Document:

EXHIBIT 4.2

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

	Principal
    Amount: $54,000.00	Issue
    Date: December 31, 2014
	 	 
	Purchase
    Price: $54,000.00	 

  

CONVERTIBLE
PROMISSORY NOTE

 

FOR
VALUE RECEIVED, INCEPTION MINING, INC., a Nevada corporation
(hereinafter called the “Borrower”), hereby promises to pay to the order of
KBM WORLDWIDE, INC., a New York corporation, or registered assigns (the “Holder”) the sum of $54,000.00
together with any interest as set forth herein, on October 5, 201 (the “Maturity Date”), and to pay interest on the
unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof
(the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment
or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of
principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per
annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the
date that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All
payments due hereunder (to the extent not converted into common stock, $0.00001 par value per share (the “Common Stock”)
in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made
at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of
this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the
same shall instead be due on the next succeeding day which is a business day and, in the case of any interest payment date which
is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for
purposes of determining the amount of interest due on such date. As used in this Note, the term “business day” shall
mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized
or required by law or executive order to remain closed. Each capitalized term used herein, and not otherwise defined, shall have
the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note
was originally issued (the “Purchase Agreement”).

 

    	 

    	 

    

  

This
Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The
following terms shall apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1
Conversion Right. The Holder shall have the right from time to time, and at
any time during the period beginning on the date which is one hundred eighty (180) days following the date of this Note and ending
on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III) pursuant
to Section 1.6(a) or Article III, each in respect of the remaining outstanding principal amount of this Note to convert all or
any part of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable shares of Common Stock,
as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such
Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined
as provided herein (a “Conversion”); provided, however,
that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon
conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other
than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes
or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise
analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the
portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership
by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to
the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided
in clause (1) of such proviso, provided, further, however, that the limitations
on conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 days’ prior notice to the
Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as
determined by the Holder, as may be specified in such notice of waiver). The number of shares of Common Stock to be issued upon
each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion
Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice
of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of
Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to
the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”). The term “Conversion
Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted
in such conversion plus (2) at the Holder’s option, accrued and unpaid
interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus
(3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding
clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts
owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

 

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1.2
Conversion Price.

 

(a)
Calculation of Conversion Price. The conversion price (the “Conversion
Price”) shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits,
stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary
of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable
Conversion Price” shall mean 51% multiplied by the Market Price (as defined herein) (representing a discount rate of 49%).
“Market Price” means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during
the twenty (20) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. “Trading Price”
means, for any security as of any date, the closing bid price on the Over-the- Counter Bulletin Board, Pink Sheets electronic
quotation system or applicable trading market (the “OTC”) as reported by a reliable reporting service (“Reporting
Service”) designated by the Holder (i.e. Bloomberg) or, if the OTC is not the principal trading market for such security,
the closing bid price of such security on the principal securities exchange or trading market where such security is listed or
traded or, if no closing bid price of such security is available in any of the foregoing manners, the average of the closing bid
prices of any market makers for such security that are listed in the “pink sheets”. If the Trading Price cannot be calculated
for such security on such date in the manner provided above, the Trading Price shall be the fair market value as mutually determined
by the Borrower and the holders of a majority in interest of the Notes being converted for which the calculation of the Trading
Price is required in order to determine the Conversion Price of such Notes. “Trading Day” shall mean any day on which
the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on
which the Common Stock is then being traded.

 

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(b)
Conversion Price During Major Announcements. Notwithstanding anything contained
in Section 1.2(a) to the contrary, in the event the Borrower (i) makes a public announcement that it intends to consolidate or
merge with any other corporation (other than a merger in which the Borrower is the surviving or continuing corporation and its
capital stock is unchanged) or sell or transfer all or substantially all of the assets of the Borrower or (ii) any person, group
or entity (including the Borrower) publicly announces a tender offer to purchase 50% or more of the Borrower’s Common Stock
(or any other takeover scheme) (the date of the announcement referred to in clause (i) or (ii) is hereinafter referred to as the
“Announcement Date”), then the Conversion Price shall, effective upon the Announcement Date and continuing through the
Adjusted Conversion Price Termination Date (as defined below), be equal to the lower of (x) the Conversion Price which would have
been applicable for a Conversion occurring on the Announcement Date and (y) the Conversion Price that would otherwise be in effect.
From and after the Adjusted Conversion Price Termination Date, the Conversion Price shall be determined as set forth in this Section
1.2(a). For purposes hereof, “Adjusted Conversion Price Termination Date” shall mean, with respect to any proposed transaction
or tender offer (or takeover scheme) for which a public announcement as contemplated by this Section 1.2(b) has been made, the
date upon which the Borrower (in the case of clause (i) above) or the person, group or entity (in the case of clause (ii) above)
consummates or publicly announces the termination or abandonment of the proposed transaction or tender offer (or takeover scheme)
which caused this Section 1.2(b) to become operative.

 

1.3
Authorized Shares. The Borrower covenants that during the period the conversion
right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from
preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase
Agreement. The Borrower is required at all times to have authorized and reserved eight times the number of shares that is actually
issuable upon full conversion of the Note (based on the Conversion Price of the Notes in effect from time to time)(the “Reserved
Amount”). The Reserved Amount shall be increased from time to time in accordance with the Borrower’s obligations hereunder.
The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition,
if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares
of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same
time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved,
free from preemptive rights, for conversion of the outstanding Notes. The Borrower (i) acknowledges that it has irrevocably instructed
its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its
issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions
of this Note.

 

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If,
at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of
the Note.

 

1.4
Method of Conversion.

 

(a) Mechanics
of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time
from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or
other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and
(B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower.

 

(b) Surrender
of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower
unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records
showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably
satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.
In the event of any dispute or discrepancy, such records of the Borrower shall,
prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if
any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically
surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Holder a
new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request,
representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by acceptance
of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of
this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount
stated on the face hereof.

 

(c) Payment
of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer
involved in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a
name other than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such
shares or other securities or property unless and until the person or persons (other than the Holder or the custodian in
whose street name such shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid
to the Borrower the amount of any such tax or shall have established to the satisfaction of the Borrower that such tax has
been paid.

 

(d) Delivery
of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or
e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as
provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order
of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such
receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof,
surrender of this Note) in accordance with the terms hereof and the Purchase Agreement.

 

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(e) Obligation
of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be
deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the
amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower
defaults on its obligations under this Article I, all rights with respect to the portion of this Note being so converted
shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein
provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s
obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the
absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the
recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any
other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination,
or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance
which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion. The Conversion
Date specified in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received by
the Borrower before 6:00 p.m., New York, New York time, on such date.

 

(f) Delivery
of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast
Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions
contained in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to
electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s
Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

 

(g) Failure
to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other
remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable
upon conversion of this Note is not delivered by the Deadline (other than a failure due to the circumstances described in
Section 1.3 above, which failure shall be governed by such Section) the Borrower shall pay to the Holder $2,000 per day in
cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock. Such cash amount shall be paid
to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by
written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to
the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and
such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note.
The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure,
attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly the
parties acknowledge that the liquidated damages provision contained in this Section 1.4(g) are justified.

 

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1.5
Concerning the Shares. The shares of Common Stock issuable upon conversion
of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under
the Act or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be
in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be
sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii) such shares are sold or
transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”) or (iv) such shares are transferred
to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only
in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Except as otherwise
provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common
Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without
any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for
shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement
or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend,
shall bear a legend substantially in the following form, as appropriate:

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

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The
legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer
legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made
without registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or
(ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder
under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction
as to the number of securities as of a particular date that can then be immediately sold. In the event that the Company does not
accept the opinion of counsel provided by the Holder with respect to the transfer of Securities pursuant to an exemption from
registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section
3.2 of the Note.

 

1.6
Effect of Certain Events.

 

(a) Effect
of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or
substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related
transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other
business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the
survivor shall either: (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the
Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount
equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof.
“Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or
other entity or organization.

 

(b) Adjustment
Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to
conversion of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization,
reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the
same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or
in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a
plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon
conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of
Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have
been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction
(without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made
with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without
limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the
Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter
deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless
(a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen (15)
days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such
record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other
similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the
resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section
1.6(b). The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share
exchanges.

 

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(c) Adjustment
Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire
its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including
any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital
stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled,
upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to
receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock
issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the
determination of shareholders entitled to such Distribution.

 

(d) Adjustment
Due to Dilutive Issuance. If, at any time when any Notes are issued and outstanding, the Borrower issues or sells,
or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock for no consideration
or for a consideration per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances
in connection therewith) less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares
of Common Stock (a “Dilutive Issuance”), then immediately upon the Dilutive Issuance, the Conversion Price will be
reduced to the amount of the consideration per share received by the Borrower in such Dilutive Issuance.

 

The
Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or grants any warrants,
rights or options (not including employee stock option plans), whether or not immediately exercisable, to subscribe for or to
purchase Common Stock or other securities convertible into or exchangeable for Common Stock (“Convertible Securities”)
(such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as “Options”)
and the price per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price
then in effect, then the Conversion Price shall be equal to such price per share. For purposes of the preceding sentence, the
“price per share for which Common Stock is issuable upon the exercise of such Options” is determined by dividing (i)
the total amount, if any, received or receivable by the Borrower as consideration for the issuance or granting of all such Options,
plus the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the exercise of all such Options,
plus, in the case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional
consideration payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible
or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming
full conversion of Convertible Securities, if applicable). No further adjustment to the Conversion Price will be made upon the
actual issuance of such Common Stock upon the exercise of such Options or upon the conversion or exchange of Convertible Securities
issuable upon exercise of such Options.

 

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Additionally,
the Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or sells any Convertible
Securities, whether or not immediately convertible (other than where the same are issuable upon the exercise of Options), and
the price per share for which Common Stock is issuable upon such conversion or exchange is less than the Conversion Price then
in effect, then the Conversion Price shall be equal to such price per share. For the purposes of the preceding sentence, the “price
per share for which Common Stock is issuable upon such conversion or exchange” is determined by dividing (i) the total amount,
if any, received or receivable by the Borrower as consideration for the issuance or sale of all such Convertible Securities, plus
the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the conversion or exchange thereof
at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of
Common Stock issuable upon the conversion or exchange of all such Convertible Securities. No further adjustment to the Conversion
Price will be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities.

 

(e)
Purchase Rights. If, at any time when any Notes are issued and outstanding,
the Borrower issues any convertible securities or rights to purchase stock, warrants, securities or other property (the “Purchase
Rights”) pro rata to the record holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire,
upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such
Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations
on conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such
Purchase Rights or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for
the grant, issue or sale of such Purchase Rights.

 

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(f)
Notice of Adjustments. Upon the occurrence of each adjustment or readjustment
of the Conversion Price as a result of the events described in this Section 1.6, the Borrower, at its expense, shall promptly
compute such adjustment or readjustment and prepare and furnish to the Holder a certificate setting forth such adjustment or readjustment
and showing in detail the facts upon which such adjustment or readjustment is based. The Borrower shall, upon the written request
at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the
Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the amount, if any, of other securities
or property which at the time would be received upon conversion of the Note.

 

1.7 Trading
Market Limitations. Unless permitted by the applicable rules and regulations of the principal securities market on
which the Common Stock is then listed or traded, in no event shall the Borrower issue upon conversion of or otherwise
pursuant to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum number of shares of
Common Stock that the Borrower can issue pursuant to any rule of the principal United States securities market on which the
Common Stock is then traded (the “Maximum Share Amount”), which shall be 4.99% of the total shares outstanding on
the Closing Date (as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock
splits, stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring
after the date hereof. Once the Maximum Share Amount has been issued, if the Borrower fails to eliminate any prohibitions
under applicable law or the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory
organization with jurisdiction over the Borrower or any of its securities on the Borrower’s ability to issue shares of
Common Stock in excess of the Maximum Share Amount, in lieu of any further right to convert this Note, this will be
considered an Event of Default under Section 3.3 of the Note.

 

1.8 Status as Shareholder. Upon submission of a Notice of Conversion by a Holder,
(i) the shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such
Holder’s allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common
Stock and (ii) the Holder’s rights as a Holder of such converted portion of this Note shall cease and terminate, excepting
only the right to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise available
at law or in equity to such Holder because of a failure by the Borrower to comply with the terms of this Note. Notwithstanding
the foregoing, if a Holder has not received certificates for all shares of Common Stock prior to the tenth (10th) business day
after the expiration of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the
Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain
the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Borrower shall, as soon as
practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect
that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights and remedies (including,
without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3 to the extent required thereby
for such Conversion Default and any subsequent Conversion Default and (ii) the right to have the Conversion Price with respect
to subsequent conversions determined in accordance with Section 1.3) for the Borrower’s failure to convert this Note.

 

    	11

    	 

    

 

1.9
Prepayment. Notwithstanding anything to the contrary contained in this Note,
at any time during the periods set forth on the table immediately following this paragraph (the “Prepayment Periods”),
the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the
Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.9. Any notice
of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered
addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which
shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment
(the “Optional Prepayment Date”), the Borrower shall make payment of the Optional Prepayment Amount (as defined below)
to Holder, or upon the order of the Holder as specified by the Holder in writing to the Borrower, at least one (1) business day
prior to the Optional Prepayment Date. If the Borrower exercises its right to prepay the Note, the Borrower shall make payment
to the Holder of an amount in cash (the “Optional Prepayment Amount”) equal to the percentage (“Prepayment Percentage”)
as set forth in the table immediately following this paragraph opposite the applicable Prepayment Period, multiplied by the sum
of: (w) the then outstanding principal amount of this Note plus (x) accrued
and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus
(y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus
(z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. If the Borrower delivers an Optional
Prepayment Notice and fails to pay the Optional Prepayment Amount due to the Holder of the Note within two (2) business days following
the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section 1.9.

