undersigned’s representations and warranties hereunder, the Exchange Shares (i) will be issued in the Transactions exempt from the registration requirements of the Securities Act pursuant to Section 4(a)(2) of the Securities Act and (ii) will be issued in compliance with all applicable state and federal laws.

Section 3.4 Listing Approval. At or prior to the Closing, the Company shall have delivered a Supplemental Listing Application to the NYSE covering the Exchange Shares.

Article IV

Closing Conditions

Section 4.1 Conditions to Obligations of the Undersigned, each Holder and the Company. The obligations of the Undersigned to cause each Holder to deliver the Exchanged Notes and of the Company to deliver the Exchange Consideration are subject to the satisfaction at or prior to the Closing of the following condition precedents: (a) the representations and warranties of the Company and the Undersigned and the Holders contained in Articles III and II, respectively, shall be true and correct as of the date hereof and as of the Closing with the same effect as though such representations and warranties had been made as of the Closing and (b) no provision of any applicable law or any judgment, ruling, order, writ, injunction, award or decree of any governmental authority shall be in effect prohibiting or making illegal the consummation of the transactions contemplated by this Agreement.

Article V

Miscellaneous

Section 5.1 Notice. Any notice provided for in this Agreement shall be in writing and shall be personally delivered, mailed first class mail (postage prepaid) with return receipt requested, sent by reputable overnight courier service (charges prepaid) or delivered through electronic email (with receipt confirmed by the recipient). Notices will be deemed to have been given hereunder when delivered personally, when delivered by electronic email and receipt confirmed by the recipient, three Business Days after deposit in the U.S. mail postage prepaid with return receipt requested and one Business Day after deposit postage prepaid with a reputable overnight courier service for delivery on the next Business Day. The addresses for any such notices shall be, unless changed by the applicable party via notice to the other parties in accordance herewith:
									
			
	If to the Company:
		
	To:		DICK’S Sporting Goods, Inc.
345 Court Street
Coraopolis, PA 15108
	Attention:		John E. Hayes III – SVP, General Counsel & Corporate Secretary
	Email:		legal.department@dcgs.com
	
	With a copy to (which shall not constitute notice):
		
			Covington & Burling LLP
The New York Times Building
620 Eighth Avenue
New York, New York 10018
	Attention:		Bruce Bennett and Ronald Hewitt
	Email:		bbennett@cov.com; rhewitt@cov.com

If to the Holders, to the address on the signature page to this Agreement.

Section 5.2 Entire Agreement. This Agreement and any documents and agreements executed in connection with the Transactions embody the entire agreement and understanding of the parties hereto with respect to the Transactions and supersede all prior and contemporaneous oral or written agreements, representations, warranties, contracts, correspondence, conversations, memoranda and understandings between or among the parties or any of their agents (including the Financial Advisor), representatives or Affiliates relative to such subject matter, including, without limitation, any term sheets, emails or draft documents.

Section 5.3 Assignment; Binding Agreement. This Agreement shall inure to the benefit of and be binding upon the parties and their successors and assigns. No party shall assign this Agreement or any rights or obligations hereunder or, in the case of the Holders, any of the Exchanged Notes held by such Holders, without the prior written consent of the Company (in the case of assignment by a Holder) or the applicable Holders (in the case of assignment by the Company).

Section 5.4 Further Assurances. The parties hereto each hereby agree to execute and deliver, or cause to be executed and delivered, such other documents, instruments and agreements, and take such other actions, including giving any further assurances, as any party may reasonably request in connection with the Transactions contemplated by this Agreement. In addition, subject to the terms and conditions set forth in this Agreement, each of the parties shall use its reasonable best efforts (subject to, and in accordance with, applicable law) to take promptly, or to cause to be taken, all actions, and to do promptly, or to cause to be done, and to assist and to cooperate with the other parties in doing, all things necessary, proper or advisable under applicable laws to consummate and make effective the Transactions contemplated hereby, including the obtaining of all necessary, proper or advisable consents, approvals or waivers from third parties and the execution and delivery of any additional instruments reasonably necessary, proper or advisable to consummate the Transactions contemplated hereby. For the avoidance of doubt, the Undersigned shall cause each of the Holders to comply with such Holder’s obligations under this Agreement.

Section 5.5 Waiver; Consent. This Agreement may not be changed, amended, terminated, augmented, rescinded or discharged (other than in accordance with its terms), in whole or in part, except by a writing executed by each of the parties hereto. No waiver of any of the provisions or conditions of this Agreement or any of the rights of a party hereto shall be effective or binding unless such waiver shall be in writing and signed by the party claimed to have given or consented thereto. Except to the extent otherwise agreed in writing, no waiver of any term, condition or other provision of this Agreement, or any breach thereof shall be deemed to be a waiver of any other term, condition or provision or any breach thereof, or any subsequent breach of the same term, condition or provision, nor shall any forbearance to seek a remedy for any non-compliance or breach be deemed to be a waiver of a party’s rights and remedies with respect to such non-compliance or breach.

Section 5.6 Release. The Undersigned and each Holder hereby waives and releases, to the fullest extent permitted by law, any and all claims and causes of action it has or may have against the Company and its Affiliates, officers, directors, employees, agents and representatives based upon, relating to or arising out of nondisclosure of any information or the exchange of the Exchanged Notes pursuant to the terms hereof. The Undersigned and each Holder acknowledges that none of the Company or any of its directors, officers, subsidiaries or Affiliates has made or makes any representations or warranties, whether express or implied, of any kind except as expressly set forth in this Agreement.

Section 5.7 Termination. This Agreement may be terminated at any time prior to the Closing (a) by the mutual written consent of the parties hereto; (b) by the Company if there has been a material misrepresentation or a material breach of warranty by a Holder in the representations and warranties set forth in this Agreement or the Exhibits attached hereto; and (c) by the Undersigned if there has been a material misrepresentation or a material breach of warranty by the Company in the representations and warranties set forth in this Agreement or the Exhibits attached hereto.

Section 5.8 Construction. References in the singular shall include the plural, and vice versa, unless the context otherwise requires. References in the masculine shall include the feminine and neuter, and vice versa, unless the context otherwise requires. Headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meanings of the provisions hereof. Neither party, nor its respective counsel, shall be deemed the 

drafter of this Agreement for purposes of construing the provisions of this Agreement, and all language in all parts of this Agreement shall be construed in accordance with its fair meaning, and not strictly for or against either party.

Section 5.9 Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall in all respects be construed in accordance with and governed by the substantive laws of the State of New York, without reference to its choice of law rules (whether of the State of New York or any other jurisdiction). Any suit, action or proceeding brought by a party arising out of or in connection this Agreement may be instituted in any state or federal court in the Borough of Manhattan, New York, State of New York, and any appellate court thereof, and each party irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit, action or proceeding. Each party irrevocably waives, to the fullest extent permitted by law, any objection to any such suit, action or proceeding in such courts on the grounds of venue, residence or domicile or that any such suit, action or proceeding in such courts has been brought in an inconvenient forum. Each of the Company and the Undersigned irrevocably waive any and all right to trial by jury with respect to any legal proceeding arising out of the transactions contemplated by this Agreement.

Section 5.10 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Any counterpart or other signature hereon delivered by facsimile or any standard form of telecommunication or e-mail shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party. Unless otherwise provided in this Agreement, the words “execute”, “execution”, “signed”, and “signature” and words of similar import used in or related to any document to be signed in connection with this Agreement or any of the transactions contemplated hereby shall be deemed to include electronic signatures and the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature in ink or the use of a paper-based recordkeeping system, as applicable, to the fullest extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, and any other similar state laws based on the Uniform Electronic Transactions Act.

Section 5.11 Third Party Beneficiaries. Nothing herein shall grant to or create in any person not a party hereto (other than the Financial Advisor, solely with respect to Article II and Article III), or any such person’s dependents or heirs, any right to any benefits hereunder, and no such party shall be entitled to sue any party to this Agreement with respect thereto. Notwithstanding anything in this Agreement to the contrary, any internal or outside counsel to the Company may rely on any and all of the representations, warranties, covenants and agreements contained in this Agreement.

Section 5.12 Withholding. The Company and its agents shall be entitled to deduct and withhold from any consideration payable pursuant to this Agreement such amounts as may be required to be deducted or withheld under applicable law; provided that no amount shall be withheld in respect of U.S. federal income taxes with respect to any consideration paid to a Holder that has provided to the Company or its agents an accurately completed and duly executed IRS Form W-9 certifying that such Holder is exempt from backup withholding or an accurately completed and duly executed appropriate series of IRS Form W-8, as applicable, other than any required withholding with respect to payments characterized as interest paid to a non-

U.S. Holder that is not otherwise exempt from such withholding under applicable U.S. federal income tax law. Any such amounts withheld or deducted shall be treated for all purposes as having been paid to the Holder to whom such amounts otherwise would have been paid and such amounts shall be remitted to the appropriate taxing authority.

[Signature Pages Follow]

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the date first above written.
									
			
	DICK’S SPORTING GOODS, INC.
		
	By:		
	Name:		
	Title:		

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the date first above written.
			
	
	[LEGAL NAME OF SIGNATORY]:
	
	
	(in its capacities described in the first paragraph hereof)
	By:
	Name:
	Title:
	Address:
	Email:

EXHIBIT A
Exchanging Beneficial Owners
																								
						
	Holder Name	Exchanged Notes	Accrued Interest	Hedge Ratio	
		$	$			%

			
	EXHIBIT B
***Please provide requested information for each Holder Listed on Exhibit A***

Holder Name:

	
	Contact Information

	
	Holder Address:                                              

	
	Holder Phone Number:                                               

	
	Holder Email Address:                                               

	
	DTC Participant Information

	
	DTC Participant Number:                                               

	
	DTC Participant Name:                                               

	
	DTC Participant Phone Number:                                               

	
	DTC Participant Email:                                               

	
	FFC Account #:                                               

	
	Account # at Bank/Broker:                                               

			
	
	Bank Account Information into which Payment of the Cash Payment (and Cash in Lieu of Any Fractional Share) Shall be Made

	
	Account Name:                                               

	
	Bank:                                               

	
	Attention:                                               

	
	Account Number:                                               

	
	ABA Number:                                               

FFC Account Number:                                               

FFC Account Name:                                               

	
	SWIFT:                                               

	
	Contact Name:                                               

	
	Contact Telephone:                                               

EXHIBIT C
Exchange Procedures
NOTICE TO INVESTOR

These are the Investor Exchange Procedures for the settlement of the exchange of 3.25% Convertible Senior Notes due 2025, CUSIP 253393 AD4 (the “Exchanged Notes”) of DICK’S Sporting Goods, Inc., a Delaware corporation (the “Company”), for the Exchange Consideration (as defined in and pursuant to the Agreement between you and the Company), which is expected to occur on or about October 5, 2022. To ensure timely payment and delivery, as the case may be, of the cash and shares of Common Stock constituting the Exchange Consideration, please follow the instructions as set forth below.

These instructions supersede any prior instructions you received. Your failure to comply with these instructions may delay your receipt of the Exchange Consideration.

To deliver Exchanged Notes:

You must post, no later than 9:00 a.m., New York City time, a withdrawal request for the Exchanged Notes through The Depository Trust Company (“DTC”) via DWAC. It is important that this instruction be submitted and the DWAC posted on October 5, 2022.

To receive Exchange Consideration:

You must:

(1) provide valid wire instructions and DTC participant information to the Company in the form included as Exhibit B to the Agreement; and

(2) direct the eligible DTC participant on October 5, 2022, no later than 9:00 a.m., New York City time, to post withdrawal instructions through DTC via DWAC for the aggregate principal amount of Exchanged Notes set forth on Exhibit A of the Agreement.

American Stock Transfer & Trust Company is the Transfer Agent and Registrar for the Common Stock.

You must comply with both procedures described above to complete the Exchange and to receive the Exchange Consideration in respect of the Exchanged Notes.

Closing: October 5, 2022, after the Company receives your delivery instructions as set forth above and a withdrawal request in respect of the Exchanged Notes has been posted as specified above, and subject to the satisfaction of the conditions to Closing as set forth in your Agreement, the Company will deliver the Exchange Consideration in respect of the Exchanged Notes in accordance with the delivery instructions above.Exhibit 4.1

 

 

 

 

STOCKHOLDER
RIGHTS AGREEMENT

 

Purple
Innovation, Inc.

 

and

 

Pacific
Stock Transfer Company,

 

as
Rights Agent

 

Dated
as of September 25, 2022

 

 

 

     

     

    

 

Table
of Contents

 

	 	Page
	Section
    1.	Certain
    Definitions	1
	Section
    2.	Appointment
    of Rights Agent	7
	Section
    3.	Issuance
    of Rights Certificates	7
	Section
    4.	Form
    of Rights Certificates	8
	Section
    5.	Countersignature
    and Registration	9
	Section
    6.	Transfer,
    Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	9
	Section
    7.	Exercise
    of Rights; Exercise Price; Expiration Time of Rights	10
	Section
    8.	Cancellation
    and Destruction of Rights Certificates	11
	Section
    9.	Reservation
    and Availability of Capital Stock	11
	Section
    10.	Preferred
    Stock Record Date	12
	Section
    11.	Adjustment
    of Exercise Price, Number and Kind of Shares or Number of Rights	12
	Section
    12.	Certificate
    of Adjusted Exercise Price or Number of Shares	18
	Section
    13.	Consolidation,
    Merger or Sale or Transfer of Assets, Cash Flow or Earning Power	18
	Section
    14.	Fractional
    Rights and Fractional Shares	21
	Section
    15.	Rights
    of Action	22
	Section
    16.	Agreement
    of Rights Holders	22
	Section
    17.	Rights
    Certificate Holder Not Deemed a Stockholder	23
	Section
    18.	Concerning
    the Rights Agent	23
	Section
    19.	Merger
    or Consolidation or Change of Name of Rights Agent	24
	Section
    20.	Duties
    of Rights Agent	25
	Section
    21.	Change
    of Rights Agent	27
	Section
    22.	Issuance
    of New Rights Certificates	28
	Section
    23.	Redemption
    and Termination	28
	Section
    24.	Exchange	29
	Section
    25.	Notice
    of Certain Events	31
	Section
    26.	Notices	31
	Section
    27.	Supplements
    and Amendments	33
	Section
    28.	Successors	33
	Section
    29.	Determination
    and Action by the Board	33
	Section
    30.	Benefits
    of this Agreement	33
	Section
    31.	Tax
    Compliance and Withholding	34
	Section
    32.	Severability	34
	Section
    33.	Governing
    Law; Submission to Jurisdiction	34
	Section
    34.	Counterparts	34
	Section
    35.	Descriptive
    Headings; Interpretation	34
	Section
    36.	Force
    Majeure	34

 

Exhibit
A   -   Form of Certificate of Designation

Exhibit
B   -   Form of Rights Certificate

Exhibit
C   -   Summary of Rights to Purchase Preferred Stock

 

    i

     

    

 

STOCKHOLDER
RIGHTS AGREEMENT

 

This
STOCKHOLDER RIGHTS AGREEMENT, dated as of September 25, 2022 (this “Agreement”), is by and between Purple Innovation,
Inc., a Delaware corporation (the “Company”), and Pacific Stock Transfer Company, a registered transfer agent,
as rights agent (the “Rights Agent”).

 

W
I T N E S S E T H:

 

WHEREAS, the Company
has outstanding shares of Class A common stock, par value $0.0001 per share (“Class A Common Stock”), and Class
B common stock, par value $0.0001 per share (together with the Class A Common Stock, the “Common Stock”).

 

WHEREAS, on September
25, 2022 (the “Rights Dividend Declaration Date”), the Special Committee (the “Special Committee”)
of the board of directors of the Company (the “Board”) authorized and declared a dividend distribution of one
Right (as defined below) for each share of Common Stock, outstanding at the Close of Business (as defined below) on October 6, 2022 (the
“Record Date”), and has further authorized the issuance of one Right (as such number may hereinafter be adjusted
pursuant to Section 11) for each share of Common Stock that shall become outstanding between the Record Date (whether originally
issued or delivered from the Company’s treasury) and the earlier of the Distribution Time and the Expiration Time (as such terms
are defined below) or, in certain circumstances provided in Section 22, after the Distribution Time.

