Document:

Exhibit
4.1

 

EXECUTION COPY

 

 

 

 

 

 

 

 

 

 

 

 

 

SECTION
382 TAX BENEFITS PRESERVATION PLAN

 

by
and between

 

SITO
MOBILE, LTD.

 

and 

 

CONTINENTAL
STOCK TRANSFER & TRUST COMPANY,

as Rights Agent

 

 

Dated
as of April 3, 2017

 

     

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	Section
    1.	Definitions	1
	Section
    2.	Appointment
    of Rights Agent	8
	Section
    3.	Issuance
    of Right Certificates	9
	Section
    4.	Form
    of Right Certificates; Notice to Rights Agent as to Acquiring Person	10
	Section
    5.	Countersignature
    and Registration	11
	Section
    6.	Transfer,
    Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates	12
	Section
    7.	Exercise
    of Rights; Purchase Price; Expiration Date of Rights	13
	Section
    8.	Cancellation
    and Destruction of Right Certificates	14
	Section
    9.	Reservation
    and Availability of Shares of Preferred Stock	15
	Section
    10.	Securities
    Issuable Upon Exercise	16
	Section
    11.	Adjustments
    to Number and Kind of Securities or Other Property, Number of Rights or Purchase Price	16
	Section
    12.	Certification
    of Adjustments	24
	Section
    13.	Fractional
    Rights and Fractional Shares	24
	Section
    14.	Rights
    of Action	25
	Section
    15.	Agreement
    of Right Holders	25
	Section
    16.	Right
    Certificate Holder Not Deemed a Stockholder	26
	Section
    17.	Concerning
    the Rights Agent	26
	Section
    18.	Merger
    or Consolidation or Change of Name of Rights Agent	27
	Section
    19.	Duties
    of Rights Agent	28
	Section
    20.	Change
    of Rights Agent	30
	Section
    21.	Issuance
    of New Right Certificates	31
	Section
    22.	Redemption	32
	Section
    23.	Exchange	32
	Section
    24.	Notice
    of Proposed Actions	34
	Section
    25.	Notices	35
	Section
    26.	Supplements
    and Amendments	36
	Section
    27.	Successors	37
	Section
    28.	Benefits
    of this Agreement	37
	Section
    29.	Governing
    Law	37

 

    i 

     

    

 

Table
of Contents

(continued)

 

	Section
    30.	Counterparts	37
	Section
    31.	Descriptive
    Headings	37
	Section
    32.	Severability	37
	Section
    33.	Determination
    and Actions by the Board, etc	38
	Section
    34.	Force
    Majeure	38
	Section
    35.	Further
    Assurance	38
	 	 	 
	Exhibit A – Form of Certificate of Designation of Series A Junior Participating Preferred Stock	 
	Exhibit B - Form of Right Certificate	 
	Exhibit C - Form of Summary of Rights	 

 

    ii 

     

    

 

SECTION
382 TAX BENEFITS PRESERVATION PLAN

 

SECTION
382 TAX BENEFITS PRESERVATION PLAN (this “Agreement”), dated April 3, 2017, between SITO Mobile, Ltd.,
a Delaware corporation (the “Company”), and Continental Stock Transfer & Trust Company, as rights agent
(the “Rights Agent”).

 

RECITALS:

 

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

 

WHEREAS,
on April 3, 2017, the Board of Directors of the Company (the “Board”) authorized and declared a dividend of
one right (a “Right”) for each share of the Common Stock (as hereinafter defined) of the Company outstanding
as of the Close of Business (as defined herein) on April 14, 2017 (the “Record Date”), each Right representing
the right to purchase, upon the terms and subject to the conditions herein, one one-thousandth of a share of Preferred Stock (as
defined below) of the Company (each one one-thousandth of a share, a “Unit”), and (ii) further authorized the
issuance, upon the terms and subject to the conditions herein, of one Right with respect to each share of Common Stock of the
Company that shall become outstanding between the Record Date and the earlier of the Distribution Date and the Expiration Date
(each as defined herein) (or thereafter in accordance with Section 21 hereof).

 

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

 

Section
1. Definitions.

 

For
purposes of this Agreement, the following terms shall have the meanings indicated:

 

(a)         “Acquiring
Person” means any Person who or which, together with all Affiliates and Associates of such Person, is or becomes the
Beneficial Owner of 4.99% or more of the shares of Common Stock of the Company then outstanding, as calculated pursuant hereto,
but shall not include:

 

(i)       any
Exempt Person;

 

(ii)       any
“direct public group” within the meaning of Treasury Regulations Section 1.382-2T(j)(2)(ii);

 

(iii)       any
Existing Holder unless and until such Existing Holder acquires Beneficial Ownership of any additional shares of Common Stock of
the Company after the first public announcement by the Company of the adoption of this Agreement (other than pursuant to a stock
split, reverse stock split, stock dividend, reclassification or similar transaction effected by the Company) at a time when such
Existing Holder is still the Beneficial Owner of 4.99% or more of shares of the Common Stock of the Company then outstanding,
in which case such Person shall be an Acquiring Person;

 

      

     

    

 

(iv)       any
Person who as the result of an acquisition of shares of Common Stock by the Company (or any Subsidiary of the Company, any employee
benefit plan of the Company or any Subsidiary of the Company, or any Person organized, appointed or established by the Company
for or pursuant to the terms of any such plan) which, by reducing the number of shares of Common Stock of the Company outstanding,
increases the proportionate number of shares of Common Stock of the Company Beneficially Owned by such Person to 4.99% or more
of the shares of Common Stock of the Company then outstanding; provided, however, that, if a Person shall become
the Beneficial Owner of 4.99% or more of the shares of Common Stock of the Company then outstanding by reason of acquisition of
shares by the Company (or any Subsidiary of the Company, any employee benefit plan of the Company or any Subsidiary of the Company,
or any Person organized, appointed or established by the Company for or pursuant to the terms of any such plan) and shall, after
the first public announcement by the Company of such share acquisitions by the Company (or any Subsidiary of the Company, any
employee benefit plan of the Company or any Subsidiary of the Company, or any Person organized, appointed or established by the
Company for or pursuant to the terms of any such plan), becomes the Beneficial Owner of any additional shares (other than pursuant
to a stock split, reverse stock split, stock dividend, reclassification or similar transaction effected by the Company) of Common
Stock of the Company and immediately thereafter is the Beneficial Owner of 4.99% or more of the shares of Common Stock of the
Company then outstanding, then such Person shall be an Acquiring Person; or

 

(v)       any
Person who or which, within ten (10) Business Days of being requested by the Company to advise it regarding the same, certifies
to the Company that such Person acquired shares of Common Stock in excess of 4.99% inadvertently or without knowledge of the terms
of the Rights and who or which, together with all Affiliates and Associates, thereafter within ten (10) Business Days following
such certification reduces such Person’s, together with its Affiliates’ and Associates’, Beneficial Ownership
to less than 4.99% of the shares of Common Stock then outstanding; provided, however, that (x) if the Person
requested to so certify fails to do so within ten (10) Business Days or breaches or violates such certification, then such Person
shall become an Acquiring Person immediately after such ten (10) Business Day period or such breach or violation or (y) if the
Person together with its Affiliates and Associates fails to reduce Beneficial Ownership to less than 4.99% within ten (10) Business
Days following such certification, then such Person shall become an Acquiring Person immediately after such ten (10) Business
Day period;

 

provided,
however, that no Person shall be an Acquiring Person if the Board shall have affirmatively determined, prior to or after
the Distribution Date, in light of the intent and purposes of this Agreement or other circumstances facing the Company, that such
Person shall not be deemed an Acquiring Person, unless and until such Person shall again become an Acquiring Person.

 

    	 	2	 

     

    

 

In
determining whether a Person owns 4.99% or more of the shares of Common Stock of the Company then outstanding, for all purposes
of this Agreement, all of the Common Stock of the Company Beneficially Owned by such Person shall be taken into account in the
numerator and, for purposes of the denominator, any calculation of the number of shares of Common Stock outstanding at any particular
time shall be made pursuant to and in accordance with Section 382 and the Treasury Regulations promulgated thereunder. Without
limiting the foregoing, any Person (other than a “direct public group” within the meaning of Treasury Regulations
Section 1.382-2T(j)(2)(ii)) shall be treated as the Beneficial Owner of 4.99% or more shares of the Common Stock of the Company
then outstanding if, in the determination of the Board, that Person would be treated as a “5-percent stockholder”
for purposes of Section 382 (substituting “4.99” for “5” each time “five” or “5”
is used in or for purposes of Section 382). Notwithstanding anything to the contrary set forth herein, any shares of Common Stock
of which a Person or any Affiliate or Associate becomes the Beneficial Owner pursuant to an equity compensation award granted
to such Person by the Company or as a result of an adjustment by the Company to the number of shares of Common Stock represented
by such equity compensation award pursuant to the terms thereof shall, solely for purposes of determining the number of shares
of Common Stock of which such Person or any Affiliate or Associate is the Beneficial Owner at any time, not be included in (x)
the calculation of the number of shares of Common Stock outstanding or (y) the particular percentage of the number of shares of
Common Stock of which such Person and/or any Affiliate or Associate of such Person is the Beneficial Owner.

 

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

 

(c)         “Affiliate”
and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules
and Regulations under the Exchange Act as in effect on the date of this Agreement, and to the extent not included within the foregoing
clause of this Section 1(c), shall also include, with respect to any Person (other than an Exempt Person or an Existing Holder),
any other Person whose Common Stock would be deemed constructively or otherwise owned by, or otherwise aggregated with shares
owned by, such first Person or owned by a single “entity” pursuant to the provisions of Section 382; provided,
however, that a Person will not be deemed to be the Affiliate or Associate of another Person solely because either or both
Persons are or were directors of the Company.

 

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

 

(i)       which
such Person or any of such Person’s Affiliates or Associates (A) directly or indirectly has the right to vote or dispose
of, alone or in concert with others, or (B) is deemed to beneficially own, directly or indirectly, within the meaning of Rule
13d-3 of the General Rules and Regulations under the Exchange Act as in effect on the date of this Agreement, including, with
respect to both clause (A) and clause (B), pursuant to any agreement, arrangement or understanding (whether or not in writing),
but only if the effect of such agreement, arrangement or understanding is to treat such Persons as an “entity” under
Section 1.382-3(a)(1) of the Treasury Regulations; provided, however, that a Person shall not be deemed the Beneficial
Owner of, or to Beneficially Own securities (including rights, options or warrants) which are convertible or exchangeable into
or exercisable for Common Stock except to the extent the acquisition or transfer of such rights, options or warrants would reasonably
be expected to result in the rights, options or warrants being treated as exercised on the date of their acquisition or transfer
under Section 382;

 

    	 	3	 

     

    

 

(ii)       which
such Person or any of such Person’s Affiliates or Associates owns, directly or indirectly, or has the right to acquire (whether
such right is exercisable immediately, or only after the passage of time, compliance with regulatory requirements, the fulfillment
of a condition, or otherwise) pursuant to any agreement, arrangement or understanding (whether or not in writing), or upon the
exercise of conversion rights, exchange rights, warrants, options, or other rights (including, without limitation, within the
meaning of Section 382) or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner
of, or to beneficially own, (A) any shares of Common Stock by virtue of owning securities or other interests (including rights,
options or warrants) that are convertible or exchangeable into, or exercisable for, such shares of Common Stock, except to the
extent that upon the issuance, acquisition or transfer of such securities or other interests, such securities or other interests
would be treated as exercised under Section 1.382-4(d) or other applicable sections of the Treasury Regulations, (B) securities
tendered pursuant to a tender offer or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates
or Associates until such tendered securities are accepted for purchase or exchange or (C) securities issuable upon the exercise
or exchange of Rights;

 

(iii)       which
are owned, directly or indirectly, by any other Person, if such Person or any of such Person’s Affiliates or Associates
has any agreement, arrangement or understanding (whether or not in writing) with such other Person or any of such other Person’s
Affiliates or Associates for the purpose of acquiring, holding, voting or disposing of any securities of the Company, but only
if the effect of such agreement, arrangement or understanding is to treat such Persons as an “entity” under Section
1.382-3(a)(1) of the Treasury Regulations; and

 

(iv)       to
the extent not included within the foregoing provisions of this Section, a Person shall be deemed the “Beneficial Owner”
of and shall be deemed to “beneficially own” or have “beneficial ownership” of securities, if such Person
would be deemed to constructively own such securities pursuant to Sections 1.382-2T(h) and 1.382-4(d) of the Treasury Regulations,
such Person owns such securities pursuant to a “coordinated acquisition” treated as a single “entity”
as defined in Section 1.382-3(a)(1) of the Treasury Regulations, or such securities are otherwise aggregated with securities owned
by such Person, pursuant to the provisions of Section 382;

 

provided,
however, that (i) a Person will not be deemed the Beneficial Owner of, or to Beneficially Own, any security (A) if such
Person has the right to vote such security pursuant to an agreement, arrangement or understanding (whether or not in writing)
which (1) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation
made pursuant to, and in accordance with, Section 14(a) of the Exchange Act by means of a solicitation statement filed on Schedule
14A, and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report), or (B)
if such beneficial ownership arises solely as a result of such Person’s status as a “clearing agency,” as defined
in Section 3(a)(23) of the Exchange Act; (ii) nothing in this definition will 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 an underwriting syndicate until the expiration of forty (40) calendar days after the date of such acquisition,
or such later date as the Board may determine in any specific case; (iii) subject to Section 1(d)(iv), above, a Person shall not
be deemed the Beneficial Owner of, or to Beneficially Own, any securities if (A) such securities would not be deemed constructively
or otherwise owned by, or otherwise aggregated with shares owned by, such Person, and (B) such securities would not be deemed
constructively or otherwise owned by a single “entity”, in each case, for purposes of Section 382; and (iv) a Person
shall not be deemed the Beneficial Owner of, or to Beneficially Own any securities which such Person or any of such Person’s
Affiliates or Associates would otherwise be deemed to Beneficially Own pursuant to this Section 1(d) solely as a result of any
merger or other acquisition agreement between the Company and such Person (or one or more of such Person’s Affiliates or
Associates), or any tender, voting or support agreement entered into by such Person (or one or more of such Person’s Affiliates
or Associates) in connection therewith, if, prior to such Person becoming an Acquiring Person, the Board has approved such merger
or other acquisition agreement and any such tender, voting or support agreement entered into in connection therewith.

 

    	 	4	 

     

    

 

(e)       “Board” shall have the meaning set forth in the recitals.

 

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

 

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

 

(h)       “Code”
shall have the meaning set forth in the preamble.

 

(i)       “Common
Stock,” when used with reference to the Company, shall mean the common stock (presently $0.001 par value per share)
of the Company. “Common Stock”, when used with reference to any Person other than the Company, shall mean shares
of the capital stock with the greatest voting power of such other Person or, if such other Person is a subsidiary of another Person,
the entity which ultimately controls such first-mentioned Person. “Common Stock” when used with reference to
any Person not organized in corporate form shall mean units of beneficial interest which (x) represent the right to participate
generally in the profits and losses of such Person (including without limitation any flow-through tax benefits resulting from
an ownership interest in such Person) and (y) are entitled to exercise the greatest voting power of such Person or, in the case
of a limited partnership, have the power to remove the general partner or partners.

 

(j)       “Company”
shall have the meaning set forth in the preamble.

 

(k)       “Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

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

 

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

 

    	 	5	 

     

    

 

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

 

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

 

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

 

(q)       “Excess
Exchange Shares” shall have the meaning set forth in Section 23.

 

(r)       “Existing
Holder” shall mean any Person who, immediately prior to the first public announcement of the adoption of this Agreement
by the Company, is the Beneficial Owner of 4.99% or more of the Common Stock then outstanding, together with any Affiliates and
Associates of such Person.

 

(s)       “Exempt
Person” shall mean (i) the Company or any Subsidiary of the Company, in each case including, without limitation, the
officers and board of directors thereof acting solely in their fiduciary capacity, (ii) any employee benefit plan of the Company
or any Subsidiary of the Company or any entity or trustee organized, appointed, established or holding shares of Common 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, (iii) any Person who the Board determines, in its sole discretion, prior to the
time such Person would otherwise be an Acquiring Person, should be permitted to become the Beneficial Owner of up to a number
of the shares of Common Stock determined by the Board (the “Exempted Number”) and be exempted from being an
Acquiring Person, unless and until such Person acquires Beneficial Ownership of shares of Common Stock of the Company in excess
of the Exempted Number (other than pursuant to a stock split, reverse stock split, stock dividend, reclassification or similar
transaction effected by the Company) in which case such Person shall be an Acquiring Person; provided, however,
that the Board may make such exemption subject to such conditions, if any, which the Board may determine, and (iv) any Person
who is a transferee from the estate of an Exempt Person and who receives Common Stock of the Company as a bequest or inheritance
from such Exempt Person, but only for so long as such transferee continues to be the Beneficial Owner of 4.99% or more of the
then outstanding shares of Common Stock of the Company.

 

(t)       “Expiration
Date” shall mean the earliest of (i) the date on which all of the Rights are redeemed as provided in Section 22, (ii)
the date on which the Rights are exchanged as provided in Section 23, (iii) the consummation of a reorganization transaction entered
into by the Company resulting in the imposition of stock transfer restrictions that the Board, in its sole discretion, determines
will provide protection for the Company’s Tax Benefits similar to that provided by this Agreement, (iv) the Close of Business
on the effective date of the repeal of Section 382 (but excluding the repeal or withdrawal of any Treasury Regulations thereunder),
or any other change, if the Board determines in its sole discretion, that this Agreement is no longer necessary or desirable for
the preservation of Tax Benefits, (v) the date on which the Board otherwise determines, in its sole discretion, that this Agreement
is no longer necessary to preserve the Tax Benefits, and (vi) the beginning of a taxable year of the Company to which the Board
determines in its sole discretion, that no Tax Benefits may be carried forward.

 

    	 	6	 

     

    

 

(u)       “Final
Expiration Date” shall mean April 3, 2020.

 

(v)       “NASDAQ”
shall mean the NASDAQ Stock Market or any of its listing venues.

 

(w)       “NYSE”
shall mean the New York Stock Exchange.

 

(x)       “Person”
shall mean any individual, firm, corporation, partnership, limited liability company, limited liability partnership, association,
trust, syndicate or other entity, or any group of persons making a “coordinated acquisition” of shares of Common Stock
or otherwise treated as an entity within the meaning of Section 1.382-3(a)(1) of the Treasury Regulations or otherwise for purposes
of Section 382, or any successor provision or replacement provision, and includes any successor (by merger or otherwise) of such
individual or entity.