 

    	12

    	 

    

 

	Prepayment
    Period	 	Prepayment
    Percentage	 
	 	 	 	 
	     1. The period
    beginning on the Issue Date and ending on the date which is thirty (30) days following the Issue Date.	 	 	115	%
	 	 	 	 	 
	     2. The period beginning on the date which is thirty- one (31) days following the Issue Date and ending on the date which is sixty (60) days following the Issue Date	 	 	120	%
	 	 	 	 	 
	     3. The period beginning on the date which is sixty-one (61) days following the Issue Date and ending on the date which is ninety (90) days following the Issue Date	 	 	125	%
	 	 	 	 	 
	     4. The period beginning on the date that is ninety-one (91) day from the Issue Date and ending one hundred twenty (120) days following the Issue Date	 	 	130	%
	 	 	 	 	 
	     5. The period beginning on the date that is one hundred twenty-one (121) day from the Issue Date and ending one hundred fifty (150) days following the Issue Date	 	 	135	%
	 	 	 	 	 
	     6. The period beginning on the date that is one hundred fifty-one (151) day from the Issue Date and ending one hundred eighty (180) days following the Issue Date	 	 	140	%

 

After
the expiration of one hundred eighty (180) days following the Issue Date, the Borrower shall have no right of prepayment.

 

ARTICLE
II. CERTAIN COVENANTS

 

2.1 Distributions
on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not
without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution
(whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock
solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any
other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders’
rights plan which is approved by a majority of the Borrower’s disinterested directors.

 

2.2
Restriction on Stock Repurchases. So long as the Borrower shall have any obligation
under this Note, the Borrower shall not without the Holder’s written consent redeem, repurchase or otherwise acquire (whether
for cash or in exchange for property or other securities or otherwise) in any one transaction or series of related transactions
any shares of capital stock of the Borrower or any warrants, rights or options to purchase or acquire any such shares.

 

    	13

    	 

    

  

2.3
Borrowings. So long as the Borrower shall have any obligation under this Note,
the Borrower shall not, without the Holder’s written consent, create, incur, assume guarantee, endorse, contingently agree
to purchase or otherwise become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except
by the endorsement of negotiable instruments for deposit or collection, or suffer to exist any liability for borrowed money, except
(a) borrowings in existence or committed on the date hereof and of which the Borrower has informed Holder in writing prior to
the date hereof, (b) indebtedness to trade creditors or financial institutions incurred in the ordinary course of business or
(c) borrowings, the proceeds of which shall be used to repay this Note.

 

2.4
Sale of Assets. So long as the Borrower shall have any obligation under this
Note, the Borrower shall not, without the Holder’s written consent, sell, lease or otherwise dispose of any significant
portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned
on a specified use of the proceeds of disposition.

 

2.5
Advances and Loans. So long as the Borrower shall have any obligation under
this Note, the Borrower shall not, without the Holder’s written consent, lend money, give credit or make advances to any
person, firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates
of the Borrower, except loans, credits or advances (a) in existence or committed on the date hereof and which the Borrower has
informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of $100,000.

 

ARTICLE
III. EVENTS OF DEFAULT

 

If
any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1 Failure to Pay Principal or Interest. The Borrower fails to pay the principal
hereof or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise.

 

    	14

    	 

    

 

3.2 Conversion
and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in
writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in
accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or
in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise
pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays,
impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any
certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as
and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays,
and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in
respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise
pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does
not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written
announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days
after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its
obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed,
hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the
Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall
be paid by the Borrower to the Holder within forty eight (48) hours of a demand from the Holder.

 

3.3
Breach of Covenants. The Borrower breaches any material covenant or other
material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement
and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder.

 

3.4
Breach of Representations and Warranties. Any representation or warranty of
the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith
(including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the
breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect
to this Note or the Purchase Agreement.

 

3.5
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall
make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or
for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed.

 

3.6
Judgments. Any money judgment, writ or similar process shall be entered or
filed against the Borrower or any subsidiary of the Borrower or any of its property or other assets for more than $50,000, and
shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which
consent will not be unreasonably withheld.

 

3.7 Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief
under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any
subsidiary of the Borrower.

 

    	15

    	 

    

 

3.8
Delisting of Common Stock. The Borrower shall fail to maintain the listing
of the Common Stock on at least one of the OTC (which specifically includes the Pink Sheets electronic quotation system) or an
equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American
Stock Exchange.

 

3.9
Failure to Comply with the Exchange Act. The Borrower shall fail to comply
with the reporting requirements of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements
of the Exchange Act.

 

3.10 Liquidation.
Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.11 Cessation
of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay
its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a
“going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.12 Maintenance of Assets. The failure by Borrower to maintain any material intellectual
property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).

 

3.13 Financial
Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC for any date
or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result of
such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse effect on
the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.14 Reverse
Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written
notice to the Holder.

 

3.15 Replacement of Transfer Agent. In the event that the Borrower proposes to
replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable
Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to
the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to
Borrower and the Borrower.

 

    	16

    	 

    

  

3.16
Cross-Default. Notwithstanding anything to the contrary contained in this
Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition
contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the
option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled
(but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements
by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements
and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder,
including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the
related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction
and with all other existing and future debt of Borrower to the Holder.

 

Upon
the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to
pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable
and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum
(as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE
SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER,
AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation
of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon
when due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8,
3.9, 3.11, 3.12, 3.13, 3.14, and/or 3. 15 exercisable through the delivery of written notice to the Borrower by such Holders (the
“Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other
than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall
become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder,
an amount equal to the greater of (i) 150% times the sum
of (w) the then outstanding principal amount of this Note plus
(x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment
Date”) plus (y) Default Interest, if any, on the amounts referred to
in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant
to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus
the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Sum”) or
(ii) the “parity value” of the Default Sum to be prepaid, where parity value means (a) the highest number of shares
of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the
Trading Day immediately preceding the Mandatory Prepayment Date as the “Conversion Date” for purposes of determining
the lowest applicable Conversion Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion
Date in which case such Conversion Date shall be the Conversion Date), multiplied by
(b) the highest Closing Price for the Common Stock during the period beginning on the date of first occurrence of the
Event of Default and ending one day prior to the Mandatory Prepayment Date (the “Default Amount”) and all other amounts
payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are
expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder
shall be entitled to exercise all other rights and remedies available at law or in equity.

 

    	17

    	 

    

  

If
the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable,
then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that
there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then
in effect.

 

ARTICLE
IV. MISCELLANEOUS

 

4.1
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder
in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges.
All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

4.2 Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or
certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such
party shall have specified most recently by written notice. Any notice or other communication required or permitted to be
given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate
confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a
business day during normal business hours where such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b)
on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such
address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall
be:

 

    	18

    	 

    

 

	If
    to the Borrower, to:
	INCEPTION
    MINING, INC.
	5320
    South 900 East, Suite 260
	Murray,
    Utah 84107
	Attn:
    MICHAEL AHLIN, Chief Executive Officer
	facsimile:
	 
	With
    a copy by fax only to (which copy shall not constitute notice):
	[enter
    name of law firm]
	Attn:
    [attorney name]
	[enter
    address line 1]
	[enter
    city, state, zip]
	facsimile:
    [enter fax number]
	 
	If
    to the Holder:
	KBM
    WORLDWIDE, INC.
	111
    Great Neck Road - Suite 216,
	Great
    Neck, NY 11021
	Attn:
    Seth Kramer, President
	e-mail:
    info@kbmworldwide.com
	 
	With
    a copy by fax only to (which copy shall not constitute notice):
	Naidich
    Wurman LLP
	111
    Great Neck Road - Suite 214
	Great
    Neck, NY 11021
	Att:
    Judah A. Eisner, Esq.
	facsimile:
    516-466-3555
	e-mail:
    rnaidich@nwlaw.com

 

4.3 Amendments.
This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The
term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the
other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as
so amended or supplemented.

 

4.4 Assignability.
This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder
and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule
501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in
connection with a bona fide margin account or other lending
arrangement.

 

    	19

    	 

    

 

4.5 Cost
of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of
collection, including reasonable attorneys’ fees.

 

4.6
Governing Law. This Note shall be governed by and construed in accordance
with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against
the other concerning the transactions contemplated by this Note shall be brought only in the state courts of New York or in the
federal courts located in the state and county of Nassau. The parties to this Note hereby irrevocably waive any objection to jurisdiction
and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based
upon forum non conveniens. The Borrower and Holder waive trial by jury. The
prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event
that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any
applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith
and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable
under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably
waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this
Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any other manner permitted by law.

 

4.7
Certain Amounts. Whenever pursuant to this Note the Borrower is required to
pay an amount in excess of the outstanding principal amount (or the portion thereof required to be paid at that time) plus accrued
and unpaid interest plus Default Interest on such interest, the Borrower and the Holder agree that the actual damages to the Holder
from the receipt of cash payment on this Note may be difficult to determine and the amount to be so paid by the Borrower represents
stipulated damages and not a penalty and is intended to compensate the Holder in part for loss of the opportunity to convert this
Note and to earn a return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of
the price paid for such shares pursuant to this Note. The Borrower and the Holder hereby agree that such amount of stipulated
damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity
to convert this Note into shares of Common Stock.

 

4.8
Purchase Agreement. By its acceptance of this Note, each party agrees to be
bound by the applicable terms of the Purchase Agreement.

 

    	20

    	 

    

  

4.9 Notice
of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder
of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall provide the
Holder with prior notification of any meeting of the Borrower’s shareholders (and copies of proxy materials and other
information sent to shareholders). In the event of any taking by the Borrower of a record of its shareholders for the purpose
of determining shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe
for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any
share of any class or any other securities or property, or to receive any other right, or for the purpose of determining
shareholders who are entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially all
of the assets of the Borrower or any proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail
a notice to the Holder, at least twenty (20) days prior to the record date specified therein (or thirty (30) days prior to
the consummation of the transaction or event, whichever is earlier), of the date on which any such record is to be taken for
the purpose of such dividend, distribution, right or other event, and a brief statement regarding the amount and character of
such dividend, distribution, right or other event to the extent known at such time. The Borrower shall make a public
announcement of any event requiring notification to the Holder hereunder substantially simultaneously with the notification
to the Holder in accordance with the terms of this Section 4.9.

 

4.10 Remedies. The Borrower acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby.
Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate
and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall
be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein,
to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms
and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required.

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this December 31, 2014.

 

	INCEPTION
    MINING, INC.	 
	 	 
	By:	/s/
    MICHAEL AHLIN	 
	 	MICHAEL
    AHLIN	 
	 	Chief
    Executive Officer	 

 

    	21

    	 

    

 

EXHIBIT
A -- NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert $______________________ principal amount of the Note (defined below) into that number
of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth
below, of INCEPTION MINING, INC., a Nevada corporation (the “Borrower”) according to the conditions of the
convertible note of the Borrower dated as of December 31, 2014 (the “Note”), as of the date written below. No fee
will be charged to the Holder for any conversion, except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	 	[  ]	The Borrower shall
    electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned
    or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
	 	 	 
	 	 	Name of DTC Prime
    Broker:
	 	 	Account Number:
	 	 	 
	 	[  ]	The undersigned
    hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below
    (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or,
    if additional space is necessary, on an attachment hereto: 

 

KBM
WORLDWIDE, INC.

111
Great Neck Road - Suite 216,

Great
Neck, NY 11021

Attention:
Certificate Delivery

e-mail:
info@kbmworldwide.com  

 

	 	Date of Conversion:	 	 
	 	Applicable Conversion
    Price:	$	 
	 	Number of Shares
    of Common Stock to be Issued Pursuant to Conversion of the Notes:	 	 
	 	Amount of Principal
    Balance Due remaining Under the Note after this conversion:	 	 

 

	 	KBM WORLDWIDE, INC.	 
	 	 	 
	 	By:		 
	 	Name:	Seth Kramer	 
	 	Title:	President	 
	 	Date:	December 31, 2014	 

 

    	22EXHIBIT 4.1

 

HUDSON GLOBAL, INC.

 

and

 

COMPUTERSHARE INC.

 

Rights Agent

  

 

 

AMENDED AND RESTATED RIGHTS AGREEMENT

 

Dated as of January 15, 2015

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	Section 1.	Certain Definitions	1
	 	 	 
	Section 2.	Appointment of Rights Agent	7
	 	 	 
	Section 3.	Issue of Right Certificates.	7
	 	 	 
	Section 4.	Form of Right Certificates	8
	 	 	 
	Section 5.	Countersignature and Registration.	9
	 	 	 
	Section 6.	Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.	10
	 	 	 
	Section 7.	Exercise of Rights; Purchase Price; Expiration Date of Rights.	10
	 	 	 
	Section 8.	Cancellation and Destruction of Right Certificates	11
	 	 	 
	Section 9.	Reservation and Availability of Preferred Shares.	12
	 	 	 
	Section 10.	Preferred Shares Record Date	13
	 	 	 
	Section 11.	Adjustment of Purchase Price, Number of Shares or Number of Rights	13
	 	 	 
	Section 12.	Certificate of Adjusted Purchase Price or Number of Shares	18
	 	 	 
	Section 13.	[Reserved].	19
	 	 	 
	Section 14.	Fractional Rights and Fractional Shares.	19
	 	 	 
	Section 15.	Rights of Action	20
	 	 	 
	Section 16.	Agreement of Right Holders	20
	 	 	 
	Section 17.	Right Certificate Holder Not Deemed a Stockholder	21
	 	 	 
	Section 18.	Concerning the Rights Agent.	21
	 	 	 
	Section 19.	Merger or Consolidation or Change of Name of Rights Agent.	21
	 	 	 
	Section 20.	Duties of Rights Agent	22
	 	 	 
	Section 21.	Change of Rights Agent	24
	 	 	 
	Section 22.	Issuance of New Right Certificates	24
	 	 	 
	Section 23.	Redemption.	24
	 	 	 
	Section 24.	Exchange.	25

 

    	i

    	 

    

 

	Section 25.	Process to Seek Exemption Prior to Distribution Date.	26
	 	 	 
	Section 26.	Notice of Certain Events.	28
	 	 	 
	Section 27.	Notices.	28
	 	 	 
	Section 28.	Supplements and Amendments	29
	 	 	 
	Section 29.	Successors	29
	 	 	 
	Section 30.	Benefits of this Agreement	29
	 	 	 
	Section 31.	Severability	29
	 	 	 
	Section 32.	Governing Law	30
	 	 	 
	Section 33.	Counterparts	30
	 	 	 
	Section 34.	Descriptive Headings; Interpretation	30
	 	 	 
	Section 35.	Determinations and Actions by the Board	30
	 	 	 
	Section 36.	Book Entry	30
	 	 	 
	Section 37.	Amendment and Restatement	30
	 	 	 
	Section 38.	Force Majeure	31

 

Exhibit A – Form of Representation
and Request Letter

 

Exhibit B – Terms of Series A Junior
Participating Preferred Stock

 

Exhibit C - Form of Right Certificate

 

Exhibit D - Summary of Rights to Purchase
Preferred Shares

 

    	ii

    	 

    

 

AMENDED AND RESTATED RIGHTS AGREEMENT

 

THIS AMENDED AND RESTATED
RIGHTS AGREEMENT (this “Agreement”), is dated as of January 15, 2015, between HUDSON GLOBAL, INC., a Delaware
corporation (the “Company”), and COMPUTERSHARE INC., a Delaware corporation, successor rights agent to THE
BANK OF NEW YORK (the “Rights Agent”).