 

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

 

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

 

“Acquiring
Person” shall mean any Person which, together with all of its Related Persons, is the Beneficial Owner of the Specified
Percentage or more of the shares of Common Stock then outstanding, but shall exclude (x) Exempt Persons and (y)  Grandfathered
Persons. Notwithstanding anything in this Agreement to the contrary, no Person shall become an “Acquiring Person:”

 

(i)
as the result of an acquisition of shares of Common Stock by the Company which, by reducing the number of shares of Common Stock outstanding,
increases the percentage of the shares of Common Stock Beneficially Owned by such Person, together with all of its Related Persons, to
the Specified Percentage or more of the shares of Common Stock then outstanding; provided, however, that if a Person, together
with all of its Related Persons, becomes the Beneficial Owner of the Specified Percentage or more of the shares of Common Stock then
outstanding by reason of share acquisitions by the Company and, after such share acquisitions by the Company, becomes the Beneficial
Owner of any additional shares of Common Stock (other than pursuant to a dividend or distribution paid or made by the Company on the
outstanding Common Stock or pursuant to a split or subdivision of the outstanding Common Stock), then such Person shall be deemed to
be an “Acquiring Person” unless, upon becoming the Beneficial Owner of such additional shares of Common Stock, such Person,
together with all of its Related Persons, does not Beneficially Own the Specified Percentage or more of the shares of Common Stock then
outstanding;

 

(ii)
if (A) the Board determines in good faith that such Person has become an “Acquiring Person” inadvertently (including
because (1) such Person was unaware that it Beneficially Owned a percentage of the then outstanding shares of Common Stock that
would otherwise cause such Person to be an “Acquiring Person” or (2) such Person was aware of the extent of its Beneficial
Ownership of Common Stock but had no actual knowledge of the consequences of such Beneficial Ownership under this Agreement) and (B) such
Person divests as promptly as practicable (as determined by the Board) a sufficient number of shares of Common Stock so that such Person
would no longer be an “Acquiring Person;”

 

     

     

    

 

(iii)
solely as a result of any unilateral grant of any security by the Company, or through the exercise of any options, warrants, rights or
similar interests (including restricted stock) granted by the Company to its directors, officers or employees; provided, however,
that if a Person, together with all of its Related Persons, becomes the Beneficial Owner of the Specified Percentage or more of the shares
of Common Stock then outstanding by reason of a unilateral grant of a security by the Company, or through the exercise of any options,
warrants, rights or similar interests (including restricted stock) granted by the Company to its directors, officers and employees, then
such Person shall nevertheless be deemed to be an “Acquiring Person” if, subject to clause (ii) above, such Person, together
with all of its Related Persons, thereafter becomes the Beneficial Owner of any additional shares of Common Stock (unless upon becoming
the Beneficial Owner of additional shares of Common Stock, such Person, together with all of its Related Persons, does not Beneficially
Own the Specified Percentage or more of the Common Stock then outstanding), except as a result of (A) a dividend or distribution
paid or made by the Company on the outstanding Common Stock or a split or subdivision of the outstanding Common Stock; or (B) the
unilateral grant of a security by the Company, or through the exercise of any options, warrants, rights or similar interest (including
restricted stock) granted by the Company to its directors, officers or employees;

 

(iv)
by means of share purchases or issuances (including debt to equity exchanges), directly from the Company or indirectly through an underwritten
offering of the Company, in a transaction approved by the Board; provided, however, that a Person shall be deemed to be
an “Acquiring Person” if such Person (A) is or becomes the Beneficial Owner of the Specified Percentage or more of the
shares of Common Stock then outstanding following such transaction and (B) following such transaction, becomes the Beneficial Owner
of any additional shares of Common Stock without the prior written consent of the Company and then Beneficially Owns the Specified Percentage
or more of the shares of Common Stock then outstanding; or

 

(v)
if such Person is a bona fide swaps dealer who has become an “Acquiring Person” as a result of its actions in the ordinary
course of its business that the Board determines, in its sole discretion, were taken without the intent or effect of evading or assisting
any other Person to evade the purposes and intent of this Agreement, or otherwise seeking to control or influence the management or policies
of the Company.

 

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

 

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

 

“Affiliate”
shall have the meaning ascribed to such term in Rule 12b-2 of the Exchange Act Regulations as in effect on the date of this Agreement.

 

“Agreement”
shall have the meaning set forth in the preamble to this Agreement.

 

“Associate”
shall have the meaning ascribed to such term in Rule 12b-2 of the Exchange Act Regulations as in effect on the date of this Agreement.

 

A
Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “Beneficially Own”
and have “Beneficial Ownership” of any securities (that are as such, “Beneficially Owned”):

 

(i)
that such Person or any of such Person’s Related Persons beneficially owns, directly or indirectly, as determined pursuant to Rule 13d-3
of the Exchange Act Regulations as in effect on the date of this Agreement;

 

    2

     

    

 

(ii)
that such Person or any of such Person’s Related Persons, directly or indirectly, has the right or obligation to acquire (whether
such right is exercisable, or such obligation is required to be performed, immediately or only after the passage of time or the satisfaction
of other conditions) pursuant to any agreement, arrangement or understanding (whether or not in writing and other than customary agreements
with and between underwriters and selling group members with respect to a bona fide public offering of securities) or upon the exercise
of conversion rights, exchange rights, rights (other than the Rights), warrants or options, or otherwise; provided, however,
that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” (A) securities tendered
pursuant to a tender or exchange offer made in accordance with the Exchange Act Regulations by or on behalf of such Person or any of
such Person’s Related Persons until such tendered securities are accepted for purchase or exchange, (B) securities issuable
upon exercise of Rights at any time prior to the occurrence of a Triggering Event, (C) securities issuable upon exercise of Rights
from and after the occurrence of a Triggering Event which Rights were acquired by such Person or any such Person’s Related Persons
prior to the Distribution Time or pursuant to ‎Section 22 (the “Original Rights”) or pursuant
to ‎Section 11(i) in connection with an adjustment made with respect to any Original Rights or (D) securities which such
Person or any of such Person’s Related Persons may acquire, does or do acquire or may be deemed to have the right to acquire, pursuant
to any merger or other acquisition agreement between the Company and such Person (or one or more of such Person’s Related Persons),
if such agreement has been approved by the Board prior to such Person’s becoming an Acquiring Person;

 

(iv)
that are Beneficially Owned, directly or indirectly, by any other Person (or any Related Person of such Person) with which such Person
(or any of such Person’s Related Persons) has any agreement, arrangement or understanding (whether or not in writing and other
than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering of
securities); provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially
own,” any security if such agreement, arrangement or understanding (1) arises solely from a revocable proxy or consent given
in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the Exchange
Act Regulations and (2) is not also then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable
or successor report); or

 

(v)
that are Beneficially Owned, directly or indirectly, by a Counterparty (or any of such Counterparty’s Related Persons) under any
Derivatives Contract (without regard to any short or similar position under the same or any other Derivatives Contract) to which such
Person or any of such Person’s Related Persons is a Receiving Party; provided, however, that the number of shares
of Common Stock that a Person is deemed to Beneficially Own pursuant to this clause (v) in connection with a particular Derivatives
Contract shall not exceed the number of Notional Common Shares with respect to such Derivatives Contract; 

 

provided, further,
that the number of securities Beneficially Owned by each Counterparty (including its Related Persons) under a Derivatives Contract shall,
for purposes of this clause (v) include all securities that are Beneficially Owned, directly or indirectly, by any other Counterparty
(or any of such other Counterparty’s Related Persons) under any Derivatives Contract to which such first Counterparty (or any of
such first Counterparty’s Related Persons) is a Receiving Party, with this proviso being applied to successive Counterparties as
appropriate; provided, however, that (x) nothing in this definition shall cause a Person engaged in business as an
underwriter of securities to be the “Beneficial Owner” of, or to “beneficially own,” any securities acquired
through such Person’s participation in good faith in a firm commitment underwriting until the expiration of forty (40) days
after the date of such acquisition and (y) no officer or director of the Company shall be deemed to Beneficially Own any securities of
any other Person solely by virtue of any actions that such officer or director takes in such capacity.

 

With
respect to any Person, for all purposes of this Agreement, any calculation of the number of shares of Common Stock outstanding at any
particular time, including for purposes of determining the particular percentage of the outstanding shares of Common Stock of which such
Person is the Beneficial Owner, shall include the number of shares of Common Stock not outstanding at the time of such calculation that
such Person is otherwise deemed to Beneficially Own for purposes of this Agreement; provided, however, that the number
of shares of Common Stock not outstanding that such Person is otherwise deemed to Beneficially Own for purposes of this Agreement shall
not be included for the purpose of computing the percentage of the outstanding shares of Common Stock Beneficially Owned by any other
Person (unless such other Person is also deemed to Beneficially Own, for purposes of this Agreement, such shares of Common Stock not
outstanding).

 

    3

     

    

 

“Board”
shall have the meaning set forth in the recitals to this Agreement.

 

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

 

“Charter”
shall mean the Company’s Second Amended and Restated Certificate of Incorporation, as amended from time to time.

 

“Class A Common
Stock” shall have the meaning set forth in the recitals to this Agreement.

 

“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.

 

“Closing
Price” in respect of any security for any day shall mean the last sale price, regular way, or, in case no such sale takes
place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to trading on the Nasdaq or the NYSE or, if such shares of
common stock (or other security) are not listed or admitted to trading on the Nasdaq or the NYSE, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal national securities exchange on which such shares of
common stock (or other security) are listed or admitted to trading or, if such shares of common stock (or other security) are not listed
or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and
low asked prices in the over-the-counter market, as reported by the OTC Bulletin Board service or such other quotation system then in
use, or, if on any such date such shares of common stock (or other security) are not quoted by any such organization, the average of
the closing bid and asked prices as furnished by a professional market maker making a market in such common stock (or other security)
selected by the Board. If on any such date no such market maker is making a market in such common stock (or other security), the fair
value of such common stock (or other security) on such date as determined in good faith by the Board shall be used.

 

“Common
Stock” shall have the meaning set forth in the recitals to this Agreement.

 

“Common
Stock Equivalents” shall have the meaning set forth in ‎Section 11(a)(iii).

 

“Company”
shall have the meaning set forth in the preamble to this Agreement.

 

“Counterparty”
shall have the meaning set forth in the definition of “Derivatives Contract.”

 

“Current
Market Price” shall have the meaning set forth in ‎Section 11(d).

 

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

 

“Derivatives
Contract” shall mean a contract, including all related documentation, between two parties (the “Receiving Party”
and the “Counterparty”) that is designed to produce economic benefits and risks to the Receiving Party that
correspond substantially to the ownership by the Receiving Party of a number of shares of Common Stock specified or referenced in such
contract (the number corresponding to such economic benefits and risks, the “Notional Common Shares”), regardless
of whether obligations under such contract are required or permitted to be settled through the delivery of cash, shares of Common Stock
or other property, without regard to any short position under the same or any other Derivatives Contract. For the avoidance of doubt,
interests in broad-based index options, broad-based index futures and broad-based publicly traded market baskets of stocks approved for
trading by the appropriate federal governmental authority shall not be deemed “Derivatives Contracts.”

 

“Distribution
Time” shall mean the earlier of (i) the Close of Business on the tenth (10th) day after the Stock Acquisition
Date (or, if the tenth (10th) day after the Stock Acquisition Date occurs before the Record Date, the Close of Business on the Record
Date) or (ii) the Close of Business on the tenth (10th) Business Day (or, if such tenth (10th) Business Day occurs before
the Record Date, the Close of Business on the Record Date), or such later date as may be determined by action of the Board prior to such
time as any Person becomes an Acquiring Person, after the date that a tender or exchange offer by any Person (other than any Exempt Person)
is first published or sent or given within the meaning of Rule 14d-2(a) of the Exchange Act Regulations, if upon consummation thereof,
such Person would become an Acquiring Person.

 

    4

     

    

 

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

 

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

 

“Exchange
Act Regulations” shall mean the general rules and regulations promulgated under the Exchange Act.

 

“Exchange
Ratio” shall have the meaning set forth in ‎Section 24(a).

 

“Exempt
Person” shall mean (i) the Company or any Subsidiary of the Company, (ii) any officer, director or employee of
the Company or of any Subsidiary of the Company solely in respect of such Person’s status or authority as such (including any fiduciary
capacity) or (iii) any employee benefit plan of the Company or of any Subsidiary of the Company or any entity or trustee holding
(or acting in a fiduciary capacity in respect of) shares of capital stock of the Company for or pursuant to the terms of any such plan
or for the purpose of funding other employee benefits for employees of the Company or any Subsidiary of the Company.

 

“Exercise
Price” shall have the meaning set forth in ‎Section 4(a).

 

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

 

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

 

“Flip-in
Event” shall have the meaning set forth in ‎Section 11(a)(ii).

 

“Flip-in
Trigger Date” shall have the meaning set forth in ‎Section 11(a)(iii).

 

“Flip-over
Event” shall have the meaning set forth in ‎Section 13(a).

 

“Flip-over
Party” shall have the meaning set forth in ‎Section 13(b).

 

“Flip-over
Stock” shall mean the capital stock (or similar equity interest) with the greatest voting power in respect of the election
of directors (or other Persons similarly responsible for the direction of the business and affairs) of the Flip-over Party.

 

“Grandfathered
Person” shall mean (x) any Person who or which, together with all of such Person’s Related Persons, is, as of
immediately prior to the first public announcement of the adoption of this Agreement, the Beneficial Owner of the Specified
Percentage or more of the shares of Common Stock then outstanding and (y) any Person who or which becomes the Beneficial Owner of
the Specified Percentage or more of the shares of Common Stock then outstanding as the result of the acquisition of Beneficial
Ownership of shares of Common Stock from an individual described in the preceding clause (x) if such acquisition occurs upon such
individual’s death pursuant to such individual’s will or pursuant to a charitable trust created by such individual for
estate planning purposes. A Person ceases to be a “Grandfathered Person” if and when (i) such Person becomes the
Beneficial Owner of less than the Specified Percentage of the shares of Common Stock then outstanding; or (ii) such Person
increases such Person’s Beneficial Ownership of shares of Common Stock to an amount equal to or greater than the greater of
(A) the Specified Percentage of the shares of Common Stock then outstanding and (B) the sum of (1) the lowest
Beneficial Ownership of such Person as a percentage of the shares of Common Stock outstanding as of any time from and after the
first public announcement of the adoption of this Agreement (other than as a result of an acquisition of shares of Common Stock by
the Company) plus (2) one share of the then outstanding shares of Common Stock. The foregoing definition shall grandfather the
security or instrument underlying such Beneficial Ownership only in the type and form as of the date of this Agreement and shall not
grandfather any subsequent change, modification, swap or exchange of such security or instrument underlying such Beneficial
Ownership into a different type or form of security or instrument (unless such change, modification, swap or exchange is
contemplated explicitly by the terms of such security or instrument (e.g., as would be the case for options to purchase
shares of Common Stock, in which case the shares of Common Stock purchased upon the exercise of such options would be
grandfathered)). For the avoidance of doubt, cash-settled swap or exchange contracts for differences in the price of shares of
Common Stock or other equity securities of the Company shall not be grandfathered under this Agreement.

 

“Nasdaq”
shall mean the Nasdaq Stock Market.

 

    5

     

    

 

“Notional
Common Shares” shall have the meaning set forth in the definition of “Derivatives Contract.”

 

“NYSE”
shall mean the New York Stock Exchange.

 

“Person”
shall mean any individual, partnership, firm, corporation, limited liability company, association, trust, limited liability partnership,
joint venture, unincorporated organization or other entity, including (i) any syndicate or group deemed to be a “person”
under Section 13(d)(3) of the Exchange Act and any group under Rule 13d-5(b) of the Exchange Act Regulations and (ii) any successor
(by merger or otherwise) of such entity.

 

“Preferred
Stock” shall mean the Series A Junior Participating Preferred Stock, par value $0.0001 per share, of the Company
having the designations, preferences and rights set forth in the form of certificate of designation attached to this Agreement as Exhibit
A, and, to the extent that there is not a sufficient number of shares of Series A Junior Participating Preferred Stock
authorized to permit the full exercise of the Rights, any other series of preferred stock, par value $0.0001 per share, of the
Company designated for such purpose containing terms substantially similar to the terms of the Series A Junior Participating
Preferred Stock.

 

“Receiving
Party” shall have the meaning set forth in the definition of “Derivatives Contract.”

 

“Record
Date” shall have the meaning set forth in the recitals to this Agreement.

 

“Redemption
Period” shall have the meaning set forth in ‎Section 23(a).

 

“Redemption
Price” shall have the meaning set forth in ‎Section 23(a).

 

“Related
Person” shall mean, as to any Person, any Affiliate or Associate of such Person.

 

“Right”
shall mean a right initially representing the right to purchase one one-thousandth of one share of Series A Junior Participating
Preferred Stock of the Company having the rights, powers and preferences set forth in the form of certificate of designation
attached hereto as Exhibit A, upon the terms and subject to the conditions set forth in this Agreement.

 

“Rights
Agent” shall have the meaning set forth in the preamble to this Agreement.

 

“Rights
Certificates” shall have the meaning set forth in ‎Section 3(b).

 

“Rights
Dividend Declaration Date” shall have the meaning set forth in the recitals to this Agreement.

 

“Special Committee” shall have the meaning
set forth in the recitals to this Agreement.

 

“Specified
Percentage” shall mean 20% (twenty percent) when referring to the Beneficial Ownership of any Person.

 

“Spread”
shall have the meaning set forth in ‎Section 11(a)(iii).

 

“Stock
Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall include
a report filed pursuant to ‎Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that an Acquiring
Person has become such, or such other date, as determined by the Board, on which a Person has become an Acquiring Person.

 

    6

     

    

 

“Subsidiary”
shall mean, with reference to any Person, any other Person of which (i) a majority of the voting power of the voting securities
or equity interests is Beneficially Owned, directly or indirectly, by such first-mentioned Person or otherwise controlled by such first-mentioned
Person or (ii) an amount of voting securities or equity interests sufficient to elect at least a majority of the directors (or other
Persons similarly responsible for the direction of the business and affairs of such other Person) of such other Person is Beneficially
Owned, directly or indirectly, by such first-mentioned Person, or otherwise controlled by such first-mentioned Person.

 

“Substitution
Period” shall have the meaning set forth in ‎Section 11(a)(iii).

 

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

 

“Trading
Day” shall mean a day on which the principal national securities exchange on which shares of an issuer’s common stock
(or other security) are listed or admitted to trading is open for the transaction of business or, if such shares of common stock (or
other security) are not listed or admitted to trading on any national securities exchange, a Business Day.

 

“Triggering
Event” shall mean a Flip-in Event or a Flip-over Event.

 

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

 

“Trust
Agreement” shall have the meaning set forth in ‎Section 24(a).

 

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 of this Agreement, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint
such co-Rights Agents as it may deem necessary or desirable (the term “Rights Agent” being used herein to refer, collectively,
to the Rights Agent together with any such co-Rights Agents), upon ten (10) days’ prior written notice to the 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 reasonably determines, provided that such duties are consistent with the terms and conditions of this Agreement
and that contemporaneously with such appointment the Company shall notify, in writing, the Rights Agent and any co-Rights Agents of any
such duties. 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 Agents.

