Document:

ex102jwagmt

      EMPLOYMENT AGREEMENT  THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into by and between Julie  Whalen (“Executive”) and Expedia, Inc., a Washington corporation (the “Company”), and is effective  as of September 26, 2022 (the “Effective Date”).   WHEREAS, the Company desires to establish its right to the services of Executive, in the  capacity described below, on the terms and conditions hereinafter set forth, and Executive is willing to  accept such employment on such terms and conditions.  NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth,  Executive and the Company have agreed and do hereby agree as follows:  1. EMPLOYMENT. The Company agrees to employ Executive and that during such  employment Executive shall serve as Executive Vice President and Chief Financial Officer of Parent;  Executive accepts and agrees to such employment and service. During Executive’s employment with the  Company hereunder, Executive shall perform all services and acts necessary or advisable to fulfill the  duties and responsibilities as are commensurate and consistent with Executive’s position and shall render  such services on the terms set forth herein. During Executive’s employment with the Company, Executive  shall report directly to the Chief Executive Officer of Parent (hereinafter referred to as the “Reporting  Officer”). Executive shall have such powers and duties with respect to the Company as may reasonably  be assigned to Executive by the Reporting Officer, to the extent consistent with Executive’s position and  status. Except as otherwise approved by the Reporting Officer, Executive shall devote all of Executive’s  working time, attention and efforts to the Company and perform the duties of Executive’s position in  accordance with the Company’s policies as in effect from time to time. Executive’s principal place of  employment shall be Executive’s home office in California, except for travel to other locations as may  be necessary to fulfill the Executive’s duties and responsibilities hereunder.  2. TERM OF AGREEMENT. The term of employment (“Term”) under this Agreement  shall commence effective as of the Effective Date and shall continue until terminated in accordance with  the provisions of Section 1 of the Standard Terms and Conditions, attached hereto as Exhibit A (the  “Standard Terms and Conditions”).   3. COMPENSATION.  a. BASE SALARY. During the Term, the Company shall pay Executive an  annualized base salary of $950,000.00 (the “Base Salary”), payable in equal biweekly installments or  otherwise in accordance with the Company’s payroll practice as in effect from time to time. For all  purposes under this Agreement, the term “Base Salary” shall refer to Base Salary as in effect from time  to time. Executive will be entitled to an annual review of the Base Salary with an increase to the Base  Salary at the sole discretion of the Board of Directors of the Company or its Compensation Committee.    b. BENEFITS.  i. Retirement and Welfare Plans. During the Term and through the date of  termination of Executive’s employment with the Company for any reason, Executive shall be  entitled to participate in any welfare, health and life insurance and pension benefit plans as may  be adopted from time to time by the Company on the same basis as that provided to similarly  situated executives of the Company generally, consistent with the terms of such plans.  

 

2      ii. Reimbursement for Business Expenses. During the Term, the Company  shall reimburse Executive for all reasonable and necessary expenses incurred by Executive in  performing Executive’s duties for the Company, on the same basis as similarly situated  executives of the Company generally and in accordance with the Company’s policies as in effect  from time to time.  iii. Vacation. During the Term, Executive shall be entitled to annual paid  vacation in accordance with the plans, policies, programs and practices of the Company  applicable to similarly situated executives of the Company generally.  c. EQUITY INCENTIVE COMPENSATION.    i. Initial Equity Award. As soon as practicable following the Effective  Date, the Company will recommend to the Compensation Committee (the “Compensation  Committee”) of the Board of Directors of Expedia Group, Inc., a Delaware corporation  (“Parent”) that the Executive be granted a number of Parent restricted stock units with an  aggregate value of $17,500,000, calculated using the 30-day average closing price of Parent  common stock as of the last day of the month prior to the Effective Date (the “RSUs”, and such  award, the “Initial Equity Award”), subject to the Executive’s continued employment with the  Company through the grant date. Except as otherwise expressly provided herein, the Initial  Equity Award shall vest in full on the fourth anniversary of the Effective Date, subject to the  Executive’s continued employment through the vesting date and such other conditions set forth  in the applicable award agreement or the Incentive Plan (as defined below).    ii. Annual Equity Awards.    A. Beginning in the 2023 calendar year and in each subsequent calendar  year thereafter during the Term, the Company will recommend to the Compensation Committee  that the Executive be granted a number of RSUs with an aggregate value of $6,000,000 per  calendar year (each, an “Annual Equity Award”), calculated using the then-standard conversion  methodology for annual equity grants to similarly situated senior executives, subject to the  Executive’s continued employment with the Company through the applicable grant date. The  Company’s current practice, subject to change, is that one-half of the RSUs conferred under the  Annual Equity Award shall be subject to time-based vesting and the remaining one-half of the  RSUs conferred under the Annual Equity Award shall be subject to performance-based vesting  (and time-vesting) (such performance-based RSUs, “PSUs”), in each case, as determined by the  Compensation Committee at the time of grant.  Except as set forth below with regard to the Initial  Equity Award and PSUs granted to the Executive in the 2024 calendar year (the “2024 Annual  PSU Award”), the additional terms and conditions of the Initial Equity Award and any Annual  Equity Awards (including the vesting schedule and, if applicable, the performance conditions)  will, in each case, be on the same terms and conditions as those applicable to similarly situated  senior executives generally, and will be determined by the Compensation Committee and set  forth in a separate award agreement in a form prescribed by Parent and consistent with the  provisions of this Agreement, and will be governed in all respects by the terms and conditions of  Parent’s Fifth Amended and Restated 2005 Stock and Annual Incentive Plan, as amended (the  “Incentive Plan”), and the applicable award agreement.    B. In addition, the Company will recommend to the Compensation  Committee that in the event the Executive resigns for any reason other than for Good Reason (as  defined below), then (A) with respect to the 2024 Annual PSU Award only, that such award shall  (I) in the event such resignation occurs after the fourth anniversary of the Effective Date, remain  

 

3      outstanding following such termination and shall be eligible to vest as to the entire award, without  any service-based proration applied thereto, and shall vest to the extent the applicable  performance goals are actually attained over the full performance period in accordance with the  applicable award agreement, and subsequently settle following such performance period in  accordance with the timing and other requirements set forth in such award agreement (but no  later than March 15th of the year next following the year in which such performance period ends),  subject to any required delay as provided in Section 1(d)(iv) of the Standard Terms and  Conditions (as applicable), or (II) in the event such resignation occurs after the grant date of the  2024 Annual PSU Award and on or before the fourth anniversary of the Effective Date, remain  outstanding following such termination and eligible to vest as to a portion of the award  determined by multiplying the number of PSUs earned based on actual attainment of the  applicable performance goals over the full performance period by a fraction, the numerator of  which is the number of full calendar quarters elapsed (inclusive of the calendar quarter in which  the award is granted, but, for clarity, in no event greater than the number of full calendar quarters  comprising the performance period) during the applicable performance period through and  including the applicable date of termination and the denominator of which is twelve (i.e., actual  performance vesting pro-rated based on a quarterly time-vest schedule over the performance  period), and subsequently settle following such performance period in accordance with the timing  and other requirements set forth in such award agreement (but in no event later than March 15th  of the year next following the year in which such performance period ends), subject to any  required delay as provided in Section 1(d)(iv) of the Standard Terms and Conditions (as  applicable) (e.g., if the 2024 Annual PSU Award is granted with a target payout of 180 PSUs that  are eligible to vest over a three-year performance period commencing 1 year prior to the date of  termination and target performance was attained over the full performance period, then at the end  of the performance period, the Executive would earn 60 PSUs (180 PSUs *  4/12), which would  be settled in accordance with the timing and other requirements under the applicable award  agreement but no later than March 15th of the year next-following the end of the performance  period, subject to any required delay as provided in Section 1(d)(iv) of the Standard Terms and  Conditions (as applicable)), and (B) with respect to the Initial Equity Award only, that such award  shall vest, for the purposes of this provision, to the extent the award would have vested had the  award vested quarterly pro rata (in equal installments) over its vesting period (that is, beginning  on the Effective Date and vesting every third month on the same day of the month as the Effective  Date, or the last day of the month if there is no corresponding day in such month), and  subsequently settle to the extent vested based on the foregoing proration under this subsection B  within 60 days following Executive’s resignation, subject to any required delay as provided in  Section 1(d)(iv) of the Standard Terms and Conditions.  Further, if any Change in Control (as  defined in the Incentive Plan) occurs and any of the 2024 Annual PSU Award and/or Initial  Equity Award (or portion thereof) remains outstanding as of immediately prior to such Change  in Control and would not be (1) assumed or continued by the surviving, continuing, successor, or  purchasing entity or parent thereof in such Change in Control on (x) economic terms that are the  same as or more favorable than (on a per-award basis) the economic terms conferred by such  award as in effect as of immediately prior to the Change in Control and (y) vesting terms that are  the same as or more favorable than (on a per-award basis) the vesting terms conferred by such  award as in effect as of immediately prior to the Change in Control, or (2) converted or substituted  by such entity or parent thereof in such Change in Control on (x) economic terms that are, in the  aggregate, the same as or more favorable than (on a per-award basis) the economic terms  conferred by such award as in effect as of immediately prior to the Change in Control and (y)  vesting terms that are, in the aggregate, the same as or more favorable than (on a per-award basis)  the vesting terms conferred by such award as in effect as of immediately prior to the Change in  Control, then, in any case, as of immediately prior to the Change in Control, any such award (or  portion thereof, as applicable) not so assumed, continued, converted, or substituted (as  

 

4      applicable) will accelerate vesting in full and all forfeiture and other restrictions on such award  will lapse, and such award subsequently will be settled in accordance with the timing and other  requirements set forth in the applicable award agreement.  4. NOTICES. All notices and other communications under this Agreement shall be in  writing and shall be deemed duly given (a) when sent by electronic mail or facsimile, on the date of  transmission to such recipient, (b) one (1) business day after being sent to the recipient by reputable  overnight courier service (charges prepaid), or (c) after being mailed to the recipient by first-class mail,  certified or registered with return receipt requested or hand delivery acknowledged in writing by the  recipient personally, and shall be deemed to have been duly given three days after mailing or immediately  upon duly acknowledged hand delivery to the respective persons named below:   If to the Company or Parent:   Expedia Group, Inc.  1111 Expedia Group Way W., Seattle, Washington 98119   Attention: Chief Legal Officer  If to Executive:   At the most recent address on record for Executive at the Company.   Either party may change such party’s address for notices by notice duly given pursuant hereto.  5. GOVERNING LAW; JURISDICTION. This Agreement and the legal relations thus  created between the parties hereto shall be governed by and construed under and in accordance with the  internal laws of the State of Washington without reference to the principles of conflicts of laws. Any and  all disputes between the parties which may arise pursuant to this Agreement will be heard and determined  before an appropriate federal court in Washington, or, if not maintainable therein, then in an appropriate  Washington state court. The parties acknowledge that such courts have jurisdiction to interpret and  enforce the provisions of this Agreement, and the parties consent to, and waive any and all objections  that they may have as to, personal jurisdiction and/or venue in such courts.  Further, the Executive  acknowledges and agrees that Executive was represented by counsel in determining to agree to the choice  of law, venue and other provisions contained herein.  6. COUNTERPARTS; INTEGRATION. This Agreement may be executed in several  counterparts, each of which shall be deemed to be an original but all of which together will constitute one  and the same instrument. Executive expressly understands and acknowledges that the Standard Terms  and Conditions attached hereto are incorporated herein by reference, deemed a part of this Agreement  and are binding and enforceable provisions of this Agreement. References to “this Agreement” or the use  of the term “hereof” shall refer to this Agreement and the Standard Terms and Conditions attached hereto,  taken as a whole. This Agreement and the Standard Terms and Conditions represent the entire agreement  and understanding between the parties as to the subject matter herein and supersede all prior or  contemporaneous agreements whether written or oral. No waiver, alteration or modification of any of the  provisions of this Agreement will be binding unless in writing and signed by Executive and a duly  authorized officer of the Company.   (Signature page follows.)    