 

WHEREAS, the Board
of Directors of the Company authorized a Rights Agreement, dated as of February 2, 2005 (the “Original Rights Agreement”),
declared a dividend of one preferred share purchase right (a “Right”) for each Common Share (as hereinafter defined)
of the Company outstanding upon the close of business on February 28, 2005 (the “Record Date”) payable upon the close
of business on such date, and authorized and directed the issuance of one Right with respect to each Common Share issued between
the Record Date and the earliest of certain dates specified in the Original Rights Agreement, each Right representing the right
to purchase one one-hundredth of a Preferred Share (as hereinafter defined) of the Company upon the terms and subject to the conditions
set forth in the Original Rights Agreement;

 

WHEREAS, if the
Company experiences an “ownership change,” as defined in Section 382 of the Internal Revenue Code of 1986, as amended
(the “Code”), then its ability to use its Tax Benefits (as hereinafter defined) for United States federal income tax
purposes could be substantially limited; and

 

WHEREAS, the Company
views its Tax Benefits as valuable assets of the Company, which are likely to inure to the benefit of the Company and its stockholders,
and the Company believes that it is in the best interests of the Company and its stockholders that the Company provide for the
protection of the Company’s Tax Benefits upon the terms and conditions set forth herein.

 

NOW, THEREFORE,
in consideration of the premises and the mutual agreements herein set forth, the Company and the Rights Agent hereby amend and
restate the Original Rights Agreement to provide as follows:

 

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

 

(a)          “Acquiring
Person” shall mean any Person that is or has become, by itself or together with its Affiliates and Associates, a Beneficial
Owner of 4.99% or more of the Common Shares then outstanding, but shall not include:

 

(i)          any
Related Person;

 

(ii)         any
Grandfathered Person; provided, however, that, if the Percentage Stock Ownership of any Person that had qualified as a Grandfathered
Person ceases to be at least 4.99%, then such Person shall not be deemed to be an Acquiring Person until such later time (if any)
as the Percentage Stock Ownership of such Person is 4.99% or more, and then only if such Person does not qualify (A) as an Exempt
Person, (B) for the exception in subsection (iv) of this Section 1(a), (C) as a Grandfathered Person pursuant to subsection (m)(ii)
of this Section 1, or (D) in the case of any Person who was a Grandfathered Person pursuant to subsection (m)(i) of this Section
1, as a Grandfathered Person pursuant to subsection (m)(ii) of this Section 1, which shall be applied to such Person as if the
Percentage Stock Ownership of such Person at the Original Effective Time had been less than 4.99%;

 

    	 

    	 

    

 

(iii)        any
Exempt Person;

 

(iv)        any
Person that the Company determines, in its sole discretion, has, at or after the Original Effective Time, by itself or together
with its Affiliates and Associates, inadvertently become a Beneficial Owner of 4.99% or more of the Common Shares then outstanding
(or has inadvertently failed to continue to qualify as a Grandfathered Person or Exempt Person), provided that such Person
promptly enters into, and delivers to the Company, an irrevocable commitment to divest, or cause its Affiliates and Associates
to divest, promptly after (A) if the Person delivers a representation letter pursuant to clause (i) of Section 1(i) and requests
a determination of the Company pursuant to clause (ii) of Section 1(i), then the time, if any, upon which the Company informs the
Person of its adverse determination with respect to such request (with no divestiture being required if the Person is determined
to be an Exempt Person), or (B) if the Person does not both deliver a representation letter pursuant to clause (i) of Section 1(i)
and request a determination of the Company pursuant to clause (ii) of Section 1(i), then the time of such commitment, and thereafter
such Person or its Affiliates and Associates divest to the extent and promptly after the time specified by the foregoing clause
(A) or (B) (without exercising or retaining any power, including voting power, with respect to such Common Shares (or other securities
the beneficial ownership of which by a Person also results in such Person beneficially owning Common Shares)) sufficient Common
Shares (or other securities the beneficial ownership of which by a Person also results in such Person beneficially owning Common
Shares) so that such Person’s Percentage Stock Ownership is less than 4.99% (or, in the case of any Person who or which has
inadvertently failed to continue to qualify as a Grandfathered Person or Exempt Person, Common Shares (or other securities the
beneficial ownership of which by a Person also results in such Person beneficially owning Common Shares) in an amount sufficient
to reduce such Person’s beneficial ownership of Common Shares by the number of Common Shares that caused such Person to so
fail to qualify as a Grandfathered Person or Exempt Person, as the case may be); provided, further, that any such Person
shall cease to qualify for the exclusion from the definition of “Acquiring Person” contained in this subsection (iv)
from and after such time (if any) as the Person, together with its Affiliates and Associates, subsequently becomes a Beneficial
Owner of 4.99% or more of the Common Shares then outstanding (or fails to continue to qualify as a Grandfathered Person or Exempt
Person), unless the Person independently meets the conditions set forth in this subsection (iv) with respect to the circumstances
relating to the Person, together with its Affiliates and Associates, subsequently becoming a Beneficial Owner of 4.99% or more
of the Common Shares then outstanding (or failing to continue to qualify as a Grandfathered Person or Exempt Person); and

 

(v)         any
Person that has, by itself or together with its Affiliates and Associates, become a Beneficial Owner of 4.99% or more of the Common
Shares then outstanding (or has failed to continue to qualify as a Grandfathered Person or Exempt Person) as a result of one or
more transactions that are determined to be Exempt Transactions, unless and until such time as such Person or transaction(s) no
longer satisfy the terms or conditions, if any, that the Board prescribed in its determination under subsection (i) of this Section
1 with respect to such transaction(s); provided, however, that, if the Percentage Stock Ownership of any Person that had
qualified for the exemption under this subsection (v) ceases to be at least 4.99%, then such Person shall not be deemed to be an
Acquiring Person until such later time (if any) as the Percentage Stock Ownership of such Person is 4.99% or more, and then only
if such Person does not qualify (A) as an Exempt Person, (B) for the exception in subsection (iv) of this Section 1(a), (C) as
a Grandfathered Person pursuant to subsection (m)(ii) of this Section 1, or (D) for an additional exception under this subsection
(v).

 

    	2

    	 

    

 

If officers of the Company
determine on behalf of the Company that a Person has, at or after the Original Effective Time, by itself or together with its Affiliates
and Associates, inadvertently become a Beneficial Owner of 4.99% or more of the Common Shares (or has inadvertently failed to continue
to qualify as a Grandfathered Person or Exempt Person) pursuant to subsection (iv) of this Section 1(a), then such officers shall
promptly notify the Board of such determination. Notwithstanding the foregoing, a failure to promptly make such a notification
shall not impact the effectiveness of such determination.

 

(b)          “Affiliate”
and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and
Regulations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as in effect on the date of
this Agreement and, to the extent not included within the foregoing provisions of this Section 1(b), shall also include, with respect
to any Person, any other Person whose Common Shares are treated, for purposes of Section 382 of the Code and the Treasury Regulations
thereunder, as being (i) owned by such first Person (or by a Person or group of Persons to which the Common Shares owned by such
first Person are attributed pursuant to Treasury Regulation Section 1.382-2T(h)) or (ii) owned by the same “entity”
(as defined in the second sentence of Treasury Regulation Section 1.382-3(a)(1)(i)) as is deemed to own the Common Shares owned
by such first Person; provided, however, that a Person shall not be deemed to be an Affiliate or Associate of another Person
solely because either or both Persons are or were directors or officers of the Company.

 

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

 

(i)          which
such Person or any of such Person’s Affiliates or Associates beneficially owns, directly or indirectly;

 

(ii)         which
such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right or the obligation to
acquire (whether such right is exercisable, or such obligation is required to be performed, immediately or only after the passage
of time) pursuant to any agreement, arrangement or understanding (whether or not in writing) or upon the exercise of conversion
rights, exchange rights, warrants, options, or other rights (in each case, other than upon exercise or exchange of the Rights);
provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, securities
tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or
Associates until such tendered securities are accepted for purchase or exchange;

 

(iii)        which
such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has or shares the right to vote or
dispose of, or has “beneficial ownership” (as defined under Rule 13d-3 of the General Rules and Regulations under the
Exchange Act) of, including pursuant to any agreement, arrangement or understanding (whether or not in writing); or

 

(iv)        with
respect to which any other Person is a Beneficial Owner, if the Person referred to in the introductory clause of this Section 1(c)
or any of such Person’s Affiliates or Associates has any agreement, arrangement or understanding (whether or not in writing)
with such other Person (or any of such other Person’s Affiliates or Associates) with respect to acquiring, holding, voting
or disposing of any securities of the Company;

 

    	3

    	 

    

 

provided, however,
that the preceding provisions of this Section 1(c) shall not be applied to cause a Person to be deemed the “Beneficial
Owner” of, or to “beneficially own,” any security (A) solely because such Person has the right to vote such security
pursuant to an agreement, arrangement or understanding (whether or not in writing) which (1) arises solely from a revocable proxy
given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable
rules and regulations under the Exchange Act, and (2) is not also then reportable on Schedule 13D under the Exchange Act (or any
comparable or successor report), or (B) if such beneficial ownership arises solely as a result of such Person’s status as
a “clearing agency,” as defined in Section 3(a)(23) of the Exchange Act; provided, further, that nothing in
this Section 1(c) shall cause a Person engaged in business as an underwriter of securities or member of a selling group to be a
Beneficial Owner of, or to “beneficially own,” any securities acquired through such Person’s participation in
good faith in an underwriting syndicate until the expiration of 40 calendar days after the date of such acquisition, or such later
date as the directors of the Company may determine in any specific case; and provided, further, that the transfer of beneficial
ownership of Common Shares to any Person without any consideration for such transfer being given by such Person shall not result
in such Person becoming a Beneficial Owner of any additional Common Shares until the Person accepts such transfer. Anything in
this Agreement to the contrary notwithstanding, to the extent not within the foregoing provisions of this Section 1(c), a Person
shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially own” or have “beneficial
ownership” of, any securities that are owned by another Person and that are treated, for purposes of Section 382 of the Code
and the Treasury Regulations thereunder, as being (x) owned by such first Person (or by a Person or group of Persons to which the
securities owned by such first Person are attributed pursuant to Treasury Regulation Section 1.382-2T(h)), or (y) owned by the
same “entity” (as defined in the second sentence of Treasury Regulation Section 1.382-3(a)(1)(i)) as is deemed to own
the securities owned by such first Person.

 

(d)          “Board”
shall mean the Board of Directors of the Company.

 

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

 

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

 

(g)          “Common
Shares” shall mean the shares of common stock, par value $.001 per share, of the Company.

 

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

 

    	4

    	 

    

 

(i)          “Exempt
Person” shall mean any Person (i) who (A) delivers to the Company a letter that, as determined by the Company in its sole
discretion, is substantially in the form attached hereto as Exhibit A or (B) is an Affiliate or Associate of another Person who
delivers to the Company a letter described in clause (i)(A) and (ii) whose beneficial ownership of 4.99% or more of the outstanding
Common Shares would not, as determined (either (1) prior to the time such Person becomes the Beneficial Owner of 4.99% or more
of the Common Shares then outstanding or (2) if the Company determines pursuant to Section 1(a)(iv) that such Person (by itself
or together with its Affiliates and Associates) had inadvertently become a Beneficial Owner of 4.99% or more of the Common Shares
then outstanding, then after the time such Person becomes the Beneficial Owner of 4.99% or more of the Common Shares then outstanding)
by the Company in its sole discretion, jeopardize or endanger the availability to the Company of the Tax Benefits; provided,
however, that such Person shall not be an Exempt Person unless and until it, or its Affiliate or Associate who delivers a letter
described in clause (i), has received written notice of such determination by the Company under this clause (ii); provided,
further, that such Person shall cease to be an Exempt Person from and after the earlier of such time (if any) as (I) in respect
of the letter that such Person, or its Affiliate or Associate, delivered pursuant to clause (i), a representation or warranty of
such Person, or its Affiliate or Associate, in such letter was not true and correct when made, a representation or warranty of
such Person, or its Affiliate or Associate, in such letter that was to remain true and correct after the date of the letter as
contemplated therein ceases to remain true and correct or such Person, or its Affiliate or Associate, ceases to comply with a covenant
contained in such letter, or (II) such Person becomes the Beneficial Owner of 10% or more of the Common Shares then outstanding,
other than by virtue of any increase that is a result of an acquisition of Common Shares by the Company. Notwithstanding the foregoing,
a Grandfathered Person shall not be precluded from becoming an Exempt Person (as defined in the preceding sentence, giving effect
to this sentence) prior to the time at which such Grandfathered Person would otherwise become an Acquiring Person.

 

If any Person that had
qualified as an Exempt Person ceases to so qualify, then, for purposes of Section 1(a), such Person shall be deemed to have become,
as of the time the Person ceased to qualify as an Exempt Person, a Beneficial Owner of the Common Shares that such Person and such
Person’s Affiliates and Associates then beneficially own.