 

Section 3.
Issuance of Rights Certificates.

 

(a)
Until the earlier of the Distribution Time and the Expiration Time, (i) with respect to shares of Common Stock outstanding as of the
Record Date, or which become outstanding subsequent to the Record Date, the Rights shall be evidenced by the certificates for shares
of Common Stock registered in the names of the holders of shares of Common Stock (or, in the case of uncertificated shares of Common
Stock, by the book-entry account that evidences record ownership of such shares) (which certificates or book entries for Common Stock
shall be deemed also to be certificates or book entries for Rights), and not by separate certificates (or book entries), (ii) the surrender
for transfer of any certificate representing shares of Common Stock (or, in the case of uncertificated shares of Common Stock, the effectuation
of a book-entry transfer of such shares of Common Stock) in respect of which Rights have been issued shall also constitute the transfer
of the Rights associated with such shares of Common Stock and (iii) the Rights shall be transferable only in connection with the transfer
of the underlying shares of Common Stock. As of and after the Distribution Time, the Rights shall be evidenced solely by such Rights
Certificates, and the Rights Certificates and the Rights shall be transferable separately from the Common Stock.

 

(b)
The Company shall promptly notify the Rights Agent of a Distribution Time and request its transfer agent (if its transfer agent is not
the Rights Agent) to give the Rights Agent a stockholder list together with all other relevant information. As soon as practicable after
the Rights Agent is notified of the Distribution Time and receives such information, the Rights Agent shall send by first-class, insured,
postage prepaid mail, to each record holder of the Common Stock as of the Close of Business on the Distribution Time, at the address
of such holder shown on the records of the Company, one or more Rights certificates, in substantially the form of Exhibit B
(the “Rights Certificates”), evidencing one Right for each share of Common Stock so held, subject to adjustment
as provided herein. To the extent that a Flip-in Event has also occurred, the Company may implement such procedures, as it deems appropriate
in its sole discretion (but which do not affect the rights, duties, liabilities or responsibilities of the Rights Agent), to minimize
the possibility that Rights Certificates are received by Persons whose Rights would be null and void under ‎Section 7(e)
and provide reasonably prompt written notice thereof to the Rights Agent. In the event that any adjustment in the number of Rights
per share of Common Stock has been made pursuant to ‎Section 11, at the time of distribution of the Rights Certificates,
the Company shall make the necessary and appropriate rounding adjustments (in accordance with ‎Section 14(a)) so that
Rights Certificates representing only whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights.

 

    7

     

    

 

(c)
As soon as practicable after the Record Date, the Company shall mail a copy of a Summary of Rights, in substantially the form
attached as Exhibit C (the “Summary of Rights”), to each holder of Rights as of the Close of
Business on the Record Date, at the holder’s address as shown by records of the Company.

 

(d)
Rights shall be issued in respect of all shares of Common Stock that are issued (whether originally issued or from the Company’s
treasury) after the Record Date but prior to the earlier of the Distribution Time or the Expiration Time or, in certain circumstances
provided in ‎Section 22, after the Distribution Time. Certificates representing such shares of Common Stock shall also
be deemed to be certificates for Rights and shall bear a legend substantially in the following form:

 

This
certificate also evidences and entitles the holder hereof to certain rights (the “Rights”) as set forth in
the Stockholder Rights Agreement, dated as of September 25, 2022 (as the same may be amended from time to time, the “Rights
Agreement”), by and between Purple Innovation, Inc., a Delaware corporation (the “Company”),
and Pacific Stock Transfer Company (or any successor rights agent), the terms of which are hereby incorporated herein by reference and
a copy of which is on file at the principal executive offices of the Company. Under certain circumstances, as set forth in the Rights
Agreement, the Rights shall be evidenced by separate certificates and will no longer be evidenced by this certificate. The Company shall
mail to the holder of this certificate a copy of the Rights Agreement, as in effect on the date of mailing, without charge, promptly
after receipt of a written request therefor. 

 

Under certain circumstances set forth in the Rights Agreement, any Rights that are
Beneficially Owned by any Person who is or was an Acquiring Person or a Related Person of an Acquiring Person (as such terms are defined
in the Rights Agreement) or certain transferees of an Acquiring Person or of any such Related Person will become null and void and will
no longer be transferable.

 

With
respect to any book-entry shares of Common Stock, such legend shall be included in a notice to the record holder of such shares to the
extent required by applicable law. With respect to certificated shares of Common Stock containing the foregoing legend, or any notice
of the foregoing legend delivered to record holders of book-entry shares, until the earlier of (i) the Distribution Time or (ii) the
Expiration Time, the Rights associated with such shares of Common Stock represented by certificates or registered in book-entry form
shall be evidenced by such certificates alone, or such registration in book-entry form alone, and registered holders of such shares of
Common Stock shall also be the registered holders of the associated Rights, and the transfer of any of such shares of Common Stock represented
by such certificates or book-entries shall also constitute the transfer of the Rights associated with the shares of Common Stock represented
by such certificates or book entries. In the event the Company purchases or acquires any shares of Common Stock after the Record Date
but prior to the Distribution Time, any Rights associated with such shares shall be deemed cancelled and retired so that the Company
shall not be entitled to exercise any Rights associated with shares of Common Stock that are no longer outstanding. The omission of any
legend described in this ‎Section 3 shall not affect the status, validity or enforceability of any part of this Agreement
or the rights of any holder of the Rights.

 

(e)
Notwithstanding any other provision hereof, the Company and the Rights Agent may amend this Agreement to provide for uncertificated Rights
in addition to or in lieu of Rights evidenced by Rights Certificates, to the extent permitted by applicable law.

 

Section 4.
Form of Rights Certificates.

 

(a)
The Rights Certificates (and the forms of election to purchase and of assignment to be printed on the reverse thereof), when and if issued,
shall each be substantially in the form set forth in Exhibit B and may have such marks of identification or designation and
such legends, summaries or endorsements printed thereon as the Company may deem appropriate (but which do not affect the rights, duties,
liabilities or responsibilities of the Rights Agent) and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which the Rights may from time to time be listed, or to conform to customary usage. Subject to ‎Section 11
and ‎Section 22, the Rights Certificates, whenever distributed, shall be dated as of the Record Date or, in the case
of Rights with respect to shares of Common Stock issued or becoming outstanding after the Record Date, the same date as the date of the
stock certificate evidencing such shares (or, with respect to uncertificated shares of Common Stock, the date of the issuance of such
shares of Common Stock indicated in the books of the registrar and transfer agent), and on their face shall entitle the holders thereof
to purchase such number of one one-thousandths of a share of Preferred Stock as shall be set forth therein at the price set forth therein
(such exercise price per one one-thousandth of a share, the “Exercise Price”), but the amount and type of securities
purchasable upon the exercise of each Right and the Exercise Price thereof shall be subject to adjustment from time to time as provided
in ‎Section 11 and ‎Section 13(a).

 

    8

     

    

 

(b)
Any Rights Certificate issued pursuant to ‎Section 3(a), ‎Section 11(a)(ii) or ‎Section 22
that represents Rights Beneficially Owned by any Person known to be (i) an Acquiring Person or any Related Person of an Acquiring
Person, (ii) a transferee of an Acquiring Person (or of any such Related Person) who becomes a transferee after the Acquiring Person
becomes such or (iii) a transferee of an Acquiring Person (or of any such Related 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 any Related Person thereof) to holders of equity interests in such Acquiring Person (or any Related Person
thereof) or to any Person with whom such Acquiring Person (or any Related Person thereof) has any continuing agreement, arrangement or
understanding, whether or not in writing, regarding the transferred Rights or (B) a transfer which the Board has determined is part
of a plan, agreement, arrangement or understanding which has as a primary purpose or effect of avoidance of ‎Section 7(e),
and any Rights Certificate issued pursuant to ‎Section 6 or ‎Section 11 upon transfer, exchange, replacement
or adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent feasible) the following legend:

 

The
Rights represented by this Rights Certificate are or were Beneficially Owned by an Acquiring Person or a Related Person of an Acquiring
Person (as such terms are defined in the Rights Agreement, dated as of September 25, 2022 (as the same may be amended from time to time,
the “Rights Agreement”), by and between Purple Innovation, Inc. and Pacific Stock Transfer Company (or any
successor rights agent)) or a certain transferee of an Acquiring Person or of any such Related Person. Accordingly, this Rights Certificate
and the Rights represented hereby will become null and void in the circumstances specified in ‎Section 7(e) of such Rights
Agreement.

 

The
absence of the foregoing legend on any Rights Certificate shall in no way affect any of the other provisions of this Agreement, including
the provisions of ‎Section 7(e).

 

Section 5.
Countersignature and Registration.

 

(a)
The Rights Certificates shall be executed on behalf of the Company by its Chief Executive Officer, President, Chief Financial Officer,
Secretary or Treasurer, or any other authorized officer of the Company, either manually or by facsimile or other electronic signature.
The Rights Certificates shall be countersigned manually or by facsimile or other electronic signature by the Rights Agent and shall not
be valid for any purpose unless so countersigned. In case any officer of the Company who shall have signed or attested any of the Rights
Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and issuance and delivery by the
Company, such Rights Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with
the same force and effect as though the person who signed or attested such Rights Certificates had not ceased to be such officer of the
Company; and any Rights Certificates may be signed or attested on behalf of the Company by any person who, at the actual date of the
execution of such Rights Certificate, shall be a proper officer of the Company to sign or attest such Rights Certificate, although at
the date of the execution of this Agreement any such person was not such an officer.

 

(b)
Following the Distribution Time, the Rights Agent shall keep or cause to be kept, at its principal office or offices designated as the
appropriate place for surrender of Rights Certificates upon exercise or transfer, books for registration and transfer of the Rights Certificates
issued hereunder. Such books shall show the names and addresses of the respective holders of the Rights Certificates, the number of Rights
evidenced on its face by each of the Rights Certificates and the certificate number and the date of each of the Rights Certificates.

 

Section 6.
Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates.

 

(a)
Subject to Section 4(b), Section 7(e) and Section 14, at any time after the Close of Business on
the Distribution Time, and at or prior to the Close of Business on the Expiration Time, any Rights Certificate (other than Rights
Certificates representing Rights that have become null and void pursuant to Section 7(e), that have been redeemed
pursuant to Section 23 or that have been exchanged pursuant to Section 24) may be transferred, split up,
combined or exchanged for another Rights Certificate, entitling the registered holder to purchase a like number of one
one-thousandths of a share of Preferred Stock (or, following a Triggering Event, Class A Common Stock, other securities, cash or
other assets, as the case may be) as the Rights Certificate surrendered then entitled such holder (or former holder in the case of a
transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights Certificate shall make
such request in writing delivered to the Rights Agent and shall surrender the Rights Certificate to be transferred, split up,
combined or exchanged at the offices of the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall
be obligated to take any action whatsoever with respect to the transfer, split up, combination or exchange of any such surrendered
Rights Certificate until the registered holder has properly completed and duly executed the certificate contained in the form of
assignment on the reverse side of such Rights Certificate and has provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Related Persons thereof as the Company or the Rights Agent reasonably requests.
Thereupon the Rights Agent shall, subject to Section 4(b), Section 7(e), Section 14 and Section 24,
countersign and deliver to the Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so
requested. The Company may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of Rights Certificates. If and to the extent the Company does
require payment of any such taxes or charges, the Company shall give the Rights Agent prompt written notice thereof and the Rights
Agent shall not deliver any Rights Certificate unless and until it is satisfied that all such payments have been made, and the
Rights Agent shall forward any such sum collected by it to the Company or to such Persons as the Company specifies by written
notice. The Rights Agent shall have no duty or obligation to take any action with respect to a Rights holder under this Agreement
that requires the payment by such Rights holder of any tax or governmental charge unless and until the Rights Agent is satisfied
that all such taxes and charges have been paid.

 

    9

     

    

 

(b)
Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation
of a valid Rights Certificate, and, in case of loss, theft or destruction, of indemnity or security satisfactory to them, and reimbursement
to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation
of the Rights Certificates if mutilated, the Company shall prepare, execute and deliver a new Rights Certificate of like tenor to the
Rights Agent for countersignature and delivery to the registered owner in lieu of the Rights Certificate so lost, stolen, destroyed or
mutilated.

 

Section 7.
Exercise of Rights; Exercise Price; Expiration Time of Rights.

 

(a) Subject to Section 7(e),
the registered holder of any Rights Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein
including the restrictions on exercisability set forth in Section 7(c), Section 9(c), Section 11(a)(iii)
and Section 23(a)) in whole or in part at any time after the Distribution Time upon surrender of the Rights Certificate,
with the form of election to purchase and the certificate on the reverse side thereof properly completed and duly executed, to the
Rights Agent at the principal office or offices of the Rights Agent designated for such purpose, accompanied by a signature
guarantee and such other documentation as the Rights Agent may reasonably request together with payment of the aggregate Exercise
Price with respect to the total number of one one-thousandths of a share of Preferred Stock (or Class A Common Stock, other
securities, cash or other assets, as the case may be) as to which such surrendered Rights are then exercisable, at or prior to the
earliest of (i) the Close of Business on September 25, 2023 (the “Final Expiration Time”),
(ii) the time at which the Rights are redeemed as provided in Section 23, (iii) the time at which such Rights
are exchanged pursuant to Section 24, or (iv) the closing of any merger or other acquisition transaction involving
the Company pursuant to an agreement of the type described in Section 13(f), at which time, the Rights are terminated
(the earliest of (i), (ii), (iii), and (iv) being herein referred to as the “Expiration Time”).

 

(b) The
Exercise Price for each one one-thousandth of a share of Preferred Stock pursuant to the exercise of a Right shall initially be $20.00,
and shall be subject to adjustment from time to time as provided in Section 11 and Section 13(a) and shall be
payable in accordance with Section 7(c).

 

(c) Upon
receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase and the certificate properly completed
and duly executed, accompanied by payment, with respect to each Right so exercised, of the Exercise Price per one one-thousandth of a
share of Preferred Stock (or other securities, cash or other assets, as the case may be) to be purchased as set forth below and an amount
equal to any applicable transfer tax or charge required to be paid by the holder of the Rights Certificate in accordance with Section 9(e),
the Rights Agent shall, subject to Section 20(k), thereupon promptly (i) (A) requisition from any transfer agent
of the shares of Preferred Stock (or make available, if the Rights Agent is the transfer agent for such shares) certificates for the total
number of one one-thousandths of a share of Preferred Stock (or fractions of shares that are integral multiples of one one-thousandth
of a share of Preferred Stock) to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such
requests or (B) if the Company has elected to deposit the total number of shares of Preferred Stock issuable upon exercise of the
Rights hereunder with a depositary agent, requisition from the depositary agent depositary receipts representing such number of one one-thousandths
of a share of Preferred Stock as are to be purchased (in which case certificates for the shares of Preferred Stock 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 such request, (ii) requisition from the Company the amount of cash, if any, to be paid in lieu of fractional shares in accordance
with Section 14, (iii) after receipt of such certificates or depositary receipts, cause the same to be delivered to or
upon the order of the registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder
and (iv) after receipt thereof, deliver such cash, if any, to or upon the order of the registered holder of such Rights Certificate.
The payment of the Exercise Price (as such amount may be reduced pursuant to Section 11(a)(iii)) shall be made in cash or
by certified bank check or bank draft payable to the order of the Company. In the event that the Company is obligated to issue other securities
(including Class A Common Stock) of the Company, pay cash and/or distribute other property pursuant to Section 11(a), the
Company shall make all arrangements necessary so that such other securities, cash and/or other property are available for distribution
by the Rights Agent, if and when necessary to comply with the terms of this Agreement, and until so received, the Rights Agent shall have
no duties or obligations with respect to such securities, cash and/or other property. The Company reserves the right to require prior
to the occurrence of a Triggering Event that, upon any exercise of Rights, a number of Rights be exercised so that only whole shares of
Preferred Stock would be issued.

 

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

 

    10

     

    

 

(e)
Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Flip-in Event, any Rights Beneficially
Owned by (i) an Acquiring Person or any Related Person of an Acquiring Person, (ii) a transferee of an Acquiring Person (or
of any such Related Person) who becomes a transferee after the Acquiring Person becomes such or (iii) a transferee of an Acquiring
Person (or of any such Related 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 any Related
Person thereof) to holders of equity interests in such Acquiring Person (or any Related Person thereof) or to any Person with whom such
Acquiring Person (or any Related Person thereof) has any continuing agreement, arrangement or understanding, whether or not in writing,
regarding the transferred Rights or (B) a transfer which the Board has determined is part of an agreement, arrangement or understanding
which has as a primary purpose or effect the avoidance of this ‎Section 7(e), 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 Agreement or otherwise. The Company shall notify the Rights Agent in writing when this ‎Section 7(e) applies
and shall use commercially reasonable efforts to ensure that the provisions of this ‎Section 7(e) and ‎Section 4(b)
are complied with, but neither the Company nor the Rights Agent shall have any liability to any holder of Rights or other Person
(without limiting the rights of the Rights Agent under ‎Section 18) as a result of the Company’s failure to make
any determinations with respect to an Acquiring Person or any of its Related Persons or transferees hereunder.

 

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

 

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

 

Section 9.
Reservation and Availability of Capital Stock.

 

(a) The
Company shall cause to be reserved and kept available out of its authorized and unissued shares of Preferred Stock (and, following the
occurrence of a Triggering Event, out of its authorized and unissued shares of Class A Common Stock and/or other securities, or out of
its authorized and issued shares held in its treasury), the number of shares of Preferred Stock (and, following the occurrence of a Triggering
Event, Class A Common Stock and/or other securities, if any) that, as provided in this Agreement, including Section 11(a)(iii),
shall be sufficient to permit the exercise in full of all outstanding Rights.