 

  [Signature Page to Employment Agreement]  IN WITNESS WHEREOF, the Company has caused this Agreement to be executed and  delivered by its duly authorized officer and Executive has executed and delivered this Agreement.    “COMPANY”  EXPEDIA, INC.    By: /s/ Robert Dzielak   Name: Robert Dzielak  Title: Chief Legal Officer    Dated:  September 13, 2022    “EXECUTIVE”    /s/ Julie Whalen   Name: Julie Whalen    Dated:  September 13, 2022 

 

  Exhibit A-1  EXHIBIT A  STANDARD TERMS AND CONDITIONS  1. TERMINATION OF EXECUTIVE’S EMPLOYMENT.  (a) DEATH. Upon termination of Executive’s employment during the Term by  reason of Executive’s death, the Company shall pay Executive’s designated beneficiary or beneficiaries,  within 30 days of Executive’s death in a lump sum in cash, (i) Executive’s Base Salary from the date of  Executive’s death through the end of the month in which Executive’s death occurs and (ii) any Accrued  Obligations (as defined in Section 1(f) below) in a lump sum in cash. To the extent any incentive equity  or equity-linked award, are, in any case, outstanding as of the date of Executive’s death, such award(s)  will be treated in accordance with their terms, the applicable plan and award agreement.  (b) DISABILITY. If, as a result of Executive’s disability (as provided under  Section 409A(a)(2)(C) of the Internal Revenue Code of 1986, as amended (the “Code”), and Treas. Regs.  Section 1.409A-3(i)(4) and other official guidance issued thereunder) (a “Disability”), Executive shall  have been absent from the full-time performance of Executive’s duties with the Company for a period of  four consecutive months and, within 30 days after written notice is provided to Executive by the Company  (in accordance with Section 4 of the Agreement, above), Executive shall not have returned to the full- time performance of Executive’s duties, Executive’s employment under this Agreement may be  terminated by the Company for Disability. During any period prior to such termination during which  Executive is absent from the full-time performance of Executive’s duties with the Company due to  Disability, the Company shall continue to pay Executive’s Base Salary at the rate in effect at the  commencement of such period of Disability, offset by any amounts payable to Executive under any  disability insurance plan or policy provided by the Company. Upon such termination of Executive’s  employment due to Disability, the Company shall pay Executive within 30 days of such termination (i)  Executive’s Base Salary through the end of the month in which Executive’s termination of employment  for Disability occurs in a lump sum in cash, offset by any amounts payable to Executive under any  disability insurance plan or policy provided by the Company; and (ii) any Accrued Obligations in a lump  sum in cash. To the extent any incentive equity or equity-linked award, are, in any case, outstanding as  of the date of Executive’s Disability, such award(s) will be treated in accordance with their terms, the  applicable plan and award agreement.   (c) TERMINATION FOR CAUSE; RESIGNATION WITHOUT GOOD  REASON. The Company may terminate Executive’s employment under this Agreement with or without  Cause at any time and Executive may resign under this Agreement with or without Good Reason (as  defined below) at any time. As used herein, “Cause” shall mean: (i) the plea of guilty or nolo contendere  to, conviction for, or the commission of, a felony offense by Executive; provided, however, that after  indictment, the Company may suspend Executive from the rendition of services, but without limiting or  modifying in any other way the Company’s obligations under this Agreement; (ii) a material breach by  Executive of a fiduciary duty owed to the Company or any of its subsidiaries; (iii) a material breach by  Executive of this Agreement, including without limitation any of the restrictive covenants made by  Executive in Section 2 below; (iv) the willful or gross neglect by Executive of the material duties required  by this Agreement; or (v) a knowing and material violation by Executive of any written Company policy  pertaining to ethics, legal compliance, wrongdoing or conflicts of interest that, in the case of the conduct  described in clauses (iii), (iv) or (v) above, if curable, is not cured by Executive within 30 days after  Executive is provided with written notice thereof. Other than as set forth in Section 3(c)(ii) of the  Agreement with respect to the Initial Equity Award and the 2024 Annual PSU Award, upon Executive’s  (I) termination of employment by the Company for Cause during the Term or (II) resignation without  Good Reason during the Term, in any case, this Agreement shall terminate without further obligation by  the Company, except for the payment of any Accrued Obligations in a lump sum in cash within 30 days  

 

  Exhibit A-2  of such termination.  (d) TERMINATION BY THE COMPANY OTHER THAN FOR DEATH,  DISABILITY OR CAUSE; RESIGNATION BY EXECUTIVE FOR GOOD REASON.   (i) Upon termination of Executive’s employment during the Term by the  Company without Cause (other than for death or Disability) or by Executive for Good Reason,  then:  (A) the Company shall continue to pay Executive the Base Salary for  12 months following termination in equal biweekly installments in accordance with the  Company’s payroll practice as in effect from time to time (such period, the “Salary  Continuation Period” and, such payments, the “Salary Severance”), and the Company shall  pay Executive in a lump sum within 30 days of the effective date of the Release (as defined  below) (without regard to whether Executive actually elects COBRA coverage) a cash amount  equal to the monthly premiums during the Salary Continuation Period with respect to COBRA  continuation coverage under the Company’s group health plans in existence on the date of  termination, and at the level of coverage Executive participated in as of the date of termination;  (B) the Company shall pay Executive within 30 days of the date of such  termination (or such earlier date as may be required by applicable law) any Accrued Obligations  in a lump sum in cash;   (C) except as otherwise provided in any applicable individual award  agreement providing for a greater benefit than as set forth in this subsection (C), and except as  otherwise provided herein with respect to the Initial Equity Award and the 2024 Annual PSU  Award (which Initial Equity Award and 2024 Annual PSU Award shall, for clarity, not be subject  to this subsection (C)), each incentive equity or equity-linked award that is outstanding and  unvested at the time of such termination but which would, but for a termination of employment,  have vested during the 12 months following such termination (such period, the “Equity  Acceleration Period”) shall vest (and with respect to awards other than stock options and stock  appreciation rights, settle) as of the date of such termination of employment (or, if later with  respect to any performance award, at the end of the applicable performance period as provided  below); provided that any outstanding award with a vesting schedule that would, but for a  termination of employment, have resulted in a smaller percentage (or none) of the award being  vested through the end of such Equity Acceleration Period than if it vested annually pro rata over  its vesting period shall, for purposes of this provision, be treated as though it vested annually pro  rata over its vesting period (e.g., if 100 RSUs were granted 2.7 years prior to the date of the  termination and vested pro rata on each of the first five anniversaries of the grant date and 100  RSUs were granted 1.7 years prior to the date of termination and vested on the fifth anniversary  of the grant date, then on the date of termination 20 RSUs from the first award and 40 RSUs from  the second award would vest and settle); provided further that any amount that would vest under  this provision but for the fact that outstanding performance conditions have not been satisfied  shall vest (and with respect to awards other than stock options and stock appreciation rights,  settle) only if, and at such point as, such performance conditions are satisfied over the full  performance period applicable to such performance conditions (e.g., if PSUs were granted with  target payout of 100 PSUs eligible to vest over a three-year total performance period commencing  1.4 years prior to the date of termination and target performance was attained over the full  performance period, then at the end of the performance period, the Executive would earn 67 PSUs  (2 / 3 years * 100 PSUs), which would be settled no later than March 15th of the year next- following the end of the performance period); provided further that to the extent that any such  equity awards constitutes “non-qualified deferred compensation” within the meaning of Section  

 

  Exhibit A-3  409A (as defined below), such awards shall vest, but only settle in accordance with their terms  (it being understood that it is intended that no equity awards outstanding as of the date of this  Agreement constitutes “non-qualified deferred compensation” within the meaning of Section  409A);   (D) any then vested options held by Executive (including options vesting as  a result of (C) above) granted by Parent to purchase Parent equity, shall remain exercisable  through the date that is 18 months following the date of such termination or, if earlier, through  the original scheduled expiration date of such options; and  (E) (1) with respect to the Initial Equity Award, 100% of the Initial Equity  Award shall vest (to the extent then-unvested) and shall settle within 60 days following such  termination, subject to any required delay as provided in Section 1(d)(iv) below (as applicable),  and (2) with respect to the 2024 Annual PSU Award, such award shall remain outstanding  following such termination and eligible to vest as to the entire award, without any service-based  proration applied thereto, and shall vest to the extent the applicable performance goals are  actually attained over the full performance period, and shall settle following such performance  period in accordance with the timing and other requirements set forth in such award agreement  (but no later than March 15th of the year next following the year in which such performance  period ends), subject to any required delay as provided in Section 1(d)(iv) below (as applicable).    The severance payments and benefits described above under this Section 1(d)(i) shall be referred  to herein as the “Severance Payments & Benefits.”    (ii) The payment to Executive of the Severance Payments & Benefits is  contingent upon (i) Executive’s compliance with the offset provisions in Section 1(e) below, (ii)  Executive’s compliance with the restrictive covenants set forth in Section 2 below, and (iii)  Executive signing and not revoking a separation agreement and release of claims in favor of the  Company and its affiliates in a form provided by the Company (which, for clarity, shall not bind  Executive to any new noncompetition or nonsolicitation covenants beyond any such covenants  otherwise applicable (if any) and shall contain customary carve-outs from the release for  indemnification, rights as an equity holder and claims that cannot be waived under applicable  law) (the “Release”) upon Executive’s termination of employment that becomes effective no  later than sixty (60) days following Executive’s employment termination date (such deadline, the  “Release Deadline”).  The Company shall deliver the Release to Executive no later than four (4)  business days following the termination of Executive’s employment, except as otherwise  mutually agreed between the parties hereto. If the Release does not become effective and  irrevocable by the Release Deadline, Executive will forfeit any rights to the Severance Payments  & Benefits.  In no event will Severance Payments & Benefits be paid or provided until the Release  actually becomes effective and irrevocable. Upon the Release becoming effective and  irrevocable, any payments delayed from the date Executive terminates employment through the  effective date of the Release will be payable in a lump sum without interest as soon as  administratively practicable after the effective date of the Release and all other amounts will be  payable in accordance with the payment schedule applicable to each payment or benefit. Any  Severance Payments & Benefits that would be considered Deferred Payments (as defined below)  will be paid on, or, in the case of installments, will not commence until, the sixtieth (60th) day  following Executive’s separation from service (within the meaning of Section 409A), or, if later,  the Delayed Initial Payment Date (as defined below). Any installment payments that would have  been made to Executive during the sixty (60)-day period immediately following Executive’s  separation from service, but for the preceding sentence, will be paid to Executive on the sixtieth  (60th) day following Executive’s separation from service and the remaining payments shall be  