 

(y)       
“Preferred Stock” shall mean shares of Series A Junior Participating Cumulative Preferred Stock, par value
$0.001 per share, of the Company having the voting powers, designations, preferences and relative rights described in the Certificate
of Designation, Preferences and Rights set forth in Exhibit A hereto, and, to the extent that there are 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 of the Company designated for such purpose containing terms substantially similar to the terms of the Series
A Junior Participating Preferred Stock.

 

(z)       “Purchase
Price” shall have the meaning set forth in Section 7(b).

 

(aa)       “Record
Date” shall have the meaning set forth in the recitals.

 

(bb)       “Redemption
Price” shall have the meaning set forth in Section 22(a).

 

(cc)       “Right”
shall have the meaning set forth in the preamble.

 

(dd)       “Rights
Agent” shall have the meaning set forth in the preamble.

 

(ee)       “Right
Certificate” shall have the meaning set forth in Section 3(a).

 

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

 

(gg)       “Section
382” shall mean Section 382 of the Code and the Treasury Regulations promulgated thereunder.

 

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

 

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

 

(jj)       “Stock
Acquisition Date” shall mean the first date of a public announcement (which, for purposes of this definition, shall
include, without limitation, a report filed or amended pursuant to Section 13(d) under the Exchange Act) by the Company or an
Acquiring Person indicating that an Acquiring Person has become such; provided that, if such Person is determined by the Board
not to be or have become an Acquiring Person, then no Stock Acquisition Date shall be deemed to have occurred.

 

    	 	7	 

     

    

 

(kk)       “Subsidiary”
of a Person shall mean any corporation or other entity of which securities or other ownership interests having ordinary voting
power sufficient to elect or appoint a majority of the board of directors or other persons performing similar functions are beneficially
owned, directly or indirectly, by such Person and any corporation or other entity that is otherwise controlled by such Person.

 

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

 

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

 

(nn)       “Tax
Benefits” shall mean the net operating loss carryforwards, capital loss carryforwards, general business credit carryforwards,
alternative minimum tax credit carryforwards and foreign tax credit carryforwards, as well as any loss or deduction attributable
to a “net unrealized built-in loss” within the meaning of Section 382, and the Treasury Regulations promulgated thereunder,
of the Company or any direct or indirect Subsidiary thereof.

 

(oo)       “Trading
Day” shall have the meaning set forth in Section 11(d)(i).

 

(pp)       “Treasury
Regulations” shall mean final and temporary (but not proposed) regulations of the U.S. Department of the Treasury promulgated
under the Code, as such regulations may be amended from time to time.

 

(qq)       “Triggering
Event” shall mean any Section 11(a)(ii) Event.

 

(rr)       “Trust”
shall have the meaning set forth in Section 23(a).

 

(ss)       “Trust
Agreement” shall have the meaning set forth in Section 23(a).

 

(tt)       “Unit”
shall have the meaning set forth in the recitals.

 

Section
2.Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act as agent for the Company and the
holders of the Rights (who, in accordance with Section 3 hereof, shall prior to the Distribution Date also be the holders of the
Common Stock) in accordance with the express terms and conditions of this Agreement (and no implied terms and conditions), and
the Rights Agent hereby accepts this appointment. The Company may from time to time appoint such co-Rights Agents as it may deem
necessary or desirable, 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 Agents and any co-Rights Agents shall be as the Company shall
determine and the Company shall promptly notify the Rights Agent of such duties. The Rights Agent shall have no duty to supervise,
and in no event shall be liable for, the acts or omissions of any co-Rights Agent.

 

    	 	8	 

     

    

 

Section
3.Issuance of Right Certificates.

 

(a)       Until
the Close of Business on the earlier to occur of (i) the tenth (10th) calendar day after the Stock Acquisition Date or (ii) the
tenth (10th) calendar day after the date of the commencement by any Person of a tender or exchange offer, upon the successful
consummation of which such Person, together with its Affiliates and Associates, would be an Acquiring Person (irrespective of
whether any shares are actually purchased pursuant to such offer), or in the case of clause (ii) such later date specified by
the Board which date shall not be later than the date specified in clause (i) (the earliest of such dates being referred to herein
as the “Distribution Date”), (x) the Rights will be evidenced by the certificates for the shares of Common
Stock of the Company registered in the names of the holders of the shares of Common Stock of the Company (which certificates for
shares of Common Stock of the Company shall be deemed also to be certificates for Rights) or, with respect to shares of Common
Stock of the Company not represented by certificates, the Rights related thereto will be evidenced by the notation on the records
of the Company representing these shares, and, in each case, not by separate certificates, (y) the registered holders of shares
of Common Stock of the Company shall also be the registered holders of the associated Rights, and (z) the Rights (and the right
to receive certificates therefor) will be transferable only in connection with the transfer of the underlying shares of Common
Stock of the Company (including a transfer to the Company). As soon as practicable after the Distribution Date, the Rights Agent
will, if requested to do so by the Company and provided with all necessary information and documents, at the expense of the Company,
send, by first-class, postage prepaid mail, to each record holder of shares of Common Stock of the Company as of the Close of
Business on the Distribution Date, at the address of the holder shown on the records of the Company, a certificate in substantially
the form of Exhibit B (the “Right Certificate”) evidencing the Rights underlying the shares of Common Stock
of the Company so held. As of and after the Distribution Date, the Rights will be evidenced solely by the Right Certificates.
The Company shall promptly notify the Rights Agent in writing upon the occurrence of the Distribution Date and, if notification
is given orally, the Company shall confirm the same in writing on or prior to the next succeeding Business Day. Until such written
notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that the Distribution Date
has not occurred.

 

(b)       Upon
request of any holder of record of a Right, the Company will send a copy of this Agreement and a copy of the Summary of the Terms
of the Rights, substantially in the form attached hereto as Exhibit C (the “Summary of Rights”), by postage
prepaid mail, to the holder.

 

(c)       Until
the Distribution Date (or, if earlier, the Expiration Date or Final Expiration Date), the surrender for transfer of any certificate
for shares of Common Stock of the Company shall also constitute the surrender for transfer of the Rights associated with the shares
of Common Stock represented thereby and the transfer of shares of Common Stock on the records of the Company shall also constitute
the transfer of the Rights associated with the shares.

 

    	 	9	 

     

    

 

(d)       Certificates
issued for shares of Common Stock of the Company (including, without limitation, certificates issued upon transfer or exchange
of shares of Common Stock of the Company) after the Record Date, but prior to the earlier of the Distribution Date, the Expiration
Date or the Final Expiration Date, shall have impressed on, printed on, written on or otherwise affixed to them the following
legend:

 

“This
certificate also evidences and entitles the holder to certain rights (the “Rights”) as set forth in a Section
382 Tax Benefits Preservation Plan by and between SITO Mobile, Ltd. and Continental Stock Transfer & Trust Company, as Rights
Agent (or any successor rights agent), dated as of April 3, 2017, as from time to time amended, extended or renewed (the “Plan”),
the terms of which are incorporated herein by reference and a copy of which is on file at the principal executive office of the
Company. Under certain circumstances, as set forth in the Plan, such Rights will be evidenced by separate certificates and will
no longer be evidenced by this certificate. The Company will mail to the holder of record of this certificate a copy of the Plan,
without charge, within ten Business Days (as defined in the Plan) after receipt of a written request therefor. Under certain circumstances,
as provided in the Plan, Rights issued to or beneficially owned by Acquiring Persons or their Associates or Affiliates (as such
terms are defined in the Plan) or any purported subsequent holder of such Rights will become null and void. The Rights shall not
be exercisable, and shall be void so long as held, by a holder in any jurisdiction where the requisite qualification to the issuance
to such holder, or the exercise by such holder, of the Rights in such jurisdiction shall not have been obtained or be obtainable.”

 

The
failure to print the foregoing legend on any such certificate representing shares of Common Stock of the Company or any defect
therein shall not affect in any manner whatsoever the application or interpretation of the provisions of Section 7(e) hereof.

 

Section
4.       Form of Right Certificates; Notice to Rights Agent as to Acquiring Person.

 

(a)       The
Right Certificates (and the forms of election to purchase shares and forms of assignment to be printed on the reverse thereof),
when, as and if issued, shall 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 (which do not affect
the rights, liabilities, duties 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 law or with any rule or regulation made pursuant thereto or with any law,
rule or regulation of any stock exchange on which the Rights may from time to time be listed, or to conform to usage. Subject
to the terms and conditions hereof, the Right Certificates evidencing the Rights, whenever issued, on their face shall entitle
the holders thereof to purchase, for each Right, one Unit, at the Purchase Price, but the number and type of shares or other property
holders thereof shall be entitled to purchase and the Purchase Price, shall be subject to adjustment as provided in this Agreement.

 

    	 	10	 

     

    

 

(b)       Notwithstanding
any other provision of this Agreement, any Right Certificate that represents Rights that may be or may have been at any time on
or after the Distribution Date beneficially owned by an Acquiring Person or any Affiliate or Associate thereof (or any purported
transferee of such Rights) may have impressed on, printed on, written on or otherwise affixed to it the following legend:

 

“The
beneficial owner of the Rights (the “Rights”) represented by this Right Certificate may be an Acquiring Person
or an Affiliate or Associate (as such terms are defined in the Section 382 Tax Benefits Preservation Plan by and between SITO
Mobile, Ltd. and Continental Stock Transfer & Trust Company, as Rights Agent (or any successor rights agent), dated as of
April 3, 2017, as from time to time amended, extended or renewed (the “Plan”)) of an Acquiring Person or a
subsequent holder of a Right Certificate beneficially owned by such Persons (as defined in the Plan). Accordingly, under certain
circumstances as provided in the Plan, this Right Certificate and the Rights represented hereby will be null and void.”

 

The
provisions of this Agreement shall be operative whether or not the foregoing legend is imprinted on any such Right Certificate.
The Company shall give notice to the Rights Agent promptly after it becomes aware of the existence of any Acquiring Person.

 

Section
5.Countersignature and Registration.

 

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

 

(b)       Following
the Distribution Date and receipt by the Rights Agent of written notice to that effect and all other relevant information referred
to in Section 3(a), the Rights Agent will keep or cause to be kept books for registration and transfer of the Right Certificates
issued hereunder. The books shall show the names and addresses of the respective holders of the Right Certificates, the number
of Rights evidenced on its face by each of the Right Certificates, the date of each of the Right Certificates, and the certificate
numbers for each of the Right Certificates.

 

    	 	11	 

     

    

 

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

 

(a)       Subject
to the provisions of Sections 4(b), 7(e) and 13(b), at any time after the Close of Business on the Distribution Date and at or
prior to the Close of Business on the earlier of the Expiration Date or the Final Expiration Date, any Right Certificate or Right
Certificates may be (a) transferred or (b) split up, combined or exchanged for another Right Certificate or Right Certificates,
entitling the registered holder to purchase a like number of Units (and/or other securities or property, as the case may be) as
the Right Certificate or Right Certificates surrendered then entitled such holder to purchase. Any registered holder desiring
to transfer any Right Certificate shall surrender the Right Certificate at the office of the Rights Agent designated for this
purpose with the form of assignment on the reverse side thereof duly endorsed (or enclose with such Right Certificate a written
instrument of transfer in a form satisfactory to the Company and the Rights Agent, duly executed by the registered holder thereof
or the registered holder’s attorney duly authorized in writing), and with all signatures duly guaranteed. Any registered
holder desiring to split up, combine or exchange any Right Certificate shall make such request in a writing delivered to the Rights
Agent, and shall surrender the Right Certificate or Right Certificates to be split up, combined or exchanged at the office of
the Rights Agent designated for such purpose. Thereupon or as promptly as practicable thereafter, the Company shall prepare, execute
and deliver to the Rights Agent, and the Rights Agent shall countersign (by manual or facsimile signature) and deliver to the
Person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The Company may require
payment from the holder of a Right Certificate of a sum sufficient to cover any tax or governmental charge that may be imposed
in connection with any transfer, split up, combination or exchange of Right Certificates. The Rights Agent shall have no duty
or obligation to take any action under this Section 6 unless and until the Rights Agent is reasonably satisfied that all such
taxes and/or charges have been paid,

 

(b)       Upon
receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation
of a Right Certificate, and, in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to them,
and, if requested by the Company, reimbursement to the Company of all reasonable expenses incidental thereto, and upon surrender
to the Rights Agent and cancellation of the Right Certificate if mutilated, the Company will execute and deliver to the Rights
Agent a new Right Certificate of like tenor for delivery to the registered owner in lieu of the Right Certificate so lost, stolen,
destroyed or mutilated. Without limiting the foregoing, the Company may require the owner of any lost, stolen or destroyed Right
Certificate, or his legal representative, to give the Company a bond sufficient to indemnify the Company and the Rights Agent
against any claim that may be made against it on account of the alleged loss, theft or destruction of any such Right Certificate
or the issuance of any such new Right Certificate.

 

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

 

(a)       Subject
to Section 7(e) or as otherwise provided in this Agreement, the registered holder of any Right Certificate may exercise the Rights
evidenced thereby in whole at any time or in part from time to time after the Distribution Date upon surrender of the Right Certificate,
with the form of election to purchase on the reverse side thereof duly executed (with such signature duly guaranteed), to the
Rights Agent at the office of the Rights Agent designated for such purposes together with payment of the Purchase Price (defined
below), or portion thereof, as applicable, with respect to each Unit or Units (and/or other securities or property in lieu thereof)
as to which the Rights are exercised, subject to adjustment as hereinafter provided, at or prior to the earlier of the Expiration
Date and the Final Expiration Date.

 

    	 	12	 

     

    

 

(b)       The
purchase price shall initially be $11.00 for each Unit issuable pursuant to the exercise of a Right. The purchase price and the
number of Units (and/or other securities or property, as the case may be) to be acquired upon exercise of a Right shall be subject
to adjustment from time to time as provided in Section 11. (The purchase price, after giving effect to any adjustments, shall
be referred to as the “Purchase Price.”) The Purchase Price shall be payable in lawful money of the United
States of America, in accordance with Section 7(c).

 

(c)       Except
as provided in Sections 7(d) and 7(e), upon receipt of a Right Certificate with the form of election to purchase duly executed,
accompanied by payment of the Purchase Price, or the applicable portion thereof, for the Units (and/or other securities or property,
as the case may be) to be purchased and an amount equal to any applicable tax or governmental charge, by cash, certified check
or official bank check payable to the order of the Company or the Rights Agent, the Rights Agent shall thereupon promptly (i)
(A) requisition from the Company or any transfer agent for the Units, certificates for the number of Units so elected to be purchased,
and the Company will comply and hereby authorizes and directs the transfer agent or shall cause the transfer agent (if the Rights
Agent is not also the transfer agent) to comply with all such requests or (B) if the Company, in its sole discretion, shall have
elected to deposit the shares of Preferred Stock underlying the Units issuable upon exercise of the Rights hereunder into a depositary,
requisition from the depositary agent depositary receipts representing the number of Units as are to be purchased (in which case
certificates for the shares of Preferred Stock underlying the Units represented by the receipts shall be deposited by the transfer
agent with the depositary agent) and the Company will direct the depositary agent to comply with such request, (ii) requisition
from the Company the amount of cash to be paid in lieu of issuance of fractional shares in accordance with Section 13(b) and (iii)
promptly after receipt of the Units certificates or depositary receipts, as the case may be, cause the same to be delivered to
or upon the order of the registered holder of the Right Certificate, registered in such name or names as may be designated by
such holder, and, when appropriate, after receipt, promptly deliver the cash to or upon the order of the registered holder of
the Right Certificate. In the event that the Company is obligated to issue other securities of the Company, pay cash and/or distribute
other property pursuant to Section 11(a), the Company shall make all arrangements necessary so that those other securities, cash
and/or other property are available for distribution by the Rights Agent, if and when necessary to comply with this Agreement
and the Rights Agent shall promptly take the appropriate actions corresponding to the foregoing clauses (i) through (iii), as
applicable. In addition, in the case of an exercise of the Rights by a holder pursuant to Section 11(a)(ii), the Rights Agent
shall return the Right Certificate to the registered holder thereof after imprinting, stamping or otherwise indicating thereon
that the Rights represented by the Right Certificate no longer include the rights provided by Section 11(a)(ii) and, if less than
all the Rights represented by such Right Certificate were so exercised, the Rights Agent shall indicate on the Right Certificate
the number of Rights represented thereby which continue to include the rights provided by Section 11(a)(ii). In case the holder
of any Right Certificate shall exercise (except pursuant to Section 11(a)(ii)) less than all the Rights evidenced thereby, a new
Right Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent and delivered
to the registered holder of the Right Certificate or the holder’s duly authorized assigns, subject to the provisions of
Section 13(b).

 

    	 	13	 

     

    

 

(d)       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 the registered
holder shall have (i) properly completed and signed the certificate contained in the form of election to purchase set forth on
the reverse side of the Right Certificate surrendered for exercise and (ii) provided such additional evidence of the identity
of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the Rights Agent shall
reasonably request.

 

(e)       Notwithstanding
anything in this Agreement to the contrary, from and after the first occurrence of a Section 11(a)(ii) Event, any Rights beneficially
owned by (i) an Acquiring Person (or any Affiliate or Associate thereof), (ii) a transferee of an Acquiring Person (or of any
Affiliate or Associate thereof) who becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an
Acquiring Person (or of any Affiliate or Associate thereof) who becomes a transferee prior to or concurrently with the Acquiring
Person becoming such and receives those Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring
Person to holders of equity interests in the Acquiring Person or to any Person with whom the Acquiring Person has a 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 those Rights shall have any rights
whatsoever with respect to those Rights, whether under any provision of this Agreement or otherwise. The Company shall notify
the Rights Agent when this Section 7(e) applies and shall use its best 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 Right
Certificates or other Person as a result of the Company’s failure to make any determinations with respect to an Acquiring
Person or its Affiliates, Associates or transferees hereunder.

 

Section
8.Cancellation and Destruction of Right Certificates.

 

All
Right Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered
to the Company or to any of its agents, 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 Right Certificates shall be issued in lieu thereof except as expressly permitted
by any of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and
the Rights Agent shall so cancel and retire, any Right Certificate purchased or acquired by the Company otherwise than upon the
exercise thereof. The Rights Agent shall deliver all cancelled Right Certificates to the Company, or shall, at the written request
of the Company, destroy the cancelled Right Certificates, and in such case shall deliver a certificate of destruction thereof
to the Company.