 

(b) So long as the
shares of Preferred Stock (and, following the occurrence of a Triggering Event, Class A Common Stock and/or other securities, if
any) issuable and deliverable upon the exercise of the Rights may be listed on any national securities exchange, the Company shall
use commercially reasonable efforts to cause, from and after such time as the Rights become exercisable, all shares (and other
securities, if any) reserved for such issuance to be listed on such exchange, upon official notice of issuance upon such
exercise.

 

(c)
If the Company is required to file a registration statement pursuant to the Act with respect to the securities purchasable upon exercise
of the Rights, the Company shall use commercially reasonable efforts to (i) prepare and file, as soon as practicable following the
earliest date after the first occurrence of a Flip-in Event on which the consideration to be delivered by the Company upon exercise of
the Rights has been determined in accordance with ‎Section 11(a)(iii), or as soon as is required by applicable law following
the Distribution Time, as the case may be, a registration statement under the Act with respect to the securities purchasable upon exercise
of the Rights on an appropriate form, (ii) cause such registration statement to become effective as soon as practicable after such
filing and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the requirements
of the Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities and (B) the
Expiration Time. The Company shall also take such action as may be appropriate under, or to ensure compliance with, the securities or
“blue sky” laws of the various states in connection with the exercisability of the Rights. The Company may temporarily suspend
(with prompt written notice to the Rights Agent), for a period of time not to exceed ninety (90) days after the date set forth in
clause (i) of the first sentence of this ‎Section 9(c), the exercisability of the Rights in order to prepare and
file such registration statement and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement
(with prompt written notice thereof to the Rights Agent) stating that the exercisability of the Rights has been temporarily suspended,
as well as a public announcement (with prompt written notice thereof to the Rights Agent) at such time as the suspension is no longer
in effect. In addition, if the Company determines that a registration statement is required following the Distribution Time, and a Flip-in
Event has not occurred, the Company may temporarily suspend (with prompt written notice thereof to the Rights Agent) the exercisability
of Rights until such time as a registration statement has been declared effective. Notwithstanding any provision of this Agreement to
the contrary, the Rights shall not be exercisable in any jurisdiction if the requisite qualification or exemption in such jurisdiction
shall not have been obtained, the exercise thereof shall not be permitted under applicable law or a registration statement shall not
have been declared effective.

 

    11

     

    

 

(d) The Company shall
take all such actions as may be necessary to ensure that all one one-thousandths of a share of Preferred Stock (and, following the
occurrence of a Triggering Event, shares of Class A Common Stock and/or other securities, if any) delivered upon exercise of Rights
shall, at the time of delivery of the certificates for such shares and/or other securities (subject to payment of the Exercise
Price), be duly and validly authorized and issued and fully paid and non-assessable.

 

(e) The
Company shall be responsible for the payment of any and all transfer taxes and governmental charges that may be payable in respect of
the issuance or delivery of the Rights Certificates and of any certificates for a number of one one-thousandths of a share of Preferred
Stock (or Class A Common Stock and/or other securities) upon the exercise of Rights. The Company shall not, however, be required to pay
any tax or charge that may be payable in respect of any transfer or delivery of Rights Certificates to a Person other than, or the issuance
or delivery of a number of one one-thousandths of a share of Preferred Stock (or Class A Common Stock and/or other securities) in respect
of a name other than that of, the registered holder of the Rights Certificates evidencing Rights surrendered for exercise or to issue
or deliver any certificates for a number of one one-thousandths of a share of Preferred Stock (or Class A Common Stock and/or other securities)
in a name other than that of the registered holder upon the exercise of any Rights until such tax has been paid (any such tax being payable
by the holder of such Rights Certificate at the time of surrender) or until it has been established to the Company’s satisfaction
that no such tax or charge is due.

 

Section 10. Preferred
Stock Record Date. Each Person in whose name any certificate
for shares of Preferred Stock (or Class A Common Stock and/or other securities) is issued upon the exercise of Rights shall for all purposes
be deemed to have become the holder of record of such shares of Preferred Stock (or Class A Common Stock and/or other securities) represented
thereby on, and such certificate shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered
and payment of the Exercise Price (and all applicable transfer taxes) was made; provided, however, that if the date of
such surrender and payment is a date upon which the applicable transfer books of the Company are closed, such Person shall be deemed
to have become the record holder of such securities (fractional or otherwise) on, and such certificate shall be dated, the next succeeding
Business Day on which the applicable transfer books of the Company are open; provided, further, that if delivery of a number
of one one-thousandths of a share of Preferred Stock (or Class A Common Stock and/or other securities) is delayed pursuant to Section 9(c),
such Persons shall be deemed to have become the record holders of such number of one one-thousandths of a share of Preferred Stock (or
Class A Common Stock and/or other securities) only when such shares of Preferred Stock (or Class A Common Stock and/or other securities)
first become deliverable. Prior to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not be entitled
to any rights of a stockholder of the Company with respect to shares or other securities for which the Rights are exercisable, including
the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive
any notice of any proceedings of the Company, except as provided herein.

 

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

 

(a)
(i) In the event the Company at any time after the date of this Agreement (A) declares a dividend on any outstanding shares
of Preferred Stock payable in shares of Preferred Stock, (B) subdivides any outstanding shares of Preferred Stock, (C) combines
any outstanding shares of Preferred Stock into a smaller number of shares or (D) issues any shares of its capital stock in a reclassification
of the Preferred Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the
continuing or surviving entity), except as otherwise provided in this ‎Section 11(a) and ‎Section 7(e),
the Exercise Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, combination
or reclassification, and the number and kind of shares (or fractions thereof) of Preferred Stock or capital stock, as the case may be,
issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled
to receive, upon payment of the Exercise Price then in effect, the aggregate number and kind of shares (or fractions thereof) of Preferred
Stock or capital stock, as the case may be, which, if such Right had been exercised immediately prior to such date and at a time when
the applicable transfer books of the Company were open, such holder would have owned upon such exercise and been entitled to receive
by virtue of such dividend, subdivision, combination or reclassification. If an event occurs that would require an adjustment under both
this ‎Section 11(a)(i) and ‎Section 11(a)(ii), the adjustment provided for in this ‎Section 11(a)(i)
shall be in addition to, and shall be made prior to, any adjustment required pursuant to ‎Section 11(a)(ii).

 

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(ii) Subject
to Section 24, in the event any Person (other than any Exempt Person) becomes an Acquiring Person (such event, a “Flip-in
Event”), unless the event causing such Person to become an Acquiring Person is a Flip-over Event, then proper provision
shall be made so that promptly following the Redemption Period, each holder of a Right (except as provided below and in Section 7(e))
thereafter has the right to receive, upon exercise thereof at a price equal to the then-current Exercise Price in accordance with the
terms of this Agreement, in lieu of a number of one one-thousandths of a share of Preferred Stock, such number of shares of Class A Common
Stock as shall be equal to the result obtained by (A) multiplying the then-current Exercise Price by the number of one one-thousandths
of a share of Preferred Stock for which a Right was exercisable immediately prior to the first occurrence of a Flip-in Event and (B) dividing
that product (which, following such first occurrence shall thereafter be referred to as the “Exercise Price” for each Right
and for all purposes of this Agreement) by fifty percent (50%) of the Current Market Price per share of Class A Common Stock on the date
of such first occurrence (such number of shares, the “Adjustment Shares”).

 

(iii) In the
event that the number of shares of Class A Common Stock authorized by the Charter, but not outstanding or reserved for issuance for
purposes other than upon exercise of the Rights, is not sufficient to permit the exercise in full of the Rights in accordance with Section 11(a)(ii),
the Board shall, to the extent permitted by applicable law and by any agreements or instruments then in effect to which the Company
is a party, (A) determine the excess of (1) the value of the Adjustment Shares issuable upon the exercise of a Right (the
“Current Value”) over (2) the Exercise Price (such excess being the “Spread”)
and (B) with respect to each Right (subject to Section 7(e)), make adequate provision to substitute for some or all
of the Adjustment Shares, upon the exercise of a Right and payment of the applicable Exercise Price, (1) cash, (2) a
reduction in the Exercise Price, (3) shares or fractions of a share of preferred stock or other equity securities of the
Company (including shares, or units of shares, of preferred stock, such as the Preferred Stock, which the Board has determined to
have substantially the same value or economic rights as shares of Class A Common Stock) (such shares of equity securities being
herein called “Common Stock Equivalents”), (4) debt securities of the Company, (5) other assets
or (6) any combination of the foregoing, having an aggregate value equal to the Current Value (less the amount of any reduction
in the Exercise Price), where such aggregate value has been determined by the Board based upon the advice of a financial advisor
selected by the Board; provided, however, that if the Company has not made adequate provision to deliver value
pursuant to clause (B) above within thirty (30) days following the later of (x) the first occurrence of a Flip-in
Event and (y) the date on which the Redemption Period expires (the later of (x) and (y) being referred to herein as the
“Flip-in Trigger Date”), then the Company shall be obligated to deliver, to the extent permitted by
applicable law, upon the surrender for exercise of a Right and without requiring payment of the Exercise Price, shares of Class A
Common Stock (to the extent available), and then, if necessary, such number or fractions of shares of Preferred Stock (to the extent
available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If, upon the
occurrence of a Flip-in Event, the Board determines in good faith that it is likely that sufficient additional shares of Class A
Common Stock could be authorized for issuance upon exercise in full of the Rights, the thirty (30)-day period set forth above may be
extended to the extent necessary, but not more than ninety (90) days after the Flip-in Trigger Date, in order that the Company
may seek stockholder approval for the authorization of such additional shares (such thirty (30)-day period, as it may be extended,
the “Substitution Period”). To the extent the Company determines that action should be taken pursuant to
the first sentence or third sentence of this Section 11(a)(iii), the Company (x) shall provide, subject to Section 7(e),
that such action shall apply uniformly to all outstanding Rights and (y) may suspend the exercisability of the Rights until the
expiration of the Substitution Period in order to seek such stockholder approval for authorization of additional shares and/or to
decide the appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. In the
event of any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been
temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect (with prompt written
notice of such announcements to the Rights Agent). For purposes of this Section 11(a)(iii), the value of each Adjustment
Share shall be the Current Market Price per share of Class A Common Stock on the Flip-in Trigger Date, and the value of any Class A
Common Stock Equivalent shall be deemed to equal the Current Market Price per share of the Class A Common Stock on such date. The
Board may establish procedures to allocate the right to receive shares of Class A Common Stock upon the exercise of the Rights among
holders of Rights pursuant to this Section 11(a)(iii).

 

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

 

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(c)
In case the Company fixes a record date for a distribution to all holders of Preferred Stock (including any such distribution made in
connection with a consolidation or merger in which the Company is the continuing or surviving entity) of evidences of indebtedness, cash
(other than a regular periodic cash dividend out of the earnings or retained earnings of the Company), assets (other than a dividend
payable in Preferred Stock, but including any dividend payable in stock other than Preferred Stock) or subscription rights, options or
warrants (excluding those referred to in Section 11(b)), the Exercise Price to be in effect after such record date shall
be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which
shall be the Current Market Price per share of Preferred Stock on such record date, less the fair market value (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 and the holders of the Rights) of the portion of the cash, assets or evidences of indebtedness so to be distributed or of such
subscription rights or warrants applicable to a share of Preferred Stock and the denominator of which shall be such Current Market Price
per share of Preferred Stock. Such adjustments shall be made successively whenever such a record date is fixed, and in the event that
such distribution is not so made, the Exercise Price shall be adjusted to be the Exercise Price that would have been in effect if such
record date had not been fixed.

 

(d)
(i) For the purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii), the
“Current Market Price” per share of common stock (or similar equity interest) of an issuer on any date
shall be deemed to be the average of the daily Closing Prices per share of such common stock (or other security) for the thirty (30)
consecutive Trading Days immediately prior to but not including such date, and for purposes of computations made pursuant to Section 11(a)(iii),
the “Current Market Price” per share of Class A Common Stock on any date shall be deemed to be the average
of the daily Closing Prices per share of such Class A Common Stock for the ten (10) consecutive Trading Days immediately following
but not including such date; provided, however, that in the event that the Current Market Price per share of common
stock (or other security) of an issuer is determined during a period following the announcement by the issuer of such common stock
(or other security) of (A) a dividend or distribution on such common stock (or other security) payable in shares of such common
stock (or other security) or securities convertible into shares of such common stock (or other security) (other than the Rights) or
(B) any subdivision, combination or reclassification of such common stock (or other security), and the ex-dividend date for
such dividend or distribution, or the record date for such subdivision, combination or reclassification shall not have occurred
prior to the commencement of the requisite thirty (30) Trading Day or ten (10) Trading Day period, as set forth above, then, and in
each such case, the “Current Market Price” shall be properly adjusted, as determined in good faith by the
Board, to take into account any trading during the period prior to such ex-dividend date or record date. If an issuer’s shares
of common stock (or other security) are not publicly held or not so listed or traded, “Current Market
Price” per share shall mean the fair value per share as determined in good faith by the Board, whose determination
shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 

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

 

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(e)
Notwithstanding anything in this Agreement to the contrary, no adjustment in the Exercise Price shall be required unless such adjustment
would require an increase or decrease of at least one percent (1%) in the Exercise Price; provided, however, that
any adjustments which by reason of this Section 11(e) are not required to be made shall be carried forward and taken into
account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the
nearest one ten-thousandth of a share of Common Stock or one one-millionth of a share of Preferred Stock or one ten-thousandth of any
other share or security, as the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required
by this Section 11 shall be made no later than the earlier of (i) three (3) years from the date of the transaction
which mandates such adjustment or (ii) the Expiration Time.

 

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

 

(g)
All Rights originally issued by the Company subsequent to any adjustment made to the Exercise Price hereunder shall evidence the right
to purchase, at the adjusted Exercise Price, the number of one one-thousandths of a share of Preferred Stock (or other securities, other
assets or amount of cash or combination thereof) purchasable from time to time hereunder upon exercise of the Rights, all subject to
further adjustment as provided herein.

 

(h)
Unless the Company has exercised its election as provided in Section 11(i), upon each adjustment of the Exercise Price as
a result of the calculations made in Section 11(b) and Section 11(c), each Right outstanding immediately prior
to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Exercise Price, that number of one-thousandths
of a share of Preferred Stock (calculated to the nearest one-millionth) obtained by (i) multiplying (A) the number of one one-thousandths
of a share covered by a Right immediately prior to this adjustment, by (B) the Exercise Price in effect immediately prior to such
adjustment of the Exercise Price and (ii) dividing the product so obtained by the Exercise Price in effect immediately after such
adjustment of the Exercise Price.

 

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

 

(j)
Irrespective of any adjustment or change in the Exercise Price or the number of one one-thousandths of a share of Preferred Stock issuable
upon the exercise of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Exercise Price
per one one-thousandth of a share and the number of one one-thousandths of a share which were expressed in the initial Rights Certificates
issued hereunder.

 

(k)
Before taking any action that would cause an adjustment reducing the Exercise Price below the then stated value, if any, of the number
of one one-thousandths of a share of Preferred Stock issuable upon exercise of the Rights, the Company shall take any corporate action
which may, upon advice of its counsel, be necessary in order that the Company may validly and legally issue fully paid and non-assessable
shares of Preferred Stock at such adjusted Exercise Price.

 

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

 

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(m)
Notwithstanding anything in this Section 11 to the contrary, the Company shall be entitled (but not obligated) to make such
reductions in the Exercise Price, in addition to those adjustments expressly required by this Section 11, as and to the extent
that the Board, in its good faith judgment, shall determine to be advisable in order that any (i) consolidation or subdivision of
the Preferred Stock, (ii) issuance wholly for cash of any shares of Preferred Stock at less than the Current Market Price, (iii) issuance
wholly for cash of shares of Preferred Stock or securities that by their terms are convertible into or exchangeable for shares of Preferred
Stock, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter
made by the Company to holders of Preferred Stock shall not be taxable to such stockholders.

 

(n)
The Company shall not, at any time after the Distribution Time, (i) consolidate with any other Person (other than a direct or indirect,
wholly-owned Subsidiary of the Company in a transaction that complies with Section 11(o)), (ii) merge with or into any
other Person (other than a direct or indirect, wholly-owned Subsidiary of the Company in a transaction that complies with Section 11(o))
or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a series of related transactions,
assets, cash flow or earning power aggregating to fifty percent (50%) or more of the assets, cash flow or earning power of the Company
and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company or any of its Subsidiaries in one or more
transactions each of which complies with Section 11(o)), if (A) at the time of or immediately after such consolidation,
merger, sale or transfer there are any rights, warrants or other instruments or securities outstanding or agreements in effect that would
substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights or (B) prior to, simultaneously
with or immediately after such consolidation, merger, sale or transfer, the stockholders of the Person who constitutes, or would constitute,
the “Flip-over Party” for purposes of Section 13(a) shall have received a distribution of Rights previously owned
by such Person or any of its Related Persons; provided, however, that this Section 11(n) shall not affect the
ability of any Subsidiary of the Company to consolidate with, merge with or into, or sell or transfer assets of earning power to, any
other Subsidiary of the Company.

 

(o)
After the Distribution Time and as long as any Rights are outstanding (other than Rights that have become null and void pursuant to Section 7(e)),
the Company shall not, except as permitted by Section 23, Section 24 or Section 27, take (or permit
any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially
or otherwise eliminate the benefits intended to be afforded by the Rights.