 

  Exhibit A-4  made as provided in this Agreement.  (iii) As used herein, “Good Reason” shall mean the occurrence of any of the  following without Executive’s prior written consent: (A) the Company’s material breach of any  material provision of this Agreement, (B) the material reduction in Executive’s title, duties or  reporting responsibilities or level of responsibilities as Executive Vice President and Chief  Financial Officer of Parent, excluding for this purpose any such reduction that is an isolated and  inadvertent action not taken in bad faith or that is authorized pursuant to this Agreement, (C) the  Company requires that Executive make a material change in the location of her principal work  location, or (D) the material reduction in Executive’s Base Salary, provided that in no event shall  Executive’s resignation be for “Good Reason” unless (x) an event or circumstance set forth in  clauses (A) through (D) shall have occurred and Executive provides the Company with written  notice thereof within 30 days after Executive has knowledge of the occurrence or existence of  such event or circumstance, which notice specifically identifies the event or circumstance that  Executive believes constitutes Good Reason, (y) the Company fails to correct the circumstance  or event so identified within 30 days after receipt of such notice, and (z) Executive resigns within  90 days after the date of delivery of the notice referred to in clause (x) above.  (iv) Notwithstanding the preceding provisions of this Section 1(d), in the  event that Executive is a “specified employee” (within the meaning of Section 409A) on the date  of termination of Executive’s employment with the Company (a “Specified Employee”) and the  Severance Payments & Benefits to be paid within the first six months following such date (the  “Initial Payment Period”) exceed the amount referenced in Treas. Regs. Section 1.409A-  1(b)(9)(iii)(A) (the “Limit”), then (1) any portion of the Severance Payments & Benefits that is  a “short-term deferral” within the meaning of Treas. Regs. Section 1.409A-1(b)(4)(i) shall be  paid at the times set forth in this Section 1(d), (2) any portion of the Severance Payments &  Benefits (in addition to the amounts contemplated by the immediately preceding clause (1)) that  is payable during the Initial Payment Period that does not exceed the Limit shall be paid at the  times set forth in Section 1(d) as applicable, (3) any portion of the Severance Payments &  Benefits that exceeds the Limit and is not a “short-term deferral” (and would have been payable  during the Initial Payment Period but for the Limit) (the “Deferred Payments”) shall be paid,  with Interest (as defined below), on the first business day of the first calendar month that begins  after the six-month anniversary of Executive’s “separation from service” (within the meaning of  Section 409A) (the “Delayed Initial Payment Date”) and (4) any portion of the Severance  Payments & Benefits that is payable after the Initial Payment Period shall be paid at the times set  forth in this Section 1(d). In addition, in the event that Executive is a Specified Employee, any  payments due under the Initial Equity Award and 2024 Annual PSU Award (and any other equity  awards to the extent that such awards constitute “nonqualified deferred compensation”) in  connection with the termination of Executive’s employment with the Company otherwise  payable within the Initial Payment Period, to the extent necessary to comply with Section 409A,  shall be paid, with Interest, on the Delayed Initial Payment Date. For purposes of this Agreement,  “Interest” shall mean interest at the applicable federal rate provided for in Section 7872(f)(2)(A)  of the Code, from the date on which payment would otherwise have been made but for any  required delay through the date of payment.  (e) OFFSET. If Executive obtains other employment during the Salary Continuation  Period, any payments to be made to Executive under Section 1(d)(i)(A) above relating to the Salary  Severance after the date such employment is secured shall be offset by the amount of compensation  earned by Executive from such employment. For purposes of this Section 1(e), Executive shall have an  obligation to inform the Company regarding Executive’s employment status following termination and  during the Salary Continuation Period, but shall have no affirmative duty to seek alternate employment.  

 

  Exhibit A-5  (f) ACCRUED OBLIGATIONS. As used in this Agreement, “Accrued  Obligations” shall mean the sum of (i) any portion of Executive’s accrued and earned but unpaid Base  Salary through the date of death or termination of employment for any reason, as the case may be; (ii)  any compensation previously earned but deferred by Executive (together with any interest or earnings  thereon) that has not yet been paid and that is not otherwise paid at a later date pursuant to any deferred  compensation arrangement of the Company to which Executive is a party, if any (provided, that any  election made by Executive pursuant to any deferred compensation arrangement that is subject to Section  409A regarding the schedule for payment of such deferred compensation shall prevail over this Section  1(f) to the extent inconsistent herewith); and (iii) other than in the event of Executive’s resignation  without Good Reason or termination by the Company for Cause (except as required by applicable law),  any portion of Executive’s accrued but unpaid vacation pay through the date of death or termination of  employment, as the case may be.  (g) OTHER BENEFITS. Upon any termination of Executive’s employment during  the Term, Executive shall remain entitled to receive any vested benefits or amounts that Executive is  otherwise entitled to receive under any plan, policy, practice or program of, or any other contract or  agreement with, the Company in accordance with the terms thereof (other than any such plan, policy,  practice or program of the Company that provides benefits in the nature of severance or continuation  pay).  2. CONFIDENTIAL INFORMATION; NON-SOLICITATION AND  PROPRIETARY RIGHTS.   (a) CONFIDENTIALITY. Executive acknowledges that while employed by the  Company, Executive will occupy a position of trust and confidence. Executive shall not, except as is  appropriate to perform Executive’s duties hereunder or as required by applicable law, disclose to others,  use, copy, transmit, reproduce, summarize, quote or make commercial, whether directly or indirectly, any  Confidential Information. Executive will also take reasonable steps to safeguard such Confidential  Information and prevent its loss, theft, or inadvertent disclosure to third persons. This Section 2 shall  apply to Confidential Information acquired by Executive whether prior or subsequent to the execution of  this Agreement. “Confidential Information” shall mean information about the Company or any of its  subsidiaries or affiliates (which has value in or to the Company’s or such subsidiaries’ or affiliates’  business which is not generally known and which the Company or such subsidiaries or affiliates wish to  maintain as confidential), and their respective clients and customers (which the Company is required to  maintain and treat as confidential or proprietary information of such), including (without limitation) any  proprietary knowledge, trade secrets, data, formulae, information and client and customer lists and all  papers, resumes, and records (including computer records) of the documents containing such Confidential  Information, in each case to the extent learned or otherwise obtained by Executive in connection with  Executive’s employment by, or performance of services for, the Company, provided that Confidential  Information shall not mean any such information that is previously disclosed to, or in possession of, the  public (or becomes publicly known or made generally available after disclosure to Executive in the course  of her employment) other than by reason of Executive’s breach of this Agreement, or is already in  Executive’s rightful possession at the time of disclosure to Executive in the course of her employment.  Notwithstanding the foregoing provisions, if Executive is required to disclose any such confidential or  proprietary information pursuant to applicable law or a subpoena or court order, Executive shall promptly  notify the Company in writing of any such requirement so that the Company may seek an appropriate  protective order or other appropriate remedy or waive compliance with the provisions hereof. Executive  shall reasonably cooperate with the Company to obtain such a protective order or other remedy. If such  order or other remedy is not obtained prior to the time Executive is required to make the disclosure, or  

 

  Exhibit A-6  the Company waives compliance with the provisions hereof, Executive shall disclose only that portion of  the confidential or proprietary information which she is advised by counsel that she is legally required to  so disclose. Executive acknowledges that such Confidential Information is specialized, unique in nature  and of great value to the Company and its subsidiaries or affiliates, and that such information gives the  Company and its subsidiaries or affiliates a competitive advantage. Executive agrees to deliver or return  to the Company, at the Company’s request at any time or upon termination of Executive’s employment  or as soon thereafter as possible, all documents, computer tapes and disks, records, lists, data, drawings,  prints, notes and written information (and all copies thereof) furnished by the Company and its  subsidiaries or affiliates or prepared by Executive in the course of Executive’s employment by the  Company and its subsidiaries or affiliates. As used in this Agreement, “affiliates” shall mean any  company controlled by, controlling or under common control with the Company (including, for clarity,  Parent).  (b) NON-SOLICITATION OF BUSINESS PARTNERS. During the Term,  Executive will not, at any time, directly or indirectly, on Executive’s own behalf or on behalf of any other  person or entity, use Confidential Information or any trade secret of the Company or its affiliates, without  the prior written consent of the Company, directly or indirectly, to persuade or encourage or attempt to  persuade or encourage any business partners or business affiliates of the Company or its subsidiaries or  affiliates to cease doing business with the Company or any of its subsidiaries or affiliates or to engage in  any business competitive with the Company or its subsidiaries or affiliates on its own or with any  competitor of the Company or its subsidiaries or affiliates.  (c) PROPRIETARY RIGHTS; ASSIGNMENT.   (i) All Executive Developments (as defined below) shall be made for hire  by Executive for the Company or any of its subsidiaries or affiliates. “Executive Developments”  means any idea, discovery, invention, design, method, technique, improvement, enhancement,  development, computer program, machine, algorithm or other work or authorship, in each case,  (i) that (A) relates to the business or operations of the Company or any of its subsidiaries or  affiliates, or (B) results from any undertaking assigned to Executive or work performed by  Executive for or on behalf of the Company or any of its subsidiaries or affiliates, whether created  alone or with others, during or after working hours and (ii) that is conceived or developed by  Executive during the Term. All Confidential Information and all Executive Developments shall  remain the sole property of the Company or any of its subsidiaries or affiliates. Executive shall  acquire no proprietary interest in any Confidential Information or Executive Developments  developed or acquired during the Term. To the extent Executive may, by operation of law or  otherwise, acquire any right, title or interest in or to any Confidential Information or Executive  Development, Executive hereby assigns to the Company all such proprietary rights. Executive  shall, both during and after the Term, upon the Company’s request, promptly execute and deliver  to the Company all such assignments, certificates and instruments, and shall promptly perform  such other acts, as the Company may from time to time in its reasonable discretion deem  necessary or desirable to evidence, establish, maintain, perfect, enforce or defend the Company’s  rights in Confidential Information and Executive Developments.  (ii) Executive acknowledges that she is not obligated to assign any  Executive Development that qualified fully under the provisions of the Revised Code of  Washington Section 49.44.140 (“RCW 49.44.140”).   NOTICE OF REVISED CODE OF WASHINGTON SECTION 49.44.140:  

 