 

    	 	14	 

     

    

 

Section
9.Reservation and Availability of Shares of Preferred Stock.

 

(a)       The
Company covenants and agrees that, from and after the Distribution Date, it will cause to be reserved and kept available, out
of and to the extent of its authorized and unissued shares of Preferred Stock not reserved for another purpose or shares of Preferred
Stock not reserved for another purpose held in its treasury, the number of Units that, as provided in this Agreement, will be
sufficient to permit the exercise in full of all outstanding Rights; provided, however, that the Company shall not be required
to reserve and keep available Units sufficient to permit the exercise in full of all outstanding Rights pursuant to the adjustments
set forth in Sections 11(a)(ii) or 11(a)(iii) unless, and only to the extent that, the Rights become exercisable pursuant to such
adjustments.

 

(b)       The
Company shall (i) use its best efforts to cause, from and after the Distribution Date, the Rights and all Units (and/or following
the occurrence of a Triggering Event, shares of Common Stock of the Company or other securities, as the case may be) issued or
reserved for issuance upon exercise thereof to be listed or admitted to trading on the NYSE, NASDAQ or another national securities
exchange, and (ii) if then necessary to permit the offer and issuance of such Units, shares of Common Stock of the Company and/or
other securities, as the case may be, register and qualify such Units (or shares of Common Stock of the Company or other securities,
as the case may be) under the Securities Act and any applicable state securities or “blue sky” laws (to the
extent exemptions therefrom are not available), cause the related registration statement and qualifications to become effective
as soon as possible after filing and keep such registration statement and qualifications effective (with a prospectus at all times
meeting the requirements of the Securities Act) until the earlier of the expiration of the 60-day period referred to in Section
11(a)(ii), the Expiration Date or the Final Expiration Date. The Company may temporarily suspend, for a period of time not to
exceed 90 days, the exercisability of the Rights in order to prepare and file a registration statement under the Securities Act
and permit it to become effective. Upon 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. The Company shall promptly notify the Rights Agent in writing whenever it makes a public announcement pursuant to this
Section 9(b) and give the Rights Agent a copy of such announcement. Until such written notice is received by the Rights Agent,
the Rights Agent may presume conclusively that no such suspension has occurred or such suspension is still in effect, as the case
may be. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction
if the requisite qualification in such jurisdiction shall not have been obtained or the exercise thereof shall not otherwise be
permitted under applicable law or a registration statement under the Securities Act (if required) shall not have been declared
effective.

 

(c)       The
Company covenants and agrees that it will take all such action as may be necessary to insure that all Units (or shares of Common
Stock or other securities) delivered upon exercise of Rights shall, at the time of delivery of the certificates for such Units
(or shares of Common Stock of the Company or other securities) subject to payment of the Purchase Price (or the applicable portion
thereof) in respect thereof, be duly and validly authorized and issued and fully paid and nonassessable Units (and/or shares of
Common Stock and other securities, as the case may be) in accordance with applicable law.

 

    	 	15	 

     

    

 

(d)       The
Company further covenants and agrees that it will pay when due and payable any and all federal and state transfer taxes and governmental
charges which may be payable in respect of the issuance or delivery of the Right Certificates or of any Units (or shares of Company
Stock of the Company or other securities or property, as the case may be) upon the exercise of Rights. The Company shall not,
however, be required to pay any tax or charge which may be payable in respect of any transfer or delivery of Right Certificates
to a Person other than, or the issuance or delivery of certificates for Units (or shares of Common Stock of the Company or other
securities or property, as the case may be) upon exercise of Rights in a name other than that of, the registered holder of the
Right Certificate, and the Company and the Rights Agent shall not be required to issue or deliver a Right Certificate or certificate
for Units (and/or shares of Common Stock of the Company or other securities or property, as the case may be) to a Person other
than the registered holder until any such tax or charge shall have been paid (any such tax or charge being payable by the holder
of such Right Certificate at the time of surrender) or until it has been established to the Company’s and the Rights Agent’s
satisfaction that no such tax or charge is due.

 

Section
10.Securities Issuable Upon Exercise. Each Person in whose name any certificate for Units (or shares of Common Stock
of the Company or other securities, as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed
to have become the holder of record of the Units (or shares of Common Stock or other securities, as the case may be) represented
thereby on, and the certificate shall be dated, the date upon which the Right Certificate evidencing these Rights was duly surrendered
and payment of the Purchase Price, or the applicable portion thereof (and any applicable taxes and governmental charges), was
made; provided, however, that if the date of such presentation and payment is a date upon which the transfer books
for the Units (or shares of Common Stock of the Company or other securities, as the case may be) are closed, such Person shall
be deemed to have become the record holder of such Units (or shares of Common Stock of the Company or other securities) on, and
such certificate shall be dated, the next succeeding Business Day on which the transfer books for the Units (or shares of Common
Stock of the Company or other securities) are open. Prior to the exercise of the Rights evidenced thereby, the holder of a Right
Certificate, as such, shall not be entitled to any rights of a stockholder of the Company with respect to shares for which the
Right shall be exercisable, including without limitation, the right to vote, to receive dividends or other distributions or to
exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided
herein.

 

Section
11.Adjustments to Number and Kind of Securities or Other Property, Number of Rights or Purchase Price.

 

The
number and kind of securities or other property subject to purchase upon the exercise of each Right, the number of Rights outstanding
and the Purchase Price are subject to adjustment from time to time as provided in this Section 11.

 

    	 	16	 

     

    

 

(a)(i)In
the event that the Company shall at any time after the date of this Agreement (A) declare or pay any dividend on the shares of
Preferred Stock payable in shares of Preferred Stock, (B) subdivide or split the outstanding shares of Preferred Stock into a
greater number of shares, (C) combine or consolidate the outstanding shares of Preferred Stock into a smaller number of shares
or effect a reverse split of the outstanding shares of Preferred Stock or (D) issue any shares of its capital stock in a reclassification
of the shares of Preferred Stock (including any such reclassification in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation), then except as otherwise provided in this Section 11(a) and Section 7(e),
the Purchase Price in effect at the time of the record date for the dividend or of the effective date of the subdivision, split,
combination, consolidation or reclassification, and the number of Units and the number and kind of other securities, 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 Purchase Price then in effect, the aggregate number of Units and/or the number and
kind of other securities as the case may be, which, if the Right had been exercised immediately prior to such date, whether or
not such Right was then exercisable, and at a time when the transfer books for the Preferred Stock (or other capital stock, as
the case may be) of the Company were open, such holder would have owned upon such exercise and been entitled to receive by virtue
of the dividend, subdivision, split, combination consolidation or reclassification. If an event occurs which would require an
adjustment under both Sections 11(a)(i) and 11(a)(ii), the adjustment provided for in this Section 11(a)(i) shall be in addition
to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii).

 

(ii)       In
the event any Person at any time becomes an Acquiring Person (this event being referred to as a “Section 11(a)(ii) Event”),
then, subject to Sections 22(a) and 23, and except as otherwise provided in Section 7(e), each holder of a Right shall, for a
period of sixty days (or such longer period as may be established by the Board) after the later of the occurrence of any such
event and the effective date of an appropriate registration statement under the Securities Act pursuant to Section 9, have a right
to receive for each Right, upon exercise thereof in accordance with the terms of this Agreement and payment of the Purchase Price
(or the applicable portion thereof) such number of shares of Common Stock of the Company as shall equal the result obtained by
(x) multiplying the then current Purchase Price by the then number of Units for which a Right was exercisable immediately prior
to the first occurrence of a Section 11(a)(ii) Event (whether or not such right was then exercisable), and (y) dividing that product
by 50% of the Current Market Price per share of Common Stock of the Company on the date of such first occurrence (such number
of shares of Common Stock is called the “Adjustment Shares”); provided, however, that the Purchase
Price and the number of Adjustment Shares shall be further adjusted as appropriate to reflect any stock split, reverse stock split,
stock dividend, reclassification or similar transaction effected by the Company, or as provided in this Agreement to reflect any
other events, occurring after the date of such first occurrence; and provided, further, that in connection with
any exercise effected pursuant to this Section 11(a)(ii), the Board may (but shall not be required to) determine that a holder
of Rights shall not be entitled to receive shares of Common Stock of the Company that would result in such holder, together with
such holder’s Affiliates, becoming the Beneficial Owner of 4.99% or more of the total number of shares of Common Stock of
the Company then outstanding. If a holder would, but for the previous clause, be entitled to receive a number of shares of Common
Stock of the Company (such shares, the “Excess Flip-In Shares”), in lieu of receiving such Excess Flip-In Shares,
such holder will be entitled to receive an amount in (1) cash, (2) debt securities of the Company, (3) other assets, or (4) any
combination of the foregoing, having an aggregate value equal to the Current Market Price per share of Common Stock of the Company
on the date of the occurrence of a Section 11(a)(ii) Event multiplied by the number of Excess Flip-In Shares that would otherwise
have been issuable to such holder.

 

    	 	17	 

     

    

 

(iii)       In
the event that the number of shares of Common Stock of the Company which are authorized by the Company’s Restated Certificate
of Incorporation but not outstanding and which are not reserved for issuance for purposes other than upon exercise of the Rights
is not sufficient to permit the exercise in full of the Rights for shares of Common Stock of the Company in accordance with Section
11(a)(ii) and the Rights shall become so exercisable, to the extent permitted by applicable laws, each Right shall thereafter
represent the right to receive, upon exercise thereof at the Purchase Price, (x) a number of shares of Common Stock of the Company
(up to the maximum number of shares of Common Stock of the Company which may be permissibly issued), and (y) a number Units so
that, when added together, the numbers in clauses (x) and (y) equal the number of Adjustment Shares. In the event the number of
shares of Common Stock and Preferred Stock which are authorized by the Company’s Restated Certificate of Incorporation but
not outstanding or reserved for issuance for purposes other than upon exercise of the Rights is insufficient to permit the exercise
in full of the Rights in accordance with the prior sentence and the Rights shall become so exercisable, to the extent permitted
by applicable law, the Company shall: (A) determine the value of the Adjustment Shares issuable upon the exercise of a Right (the
“Current Value”) and that value shall be conclusive for all purposes; and (B) with respect to each Right, upon
exercise of such Right, issue shares of Common Stock of the Company and Units to the extent available for the exercise in full
of such Right and, to the extent shares of Common Stock or Units are not so available, make adequate provision to substitute for
the Adjustment Shares not received upon exercise of such Right: (1) other equity securities of the Company (including, without
limitation, shares, or units of shares, of preferred stock which, by virtue of having dividend, voting and liquidation rights
substantially comparable to the shares of Common Stock of the Company, are deemed in good faith by the Board to have substantially
the same value as one share of Common Stock of the Company (such shares are herein called “Share Equivalents”)
and whose determination shall be conclusive for all purposes); (2) debt securities of the Company; (3) other assets; (4) cash;
or (5) any combination of the foregoing as determined by the Board, having a value which, when added to the value of the number
of the shares of Common Stock of the Company and Units actually issued upon exercise of such Right, shall have an aggregate value
equal to the Current Value, where such aggregate value has been determined by the Board based upon the advice of a nationally
recognized independent investment banking firm selected by the Board; provided, however, if the Company shall not have
made adequate provision to deliver shares of Common Stock, Units and Share Equivalents pursuant to Section 11(a)(ii), the prior
sentence of this paragraph and clause (B) above within 50 days following the Stock Acquisition Date, then, to the extent permitted
by applicable law, the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring
payment of the Purchase Price, shares of Common Stock (to the extent available), Units or Share Equivalents and then, if necessary,
cash, debt securities, or other assets (in that order) which shares, units, cash, debt securities and/or other assets have an
aggregate value equal to the excess of the Current Value over the Purchase Price, and provided, further, that the Board may (but
shall not be required to) determine that a holder of Rights shall not be entitled to receive equity securities under this Section
11(a)(iii) to the extent the Company determines the receipt thereof could limit the Company’s ability to utilize the Tax
Benefits. If the Board shall determine in good faith that it is likely that sufficient additional shares of Common Stock, Units
or Share Equivalents could be authorized for issuance upon exercise in full of the Rights, the 50 day period set forth above may
be extended to the extent necessary, but not more than 120 days after the Stock Acquisition Date, in order that the Company may
seek stockholder approval for the authorization of such additional shares or Shares Equivalents (such 50 day period, as it may
be extended, is called the “Substitution Period”). To the extent that the Company determines that some action
need be taken pursuant to the foregoing provisions of this Section 11(a)(iii), the Company (x) shall provide, subject to Section
7(e), that this action shall apply uniformly to all outstanding and exercisable Rights, and (y) may suspend the exercisability
of the Rights until the expiration of the Substitution Period in order to seek any authorization of additional shares and/or to
decide the appropriate form of distribution to be made pursuant to the foregoing provisions of this Section 11(a)(iii) and, if
necessary, 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 (with a prompt
written notice thereof to the Rights Agent) at such time as the suspension is no longer in effect. For purposes of this Section
11(a)(iii), the value of each Unit, each share of Common Stock of the Company and the per share or unit value of any Share Equivalent
shall be deemed to equal the Current Market Price of a share of Common Stock of the Company thereof as of the Stock Acquisition
Date.

 

    	 	18	 

     

    

 

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

 

    	 	19	 

     

    

 

(c)       In
case the Company shall fix a record date for a distribution to all holders of shares of Preferred Stock (including any such distribution
made in connection with a consolidation, merger or share exchange in which the Company is the continuing corporation) of evidences
of indebtedness, cash (other than a regular periodic cash dividend), assets (other than a dividend payable in shares of Preferred
Stock, but including any dividend payable in stock other than Preferred Stock) or subscription rights or warrants (excluding those
referred to in Section 11(b)), the Purchase Price to be in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to the record date by a fraction, the numerator of which shall be the Current Market
Price per share of Preferred Stock on the 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) 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; provided, however, that in
no event shall the consideration to be paid upon exercise of one Right be less than the aggregate par value of the shares of capital
stock of the Company issuable upon the exercise of one Right. These adjustments shall be made successively whenever such a record
date is fixed; and in the event that the distribution is not so made, the Purchase Price shall be adjusted to be the Purchase
Price which 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), and subject
to Section 11d(ii), the “Current Market Price” per share of stock or unit of other securities on any date
shall be deemed to be the average of the daily closing prices per share of such stock or unit of other securities for the 30
consecutive Trading Days (as such term is hereinafter defined) immediately prior to such date; provided, however,
that in the event that the Current Market Price per share of any stock or unit of other securities is determined during a
period following the announcement by the issuer of that stock or other security of (i) any dividend or distribution on such
stock or other securities (other than a regular quarterly cash dividend and other than the Rights), or (ii) any subdivision,
split, combination or reclassification of that stock or other securities, and prior to the expiration of the requisite 30
Trading Day period, the ex-dividend date for the dividend or distribution, or the record date for the subdivision,
combination or reclassification occurs, then, and in each such case, the Current Market Price shall be properly adjusted to
take into account ex-dividend trading. The closing price for each day shall be the last sale price, regular way, or, in case
no such sale takes place on that 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 shares of stock or units of securities
listed or admitted to trading on the NYSE or NASDAQ or, if the shares of stock or units of any other securities are not
listed or admitted to trading on the NYSE or NASDAQ, as reported in the principal consolidated transaction reporting system
with respect to shares of stock or units of other securities listed on the principal national securities exchange on which
the shares of stock or units of other securities are listed or admitted to trading or, if the shares of stock or units of
other security are not listed or admitted to trading on any national securities exchange, the last quoted sale 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
National Association of Securities Dealers, Inc., Automated Quotations System or any other system then in use, or, if on any
such date the shares of such stock or units of such 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 stock or other
securities selected by the Board; provided, that if such security is not listed or quoted on the NYSE or NASDAQ and
the principal market for such securities is a non-U.S. securities exchange, then the closing price for each day shall be
determined by using the customary convention for determining the closing price of a security on such exchange as determined
by the Board (in which event the exchange rate of the relevant currency into U.S. dollars for each Trading Day (as defined
below) shall be determined by the Board). The term “Trading Day” shall mean a day on which the principal
national securities exchange on which the shares of such stock or units of other securities are listed or admitted to trading
is open for the transaction of business or, if the shares of such stock or other units of such security are not listed or
admitted to trading on any national securities exchange, a Business Day; provided, that if such security is not listed or
quoted on the NYSE or NASDAQ and the principal market for such security is a non-U.S. securities exchange, then
“Trading Day” shall mean a day on which such non-U.S. securities exchange is open for the transaction of
business. Subject to Section 11(d)(ii) with respect to Units, if such stock or unit of other securities is not publicly held
or not so listed, traded or quoted, “Current Market Price” per share or other unit of such securities
shall mean the fair value per share of stock or other unit of such securities as determined in good faith by the Board whose
determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all
purposes.

 

    	 	20	 

     

    

 

(ii)       For
the purpose of any computation hereunder, the “Current Market Price” per Unit shall be determined in the same
manner as set forth above in paragraph (i) of this Section 11(d) (other than the last sentence thereof). If the Current Market
Price per Unit cannot be determined in the manner provided above because the Units are not publicly held, listed or traded or
quoted in a manner described in paragraph (i) of this Section 11(d), the “Current Market Price” per Unit shall
be conclusively deemed to be an amount equal to the Current Market Price per share of the Common Stock of the Company. If neither
the shares of Common Stock of the Company nor the Units are listed or traded or quoted as described in Section 11(d)(i), “Current
Market Price” per share thereof shall mean the fair value per share of Common Stock of the Company 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.

 

(e)       Anything
herein to the contrary notwithstanding, no adjustment in the Purchase Price shall be required unless such adjustment would require
an increase or decrease of at least one percent in the Purchase Price; provided, however, that any adjustments which
by reason of this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest thousandth of a Unit or
share of Common Stock or any other 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 years from the date of the transaction
which mandates such adjustment, or (ii) the Final Expiration Date.

 

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

 

    	 	21	 

     

    

 

(g)       All
Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right
to purchase, at the adjusted Purchase Price, the number of Units (and/or other securities) purchasable from time to time hereunder
upon exercise of the Rights, all subject to further adjustment as provided herein.