 

(p)
Notwithstanding anything in this Agreement to the contrary, in the event that the Company at any time after the Rights Dividend
Declaration Date and prior to the Distribution Time (i) declares a dividend on the outstanding shares of Common Stock payable
in shares of Class A Common Stock, (ii) subdivides any outstanding shares of Common Stock, (iii) combines any of the
outstanding shares of Common Stock into a smaller number of shares or (iv) issues any shares of its capital stock in a
reclassification of the Common Stock (including any such reclassification in connection with a consolidation or merger in which the
Company is the continuing or surviving entity), then the number of Rights associated with each share of Common Stock then
outstanding, or issued or delivered thereafter but prior to the Distribution Time, shall be proportionately adjusted so that the
number of Rights thereafter associated with each share of Common Stock following any such event equals the result obtained by
multiplying the number of Rights associated with each share of Common Stock immediately prior to such event by a fraction the
numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to the occurrence of the event
and the denominator of which shall be the total number of shares of Common Stock outstanding immediately following the occurrence of
such event. The adjustments provided for in this Section 11(p) shall be made successively whenever such a dividend is
declared or paid or such a subdivision, combination or reclassification is effected. If an event occurs that would require an
adjustment under Section 11(a)(ii) and this Section 11(p), the adjustments provided for in this Section 11(p) shall
be in addition and prior to any adjustment required pursuant to Section 11(a)(ii).

 

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Section 12. Certificate
of Adjusted Exercise Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 or Section 13,
the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief, reasonably detailed statement of
the facts and computations accounting for such adjustment, (b) promptly file with the Rights Agent, and with each transfer agent
for the Preferred Stock and the Common Stock, a copy of such certificate and (c) if a Distribution Time has occurred, mail a brief
summary thereof to each holder of a Rights Certificate in accordance with Section 26. Notwithstanding the foregoing sentence,
the failure of the Company to make such certification, give such notice or mail such summary shall not affect the validity of or the force
or effect of the requirement for such adjustment. Any adjustment to be made pursuant to Section 11 or Section 13
shall be effective as of the date of the event giving rise to such adjustment. The Rights Agent shall be fully protected in relying on
any such certificate and on any adjustment therein contained and shall have no duty or liability with respect to, and shall not be deemed
to have knowledge of, such adjustment unless and until it shall have received such certificate.

 

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

 

(a)
In the event that, following the Stock Acquisition Date, directly or indirectly, (i) the Company shall consolidate with, or
merge with and into, any other Person (other than a direct or indirect, wholly-owned Subsidiary of the Company in a transaction that
complies with Section 11(o)), and the Company is not the continuing or surviving entity of such consolidation or merger,
(ii) any Person (other than a direct or indirect, wholly-owned Subsidiary of the Company in a transaction that complies with Section 11(o))
shall engage in a share exchange with or shall consolidate with, or merge with or into, the Company, and the Company is the
continuing or surviving entity of such consolidation or merger and, in connection with such share exchange, consolidation or merger,
all or part of the outstanding shares of Common Stock is converted into or exchanged for stock or other securities of any other
Person or cash or any other property or (iii) the Company sells or otherwise transfers (or one or more of its direct or
indirect, wholly-owned Subsidiaries sells or otherwise transfers) in one transaction or a series of related transactions, assets,
cash flow or earning power aggregating to fifty percent (50%) or more of the assets, cash flow or earning power of the Company and
its Subsidiaries (taken as a whole) to any Person or Persons (other than the Company or any of its direct or indirect, wholly-owned
Subsidiaries in one or more transactions each of which complies with Section 11(o)) (any event described in
clause (i), (ii) or (iii) of this Section 13(a) following the Stock Acquisition Date, a “Flip-over
Event”), then, and in each such case, proper provision shall be made so that: (A) each holder of a Right, except
as provided in Section 7(e), shall have the right to receive upon the exercise thereof at the then-current Exercise
Price in accordance with the terms of this Agreement, in lieu of a number of one one-thousandths of a share of Preferred Stock, such
number of validly authorized and issued, fully paid, non-assessable and freely tradeable shares of Flip-over Stock, not subject to
any liens, encumbrances, rights of first refusal or other adverse claims, as shall be equal to the result obtained by
(1) multiplying the then-current Exercise Price by the number of one one-thousandths of a share of Preferred Stock for which a
Right is exercisable immediately prior to the first occurrence of a Flip-over Event (or, if a Flip-in Event has occurred prior to
the first occurrence of a Flip-over Event, multiplying the number of such one one-thousandths of a share of Preferred Stock for
which a Right was exercisable immediately prior to the first occurrence of a Flip-in Event by the Exercise Price in effect
immediately prior to such first occurrence) and (2) dividing that product (which, following the first occurrence of a Flip-over
Event, shall be referred to as the “Exercise Price” for each Right and for all purposes of this Agreement) by fifty
percent (50%) of the Current Market Price (determined pursuant to Section 11(d)(i)) per share of the Flip-over Stock on
the date of consummation of such Flip-over Event; (B) such Flip-over Party shall thereafter be liable for, and shall assume, by
virtue of such Flip-over Event, all the obligations and duties of the Company pursuant to this Agreement; (C) the term
“Company” shall thereafter be deemed to refer to such Flip-over Party, it being specifically intended that the
provisions of Section 11 shall apply only to such Flip-over Party following the first occurrence of a Flip-over Event;
(D) such Flip-over Party shall take such steps (including the reservation of a sufficient number of shares of Flip-over Stock)
in connection with the consummation of any such transaction as may be necessary to assure that the provisions hereof shall
thereafter be applicable, as nearly as reasonably may be, in relation to its shares of Class A Common Stock thereafter deliverable
upon the exercise of the Rights; and (E) the provisions of Section 11(a)(ii) shall be of no effect following the
first occurrence of any Flip-over Event.

 

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(b)
“Flip-over Party” shall mean:

 

(i)
in the case of any transaction described in Section 13(a)(i) or (ii), (A) the Person (including the Company as
successor thereto or as the surviving entity) that is the issuer of any securities into which shares of Common Stock are converted or
exchanged in such share exchange, consolidation or merger, or, if there is more than one such issuer, the issuer whose common stock (or
similar equity interest) has the highest aggregate market value; and (B) if no securities are so issued, (1) the Person that
is the other party to such merger, if such Person survives the merger, or, if there is more than one such Person, the Person whose common
stock (or similar equity interest) has the highest aggregate market value, (2) if the Person that is the other party to such share
exchange, consolidation or merger does not survive the merger, the Person that does survive the merger (including the Company, if it
survives) or (3) the Person resulting from the consolidation; and

 

(ii)
in the case of any transaction described in Section 13(a)(iii), the Person that is the party receiving the greatest portion
of the assets, cash flow or earning power transferred pursuant to such transaction or transactions, or, if each Person that is a party
to such transaction or transactions receives the same portion of the assets, cash flow or earning power transferred pursuant to such
transaction or transactions or if the Person receiving the greatest portion of the assets, cash flow or earning power cannot be determined,
whichever such Person the common stock (or similar equity interest) of which has the highest aggregate market value;

 

provided, however,
that in any such case described in the foregoing clause (i) or (ii) of this Section 13(b), (x) if the common stock
(or similar equity interest) of such Person is not at such time and has not been continuously over the preceding twelve (12) month
period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another Person, the
common stock (or similar equity interest) of which is and has been so registered, “Flip-over Party” shall refer to such other
Person; (y) in case such Person is a Subsidiary, directly or indirectly, of more than one Person, the common stock (or similar equity
interest) of two or more of which are and have been so registered, “Flip-over Party” shall refer to whichever of such Persons
is the issuer of the common stock (or similar equity interest) having the greatest aggregate market value; and (z) if the common
stock (or similar equity interest) of such Person is not at such time and has not been so registered and such Person is owned, directly
or indirectly, by a joint venture formed by two or more Persons that are not owned, directly or indirectly, by the same Person, the rules
set forth in the foregoing clauses (x) and (y) will apply to each of the chains of ownership having an interest in such joint
venture as if such Person were a Subsidiary of both or all of such joint ventures, and the Flip-over Parties in each such chain shall
bear the obligations set forth in this Section 13 in the same ratio as their direct or indirect interests in such Person
bear to the total of such interests.

 

(c)
The Company shall not consummate any Flip-over Event unless the Flip-over Party has a sufficient number of authorized shares of Flip-over
Stock (or similar equity interest) which have not been issued or reserved for issuance to permit the exercise in full of the Rights in
accordance with this Section 13 and unless prior thereto the Company and such Flip-over Party shall have executed and delivered
to the Rights Agent a supplemental agreement providing for the terms set forth in Section 13(a) and Section 13(b)
and further providing that, as soon as practicable after the date of any exchange, consolidation, merger, sale or transfer of assets
mentioned in Section 13(a), the Flip-over Party, at its own expense, shall:

 

(i)
if required to file a registration statement under the Act with respect to the Rights and the securities purchasable upon exercise of
the Rights, (A) prepare and file such registration statement on an appropriate form and (B) use its best efforts to cause such registration
statement to become effective as soon as practicable after such filing and remain effective (with a prospectus at all times meeting the
requirements of the Act) until the Expiration Time;

 

(ii)
qualify or register the Rights and take such action as may be required to ensure that any such acquisition of such securities purchasable
upon exercise of the Rights under blue sky laws of each jurisdiction, as may be necessary or appropriate;

 

(iii)
deliver to holders of the Rights historical financial statements for the Flip-over Party and each of its Affiliates that comply in all
respects with the requirements for registration on Form 10 under the Exchange Act;

 

(iv)
use its best efforts to obtain any and all necessary regulatory approvals as may be required with respect to the securities purchasable
upon exercise of the Rights;

 

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(v)
use its best efforts, if the common stock of the Flip-over Party is listed or admitted to trading on the Nasdaq, the NYSE or on another
national securities exchange, to list or admit to trading (or continue the listing of) the Rights and the securities purchasable upon
exercise of the Rights on the Nasdaq, the NYSE or on such securities exchange, or if the securities of the Flip-over Party that may be
acquired upon exercise of the Rights are not listed or admitted to trading on the Nasdaq, the NYSE or on another national securities
exchange, to cause the Rights and the securities purchasable upon exercise of the Rights to be authorized for quotation on any other
system then in use; and

 

(vi)
obtain waivers of any rights of first refusal or preemptive rights in respect of the common stock of the Flip-over Party subject to purchase
upon exercise of outstanding Rights.

 

(d)
In case the Flip-over Party has, at any relevant time (including the time of the Flip-over Event or immediately thereafter), a provision
in any of its authorized securities or in its certificate or articles of incorporation, bylaws or other instrument governing its affairs,
or any other agreements or arrangements, which provision would have the effect of (i) causing such Flip-over Party to issue (other
than to holders of Rights pursuant to this Section 13), in connection with, or as a consequence of, the consummation of a
Flip-over Event, shares of common stock (or similar equity interests) of such Flip-over Party at less than the then Current Market Price
or securities exercisable for, or convertible into, common stock of such Flip-over Party at less than such then Current Market Price;
(ii) providing for any special payment, tax or similar provision in connection with the issuance of common stock of such Flip-over
Party pursuant to this Section 13 or (iii) otherwise eliminating or substantially diminishing the benefits intended
to be afforded by the Rights in connection with, or as a consequence of, a Flip-over Event, then in each such case, the Company may not
consummate any such Flip-over Event unless prior thereto, the Company and such Flip-over Party have executed and delivered to the Rights
Agent a supplemental agreement providing that the provision in question of such Flip-over Party has been cancelled, waived or amended,
or that the authorized securities have been redeemed, so that the applicable provision will have no effect in connection with, or as
a consequence of, the consummation of such Flip-over Event.

 

(e)
The Company covenants and agrees that it shall not, at any time after a Flip-in Event, enter into any transaction of the type described
in Section 13(a)(i) through Section 13(a)(iii) if (i) at the time of or immediately after such transaction there
are any rights, warrants or other instruments or securities outstanding or agreements in effect which would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights; (ii) prior to, simultaneously with or immediately after such
transaction, the stockholders of the Person who constitutes, or would constitute, the Flip-over Party for purposes of Section 13(b)
have received a distribution of Rights previously owned by such Person or any Related Person thereof or (iii) the form or nature
of organization of the Flip-over Party would preclude or limit the exercisability of the Rights.

 

(f)
Notwithstanding anything herein to the contrary, in the event of any merger or acquisition transaction involving the Company pursuant
to a merger or other acquisition agreement between the Company and any Person (or one or more of such Person’s Related Persons),
which agreement has been approved by the Board prior to any Person becoming an Acquiring Person, this Agreement and the rights of holders
of Rights hereunder shall be terminated in accordance with Section 7(a).

 

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

 

Section 14.
Fractional Rights and Fractional Shares.

 

(a)
The Company shall not be required to issue fractions of Rights, except prior to the Distribution Time as provided in Section 11,
or to distribute Rights Certificates which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid to the
registered holders of the Rights 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 14(a), the current
market value of a whole Right shall be the Closing Price of the Rights for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable.

 

(b)
The Company shall not be required to issue fractions of shares of Preferred Stock (other than fractions that are integral multiples of
one one-thousandth of a share of Preferred Stock) upon exercise of the Rights or to distribute certificates which evidence fractional
shares of Preferred Stock (other than fractions that are integral multiples of one one-thousandth of a share of Preferred Stock). Fractions
of shares of Preferred Stock in integral multiples of one one-thousandth of a share may, at the election of the Company, be evidenced
by depositary receipts pursuant to an appropriate agreement between the Company and a depositary selected by it; provided, 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 Beneficial Owners of the shares represented by such depositary receipts. In lieu of fractional shares of
Preferred Stock that are not integral multiples of one one-thousandth of a share of Preferred Stock, the Company shall pay to the registered
holders of Rights 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 one-thousandth of a share of Preferred Stock. For purposes of this Section 14(b), the
current market value of one one-thousandth of a share of Preferred Stock shall be one one-thousandth of the Closing Price of a share
of Preferred Stock for the Trading Day immediately prior to the date of such exercise.

 

(c)
Following the occurrence of a Triggering Event, the Company shall not be required to issue fractions of shares of Class A Common
Stock, Common Stock Equivalents or other securities upon exercise of the Rights or to distribute certificates which evidence
fractional shares of Class A Common Stock, Common Stock Equivalents or other securities. In lieu of fractional shares of Class A
Common Stock, Common Stock Equivalents or other securities, the Company shall pay to the registered holders of Rights 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 share of Class A Common Stock, Common Stock Equivalents or such other securities. For purposes of this Section 14(c),
the current market value of one share of Class A Common Stock or other security (other than a Common Stock Equivalent) shall be the
Closing Price of one share of Class A Common Stock or such other security, as applicable, for the Trading Day immediately prior to
the date of such exercise, and the current market value of a Class A Common Stock Equivalent shall be deemed to equal the Closing
Price of one share of Class A Common Stock for the Trading Day immediately prior to the date of such exercise. 

 

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(d)
The holder of a Right by the acceptance of the Rights expressly waives such holder’s right to receive any fractional Rights or
any fractional shares upon exercise of a Right, except as permitted by this Section 14.

 

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

 

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

 

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

 

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

 

(b)
after the Distribution Time, the Rights Certificates shall be transferable only on the registry books of the Rights Agent if surrendered
at the offices of the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper instrument of transfer and
with the appropriate forms and certificates properly completed and duly executed, accompanied by a signature guarantee and such other
documentation as the Rights Agent may reasonably request;

 

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

 

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(d)
notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any
holder of a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any
preliminary or permanent injunction or other order, decree, judgment or ruling (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 shall use commercially reasonable efforts to have any such injunction,
order, decree, judgment or ruling lifted or otherwise overturned as promptly as practicable.

 

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

 

Section 18.
Concerning the Rights Agent.

 

(a)
The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder in accordance with a
fee schedule to be mutually agreed upon and, from time to time, on demand of the Rights Agent, its reasonable and documented expenses
and counsel fees and disbursements and other disbursements incurred in the preparation, negotiation, execution, delivery and amendment
of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for,
and to hold it harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense incurred
without negligence, bad faith or willful misconduct on the part of the Rights Agent for any action taken, suffered or omitted by the
Rights Agent in connection with the execution, acceptance, administration, exercise and performance of its duties under this Agreement,
including the reasonable costs and expenses of defending against any claim of liability.

 

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

 

(c)
Notwithstanding anything in this Agreement to the contrary, in no case shall the Company be liable with respect to any action, proceeding,
suit or claim against the Rights Agent unless, to the extent the Company is not also a party to such action, proceeding, suit or claim,
the Rights Agent has notified the Company in accordance with Section 26 of the assertion of such action, proceeding, suit
or claim against the Rights Agent, promptly after the Rights Agent has actual notice of such assertion of an action, proceeding, suit
or claim or has 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; provided that the failure to provide such notice promptly shall not affect the rights of the Rights
Agent hereunder, except to the extent such failure actually prejudiced the Company. 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 the event the Company assumes such defense, the Company shall not thereafter
be liable for the fees and expenses of any counsel retained by the Rights Agent, so long as the Company retains counsel satisfactory
to the Rights Agent, in the exercise of its reasonable judgment, to defend such action, proceeding, suit or claim, and provided that
the Rights Agent does not have defenses that are adverse to any defenses of the Company. 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, which consent shall not be unreasonably withheld, conditioned or delayed.

 

(d)
The provisions of this Section 18 and Section 20 shall survive the termination of this Agreement, the resignation,
replacement or removal of the Rights Agent and the exercise, termination and expiration of the Rights.

 

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

 

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

 

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

 

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

 

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

 

(b)
Whenever in the performance of its duties under this Agreement the Rights Agent deems it necessary or desirable that any fact or matter
(including the identity of any Acquiring Person and the determination of the Current Market Price) 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 be
herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by the Chief Executive
Officer, President, Chief Financial Officer or Secretary of the Company, or any other authorized officer of the Company, and delivered
to the Rights Agent; and such certificate shall be full authorization and protection to the Rights Agent, and the Rights Agent shall
incur no liability for or in respect of any action taken, suffered or omitted to be taken by it in good faith by it under the provisions
of this Agreement in reliance upon such certificate.