  Exhibit A-7  Any provision in this Agreement for assignment of my right,  title, and interest in an Invention to the Company does not  apply to an Invention for which no equipment, supplies,  facilitates, or trade secret information of the Company was  used and which was developed entirely on my own time, unless  (a) the invention relates (i) directly to the business of the  Company, or (ii) to the Company’s actual or demonstrably  anticipated research or development, or (b) the invention  results from any work I perform for the Company.  At the Company’s request, Executive will promptly disclose to the Company all  Executive Developments to determine the status of the Executive Development under this  Section. The Company may disclose such Executive Developments to the Department of  Employment Security.  (d) COMPLIANCE WITH POLICIES AND PROCEDURES. During the Term,  Executive shall adhere to the policies and standards of professionalism set forth in the Company’s Policies  and Procedures as they may exist from time to time. Executive hereby consents to, and expressly  authorizes, the Company’s use of Executive’s name and likeness in trade publications and other media  for trade or commercial purposes.  (e) REMEDIES FOR BREACH. Executive expressly agrees and understands that  the Company will have 30 days from receipt of Executive’s notice of any alleged breach by the Company  of this Agreement to cure any such breach. Executive expressly agrees and understands that the remedy  at law for any breach by Executive of this Section 2 will be inadequate and that damages flowing from  such breach are not usually susceptible to being measured in monetary terms. Accordingly, it is  acknowledged that upon Executive’s violation or threatened violation of any provision of this Section 2,  the Company shall be entitled to obtain from any court of competent jurisdiction immediate injunctive  relief and obtain a temporary order restraining any threatened or further breach as well as an equitable  accounting of all profits or benefits arising out of such violation or threatened violation without the  requirement of posting any bond. Nothing in this Section 2 shall be deemed to limit the Company’s  remedies at law or in equity for any breach by Executive of any of the provisions of this Section 2, which  may be pursued by or available to the Company.  (f) SURVIVAL OF PROVISIONS. The obligations contained in this Section 2  shall, to the extent provided in this Section 2, survive the termination of Executive’s employment with  the Company and, as applicable, shall be fully enforceable thereafter in accordance with the terms of this  Agreement. If it is determined by a court of competent jurisdiction in any state that any restriction in this  Section 2 is excessive in duration or scope or is unreasonable or unenforceable under the laws of that  state, it is the intention of the parties that such restriction may be modified or amended by the court to  render it enforceable to the maximum extent permitted by the law of that state.  3. TERMINATION OF PRIOR AGREEMENTS. This Agreement (including these  Standard Terms and Conditions) constitutes the entire agreement between the parties and terminates and  supersedes any and all prior and contemporaneous agreements and understandings (whether written or  oral) between the parties, with respect to the subject matter of this Agreement. Executive acknowledges  and agrees that neither the Company nor anyone acting on its behalf has made, and is not making, and in  executing this Agreement, the Executive has not relied upon, any representations, promises or  inducements except to the extent the same is expressly set forth in this Agreement.   

 

  Exhibit A-8  4. PROTECTED ACTIVITY NOT PROHIBITED.  Executive understands that nothing  in this Agreement shall in any way limit or prohibit Executive from engaging in any Protected Activity.  For purposes of this Agreement, “Protected Activity” means filing a charge or complaint with, reporting  possible violations of applicable law to, or otherwise communicating or cooperating with or participating  in any investigation or proceeding that may be conducted by any federal, state or local government agency  or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity  Commission, the Occupational Safety and Health Administration, and the National Labor Relations  Board (“Government Agencies”) or making other disclosures that are protected under the whistleblower  provisions of applicable law or regulation. Executive understands that in connection with such Protected  Activity, Executive is permitted to disclose documents or other information as permitted by law, and  without giving notice to, or receiving authorization from, the Company. Notwithstanding, in making any  such disclosures or communications, Executive agrees to take all reasonable precautions to prevent any  unauthorized use or disclosure of any information that may constitute Confidential Information to any  parties other than the Government Agencies. Executive further understands that “Protected Activity” does  not include the disclosure of any Company attorney-client privileged communications.   5. ASSIGNMENT; SUCCESSORS. This Agreement is personal in its nature and none of  the parties hereto shall, without the consent of the others, assign or transfer this Agreement or any rights  or obligations hereunder; provided, that, in the event of a merger, consolidation, transfer, reorganization,  or sale of all, substantially all or a substantial portion of, the assets of the Company with or to any other  individual or entity, this Agreement shall, subject to the provisions hereof, be binding upon and inure to  the benefit of the Company’s successor in interest in such transaction, and such successor shall discharge  and perform all the promises, covenants, duties, and obligations of the Company hereunder, and all  references herein to the “Company” shall refer to such successor.  6. TAXES; WITHHOLDING. The Company shall make such deductions and withhold  such amounts from each payment and benefit made or provided to Executive hereunder, as may be  required from time to time by applicable law, governmental regulation or order. Without limiting the  foregoing, to the extent that any FICA tax withholding obligations arise in connection with any of  Executive’s RSUs or PSUs prior to the date on which such RSUs or PSUs become payable to Executive,  then the Company may accelerate the payment of a number of RSUs or PSUs (as applicable) sufficient  to satisfy (but not in excess of) such tax withholding obligations and any tax withholding obligations  associated with such accelerated payment, the Company may withhold such amounts in satisfaction of  such withholding obligations, and any such RSUs and PSUs so withheld shall be treated as vested and  having been paid to Executive. The Company cannot and has not guaranteed any particular tax result for  payments under this Agreement. Executive shall be solely responsible for Executive’s costs and taxes  incurred for any payments to Executive under this Agreement.   7. HEADING REFERENCES. Section headings in this Agreement are included herein  for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.  References to “this Agreement” or the use of the term “hereof” shall refer to these Standard Terms and  Conditions and the Agreement to which this Exhibit A is attached, taken as a whole.  8. WAIVER; MODIFICATION. Failure to insist upon strict compliance with any of the  terms, covenants, or conditions hereof shall not be deemed a waiver of such term, covenant, or condition,  nor shall any waiver or relinquishment of, or failure to insist upon strict compliance with, any right or  power hereunder at any one or more times be deemed a waiver or relinquishment of such right or power  at any other time or times. This Agreement shall not be modified in any respect except by a writing  executed by each party hereto.  

 

  Exhibit A-9  9. SEVERABILITY. In the event that a court of competent jurisdiction determines that  any portion of this Agreement is in violation of any law or public policy, only the portions of this  Agreement that violate such law or public policy shall be stricken. All portions of this Agreement that do  not violate any statute or public policy shall continue in full force and effect. Further, any court order  striking any portion of this Agreement shall modify the stricken terms as narrowly as possible to give as  much effect as possible to the intentions of the patties under this Agreement.  10. INDEMNIFICATION. The Company shall indemnify and hold Executive harmless for  acts and omissions in Executive’s capacity as an officer, director or employee of the Company to the  maximum extent permitted under applicable law; provided, however, that neither the Company, nor any  of its subsidiaries or affiliates, shall indemnify Executive for any losses incurred by Executive as a result  of acts described in Section 1(c) above.  11. SECTION 409A. The Agreement is intended to comply with the requirements of Section  409A of the Code and Department of Treasury Regulations and other interpretative guidance issued  thereunder (collectively, “Section 409A”) or an exemption or exclusion therefrom; any ambiguities or  ambiguous terms under this Agreement will be interpreted in accordance with such intent; and, with  respect to amounts that are subject to Section 409A, shall in all respects be administered in accordance  with Section 409A. Each payment under this Agreement shall be treated as a separate payment for  purposes of Section 409A. In no event may Executive, directly or indirectly, designate the calendar year  of any payment to be made under this Agreement. All reimbursements and in-kind benefits provided  under this Agreement that constitute deferred compensation within the meaning of Section 409A shall be  made or provided in accordance with the requirements of Section 409A, including, without limitation,  that (i) in no event shall reimbursements by the Company under this Agreement be made later than the  end of the calendar year next following the calendar year in which the applicable fees and expenses were  incurred, provided, that Executive shall have submitted an invoice for such fees and expenses at least 10  days before the end of the calendar year next following the calendar year in which such fees and expenses  were incurred; (ii) the amount of in-kind benefits that the Company is obligated to pay or provide in any  given calendar year shall not affect the in-kind benefits that the Company is obligated to pay or provide  in any other calendar year; (iii) Executive’s right to have the Company pay or provide such  reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv)  in no event shall the Company’s obligations to make such reimbursements or to provide such in-kind  benefits apply later than Executive’s remaining lifetime (or if longer, through the 20th anniversary of the  Effective Date). Amounts payable under this Agreement upon a termination of employment that  constitute deferred compensation within the meaning of Section 409A will not be paid or provided until  Executive experiences a “separation from service” within the meaning of Section 409A, and  notwithstanding anything contained herein to the contrary, the date on which such separation from service  takes place shall be the date of termination.  12. BEST RESULTS.    (a) REDUCTION OF CERTAIN BENEFITS. If any payment or benefit that  Executive would receive from the Company or any other party whether in connection with the provisions  in this Agreement or otherwise (the “Payments”) would (a) constitute a “parachute payment” within the  meaning of Section 280G of the Code and (b) but for this sentence, be subject to the excise tax imposed  by Section 4999 of the Code (the “Excise Tax”), then the Payments will be either delivered in full, or  delivered as to such lesser extent that would result in no portion of the Payments being subject to the  Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and  local income taxes and the Excise Tax, results in Executive’s receipt, on an after-tax basis, of the greatest  

 

  Exhibit A-10  amount of Payments, notwithstanding that all or some of the Payments may be subject to the Excise Tax.  If a reduction in Payments is made in accordance with the immediately preceding sentence, the reduction  will occur, with respect to the Payments considered parachute payments within the meaning of Code  Section 280G, in the following order:  (i) reduction of cash payments in reverse chronological order (that  is, the cash payment owed on the latest date following the occurrence of the event triggering the Excise  Tax will be the first cash payment to be reduced); (ii) cancellation of equity awards that were granted  “contingent on a change in ownership or control” within the meaning of Section 280G of the Code in the  reverse order of date of grant of the equity awards (that is, the most recently granted equity awards will  be cancelled first); (iii) reduction of the accelerated vesting of equity awards in the reverse order of date  of grant of the equity awards (that is, the vesting of the most recently granted equity awards will be  cancelled first); and (iv) reduction of employee benefits in reverse chronological order (that is, the benefit  owed on the latest date following the occurrence of the event triggering the Excise Tax will be the first  benefit to be reduced). In no event will Executive have any discretion with respect to the ordering of  Payment reductions.  (b) DETERMINATION OF EXCISE TAX LIABILITY. Unless the Company and  Executive otherwise agree in writing, any determinations required under this Section 12 will be made in  writing by a nationally recognized accounting or valuation firm (the “Firm”), whose determinations will  be conclusive and binding upon Executive and the Company for all purposes.  For purposes of making  the calculations required by this Section 12, the Firm may make reasonable assumptions and  approximations concerning applicable taxes and may rely on reasonable, good faith interpretations  concerning the application of Sections 280G and 4999 of the Code. The Company and Executive will  furnish to the Firm such information and documents as the Firm reasonably may request in order to make  determinations under this Section 12.  The Company will bear the costs and make all payments required  to be made to the Firm for the Firm’s services that are rendered in connection with any calculations  contemplated by this Section 12.  ACKNOWLEDGED AND AGREED AS OF THE EFFECTIVE DATE:  “COMPANY”  EXPEDIA, INC.    By:   /s/ Robert Dzielak   Name: Robert Dzielak  Title: Chief Legal Officer    Dated:  September 13, 2022    “EXECUTIVE”      /s/ Julie Whalen   Name: Julie Whalen    Dated:  September 13, 2022Exhibit 4.8

 

WARRANT AGREEMENT

 

between

IMPAC MORTGAGE HOLDINGS, INC.