 

(h)       Unless
the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price as a result
of the calculations made in Sections 11(b) and (c), each Right outstanding immediately prior to the making of such adjustment
shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of Units (calculated to the nearest
one-thousandth) equal to the quotient obtained by (i) multiplying (x) the number of Units covered by a Right immediately prior
to this adjustment by (y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price, and (ii) dividing
the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price.

 

(i)       The
Company may elect on or after the date of any adjustment of the Purchase Price or any adjustment to the number of Units for which
a Right may be exercised, to adjust the number of Rights, in lieu of any adjustment in the number of Units 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 Units 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 thousandth) obtained by dividing
the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately
after adjustment of the Purchase Price. The Company shall make a public announcement (with prompt written notice thereof to the
Rights Agent) of its election to adjust the number of Rights, indicating the record date for the adjustment, and, if known at
the time, the amount of the adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or
any date thereafter, but, if the Right Certificates have been issued, shall be at least 10 days later than the date of the public
announcement. If Right Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i),
the Company shall, as promptly as practicable, cause to be distributed to the registered holders of Right Certificates on the
record date Right Certificates evidencing, subject to Section 13, the additional Rights to which the holders shall be entitled
as a result of such adjustment, or, at the option of the Company, shall cause to be distributed to such registered holders in
substitution and replacement for the Right Certificates held by such holders prior to the date of adjustment, and upon surrender
thereof, if required by the Company, new Right Certificates evidencing all the Rights to which such holders shall be entitled
after such adjustment. Right Certificates 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 Purchase Price) and shall be registered in the names of the
registered holders of Right Certificates on the record date specified in the public announcement.

 

(j)       Irrespective
of any adjustment or change in the Purchase Price or the number of Units issuable upon the exercise of the Rights, the Right Certificates
theretofore and thereafter issued may continue to express the Purchase Price per Unit and the number of Units which were expressed
in the initial Right Certificates issued hereunder.

 

    	 	22	 

     

    

 

(k)       Before
taking any action that would cause an adjustment reducing the Purchase Price below the then par value, if any, attributable to
the Units, shares of Common Stock or other securities issuable upon exercise of the Rights, the Company shall its use best efforts
to take any corporate action, which may, in the opinion of its counsel, be necessary in order that the Company may validly and
legally issue fully paid and nonassessable Units, shares of Common Stock or other securities at such adjusted Purchase Price.

 

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

 

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

 

(n)       The
Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 22, Section 23 or
Section 26, 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 eliminate the benefits intended to be afforded by the Rights.

 

(o)       Anything
in this Agreement to the contrary notwithstanding, in the event that at any time after the date of this Agreement and prior to
the Distribution Date, the Company shall (i) declare or pay any dividend on the shares of Common Stock of the Company payable
in shares of Common Stock of the Company or (ii) effect a subdivision or split the outstanding shares of Common Stock of the Company
into a greater number of shares of Common Stock of the Company or (iii) combine or consolidate the outstanding shares of Common
Stock of the Company into a small number of shares or effect a reverse split of the outstanding shares of Common Stock of the
Company, then in any such case, each share of Common Stock outstanding following payment of such dividend, such subdivision, split,
combination, consolidation or issuance shall continue to have one Right (as adjusted as otherwise provided herein) associated
therewith and the Purchase Price following any such event shall be proportionately adjusted to equal the result obtained by multiplying
the Purchase Price immediately prior to such event by a fraction, the numerator of which shall be the total number of shares of
Common Stock of the Company outstanding immediately prior to the occurrence of the event and the denominator of which shall be
the total number of shares of Common Stock of the Company outstanding immediately following the occurrence of such event. The
adjustment provided for in the preceding sentence shall be made successively whenever such a dividend is declared or paid or such
a subdivision, combination or consolidation is effected.

 

    	 	23	 

     

    

 

Section
12.Certification of Adjustments. Whenever an adjustment is made as provided in Section 11, the Company shall (a) promptly
prepare a certificate setting forth the adjustment and a reasonably detailed statement of facts and computations accounting for
such adjustment, (b) promptly file with the Rights Agent and with each transfer agent for the shares of Common Stock and Preferred
Stock a copy of the certificate, and (c) if a Distribution Date has occurred, mail or cause the Rights Agent to mail a brief summary
thereof to each registered holder of a Right Certificate (or, if prior to the Distribution Date, to each holder of record of shares
of Common Stock) in accordance with Section 25. Notwithstanding the foregoing sentence, the failure of the Company to prepare
such certificate or statement or make such filings or mailings shall not affect the validity of, or the force or effect of, the
requirement for such adjustment. The Rights Agent shall be fully protected in relying on such certificate, shall have no duty
or liability with respect to any adjustment therein contained, and shall not be deemed to have knowledge of any adjustment or
events related thereto unless and until it shall have received such certificate. Subject to the preceding sentence, any adjustment
to be made pursuant to Section 11 shall be effective as of the date of the event giving rise to the adjustment.

 

Section
13.Fractional Rights and Fractional Shares.

 

(a)       The
Company shall not be required to issue fractions of Rights or to distribute Right Certificates which evidence fractional Rights.
Units may, at the election of the Company, be evidenced by depositary receipts, pursuant to an appropriate agreement between the
Company and a depositary selected by it, provided that the agreement shall provide that the holders of the depositary receipts
shall have all the rights, privileges and preferences to which they are entitled as beneficial owners of the Units represented
by the depositary receipts. In lieu of such fractional Rights, the Company shall pay to the holders of record of the Right Certificates
with regard to which the fractional Rights would otherwise be issuable an amount in cash equal to the same fraction of the then
Current Market Value of a whole Right.

 

(b)       The
Company shall not be required to issue fractions of Units or other securities upon exercise of the Rights or to distribute certificates
which evidence fractional Units or other securities. In lieu of issuing fractions of Units or other securities, the Company shall
pay to the registered holders of Right Certificates at the time the Right Certificates are exercised as herein provided an amount
in cash equal to the same fraction of the then Current Market Value of a Unit or other securities, as the case may be.

 

    	 	24	 

     

    

 

(c)       The
holder of a Right by the acceptance of a Right expressly waives his right to receive any fractional Right or fractional Unit or
other fractional securities (other than the fractional shares of Preferred Stock represented by Units) upon exercise of a Right.

 

(d)       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
payments and the prices and formulas utilized in calculating such payments; and (ii) provide sufficient funds to the Rights Agent
in the form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such a certificate
and 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
14.Rights of Action. All rights of action in respect of this Agreement, except those rights of action vested in the
Rights Agent pursuant to Sections 17 and 19, are vested in the respective registered holders of the Right Certificates (and, prior
to the Distribution Date, the holders of record of the Common Stock); and any registered holder of any Right Certificate (or,
prior to the Distribution Date, the shares of Common Stock), without the consent of the Rights Agent or of the holder of any other
Right Certificate (or, prior to the Distribution Date, any shares of Common Stock), may, in its own behalf and for its 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, its right to exercise the Rights evidenced by the Right Certificate in the manner provided in the
Right Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the holders of Rights, it
is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement
and, accordingly, that they will be entitled to specific performance of the obligations under, and injunctive relief against actual
or threatened violations of, the obligations of any Person subject to this Agreement.

 

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

 

(a)       prior
to the Distribution Date, the Rights will not be evidenced by a Right Certificate and will be transferable only in connection
with the transfer of Common Stock of the Company;

 

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

 

    	 	25	 

     

    

 

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

 

(d)       notwithstanding
anything in this Agreement to the contrary, neither the Company, its directors, officers, employees and agents 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 or administrative agency
or commission, or by reason of any statute, rule, regulation or executive order promulgated or enacted by any governmental authority,
regulatory or administrative agency or commission, prohibiting or otherwise restraining performance of such obligation.

 

Section
16.Right Certificate Holder Not Deemed a Stockholder. No holder of a Right, as such, shall be entitled to vote, receive
dividends in respect of or be deemed for any purpose to be the holder of shares of Common Stock, Preferred Stock, Units or any
other securities of the Company which may at any time be issuable upon the exercise of the Rights, nor shall anything contained
herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights
of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, 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 24 hereof), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof.

 

Section
17.Concerning the Rights Agent.

 

(a)       The
Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to
time, on demand of the Rights Agent, reimbursement of its reasonable expenses and counsel fees and disbursements and other disbursements
incurred in the preparation, delivery, amendment, administration and execution of this Agreement and the exercise and performance
of its duties hereunder.

 

(b)       The
Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, damage, liability, demand, judgment,
fine, penalty, claim, settlement, cost or expense incurred without gross negligence, bad faith or willful misconduct on the part
of the Rights Agent as each must be determined by final non-appealable judgment of a court of competent jurisdiction, for any
action taken, suffered or omitted by the Rights Agent in connection with the acceptance of, administration of and performance
of its duties under this Agreement, including reasonable attorneys’ fees and expenses and the costs and expenses of defending
against any claim of liability in the premises.

 

    	 	26	 

     

    

 

(c)       The
Rights Agent shall be authorized and protected and shall incur no liability for or in respect of any action taken, suffered or
omitted by in connection with its administration and performance of this Agreement in reliance upon any Right Certificate, certificate
for shares of Common or Preferred Stock, Units or other securities of the Company, instrument of assignment or transfer, power
of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement or other paper or document reasonably
believed by it to be genuine and to be signed, executed and, where expressly required hereunder, guaranteed, verified or acknowledged,
by the proper person or persons, or otherwise upon the advice of counsel as set forth herein. The Rights Agent shall not be deemed
to have knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be fully
protected and shall incur no liability for failing to take any action in connection therewith, unless and until it has received
such notice.

 

The
provisions of this Section 17 and Section 19 shall survive the termination or expiration of this Agreement, the exercise or expiration
of the Rights and the resignation, replacement or removal of the Rights Agent. The costs and expenses incurred in enforcing this
right of indemnification shall be paid by the Company. Anything to the contrary notwithstanding, in no event shall the Rights
Agent be liable for special, punitive, indirect, consequential or incidental loss or damage of any kind whatsoever (including
but not limited to lost profits, even if the Rights Agent has been advised of the likelihood of such loss or damage. Any liability
of the Rights Agent under this Agreement (other than by reason of gross negligence, bad faith or willful misconduct) will be limited
to the amount of fees paid by the Company to the Rights Agent.

 

Section
18.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 stockholder services business of the Rights Agent or any successor Rights Agent, shall be the successor to the
Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties
hereto, provided that such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section
20. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Right Certificates
shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of the predecessor
Rights Agent and deliver such Right Certificates so countersigned; and in case at that time any of the Right Certificates shall
not have been countersigned, any successor Rights Agent may countersign such Right Certificates either in the name of the predecessor
Rights Agent or in the name of the successor Rights Agent; and in all such cases such Right Certificates shall have the full force
provided in the Right Certificates and in this Agreement.

 

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

 

    	 	27	 

     

    

 

Section
19.Duties of Rights Agent. The Rights Agent undertakes to perform only the duties and obligations expressly imposed
by this Agreement (and no implied duties and obligations) upon the following terms and conditions, by all of which the Company
and the holders of Right Certificates, by their acceptance thereof, shall be bound:

 

(a)       The
Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the advice or opinion of such counsel
shall be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for
or in respect of, any action taken, suffered or omitted by it, subject to Section 17(b) and in accordance with such advice or
opinion.

 

(b)       Whenever
in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter
(including, without limitation, the identity of any Acquiring Person and the determination of Current Market Price) be proved
or established by the Company prior to taking, 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 Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the General Counsel,
any Vice President of the Company, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company
and delivered to the Rights Agent; and such certificate shall be complete and full authorization and protection to the Rights
Agent, and, subject to Section 17(b) the Rights Agent shall incur no liability for or in respect of any action taken, suffered
or omitted by it under the provisions of this Agreement in reliance upon such certificate.

 

(c)       The
Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct, as each is determined
by a final non-appealable judgment by a court of competent jurisdiction.

 

(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 Right Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and
recitals are and shall be deemed to have been made by the Company only.

 

(e)       The
Rights Agent shall not have any liability for nor 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 Right Certificate (except its countersignature thereon); nor shall it be liable nor responsible for any breach by the Company
of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be liable or responsible for
any adjustment required under the provisions of Section 11 or responsible for the manner, method or amount of any such adjustment
or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights
evidenced by Right Certificates after receipt of a certificate describing 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 Preferred Stock or Common
Stock to be issued pursuant to this Agreement or any Right Certificate or as to whether any shares of Preferred Stock (or other
securities, as the case may be) will, when issued, be validly authorized and issued, fully paid and nonassessable.

 

    	 	28	 

     

    

 

(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 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 Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the General Counsel, any Vice President,
the Treasurer, Assistant Treasurer, the Secretary or any Assistant Secretary of the Company, and to apply to such officers for
advice or instructions in connection with its duties, and such advice or instructions shall be full authorization and protection
to the Rights Agent and, subject to 17(b), the Rights Agent shall incur no liability for or in respect of any action taken, suffered
or omitted to be taken by it in accordance with the advice or instructions of any such officer.

 

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

 

(i)       If,
with respect to any Right Certificate surrendered to the Rights Agent for exercise or transfer, the certificate contained in the
form of assignment or the form of election to purchase set forth on the reverse thereof, as the case may be, has either not been
completed or indicates an affirmative response to clause 1 and/or 2 of such certificate, the Rights Agent shall not take any further
action with respect to such requested exercise of transfer without first consulting with the Company and the Rights Agent shall
not be liable for its failure to act or any delay in acting in compliance with this clause (i).

 

(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 (other than internal costs incurred by the Rights Agent in providing services
to the Company in the ordinary course of its business as Rights Agent and for which the Rights Agent shall be compensated by the
Company pursuant to Section 17(a)) or in the exercise of its rights or powers if it believes that repayment of such funds or adequate
indemnification against such risk or liability is not reasonably assured to it.

 

    	 	29	 

     

    

 

(k)       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 liable, answerable or accountable for any act, default,
neglect or misconduct of any such attorneys or agents or for any loss to the Company, any holder of Rights or any other Person
resulting from any such act, default, neglect or misconduct, absent gross negligence, bad faith or willful misconduct in the selection
and continued employment thereof, as each is determined by a final, non-appealable court judgment of a court of competent jurisdiction.

 

(l)       The
Rights Agent shall not have any duty or responsibility in the case of the receipt of any written demand from any holder of Rights
with respect to any action or default by the Company, including, without limiting the generality of the foregoing, any duty or
responsibility to initiate or attempt to initiate any proceedings at law or otherwise or to make any demand upon the Company.

 

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

 

(n)       The
Rights Agent shall not assume any obligations or relationship of agency or trust with any of the owners or holders of the Rights.

 

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

 

Section
20.Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties
under this Agreement upon 30 days’ notice in writing mailed to the Company and, to the extent the Rights Agent is not the
transfer agent of the shares of Common Stock, to each such transfer agent by registered or certified mail. The Company shall notify
the registered holders of any such change in Rights Agent. The Company may remove the Rights Agent or any successor Rights Agent
(with or without cause) upon 30 days’ notice in writing, mailed to the Rights Agent or any successor Rights Agent, as the
case may be, and to each transfer agent of the shares of Common Stock by registered or certified mail, and to the registered holders
of the Right Certificates by mail. In the event a transfer agency relationship in effect between the Company and the Rights Agent
terminates, the Rights Agent will be deemed to have resigned automatically and be discharged from its duties under this Agreement
as of the effective date of such termination, and the Company shall be responsible for sending any required notice to holders.
If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor
to the Rights Agent. If the Company shall fail to make such appointment within a period of 30 days after such removal or after
it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the registered
holder of a Right Certificate (who shall, with such notice, submit such holder’s Right Certificate for inspection by the
Company), then the registered holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment
of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a Person
organized and doing business under the laws of the United States or any state of the United States so long as such Person is in
good standing, is authorized to do business in such state, is authorized under such laws to exercise stockholder services powers,
is subject to supervision or examination by federal or state authority and 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 a Person described in clause (a) of this sentence.
After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if
it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any property at the time held by it hereunder, and shall execute and deliver, if applicable, any
further assurance, conveyance, act or deed necessary for that 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 mail a notice thereof in writing to the registered holders of the Right Certificates, if any. Failure to give any notice provided
for in this Section 20, however, or any defect therein, shall not affect the legality or validity of the resignation or removal
of the Rights Agent or the appointment of the successor Rights Agent, as the case may be.

 

    	 	30	 

     

    

 

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

 

Section
22.Redemption.

 

(a)       The
Board may, at its option, at any time prior to the earlier of (x) the Close of Business on the tenth (10th) calendar day after
the Stock Acquisition Date (or, if the tenth (10th) calendar day following the Stock Acquisition Date occurs before the Record
Date, the Close of Business on the Record Date) or (y) the Close of Business on the Final Expiration Date, direct the Company
to, and if directed, the Company shall, redeem all but not less than all of the then outstanding Rights at a redemption price
of $0.001 per Right (the total amount paid to any holder of Rights to be rounded up to the nearest $0.01), as such amount may
be appropriately adjusted to reflect any stock split, reverse stock split, stock dividend, reclassification or similar transaction
effected by the Company occurring after the date (such redemption price being hereinafter referred to as the “Redemption
Price”).

 

    	 	31	 

     

    

 

(b)       Immediately
upon the action of the Board directing the Company to make the redemption of the Rights, 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. Promptly
after the action of the Board directing the Company to make such redemption of the Rights, the Company shall give notice of such
redemption to the Rights Agent and each such holder of the then outstanding Rights by mailing such notice to the Rights Agent
and to each such holders at such holder’s last address as it appears upon the registry books of the Rights Agent, or, prior
to the Distribution Date, on the registry books of the transfer agent for the Common Stock. 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 will
state the method by which the payment of the Redemption Price will be made, unless such notice is mailed together with such payment.

 

In
the case of a redemption permitted under Section 22(a), the Company may, at its option, discharge all of its obligations with
respect to the Rights by (i) issuing a press release announcing the manner of redemption of the Rights (with prompt written notice
thereof to the Rights Agent) and (ii) mailing payment of the Redemption Price to each registered holder of the Rights at each
such holder’s last address as it appears on the registry books of the Rights Agent or, prior to the Distribution Date, on
the registry books of the transfer agent of the Common Stock, and upon such action, all outstanding Right Certificates shall be
null and void without any further action by the Company.

 

Section
23.Exchange.