 

(c)
The Rights Agent shall be liable hereunder only for its own and its employee’s, directors’, officers’ and agents’
negligence, bad faith or willful misconduct.

 

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

 

(e)
The Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery
hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate
(except its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition
contained in this Agreement or in any Rights Certificate; nor shall it be responsible for any adjustment or calculation required
under Section 11, Section 13, Section 14 or Section 24 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
or calculation (except with respect to the exercise of Rights evidenced by Rights Certificates subject to the terms and conditions
hereof 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 shares of Class A Common Stock or Preferred Stock to be issued pursuant to
this Agreement or any Rights Certificate or as to whether any shares of Class A Common Stock or Preferred Stock will, when so
issued, be validly authorized and issued, fully paid and non-assessable. 

 

    25

     

    

 

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

 

(g)
The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from
the Chief Executive Officer, President, Chief Financial Officer or Secretary of the Company, or any other authorized officer of the Company,
and to apply to such officers for advice or instructions in connection with its duties, and it shall incur no liability for or in respect
of any action taken, suffered or omitted by it in good faith in accordance with instructions of any such officer. Any application by
the Rights Agent for written instructions from the Company may, at the option of the Rights Agent, set forth in writing any action proposed
to be taken, suffered or omitted to be taken by the Rights Agent under this Agreement and the date on or after which such action shall
be taken or such omission shall be effective. The Rights Agent shall be fully authorized and protected in relying upon the most recent
instructions received from any such officer and shall not be liable for any action taken, suffered or omitted to be taken by the Rights
Agent in accordance with a proposal included in any such application on or after the date specified in such application (which date shall
not be less than five Business Days after the date any such officer of the Company actually receives such application, unless any such
officer has consented in writing to an earlier date) unless, prior to taking any such action (or the effective date, in the case of an
omission), the Rights Agent has received written instructions in response to such application specifying the action to be taken or omitted.

 

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

 

(i)
The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself
or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default or misconduct
of any such attorneys or agents or for any loss to the Company resulting from any such act, default or misconduct, absent negligence,
bad faith or willful misconduct of such attorney or agent.

 

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

 

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(k)
If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or transfer, the certificate attached to the
form of assignment or form of election to purchase, as the case may be, has either not been completed or indicates an affirmative response
to clause 1 or 2 thereof, the Rights Agent shall not take any further action with respect to such requested exercise or transfer without
first consulting with the Company.

 

Section 21.
Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under
this Agreement upon thirty (30) days’ notice to the Company and, if such resignation or discharge occurs after the Distribution
Time, to the holders of the Rights Certificates by first-class mail. In the event any transfer agency relationship in effect between
the Company and the Rights Agent terminates, the Rights Agent will be deemed to have resigned automatically and be discharged from its
duties under this Agreement as of the effective date of such termination. The Company may remove the Rights Agent or any successor Rights
Agent upon no less than thirty (30) days’ notice to the Rights Agent or successor Rights Agent, as the case may be, and to
each transfer agent of the Common Stock and the Preferred Stock, by registered or certified mail, and, if such removal occurs after the
Distribution Time, to the holders of the Rights Certificates by first-class mail. If the Rights Agent resigns or is removed or otherwise
becomes incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company fails to make such appointment
within a period of thirty (30) days after giving notice of such removal or after it has been notified in writing of such resignation
or incapacity by the resigning or incapacitated Rights Agent or by any registered holder of a Rights Certificate (who shall, with such
notice, submit such holder’s Rights Certificate for inspection by the Company), then any registered holder of any Rights Certificate
may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed
by the Company or by such a court, shall be (a) a Person organized and doing business under the laws of the United States or of
any state of the United States (so long as such Person is authorized to do business as a banking institution in such state), in good
standing, which is authorized under such laws to exercise corporate trust, stock transfer 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) an Affiliate of such Person. 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 under this Agreement 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 reasonable assurance, conveyance, act or deed necessary for the purpose. Not
later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent
and each transfer agent of the Common Stock and the Preferred Stock, and, if such appointment occurs after the Distribution Time, mail
a notice thereof in writing to the registered holders of the Rights Certificates. Failure to give any notice provided for in this Section 21
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 22.
Issuance of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary,
the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by its Board to reflect
any adjustment or change in the Exercise Price and the number or kind or class of shares or other securities or property purchasable
under the Rights Certificates made in accordance with this Agreement. In addition, in connection with the issuance or sale of shares
of Common Stock following the Distribution Time and prior to the redemption or expiration of the Rights, the Company (a) shall,
with respect to shares of Common Stock so issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement,
granted or awarded prior to the Distribution Time, or upon the exercise, conversion or exchange of securities hereinafter issued by the
Company, and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue Rights Certificates representing
an appropriate number of Rights in connection with such issuance or sale; provided, however, that (i) no such Rights Certificate
shall be issued if, and to the extent that, the Company shall be advised by counsel that such issuance would create a significant risk
of material adverse tax consequences to the Company or the Person to whom such Rights Certificate would be issued, and (ii) no such
Rights Certificate shall be issued if, and to the extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance
thereof.

 

Section 23.
Redemption and Termination.

 

(a)
The Board may, at its option, at any time prior to the Final Expiration Time (such time being hereinafter referred to as the
“Redemption Period”), cause the Company to redeem all but not less than all of the then outstanding Rights
at a redemption price of $0.001 per Right, as such amount may be appropriately adjusted to reflect any stock split, reverse stock
split, stock dividend or similar transaction occurring after the date hereof (such redemption price being hereinafter referred to as
the “Redemption Price”). Notwithstanding anything contained in this Agreement to the contrary, the Rights
shall not be exercisable after the first occurrence of a Flip-in Event until such time as the Company’s right of redemption
hereunder has expired. The Company may, at its option, pay the Redemption Price in cash, shares of Class A Common Stock (based on
the Current Market Price of the Class A Common Stock at the time of redemption) or any other form of consideration deemed
appropriate by the Board. The redemption of the Rights by the Board may be made effective at such time, on such basis and with such
conditions as the Board in its sole discretion may establish. 

 

(b)
Immediately upon the action of the Board ordering the redemption of the Rights pursuant to Section 23(a) or such later time
as the Board may establish for the effectiveness of such redemption, evidence of which shall have been filed with the Rights Agent and
without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the
holders of Rights shall be to receive the Redemption Price for each Right so held. Within ten (10) days 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 the Rights Agent and to all such holders at each holder’s last address as
it appears upon the registry books of the Rights Agent or, prior to the Distribution Time, on the registry books of the transfer agent
for the Common Stock; provided, however, that the failure to give, or any defect in, such notice shall not affect the validity
of such redemption. 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 redemption shall state the method by which the payment of the Redemption Price will be made.

 

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Section 24.
Exchange.

 

(a) The Board may, at
its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding and exercisable
Rights (which shall not include Rights that have become null and void pursuant to Section 7(e)) for shares of Class A
Common Stock at an exchange ratio of one share of Class A Common Stock per Right, appropriately adjusted to reflect any stock split,
reverse stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter
referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board shall not be empowered to
effect such exchange at any time after any Acquiring Person, together with all of its Related Persons, becomes the Beneficial Owner
of fifty percent (50%) or more of the Common Stock then outstanding. From and after the occurrence of a Flip-over Event, any rights
that theretofore have not been exchanged pursuant to this Section 24(a) shall thereafter be exercisable only in
accordance with Section 13 and may not be exchanged pursuant to this Section 24(a). Before effecting an
exchange pursuant to this Section 24, the Board may direct the Company to enter into a trust agreement in such form and
with such terms as the Board shall then approve (the “Trust Agreement”). If the Board so directs, the
Company shall enter into the Trust Agreement and shall issue to the trust created by such agreement (the
“Trust”) all or some (as designated by the Board) of the shares of Class A Common Stock issuable pursuant
to the exchange, and all or some (as designated by the Board) holders of Rights entitled to receive shares pursuant to the exchange
shall be entitled to receive such shares (and any dividends paid or distributions made thereon after the date on which such shares
are deposited in the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the Trust
Agreement.

 

(b) Immediately
upon the effectiveness of the action of the Board ordering the exchange of any Rights pursuant to Section 24(a) and without
any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a holder
of any such Rights shall be to receive that number of shares of Class A Common Stock equal to the number of such Rights held by such holder
multiplied by the Exchange Ratio. The Company shall promptly give public notice (with prompt written notice thereof to the Rights Agent)
of any exchange. The Company promptly thereafter shall mail a notice of any such exchange to all of the holders of such Rights at their
last addresses as they appear upon the registry books of the Rights Agent. 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 shares of Class A Common Stock for Rights shall be effected and, in the event of any partial exchange, the number of Rights which will
be exchanged. Any partial exchange shall be effected pro rata based on the number of Rights (other than Rights which have become
null and void pursuant to Section 7(e)) held by each holder of Rights. Prior to effecting any exchange and registering shares
of Class A Common Stock in any Person’s name, including any nominee or transferee of a Person, 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 Related Persons (or former Beneficial Owners thereof and their Related Persons) as the Company reasonably
requests in order to determine if such Rights are null and void. If any Person fails 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). No failure
to give, or any defect in, any notice provided under this Section 24(b) shall affect the validity of any exchange. Any shares
of Class A Common Stock or other securities issued at the direction of the Board in connection herewith shall be validly issued, fully
paid and non-assessable shares of Class A Common Stock or of such other securities, as the case may be.

 

    29

     

    

 

(c) Upon declaring an
exchange pursuant to this Section 24, or as promptly as reasonably practicable thereafter, the Company may implement
such procedures as it deems appropriate, in its sole discretion, for the purpose of ensuring that the Class A Common Stock (or such
other consideration) issuable upon an exchange pursuant to this Section 24 is not received by holders of Rights that
have become null and void pursuant to Section 7(e).

 

(d) In
any exchange pursuant to this Section 24, the Company, at its option, may substitute shares of Preferred Stock (or Equivalent
Preferred Stock) for shares of Class A Common Stock exchangeable for Rights, at the initial rate of one one-thousandth of a share of Preferred
Stock (or Equivalent Preferred Stock) for each share of Class A Common Stock, as appropriately adjusted to reflect adjustments in the
voting rights of the Preferred Stock pursuant to the terms thereof, so that the fraction of a share of Preferred Stock delivered in lieu
of each share of Class A Common Stock shall have the same voting rights as one share of Class A Common Stock.

 

(e) In
the event that there are not sufficient shares of Class A Common Stock issued but not outstanding or authorized but unissued to permit
any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such actions as may
be necessary to authorize additional shares of Class A Common Stock for issuance upon exchange of the Rights. In the event the Company,
after good faith effort, is unable to take all such actions as may be necessary to authorize such additional shares of Class A Common
Stock, the Company shall substitute, for each share of Class A Common Stock that would otherwise be issuable upon exchange of a Right,
a number of shares of Preferred Stock or fraction thereof such that the current per share market price of one share of Preferred Stock
multiplied by such number or fraction is equal to the current per share market price of one share of Class A Common Stock as of the date
of issuance of such shares of Preferred Stock or fraction thereof.

 

(f) The
Company shall not be required to issue fractions of shares of Class A Common Stock or to distribute certificates which evidence fractional
shares of Class A Common Stock. In lieu of such fractional shares of Class A Common Stock, there shall be paid to the registered holders
of the Rights Certificates with regard to which such fractional shares of Class A Common Stock would otherwise be issuable, an amount
in cash equal to the same fraction of the current market value of a whole share of Class A Common Stock. For the purposes of this Section 24(f),
the current market value of a whole share of Class A Common Stock shall be the Closing Price of a share of Common Stock for the Trading
Day immediately prior to the date of exchange pursuant to this Section 24.

 

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Section 25.
Notice of Certain Events.

 

(a)
In the event the Company proposes, at any time after the earlier of the Distribution Time or the Stock Acquisition Date, (i) to
pay any dividend payable in stock of any class or series to the holders of Preferred Stock or to make any other distribution to the holders
of Preferred Stock (other than a regular periodic cash dividend out of earnings or retained earnings of the Company), (ii) to offer
to the holders of Preferred Stock rights or warrants to subscribe for or to purchase any additional shares of Preferred Stock or shares
of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of its Preferred Stock (other
than a reclassification involving only the subdivision of outstanding shares of Preferred Stock), (iv) to effect any consolidation
or merger into or with any other Person (other than a direct or indirect, wholly-owned Subsidiary of the Company in a transaction which
complies with Section 11(o)), or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect
any sale or other transfer), in one transaction or a series of related transactions, of fifty percent (50%) or more of the assets, cash
flow or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company or
any of its Subsidiaries in one or more transactions each of which complies with Section 11(o)), or (v) to effect the
liquidation, dissolution or winding up of the Company, then, in each such case, the Company shall give to the Rights Agent and to each
holder of a Rights Certificate, to the extent feasible and in accordance with Section 26, a notice of such proposed action,
which shall specify the record date for the purposes of such stock dividend, distribution of rights or warrants, or the date on which
such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution or winding up is to take place and the date of
participation therein by the holders of the shares of Preferred Stock, if any such date is to be fixed, and such notice shall be so given
in the case of any action covered by the foregoing clause (i) or (ii) at least twenty (20) days prior to the record date for
determining holders of the shares of Preferred Stock for purposes of such action, and in the case of any such other action, at least
twenty (20) days prior to the date of the taking of such proposed action or the date of participation therein by the holders of
the shares of Preferred Stock, whichever shall be the earlier; provided, however, that no such action shall be taken pursuant
to this Section 25(a) that will or would conflict with any provision of the Charter; provided further that no such
notice is required pursuant to this Section 25 if any Subsidiary of the Company effects a consolidation or merger with or
into, or effects a sale or other transfer of assets or earning power to, any other Subsidiary of the Company.

 

(b)
In case a Flip-in Event occurs, then, in any such case, (i) the Company shall as soon as practicable thereafter give to each
holder of a Rights Certificate, to the extent feasible and in accordance with Section 26, a notice of the occurrence of
such event, which shall specify the event and the consequences of the event to holders of Rights under Section 11(a)(ii),
and (ii) all references to Preferred Stock in Section 25(a) shall be deemed thereafter to refer to Class A Common
Stock and/or, if appropriate, other securities.

 

(c)
In case any Flip-over Event occurs, the Company shall, as soon as practicable thereafter, give to each registered holder of a Rights
Certificate, to the extent feasible, and to the Rights Agent in accordance with Section 26, a written notice of the occurrence
of such event, which notice shall describe such event and the consequences of such event to holders of Rights under Section 13(a).

 

    31

     

    

 

Section 26.
Notices. Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights
Certificate to or on the Company shall be sufficiently given or made if in writing and sent by first-class or express United States mail,
FedEx or United Parcel Service or any other nationally recognized courier service, postage prepaid, (or by facsimile transmission or
email, if receipt is confirmed telephonically) addressed (until another address is filed in writing with the Rights Agent) as follows:

 

Purple
Innovation, Inc.

4100 North Chapel Ridge Road Suite 200

Lehi, Utah 84043

Attention: Casey K. McGarvey, Chief Legal Officer and Secretary

 

Telephone:
(801) 661-1288

Email:
casey@purple.com

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

 

Sidley
Austin LLP 787 7th Avenue

New York, New York 10019

Attention: Kai H. Liekefett & John H. Butler

 

Telephone:
(212) 839-8744 / (212) 839-8513

Email:
kliekefett@sidley.com / john.butler@sidley.com

 

Subject
to Section 21, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any
Rights Certificate to or on the Rights Agent shall be sufficiently given or made if in writing and sent by first-class or express United
States mail, FedEx or United Parcel Service or any other nationally recognized courier service, postage prepaid, (or by facsimile transmission
or email, if receipt is confirmed telephonically) addressed (until another address is filed in writing with the Company) as follows:

 

Pacific
Stock Transfer Company

6725
Via Austi Pkwy, Suite 300

Las
Vegas, Nevada 89119

Attention:
Joslyn Claiborne

 

Telephone:
(702) 361-3033

E-mail:
jclaiborne@pacificstocktransfer.com

 

Notices
or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Rights Certificate
(or, if prior to the Distribution Time, to the holder of shares of Common Stock) shall be sufficiently given or made if in writing, sent
by first-class or express United States mail, FedEx or United Parcel Service or any other nationally recognized courier service, postage
prepaid, addressed to such holder at the address of such holder as shown on the registry books of the Company.