 

and

 

AMERICAN STOCK TRANSFER & TRUST COMPANY,
LLC

 

Dated [·], 2022

 

THIS WARRANT AGREEMENT
(this “Agreement”), dated as of [ · ], 2022, is by and
between Impac Mortgage Holdings, Inc., a Maryland corporation (the “Company”), and American Stock
Transfer & Trust Company, LLC, a New York limited liability trust company, as warrant agent (in such capacity, the
 “Warrant Agent”, also referred to herein as the “Transfer Agent”).

 

WHEREAS, on or before the
date of this Agreement, the Company has (a) launched an exchange offer (the “Exchange Offer”) for all of
the outstanding shares of the Company’s 9.375% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share (the
 “Series B Preferred Stock”), and the Company’s 9.125% Series C Cumulative Redeemable Preferred
Stock, par value $0.01 per share (the “Series C Preferred Stock”), and (b) sought approval from the
stockholders of the Company for certain amendments (the “Amendments”) to the charter of the Company (the “Charter”),
by (i) soliciting a written consent from the holders of Series B Preferred Stock and the holders of Series C Preferred
Stock, and (ii) calling a special meeting of the holders of the Company’s common stock, par value $0.01 per share (the “Common
Stock”); and

 

WHEREAS, subject to obtaining
the stockholder consents and approvals, the Company proposes to (a) amend the Charter as set forth in the Amendments and (b) subject
to the terms and conditions of the Exchange Offer, close the Exchange Offer; and

 

WHEREAS, after the closing
of the Exchange Offer, the Company proposes to redeem all shares of Series B Preferred Stock and Series C Preferred Stock that
remain outstanding after completion of the Exchange Offer on the terms and conditions set forth in the Amendments (the “Redemption”
and, together with Exchange Offer, collectively, the “Transaction”); and

 

WHEREAS,
in connection with the Transaction, the Company will issue up to 2,107,629 warrants (the “Warrants”) to former
holders of the Series C Preferred Stock. Each Warrant entitles the holder thereof to purchase one share (each such share,
a “Warrant Share” and, collectively, the “Warrant Shares”) of common stock of the
Company, par value $0.01 per share (the “Common Stock”), for an exercise price of $5.00 per share, subject to
the terms and subject to adjustments as described herein. Only whole Warrants are exercisable. A holder of Warrants will not be able to
exercise any fraction of a Warrant. In connection with the Transaction, the Company will issue 1.5 Warrants to each holder of Series C
Preferred Stock per share of Series C Preferred Stock held by such holder, except that the Company will not issue fractional Warrants;
if any holder would be entitled to receive a fractional Warrant, the Company will round down to the nearest whole number of Warrants to
be issued in lieu of the fraction of a Warrant; and

 

     

     

    

 

WHEREAS, the Company has filed
with the Securities and Exchange Commission (the “Commission”) a Registration Statement on Form S-4, Commission
File No. 333-266167, with the United States Securities and Exchange Commission under the Securities Act of 1933, as amended, and
all amendments thereto (the “Securities Act”), and the related form of prospectus included therein (the “Prospectus”),
for the registration, under the Securities Act of 1933, as amended, of the Warrants; and

 

WHEREAS, the Company desires
the Warrant Agent to act on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance, registration,
transfer, exchange and exercise of the Warrants and the Warrant Shares; and

 

WHEREAS, the Company desires
to provide for the form and provisions of the Warrants, the terms upon which they shall be issued and exercised, and the respective rights,
limitation of rights, and immunities of the Company, the Warrant Agent and the holders of the Warrants; and

 

WHEREAS, all acts and things
have been done and performed which are necessary to make the Warrants, when executed on behalf of the Company and countersigned by or
on behalf of the Warrant Agent (if a physical certificate is issued), as provided herein, the valid, binding and legal obligations of
the Company, and to authorize the execution and delivery of this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual agreements herein contained, the parties hereto agree as follows:

 

1.             Appointment
of Warrant Agent. The Company hereby appoints the Warrant Agent to act as agent for the Company for the Warrants, and the Warrant
Agent hereby accepts such appointment and agrees to perform the same in accordance with the terms and conditions set forth in this Agreement.

 

2.             Warrants.

 

2.1.           Form of
Warrant. Each Warrant shall initially be issued in registered form only upon consummation of the Exchange Offer (the date any Warrants
are first issued pursuant to the consummation of the Exchange Offer, the “Exchange Offer Grant Date”) or upon
consummation of the Redemption.

 

2.2.           Effect
of Countersignature. If the Company determines to issue any physical certificate representing a Warrant, a certificated Warrant shall
be invalid and of no effect and may not be exercised by the holder thereof unless and until countersigned by the Warrant Agent pursuant
to this Agreement.

 

2.3.           Registration.

 

2.3.1.             Warrant
Register. The Warrant Agent shall maintain books (the “Warrant Register”), for the registration of original
issuance and the registration of transfer of the Warrants. Upon the initial issuance of the Warrants in book-entry form, the Warrant Agent
shall issue and register the Warrants in the names of the respective holders thereof in such denominations and otherwise in accordance
with instructions delivered to the Warrant Agent by the Company. Ownership of beneficial interests in the Warrants shall be shown on,
and the transfer of such ownership shall be effected through, records maintained by institutions that have accounts with The Depository
Trust Company (the “Depositary”) (such institution, with respect to a Warrant in its account, a “Participant”).

 

    2

     

    

 

If the Depositary subsequently
ceases to make its book-entry settlement system available for the Warrants, the Company may instruct the Warrant Agent regarding making
other arrangements for book-entry settlement. In the event that the Warrants are not eligible for, or it is no longer necessary to have
the Warrants available in, book-entry form, the Warrant Agent shall provide written instructions to the Depositary to deliver to the Warrant
Agent for cancellation each book-entry Warrant, and the Company shall instruct the Warrant Agent to deliver to the Depositary definitive
certificates in physical form evidencing such Warrants (“Definitive Warrant Certificates”), which shall be in
the form annexed hereto as Exhibit A.

 

Physical certificates, if
issued, shall be signed by, or bear the facsimile signature of, the President, Chief Financial Officer, or other principal officer of
the Company. In the event the person whose facsimile signature has been placed upon any Warrant shall have ceased to serve in the capacity
in which such person signed the Warrant before such Warrant is issued, it may be issued with the same effect as if he or she had not ceased
to be such at the date of issuance.

 

2.3.2.             Registered
Holder. Prior to due presentment for registration of transfer of any Warrant, the Company and the Warrant Agent may deem and treat
the person in whose name such Warrant is registered in the Warrant Register (the “Registered Holder”) as the
absolute owner of such Warrant and of each Warrant represented thereby (notwithstanding any notation of ownership or other writing on
any physical certificate made by anyone other than the Company or the Warrant Agent), for the purpose of any exercise thereof, and for
all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the contrary.

 

2.4.           Fractional
Warrants. The Company shall not issue fractional Warrants.

 

3.             Terms
and Exercise of Warrants.

 

3.1.           Warrant
Price. Each whole Warrant shall entitle the Registered Holder thereof, subject to the provisions of such Warrant and of this Agreement,
to purchase from the Company one (1) share of Common Stock, at the exercise price of $5.00 per share, subject to the adjustments
provided in Section 4 hereof and in the last sentence of this Section 3.1. The term “Warrant Price”
as used in this Agreement shall mean the price per share (including in cash or by payment of Warrants pursuant to a “cashless exercise,”
to the extent permitted hereunder) described in the prior sentence at which shares of Common Stock may be purchased at the time a Warrant
is exercised.

 

3.2.           Duration
of Warrants. A Warrant may be exercised only during the period (the “Exercise Period”) (A) commencing
on the third (3rd) anniversary of the Exchange Offer Grant Date, or [·], 2025 (the “Initial Exercise Date”),
and (B) terminating on the date which is ten (10) years after the Exchange Offer Grant Date (the “Expiration Date”);
provided, however, that the exercise of any Warrant shall be subject to the satisfaction of any applicable conditions, as
set forth in subsection 3.3.2 below, with respect to an effective registration statement or a valid exemption therefrom being available.
Each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof
under this Agreement shall cease at 5:00 p.m., Eastern Time, time on the Expiration Date.

 

    3

     

    

 

3.3.           Exercise
of Warrants.

 

3.3.1.             Payment.
Subject to the provisions of the Warrant and this Agreement, a Warrant may be exercised by the Registered Holder thereof by delivering
to the Warrant Agent at its corporate trust department (i) the Definitive Warrant Certificate evidencing the Warrants to be exercised,
or, in the case of a Warrant represented by a book-entry, the Warrants to be exercised (the “Book-Entry Warrants”)
on the records of the Depositary to an account of the Warrant Agent at the Depositary designated for such purposes in writing by the Warrant
Agent to the Depositary from time to time, (ii) an election to purchase (“Election to Purchase”) any share
of Common Stock pursuant to the exercise of a Warrant, properly completed and executed by the Registered Holder on the reverse of the
Definitive Warrant Certificate or, in the case of a Book-Entry Warrant, properly delivered by the Participant in accordance with the Depositary’s
procedures, and (iii) the payment in full of the Warrant Price for each share of Common Stock as to which the Warrant is exercised
and any and all applicable taxes due in connection with the exercise of the Warrant, the exchange of the Warrant for the shares of Common
Stock and the issuance of such shares of Common Stock, as follows:

 

(a)                  in
lawful money of the United States, in good certified check or good bank draft payable to the order of the Company; or

 

(b)                 on
a cashless basis, as provided in Section 7.4 hereof.