 

(j)          “Exempt
Transaction” shall mean any transaction that the Board, in its sole discretion and on such terms and conditions as the Board
may in its sole discretion prescribe, should have the consequences of an Exempt Transaction under this Agreement.

 

(k)          “Expiration
Date” means the earliest of (i) the close of business on the date of the Company’s 2015 annual meeting of stockholders
(the “2015 Annual Meeting”) if the Company’s stockholders do not approve this Agreement by the affirmative vote
of the majority of Common Shares present in person or represented by proxy at the 2015 Annual Meeting (or any adjournment or postponement
thereof); (ii) the Final Expiration Date; (iii) the time at which the Rights are redeemed as provided in Section 23 hereof
(the “Redemption Date”); (iv) the time at which the Rights are exchanged as provided in Section 24 hereof; (v)
the repeal of Section 382 of the Code if the Board determines that this Agreement is no longer necessary for the preservation of
the Tax Benefits; and (vi) the beginning of a taxable year of the Company to which the Board determines that no Tax Benefits may
be carried forward.

 

(l)          “Final
Expiration Date” shall mean the close of business on January 15, 2018.

 

(m)          “Grandfathered
Person” shall mean:

 

(i)          any
Person who does not qualify as an “Acquiring Person” (as defined in the Original Rights Agreement) immediately prior
to the Original Effective Time and who, at the Original Effective Time, was the Beneficial Owner of 4.99% or more of the Common
Shares outstanding at the Original Effective Time; provided, however, that any such Person shall cease to be a Grandfathered
Person from and after such time (if any) as the Person’s Percentage Stock Ownership shall be increased from such Person’s
lowest Percentage Stock Ownership at or after the Original Effective Time, other than any increase pursuant to or as a result of
an acquisition of Common Shares by the Company; and

 

    	5

    	 

    

 

(ii)         any
Person who (A) at the Original Effective Time, was not the Beneficial Owner of 4.99% or more of the Common Shares outstanding at
the Original Effective Time and (B) if the definition of Acquiring Person did not include an exclusion for any Grandfathered Person,
would qualify as an Acquiring Person after the Original Effective Time as a result of an acquisition of Common Shares by the Company;
provided, however, that any such Person shall cease to be a Grandfathered Person from and after such time (if any) as the
Person’s Percentage Stock Ownership shall be increased from such Person’s lowest Percentage Stock Ownership on or after
the date of the first occurrence of any acquisition of Common Shares by the Company, other than any increase pursuant to or as
a result of a subsequent acquisition of Common Shares by the Company.

 

If any Person that had
qualified as a Grandfathered Person ceases to so qualify, then, for purposes of Section 1(a), such Person and such Person’s
Affiliates and Associates shall be deemed to have become, as of the time the Person ceased to qualify as a Grandfathered Person,
a Beneficial Owner of the Common Shares that such Person and such Person’s Affiliates and Associates then beneficially own.

 

(n)          “Original
Effective Time” shall mean the close of business on February 2, 2005.

 

(o)          “Percentage
Stock Ownership” of a Person shall mean the percentage calculated by dividing (i) the number of Common Shares as to which
such Person, together with its Affiliates and Associates, is a Beneficial Owner, divided by (ii) the number of Common Shares then
outstanding.

 

(p)          “Person”
shall mean any individual, firm, corporation, partnership, trust, association, limited liability company, limited liability partnership,
governmental entity, or other entity, or any group of any one or more of the foregoing making a “coordinated acquisition”
of shares or otherwise treated as an entity within the meaning of Treasury Regulation Section 1.382-3(a)(1)(i) and shall include
any successor (by merger or otherwise) of any such entity.

 

(q)          “Preferred
Shares” shall mean shares of Series A Junior Participating Preferred Stock, par value $.001 per share, of the Company having
the preferences and rights set forth in Exhibit B attached to this Agreement.

 

(r)          “Redemption
Date” shall have the meaning set forth in subsection (k) of this Section 1.

 

(s)          “Related
Person” shall mean the Company, any Subsidiary of the Company (in each case, including, without limitation, in any fiduciary
capacity), any employee benefit plan or compensation arrangement of the Company or any Subsidiary of the Company, or any entity
or trustee holding Common Shares to the extent organized, appointed or established by the Company or any Subsidiary of the Company
for or pursuant to the terms of any such employee benefit plan or compensation arrangement.

 

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

 

(u)          “Shares
Acquisition Date” shall mean (i) the first date of public announcement (which, for purposes of this definition, shall include,
without limitation, a report filed or amended pursuant to Section 13(d) under the Exchange Act, but not a report filed or
amended pursuant to Rule 13f-1 of the General Rules and Regulations under the Exchange Act) by the Company or a Person or an Affiliate
of the Person that the Person has become an Acquiring Person or (ii) if earlier, the first date the Board concludes that a Person
has become an Acquiring Person.

 

(v)         “Subsidiary”
of any Person shall mean any other Person of which securities or other ownership interests having ordinary voting power, in the
absence of contingencies, to elect a majority of the board of directors or other Persons performing similar functions are, at the
time, directly or indirectly owned by such first Person.

 

    	6

    	 

    

 

(w)          “Tax
Benefits” shall mean the net operating loss carryovers, capital loss carryovers, general business credit carryovers, alternative
minimum tax credit carryovers and foreign tax credit carryovers, as well as any loss or deduction attributable to a “net
unrealized built-in loss” within the meaning of Section 382 of the Code, of the Company or any of its Subsidiaries.

 

(x)          “Treasury
Regulation” shall mean a final, proposed or temporary regulation of the United States Department of Treasury promulgated
under the Code.

 

Section 2.          Appointment
of Rights Agent. The Company hereby appoints the Rights Agent to act as rights agent for the Company in accordance
with the express terms and conditions hereof (and no implied terms and conditions), and the Rights Agent hereby accepts such appointment.
The Company may from time to time appoint such co-rights agents as it may deem necessary or desirable, upon ten (10) days’
prior written notice to the Rights Agent setting forth the respective duties of the Rights Agent and any co-rights agent. The
Rights Agent shall have no duty to supervise, and shall in no event be liable for, the acts or omissions of any such co-rights
agents.

 

Section 3.          Issue
of Right Certificates.

 

(a)          Until
the earlier of (i) the tenth day after the Shares Acquisition Date or (ii) the tenth Business Day (or such later date as may be
determined by action of the Board prior to such time as any Person becomes an Acquiring Person) after the date that a tender or
exchange offer is first published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and Regulations under
the Exchange Act if, upon consummation thereof, the Person publishing, sending or giving such tender or exchange offer would become
an Acquiring Person (the earlier of such dates being herein referred to as the “Distribution Date”), (x) the Rights
will be evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for Common Shares registered in the
names of the holders thereof (which certificates shall also be deemed to be Right Certificates) and not by separate Right Certificates
(or, for book entry Common Shares , by notations of such shares in the respective accounts), and (y) the right to receive Right
Certificates will be transferable only in connection with the transfer of Common Shares; provided, however, that, if a tender
or exchange offer is terminated prior to the occurrence of a Distribution Date, then no Distribution Date shall occur as a result
of such tender or exchange offer. As soon as practicable after the Distribution Date, the Company will prepare and execute, the
Rights Agent will countersign, and the Company will send or cause to be sent (and the Rights Agent will, if requested and provided
with all necessary information and documentation, in form and substance reasonably satisfactory to the Rights Agent, send) by overnight
delivery service or registered or certified mail, postage prepaid, to each record holder of Common Shares as of the close of business
on the Distribution Date, at the address of such holder shown on the records of the Company or the transfer agent or registrar
for the Common Shares, a Right Certificate, in substantially the form of Exhibit C hereto (a “Right Certificate”),
evidencing one Right for each Common Share so held. As of the Distribution Date, the Rights will be evidenced solely by such Right
Certificates. The Company shall promptly notify the Rights Agent in writing upon the occurrence of the Distribution Date and, if
such notification is given orally, the Company shall confirm the same in writing within two (2) Business Days. Until such written
notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that the Distribution Date has
not occurred.

 

    	7

    	 

    

 

(b)          The
Company has prepared a Summary of Rights to Purchase Preferred Shares, attached as Exhibit D hereto (the “Summary of Rights”),
a copy of which is available free of charge from the Company. With respect to certificates or book entries for Common Shares outstanding
as of the Record Date, until the Distribution Date, the Rights will be evidenced by such respective certificates or book entries
registered in the names of the holders thereof. Until the Distribution Date (or the Expiration Date, if earlier), the surrender
for transfer of any certificate for Common Shares or book entry Common Shares outstanding on the Record Date, with or without a
copy of the Summary of Rights attached thereto, shall also constitute the transfer of the Rights associated with the Common Shares
represented thereby.

 

(c)          Certificates
for Common Shares that become outstanding (including, without limitation, certificates for reacquired Common Shares referred to
in the last sentence of this paragraph (c) and certificates issued on the transfer of Common Shares) after the Record Date but
prior to the earlier of the Distribution Date and the Expiration Date shall have impressed on, printed on, written on or otherwise
affixed to them a legend in substantially the following form (provided, however, that certificates for Common Shares in
existence on the date of this Agreement may bear the legend required by the Original Rights Agreement):

 

			This certificate also evidences and entitles the holder hereof to certain rights as set forth in
an Amended and Restated Rights Agreement between Hudson Global, Inc. and Computershare Inc., dated as of January 15, 2015, and
as such agreement may be amended (the “Rights Agreement”), the terms of which are hereby incorporated herein by reference
and a copy of which is on file at the principal executive offices of Hudson Global, Inc. Under certain circumstances, as set forth
in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by this certificate.
Hudson Global, Inc. will mail to the holder of this certificate a copy of the Rights Agreement without charge after receipt of
a written request therefor. Under certain circumstances set forth in the Rights Agreement, Rights issued to, or beneficially owned
by, an Acquiring Person or any Affiliate or Associate thereof (as such terms are defined in the Rights Agreement), whether beneficially
owned by such person or any subsequent holder, shall become null and void.

 

With respect to such certificates containing
the foregoing legend, until the Distribution Date, the Rights associated with the Common Shares represented by such certificates
shall be evidenced by such certificates alone, and the surrender for transfer of any such certificate shall also constitute the
transfer of the Rights associated with the Common Shares represented thereby. Similarly, during such time periods, transfers of
shares participating in the direct registration system shall also be deemed to be transfers of the associated Rights. In the case
of any shares participating in the direct registration system, the Company shall cause the transfer agent for the Common Shares
to include on each direct registration account statement with respect thereto issued prior to the earlier of the Distribution Date
and the Redemption Date a notation to the effect that references to Common Shares also includes the associated Rights. To the extent
that Common Shares of the Company are not represented by certificates, references in this Agreement to certificates shall be deemed
to refer to the notations in the accounts reflecting ownership of book entry shares. In the event that the Company purchases or
acquires any Common Shares after the Record Date but prior to the Distribution Date, any Rights associated with such Common Shares
shall be deemed cancelled and retired so that the Company shall not be entitled to exercise any Rights associated with the Common
Shares which are no longer outstanding.

 

Section 4.          Form
of Right Certificates. The Right Certificates (and the forms of election to purchase Preferred Shares and of assignment
to be printed on the reverse thereof) shall be substantially the same as Exhibit C hereto and may have such marks of identification
or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate (which shall not
affect the rights, duties, liabilities, protections or responsibilities of the Rights Agent hereunder) and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any applicable law or with any applicable rule or
regulation made pursuant thereto or with any applicable rule or regulation of any stock exchange or the Financial Industry Regulatory
Authority, or to conform to usage. Subject to the provisions of Section 22 hereof, the Right Certificates shall entitle the
holders thereof to purchase such number of one one-hundredths of a Preferred Share as shall be set forth therein at the price
per one one-hundredth of a Preferred Share set forth therein, but the amount and type of securities purchasable upon exercise
of each Right and such purchase price shall be subject to adjustment as provided herein (such purchase price, as so adjusted,
the “Purchase Price”).

 

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Section 5.          Countersignature
and Registration.

 

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

 

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

 

(c)          Any
provisions of this Agreement to the contrary notwithstanding, the Company and the Rights Agent may amend this Agreement to provide
for uncertificated Rights in addition to or in place of Rights evidenced by Right Certificates.

 

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

 

(a)          Subject
to the provisions of Section 14 hereof, at any time after the close of business on the Distribution Date, and at or prior
to the close of business on the Expiration Date, any Right Certificate or Right Certificates (other than Right Certificates representing
Rights that have become void pursuant to Section 11(a)(ii) hereof or that have been redeemed or exchanged pursuant to Section
23 or Section 24 hereof) may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates,
entitling the registered holder to purchase a like number of one one-hundredths of a Preferred Share as the Right Certificate or
Right Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up, combine
or exchange any Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent, and shall
surrender the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the office or offices
of the Rights Agent designated for such purpose, along with a signature guarantee and such other and further documentation as the
Company or the Rights Agent may reasonably request. Neither the Rights Agent nor the Company shall be obligated to take any action
whatsoever with respect to the transfer of any such surrendered Right Certificate until the registered holder has properly completed
and duly signed the certificate contained in the form of assignment on the reverse side of such Right Certificate and has provided
such additional evidence as the Company or the Rights Agent may reasonably request. Pursuant to Section 9(d) hereof, the Company
or the Rights Agent may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection
with any transfer, split up, combination or exchange of Right Certificates. The Rights Agent shall not have any duty or obligation
to take any action under any section of this Agreement that requires the payment of taxes and/or charges unless and until it is
satisfied that all such payments have been made, and the Rights Agent shall promptly forward any such sum collected by it to the
Company or to such Persons as the Company may specify by written notice. Thereupon the Rights Agent, subject to the provisions
of this Agreement, shall countersign and deliver to the Person entitled thereto a Right Certificate or Right Certificates, as the
case may be, as so requested.

 

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

 

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

 

(a)          The
registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein) in whole
or in part at any time after the Distribution Date upon surrender of the Right Certificate, with the form of election to purchase
and the certificate on the reverse side thereof properly completed and duly executed (with such signature duly guaranteed), to
the Rights Agent at the office or offices of the Rights Agent designated for such purpose, together with payment of the Purchase
Price for each one one-hundredth of a Preferred Share as to which the Rights are exercised, at or prior to the Expiration Date,
and an amount equal to any tax or charge required to be paid under Section 9(d).