 

(a)       The
Board may, at its option, at any time after the later of the Stock Acquisition Date or the Distribution Date, exchange all or
part of the then-outstanding and exercisable Rights (which shall not include Rights that have become null and void pursuant to
the provisions of Section 11(a)(ii)) for Common Stock of the Company at an exchange ratio of one share of Common Stock per Right,
appropriately adjusted to reflect any stock split, reverse stock split, stock dividend, reclassification or similar transaction
effected by the Company occurring after the Record Date (such exchange ratio being hereinafter referred to as the “Exchange
Ratio”); provided, however, that in connection with any exchange effected pursuant to this Section 23,
the Board may (but shall not be required to) determine that a holder of Rights shall not be entitled to receive shares of Common
Stock that would result in such holder, together with such holder’s Affiliates, becoming the Beneficial Owner of 4.99% or
more of the shares of Common Stock then outstanding. If a holder would, but for the proviso set forth in the previous sentence,
be entitled to receive a number of shares under this Section 23 that would otherwise result in such holder, together with such
holder’s Affiliates, becoming the Beneficial Owner of 4.99% or more of the shares of Common Stock then outstanding (such
shares, the “Excess Exchange Shares”), in lieu of receiving such Excess Exchange Shares, such holder will be
entitled to receive an amount in (1) cash, (2) debt securities of the Company, (3) other assets, or (4) any combination of the
foregoing, having an aggregate value equal to the Current Market Price per share of the Common Stock on the date of the Stock
Acquisition Date or Distribution Date, as applicable, multiplied by the number of Excess Exchange Shares that would otherwise
have been issuable to such holder. Any such exchange will be effective immediately upon the action of the Board ordering the same,
unless such action of the Board expressly provides that such exchange will be effective at a subsequent time or upon the occurrence
or nonoccurrence of one or more specified events (in which case such exchange will be effective in accordance with the provisions
of such action of the Board). Without limiting the foregoing, prior to effecting an exchange pursuant to this Section 23, the
Board may enter into a Trust Agreement in such form and with such terms as the Board shall then approve (the “Trust Agreement”).
If the Board so directs, the Company shall enter into the Trust Agreement and shall issue to the trust created by such agreement
(the “Trust”) all of the Common Stock issuable pursuant to the exchange (or any portion thereof that has not
theretofore been issued in connection with the exchange). From and after the time at which such shares are issued to the Trust,
all stockholders then entitled to receive shares pursuant to the exchange shall be entitled to receive such shares (and any dividends
or distributions made thereon after the date on which such shares are deposited in the Trust) only from the Trust and solely upon
compliance with the relevant terms and provisions of the Trust Agreement. Any shares of Common Stock issued at the direction of
the Board in connection herewith shall be validly issued, fully paid and nonassessable Common Stock, and the Company shall be
deemed to have received as consideration for such issuance a benefit having a value that is at least equal to the aggregate par
value of the shares so issued.

 

    	 	32	 

     

    

 

(b)       Immediately
upon the action of the Board authorizing the exchange of any Rights pursuant to Section 23(a) and without any further action and
without any notice, the right to exercise such Rights shall terminate and the only right thereafter of the holders of such Rights
shall be to receive that number of shares of Common Stock (or Units, as applicable) equal to the number of such Rights held by
such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange (with prompt
written notice to the Rights Agent); provided, however, that the failure to give, or any defect in, such notice
shall not affect the validity of such exchange. The Company shall promptly mail a notice of any such exchange to all of the holders
of 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 notice of exchange will state
the method by which the exchange of shares of Common Stock (or Units, as applicable) for Rights will be effected and, in the event
of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata based on
the number of Rights (other than Rights which have become null and void pursuant to the provisions of Section 7(e)) held by each
holder of Rights.

 

(c)       In
any exchange pursuant to this Section 23, the Company, at its option, may, and to the extent there are an insufficient number
of authorized shares of Common Stock not reserved for any other purpose to exchange all of the outstanding Rights shall, substitute
Units or Share Equivalents for some or all of the shares of Common Stock exchangeable for Rights, at the initial rate of one Unit
or Share Equivalent for each share of Common Stock.

 

(d)       The
Board shall not authorize any exchange transaction referred to in Section 23(a) unless at the time such exchange is authorized
there shall be sufficient shares of Common Stock (and/or Units or Unit Equivalents) issued but not outstanding, or authorized
but unissued, to permit the exchange of Rights as contemplated in accordance with this Section 23.

 

    	 	33	 

     

    

 

Section
24.Notice of Proposed Actions.

 

(a)       In
case the Company shall propose, at any time after the Distribution Date, (i) to pay any dividend to the holders of record of its
shares of Preferred Stock payable in stock of any class or to make any other distribution to the holders of record of its shares
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 record of its shares of Preferred Stock options, warrants, or other rights to subscribe for or to purchase
shares of Preferred Stock (including any security convertible into or exchangeable for shares of Preferred Stock) or shares of
stock of any class or any other securities, options, warrants, convertible or exchangeable securities or other rights, (iii) to
effect any reclassification of its shares of Preferred Stock or any recapitalization or reorganization of the Company, (iv) to
effect any consolidation, combination or merger with or into, or any share exchange with, or to effect any sale or other transfer
(or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or more transactions, of 50% or more
of the assets, earning power or cash flow of the Company and its Subsidiaries (taken as a whole) to, any other Person or Persons,
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 the extent feasible, each registered holder of a Right Certificate in accordance with Section 25, a written
notice of such proposed action, which shall specify the record date for the purposes of such dividend or distribution, or the
date on which such reclassification, recapitalization, reorganization, consolidation, combination, merger, share exchange, sale
or transfer of assets, liquidation, dissolution, or winding up is to take place and the record date for determining participation
therein by the holders of record of shares of Preferred Stock, if any such date is to be fixed, and such notice shall be so given
in the case of any action covered by clause (i) or (ii) above at least 10 days prior to the record date for determining holders
of record of the shares of Preferred Stock for purposes of such action, and in the case of any such other action, at least 10
days prior to the date of the taking of such proposed action or the date of participation therein by the holders of record of
the shares of Preferred Stock, whichever shall be the earlier. The failure to give notice required by this Section 24 or any defect
therein shall not affect the legality or validity of the action taken by the Company or the vote upon any such action.

 

(b)       In
case a Section 11(a)(ii) Event is proposed, then, in any such case, the Company shall, as soon as practicable thereafter, give
to the Rights Agent and to each registered holder of Rights, to the extent feasible, in accordance with Section 25, notice of
the occurrence of such event or proposal of such transaction which notice shall specify the proposed event and the consequences
of the event to holders of Rights under Section 11(a)(ii), upon consummating such transaction, shall similarly give notice thereof
to each holder of Rights.

 

    	 	34	 

     

    

 

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

 

SITO
Mobile, Ltd. 

100
Town Square Place, Suite 204 

Jersey
City, NJ 07310 

Fax:
(201) 275-0555 

 

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

 

Morgan,
Lewis & Bockius LLP 

1111
Pennsylvania Avenue, N.W. 

Washington,
DC 20004 

Attention:
Keith E. Gottfried, Esq. 

Fax:
(202) 739-3001

 

Subject
to the provisions of Section 20, any notice or demand authorized by this Agreement to be given or made by the Company or by the
registered holder of any Right Certificate or Right to or on the Rights Agent shall be sufficiently given or made if in writing
and when sent by first-class mail, postage prepaid, addressed or a nationally recognized courier service (until another address
is filed in writing with the Company) as follows:

 

Continental
Stock Transfer & Trust Company 

17
Battery Place, 8th Floor 

New
York, NY 10004 

Attention:
Compliance Department

 

Notices
or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the registered holder of any
Right Certificate or Right shall be sufficiently given or made if in writing and when sent by mail, postage prepaid, addressed
to such holder at the address of such holder as it appears upon the registry books of the Rights Agent or, prior to the Distribution
Date, on the registry books of the transfer agent.

 

Section
26.Supplements and Amendments. Subject to extension by the Board by amendments, prior to the Close of Business on the
tenth (10th) calendar day after the Stock Acquisition Date, the Company may in its sole and absolute discretion and the Rights
Agent shall, if the Company so directs, supplement or amend any provision of this Agreement (including without limitation amendments
that increase or decrease the Purchase Price or Redemption Price or accelerate or extend the Final Expiration Date or the period
in which Rights may be redeemed), without the approval of any holders of the Rights or shares of Common Stock. From and after
the Close of Business on the tenth (10th) calendar day after the Stock Acquisition Date, the Company may and the Rights Agent
shall, if the Company so directs, supplement or amend this Agreement without the approval of any holders of Right Certificates
in order (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein which may be defective or inconsistent
with any other provisions herein, (iii) to shorten or lengthen any time period hereunder, or (iv) to change or supplement the
provisions hereunder in any manner which the Company may deem necessary or desirable which shall not adversely affect the interests
of the holders of Right Certificates (other than any interest an Acquiring Person or an Affiliate or Associate of an Acquiring
Person has other than as a holder of Rights). Upon the delivery of a certificate from an appropriate officer of the Company which
states that the proposed supplement or amendment is in compliance with the terms of this Section 26, the Rights Agent shall execute
such supplement or amendment. Prior to the Stock Acquisition Date, the interests of the holders of Rights shall be deemed coincident
with the interests of the holders of shares of Common Stock. Notwithstanding anything contained herein to the contrary, the Rights
Agent may, but shall not be obligated to, enter into any supplement or amendment that affects the Rights Agent’s own rights,
duties, obligations or immunities under this Agreement. In addition, notwithstanding anything to the contrary in this Agreement,
no supplement or amendment to this Agreement shall be made that extends the Expiration Date.

 

    	 	35	 

     

    

 

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

 

Section
28.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 Right Certificates (and, prior to the Distribution Date, the shares of 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 Right Certificates (and, prior to the Distribution
Date, the shares of Common Stock).

 

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

 

Section
30.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 counterpart of a signature page to this Agreement by facsimile or electronic mail shall be as effective
as delivery of a manually executed counterpart of this Agreement.

 

Section
31.Descriptive Headings. 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.

 

Section
32.Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions
of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided,
however, that notwithstanding anything in this Agreement to the contrary, if any such excluded term, provision, covenant
or restriction shall materially and adversely affect the rights, immunities, duties or obligations of the Rights Agent, the Rights
Agent shall be entitled to resign immediately upon written notice to the Company pursuant to the requirements of Section 25 of
this Agreement; and provided, further, 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 would adversely affect the purpose or effect of this
Agreement, the right of redemption set forth in Section 22 hereof shall be reinstated and shall not expire until the Close of
Business on the tenth (10th) Business Day following the date of such determination by the Board.

 

    	 	36	 

     

    

 

Section
33.Determination and Actions by the Board, etc. Except with respect to the rights, immunities, duties or obligations
of the Rights Agent hereunder, the Board 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, without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii)
make all determinations or judgments deemed necessary or advisable for the administration of this Agreement (including without
limitation a determination to redeem or not redeem the Rights or to amend this Agreement) or otherwise contemplated by this Agreement.
All such actions, calculations, interpretations, judgments and determinations (including, for purposes of clause (y) below, all
omissions with respect to the foregoing) which are done or made by the Board in good faith, shall (x) be final, conclusive and
binding on the Company, the Rights Agent, the holders of the Rights and all other parties, and (y) not subject the Board to any
liability to the holders of the Right Certificates. The Rights Agent is entitled always to assume the Board acted in good faith
and shall be fully protected and incur no liability in reliance thereon.

 

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

 

Section
35.Further Assurance. The Company shall perform, acknowledge and deliver or cause to be performed, acknowledged and
delivered all such further and other acts, documents, instruments and assurances as may be reasonably required by the Rights Agent
for the carrying out or performing by the Rights Agent of the provisions of this Agreement.

 

[signature
page follows]

 

    	 	37	 

     

    

 

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

 

	 	SITO MOBILE, LTD.
	 	 	 
	 	By:	/s/ Richard O’Connell Jr.
	 	Name: 	Richard O’Connell Jr.  
	 	Title:	Interim CEO

 

	 	CONTINENTAL STOCK TRANSFER & TRUST

 COMPANY, AS RIGHTS AGENT
	 	 	 
	 	By:	/s/ Henry Farrell
	 	Name:	Henry Farrell
	 	Title:	Vice President

 

[Signature Page to
Section 382 Tax Benefits Preservation Plan]

 

    	 	38	 

     

    

 

EXHIBIT A

 

FORM
OF

CERTIFICATE
OF DESIGNATION

OF

SERIES
A JUNIOR PARTICIPATING PREFERRED STOCK

OF

SITO
MOBILE, LTD.

 

(Pursuant
to Section 151 of the Delaware General Corporation Law)

 

 

 

SITO
Mobile, Ltd. (the “Corporation”), a corporation organized and existing under the General Corporation Law of
the State of the Delaware, as amended (the “DGCL”), hereby certifies that, pursuant to the authority granted
by Article 4 of the Amended and Restated Certificate of Incorporation of the Corporation, as amended (the “Restated Certificate
of Incorporation”), and in accordance with Section 151 of the DGCL, the Board of Directors of the Corporation (hereinafter
being referred to as the “Board of Directors” or the “Board”), at a meeting duly called
and held on April 3, 2017, has adopted the following resolution with respect to the designations, number of shares, preferences,
voting powers and other rights and the restrictions and limitations thereof, of the Series A Junior Participating Stock:

 

RESOLVED,
that, pursuant to the authority granted to and vested in the Board of Directors in accordance with the provisions of the Restated
Certificate of Incorporation, the designations, number of shares, preferences, voting powers and other rights and the restrictions
and limitations thereof of the Series A Junior Participating Stock are as follows:

 

1.                 
Designation and Amount. The shares of such series shall be designated as “Series A Junior Participating Preferred
Stock” (the “Series A Preferred Stock”) and the number of shares constituting the Series A Preferred
Stock shall be 300,000. Such number of shares may be increased or decreased by resolution of the Board of Directors prior to issuance;
provided, that no decrease shall reduce the number of shares of the 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 the Series A Preferred
Stock; provided, further, that if more than a total of 300,000 shares of Series A Preferred Stock shall be issuable upon the exercise
of Rights (the “Rights”) issued pursuant to the Tax Benefits Preservation Plan, dated as of April 3, 2017,
by and between the Corporation and Continental Stock Transfer & Trust Company, as Rights Agent, the Board of Directors of
the Corporation, pursuant to Section 151(g) of the DGCL, shall direct by resolution or resolutions that a certificate be properly
executed, acknowledged, filed and recorded, in accordance with the provisions of Section 103 of the DGCL, providing for the total
number of shares of Series A Preferred Stock authorized to be issued to be increased (to the extent that the Certificate of Incorporation
then permits) to the largest number of whole shares (rounded up to the nearest whole number) issuable upon exercise of such Rights.

 

    	 	A-1	 

     

    

 

2.                 
Dividends and Distributions.

 

(a)               
Subject to the rights of the holders of any shares of any series of Preferred Stock of the Corporation (the “Preferred
Stock”) (or any similar stock) ranking prior and superior to the shares of Series A Preferred Stock with respect to
dividends, the holders of shares of the Series A Preferred Stock, in preference to the holders of common stock, par value $0.001
per share, of the Corporation (the “Common Stock”) and of any other stock of the Corporation ranking junior
to the Series A Preferred Stock, shall be entitled to receive, when, as and if declared by the Board of Directors out of funds
of the Corporation legally available for the payment of dividends, quarterly dividends payable in cash on the last day of each
fiscal quarter of the Corporation in each year, or such other dates as the Board of Directors shall approve (each such date being
referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment
Date after the first issuance of a share or fraction of a share of the Series A Preferred Stock (the “Issue Date”),
in an amount per share (rounded to the nearest cent) equal to the greater of (i) $1.00 or (ii) subject to the provision for adjustment
hereinafter set forth, 1000 times the aggregate per share amount of all cash dividends, and 1000 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 Common Stock
or a subdivision of the outstanding shares of the 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 shall at
any time after the Issue Date (A) declare and pay any dividend on the Common Stock payable in shares of Common Stock, or (B) effect
a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than
by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such
case the amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under 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. In the event the Corporation shall at any time declare or pay any
dividend on the Series A Preferred Stock payable in shares of Series A Preferred Stock, or effect a subdivision, combination or
consolidation of the outstanding shares of Series A Preferred Stock (by reclassification or otherwise than by payment of a dividend
in shares of Series A Preferred Stock) into a greater or lesser number of shares of Series A Preferred Stock, then in each such
case the amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under clause
(ii) of the first sentence of this Section 2(a) shall be adjusted by multiplying such amount by a fraction, the numerator of which
is the number of shares of Series A Preferred Stock that were outstanding immediately prior to such event and the denominator
of which is the number of shares of Series A Preferred Stock outstanding immediately after such event.

 

    	 	A-2	 

     

    

 

(b)              
The Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (a) of this
Section 2 immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares
of Common Stock); and the Corporation shall pay such dividend or distribution on the Series A Preferred Stock before the dividend
or distribution declared on the Common Stock is paid or set apart; provided 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, a dividend of $1.00 per share on the Series A Preferred Stock shall nevertheless be payable,
when, as and if declared, on such subsequent Quarterly Dividend Payment Date.

 

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

 

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 and except as otherwise provided in the Restated Certificate of
Incorporation or required by law, each share of Series A Preferred Stock shall entitle the holder thereof to 1000 votes on all
matters upon which the holders of the Common Stock of the Corporation are entitled to vote. In the event the Corporation shall
at any time after the Issue Date (i) declare or pay any dividend on the Common Stock payable in shares of Common Stock, or (ii)
effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise
than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the number of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior
to such event shall be adjusted by multiplying such number by a fraction, the numerator of which is the number of shares of Common
Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event. In the event the Corporation shall at any time declare or pay any dividend on the
Series A Preferred Stock payable in shares of Series A Preferred Stock, or effect a subdivision, combination or consolidation
of the outstanding shares of Series A Preferred Stock (by reclassification or otherwise than by payment of a dividend in shares
of Series A Preferred Stock) into a greater or lesser number of shares of Series A Preferred Stock, then in each such case the
number of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event
shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Series A Preferred
Stock that were outstanding immediately prior to such event and the denominator of which is the number of shares of Series A Preferred
Stock outstanding immediately after such event.

 

    	 	A-3	 

     

    

 

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

 

(c)            (i)If at any time dividends on any Series A Preferred Stock shall be in arrears in an amount equal to six quarterly dividends
thereon, the holders of the Series A Preferred Stock, voting as a separate series from all other series of Preferred Stock and
classes of capital stock, shall be entitled to elect two members of the Board in addition to any Directors elected by any other
series, class or classes of securities and the authorized number of Directors will automatically be increased by two. Promptly
thereafter, the Board of the Corporation shall, as soon as may be practicable, call a special meeting of holders of Series A Preferred
Stock for the purpose of electing such members of the Board. Such special meeting shall in any event be held within 45 days of
the occurrence of such arrearage.