 

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Section 27.
Supplements and Amendments. Except as otherwise provided in this Section 27, the Company, by action of the Board,
may from time to time and in its sole and absolute discretion, and the Rights Agent shall, if the Company so directs, from time to time
supplement or amend this Agreement in any respect without the approval of any holders of Rights (a) prior to the Stock Acquisition
Date, in any respect, and (b) on or after the Stock Acquisition Date, (i) to make any changes that the Company may deem necessary
or desirable that do not materially adversely affect the interests of the holders of Rights (other than the Acquiring Person, any Related
Person thereof or any transferee of any Acquiring Person or any Related Person thereof), (ii) to cure any ambiguity or (iii) to
correct or supplement any provision contained herein that may be inconsistent with any other provision herein, including any change in
order to satisfy any applicable law, rule or regulation. Without limiting the foregoing, the Company, by action of the Board, may, at
any time before any Person becomes an Acquiring Person, amend this Agreement to make this Agreement inapplicable to a particular transaction
by which a Person might otherwise become an Acquiring Person or to otherwise alter the terms and conditions of this Agreement as they
may apply with respect to any such transaction. For the avoidance of doubt, the Company shall be entitled to adopt and implement such
procedures and arrangements (including with third parties) as it may deem necessary or desirable to facilitate the exercise, exchange,
trading, issuance or distribution of the Rights (and the shares of Preferred Stock issuable and deliverable upon the exercise of the
Rights) as contemplated hereby and to ensure that an Acquiring Person and its Related Persons and transferees do not obtain the benefits
thereof, and any amendment in respect of the foregoing shall be deemed not to adversely affect the interests of the holders of Rights.
No supplement or amendment to this Agreement shall be effective unless duly executed by the Rights Agent and the Company. The Rights
Agent shall duly execute and deliver any supplement or amendment hereto requested by the Company in writing, provided that the
Company has delivered to the Rights Agent a certificate from the Chief Executive Officer, President, Chief Financial Officer, or Secretary
of the Company, or any other authorized officer of the Company, that states that the proposed supplement or amendment complies with the
terms of this Agreement. Notwithstanding anything in this Agreement to the contrary, the Rights Agent may, but shall not be obligated
to, enter into any supplement or amendment that adversely affects the Rights Agent’s own rights, duties, immunities or obligations
under this Agreement. Prior to the Distribution Time, the interests of the holders of Rights shall be deemed coincident with the interests
of holders of shares of Common Stock.

 

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

 

Section 29.
Determination and Action by the Board. The Board, or a duly authorized committee thereof, shall have the exclusive power and
authority to administer this 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 Agreement, including the right and power to (a) interpret the provisions
of this Agreement and (b) make all determinations deemed necessary or advisable for the administration of this Agreement (including
a determination whether or not to redeem the Rights, to exchange the Rights or to amend this Agreement). Without limiting any of the
rights and immunities of the Rights Agent, all such actions, calculations, interpretations and determinations (including for purposes
of the following clause (ii), all omissions with respect to the foregoing) which are done or made by the Board in good faith shall
(i) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other Persons and (ii) not
subject the Board to any liability to the holders of the Rights.

 

Section 30.
Benefits of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the
Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Time, registered holders of the Common
Stock) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit
of the Company, the Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Time, registered
holders of the Common Stock).

 

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Section 31.
Tax Compliance and Withholding. The Company hereby authorizes the Rights Agent to deduct from all payments disbursed by the
Rights Agent to the holders of the Rights, if applicable, the tax required to be withheld pursuant to the Internal Revenue Code of 1986,
as amended, or by any other applicable federal or state statutes in effect as of the date hereof or subsequently enacted, and to make
the necessary returns and payments of such tax to the relevant taxing authority. The Company will provide withholding and reporting instructions
in writing to the Rights Agent from time to time as relevant, and upon request of the Rights Agent. The Rights Agent shall have no responsibilities
with respect to tax withholding, reporting or payment except as specifically instructed by the Company.

 

Section 32.
Severability. If any term, provision, covenant or restriction of this Agreement or the Rights is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions
of this Agreement and the Rights shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided,
however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction
is held by such court or authority to be invalid, void or unenforceable and the Board determines in its good faith judgment that severing
the invalid language from this Agreement or the Rights would adversely affect the purpose or effect of this Agreement, the right of redemption
set forth in Section 23 shall be reinstated and shall not expire until the Close of Business on the tenth (10th) day
following the date of such determination by the Board.

 

Section 33.
Governing Law; Submission to Jurisdiction. This Agreement, each Right and each Rights Certificate issued hereunder shall be
deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance
with the laws of such State applicable to contracts made and to be performed entirely within such State. The Company and each holder
of Rights hereby irrevocably submits to the exclusive jurisdiction of the Court of Chancery of the State of Delaware, or, if such court
lacks subject matter jurisdiction, the United States District Court for the District of Delaware, over any suit, action or proceeding
arising out of or relating to this Agreement. The Company and each holder of Rights acknowledge that the forum designated by this Section 33
has a reasonable relation to this Agreement and to such Persons’ relationship with one another. The Company and each holder
of Rights hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter have to personal
jurisdiction or to the laying of venue of any such suit, action or proceeding brought in any court referred to in this Section 33.
The Company and each holder of Rights undertake not to commence any action subject to this Agreement in any forum other than the forum
described in this Section 33. The Company and each holder of Rights agree that, to the fullest extent permitted by applicable
law, a final and non-appealable judgment in any such suit, action or proceeding brought in any such court shall be conclusive and binding
upon such Persons.

 

Section 34.
Counterparts. This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. Delivery of an executed
signature page of the Agreement by facsimile or other customary means of electronic transmission (e.g., “pdf”) shall
be as effective as delivery of a manually executed counterpart hereof.

 

Section 35.
Descriptive Headings; Interpretation. Descriptive headings of the several Sections of this Agreement are inserted for convenience
only and shall not control or affect the meaning or construction of any of the provisions hereof. The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without limitation.” Each reference in this Agreement
to a period of time following or after a specified date or event shall be calculated without including such specified date or the day
on which such specified event occurs.

 

Section 36.
Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent will not have any liability for
not performing, or a delay in the performance of, any act, duty, obligation or responsibility by reason of any occurrence beyond the
reasonable control of the Rights Agent (including acts of God, terrorist acts, shortage of supply, breakdowns, interruptions or malfunctions
of computer facilities, loss of data due to power failures, mechanical difficulties with information storage or retrieval systems, labor
difficulties, war and civil unrest).

 

*
* * * * * *

 

    34

     

    

 

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

 

	 	PURPLE INNOVATION, INC.
	 	 	 	 
	 	By:	/s/ Casey K. McGarvey
	 		Name: 	Casey K. McGarvey 
	 		Title:	Chief Legal Officer, Secretary

 

	 	PACIFIC STOCK TRANSFER COMPANY
	 	 	 	 
	 	By:	/s/ William Miller
	 		Name: 	William Miller
	 		Title:	Chief Operating Officer

 

Rights
Agreement

 

     

     

    

 

Exhibit
A

 

FORM
OF

 

CERTIFICATE
OF DESIGNATION

 

OF

 

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

 

OF

 

PURPLE
INNOVATION, INC.

 

Pursuant
to Section 151 of the

General Corporation Law of the State of Delaware

 

The undersigned hereby certifies
that the following resolution was duly adopted by a special committee of the board of directors of Purple Innovation, Inc., a Delaware
corporation (the “Corporation”), on September 25, 2022:

 

RESOLVED, that pursuant to
the authority vested in the Special Committee (“Special Committee”) of the board of directors of the Corporation
(the “Board”) by the Corporation’s Second Amended and Restated Certificate of Incorporation, as amended
(the “Charter”), the Special Committee hereby creates, authorizes and provides for the issue of a series of Preferred Stock,
par value $0.0001 per share, of the Corporation, to be designated “Series A Junior Participating Preferred Stock” (hereinafter
referred to as the “Series A 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 A Preferred Stock are not stated and expressed in the Charter, hereby fixes and herein states and expresses such designations,
powers, preferences and relative and other special rights and the qualifications, limitations and restrictions thereof, as follows:

 

Section 1. Designation
and Amount. The shares of such series shall be designated as “Series A 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; provided, however, that no decrease shall reduce the number of shares of Series A Preferred Stock to a number less
than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights
or warrants or upon the conversion of any outstanding securities issued by the Corporation convertible into Series A Preferred Stock.

 

Section 2.
Dividends and Distributions.

 

(a) Subject to the prior
and superior rights of the holders of any shares of any series of Preferred Stock (as defined in the Charter) ranking prior and
superior to the shares of Series A Preferred Stock with respect to dividends, the holders of shares of Series A Preferred Stock, in
preference to the holders of Class A common stock, $0.0001 par value per share (“Class A Common Stock”),
and Class B common stock, $0.0001 par value per share (together with the Class A Common Stock, the “Common
Stock”) shall be entitled to receive, when, as and if declared by the Board out of funds legally available for the
purpose, quarterly dividends payable in cash on the last business day of March, June, September and December in each year (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 fraction of a share of Series A Preferred Stock, in an amount per share
(rounded to the nearest cent) equal to the greater of (i) $1,000 or (ii) subject to the provision for adjustment
hereinafter set forth, 1,000 times the aggregate per share amount of all cash dividends, plus 1,000 times the aggregate per share
amount (payable in kind) of all non-cash dividends or other distributions other than a dividend payable in shares of Class A Common
Stock or a subdivision of the outstanding shares of Class A Common Stock (by reclassification or otherwise), declared on the Common
Stock since the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment
Date, since the first issuance of any share or fraction of a share of Series A Preferred Stock. In the event the Corporation, at any
time after September 25, 2022 (the “Rights Declaration Date”), (x) declares any dividend on Common
Stock payable in shares of Class A Common Stock, (y) subdivides the outstanding Common Stock or (z) combines the
outstanding Common Stock into a smaller number of shares, then in each case the amount to which holders of shares of Series A
Preferred Stock were entitled immediately prior to such event under clause (ii) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after
such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such
event.

 

    A-1

     

    

 

(b) The Corporation
shall declare a dividend or distribution on the Series A Preferred Stock as provided in Section 2(a) above immediately after
it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Class A Common Stock); provided, however,
that, in the event no dividend or distribution 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, subject to the prior and superior rights of the
holders of any shares of any series of Preferred Stock ranking prior to and superior to the shares of Series A Preferred Stock with
respect to dividends, a dividend of $1.00 per share on the Series A Preferred Stock shall nevertheless be payable on such subsequent
Quarterly Dividend Payment Date.

 

(c) Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next
preceding the date of issue of such shares of Series A Preferred Stock, unless the date of issue of such shares is prior to the record
date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue
of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination
of holders of shares of Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date,
in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but
unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Preferred Stock in an amount less than the total amount
of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all
such shares at the time outstanding. The Board may fix a record date for the determination of holders of shares of Series A Preferred
Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be no more than sixty (60) days
prior to the date fixed for the payment thereof.

 

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

 

(a) Subject
to the provision for adjustment hereinafter set forth, each share of Series A Preferred Stock shall entitle the holder thereof to 1,000
votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation at any time after the Rights
Declaration Date (i) declares any dividend on Common Stock payable in shares of Common Stock, (ii) subdivides the outstanding
Common Stock or (iii) combines the outstanding Common Stock into a smaller number of shares, then in each such case the number of
votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event shall be adjusted
by multiplying such number by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after
such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

 

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

 

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

 

Section 4. Certain
Restrictions.

 

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

 

(i) declare
or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of capital
stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock other than
(A) such redemptions or purchases that may be deemed to occur upon the exercise of stock options, warrants or similar rights or grant,
vesting or lapse of restrictions on the grant of any performance shares, restricted stock, restricted stock units or other equity awards
to the extent that such shares represent all or a portion of (x) the exercise or purchase price of such options, warrants or similar
rights or other equity awards or (y) the amount of withholding taxes owed by the holder of such award in respect of such grant, exercise,
vesting or lapse of restrictions; (B) such purchases necessary to satisfy the issuance of any shares upon the exercise or to satisfy
the vesting and settlement of any options, warrants or similar rights or other equity awards pursuant to the terms of the Corporation’s
equity plans maintained for the benefit its employees, directors and other service providers; or (C) the repurchase, redemption or other
acquisition or retirement for value of any such shares from employees, directors, former directors, consultants or former consultants
of the Corporation or their respective estate, spouse, former spouse or family member, pursuant to the terms of the agreement pursuant
to which such shares were acquired;

 

    A-2

     

    

 

(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 A Preferred Stock, except dividends paid ratably on the Series A Preferred
Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders
of all such shares are then entitled;

 

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

 

(iv) purchase
or otherwise acquire for consideration any shares of Series A Preferred Stock, or any shares of capital stock ranking on a parity
with the Series A 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 Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of stock
of the Corporation unless the Corporation could, under Section 4(a) above, purchase or otherwise acquire such shares at such
time and in such manner.

 

Section 5. Reacquired
Shares. Any shares of Series A Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall
be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued
shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock to be created by resolution or resolutions of
the Board, subject to the conditions and restrictions on issuance set forth herein.

 

Section 6. Liquidation,
Dissolution or Winding Up.

 

(a) Upon any liquidation (voluntary
or otherwise), dissolution or winding up of the Corporation, no distribution shall be made to the holders of shares of capital stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock unless, prior thereto,
the holders of shares of Series A Preferred Stock shall have received $1,000 per share, plus an amount equal to accrued and unpaid dividends
and distributions thereon, whether or not declared, to the date of such payment (the “Series A Liquidation Preference”).
Following the payment of the full amount of the Series A Liquidation Preference, no additional distributions shall be made to the holders
of shares of Series A Preferred Stock unless, prior thereto, the holders of shares of Common Stock have received an amount per share (the
“Common Adjustment”) equal to the quotient obtained by dividing (i) the Series A Liquidation Preference
by (ii) 1,000 (as appropriately adjusted as set forth in Section 6(c) below to reflect such events as stock splits, reverse
stock splits, stock dividends and recapitalizations with respect to the Common Stock) (such number in clause (ii), the “Adjustment
Number”). Following the payment of the full amount of the Series A Liquidation Preference and the Common Adjustment in respect
of all outstanding shares of Series A Preferred Stock and Common Stock, respectively, and the payment of liquidation preferences of all
other shares of capital stock which rank prior to or on a parity with Series A Preferred Stock, holders of Series A Preferred Stock and
holders of shares of Common Stock shall receive their ratable and proportionate share of the remaining assets to be distributed in the
ratio of the Adjustment Number to 1 with respect to such Preferred Stock and Common Stock, on a per share basis, respectively.

 

(b) In
the event, however, that there are not sufficient assets available to permit payment in full of the Series A Liquidation Preference and
the liquidation preferences of all other series of Preferred Stock, if any, which rank on a parity with the Series A Preferred Stock,
then such remaining assets shall be distributed ratably to the holders of such parity shares in proportion to their respective liquidation
preferences. In the event, however, that there are not sufficient assets available to permit payment in full of the Common Adjustment,
then such remaining assets shall be distributed ratably to the holders of Common Stock.

 

(c) In
the event the Corporation at any time after the Rights Declaration Date (i) declares any dividend on Common Stock payable in shares
of Class A Common Stock, (ii) subdivides the outstanding Common Stock or (iii) combines the outstanding Common Stock into a
smaller number of shares, then in each such case the Adjustment Number in effect immediately prior to such event shall be adjusted by
multiplying such Adjustment Number by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such
event.

 

    A-3

     

    

 

Section 7. Consolidation,
Merger, Etc. In case the Corporation enters into any consolidation, merger, combination or other transaction in which the shares
of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case each
share of Series A Preferred Stock shall at the same time be similarly exchanged or changed into an amount per share (subject to the provision
for adjustment hereinafter set forth) equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other property (payable
in kind), as the case may be, for which or into which each share of Common Stock is exchanged or changed. In the event the Corporation
at any time after the Rights Declaration Date (a) declares any dividend on Common Stock payable in shares of Class A Common Stock,
(b) subdivides the outstanding Common Stock or (c) combines the outstanding Common Stock into a smaller number of shares, then
in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Preferred
Stock shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior
to such event.

 

Section 8. No Redemption.
The shares of Series A Preferred Stock shall not be redeemable.

 

Section 9. Ranking.
The Series A Preferred Stock shall rank junior to all other series of the Corporation’s Preferred Stock as to the payment of
dividends and the distribution of assets, whether or not upon the dissolution, liquidation or winding up of the Corporation, unless the
terms of any such series provides otherwise.

 

Section 10. Amendment.
The Charter shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of
the Series A Preferred Stock so as to affect them adversely without the affirmative vote of the holders of two-thirds of the outstanding
shares of Series A Preferred Stock, voting separately as a class.

 

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

 

*
* * * * * *

 

    A-4

     

    

 

IN
WITNESS WHEREOF, the Corporation has executed this Certificate of Designation as of September 26, 2022.

 

	 	PURPLE INNOVATION, INC.
	 	 	 	 
	 	By:	     
	 		Name:	   
	 		Title:	 

 

Certificate
of Designation

 

     

     

    

 

Exhibit
B

 

[Form
of Rights Certificate]

 

Certificate
No. R- __________ Rights

 

NOT
EXERCISABLE AFTER SEPTEMBER 25, 2023 OR EARLIER IF REDEEMED OR EXCHANGED BY THE COMPANY OR AN EARLIER “EXPIRATION TIME” (AS
DEFINED IN THE RIGHTS AGREEMENT) OCCURS. AS SET FORTH IN THE RIGHTS AGREEMENT, THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF
THE COMPANY, AT $0.001 PER RIGHT, AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS
BENEFICIALLY OWNED BY AN “ACQUIRING PERSON” OR ANY “RELATED PERSON” OF AN “ACQUIRING PERSON” (AS
SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS SHALL BECOME NULL AND VOID.

 

[THE
RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN “ACQUIRING PERSON”
OR A “RELATED PERSON” OF AN “ACQUIRING PERSON” (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY,
THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY SHALL BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e)
OF SUCH AGREEMENT.]*

 

 

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

 

    B-1

     

    

 

Rights
Certificate

 

PURPLE
INNOVATION, 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 September 25, 2022 (as amended from time to time in accordance
with its terms, the “Rights Agreement”), by and between Purple Innovation, Inc., a Delaware corporation (the
“Company”), and Pacific Stock Transfer Company, the rights agent (and any successor rights agent, the “Rights
Agent”), to purchase from the Company at any time prior to 5:00 P.M. (New York City time) on September 25, 2023 at
the office or offices of the Rights Agent designated for such purpose, or its successors as Rights Agent, one one-thousandth of a fully
paid, non-assessable share of Series A Junior Participating Preferred Stock, par value $0.0001 per share (the “Preferred Stock”),
of the Company, at an exercise price of $20.00 per one one-thousandth of a share (the “Exercise Price”), upon
presentation and surrender of this Rights Certificate with the Form of Election to Purchase and related Certificate properly completed
and duly executed. The number of Rights evidenced by this Rights Certificate (and the number of shares which may be purchased upon exercise
thereof) set forth above, and the Exercise Price per share set forth above, are the number and Exercise Price as of October 6, 2022, based
on the Preferred Stock as constituted at such date. The Company reserves the right to require prior to the occurrence of a Triggering
Event (as such term is defined in the Rights Agreement) that, upon any exercise of Rights, a number of Rights be exercised so that only
whole shares of Preferred Stock will be issued. Capitalized terms used but not defined herein shall having the meanings specified in the
Rights Agreement.