 

(b)          The
Purchase Price for each one one-hundredth of a Preferred Share pursuant to the exercise of a Right shall initially be $8.50, shall
be subject to adjustment from time to time as provided in Section 11 hereof and shall be payable in lawful money of the United
States of America or in Common Shares in accordance with paragraph (c) below.

 

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(c)          Upon
receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase properly completed and duly
executed, accompanied by payment of the Purchase Price for the shares to be purchased and an amount equal to any applicable transfer
tax required to be paid by the holder of such Right Certificate in accordance with Section 9 hereof, as set forth below, the
Rights Agent shall thereupon promptly (i) (A) requisition from any transfer agent of the Preferred Shares certificates for the
number of Preferred Shares to be purchased, and the Company hereby irrevocably authorizes and directs any such transfer agent to
comply with all such requests, or (B) requisition from the depositary agent depositary receipts representing such number of one
one-hundredths of a Preferred Share as are to be purchased (in which case certificates for the Preferred Shares represented by
such receipts shall be deposited by the transfer agent with the depositary agent), (ii) when necessary to comply with this
Agreement, requisition from the Company the amount of cash to be paid in lieu of issuance of fractional shares in accordance with
Section 14 hereof, (iii) after receipt of such certificates or depositary receipts, cause the same to be delivered to or upon
the order of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder
and (iv) when necessary to comply with this Agreement, after receipt, deliver such cash to or upon the order of the registered
holder of such Right Certificate. The payment of the Purchase Price (as such amount may be reduced pursuant to Section 11(a)(iii)
hereof) shall be made by certified check, cashier’s check, bank draft or money order payable to the order of the Company,
except that, if so provided by the Board, the payment of the Purchase Price following the occurrence of a Section 11(a)(ii)
Event (as hereinafter defined) may be made wholly or in part by delivery of a certificate or certificates (with appropriate stock
powers executed in blank attached thereto) evidencing a number of Common Shares equal to the then Purchase Price divided by the
closing price (as determined pursuant to Section 11(d) hereof) per Common Share on the Trading Day (as hereinafter defined)
immediately preceding the date of such exercise. If the Company is obligated to issue other securities of the Company, pay cash
and/or distribute other property pursuant to Section 11(a) hereof, then the Company will make all arrangements necessary so
that such other securities, cash and/or other property are available for distribution by the Rights Agent, if and when appropriate.

 

(d)          In
case the registered holder of any Right Certificate shall properly exercise less than all the Rights evidenced thereby, a new Right
Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent to the registered
holder of such Right Certificate or to such holder’s duly authorized assigns, subject to the provisions of Section 14
hereof.

 

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

 

Section 8.          Cancellation
and Destruction of Right Certificates. All Right Certificates surrendered for the purpose of exercise, transfer,
split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent
for cancellation or in cancelled form, or if surrendered to the Rights Agent, shall be cancelled by it, and no Right Certificates
shall be issued in lieu thereof, except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver
to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Right Certificate
purchased or acquired by the Company otherwise than upon the exercise thereof. Subject to applicable law and regulation, the Rights
Agent shall maintain in a retrievable database electronic records of all cancelled or destroyed Right Certificates that have been
canceled or destroyed by the Rights Agent. The Rights Agent shall maintain such electronic records or physical records for the
time period required by applicable law and regulation. Upon written request of the Company, the Rights Agent shall provide to
the Company or its designee copies of such electronic records or physical records relating to Rights Certificates cancelled or
destroyed by the Rights Agent.

 

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Section 9.          Reservation
and Availability of Preferred Shares.

 

(a)          The
Company covenants and agrees that it will cause to be reserved and kept available out of its authorized and unissued Preferred
Shares or any authorized and issued Preferred Shares held in its treasury the number of Preferred Shares that will be sufficient
to permit the exercise in full of all outstanding Rights in accordance with Section 7.

 

(b)          So
long as the Preferred Shares issuable upon the exercise of Rights may be listed on any national securities exchange, the Company
shall use its best efforts to cause, from and after such time as the Rights become exercisable, all Preferred Shares reserved for
such issuance to be listed on such exchange upon official notice of issuance upon such exercise.

 

(c)          The
Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred Shares delivered
upon exercise of Rights shall, at the time of delivery of the certificates for such shares (subject to payment of the Purchase
Price), be duly and validly authorized and issued and fully paid and nonassessable shares (except as otherwise provided by any
corporation law applicable to the Company).

 

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

 

(e)          If
the Company determines that registration under the Securities Act is required, the Company shall use commercially reasonable efforts
(i) to file, as soon as practicable after the Distribution Date, a registration statement under the Securities Act with respect
to the securities issuable upon exercise of the Rights, (ii) to cause such registration statement to become effective as soon as
practicable after such filing and (iii) to cause such registration statement to remain effective (with a prospectus at all times
meeting the requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable
for such securities and (B) the Expiration Date. The Company shall also take such action as may be appropriate to ensure compliance
with the securities or blue sky laws of the various states in connection with the exercisability of the Rights. The Company may
temporarily suspend, for a period of time not to exceed 90 days, the exercisability of the Rights to prepare and file such registration
statement and permit it to become effective or to qualify the rights, the exercise thereof or the issuance of securities upon the
exercise thereof under state securities or blue sky laws. The Company shall issue a public announcement upon any such suspension
stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement when the suspension
is no longer in effect, in each case with simultaneous written notice to the Rights Agent. Notwithstanding anything contained in
this Agreement to the contrary, the Rights shall not be exercisable for securities in any jurisdiction if the requisite qualification
in such jurisdiction has not been obtained, such exercise is not permitted under applicable law or a registration statement in
respect of such securities has not been declared effective.

 

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Section
10.          Preferred
Shares Record Date. Each Person in whose name any certificate for Preferred Shares is issued upon the exercise
of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares represented thereby on,
and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was duly surrendered and
payment of the Purchase Price (and any applicable transfer taxes) was made; provided, however, that if the date of such
surrender and payment is a date upon which the Preferred Shares transfer books of the Company are closed, such Person shall be
deemed to have become the record holder of such shares on, and such certificate shall be dated, the next succeeding Business Day
on which the Preferred Shares transfer books of the Company are open.

 

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

 

(a)          (i)          In
the event the Company shall at any time after the date of this Agreement (A) declare a dividend on the Preferred Shares payable
in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller
number of Preferred Shares or (D) issue any shares of its capital stock in a reclassification of the Preferred Shares (including
any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving corporation),
except as otherwise provided in this Section 11(a), the Purchase Price in effect at the time of the record date for such dividend
or of the effective date of such subdivision, combination or reclassification, and the number and kind of shares of capital stock
issuable on such date, shall be proportionately adjusted so that the holder of any Right exercised after such time shall be entitled
to receive the aggregate number and kind of shares of capital stock which, if such Right had been exercised immediately prior to
such date and at a time when the Preferred Shares transfer books of the Company were open, such holder would have owned upon such
exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification; provided, however,
that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the
shares of capital stock of the Company issuable upon exercise of one Right. If an event occurs which would require an adjustment
under both Section 11(a)(i) and Section 11(a)(ii), then the adjustment provided for in this Section 11(a)(i) shall
be in addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii).

 

  (ii)         Subject to the following paragraph and Section 24 of this Agreement, in the event any Person shall become an Acquiring Person (a “Section 11(a)(ii) Event”), each holder of a Right shall thereafter have a right to receive, upon exercise thereof at a price equal to the then current Purchase Price multiplied by the number of one one-hundredths of a Preferred Share for which a Right is exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares as shall equal the result obtained by (x) multiplying the then current Purchase Price by the number of one one-hundredths of a Preferred Share for which a Right is exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event and dividing that product by (y) 50% of the then current per share market price of the Common Shares (determined pursuant to Section 11(d)) on the date the Person became an Acquiring Person (such number of shares, the “Adjustment Shares”).

 

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			From and after a Section 11(a)(ii) Event, any Rights that are or were beneficially owned by
such Acquiring Person (or any Associate or Affiliate of such Acquiring Person) shall be void and any holder of such Rights shall
thereafter have no right to exercise such Rights under any provision of this Agreement. No Right Certificate shall be issued pursuant
to Section 3 or Section 6 that represents Rights beneficially owned by an Acquiring Person whose Rights would be void pursuant
to the preceding sentence or any Associate or Affiliate thereof; no Right Certificate shall be issued at any time upon the transfer
of any Rights to an Acquiring Person whose Rights would be void pursuant to the preceding sentence or any Associate or Affiliate
thereof or to any nominee of such Acquiring Person, Associate or Affiliate; and any Right Certificate delivered to the Rights Agent
for transfer to an Acquiring Person whose Rights would be void pursuant to the preceding sentence shall be cancelled. The Company
shall use all reasonable efforts to ensure that the provisions of this paragraph are complied with, but shall have no liability
to any holder of Right Certificates or other Person as a result of its failure to make any determinations with respect to an Acquiring
Person or its Affiliates, Associates or transferees hereunder.

 

  (iii)        In the event that there shall not be sufficient Common Shares issued but not outstanding or authorized but unissued (and not reserved for issuance for purposes other than upon exercise of the Rights) to permit the exercise in full of the Rights in accordance with the foregoing subparagraph (ii), the Company shall: (A) determine the excess of (1) the value of the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”) over (2) the Purchase Price payable with respect to such Right (such excess, the “Spread”), and (B) with respect to each Right (subject to the second paragraph of Section 11(a)(ii)), make adequate provision to substitute for the Adjustment Shares, upon payment of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price, (3) other equity securities of the Company (including, without limitation, one one-hundredth of a Preferred Share or shares, or units of shares, of preferred stock which the Board has deemed to have the same value as Common Shares (such one one-hundredth of a Preferred Share or shares of preferred stock, hereinafter referred to as “common stock equivalents”)), (4) debt securities of the Company, (5) other assets or (6) any combination of the foregoing, having an aggregate value equal to the Current Value, where such aggregate value has been determined by the Board based upon the advice of a nationally recognized investment banking firm selected by the Board; provided, however, if the Company shall not have made adequate provision to substitute for the Adjustment Shares pursuant to clause (B) above within 30 days following the occurrence of a Section 11(a)(ii) Event (the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of any portion of the Purchase Price, Common Shares (to the extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If the Board shall determine in good faith that it is likely that sufficient additional Common Shares might be authorized for issuance for exercise in full of the Rights, the 30-day period set forth above may be extended to the extent necessary, but not more than 90 days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the authorization of such additional shares (such period, as it may be extended, the “Substitution Period”). To the extent that the Company determines that some action need be taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the Company (x) shall provide, subject to the last paragraph of Section 11(a)(ii) hereof, that such action shall apply uniformly to all outstanding Rights, and (y) may suspend the exercisability of the Rights until the expiration of the Substitution Period to seek any authorization of additional shares and/or to decide the appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. In the event of any such suspension, the Company shall issue a public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii), the value of the Common Shares shall be the current per share market price (as determined pursuant to Section 11(d) hereof) of the Common Shares on the Section 11(a)(ii) Trigger Date and the value of any “common stock equivalent” shall be deemed to have the same value as the Common Shares on such date.

 

    	14

    	 

    

 

(b)          In
case the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Preferred Shares entitling
them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred Shares (or shares
having the same rights, privileges and preferences as the Preferred Shares (“equivalent preferred shares”)) or securities
convertible into Preferred Shares at a price per Preferred Share or equivalent preferred share (or having a conversion price per
share, if a security convertible into Preferred Shares or equivalent preferred shares) less than the then current per share market
price of the Preferred Shares (as defined in Section 11(d)) on such record date, the Purchase Price to be in effect after
such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the number of Preferred Shares outstanding on such record date plus the number of Preferred Shares
which the aggregate offering price of the total number of Preferred Shares and/or equivalent preferred shares so to be offered
(and/or the aggregate initial conversion price of the convertible securities so to be offered) would purchase at such current market
price and the denominator of which shall be the number of Preferred Shares outstanding on such record date plus the number of additional
Preferred Shares and/or equivalent preferred shares to be offered for subscription or purchase (or into which the convertible securities
so to be offered are initially convertible); provided, however, that in no event shall the consideration to be paid upon
the exercise of one Right be less than the aggregate par value of the shares of capital stock of the Company issuable upon exercise
of one Right. In case such subscription price may be paid in a consideration part or all of which shall be in a form other than
cash, the value of such consideration shall be as determined in good faith by the Board, whose determination shall be described
in a statement filed with the Rights Agent and shall be binding on the Rights Agent and holders of the Rights. Preferred Shares
owned by or held for the account of the Company or any Subsidiary of the Company shall not be deemed outstanding for the purpose
of any such computation. Such adjustment shall be made successively whenever such a record date is fixed; and in the event that
such rights, options or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then
be in effect if such record date had not been fixed.

 

(c)          In
case the Company shall fix a record date for the making of a distribution to all holders of the Preferred Shares (including any
such distribution made in connection with a consolidation or merger in which the Company is the continuing or surviving corporation)
of evidences of indebtedness or assets (other than a regular quarterly cash dividend or a dividend payable in Preferred Shares)
or subscription rights or warrants (excluding those referred to in Section 11(b)), the Purchase Price to be in effect after
such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the then current per share market price of the Preferred Shares (as defined in Section 11(d))
on such record date, less the fair market value (as determined in good faith by the Board, whose determination shall be described
in a statement filed with the Rights Agent and shall be binding on the Rights Agent and holders of the Rights) of the portion of
the assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to one Preferred
Share and the denominator of which shall be such current per share market price of the Preferred Shares on such record date; provided,
however, that in no event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par
value of the shares of capital stock of the Company to be issued upon exercise of one Right. Such adjustments shall be made successively
whenever such a record date is fixed; and in the event that such distribution is not so made, the Purchase Price shall again be
adjusted to be the Purchase Price which would then be in effect if such record date had not been fixed.