 

(ii)              
During any period when the holders of Series A Preferred Stock, voting as a separate series, shall be entitled and shall have
exercised their right to elect two Directors, then, and during such time as such right continues, (a) the then authorized number
of Directors shall be increased by two, and the holders of Series A Preferred Stock, voting as a separate series, shall be entitled
to elect the additional Directors so provided for, and (b) each such additional Director shall serve until the next annual meeting
of stockholders for the election of Directors, or until his successor shall be elected and shall qualify, or until his right to
hold such office terminates pursuant to the provisions of this Section 3(c).

 

(iii)            
A Director elected pursuant to the terms hereof may be removed with or without cause by the holders of Series A Preferred Stock
entitled to vote in an election of such Director.

 

(iv)            
If, during any interval between annual meetings of stockholders for the election of Directors and while the holders of Series
A Preferred Stock shall be entitled to elect two Directors, there is no such Director in office by reason of resignation, death
or removal, then, promptly thereafter, the Board shall call a special meeting of the holders of Series A Preferred Stock for the
purpose of filling such vacancy and such vacancy shall be filled at such special meeting. Such special meeting shall in any event
be held within 45 days of the occurrence of such vacancy.

 

    	 	A-4	 

     

    

 

(v)              
At such time as the arrearage is fully cured, and all dividends accumulated and unpaid on any shares of Series A Preferred Stock
outstanding are paid, and, in addition thereto, at least one regular dividend has been paid subsequent to curing such arrearage,
the term of office of any Director elected pursuant to this Section 3(c), or his successor, shall automatically terminate, and
the authorized number of Directors shall automatically decrease by two, the rights of the holders of the shares of the Series
A Preferred Stock to vote as provided in this Section 3(c) shall cease, subject to renewal from time to time upon the same terms
and conditions, and the holders of shares of the Series A Preferred Stock shall have only the limited voting rights elsewhere
herein set forth.

 

(d)              
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.

 

4.                 
Certain Restrictions.

 

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

 

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

 

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

 

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

 

(iv)            
redeem or purchase or otherwise acquire for consideration any shares of Series A Preferred Stock, or 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
in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders
of such shares upon such terms as the Board of Directors, 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 paragraph (a) of this Section 4, purchase or otherwise acquire
such shares at such time and in such manner.

 

    	 	A-5	 

     

    

 

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, without designation as to series until such shares
are once more designated as part of a particular series of Preferred Stock by resolution or resolutions of the Board of Directors,
subject to the conditions and restrictions on issuance set forth herein, in the Restated Certificate of Incorporation, or in any
other Certificate of Designations creating a series of Preferred Stock or any similar stock or as otherwise required by law.

 

6.                 
Liquidation, Dissolution or Winding Up.

 

(a)               
Upon any liquidation, dissolution or winding up of the Corporation, no distribution shall be made (i) to the holders of the Common
Stock or of shares of any other stock of the Corporation 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 $1000 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not
declared, to the date of such payment, provided that the holders of shares of Series A Preferred Stock shall be entitled
to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1000 times the
aggregate amount to be distributed per share to holders of shares of Common Stock, or (ii) to the holders of 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 distributions
made ratably on the Series A Preferred Stock and all such parity stock in proportion to the total amounts to which the holders
of all such shares are entitled upon such liquidation, dissolution or winding up. In the event, however, that there are not sufficient
assets available to permit payment in full of the Series A Preferred Stock liquidation preference and the liquidation preferences
of all other classes and series of stock of the Corporation, if any, that rank on a parity with the Series A Preferred Stock in
respect thereof, then the assets available for such distribution shall be distributed ratably to the holders of the Series A Preferred
Stock and the holders of such parity shares in the proportion to their respective liquidation preferences. In the event the Corporation
shall at any time after the Issue Date (A) declare or pay any dividend on the Common Stock payable in shares of Common Stock,
or (B) effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock,
then in each such case the aggregate amount to which holders of shares of Series A Preferred Stock were entitled immediately prior
to such event under the proviso in clause (i) of this Section 6(a) 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. In the event the Corporation
shall at any time declare or pay any dividend on the Series A Preferred Stock payable in shares of Series A Preferred Stock, or
effect a subdivision, combination or consolidation of the outstanding shares of Series A Preferred Stock (by reclassification
or otherwise than by payment of a dividend in shares of Series A Preferred Stock) into a greater or lesser number of shares of
Series A Preferred Stock, then in each such case the aggregate amount to which holders of shares of Series A Preferred Stock were
entitled immediately prior to such event under the proviso in clause (1) of paragraph (A) of this Section 6 shall be adjusted
by multiplying such amount by a fraction, the numerator of which is the number of shares of Series A Preferred Stock that were
outstanding immediately prior to such event and the denominator of which is the number of shares of Series A Preferred Stock outstanding
immediately after such event.

 

    	 	A-6	 

     

    

 

(b)              
Neither the merger, consolidation or other business combination of the Corporation into or with another entity nor the merger,
consolidation or other business combination of any other entity into or with the Corporation (nor the sale, lease, exchange or
conveyance of all or substantially all of the property, assets or business of the Corporation) shall be deemed to be a liquidation,
dissolution or winding up of the Corporation within the meaning of this Section 6.

 

7.                 
Consolidation, Merger, etc. Notwithstanding anything to the contrary contained herein, in case the Corporation shall enter
into any consolidation, merger, combination or other transaction in which the shares of Common Stock are converted into, exchanged
for or changed into other stock or securities, cash and/or any other property (payable in kind), then in any such case each share
of Series A Preferred Stock shall at the same time be similarly converted into, exchanged for or changed into an amount per share
(subject to the provision for adjustment hereinafter set forth) equal to 1000 times the aggregate amount of stock, securities,
cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is converted
or exchanged. In the event the Corporation shall at any time after the Issue Date (i) declare or pay any dividend on the Common
Stock payable in shares of Common Stock, or (ii) effect a subdivision or combination or consolidation (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) of the outstanding shares of Common Stock into a greater or
lesser number of shares of Common Stock, then in each such case the amount set forth in the preceding sentence with respect to
the conversion, 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. In the event the Corporation
shall at any time declare or pay any dividend on the Series A Preferred Stock payable in shares of Series A Preferred Stock, or
effect a subdivision, combination or consolidation of the outstanding shares of Series A Preferred Stock (by reclassification
or otherwise than by payment of a dividend in shares of Series A Preferred Stock) into a greater or lesser number of shares of
Series A Preferred Stock, then in each such case the amount set forth in the first sentence of this Section 7 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 Series A Preferred Stock that were outstanding immediately prior to such event and the denominator
of which is the number of shares of Series A Preferred Stock outstanding immediately after such event.

 

    	 	A-7	 

     

    

 

8.                 
No Redemption. The shares of Series A Preferred Stock shall not be redeemable from any holder.

 

9.                 
Rank. The Series A Preferred Stock shall rank, with respect to the payment of dividends and the distribution of assets
upon liquidation, dissolution or winding up of the Corporation, junior to all series of any other class of the Preferred Stock
issued either before or after the issuance of the Series A Preferred Stock, unless the terms of any such series shall provide
otherwise, and shall rank senior to the Common Stock.

 

10.             
Amendment. At such time as any shares of Series A Preferred Stock are outstanding, if any proposed amendment to the Restated
Certificate of Incorporation (including this Certificate of Designation) would materially alter, change or repeal any of the preferences,
powers or special rights given to the Series A Preferred Stock so as to affect the Series A Preferred Stock adversely, then the
holders of the Series A Preferred Stock shall be entitled to vote separately as a class upon such amendment, and the affirmative
vote of two-thirds of the outstanding shares of the Series A Preferred Stock, voting separately as a single class, shall be necessary
for the adoption thereof, in addition to such other vote as may be required by the DGCL.

 

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

 

IN
WITNESS WHEREOF, the undersigned have signed and attested this Certificate of Designation on the 3rd day of April 2017.

 

	 	SITO
    MOBILE, LTD.
	 	 
	 	By:	   
	 	Name:	 
	 	Title:	 

 

	Attest:	 
	 	 
		 
	______________,
    Secretary	 

 

    	 	A-8	 

     

    

 

EXHIBIT
B

 

[Form
of Right Certificate]

 

	Certificate
    No. R-	_________Rights

 

NOT
EXERCISABLE AFTER APRIL 3, 2020, SUBJECT TO EARLIER REDEMPTION OR EXPIRATION PURSUANT TO THE SECTION 382 TAX BENEFITS PRESERVATION
PLAN. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.001 PER RIGHT ON THE TERMS SET FORTH IN THE SECTION
382 TAX BENEFITS PRESERVATION PLAN. THE RIGHTS EVIDENCED BY THIS CERTIFICATE SHALL NOT BE EXERCISABLE, AND SHALL BE VOID SO LONG
AS HELD BY A HOLDER IN ANY JURISDICTION WHERE THE REQUISITE QUALIFICATION FOR THE ISSUANCE TO SUCH HOLDER, OR THE EXERCISE BY
SUCH HOLDER, OF THE RIGHTS IN SUCH JURISDICTION SHALL NOT HAVE BEEN OBTAINED OR BE OBTAINABLE. THE BENEFICIAL OWNER OF THE RIGHTS
REPRESENTED BY THIS RIGHT CERTIFICATE MAY BE AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE (AS DEFINED IN THE SECTION 382 TAX
BENEFITS PRESERVATION PLAN) OF AN ACQUIRING PERSON OR A SUBSEQUENT HOLDER OF A RIGHT CERTIFICATE BENEFICIALLY OWNED BY SUCH PERSONS.
ACCORDINGLY, UNDER CERTAIN CIRCUMSTANCES AS PROVIDED IN THE SECTION 382 TAX BENEFITS PRESERVATION PLAN, THIS RIGHT CERTIFICATE
AND THE RIGHTS REPRESENTED HEREBY WILL BE NULL AND VOID.

 

RIGHT
CERTIFICATE

 

SITO
MOBILE, LTD.

 

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 Section 382 Tax Benefits Preservation
Plan, dated as of April 3, 2017, as amended, restated, renewed or extended from time to time (the “Plan”) between
SITO Mobile, Ltd., a Delaware corporation (“Company”), and Continental Stock Transfer & Trust Company,
as Rights Agent (“Rights Agent”), to purchase from the Company at any time after the Distribution Date (as
such term is defined in the Plan) and prior to 5:00 P.M., New York City time, on April 3, 2020, at the office or offices of the
Rights Agent, or its successors as Rights Agent, designated for such purpose, one one-thousandth of a fully paid, nonassessable
share of Series A Junior Participating Cumulative Preferred Stock, par value $0.001 per share, of the Company (a “Unit”),
at a purchase price of $11.00, as the same may from time to time be adjusted in accordance with the Plan (“Purchase Price”),
upon presentation and surrender of this Right Certificate with the Form of Election to Purchase and included Certificate duly
completed and executed. The number of Rights evidenced by this Right Certificate (and the number of shares which may be purchased
upon exercise thereof) set forth above, and the Purchase Price set forth above, are the number and Purchase Price as of ________,
20___, based on the Units as constituted at such date.

 

    	 	B-1	 

     

    

 

As
provided in the Plan, the Purchase Price and the number of Units which may be purchased upon the exercise of the Rights evidenced
by this Right Certificate are subject to modification and adjustment upon the happening of certain events and, upon the happening
of certain events, shares of Common Stock or other securities other than Units, or other property, may be acquired upon exercise
of the Rights evidenced by this Right Certificate, as provided by the Plan.

 

As
more fully set forth in the Plan, from and after the first occurrence of a Section 11(a)(ii) Event (as such term is defined in
the Plan), if the Rights evidenced by this Right Certificate are beneficially owned by (i) an Acquiring Person or an Associate
or Affiliate of an Acquiring Person (as such terms are defined in the Plan), (ii) a transferee of such Acquiring Person (or of
any such Associate or Affiliate), or (iii) under certain circumstances specified in the Plan, a transferee of such Acquiring Person
(or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with such Acquiring Person becoming
such, such Rights shall become null and void without any further action, and no holder hereof shall have any right with respect
to such Rights from and after the occurrence of such Section 11(a)(ii) Event, whether under the Plan or otherwise.

 

This
Right Certificate is subject to all of the terms, provisions and conditions of the Plan, which terms, provisions and conditions
are incorporated herein by reference and made a part hereof and to which Plan reference is hereby made for a full description
of the rights, limitations of rights, obligations, duties and immunities of the Rights Agent, the Company and the registered holders
of the Right Certificates. Copies of the Plan are on file at the principal executive office of the Company and will be mailed
to stockholders upon written request to the Rights Agent.

 

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

 

Subject
to the provisions of the Plan, the Rights evidenced by this Certificate may be (x) redeemed by the Company at its option at a
redemption price of $0.001 per Right at any time prior to the earlier of the Close of Business on (i) the tenth (10th) calendar
day after the Stock Acquisition Date, and (ii) the Final Expiration Date, or under certain other conditions as specified in the
Plan, and (y) exchanged, after any Person becomes an Acquiring Person (as such terms are defined in the Plan), at the option of
the Board of Directors of the Company, for one share of Common Stock of the Company as set forth in the Plan.

 

    	 	B-2	 

     

    

 

No
fractional Units, shares of Common Stock of the Company or other securities (other than fractions of a share of Preferred Stock
represented by Units) shall be required to be issued upon the exercise of any Right or Rights evidenced hereby, and in lieu thereof,
as provided in the Plan, a holder otherwise entitled to fractions of shares of Common Stock, Units or other securities (other
than fractions of a share of Preferred Stock represented by Units) may receive an amount in cash equal to the same fraction of
the then current value of a share of Common Stock or such other securities.

 

No
holder of this Right Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of Units,
shares of Preferred Stock, shares of Common Stock or of any other securities of the Company which may at any time be issuable
upon the exercise hereof, nor shall anything contained in the Plan 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 Plan) or to receive dividends or subscription rights,
or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided in the Plan.

 

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

 

 

 

 

[remainder
of page intentionally left blank]

 

    	 	B-3	 

     

    

 

WITNESS
the facsimile signature of the proper officers of the Company and its corporate seal, dated as of __________ __, ____.

 

	 	SITO MOBILE, LTD.
	 	 	 
	 	By:	
	 	Name:	
	 	Title:	  

 

	 	By:	
	 	Name:	
	 	Title:	  

 

	 	Countersigned:
	 	
	 	CONTINENTAL STOCK TRANSFER & TRUST COMPANY, as Rights Agent
	 	 
	 	By:	              
	 	Name:	
	 	Title:	  

 

    	 	B-4	 

     

    

 

[Form
of Reverse Side of Right Certificate]

 

FORM
OF ASSIGNMENT

 

(To
be executed by the registered holder if such holder

 

desires
to transfer the Right Certificate.)

 

FOR
VALUE RECEIVED __________________________ hereby sells, assigns and transfers unto

 

 

(Please
print name and address of transferee)

 

 

 

 

 

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

 

Dated:
_____________, 20__

 

	 	
	 	Signature
	 	 
	 	(Signature must conform in all respects to the name of holder as written upon the face of this Right Certificate, without alteration or enlargement or any change whatsoever.) 

 

Signature
Guaranteed:*

 

*
Signature must be guaranteed by an “Eligible Guarantor Institution” pursuant to Rule 17Ad-15 of the Securities
Exchange Act of 1934, as amended.

 

    	 	B-5	 

     

    

 

Certificate

 

The
undersigned hereby certifies by checking the appropriate boxes that:

 

(1)       the
Rights evidenced by this Right Certificate

 

[
] are

 

[
] are not

 

being
exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Acquiring Person
(as such terms are defined in the Plan);

 

(2)       after
due inquiry and to the best knowledge of the undersigned, the undersigned

 

[
] did

 

[
] did not

 

acquire
the Rights evidenced by this Right Certificate from any Person who is or was an Acquiring Person or an Affiliate or Associate
of an Acquiring Person or any transferee of such Persons.

 

Dated:
______________, 20__

 

	Signature:		 
	 	 	 
	(Signature
must conform in all respects to the name of holder as written upon the face of this Right Certificate, without alteration or enlargement
or any change whatsoever.) 	 

 

Signature
Guaranteed:*

 

*
Signature must be guaranteed by an “Eligible Guarantor Institution” pursuant to Rule 17Ad-15 of the Securities
Exchange Act of 1934, as amended.

 

    	 	B-6	 

     

    

 

FORM
OF ELECTION TO PURCHASE

 

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

 

To:
SITO MOBILE, LTD.

 

The
undersigned hereby irrevocably elects to exercise ____________ Rights represented by this Right Certificate to purchase the number
of one one-thousandths of a share of Preferred Stock, shares of Common Stock or other securities issuable upon the exercise of
such Rights and requests that certificates representing such share(s) or other securities be issued in the name of:

 

Please
insert social security or other identifying number                                                            

 

 

 

(Please
print name and address)

 

If
such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new Right Certificate for the remaining
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:
_____________, 20__

 

 

	 	
	 	Signature
	 	 
	 	(Signature
                                         must conform in all respects to the name of holder as written upon the face of the Right
                                         Certificate, without alteration or enlargement or any change whatsoever.)

 

Signature
Guaranteed:*

 

*
Signature must be guaranteed by an “Eligible Guarantor Institution” pursuant to Rule 17Ad-15 of the Securities
Exchange Act of 1934, as amended.

 

    	 	B-7	 

     

    

 

Certificate

 

The
undersigned hereby certifies by checking the appropriate boxes that:

 

(1)       the
Rights evidenced by this Right Certificate

 

[
] are

 

[
] are not

 

being
exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Acquiring Person
(as such terms are defined in the Plan);

 

(2)       after
due inquiry and to the best knowledge of the undersigned, the undersigned

 

[
] did

 

[
] did not

 

acquire
the Rights evidenced by this Right Certificate from any Person who is or was an Acquiring Person or an Affiliate or Associate
of an Acquiring Person or any transferee of such Persons.

 

Dated:
______________, 20__

 

	Signature:	 	 
	 	 	 
	(Signature
must conform in all respects to the name of holder as written upon the face of this Right Certificate, without alteration or enlargement
or any change whatsoever.)	 