 

3.3.2.             Issuance
of Shares of Common Stock on Exercise. As soon as practicable after the exercise of any Warrant and the clearance of the funds in
payment of the Warrant Price (if payment is pursuant to subsection 3.3.1(a)), the Company shall issue to the Registered Holder
of such Warrant a book-entry position or certificate, as applicable, for the number of shares of Common Stock to which he, she or it is
entitled, registered in such name or names as may be directed by him, her or it on the register of members of the Company, and if such
Warrant shall not have been exercised in full, a new book-entry position or countersigned Warrant Certificate, as applicable, for the
number of shares as to which such Warrant shall not have been exercised. Notwithstanding the foregoing, the Company shall not be obligated
to deliver any shares of Common Stock pursuant to the exercise of a Warrant and shall have no obligation to settle such Warrant exercise
unless a registration statement under the Securities Act with respect to the shares of Common Stock underlying the Warrants is then effective
and a prospectus relating thereto is current, subject to the Company’s satisfying its obligations under Section 7.4,
or a valid exemption from registration is available. In addition, no Warrant shall be exercisable and the Company shall not be obligated
to issue shares of Common Stock upon exercise of a Warrant unless the shares of Common Stock issuable upon such Warrant exercise have
been registered, qualified or deemed to be exempt from registration or qualification under the securities laws of the state of residence
of the Registered Holder of the Warrants. Subject to Section 4.7 of this Agreement, a Registered Holder of Warrants may exercise
its Warrants only for a whole number of shares of Common Stock. The Company may require holders of Warrants to settle the Warrant on a
 “cashless basis” pursuant to Section 7.4. If, by reason of any exercise of Warrants on a “cashless basis”,
the holder of any Warrant would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share of Common
Stock, the Company shall round down to the nearest whole number, the number of shares of Common Stock to be issued to such holder.

 

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3.3.3.             Valid
Issuance. All shares of Common Stock issued upon the proper exercise of a Warrant in conformity with this Agreement shall be validly
issued, fully paid and nonassessable.

 

3.3.4.             Date
of Issuance. Each person in whose name any book-entry position or certificate, as applicable, for shares of Common Stock is issued
and who is registered as a stockholder of the Company shall for all purposes be deemed to have become the holder of record of such shares
of Common Stock on the date on which the Warrant, or book-entry position representing such Warrant, was surrendered and payment of the
Warrant Price was made, irrespective of the date of delivery of such certificate in the case of a certificated Warrant, except that, if
the date of such surrender and payment is a date when the share transfer books of the Company or book-entry system of the Warrant Agent
are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date
on which the share transfer books or book-entry system are open.

 

4.             Adjustments.

 

4.1.           Combinations
and Sub-Divisions. The Purchase Price of the Warrants shall be proportionally decreased and the number of Warrant Shares issuable
upon exercise of the Warrants (or any shares of stock or other securities at the time issuable upon exercise of this Warrant) shall be
proportionally increased to reflect any stock split or sub-division of the Company’s Common Stock. The Purchase Price of the Warrants
shall be proportionally increased and the number of Warrant Shares issuable upon exercise of the Warrants (or any shares of stock or other
securities at the time issuable upon exercise of the Warrants) shall be proportionally decreased to reflect any combination of the Company’s
Common Stock.

 

4.2.           Extraordinary
Dividends. In case the Company shall make or issue, or shall fix a record date for the determination of eligible holders entitled
to receive, a dividend or other distribution with respect to its Common Stock (or any shares of stock or other securities at the time
issuable upon exercise of the Warrant) payable in (a) securities of the Company or (b) assets (excluding cash dividends), then,
in each such case, the Registered Holder on exercise hereof at any time after the consummation, effective date or record date of such
dividend or other distribution, shall receive, in addition to the Warrant Shares (or such other stock or securities) issuable on such
exercise prior to such date, and without the payment of additional consideration therefor, the securities or such other assets of the
Company to which such Holder would have been entitled upon such date if such Holder had exercised this Warrant on the date hereof and
had thereafter, during the period from the date hereof to and including the date of such exercise, retained such shares and all such additional
securities or other assets distributed with respect to such shares as aforesaid during such period giving effect to all adjustments called
for by this Section 4.

 

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4.3.           Reclassification.
If the Company, by reclassification of securities or otherwise, shall change any of the securities as to which purchase rights under this
Agreement exist into the same or a different number of securities of any other class or classes, the Warrants shall thereafter represent
the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities
that were subject to the purchase rights under the Warrants immediately prior to such reclassification or other change, and the Purchase
Price therefor shall be appropriately adjusted, all subject to further adjustment as provided in this Section 4. No adjustment
shall be made pursuant to this Section 4.3 upon any conversion or redemption of the Common Stock which is the subject of Section 4.5.

 

4.4.           Adjustment
for Capital Reorganization, Merger or Consolidation. In case of any capital reorganization of the capital stock of the Company (other
than a combination, reclassification, exchange or subdivision of shares otherwise provided for herein), or any merger or consolidation
of the Company with or into another corporation, or the sale of all or substantially all the assets of the Company (together, a “Business
Combination”) then, and in each such case, as a part of such reorganization, merger, consolidation, sale of all or substantially
all the assets, lawful provision shall be made so that the Registered Holder shall thereafter be entitled to receive upon exercise of
the Warrants, during the period specified herein and upon payment of the Purchase Price then in effect, the number of shares of stock
or other securities or property of the successor corporation resulting from such reorganization, merger, consolidation, sale of all or
substantially all the assets that a holder of the Warrant Shares deliverable upon exercise of the Warrants would have been entitled to
receive in such reorganization, consolidation, merger, sale or transfer if the Warrants had been exercised immediately before such reorganization,
merger, consolidation, sale or transfer, all subject to further adjustment as provided in this Section 4. The foregoing provisions
of this Section 4.4 shall similarly apply to successive reorganizations, consolidations, mergers, sales of all or substantially
all the assets and to the stock or securities of any other corporation that are at the time receivable upon the exercise of the Warrants.
If the per-share consideration payable to the Holder hereof for shares in connection with any such transaction is in a form other than
cash or marketable securities, then the value of such consideration shall be determined in good faith by the Company’s Board of
Directors. In all events, appropriate adjustment (as determined in good faith by the Company’s Board of Directors) shall be made
in the application of the provisions of this Agreement with respect to the rights and interests of the Registered Holder after the transaction,
to the end that the provisions of this Warrant Agreement shall be applicable after that event, as near as reasonably may be, in relation
to any shares or other property deliverable after that event upon exercise of the Warrants. In the event of any Business Combination,
at the Company’s option, the Warrants shall convert into the number of shares of Common Stock, common stock of the successor or
acquiring person, and/or other property that a holder immediately prior to such event of the number of shares of Common Stock for which
such Warrants are exercisable would have owned or received immediately after and as a result of such event.

 

4.5.           Redemption
or Conversion of Common Stock. In case all or any portion of the authorized and outstanding shares of Common Stock of the Company
are redeemed or converted or reclassified into other securities or property pursuant to the Charter or otherwise, or the Common Stock
otherwise ceases to exist, then, in such case, the Registered Holder, upon exercise hereof at any time after the date on which the Common
Stock is so redeemed or converted, reclassified or ceases to exist (the “Termination Date”), shall receive,
in lieu of the number of Warrant Shares that would have been issuable upon such exercise immediately prior to the Termination Date, the
securities or property that would have been received if the Warrants had been exercised in full and the Common Stock received thereupon
had been simultaneously converted immediately prior to the Termination Date, all subject to further adjustment as provided in this Agreement.
Additionally, the Purchase Price shall be immediately adjusted to equal the quotient obtained by dividing (x) the aggregate Purchase
Price of the maximum number of Warrant Shares for which the Warrants were exercisable immediately prior to the Termination Date by (y) the
number of Warrant Shares for which this Warrant is exercisable immediately after the Termination Date, all subject to further adjustment
as provided herein.

 

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4.6.           Notices
of Changes in Warrant. Upon every adjustment of the Warrant Price or the number of shares issuable upon exercise of a Warrant, the
Company shall give written notice thereof to the Warrant Agent, which notice shall state the Warrant Price resulting from such adjustment
and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of a Warrant, setting forth
in reasonable detail the method of calculation and the facts upon which such calculation is based. Upon the occurrence of any event specified
in this Section 4 resulting in an adjustment, the Company shall give notice, including by electronic mail, of the occurrence of such
event to each holder of a Warrant, at the last address set forth for such holder in the Warrant Register, of the record date or the effective
date of the event. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event.

 

4.7.           No
Fractional Shares. Notwithstanding any provision contained in this Agreement to the contrary, the Company shall not issue fractional
shares upon the exercise of Warrants. If, by reason of any adjustment made pursuant to this Section 4, the holder of any Warrant
would be entitled, upon the exercise of such Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise,
round down to the nearest whole number the number of shares of Common Stock to be issued to such holder.

 

4.8.           Form of
Warrant. The form of Warrant Certificate, if any, need not be changed because of any adjustment pursuant to this Section 4,
and Warrants issued after such adjustment may state the same Warrant Price and the same number of shares as is stated in the Warrant Certificates
initially issued pursuant to this Agreement; provided, however, that the Company may at any time in its sole discretion
make any change in the form of Warrant Certificate that the Company may deem appropriate and that does not affect the substance thereof,
and any Warrant Certificate thereafter issued or countersigned, whether in exchange or substitution for an outstanding Warrant Certificate
or otherwise, may be in the form as so changed.

 

5.             Transfer
and Exchange of Warrants.

 

5.1.           Registration
of Transfer. The Warrant Agent shall register the transfer, from time to time, of any outstanding Warrant upon the Warrant Register,
upon surrender of such Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied by appropriate instructions
for transfer. Upon any such transfer, a new Warrant representing an equal aggregate number of Warrants shall be issued and the old Warrant
shall be cancelled by the Warrant Agent. In the case of certificated Warrants, the Warrants so cancelled shall be delivered by the Warrant
Agent to the Company from time to time upon request.

 

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5.2.           Procedure
for Surrender of Warrants. Warrants may be surrendered to the Warrant Agent, together with a written request for exchange or transfer,
and thereupon the Warrant Agent shall issue in exchange therefor one or more new Warrants as requested by the Registered Holder of the
Warrants so surrendered, representing an equal aggregate number of Warrants; provided, however, that except as otherwise
provided herein or with respect to any Book-Entry Warrant, each Book-Entry Warrant may be transferred only in whole and only to the Depositary,
to another nominee of the Depositary, to a successor depository, or to a nominee of a successor depository.

 

5.3.           Fractional
Warrants. The Warrant Agent shall not be required to effect any registration of transfer or exchange which shall result in the issuance
of a Warrant Certificate or book-entry position for a fraction of a Warrant.

 

5.4.           Service
Charges. No service charge shall be made for any exchange or registration of transfer of Warrants.

 

5.5.           Warrant
Execution and Countersignature. The Warrant Agent is hereby authorized to countersign and to deliver, in accordance with the terms
of this Agreement, the Warrants required to be issued pursuant to the provisions of this Section 5, and the Company, whenever
required by the Warrant Agent, shall supply the Warrant Agent with Warrants duly executed on behalf of the Company for such purpose.

 

6.             [RESERVED.]

 

7.             Other
Provisions Relating to Rights of Holders of Warrants.

 

7.1.           No
Rights as Stockholder. A Warrant does not entitle the Registered Holder thereof to any of the rights of a stockholder of the Company,
including, without limitation, the right to receive dividends, or other distributions, exercise any preemptive rights to vote or to consent
or to receive notice as stockholders in respect of the meetings of stockholders or the election of directors of the Company or any other
matter.