 

    	15

    	 

    

 

(d)          (i)
For the purpose of any computation hereunder, the “current per share market price” of any security (a “Security”
for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per share
of such Security for the 30 consecutive Trading Days (as hereinafter defined) immediately prior to such date; provided, however,
that, if the current per share market price of the Security is determined during a period following the announcement by the issuer
of such Security of (i) a dividend or distribution on such Security payable in shares of such Security or securities convertible
into such shares, or (ii) any subdivision, combination or reclassification of such Security and prior to the expiration of 30 Trading
Days after the ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination or reclassification,
then, and in each such case, the current per share market price shall be appropriately adjusted to reflect the current market price
per share equivalent of such Security. The closing price for each Trading Day shall be the last sale price, regular way, at or
prior to 4:00 P.M. Eastern time or, in case no such sale takes place on such day, the average of the closing bid and asked prices,
regular way, at or prior to 4:00 P.M. Eastern time, in either case, as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Securities are not listed
or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated transaction reporting system with
respect to securities listed on the principal national securities exchange on which the Security is listed or admitted to trading
or, if the Security is not listed or admitted to trading on any national securities exchange, the last quoted price or, if not
so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported at or prior to 4:00 P.M.
Eastern time by the applicable reporting system then in use, or, if on any such date the Security is not quoted by any such organization,
the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Security selected
by the Board. The term “Trading Day” shall mean a day on which the principal national securities exchange on which
the Security is listed or admitted to trading is open for the transaction of business or, if the Security is not listed or admitted
to trading on any national securities exchange, a Business Day.

 

(ii) For the purpose
of any computation hereunder, the “current per share market price” of the Preferred Shares shall be determined in accordance
with the method set forth in Section 11(d)(i). If the Preferred Shares are not publicly traded, then the “current per
share market price” of the Preferred Shares shall be conclusively deemed to be the current per share market price of the
Common Shares as determined pursuant to Section 11(d)(i) (appropriately adjusted to reflect any stock split, stock dividend
or similar transaction occurring after the Record Date), multiplied by 100. If neither the Common Shares nor the Preferred Shares
are publicly held or so listed or traded, then “current per share market price” shall mean the fair value per share
as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and
shall be binding on the Rights Agent and holders of the Rights.

 

(e)          No
adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least 1%
in the Purchase Price; provided, however, that any adjustments that, by reason of this Section 11(e), are not required
to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11
shall be made to the nearest cent or to the nearest one one-hundredth of a share, as the case may be. Notwithstanding the first
sentence of this Section 11(e), any adjustment required by this Section 11 shall be made no later than the earlier of
(i) three years from the date of the transaction which requires such adjustment or (ii) the Expiration Date.

 

(f)          If,
as a result of an adjustment made pursuant to Section 11(a), the holder of any Right thereafter exercised shall become entitled
to receive any shares of capital stock of the Company other than Preferred Shares, then, thereafter, the number of such other shares
so receivable upon exercise of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent
as practicable to the provisions with respect to the Preferred Shares contained in Section 11, and the provisions of Sections 7,
9, 10 and 14 with respect to the Preferred Shares shall apply on like terms to any such other shares.

 

    	16

    	 

    

 

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

 

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

 

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

 

(j)          Irrespective
of any adjustment or change in the Purchase Price or the number of one one-hundredths of a Preferred Share issuable upon the exercise
of the Rights, the Right Certificates theretofore and thereafter issued may continue to express the Purchase Price and the number
of one one-hundredths of a Preferred Share which were expressed in the initial Right Certificates issued hereunder.

 

(k)          Before
taking any action that would cause an adjustment reducing the Purchase Price below the par value, if any, of the Preferred Shares
issuable upon exercise of the Rights, the Company shall take any corporate action which may, based on the advice of its counsel,
be necessary in order that the Company may validly and legally issue fully paid and nonassessable (except as otherwise provided
by any corporation law applicable to the Company) Preferred Shares at such adjusted Purchase Price.

 

    	17

    	 

    

 

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

 

(m)          Anything
in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase
Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that the Company, in its
sole discretion, shall determine to be advisable in order that any consolidation or subdivision of the Preferred Shares, issuance
wholly for cash of any Preferred Shares at less than the current market price, issuance wholly for cash of Preferred Shares or
securities which by their terms are convertible into or exchangeable for Preferred Shares, dividends on Preferred Shares payable
in Preferred Shares or issuance of rights, options or warrants referred to in Section 11(b) hereof, hereafter made by the
Company to holders of its Common Shares shall not be taxable to such stockholders.

 

(n)          The
Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 23, Section 24
or Section 28 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably
foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by the Rights.

 

(o)          Anything
in this Agreement to the contrary notwithstanding, in the event that the Company shall, at any time after the Record Date and prior
to the Distribution Date, (i) declare a dividend on the outstanding Common Shares payable in Common Shares, (ii) subdivide the
outstanding Common Shares, or (iii) combine the outstanding Common Shares into a smaller number of shares, the number of Rights
associated with each Common Share then outstanding, or issued or delivered thereafter but prior to the Distribution Date, shall
be proportionately adjusted so that the number of Rights thereafter associated with each Common Share following any such event
shall equal the result obtained by multiplying the number of Rights associated with each Common Share immediately prior to such
event by a fraction, the numerator of which shall be the total number of Common Shares outstanding immediately prior to the occurrence
of the event and the denominator of which shall be the total number of Common Shares outstanding immediately following the occurrence
of such event.

 

Section 12.         Certificate
of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 hereof,
the Company shall promptly (a) prepare a certificate setting forth such adjustment and a brief statement of the facts accounting
for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Shares a copy of such certificate
and (c) if such adjustment occurs at any time after the Distribution Date, mail (or, if deemed appropriate by the Board, make
available at no charge) a brief summary thereof to each holder of a Right Certificate in accordance with Section 26 hereof.
The Rights Agent shall be fully protected in relying on any such certificate and on any adjustments or statements therein contained
and shall not be deemed to have knowledge of any such adjustment or event unless and until it shall have received such certificate.

 

    	18

    	 

    

 

Section 13.         [Reserved].

 

Section 14.         Fractional
Rights and Fractional Shares.

 

(a)          The
Company shall not be required to issue fractions of Rights or to distribute Right Certificates which evidence fractional Rights.
In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates with regard to which
such fractional Rights would otherwise be issuable an amount in cash equal to the same fraction of the current market value of
a whole Right. For the purposes of this Section 14(a), the current market value of a whole Right shall be the closing price
of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable.
The closing price for any day shall be the last sale price, regular way, reported at or prior to 4:00 P.M. Eastern time, or, in
case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, reported at or prior to
4:00 P.M. Eastern time, in either case, as reported in the principal consolidated transaction reporting system with respect to
securities listed or admitted to trading on the New York Stock Exchange or, if the Rights are not listed or admitted to trading
on the New York Stock Exchange, as reported in the principal consolidated transaction reporting system with respect to securities
listed on the principal national securities exchange on which the Rights are listed or admitted to trading or, if the Rights are
not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average
of the high bid and low asked prices in the over-the-counter market, as reported at or prior to 4:00 P.M. Eastern time by the applicable
reporting system then in use or, if on any such date the Rights are not quoted by any such organization, the average of the closing
bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board. If, on any
such date, no such market maker is making a market in the Rights, then the fair value of the Rights on such date as determined
in good faith by the Board shall be used.

 

(b)          The
Company shall not be required to issue fractions of Preferred Shares (other than fractions which are integral multiples of one
one-hundredth of a Preferred Share) upon exercise or exchange of the Rights or to distribute certificates which evidence fractional
Preferred Shares (other than fractions which are integral multiples of one one-hundredth of a Preferred Share). Fractions of Preferred
Shares in integral multiples of one one-hundredth of a Preferred Share may, at the election of the Company, be evidenced by depositary
receipts, pursuant to an appropriate agreement between the Company and a depositary selected by it; provided, that such
agreement shall provide that the holders of such depositary receipts shall have all the rights, privileges and preferences to which
they are entitled as beneficial owners of the Preferred Shares represented by such depositary receipts. In lieu of fractional Preferred
Shares that are not integral multiples of one one-hundredth of a Preferred Share, the Company shall pay to the registered holders
of Right Certificates, at the time such Rights are exercised as herein provided, an amount in cash equal to the same fraction of
the current market value of one Preferred Share. For purposes of this Section 14(b), the current market value of a Preferred
Share shall be the closing price of a Preferred Share (as determined pursuant to the second sentence of Section 11(d)(i) hereof)
for the Trading Day immediately prior to the date of such exercise.

 

(c)          The
holder of a Right by the acceptance of the Right expressly waives such holder’s right to receive any fractional Rights or
any fractional shares upon exercise of a Right (except as provided above).

 

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

 

    	19

    	 

    

 

Section 15.         Rights
of Action

 

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

 

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

 

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

 

(b)          after
the Distribution Date, the Right Certificates are transferable only on the registry books of the Rights Agent if surrendered at
the office or offices of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer;

 

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

 

(d)          notwithstanding
anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of
a Right or other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary
or permanent injunction or other order, decree or ruling issued by a court or competent jurisdiction or by a governmental, regulatory
or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental
authority, prohibiting or otherwise restraining performance of such obligation; provided, however, that the Company must
use its best efforts to have any such order, decree or ruling lifted or otherwise overturned as soon as possible.

 

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Section 17.         Right
Certificate Holder Not Deemed a Stockholder. No holder, as such, of any Right Certificate shall be entitled to
vote, receive dividends or other distributions or be deemed for any purpose the holder of the Preferred Shares or any other securities
of the Company which may at any time be issuable upon the exercise of the Rights represented thereby, nor shall anything contained
herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate, as such, any of the rights
of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders
at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in Section 26 hereof), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof.

 

Section 18.         Concerning
the Rights Agent.

 

(a)          The
Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration
and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify
the Rights Agent for, and to hold it harmless against, any loss, liability or expense (including the reasonable documented fees
and expenses of outside legal counsel), incurred without gross negligence, bad faith or willful misconduct (which gross negligence,
bad faith or willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a court of competent
jurisdiction) on the part of the Rights Agent, for action taken or omitted to be taken by the Rights Agent in connection with the
acceptance and administration of this Agreement, including the costs and expenses of defending against any claim of liability in
the premises.

 

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

 

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

 

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

 

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

 

    	21

    	 

    

 

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

 

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

 

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

 

(b)          Whenever,
in the performance of its duties under this Agreement, the Rights Agent 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 certificate
signed by the Chairman of the Board, the Chief Executive Officer or any Vice President and by the Treasurer or any Assistant Treasurer
or the Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full
authorization and protection to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this
Agreement in reliance upon such certificate.

 

(c)          The
Rights Agent shall be liable hereunder to the Company and any other Person only for its own gross negligence or willful misconduct
(which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable order, judgment, decree
or ruling of a court of competent jurisdiction); provided, however, that notwithstanding anything in this Agreement to the
contrary, under no circumstances shall the Rights Agent be liable for indirect, special, consequential or punitive damages hereunder
(including but not limited to lost profits), even if the Rights Agent has been advised of the likelihood of such loss or damage
and regardless of the form of action. Any liability of the Rights Agent under this Agreement will be limited to the amount of annual
fees paid by the Company to the Rights Agent.

 

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

 

    	22

    	 

    

 

(e)          The
Rights Agent shall not have any liability or be under any responsibility in respect of the validity of this Agreement or the execution
and delivery hereof (except the due authorization, execution and delivery hereof by the Rights Agent) or in respect of the validity
or execution of any Right Certificate (except its countersignature thereof); nor shall it be liable or responsible for any breach
by the Company of any covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be liable or
responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to Section 11(a)(ii)
hereof) or any adjustment in the terms of the Rights (including the manner, method or amount thereof) provided for in Section 3,
11, 23 or 24, or the ascertaining of the existence of facts that would require any such change or adjustment (except with respect
to the exercise of Rights evidenced by Right Certificates after receipt of a certificate pursuant to Section 12 describing such
change or adjustment is required); nor shall it by any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any Preferred Shares or other securities to be issued pursuant to this Agreement or any Right Certificate
or as to whether any Preferred Shares or other securities will, when issued, be validly authorized and issued, fully paid and nonassessable.

 

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

 

(g)          The
Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from
any one of the Chairman of the Board, the Chief Executive Officer, any Vice President, the Secretary, any Assistant Secretary,
the Treasurer or any Assistant Treasurer of the Company, and to apply to such officers for advice or instructions in connection
with its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with the advice
or instructions of any such officer or for any delay in acting while waiting for those instructions.

 

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

 

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

 

    	23

    	 

    

 

Section 21.         Change
of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under
this Agreement upon 30 days’ notice in writing mailed to the Company and, in the event that the Rights Agent or one of its
Affiliates is not also the transfer agent for the Company to each transfer agent of the Common Shares by trackable mail. In the
event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the Rights Agent will be
deemed to have resigned automatically and be discharged from its duties under this Agreement as of the effective date of such
termination, and the Company shall be responsible for sending any required notice. The Company may remove the Rights Agent or
any successor Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the
case may be, and to each transfer agent of the Common Shares, and, if such removal occurs after the Distribution Date, to the
holders of the Right Certificates, in each case, by overnight delivery service or registered or certified mail, postage prepaid.
If the Rights Agent and the transfer agent of the Common Shares are the same Person, then the appointment of a successor transfer
agent for the Common Shares shall without any further action be the appointment of such Person as successor Rights Agent. If the
Rights Agent and the transfer agent of the Common Shares are the same Person, then, notwithstanding the foregoing notice provisions,
a removal notice to the Rights Agent shall be given upon such number of days’ notice as is specified in the agreement governing
the Rights Agent’s services as transfer agent, as such agreement may be amended from time to time. If the Rights Agent and
the transfer agent are not the same Person and the Rights Agent shall resign or be removed or shall otherwise become incapable
of acting, then the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment
within a period of 90 days after giving notice of such removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice,
submit such holder’s Right Certificate for inspection by the Company), then the registered holder of any Right Certificate
may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether
appointed by the Company or by such a court, shall be (a) a legal entity organized and doing business under the laws of the
United States or of any state of the United States so long as such entity is authorized to do business as a banking institution
in such state, in good standing, which is authorized under such laws to exercise corporate trust, stock transfer or stockholder
services powers and is subject to supervision or examination by federal or state authority and which has at the time of its appointment
as Rights Agent a combined capital and surplus, along with its Affiliates, of at least $50 million, or (b) an Affiliate of
a legal entity described in clause (a) of this sentence. After appointment, the successor Rights Agent shall be vested with the
same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed;
but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the
effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor Rights Agent and
each transfer agent of the Common Shares, and, if such appointment occurs after the Distribution Date, mail a notice thereof in
writing to the registered holders of the Right Certificates. Failure to give any notice provided for in this Section 21,
however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or
the appointment of the successor Rights Agent, as the case may be.