 

Signature
Guaranteed:*

 

*
Signature must be guaranteed by an “Eligible Guarantor Institution” pursuant to Rule 17Ad-15 of the Securities
Exchange Act of 1934, as amended.

    	 	B-8	 

     

    

 

EXHIBIT
C

 

UNDER
CERTAIN CIRCUMSTANCES AS SET FORTH IN THE SECTION 382 TAX BENEFITS PRESERVATION PLAN, RIGHTS THAT ARE OR WERE BENEFICIALLY OWNED
BY AN ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE SECTION 382 TAX
BENEFITS PRESERVATION PLAN) MAY BECOME NULL AND VOID.

 

SITO
MOBILE, LTD.

SUMMARY OF THE TERMS OF THE RIGHTS

TO PURCHASE UNITS OF PREFERRED STOCK

 

On
April 3, 2017, the Board of Directors (the “Board”) of SITO Mobile, Ltd., a Delaware corporation (the “Company”),
declared a dividend distribution of one purchase right (a “Right”) for each outstanding share of Common Stock,
par value $0.001 per share (the “Common Stock”), of the Company, payable to stockholders of record on April
14, 2017, and issuable as of that date. Except in the circumstances described below, each Right, when it becomes exercisable,
entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Cumulative
Preferred Stock, $0.001 par value, of the Company (“Preferred Stock” and each one one-thousandth of a share
of Preferred Stock, a “Unit”) at a price of $11.00 per Unit (the “Purchase Price”). The
rights of a holder of a Unit are substantially equivalent to the rights of a holder of a share of Common Stock. The description
and terms of the Rights are set forth in a Section 382 Tax Benefits Preservation Plan (the “Plan”) between
the Company and Continental Stock Transfer & Trust Company, as rights agent (the “Rights Agent”).

 

The
Company has generated substantial operating losses (“NOLs”) in previous years which, under the Internal Revenue
Code of 1986 (the “Code”), the Company may in certain circumstances use to offset current and future earnings
and thus reduce its future federal income tax liability (subject to certain requirements and restrictions). However, if the Company
experiences an “Ownership Change,” as defined in Section 382 of the Code and the treasury regulations promulgated
thereunder (“Section 382”), its ability to use these NOLs could be substantially limited or lost altogether.
In order to seek to avoid an “Ownership Change” and protect stockholder value, the Board of Directors adopted the
Plan.

 

As
discussed below, initially the Rights will not be exercisable, certificates will not be sent to stockholders and the Rights will
automatically trade with the Common Stock.

 

The
Rights will be evidenced by Common Stock certificates, and Rights relating to shares of Common Stock not represented by certificates
will be represented by notation on the records of the Company, until the close of business on the earlier to occur of (i) the
tenth (10th) calendar day after the day on which a public announcement or filing that a person or group of affiliated or associated
persons has become an “Acquiring Person,” which is defined as a person who, at any time after the date of the
Plan, has acquired, or obtained the right to acquire, beneficial ownership of 4.99% or more of the Common Stock of the Company
then outstanding, subject to certain exceptions as described below, or (ii) the tenth (10th) calendar day (or a later date determined
by the Board of Directors of the Company prior to such time as any person becomes an Acquiring Person) after the commencement
of a tender or exchange offer by or on behalf of a person the consummation of which would result in such person, together with
its Affiliates and Associates, becoming an Acquiring Person, irrespective of whether any shares are actually purchased pursuant
to such offer (the earlier of these dates is called the “Distribution Date”). As soon as practicable following
a Distribution Date, the Rights Agent will, if requested to do so by the Company, mail separate certificates evidencing the Rights
(“Right Certificates”) to holders of record of shares of the Common Stock as of the close of business on the
Distribution Date, and those separate certificates alone will evidence the Rights from and after the Distribution Date.

 

    	 	C-1	 

     

    

 

Each
of the following persons will not be deemed to be an Acquiring Person, even if they have acquired, or obtained the right to acquire,
beneficial ownership of 4.99% or more of the shares of Common Stock of the Company then outstanding: (i) the Company; (ii) any
Subsidiary of the Company, (iii) any employee benefit plan or employee stock plan of the Company or any Subsidiary of the Company,
or any person organized, appointed, established or holding shares of Common Stock of the Company for or pursuant to the terms
of any such plan; (iv) any “direct public group” within the meaning of Treasury Regulations Section 1.382-2T(j)(2)(ii);
(v) any person who the Board determines prior to the time the person would otherwise be an Acquiring Person, should be exempted
from being an Acquiring Person; (vi) any person who would otherwise be an Acquiring Person upon the first public announcement
by the Company of the adoption of the Plan, unless and until such person, or any Affiliate of such person, acquires beneficial
ownership of any additional shares of Common Stock after the first public announcement by the Company of the adoption of the Plan;
(vii) any person who as the result of an acquisition of shares of Common Stock by the Company (or any Subsidiary of the Company,
any employee benefit plan or employee stock plan of the Company or any Subsidiary of the Company, or any person organized, appointed,
established or holding shares of Common Stock of the Company for or pursuant to the terms of any such plan) which, by reducing
the number of shares of Common Stock outstanding, increases the proportionate number of shares of Common Stock beneficially owned
by the person to 4.99% or more of the shares of Common Stock then outstanding, unless and until such person, or any Affiliate
of such person, following the first public announcement by the Company of such share acquisition, acquires beneficial ownership
of any additional shares of Common Stock (other than pursuant to a stock split, reverse stock split, stock dividend, reclassification
or similar transaction effected by the Company); or (viii) any person who or which, within ten (10) business days of being requested
by the Company to advise it regarding the same, certifies to the Company that such person acquired shares of Common Stock in excess
of 4.99% inadvertently or without knowledge of the terms of the Rights and who or which, together with all Affiliates and Associates,
thereafter within ten (10) business days following such certification reduces such person’s (together with its Affiliates’
and Associates’) beneficial ownership to less than 4.99% of the shares of Common Stock then outstanding; provided,
however, that (x) if the person requested to so certify fails to do so within ten (10) business days or breaches or violates
such certification, then such person shall become an Acquiring Person immediately after such ten (10) business day period or such
breach or violation or (y) if the person together with its Affiliates and Associates fails to reduce beneficial ownership to less
than 4.99% within ten (10) business days following such certification, then such person shall become an Acquiring Person immediately
after such ten (10) business day period. In addition, no person shall be an Acquiring Person if the Board shall have affirmatively
determined in light of the intent and purposes of the Plan or other circumstances facing the Company, that such person should
not be deemed an Acquiring Person. A person (other than any “direct public group” within the meaning of Treasury Regulations
Section 1.382-2T(j)(2)(ii)) will be treated as the beneficial owner of 4.99% or more shares of the Common Stock if, in the determination
of the Board, that person would be treated as a “5-percent stockholder” for purposes of Section 382 (substituting
“4.99” for “5” each time “five” or “5” is used in or for purposes of Section 382.

 

    	 	C-2	 

     

    

 

The
Rights are not exercisable until after the Distribution Date. The Rights will expire upon the earliest of (i) the date on which
all of the Rights are redeemed as described below, (ii) the date on which the Rights are exchanged as described below, (iii) the
consummation of a reorganization transaction entered into by the Company resulting in the imposition of stock transfer restrictions
that the Board determines, in its sole discretion, will provide protection for the Company’s tax attributes similar to that
provided by the Plan, (iv) the close of business on the effective date of the repeal of Section 382, or any other change, if the
Board determines, in its sole discretion, that the Plan is no longer necessary or desirable for the preservation of the Company’s
tax attributes, (v) the date on which the Board otherwise determines, in its sole discretion, that the Plan is no longer necessary
to preserve the Company’s tax attributes, (vi) the beginning of a taxable year of the Company to which the Board determines,
in its sole discretion, that none of the Company’s tax attributes may be carried forward, and (vii) the close of business
on April 3, 2020.

 

The
Purchase Price, and the number of Units, shares of Common Stock or other securities or property issuable upon exercise of the
Rights, are subject to adjustment from time to time to prevent dilution: (i) in the event of a stock dividend on, or a subdivision,
combination or reclassification of, the Preferred Stock; (ii) upon the grant to holders of Preferred Stock of certain rights or
warrants to subscribe for Preferred Stock or convertible securities at less than the current market price of the Preferred Stock;
or (iii) upon the distribution to holders of the Preferred Stock of evidences of indebtedness or assets (excluding dividends payable
in Preferred Stock) or of subscription rights or warrants (other than those referred to above). The Purchase Price is also subject
to adjustment from time to time in the event of a Common Stock dividend on, or a subdivision or combination of, the shares of
Common Stock.

 

In
the event any Person becomes an Acquiring Person, then each holder of record of a Right, other than the Acquiring Person, will
thereafter have the right to receive, upon payment of the Purchase Price, that number of shares of Common Stock having a value
at the time the person becomes an Acquiring Person equal to twice the Purchase Price. Any Rights that are or were at any time,
on or after the Distribution Date, beneficially owned by an Acquiring Person will become null and void. After such an event, to
the extent that insufficient shares of Common Stock are available for the exercise in full of the Rights, holders of Rights will
receive upon exercise a number of shares of Common Stock to the extent available and then Units or other securities of the Company,
assets, or cash, in proportions determined by the Company, so that the aggregate value received is equal to twice the Purchase
Price.

 

    	 	C-3	 

     

    

 

No
fractional shares of Common Stock or Units will be required to be issued upon exercise of the Rights and, in lieu thereof, a payment
in cash equal to the fraction of the then current value of a share of Common Stock may be made.

 

At
any time after a person becomes an Acquiring Person, the Board may exchange all or part of the outstanding Rights (other than
those held by an Acquiring Person) for shares of Common Stock at an exchange rate of one share of Common Stock (and, in certain
circumstances, a Unit) for each Right. The Company will promptly give public notice of any exchange (although failure to give
notice will not affect the validity of the exchange).

 

At
any time until the close of business on the tenth (10th) calendar day after the day a public announcement or filing is made indicating
that a person has become an Acquiring Person (and prior to the giving of notice of the exchange or redemption, as applicable to
the holders of the Rights), or thereafter under certain circumstances, the Company may redeem the Rights in whole, but not in
part, at a price of $0.001 per Right.

 

Immediately
upon the action of the Board authorizing exchange or redemption of the Rights, the right to exercise the Rights will terminate,
and the only right of the holders of Rights will be to receive (if applicable) the shares of Common Stock of the Company (or Units)
issuable in connection with the exchange or the Redemption Price without any interest thereon.

 

Until
the close of business on the tenth (10th) calendar day after the day a public announcement or a filing is made indicating that
a person has become an Acquiring Person, or thereafter under certain circumstances, the Company may amend the Rights in any manner.
The Company may also amend the Plan after the close of business on the tenth (10th) calendar day after the day a public announcement
or filing is made indicating that a person has become an Acquiring Person, to cure ambiguities, to correct defective or inconsistent
provisions or to otherwise change or supplement the Plan in any manner that does not adversely affect the interests of holders
of the Rights.

 

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

 

The
issuance of the Rights should not be taxable to the Company or to stockholders under presently existing federal income tax law.
However, if the Rights become exercisable or are redeemed, stockholders may recognize taxable income, depending on the circumstances
then existing.

 

A
copy of the Plan has been filed with the Securities and Exchange Commission as an Exhibit to a Current Report on Form 8-K filed
on April 4, 2017. In addition, a copy of the Plan is available free of charge from the Company. This summary description of the
Rights does not purport to be complete and is qualified in its entirety by reference to the Plan, which is incorporated in this
summary description by reference.

 

 

C-4Exhibit

Execution Version 
    
SEPARATION AGREEMENT AND GENERAL RELEASE
THIS SEPARATION AGREEMENT AND GENERAL RELEASE (this “Agreement”), dated as of March 31, 2017, is entered into by and between DANIEL J. MOREFIELD, a resident of the State of California (“Executive”), and Quality Systems, Inc., a California corporation (the “Company”, Executive and the Company, each a “Party” and, collectively, the “Parties”), and is intended by the Parties to conclude any and all obligations or other matters arising out of or regarding Executive’s employment with the Company and any of its subsidiaries.
RECITALS
WHEREAS, effective as of April 15, 2017 (the “Separation Date”), Executive will resign from all of his positions as (a) an officer or employee of the Company (including, without limitation, as Chief Operating Officer) and its subsidiaries and (b) a member of the board of directors of NextGen Healthcare India Private Limited (“NextGen”), as well as all committees thereof.
WHEREAS, the Company and Executive mutually desire to settle fully and finally all obligations to Executive that the Company and its subsidiaries may have of any nature whatsoever, as well as (subject to certain limited exceptions expressly set forth in this Agreement) any asserted or unasserted claims that Executive may have against the Company, its subsidiaries or any other Company Releasees (as defined below), all pursuant to and in accordance with the terms and conditions of this Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the Parties agree as follows:
1.Separation of Employment. Executive acknowledges and confirms that, effective as of the Separation Date, Executive is resigning from all of his positions as (a) an officer or employee of the Company (including, without limitation, as Chief Operating Officer) and its subsidiaries and (b) a member of the board of directors of NextGen, as well as all committees thereof. 

2.Final Compensation. On the Separation Date, the Company will deliver to Executive a final check for his wages through the Separation Date, which will include a payout of all accrued but unused paid time off (“PTO”) as of the Separation Date. Executive acknowledges and agrees that, upon receipt of the final check pursuant to the immediately preceding sentence, he will have been paid all compensation to which he is entitled in connection with his employment with the Company and its subsidiaries, including but not limited to (a) wages and accrued PTO up to and including the Separation Date and (b) except as set forth in Section 3(b) below, any and all amounts (whether in cash or equity) owed to him under all compensation programs to which he has been subject. Executive acknowledges and agrees that this Agreement is entered into to resolve any and all Claims (as defined below), including, but not limited to, any and all Claims for wages, bonuses or other compensation of any type or character.

3.    Severance Payments. 

(a)    On the Effective Date (as defined below), the Company will pay Executive the aggregate amount of $450,333, less required deductions and withholdings (the “Separation Payment”), by check or wire transfer (pursuant to such instructions as Executive shall provide the Company in writing).

(b)    The Company also agrees to pay Executive by check or wire transfer (pursuant to such instructions as Executive shall provide the Company in writing), if, as and when due in accordance with the terms and conditions of the Company’s Fiscal Year 2017 Compensation Program (the “Compensation Program”) but in no event later than December 31, 2017, any cash bonus due to Executive under the Compensation Program that is tied to the Company’s performance for its fiscal year ending March 31, 2017 (“FY 2017”) (“Potential Cash Bonus”). Executive acknowledges and agrees that: (x) the Potential Cash Bonus is subject in all respects to the applicable terms and conditions of the Compensation Program, which terms and conditions are not modified or amended by this Agreement and remain in full force and effect, (y) the amount of any such Potential Cash Bonus, if any, ultimately payable to 

Executive is dependent upon the Company’s performance during FY 2017, and that Executive shall not have any claim against the Company or any other Company Releasees (in respect of the Potential Cash Bonus or otherwise) due to the Company’s or its common stock’s FY 2017 performance or any impact thereof on the Potential Cash Bonus, and (z) the determination of the Compensation Committee of the Board of Directors of any Potential Cash Bonus, if any, ultimately payable to Executive shall, absent intentional misconduct on the part of the Compensation Committee, be final and binding on Executive. 

(c)    The Company will reimburse Executive for all reasonable outstanding business-related expenses incurred by him prior to the Separation Date that have not previously been reimbursed, subject to the Company’s policies relating to business-related expenses and submission of an itemized expense report reasonably satisfactory to the Company.

(d)    Executive acknowledges and agrees that, pursuant to the requirements of Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Section 954”), any Potential Cash Bonus, if any, paid to Executive pursuant to Section 3(b), as well as certain other payments received by Executive prior to the Separation Date to the extent covered by Section 954, may be subject to “clawback” in the event the Company is required to prepare an accounting restatement of its applicable financial statements due to the Company’s material noncompliance with applicable financial reporting requirements. Executive agrees to promptly return to the Company the amount of any compensation paid to Executive that is required to be forfeited in accordance with Section 954.

(e)    Executive acknowledges and agrees that the Separation Payment, Potential Cash Bonus, and COBRA Reimbursement Payments (as defined below) are paid (or, as applicable, payable) in consideration of the covenants made by Executive set forth in this Agreement, including, without limitation, the covenants set forth in Section 7 of this Agreement.

4.Health Insurance Benefits. Executive’s participation as an active employee, and if applicable Executive’s dependent(s)’ coverage, under all employee health benefit plans sponsored by the Company shall end at the close of business on April 15, 2017. As required by law, Executive shall receive a separate notification from the Company regarding Executive’s and Executive’s dependent(s)’ right to continue participation in any group health care benefit plan sponsored by the Company pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”). Provided that Executive makes a timely election for continued coverage for Executive pursuant to COBRA, the Company will reimburse Executive for the monthly premiums for his continued coverage under the Company’s group health care benefit plan (the “COBRA Reimbursement Payments”) for the period beginning on the Separation Date and ending on the earlier to occur of (a) the date Executive is eligible for coverage under a group health care benefit plan of a current or future employer of Executive, (b) the date Executive ceases to be eligible for COBRA continuation coverage for any reason, including plan termination, or (c) April 15, 2018 (the “COBRA Reimbursement Period”). Thereafter, any continuation coverage under COBRA shall be at Executive’s and/or Executive’s dependent(s)’ own expense. Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay the COBRA Reimbursement Payments without potentially incurring financial costs or penalties under applicable law  (including, without limitation, Section 2716 of the Public Health Service Act), regardless of whether Executive or Executive’s dependents elect or are eligible for COBRA coverage, the Company instead shall pay to Executive, on the first day of each calendar month following the termination date, a fully taxable cash payment equal to the applicable COBRA premiums for that month (including the amount of COBRA premiums for Executive’s eligible dependents), subject to applicable tax withholdings (such amount, the “Special Cash Payment”), for the remainder of the COBRA Reimbursement Period.  Executive may, but is not obligated to, use such Special Cash Payments toward the cost of COBRA premiums or toward premium costs under an individual health plan.

5.Other Benefits. The Company shall not be obligated to provide or reimburse Executive for any compensation, salary, profit sharing, stock options, bonuses, insurance, allowances (including automobile), benefits (including medical, dental, life and disability), PTO, perquisites or expenses after the Separation Date, other than as specifically provided by this Agreement.