 

7.2.           Lost,
Stolen, Mutilated, or Destroyed Warrant Certificates. If any Warrant Certificate is lost, stolen, mutilated, or destroyed, the Company
and the Warrant Agent may on such terms as to indemnity or otherwise as they may in their discretion impose (which shall, in the case
of a mutilated Warrant, include the surrender thereof), issue a new Warrant Certificate of like denomination, tenor, and date as the Warrant
Certificate so lost, stolen, mutilated, or destroyed. Any such new Warrant Certificate shall constitute a substitute contractual obligation
of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable by anyone.

 

7.3.           Reservation
of Shares of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares
of Common Stock that shall be sufficient to permit the exercise in full of all outstanding Warrants to be issued pursuant to this Agreement.

 

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7.4.           Registration
of Shares of Common Stock; Cashless Exercise at Company’s Option.

 

7.4.1.             Registration
of the Shares of Common Stock. The Company may, but is not required to, file with the Commission a registration statement for the
registration, under the Securities Act, of the Warrant Shares before the Warrant becomes exercisable. Holders of the Warrants shall have
the right, during any period when the Company has not maintained an effective registration statement covering the issuance of the Warrant
Shares, only to exercise such Warrants on a “cashless basis,” pursuant to subsection 3.3.1, by exchanging the Warrants
(in accordance with Section 3(a)(9) of the Securities Act or another exemption) for that number of shares of Common Stock equal
to the quotient obtained by dividing (a) the product of (1) the number of shares of Common Stock underlying the Warrants and
(2) the excess of the “Fair Market Value” (as defined below) over the Warrant Price by (b) the Fair Market Value.
Solely for purposes of this subsection 7.4.1, “Fair Market Value” shall mean (x) if the Common Stock is traded
on a national securities exchange, the volume-weighted average price of the shares of Common Stock as reported during the five (5) trading
day period ending on the trading day prior to the date that notice of exercise is received by the Warrant Agent from the holder of such
Warrants or its securities broker or intermediary, (y) if the Common Stock is actively traded over-the-counter, the average of the
closing bid prices over the thirty (30)-day period ending immediately prior to the applicable date of valuation and (z) if there
is no active public market for the Common Stock, the value determined in good faith by the Board of Directors. The date that notice of
 “cashless exercise” is received by the Warrant Agent shall be conclusively determined by the Warrant Agent. In connection
with the “cashless exercise” of a Warrant, the Company shall, upon reasonable request, and subject to any reasonable conditions,
qualifications or requirements in order to comply with applicable law and regulation, provide the Warrant Agent with an opinion of counsel
for the Company stating that (i) the exercise of the Warrant on a “cashless basis” in accordance with this subsection
7.4.1 is not required to be registered under the Securities Act and (ii) the shares of Common Stock issued upon such exercise
shall be freely tradable under United States federal securities laws by anyone who is not an affiliate (as such term is defined in Rule 144
under the Securities Act) of the Company and, accordingly, shall not be required to bear a restrictive legend. Upon receipt of an exercise
notice for a “cashless exercise” of a Warrant, the Warrant Agent shall deliver a copy of the exercise notice to the Company
and the Company shall promptly calculate and transmit to the Warrant Agent in writing, the number of Warrant Shares issuable in connection
with such “cashless exercise.” The Warrant Agent shall have no obligation under this Agreement to calculate, the number of
Warrant Shares issuable in connection with a “cashless exercise,” nor shall the Warrant Agent have any duty or obligation
to investigate or confirm whether the Company’s determination of the number of Warrant Shares issuable upon such exercise, pursuant
to Section 7.4, is accurate or correct.

 

7.4.2.             Cashless
Exercise at Company’s Option. If the shares of Common Stock are at the time of any exercise of a Warrant not listed on a national
securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the
Securities Act, the Company may, at its option, (a) require holders of Warrants who exercise Warrants to exercise such Warrants on
a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act as described in subsection 7.4.1
and (b) in the event the Company so elects, the Company shall (i) not be required to file or maintain in effect a registration
statement for the registration, under the Securities Act, of the shares of Common Stock issuable upon exercise of the Warrants, notwithstanding
anything in this Agreement to the contrary, and (ii) use its commercially reasonable efforts to register or qualify for sale the
shares of Common Stock issuable upon exercise of the Warrant under applicable blue sky laws of the state of the residence of the holder
to the extent an exemption is not available.

 

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8.             Concerning
the Warrant Agent and Other Matters.

 

8.1.           Payment
of Taxes. The Company shall from time to time promptly pay all taxes and charges that may be imposed upon the Company or the Warrant
Agent in respect of the issuance or delivery of shares of Common Stock upon the exercise of the Warrants, but the Company shall not be
obligated to pay any transfer taxes in respect of the Warrants or such shares.

 

8.2.           Resignation,
Consolidation, or Merger of Warrant Agent.

 

8.2.1.             Appointment
of Successor Warrant Agent. The Warrant Agent, or any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving sixty (60) days’ notice in writing to the Company. If the office
of the Warrant Agent becomes vacant by resignation or incapacity to act or otherwise, the Company shall appoint in writing a successor
Warrant Agent in place of the Warrant Agent. If the Company shall fail to make such appointment within a period of thirty (30) days
after it has been notified in writing of such resignation or incapacity by the Warrant Agent or by the holder of a Warrant (who shall,
with such notice, submit his, her or its Warrant for inspection by the Company), then the holder of any Warrant may apply to the Supreme
Court of the State of New York for the County of New York for the appointment of a successor Warrant Agent at the Company’s cost.
Any successor Warrant Agent, whether appointed by the Company or by such court, shall be a corporation organized and existing under the
laws of the State of New York, in good standing and having its principal office in the Borough of Manhattan, City and State of New York,
and authorized under such laws to exercise corporate trust powers and subject to supervision or examination by federal or state authority.
After appointment, any successor Warrant Agent shall be vested with all the authority, powers, rights, immunities, duties, and obligations
of its predecessor Warrant Agent with like effect as if originally named as Warrant Agent hereunder, without any further act or deed;
but if for any reason it becomes necessary or appropriate, the predecessor Warrant Agent shall execute and deliver, at the expense of
the Company, an instrument transferring to such successor Warrant Agent all the authority, powers, and rights of such predecessor Warrant
Agent hereunder; and upon request of any successor Warrant Agent the Company shall make, execute, acknowledge, and deliver any and all
instruments in writing for more fully and effectually vesting in and confirming to such successor Warrant Agent all such authority, powers,
rights, immunities, duties, and obligations.

 

8.2.2.             Notice
of Successor Warrant Agent. In the event a successor Warrant Agent shall be appointed, the Company shall give notice thereof to the
predecessor Warrant Agent and the Transfer Agent for the shares of Common Stock not later than the effective date of any such appointment.

 

8.2.3.             Merger
or Consolidation of Warrant Agent. Any entity into which the Warrant Agent may be merged or with which it may be consolidated or any
entity resulting from any merger or consolidation to which the Warrant Agent shall be a party shall be the successor Warrant Agent under
this Agreement without any further act.

 

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8.3            Fees
and Expenses of Warrant Agent.

 

8.3.1.             Remuneration.
The Company agrees to pay the Warrant Agent reasonable remuneration for its services as such Warrant Agent hereunder and shall, pursuant
to its obligations under this Agreement, reimburse the Warrant Agent upon demand for all expenditures that the Warrant Agent may reasonably
incur in the execution of its duties hereunder.

 

8.3.2.             Further
Assurances. The Company agrees to 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 Warrant Agent for the carrying
out or performing of the provisions of this Agreement.

 

8.4.           Liability
of Warrant Agent.

 

8.4.1.             Reliance
on Company Statement. Whenever in the performance of its duties under this Agreement, the Warrant Agent shall deem it necessary or
desirable that any fact or matter be proved or established by the Company prior to taking or suffering any action hereunder, such fact
or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established
by a statement signed by the Chief Executive Officer, President or Chief Financial Officer of the Company and delivered to the Warrant
Agent. The Warrant Agent may rely upon such statement for any action taken or suffered in good faith by it pursuant to the provisions
of this Agreement.

 

8.4.2.             Indemnity.
The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct, fraud or bad faith. The Company agrees
to indemnify the Warrant Agent and save it harmless against any and all out-of-pocket liabilities, including judgments, out-of-pocket
costs and reasonable outside counsel fees, for anything done or omitted by the Warrant Agent in the execution of this Agreement, except
as a result of the Warrant Agent’s gross negligence, willful misconduct, fraud or bad faith.

 

8.4.3.             Exclusions.
The Warrant Agent shall not be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in
any Warrant. The Warrant Agent shall not be responsible to make any adjustments required under the provisions of Section 4
hereof 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; 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 Common Stock to be issued pursuant to this Agreement or any Warrant or as to whether any shares of Common
Stock shall, when issued, be valid and fully paid and nonassessable.

 

8.5.           Acceptance
of Agency. The Warrant Agent hereby accepts the agency established by this Agreement and agrees to perform the same upon the terms
and conditions herein set forth and among other things, shall account promptly to the Company with respect to Warrants exercised and concurrently
account for, and pay to the Company, all monies received by the Warrant Agent for the purchase of shares of Common Stock through the exercise
of the Warrants.

 

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9.             Miscellaneous
Provisions.

 

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

 

9.2.           Notices.
Any notice, statement or demand authorized by this Agreement to be given or made by the Warrant Agent or by the holder of any Warrant
to or on the Company shall be sufficiently given when so delivered if by hand or overnight delivery or if sent by certified mail or private
courier service within five (5) days after deposit of such notice, postage prepaid, addressed (until another address is filed in
writing by the Company with the Warrant Agent), as follows:

 

Impac Mortgage Holdings, Inc.

19500 Jamboree Road,

Irvine, California 92612

Attention: General Counsel

E-mail: GeneralCounselDG@impacmail.com

 

Any notice, statement or demand authorized by
this Agreement to be given or made by the holder of any Warrant or by the Company to or on the Warrant Agent shall be sufficiently given
when so delivered if by hand or overnight delivery or if sent by certified mail or private courier service within five (5) days after
deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Warrant Agent with the Company),
as follows:

 

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Attention: Reorg Group/Warrants

ReorgWarrants@astfiancial.com

 

With copy to:

 

American Stock Transfer & Trust
Company, LLC

48 Wall Street, 22nd Floor

New York, NY 10005

Attention: Legal Department

Email: legalteamAST@astfinancial.com

 

9.3.           Applicable
Law. The validity, interpretation, and performance of this Agreement and of the Warrants shall be governed in all respects by the
laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive
laws of another jurisdiction. The Company hereby agrees that any action, proceeding or claim against it arising out of or relating in
any way to this Agreement shall be brought and enforced in the courts of the State of New York or the United States District Court for
the Southern District of New York, and irrevocably submits to such jurisdiction. The Company hereby waives any objection to such jurisdiction
and that such courts represent an inconvenient forum.