 

Section 22.         Issuance
of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary,
the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may be approved by the Board to
reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property
purchasable under the Right Certificates made in accordance with the provisions of this Agreement.

 

Section 23.         Redemption.

 

(a)          The
Rights may be redeemed by action of the Board pursuant to subsection (b) of this Section 23 and shall not be redeemed
in any other manner.

 

(b)          The
Board may, at its option, at any time prior to such time as any Person becomes an Acquiring Person, redeem all but not less than
all the then outstanding Rights at a redemption price of $.001 per Right, appropriately adjusted to reflect any stock split, stock
dividend or similar transaction occurring after the Record Date (such redemption price being hereinafter referred to as the “Redemption
Price”). The redemption of the Rights by the Board may be made effective at such time, on such basis and with such conditions
as the Board, in its sole discretion, may establish.

 

    	24

    	 

    

 

(c)          Immediately
upon the effectiveness of the action of the Board ordering the redemption of the Rights pursuant to subsection (b) of this
Section 23, and without any further action and without any notice, the right to exercise the Rights will terminate and the
only right thereafter of the holders of Rights, as such, shall be to receive the Redemption Price. The Company shall promptly give
public notice of any such redemption (with prompt written notice to the Rights Agent); provided, however, that the failure
to give, or any defect in, any such notice shall not affect the validity of such redemption. Within ten days after the effectiveness
of the action of the Board ordering the redemption of the Rights pursuant to subsection (b) of this Section 23, the Company
shall mail a notice of redemption to all the holders of the then outstanding Rights at their last addresses as they appear upon
the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the
Common Shares. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives
the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. Neither
the Company nor any of its Affiliates or Associates may redeem, acquire or purchase for value any Rights at any time in any manner
other than as specifically set forth in this Section 23 or in Section 24 hereof, and other than in connection with the
purchase of Common Shares prior to the Distribution Date.

 

Section 24.         Exchange.

 

(a)          The
Board may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding
and exercisable Rights (which shall not include Rights that have become void pursuant to the provisions of Section 11(a)(ii)
hereof) for Common Shares at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the Record Date (such exchange ratio being hereinafter referred to as the
“Exchange Ratio”). Notwithstanding the foregoing, the Board shall not be empowered to effect such exchange at any time
after an Acquiring Person becomes the Beneficial Owner of 50% or more of the Common Shares then outstanding. The exchange of the
Rights by the Board may be made effective as such time, on such basis and with such conditions as the Board, in its sole discretion,
may establish. Prior to effecting an exchange pursuant to this Section 24, the Board may direct the Company to enter into
a trust agreement in such form and with such terms as the Board shall approve (the “Trust Agreement”). If the Board
so directs, the Company shall enter into the Trust Agreement and shall issue to the trust created by the Trust Agreement (the “Trust”)
all of the Preferred Shares (or equivalent preferred shares, as such term is defined in Section 11(b) hereof), to the extent
applicable pursuant to Section 24(c), issuable pursuant to the exchange (and any cash in lieu of fractional shares), and all
Persons entitled to receive shares pursuant to the exchange shall be entitled to receive such Preferred Shares or equivalent preferred
shares (and any dividends or distributions made thereon after the date on which such shares are deposited in the Trust and any
cash in lieu of fractional shares) only from the Trust and solely upon compliance with the relevant terms and provisions of the
Trust Agreement.

 

(b)          Immediately
upon the action of the Board ordering the exchange of any Rights pursuant to subsection (a) of this Section 24 and without
any further action and without any notice, the right to exercise such Rights shall terminate and the only right thereafter of a
holder of such Rights, as such, shall be to receive that number of Common Shares equal to the number of such Rights held by such
holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange; provided, however,
that the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company promptly shall
mail a notice of any such exchange to all of the holders of such Rights at their last addresses as they appear upon the registry
books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder
receives the notice. Each such notice of exchange will state the method by which the exchange of the Common Shares for Rights will
be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall
be effected pro rata based on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 11(a)(ii)
hereof) held by each holder of Rights.

 

    	25

    	 

    

 

(c)          In
any exchange pursuant to this Section 24, the Company, at its option, may substitute Preferred Shares (or equivalent preferred
shares, as such term is defined in Section 11(b) hereof) for some or all of the Common Shares exchangeable for Rights, at
the initial rate of one one-hundredth of a Preferred Share (or equivalent preferred share) for each Common Share of the Company,
as appropriately adjusted to reflect adjustments in the voting rights of the Preferred Shares pursuant to the terms thereof, so
that the fraction of a Preferred Share delivered in lieu of each Common Share of the Company shall have the same voting rights
as one Common Share of the Company.

 

(d)          In
the event that there shall not be sufficient Common Shares or Preferred Shares issued but not outstanding or authorized but unissued
to permit any exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action
as may be necessary to authorize additional Common Shares or Preferred Shares for issuance upon exchange of the Rights.

 

Section 25.         Process
to Seek Exemption Prior to Distribution Date.

 

(a)          Any
Person who desires to effect any acquisition of Common Shares that would, if consummated, result in such Person beneficially owning
4.99% or more of the then outstanding Common Shares (a “Requesting Person”) may, prior to the Shares Acquisition Date
and in accordance with this Section 25(a), request that the Board grant an exemption with respect to such acquisition under this
Agreement so that such Person would be deemed to be an “Exempt Person” under clause (ii) of Section 1(i) hereof for
purposes of this Agreement (an “Exemption Request”). An Exemption Request shall be in proper form and shall be delivered
by overnight delivery service or registered or certified mail, postage prepaid, to the Corporate Secretary of the Company at the
principal executive office of the Company. The Exemption Request shall be deemed made upon receipt by the Corporate Secretary of
the Company. To be in proper form, an Exemption Request shall set forth (i) the name and address of the Requesting Person, (ii)
the number and percentage of Common Shares then Beneficially Owned by the Requesting Person, together with all Affiliates and Associates
of the Requesting Person, (iii) a reasonably detailed description of the transaction or transactions by which the Requesting Person
would propose to acquire Beneficial Ownership of Common Shares aggregating 4.99% or more of the then outstanding Common Shares
and the maximum number and percentage of outstanding Common Shares that the Requesting Person proposes to acquire, and (iv) such
other information, representations, warranties and covenants as are set forth in Exhibit A hereto. The Board shall make a determination
whether to grant an exemption in response to an Exemption Request as promptly as practicable (and, in any event, within ten Business
Days) after receipt thereof; provided, however, that the failure of the Board to make a determination within such
period shall be deemed to constitute the denial by the Board of the Exemption Request. The Requesting Person shall respond promptly
to reasonable and appropriate requests for additional information from the Board and its advisors to assist the Board in making
its determination. For purposes of considering the Exemption Request, any calculation of the number of Common Shares outstanding
at any particular time, including for purposes of determining the particular percentage of such outstanding Common Shares of which
any Person is the Beneficial Owner, shall be made pursuant to and in accordance with Section 382 of the Code. The Board shall only
grant an exemption in response to an Exemption Request if the Board determines, in its sole discretion, that the acquisition of
Beneficial Ownership of Common Shares by the Requesting Person (A) will not adversely impact in any material respect the time period
in which the Company could use the Tax Benefits or limit or impair the availability to the Company of the Tax Benefits, or (B)
is in the best interests of the Company despite the fact that it may adversely impact in a material respect the time period in
which the Company could use the Tax Benefits or limit or impair the availability to the Company of the Tax Benefits. Any exemption
granted hereunder may be granted in whole or in part, and may be subject to limitations or conditions (including a requirement
that the Requesting Person agree that it will not acquire Beneficial Ownership of Common Shares in excess of the maximum number
and percentage of shares approved by the Board), in each case, as and to the extent the Board shall determine necessary or desirable
to provide for the protection of the Tax Benefits. Any Exemption Request may be submitted on a confidential basis and, except to
the extent required by applicable law, the Company shall maintain the confidentiality of such Exemption Request and the Board’s
determination with respect thereto, unless the information contained in the Exemption Request or the Board’s determination
with respect thereto otherwise becomes publicly available. The Exemption Request shall be considered and evaluated by directors
serving on the Board, or a duly constituted committee thereof, who are independent of the Company and the Requesting Person and
disinterested with respect to the Exemption Request, and the action of a majority of such independent and disinterested directors
shall be deemed to be the determination of the Board for purposes of such Exemption Request.

 

    	26

    	 

    

 

(b)          The
Board may, of its own accord or upon the request of a stockholder (a “Waiver Request”), subsequent to a Shares Acquisition
Date and prior to the Distribution Date, and in accordance with this Section 25(b), grant an exemption with respect to any Acquiring
Person under this Agreement so that such Acquiring Person would be deemed to be an “Exempt Person” under clause (ii)
of Section 1(i) hereof for purposes of this Agreement. A Waiver Request shall be in proper form and shall be delivered by overnight
delivery service or registered or certified mail, postage prepaid, to the Corporate Secretary of the Company at the principal executive
office of the Company. The Waiver Request shall be deemed made upon receipt by the Corporate Secretary of the Company. To be in
proper form, a Waiver Request shall set forth (i) the name and address of the Acquiring Person, (ii) the number and percentage
of Common Shares then Beneficially Owned by the Acquiring Person, together with all Affiliates and Associates of the Acquiring
Person, (iii) a reasonably detailed description of the transaction or transactions by which the Acquiring Person acquired Beneficial
Ownership of Common Shares aggregating 4.99% or more of the then outstanding Common Shares and the maximum number and percentage
of outstanding Common Shares that the Acquiring Person proposes to acquire, and (iv) such other information, representations, warranties
and covenants as are set forth in Exhibit A hereto. The Board shall make a determination whether to grant an exemption in response
to a Waiver Request as promptly as practicable (and, in any event, within ten Business Days) after receipt thereof; provided,
however, that the failure of the Board to make a determination within such period shall be deemed to constitute the denial
by the Board of the Waiver Request. The Acquiring Person shall respond promptly to reasonable and appropriate requests for additional
information from the Board and its advisors to assist the Board in making its determination. For purposes of considering the Waiver
Request, any calculation of the number of Common Shares outstanding at any particular time, including for purposes of determining
the particular percentage of such outstanding Common Shares of which any Person is the Beneficial Owner, shall be made pursuant
to and in accordance with Section 382 of the Code. The Board shall only grant an exemption for an Acquiring Person if the Board
determines, in its sole discretion, that the acquisition of Beneficial Ownership of Common Shares by such Acquiring Person does
not adversely impact in any material respect the time period in which the Company could use the Tax Benefits or limit or impair
the availability to the Company of the Tax Benefits. Any exemption granted hereunder may be granted in whole or in part, and may
be subject to limitations or conditions (including a requirement that such Acquiring Person agree that it will not acquire Beneficial
Ownership of Common Shares in excess of the maximum number and percentage of shares approved by the Board), in each case, as and
to the extent the Board shall determine necessary or desirable to provide for the protection of the Tax Benefits. The Waiver Request
or other determination to grant an exemption shall be considered and evaluated by directors serving on the Board, or a duly constituted
committee thereof, who are independent of the Company and such Acquiring Person and disinterested with respect to the Waiver Request
or other determination to grant an exemption, and the action of a majority of such independent and disinterested directors shall
be deemed to be the determination of the Board for purposes of any exemption granted pursuant to this Section 25(b).

 

    	27

    	 

    

 

Section 26.         Notice
of Certain Events.

 

(a)          In
case the Company shall propose, after the Distribution Date, (i) to pay any dividend payable in stock of any class to the holders
of Preferred Shares or to make any other distribution to the holders of Preferred Shares (other than a regular quarterly cash dividend),
(ii) to offer to the holders of Preferred Shares rights or warrants to subscribe for or to purchase any additional Preferred Shares
or shares of stock of any class or any other securities, rights or options, (iii) to effect any reclassification of Preferred Shares
(other than a reclassification involving only the subdivision of outstanding Preferred Shares), (iv) to effect any consolidation
or merger into or with (other than a merger of a Subsidiary into or with the Company), to effect any share exchange with or to
effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one or
more transactions, of 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to, any
other Person, or (v) to effect the liquidation, dissolution or winding up of the Company, then, in each such case, the Company
shall give to the Rights Agent and each holder of a Right Certificate, in accordance with Section 27 hereof, a notice of such
proposed action, which shall specify the record date for the purposes of such stock dividend, or distribution of rights or warrants,
or the date on which such reclassification, consolidation, merger, share exchange, sale, transfer, liquidation, dissolution, or
winding up is to take place and the date of participation therein by the holders of the Preferred Shares if any such date is to
be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least ten days prior
to the record date for determining holders of Preferred Shares for purposes of such action, and in the case of any such other action,
at least ten days prior to the date of the taking of such proposed action or the date of participation therein by the holders of
the Preferred Shares, whichever shall be the earlier.

 

(b)          If
a Section 11(a)(ii) Event shall occur, then (i) the Company shall, as soon as practicable thereafter, give to each holder
of a Right Certificate, in accordance with Section 27 hereof, a notice of the occurrence of such event, which notice shall
include a brief summary of the Section 11(a)(ii) Event and the consequences thereof to holders of Rights, and (ii) all references
in the preceding paragraph to Preferred Shares shall be deemed thereafter to refer to Common Shares and/or, if appropriate, other
securities.

 

Section 27.         Notices.

 

(a)          Notices
or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Right Certificate to or
on the Company shall be sufficiently given or made if sent by overnight delivery service or registered or certified mail, postage
prepaid, addressed (until another address is filed in writing with the Rights Agent) as follows:

 

Hudson Global, Inc.