 

Upon
the occurrence of a Flip-in Event, if the Rights evidenced by this Rights Certificate are Beneficially Owned by (i) an Acquiring
Person or a Related Person of an Acquiring Person, (ii) a transferee of any such Acquiring Person or Related Person or (iii) under
certain circumstances specified in the Rights Agreement, a transferee of a Person who, after such transfer, became an Acquiring Person
or a Related Person of such Acquiring Person, such Rights shall become null and void and no holder hereof shall have any right with respect
to such Rights from and after the occurrence of such Flip-in Event.

 

As
provided in the Rights Agreement, the Exercise Price and the number and kind of shares of Preferred Stock or other securities which may
be purchased upon the exercise of the Rights evidenced by this Rights Certificate are subject to modification and adjustment upon the
happening of certain events, including Triggering Events.

 

This
Rights Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions
are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full
description of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the
holders of the Rights Certificates, which limitations of rights include the temporary suspension of the exercisability of such Rights
under the specific circumstances set forth in the Rights Agreement. Copies of the Rights Agreement are on file at the office of the Company
and are also available upon written request to the Company.

 

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

 

    B-2

     

    

 

Subject
to the provisions of the Rights Agreement, the Rights evidenced by this Rights Certificate may, in each case at the option of the
Company, be (i) redeemed by the Company at a redemption price of $0.001 per Right or (ii) exchanged in whole or in part
for shares of Class A common stock, par value $0.0001 per share, of the Company. Immediately upon the action of the Board of
Directors of the Company authorizing redemption, the Rights shall terminate and the only right of the holders of Rights shall be to
receive the redemption price.

 

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

 

No
holder of this Rights Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of shares of
Preferred Stock 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 or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders (except
as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced
by this Rights Certificate shall have been exercised as provided in the Rights Agreement.

 

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

 

*
* * * * * *

 

    B-3

     

    

 

WITNESS
the facsimile signature of the proper officer of the Company.

 

Dated as of __________, _______

 

	 	PURPLE INNOVATION, INC.
	 	 	 	 
	 	By:	     
	 		Name:	   
	 		Title:	 

 

	Countersigned:	 
	PACIFIC STOCK TRANSFER COMPANY	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

    B-4

     

    

 

[Form
of Reverse Side of Rights Certificate]

 

FORM
OF ASSIGNMENT

 

(To
be executed by the registered holder if such

 

holder
desires to transfer the Rights Certificate.)

 

FOR
VALUE RECEIVED ________________________________________ hereby sells, assigns and transfers unto ___________________________________________________

________________________________________________________________________

(Please print name and address of transferee)

this
Rights Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint ____________
as attorney in fact, to transfer the within Rights Certificate on the books of the within-named Company, with full power of substitution.

 

Dated:
______________, _______

_____________________________

 

Signature

 

Signature
Medallion Guaranteed:

 

Signatures
must be guaranteed by an “eligible guarantor institution” as defined in Rule 17Ad-15 promulgated under the Securities Exchange
Act of 1934, as amended, which is a member of a recognized Medallion Signature Guarantee Program.

 

    B-5

     

    

 

CERTIFICATE

 

The
undersigned hereby certifies by checking the appropriate boxes that:

 

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

 

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

 

Dated:
______________, _______

_____________________________

 

Signature

 

Signature
Medallion Guaranteed:

 

Signatures
must be guaranteed by an “eligible guarantor institution” as defined in Rule 17Ad-15 promulgated under the Securities Exchange
Act of 1934, as amended, which is a member of a recognized Medallion Signature Guarantee Program.

 

    B-6

     

    

 

NOTICE

 

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

 

In
the event the certification set forth above is not completed, the Company shall deem the Beneficial Owner of the Rights evidenced by
this Rights Certificate to be an Acquiring Person or a Related Person thereof (as such terms are defined in the Rights Agreement) and,
in the case of an Assignment, shall affix a legend to that effect on any Rights Certificates issued in exchange for this Rights Certificate.

 

    B-7

     

    

 

FORM
OF ELECTION TO PURCHASE

 

(To
be executed if holder desires to exercise Rights represented by the Rights Certificate.)

 

TO:
PURPLE INNOVATION, INC.

 

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

 

Please
insert social security or other identifying number: ______________________

________________________________________________________________

(Please print name and address)

________________________________________________________________

 

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

 

Please
insert social security or other identifying number: ______________________

_________________________________________________________________

(Please print name and address)

 

_________________________________________________________________

 

Dated:
______________, _______

_____________________________

 

Signature

 

Signature
Medallion Guaranteed:

 

Signatures
must be guaranteed by an “eligible guarantor institution” as defined in Rule 17Ad-15 promulgated under the Securities Exchange
Act of 1934, as amended, which is a member of a recognized Medallion Signature Guarantee Program.

 

    B-8

     

    

 

CERTIFICATE

 

The
undersigned hereby certifies by checking the appropriate boxes that:

 

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

 

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

 

Dated:
______________, _______

_____________________________

 

Signature

 

Signature
Medallion Guaranteed:

 

Signatures
must be guaranteed by an “eligible guarantor institution” as defined in Rule 17Ad-15 promulgated under the Securities Exchange
Act of 1934, as amended, which is a member of a recognized Medallion Signature Guarantee Program.

 

    B-9

     

    

 

NOTICE

 

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

 

In
the event the certification set forth above is not completed, the Company shall deem the Beneficial Owner of the Rights evidenced by
this Rights Certificate to be an Acquiring Person or a Related Person thereof (as such terms are defined in the Rights Agreement), and
the Election to Purchase will not be honored.

 

    B-10

     

    

 

Exhibit
C

 

SUMMARY
OF RIGHTS TO PURCHASE PREFERRED STOCK

 

On September 25, 2022, the
Special Committee (the “Special Committee”) of the board of directors (the “Board”)
of Purple Innovation, Inc., a Delaware corporation (the “Company”), adopted a stockholder rights agreement and
declared a dividend of one right (a “Right”) for each outstanding share of Class A common stock, par value $0.0001
per share (“Class A Common Stock”), and Class B common stock, par value $0.0001 per share (together with the
Class A Common Stock, the “Common Stock”), to stockholders of record at the close of business on October 6,
2022 (the “Record Date”). Each Right entitles its holder, subject to the terms of the Rights Agreement (as defined
below), to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.0001
per share (“Preferred Stock”), of the Company at an exercise price of $20.00 per Right, subject to adjustment.
The description and terms of the Rights are set forth in a stockholder rights agreement, dated as of September 25, 2022 (the “Rights
Agreement”), between the Company and Pacific Stock Transfer Company, as rights agent (and any successor rights agent, the
“Rights Agent”).

 

The Special Committee authorized
the adoption of the Rights Agreement to protect against any coercive or abusive takeover tactics, and to help ensure that the Company’s
stockholders are not deprived of the opportunity to realize the full and fair value of their investment.

 

The
Rights Agreement should not interfere with any merger or other business combination approved by the Board.

 

The
Rights. The Rights will attach to any shares of Common Stock that become outstanding after the Record Date and prior to the earlier
of the Distribution Time (as defined below) and the Expiration Time (as defined below), and in certain other circumstances described
in the Rights Agreement.

 

Until
the Distribution Time, the Rights are associated with Common Stock and evidenced by Common Stock certificates or, in the case of uncertificated
shares of Common Stock, the book-entry account that evidences record ownership of such shares, which will contain a notation incorporating
the Rights Agreement by reference, and the Rights are transferable with and only with the underlying shares of Common Stock.

 

Until
the Distribution Time, the surrender for transfer of any shares of Common Stock will also constitute the transfer of the Rights associated
with those shares. As soon as practicable after the Distribution Time, separate rights certificates will be mailed to holders of record
of Common Stock as of the Distribution Time. From and after the Distribution Time, the separate rights certificates alone will represent
the Rights.

 

The
Rights are not exercisable until the Distribution Time. Until a Right is exercised, its holder will have no rights as a stockholder of
the Company, including the right to vote or to receive dividends.

 

Separation
and Distribution of Rights; Exercisability. Subject to certain exceptions, the Rights become exercisable and trade separately
from Common Stock only upon the “Distribution Time,” which occurs upon the earlier of:

 

		●	the
                                            close of business on the tenth (10th) day after the “Stock Acquisition Date”
                                            (which is defined as (a) the first date of public announcement that any person or group has
                                            become an “Acquiring Person,” which is defined as a person or group
                                            that, together with its affiliates and associates, beneficially owns the Specified Percentage
                                            (as defined below) or more of the outstanding shares of Common Stock (with certain exceptions,
                                            including those described below) or (b) such other date, as determined by the Board, on which
                                            a person or group has become an Acquiring Person) or

 

		●	the
                                            close of business on the tenth (10th) business day (or such later date as may be determined
                                            by the Board prior to such time as any person or group becomes an Acquiring Person) after
                                            the commencement of a tender offer or exchange offer that, if consummated, would result in
                                            a person or group becoming an Acquiring Person.

 

		●	“Specified
                                            Percentage” shall mean 20% (twenty percent) when referring to the Beneficial Ownership
                                            of any Person.

 

		●	An
                                            Acquiring Person does not include:

 

    C-1

     

    

 

		●	the
                                            Company or any subsidiary of the Company;

 

		●	any
                                            officer, director or employee of the Company or any subsidiary of the Company in his or her
                                            capacity as such;

 

		●	any
                                            employee benefit plan of the Company or of any subsidiary of the Company or any entity or
                                            trustee holding (or acting in a fiduciary capacity in respect of) shares of capital stock
                                            of the Company for or pursuant to the terms of any such plan or for the purpose of funding
                                            other employee benefits for employees of the Company or any subsidiary of the Company; or

 

		●	any
                                            person or group that, together with its affiliates and associates, as of immediately prior
                                            to the first public announcement of the adoption of the Rights Agreement, beneficially owns
                                            the Specified Percentage or more of the outstanding shares of Common Stock so long as such
                                            person or group continues to beneficially own at least the Specified Percentage of the outstanding
                                            shares of Common Stock and does not acquire shares of Common Stock to beneficially own an
                                            amount equal to or greater than the greater of the Specified Percentage and the sum of the
                                            lowest beneficial ownership of such person or group since the public announcement of the
                                            adoption of the Rights Agreement plus  one share of the then outstanding shares of Common Stock.

 

In
addition, the Rights Agreement provides that no person or group will become an Acquiring Person as a result of share purchases or issuances
directly from the Company or through an underwritten offering approved by the Board. Also, a person or group will not be an Acquiring
Person if the Board determines that such person or group has become an Acquiring Person inadvertently and such person or group as promptly
as practicable divests a sufficient number of shares so that such person or group would no longer be an Acquiring Person.

 

Certain
synthetic interests in securities created by derivative positions, whether or not such interests are considered to be ownership of the
underlying Common Stock or are reportable for purposes of Regulation 13D of the Securities Exchange Act of 1934, as amended, are treated
as beneficial ownership of the number of shares of Common Stock equivalent to the economic exposure created by the derivative position,
to the extent actual shares of Common Stock are directly or indirectly held by counterparties to the derivatives contracts.

 

Expiration
Time. The Rights will expire on the earliest to occur of (a) the close of business on September 25, 2023 (the “Final
Expiration Time”), (b) the time at which the Rights are redeemed or exchanged by the Company (as described below) or (c)
upon the closing of any merger or other acquisition transaction involving the Company pursuant to a merger or other acquisition agreement
that has been approved by the Board before any person or group becomes an Acquiring Person (the earliest of (a), (b), and (c) being herein
referred to as the “Expiration Time”).

 

Flip-in Event.
In the event that any person or group (other than certain exempt persons) becomes an Acquiring Person (a “Flip-in Event”),
each holder of a Right (other than such Acquiring Person, any of its affiliates or associates or certain transferees of such Acquiring
Person or of any such affiliate or associate, whose Rights automatically become null and void) will have the right to receive, upon exercise,
Class A Common Stock having a value equal to two times the exercise price of the Right.

 

For example, at an exercise
price of $20.00 per Right, each Right not owned by an Acquiring Person (or by certain related parties) following a Flip-in Event would
entitle its holder to purchase $40.00 worth of Class A Common Stock for $20.00. Assuming that Class A Common Stock had a per share value
of $4.00 at that time, the holder of each valid Right would be entitled to purchase 10 shares of Class A Common Stock for $2.00.

 

    C-2

     

    

 

Flip-over
Event. In the event that, at any time following the Stock Acquisition Date, any of the following occurs (each, a “Flip-over
Event”):

 

		●	the
                                            Company consolidates with, or merges with and into, any other entity, and the Company is
                                            not the continuing or surviving entity;

 

		●	any
                                            entity engages in a share exchange with or consolidates with, or merges with or into, the
                                            Company, and the Company is the continuing or surviving entity and, in connection with such
                                            share exchange, consolidation or merger, all or part of the outstanding shares of Common
                                            Stock are changed into or exchanged for stock or other securities of any other entity or
                                            cash or any other property; or

 

		●	the
                                            Company sells or otherwise transfers, in one transaction or a series of related transactions,
                                            fifty percent (50%) or more of the Company’s assets, cash flow or earning power, each
                                            holder of a Right (except Rights which previously have been voided as described above) will
                                            have the right to receive, upon exercise, common stock of the acquiring company having a
                                            value equal to two times the exercise price of the Right.

 

Preferred
Stock Provisions. Each share of Preferred Stock, if issued: will not be redeemable, will entitle the holder thereof,
when, as and if declared, to quarterly dividend payments equal to the greater of $1,000 per share and 1,000 times the amount of all
cash dividends plus 1,000 times the amount of non-cash dividends or other distributions paid on one share of Common Stock, will
entitle the holder thereof to receive $1,000 plus accrued and unpaid dividends per share upon liquidation, will have the same voting
power as 1,000 shares of Class A Common Stock and, if shares of Common Stock are exchanged via merger, consolidation or a similar
transaction, will entitle the holder thereof to a per share payment equal to the payment made on 1,000 shares of Common
Stock.

 

Anti-dilution
Adjustments. The exercise price payable, and the number of shares of Preferred Stock or other securities or property issuable,
upon exercise of the Rights are subject to adjustment from time to time to prevent dilution:

 

		●	in
                                            the event of a stock dividend on, or a subdivision, combination or reclassification of, the
                                            Preferred Stock,

 

		●	if
                                            holders of the Preferred Stock are granted certain rights, options or warrants to subscribe
                                            for Preferred Stock or convertible securities at less than the current market price of the
                                            Preferred Stock or

 

		●	upon
                                            the distribution to holders of the Preferred Stock of evidences of indebtedness or assets
                                            (excluding regular quarterly cash dividends) or of subscription rights or warrants (other
                                            than those referred to above).

 

With
certain exceptions, no adjustment in the exercise price will be required until cumulative adjustments amount to at least one percent
(1%) of the exercise price. No fractional shares of Preferred Stock will be issued and, in lieu thereof, an adjustment in cash will be
made based on the market price of the Preferred Stock on the last trading day prior to the date of exercise.

 

Redemption;
Exchange. At any time prior to the Final Expiration Time, the Company may redeem the Rights in whole, but not in part, at a price
of $0.001 per Right (subject to adjustment and payable in cash, Class A Common Stock or other consideration deemed appropriate by the
Board). Immediately upon the action of the Board authorizing any redemption or at a later time as the Board may establish for the effectiveness
of the redemption, the Rights will terminate and the only right of the holders of Rights will be to receive the redemption price. 

 

    C-3

     

    

 

At
any time before any Acquiring Person, together with all of its affiliates and associates, becomes the beneficial owner of fifty percent
(50%) or more of the outstanding shares of Common Stock, the Company may exchange the Rights (other than Rights owned by the Acquiring
Person, any of its affiliates or associates or certain transferees of Acquiring Person or of any such affiliate or associate, whose Rights
will have become null and void), in whole or in part, at an exchange ratio of one share of Common Stock, or one one-thousandth of a share
of Preferred Stock (or of a share of a class or series of the Company’s preferred stock having equivalent rights, preferences and
privileges), per Right (subject to adjustment).

 

Amendment
of the Rights Agreement. The Company and the Rights Agent may from time to time amend or supplement the Rights Agreement without
the consent of the holders of the Rights. However, on or after the Stock Acquisition Date, no amendment can materially adversely affect
the interests of the holders of the Rights (other than the Acquiring Person, any of its affiliates or associates or certain transferees
of Acquiring Person or of any such affiliate or associate).

 

Miscellaneous.
While the distribution of the Rights will not be taxable to stockholders or to the Company, stockholders may, depending upon the
circumstances, recognize taxable income in the event that the Rights become exercisable for Class A Common Stock (or other
consideration) or for common stock of the acquiring company or in the event of the redemption of the Rights as described
above.

 

Additional
Information. A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as an exhibit to a registration
statement on Form 8-A and a current report on Form 8-K. A copy of the Rights Agreement is also available free of charge from the Company.

 

*
* * * *

 

This
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.

 

 

C-4

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