 

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9.4.           Persons
Having Rights under this Agreement. Nothing in this Agreement shall be construed to confer upon, or give to, any person or corporation
other than the parties hereto and the Registered Holders of the Warrants any right, remedy, or claim under or by reason of this Agreement
or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and agreements
contained in this Agreement shall be for the sole and exclusive benefit of the parties hereto and their successors and assigns and of
the Registered Holders of the Warrants.

 

9.5.           Examination
of the Warrant Agreement. A copy of this Agreement shall be available at all reasonable times at the office of the Warrant Agent in
the Borough of Manhattan, City and State of New York, for inspection by the Registered Holder of any Warrant. The Warrant Agent may require
any such holder to submit such holder’s Warrant for inspection by the Warrant Agent.

 

9.6.           Counterparts.
This Agreement may be executed in any number of original or facsimile 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.

 

9.7.           Effect
of Headings. The section headings herein are for convenience only and are not part of this Agreement and shall not affect the interpretation
thereof.

 

9.8.           Amendments.
This Agreement may be amended by the parties hereto without the consent of any Registered Holder for the purpose of curing any ambiguity,
or curing, correcting or supplementing any defective provision contained herein (including conforming the provisions hereof to the description
of the terms of the Warrants and this Agreement set forth in the Registration Statement) or adding or changing any other provisions with
respect to matters or questions arising under this Agreement as the parties may deem necessary or desirable and that the parties deem
shall not adversely affect the interest of the Registered Holders. All other modifications or amendments, including but not limited to
any modifications or amendment to increase the Warrant Price or shorten the Exercise Period (other than as contemplated by this Agreement)
and any amendment to the terms of the Warrants, shall require the vote or written consent of the Registered Holders of a majority of the
then outstanding Warrants.

 

9.9.           Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the
validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable
term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to
such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

    13

     

    

 

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

 

	 	IMPAC MORTGAGE HOLDINGS, INC.
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	AMERICAN STOCK TRANSFER & TRUST 

COMPANY, LLC
	 	as Warrant Agent
	 	 
	 	By:	 
	 	Name:
	 	Title:

 

[Signature
Page to Warrant Agreement]

 

     

     

    

 

EXHIBIT A

 

Form of Warrant Certificate

 

[FACE]

 

Number

 

Warrants

 

THIS WARRANT SHALL BE VOID IF NOT EXERCISED
PRIOR TO

THE EXPIRATION OF THE EXERCISE PERIOD PROVIDED
FOR

IN THE WARRANT AGREEMENT DESCRIBED BELOW

 

IMPAC MORTGAGE HOLDINGS, INC.

Incorporated Under the Laws of the State of
Maryland

 

CUSIP 45254P 110

 

Warrant Certificate

 

This
Warrant Certificate certifies that                                            ,
or registered assigns, is the registered holder of                                            
(                ) warrant(s) evidenced
hereby (the “Warrants” and each, a “Warrant”) to purchase shares of Common Stock,
$0.01 par value (the “Common Stock”), of Impac Mortgage Holdings, Inc., a Maryland corporation (the “Company”).
Each Warrant entitles the holder, upon exercise during the period set forth in the Warrant Agreement referred to below, to receive from
the Company that number of fully paid and nonassessable shares of Common Stock as set forth below, at the exercise price (the “Warrant
Price”) as determined pursuant to the Warrant Agreement, payable in lawful money (or through “cashless exercise”
as provided for in the Warrant Agreement) of the United States of America upon surrender of this Warrant Certificate and payment of the
Warrant Price at the office or agency of the Warrant Agent referred to below, subject to the conditions set forth herein and in the Warrant
Agreement. Defined terms used in this Warrant Certificate but not defined herein shall have the meanings given to them in the Warrant
Agreement.

 

Each whole Warrant is initially
exercisable for one fully paid and nonassessable share of Common Stock. No fractional shares will be issued upon exercise of any Warrant.
If, upon the exercise of Warrants, a holder would be entitled to receive a fractional interest in a share of Common Stock, the Company
will, upon exercise, round down to the nearest whole number the number of shares of Common Stock to be issued to the Warrant holder. The
number of shares of Common Stock issuable upon exercise of the Warrants is subject to adjustment upon the occurrence of certain events
as set forth in the Warrant Agreement.

 

The initial Warrant Price
per one share of Common Stock for any Warrant is equal to $5.00 per share. The Warrant Price is subject to adjustment upon the occurrence
of certain events as set forth in the Warrant Agreement.

 

Subject to the conditions
set forth in the Warrant Agreement, the Warrants may be exercised only during the Exercise Period and to the extent not exercised by the
end of such Exercise Period, such Warrants shall become void.

 

Reference is hereby made
to the further provisions of this Warrant Certificate set forth on the reverse hereof and such further provisions shall for all purposes
have the same effect as though fully set forth at this place.

 

This Warrant Certificate shall
not be valid unless countersigned by the Warrant Agent, as such term is used in the Warrant Agreement.

 

This Warrant Certificate shall
be governed by and construed in accordance with the internal laws of the State of New York, without regard to conflicts of laws principles
thereof.

 

    A-2

     

    

 

	IMPAC MORTGAGE HOLDINGS, INC.	 	AMERICAN STOCK TRANSFER & TRUST COMPANY,
	 	 	LLC
	 	 	as Warrant Agent
	 	 	 
	By:	 	 	By:	 
	Name:	 	Name:
	Title:	 	Title:

 

    A-3

     

    

 

[Form of Warrant Certificate]

[Reverse]

 

The Warrants evidenced by
this Warrant Certificate are part of a duly authorized issue of Warrants entitling the holder on exercise to receive shares of Common
stock and are issued or to be issued pursuant to a Warrant Agreement dated as of [·], 2022 (the “Warrant Agreement”),
duly executed and delivered by the Company to American Stock Transfer & Trust Company, LLC, a New York limited liability trust
company, as warrant agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by reference
in and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties
and immunities thereunder of the Warrant Agent, the Company and the holders (the words “holders” or “holder”
meaning the Registered Holders or Registered Holder, respectively) of the Warrants. A copy of the Warrant Agreement may be obtained by
the holder hereof upon written request to the Company. Defined terms used in this Warrant Certificate but not defined herein shall have
the meanings given to them in the Warrant Agreement.

 

Warrants may be exercised
at any time during the Exercise Period set forth in the Warrant Agreement. The holder of Warrants evidenced by this Warrant Certificate
may exercise them by surrendering this Warrant Certificate, with the form of Election to Purchase set forth hereon properly completed
and executed, together with payment of the Warrant Price as specified in the Warrant Agreement (or through “cashless exercise”
as provided for in the Warrant Agreement) at the principal corporate trust office of the Warrant Agent. In the event that upon any exercise
of Warrants evidenced hereby the number of Warrants exercised shall be less than the total number of Warrants evidenced hereby, there
shall be issued to the holder hereof or his, her or its assignee, a new Warrant Certificate evidencing the number of Warrants not exercised.

 

Notwithstanding anything
else in this Warrant Certificate or the Warrant Agreement, no Warrant may be exercised unless at the time of exercise (i) a registration
statement covering the issuance of the shares of Common Stock to be issued upon exercise is effective under the Securities Act and (ii) a
prospectus thereunder relating to the shares of Common Stock is current, except through “cashless exercise”
as provided for in the Warrant Agreement.

 

The Warrant Agreement provides
that upon the occurrence of certain events the number of shares of Common Stock issuable upon exercise of the Warrants set forth on the
face hereof may, subject to certain conditions, be adjusted. If, upon exercise of a Warrant, the holder thereof would be entitled to receive
a fractional interest in a share of Common Stock, the Company shall, upon exercise, round down to the nearest whole number of shares of
Common Stock to be issued to the holder of the Warrant.

 

Warrant Certificates, when
surrendered at the principal corporate trust office of the Warrant Agent by the Registered Holder thereof in person or by legal representative
or attorney duly authorized in writing, may be exchanged, in the manner and subject to the limitations provided in the Warrant Agreement,
but without payment of any service charge, for another Warrant Certificate or Warrant Certificates of like tenor evidencing in the aggregate
a like number of Warrants.

 

Upon due presentation for
registration of transfer of this Warrant Certificate at the office of the Warrant Agent a new Warrant Certificate or Warrant Certificates
of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for this
Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any tax or other governmental
charge imposed in connection therewith.

 

The Company and the Warrant
Agent may deem and treat the Registered Holder(s) hereof as the absolute owner(s) of this Warrant Certificate (notwithstanding
any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, of any distribution to the
holder(s) hereof, and for all other purposes, and neither the Company nor the Warrant Agent shall be affected by any notice to the
contrary. Neither the Warrants nor this Warrant Certificate entitles any holder hereof to any rights of a stockholder of the Company.

 

    A-4

     

    

 

Election to Purchase

 

(To Be Executed Upon Exercise of Warrant)

 

The undersigned hereby irrevocably
elects to exercise the right, represented by this Warrant Certificate, to receive shares of Common Stock and herewith tenders payment
for such shares of Common Stock to the Company in the amount of $                                            
in accordance with the terms hereof. The undersigned requests that a certificate for such shares of Common Stock be registered in the
name of                                                                     ,
whose address is                                                                                                                                                               ,
and that such shares of Common Stock be delivered to                                                                                                                                                    ,
whose address is                                                                                                                                                               .
If said number of shares of Common Stock is less than all of the shares of Common Stock purchasable hereunder, the undersigned requests
that a new Warrant Certificate representing the remaining balance of such shares of Common Stock be registered in the name of                                                                                                                   ,
whose address is                                                                                                                                                               ,
and that such Warrant Certificate be delivered to                                                                                                                                                                                                                                   ,
whose address is                                                                                                                                                               .

 

In the event that the Warrant
is to be exercised on a “cashless” basis pursuant to Section 7.4 of the Warrant Agreement, the number of shares
of Common Stock that this Warrant is exercisable for shall be determined in accordance with Section 7.4 of the Warrant Agreement.

 

In the event that the Warrant
may be exercised, to the extent allowed by the Warrant Agreement, through cashless exercise (i) the number of shares of Common Stock
that this Warrant is exercisable for would be determined in accordance with the relevant section of the Warrant Agreement which allows
for such cashless exercise and (ii) the holder hereof shall complete the following: The undersigned hereby irrevocably elects to
exercise the right, represented by this Warrant Certificate, through the cashless exercise provisions of the Warrant Agreement, to receive
shares of Common Stock. If said number of shares is less than all of the shares of Common Stock purchasable hereunder (after giving effect
to the cashless exercise), the undersigned requests that a new Warrant Certificate representing the remaining balance of such shares of
Common Stock be registered in the name of                                                                                                                                                                                       ,
whose address is                                                                                                                                                               ,
and that such Warrant Certificate be delivered to                                                                                                                                                                                                                  ,
whose address is                                                                                                                                                               .

 

Date:                 ,
20     

 

	
    Signature Guaranteed:

     
	 	 
	 	(Name)
	 	 
	 	 
	 	(Signature)
	THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED).	 	 
	 	 
	 	 
	 	 
	 	(Address)
	 	 
	 	 
	 	(Tax Identification Number)

 

    A-5

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