6.Indemnification. The Parties hereby reaffirm their respective obligations under the Company’s standard form of indemnification agreement (a copy of which is attached as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 28, 2013) previously entered into by the Company and Executive, as well as (a) the indemnification provisions of the Company’s articles of incorporation and bylaws as in effect on the Separation Date and (b) any right to indemnification afforded under applicable state and federal law (collectively, the “Indemnification Obligations”).

7.    Post-Separation Covenants of Executive. 

(a)    Non-Solicitation. Until the two year anniversary of the Effective Date (“Designated Period”), Executive will not directly or indirectly, as agent, employee, consultant, representative, stockholder, member, manager, partner or in any other capacity, (a) recruit or solicit for employment or engagement any person whom Executive is aware, or Executive reasonably should be aware, is employed or engaged by the Company or any of its current or future subsidiaries, or (b) use any of the Company’s trade secret information to call upon, contact or communicate with, solicit, contract with, or divert from the Company or any of its current or future subsidiaries (as an employee, owner, director, officer, consultant, independent contractor, agent or any other capacity) any proprietary customer or prospect, or any proprietary source of customer referrals, of the Company or any of its current or future subsidiaries.

(b)    Return of Property.  Executive represents and acknowledges that, with the exception of the Retained Property, he has returned, or will return on the Separation Date, to the Company all property of the Company or any of its subsidiaries in his possession or under his control, including but not limited to files, computers, all related software, office keys and credit cards. Executive further represents and warrants that, from and after the Separation Date, with the exception of the Retained Property, he has no other Company (or subsidiary of the Company) property in his possession or under his control, including hard copy or electronically stored documents, computer disks, written policies or procedures or other documents pertaining to any past, present or known prospective clients of the Company or its subsidiaries, and that he has not given these or similar items to any third party, except in the course and scope of his employment with the Company and its subsidiaries.  The “Retained Property” is defined as the following items of Company property issued to Executive during the course of his employment with Company, which Company shall permit Executive to retain for personal use following his Separation Date: (i) Dell laptop computer, Latitude E7450; (ii) Apple iPad, MH2H2LL-A; and (iii) Apple iPhone 7.

(c)    Trade Secrets and Confidential Information. Executive acknowledges and agrees that he has learned, obtained, acquired, and become aware of information about the Company Releasees (as defined below) and their businesses, including, without limitation, unique selling and servicing methods and business techniques, business strategies, financial information, training, service and business manuals, promotional materials, training courses and other training and instructional materials, vendor and product information, customer and prospective customer lists, other customer and prospective customer information, methods, processes, inventions, technology, software, code, patents, copyrights, trademarks and other intellectual property and intangible rights, legal matters, personal information regarding the Company’s directors, officers and employees, and other business information (collectively referred to as “Confidential Information”). Executive specifically acknowledges that all such Confidential Information, whether reduced to writing, maintained on any form of electronic media, or maintained in the mind or memory of Executive and whether compiled by the Company or any of its affiliates or by Executive, derives independent economic value from not being readily known to or ascertainable by proper means by others who can obtain economic value from its disclosure or use, that reasonable efforts have been made by the Company and its affiliates to maintain the secrecy of such information, that such information is the sole property of the Company or an affiliate of the Company and that any retention and use of such information or rights by Executive shall constitute a misappropriation of the Company’s or its affiliates’ trade secrets, rights or other property. Executive agrees at all times to refrain from disclosing any Confidential Information to any person, either orally or in writing, for any reason.

(d)    Nondisparagement. From and after the Separation Date, Executive agrees that he shall refrain from making, directly or indirectly, either orally or in writing, any disparaging statement or remarks concerning the Company, its subsidiaries, any of their former, current or future respective officers, directors, or employees, or the Company’s or any of its subsidiaries’ former, current or future business, products or services. This section shall not apply if Executive is compelled to testify in a legal proceeding, including, without limitation, any legal proceeding between the Parties.

(e)    Protection of Goodwill. Executive acknowledges that the provisions of this Section 7 are essential to protect the business and goodwill of the Company. If at any time the provisions of this Section 7 shall be determined to be invalid or unenforceable by reason of being vague or unreasonable as to area, duration or scope of activity, this Section 7 shall be considered divisible and shall become and be immediately amended to only such area, duration and scope of activity as shall be determined to be reasonable and enforceable by the court or other body having jurisdiction over the matter; and Executive agrees that this Section 7 as so amended shall be valid and binding as though any invalid or unenforceable provision had not been included herein. Executive acknowledges that he has agreed to be bound by the provisions of this Section 7 in consideration for the compensation, severance and other benefits to be provided by the Company to Executive pursuant to the terms of this Agreement.

(f)    Reporting Violations of Law. Nothing in this Agreement prohibits Executive from reporting an event that Executive reasonably and in good faith believes is a violation of law to the relevant law-enforcement agency (such as the Securities and Exchange Commission, Equal Employment Opportunity Commission, United States Department of Labor, the Occupational Health and Safety Administration, or the California Department of Fair Employment and Housing), or from cooperating in an investigation conducted by such a government agency.  This may include disclosure of trade secrets or Confidential Information within the limitations permitted by the 2016 Defend Trade Secrets Act (DTSA).  Executive is hereby provided notice that under the  DTSA, (1) no individual will be held criminally or civilly liable under Federal or State trade secret law for the disclosure of a trade secret (as defined in the Economic Espionage Act) that: (A) is made in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and made solely for the purpose of reporting or investigating a suspected violation of law; or, (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made public; and, (2) an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document contain the trade secret under seal, and does not disclose the trade secret, except as permitted by court order.

8.Non-Disparagement of Executive. From and after the Separation Date, the Company and its subsidiaries will not, by or at the direction of any current or future officer of the Company or any of its subsidiaries, make, either orally or in writing, any disparaging statements or remarks about Executive. This section shall not apply if the Company, its subsidiaries or any of their respective current or former officers, directors or employees is compelled to testify in a legal proceeding, including, without limitation, any legal proceeding between the Parties.

9.    General Release of All Known and Unknown Claims. 

(a)    Except for the Company’s obligations under this Agreement, the Potential Cash Bonus and the Indemnification Obligations, Executive hereby forever waives, releases, acquits, relieves and discharges the Company, and each of its parent corporations, subsidiaries, divisions, or affiliated corporations, organizations or entities (including, but not limited to, NextGen Healthcare Information Systems, LLC, NextGen RCM Services, LLC, QSI Management, LLC, NextGen Healthcare India Pvt. Ltd., ViaTrack Systems, LLC, Matrix Management Solutions, LLC, Mirth, LLC, Mirth Limited, HealthFusion Holdings Inc., HealthFusion Inc. and all other subsidiaries and affiliates of the Company), and each and all of their predecessors, successors, heirs, assigns, officers, employees, directors, shareholders, managers, members, managing members, owners, representatives, consultants, insurers, insurance companies, attorneys and agents, whether previously or hereinafter affiliated in any manner (collectively, the “Company Releasees”), from any and all claims, rights, actions, complaints, demands, causes of action, charges of discrimination, retaliation or harassment, wage claims, whistleblower claims, obligations, promises, contracts, agreements, controversies, suits, debts, expenses, damages, attorneys’ fees, costs and liabilities of any nature whatsoever (collectively, “Claims”), whether or not now known, suspected, claimed, matured or unmatured, which Executive ever had, now has, or may claim to have from the beginning of time to the Separation Date against the Company Releasees (whether directly or indirectly), or any of them, by reason of any act, event or omission concerning any matter, cause or thing, including, without limiting the generality of the foregoing, any claims related to or arising out of (i) Executive’s employment with or service as a director or management committee member of any of the Company Releasees or the cessation of that employment or service as a director or management committee member; (ii) any common law or statutory torts; (iii) any federal, state or governmental constitution, statute, regulation or ordinance, including, without limitation, the California Fair Employment and Housing Act (California Government Code section 12900, et seq.); the Unruh Civil Rights Act (California Civil Code section 51); the California Family Rights Act (California Government Code sections 12945.2 and 19702.3); the California Labor Code; the Equal Pay Act of 1963, as amended (29 U.S.C. section 206(d) et. seq.); Title VII of the Civil Rights Act of 1964, as amended (42 U.S.C. section 2000e et seq.); Employee Retirement Income Security Act of 1974, as amended (29 U.S.C. section 1001 et seq.); the Family Medical Leave Act (29 U.S.C. section 2601 et seq.); the Fair Labor Standards Act of 1938, as amended (29 U.S.C. section 201, et seq.); the United States and California Constitutions; the Americans With Disabilities Act, as amended (42 U.S.C. section 12101, et seq.); 42 U.S. C. sections 1981 and 1983; State wage and hour laws; or any other State, Federal or local statutes or laws. Executive further acknowledges that such Claims also include claims based on the Age Discrimination in Employment Act, as amended (29 U.S.C. section 621, et seq.). The provisions of this Section do not release claims that cannot be released as a matter of law. The provisions of this Section also do not preclude (1) filing suit to challenge the Company’s compliance with the waiver requirements of the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, or (2) filing a claim or charge with, cooperating with, or participating in any proceeding before the Equal Employment Opportunity Commission, the Department of Labor, or any other local, state, or federal agency; provided however, that Executive hereby waives Executive’s right to receive any monetary or other benefits in connection with any such claim, charge or proceeding.  Notwithstanding the foregoing, this 

Agreement does not limit the Executive’s right to receive an award for information provided to the Securities and Exchange Commission. 

(b)    Except for Executive’s obligations under this Agreement and the Indemnification Obligations, the Company, on its own behalf and on behalf of its subsidiaries, hereby forever waives, releases, acquits, relieves and discharges Executive and his heirs and assigns (collectively, the “Executive Releasees”), from any and all Claims, whether or not now known, suspected, claimed, matured or unmatured, which the Company or its affiliates ever had, now has, or may claim to have from the beginning of time to the Separation Date against Executive Releasees (whether directly or indirectly), or any of them, by reason of any act, event or omission concerning any matter, cause or thing, including, without limiting the generality of the foregoing, any claims related to or arising out of (i) Executive’s employment with or service as a director or management committee member of any of the Company Releasees or the cessation of that employment or service as a director or management committee member; (ii) any common law or statutory torts; (iii) any federal, state or governmental constitution, statute, regulation or ordinance; and/or (iv) any agreement or covenant, oral or written, express or implied, between Executive and any of the Company Releasees; provided, however, that the foregoing release does not apply to fraudulent or criminal activity of Executive or to rights which as a matter of law cannot be waived.

(c)    Further, in connection with the releases set forth above in this Section 9, the Parties expressly agree to waive and relinquish all rights and benefits they may have under Section 1542 of the Civil Code of the State of California or any similar law of any other state. Section 1542 reads as follows:

“§ 1542. [CERTAIN CLAIMS NOT AFFECTED BY GENERAL RELEASE.] A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
(d)    Each Party expressly represents and warrants to the other Party that he or it is the sole owner of the Claims released by this Section 9; that such Claims have not been transferred or assigned or caused to be transferred or assigned to any other person, firm, corporation or other legal entity; and that he or it has the full right and power to grant, execute and deliver the general release, undertakings and agreements contained herein.

(e)    The Parties acknowledge that they may discover hereafter facts different from or in addition to those they now know or believe to be true with respect to the claims, demands, causes of action, obligations, damages and liabilities of any nature whatsoever that are the subject of the release set forth in this Section 9, and they each expressly agree to assume the risk of the possible discovery of additional or different facts, and agree that this Agreement shall be and remain effective in all respects regardless of such additional or different facts.

10.    Cooperation with Litigation. Upon reasonable request, Executive agrees to cooperate with the Company Releasees in connection with any present or future litigation, arbitration, dispute resolution, claim, action or other proceeding brought against any one or more of the Company Releasees, to the extent the Company deems Executive’s cooperation necessary. Such cooperation may include, but shall not be limited to, meeting with the Company Releasees’ counsel and providing testimony if so requested. The Company will reimburse Executive for pre-approved out-of-pocket expenses incurred by Executive (including reasonable attorney’s fees, if appropriate) as a result of such cooperation, provided that the Company shall not unreasonably withhold or delay approval of such expenses. Any such cooperation and/or attendance at meetings shall be scheduled at such dates and times as reasonably agreed by Executive and the Company.

11.    Tax Issues. Executive acknowledges that he has not obtained any advice from any Company Releasee regarding the tax consequences of any amounts payable to Executive pursuant to this Agreement, the Potential Cash Bonus and the Indemnification Obligations. Executive agrees to be solely liable for and to pay, indemnify and hold the Company Releasees harmless from and against, any and all taxes, costs, interest, assessments, penalties and/or damages that Executive may owe arising out of any of the payments or distributions made, or to be made, by the Company or its subsidiaries to Executive under the terms of this Agreement, the Potential Cash Bonus and the Indemnification Obligations, including, without limitation, Internal Revenue Code Section 409A.

12.    Injunctive Relief; Specific Performance. Executive acknowledges and agrees that if Section 7 or Section 10 of this Agreement is breached, the Company could not be made whole by monetary damages alone. Accordingly, the Company, in addition to any other rights or remedies to which it may be entitled by law or in equity, 

shall be entitled to injunctive relief to breaches of Section 7 or Section 10 of this Agreement, and to an order compelling specific performance of Section 7 or Section 10 of this Agreement, in each case without any obligations of the Company to post a bond or provide any other security.

13.    Severability. Each provision of this Agreement is intended to be severable. If any covenant, condition or other provision contained in this Agreement is held to be invalid, void or illegal by any arbitrator or court of competent jurisdiction, such provision shall be deemed severable from the remainder of this Agreement and shall in no way (a) affect, impair or invalidate any other covenant, condition or other provision contained in this Agreement or (b) affect or impair the validity, enforceability or legality of such provision in any other jurisdiction. If such condition, covenant or other provision shall be deemed invalid due to its scope or breadth, such covenant, condition or other provision shall be deemed valid to the maximum extent of the scope or breadth permitted by law or in equity (provided, however, that with respect to Section 7 only, the provisions of Section 7(e) shall control over this sentence).

14.    Successors and Assigns. This Agreement, and all the terms and provisions hereof, shall be binding upon and shall inure to the benefit of the Parties and their respective heirs, legal representatives, successors and assigns.

15.    Voluntary Execution on Advice of Counsel. This Agreement in all respects has been voluntarily and knowingly executed by the Parties. The Parties specifically represent that they have thoroughly discussed all aspects of this Agreement with their attorneys to the extent they so desired, that they have carefully read and fully understand all of the provisions of this Agreement, and that they are voluntarily entering into this Agreement.

16.    No Waiver. No failure on the part of any Party to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part of any Party in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. No Party shall be deemed to have waived any claim arising out of this Agreement, or any power, right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a written instrument duly executed and delivered on behalf of the waiving Party; and any such waiver shall not be applicable or have any effect except in the specific instance in which it is given.

17.    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and performed in such state and without regard to the conflicts or choice of law provisions thereof that would give rise to the application of the domestic substantive law of any other jurisdiction.

18.    Headings. The descriptive headings in this Agreement have been inserted for convenience only and shall not be deemed to limit or otherwise affect the construction of any provision thereof or hereof.

19.    Notices. Any notice, demand, request or communication of any kind required or permitted hereunder shall be in writing and shall be deemed sufficiently served if sent by (i) hand delivery (with receipt acknowledged), (ii) reputable overnight carrier, or (iii) United States registered or certified mail, postage prepaid, return receipt requested to the applicable Party at the address set forth below or at such other address as each Party may designate from time to time by written notice to the other Party. Any such notice, demand, request or communication shall be deemed to have been duly given or served on the date of delivery, if delivered by hand, or on the date shown on the return receipt or other evidence of delivery, if mailed or sent by overnight carrier.

		
	If to Company:
	Quality Systems, Inc.

Attention: General Counsel
18111 Von Karman, Ste. 600
Irvine, California 92612
If to Executive:        Daniel Morefield

20.    General Interpretation. The terms of this Agreement have been prepared by the Parties to this Agreement, and the language used in this Agreement shall be deemed to be the language chosen by the Parties to express their mutual intent. This Agreement shall be construed without regard to any presumption or rule requiring construction against the Party causing such instrument or any portion thereof to be drafted, or in favor of the Party receiving a particular benefit under this Agreement.

21.    Counterparts. This Agreement may be executed in any number of counterparts and by different Parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. This Agreement may be executed and delivered by facsimile, “.pdf” format or in another electronic format and the Parties agree that such executed and delivered facsimile, “.pdf” or other electronic copy shall have the same force and effect as delivery of an original document with original signatures.

22.    Entire Agreement. This Agreement constitutes the entire integrated agreement between the Parties regarding the subject matter hereof and supersedes any and all other agreements, understandings, negotiations, or discussions, either oral or in writing, express or implied, regarding the subject matter hereof. The Parties each acknowledge that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by them, or anyone acting on their behalf, which are not embodied in this Agreement, that they have not executed this Agreement in reliance on any such representation, inducement, promise, agreement or warranty, and that no representation, inducement, promise, agreement or warranty not contained in this Agreement including, without limitation, any purported supplements, modifications, waivers or terminations of this Agreement, shall be valid or binding unless executed in writing by both of the Parties.

23.    Amendment. This Agreement may not be amended, supplemented or modified except by a written instrument executed by each Party.

24.    Signature and Revocation Periods. The Company advises Executive as follows: (a) this Agreement does not waive rights or claims that may arise after Executive executes it, (b) Executive has twenty-one (21) days to consider this Agreement and whether he will enter into it, although Executive may sign it sooner than that if he so desires, (c) that he should consult an attorney before executing this Agreement, and (d) that he may revoke this Agreement at any time within seven (7) days after executing it by providing written notice to the General Counsel of the Company in accordance with Section 19 above. This Agreement shall not become effective or enforceable until after the revocation period set forth in subsection (d) immediately above has expired provided that Executive has not previously revoked this Agreement (“Effective Date”).

25.    Non-Admission. The Parties acknowledge and agree that nothing in this Agreement shall be construed as an admission of any wrongdoing or liability by Executive, the Company, any subsidiary of the Company or any other Company Release.

[Signature Page Follows]
 

IN WITNESS WHEREOF, the undersigned have executed this Separation Agreement and General Release on the dates set forth hereinafter.
	
		
	Dated: March 31, 2017 

Dated: March 31, 2017 

	/s/ Daniel J. Morefield
Daniel J. Morefield

Quality Systems, Inc.
/s/ Jocelyn A. Leavitt
Jocelyn A. Leavitt
EVP, General Counsel & Secretary

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