560 Lexington Avenue,
5th Floor

New York, New York
10022

Attention: Corporate
Secretary

 

(b)          Subject
to the provisions of Section 21 hereof, any notice or demand authorized by this Agreement to be given or made by the Company
or by the holder of any Right Certificate to or on the Rights Agent shall be sufficiently given or made if sent by overnight delivery
service or registered or certified mail, postage prepaid, addressed (until another address is filed in writing with the Company)
as follows:

 

Computershare Inc.

250 Royall Street

Canton, Massachusetts
02021

Attention: Client Services

 

    	28

    	 

    

 

(c)          Notices
or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Right Certificate
shall be sufficiently given or made if sent by overnight delivery service or registered or certified mail, postage prepaid, addressed
to such holder at the address of such holder as shown on the registry books of the Company.

 

Section 28.         Supplements
and Amendments. Prior to such time as any Person becomes an Acquiring Person and subject to the penultimate sentence
of this Section 28, the Company may and the Rights Agent shall, if the Company so directs, supplement or amend any provision
of this Agreement without the approval of any holders of certificates representing Common Shares. From and after the Distribution
Date and subject to the penultimate sentence of this Section 28, the Company and the Rights Agent shall, if the Company so
directs, supplement or amend this Agreement without the approval of any holders of Right Certificates in order (i) to cure any
ambiguity, (ii) to correct or supplement any provision contained herein which may be defective or inconsistent with any other
provision herein, (iii) to shorten or lengthen any time period hereunder, or (iv) to change or supplement the provisions hereunder
in any manner which the Company may deem necessary or desirable and which shall not adversely affect the interests of the holders
of Right Certificates (other than an Acquiring Person or an Affiliate or Associate of an Acquiring Person); provided, however,
that, from and after the Distribution Date, this Agreement may not be supplemented or amended to lengthen, pursuant to clause
(iii) of this sentence, (A) a time period relating to when the Rights may be redeemed at such time as the Rights are not then
redeemable, or (B) any other time period, unless such lengthening is for the purpose of protecting, enhancing or clarifying the
rights of, and/or the benefits to, the holders of Rights. Any such supplement or amendment shall be evidenced by a writing signed
by the Company and the Rights Agent. Upon the delivery of a certificate from an appropriate officer of the Company which states
that the proposed supplement or amendment is in compliance with the terms of this Section 28, the Rights Agent shall execute
such supplement or amendment; provided, that notwithstanding anything to the contrary contained herein, the Rights Agent may,
but shall not be obligated to, enter into any supplement or amendment that affects the Rights Agent’s own rights, duties,
obligations or immunities under this Agreement. Notwithstanding anything contained in this Agreement to the contrary, no supplement
or amendment shall be made which reduces the then effective Redemption Price or moves to an earlier date the then effective Final
Expiration Date. Prior to the Distribution Date, the interests of the holders of Rights shall be deemed coincident with the interests
of the holders of Common Shares.

 

Section 29.         Successors.
All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure
to the benefit of their respective successors and assigns hereunder.

 

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

 

Section 31.         Severability.
In the event any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided, however, that
nothing contained in this Section 31 will affect the ability of the Company under the provisions of Section 28 to supplement or
amend this Agreement to replace such invalid, void or unenforceable term, provision, covenant or restriction with a legal, valid
and enforceable term, provision, covenant or restriction; provided further, however, that if any such excluded term, provision,
covenant or restriction shall adversely affect the rights, immunities, duties or obligations of the Rights Agent, the Rights Agent
shall be entitled to resign immediately.

 

    	29

    	 

    

 

Section 32.         Governing
Law. This Agreement and each Right Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State
applicable to contracts to be made and performed entirely within such State; provided, however, that the rights, duties
and obligations of the Rights Agent hereunder shall be governed by and construed in accordance with the laws of the State of New
York.

 

Section 33.         Counterparts.
This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Agreement
executed and/or transmitted electronically shall have the same authority, effect, and enforceability as an original signature.

 

Section 34.         Descriptive
Headings; Interpretation. Descriptive headings of the several Sections of this Agreement are inserted for
convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. Any reference in
this Agreement to a statutory or regulatory provision includes a reference to any successor provision thereof.

 

Section 35.         Determinations
and Actions by the Board. The Board and the appropriate officers of the Company shall have the power and authority
to administer this Agreement and to exercise all rights and powers specifically granted to the Company, or as may be necessary
or advisable in the administration of this Agreement, including, without limitation, the right and power to interpret the provisions
of this Agreement and make all determinations to be made by the Company hereunder or deemed necessary or advisable for the administration
of this Agreement. The Board shall have the exclusive power and authority to exercise all rights and powers specifically granted
to the Board, including a determination to redeem or not redeem the Rights or to amend this Agreement and any determination as
to whether the actions of any Person shall be such as to cause such Person to beneficially own Common Shares or to become an Acquiring
Person. All such actions, calculations, interpretations and determinations (including, for purposes of clause (ii) below, all
omissions with respect to the foregoing) which are done or made by the Board or the officers of the Company, as applicable, in
good faith, shall (i) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other
parties, and (ii) not subject the Board to any liability to the holders of the Rights.

 

Section 36.         Book
Entry. Reference in this Agreement to certificates for Common Shares includes, in the case of uncertificated Common
Shares, the balances indicated in the account system of the transfer agent for book entry Common Shares, and prior to the Distribution
Date, any uncertificated Common Shares shall also evidence the associated Rights. A substantially similar version of any legend
required to be placed on any certificate for Common Shares may instead be included on any confirmation or notification to the
registered holder of such book entry Common Shares.

 

Section 37.         Amendment
and Restatement. This Agreement amends and restates the Original Rights Agreement in its entirety, effective as
of the close of business on January 15, 2015. For purposes of clarity, notwithstanding the foregoing and without limitation, any
amendment effected by means of this Agreement to the definition of the term “Acquiring Person” included in the Original
Rights Agreement does not affect the validity or effectiveness of any exception from the definition of Acquiring Person applicable
to any Person prior to such amendment.

 

    	30

    	 

    

 

Section 38.         Force
Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable
for any delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts
of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or
loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties,
war, or civil unrest. 

 

    	31

    	 

    

 

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

 

	 	 	 	HUDSON GLOBAL, INC.	 
	 	 	 	 	 	 
	Attest:	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Philip A. Skalski	 	By:	/s/ Manuel Marquez Dorsch	 
	Title:	Corporate Counsel and	 	Title:	Chairman and Chief Executive Officer	 
	 	Assistant Corporate Secretary	 	 	 	 
	 	 	 	 	 	 
	 	 	 	COMPUTERSHARE INC.	 
	 	 	 	 	 	 
	Attest:	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Fred Pappenmeier	 	By:	/s/ David Adamson	 
	Title:	Vice President	 	Title:	Vice President	 

 

    	32

    	 

    

	EXHIBIT A

 

FORM OF REPRESENTATION AND REQUEST LETTER

 

This letter is delivered
to the Company pursuant to Section 1(i)(i)(A) of the Amended and Restated Rights Agreement (the “Agreement”), dated
as of January 15, 2015 and as amended through the date hereof, by and between Hudson Global, Inc., a Delaware corporation (the
“Company”), and the Rights Agent named therein. Capitalized terms used, but not defined, in this letter (and the term
“beneficial ownership”) shall have the respective meanings given them under the Agreement.

 

By delivery of this letter,
[Name] (“Investor”) requests that the Company determine pursuant to Section 1(i)(ii) of the Agreement, based
on this letter and any other information that the Company believes relevant (which, upon written request of the Company, Investor
must provide if it desires to pursue this request), that beneficial ownership by Investor and its Affiliates and Associates of
4.99% or more of the outstanding Common Shares would not jeopardize or endanger the availability to the Company of the Tax Benefits
(such determination, if affirmative, is referred to herein as the “Determination”). The representations, warranties
and covenants of Investor contained in this letter are being provided or made solely in connection with Investor’s request
that the Company make the Determination, thereby effectuating the exemption (the “Exemption”) provided in Section 1(i)
of the Agreement.

 

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

 

(a)          The
“Applicable Period” means the period beginning with and including the date of this letter and ending at the earlier
of (A) the time, if any, following the Determination at which the Exemption is no longer in effect, or (B) the time at which the
Agreement is no longer effective.

 

(b)          A
specified Person has “Economic Ownership” of shares if such shares are treated, for purposes of Section 382 of the
Code and the Treasury Regulations thereunder, as being owned by the specified Person (or by a Person or group of Persons to which
the shares owned by the specified Person are attributed pursuant to Treasury Regulation Section 1.382-2T(h)).

 

(c)          “Fund”
means (A) an investment account that is not itself a Person and that is managed or advised by Investor or by an Affiliate or Associate
of Investor, and (B) any Affiliate or Associate of Investor that is an investment fund.

 

(d)          “Investor
Group” refers collectively to Investor and its Affiliates and Associates (including [__________]), other than the Funds.

 

Investor makes the following
representations, warranties and covenants:

 

(a)          The
aggregate number of Common Shares beneficially owned by the Funds and by the Investor Group and Funds, collectively, are as follows:

 

	
                 
	Number
    of Common Shares
	 	 
	Funds	 
	 	 
	Investor Group and Funds, collectively	 

 

    	A-1

    	 

    

 

(b)          Investor
represents and warrants that the following statements are true and correct at the date of this letter, and that the statements
in subparagraphs (b) and (c) below will also be true and correct at all times during the Applicable Period:

 

(i)          Neither
the Investor Group nor any single Fund has Economic Ownership of more than 4.90%1 of the total outstanding Common Shares.

 

(ii)         With
respect to any Common Shares owned by the Investor Group, no member of the Investor Group is acting as a member of a group that
both (A) includes any Person other than another member of the Investor Group and (B) is treated as an “entity” under
the second sentence of Treasury Regulation Section 1.382-3(a)(1)(i).

 

(iii)        With
respect to any Common Shares owned by a Fund, such Fund is not acting as a member of a group that is treated as an “entity”
under the second sentence of Treasury Regulation Section 1.382-3(a)(1)(i).

 

(c)          Investor
acknowledges, understands and agrees that, at all times during the Applicable Period, neither the Investor Group nor any Fund shall
acquire (other than through a stock dividend, rights dividend, stock split or similar transaction effected by the Company) any
Common Shares (or any interests in an entity that owns, directly or indirectly, any Common Shares) if, immediately after such acquisition,
(i) the Investor Group or such Fund would have Economic Ownership of more than 4.99% of the total then-outstanding Common Shares,
or (ii) to Investor’s knowledge, any Person other than (x) a member of the Investor Group or (y) such Fund would have Economic
Ownership of more than 4.99% of the total then-outstanding Common Shares (and would not have such level of Economic Ownership but
for such acquisition by the Investor Group or such Fund).

 

Investor acknowledges
and agrees that the accuracy of the foregoing representations and warranties and compliance with the foregoing covenants are a
condition to the Exemption becoming effective and remaining in effect.

 

	 	Sincerely,
	 	 
	 	[Name of Investor]
	 	 
	 	By: 	 	 
	 	Name:
	 	Title:

 

 

1 In its
sole discretion, the Company may accept a higher percentage not greater than 4.99%.

 

    	A-2

    	 

    

 

	EXHIBIT B

 

 Terms of the

Series A Junior Participating Preferred Stock,

$.001 par value, of Hudson Global, Inc.

 

Series A Junior Participating Preferred
Stock

 

1.            Designation
and Amount. There is hereby created a series of Preferred Shares that shall be designated as “Series A Junior Participating
Preferred Stock”, par value $.001 per share (the “Series A Preferred Stock”), and the number of shares constituting
such series shall be 1,000,000. Such number of shares may be increased or decreased by resolution of the Board of Directors; provided
that no decrease shall reduce the number of shares of Series A Preferred Stock to a number less than the number of shares then
outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon
the conversion of any outstanding securities issued by the Corporation into Series A Preferred Stock.

 

2.            Dividends
and Distributions.

 

(A)         The
holders of shares of Series A Preferred Stock, in preference to the holders of shares of Common Stock and of any other junior
stock, shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for the
purpose, quarterly dividends payable in cash on the first business days of January, April, July and October in each year (each
such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of Series A Preferred Stock, in an amount per share
(rounded to the nearest cent) equal to the greater of (i) $1.00 or (ii) subject to the provision for adjustment hereinafter set
forth, 100 times the aggregate per share amount of all cash dividends, and 100 times the aggregate per share amount (payable in
kind) of all noncash dividends or other distributions, other than a dividend payable in shares of Common Stock or a subdivision
of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock since the immediately
preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Payment Date, since the first issuance of any
share or fraction of a share of Series A Preferred Stock. In the event the Corporation shall at any time after the close of
business on February 28, 2005 (the “Record Date”) (a) declare any dividend on Common Stock payable in shares of Common
Stock, (b) subdivide the outstanding Common Stock, or (c) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to
such event under clause (ii) of the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator
of which is the number of shares of Common Stock that are outstanding immediately after such event and the denominator of which
is the number of shares of Common Stock that were outstanding immediately prior to such event.

 

(B)         The
Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) above immediately
after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); provided
that, in the event no dividend or distribution shall have been declared on the Common Stock during the period between any Quarterly
Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend of $1.00 per share on the Series A
Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date.

 

    	B-1

    	 

    

 

(C)         Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the Quarterly Dividend Payment
Date next preceding the date of issue of such shares of Series A Preferred Stock, unless the date of issue of such shares
is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to
accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after
the record date for the determination of holders of shares of Series A Preferred Stock entitled to receive a quarterly dividend
and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative
from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of
Series A Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such
shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors
may fix a record date for the determination of holders of shares of Series A Preferred Stock entitled to receive payment of
a dividend or distribution declared thereon, which record date shall be no more than 30 days prior to the date fixed for the payment
thereof.

 

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

 

(A)         Subject
to the provision for adjustment hereinafter set forth, each share of Series A Preferred Stock shall entitle the holder thereof
to 100 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any
time after the Record Date declare or pay any dividend on Common Stock payable in shares of Common Stock, or effect a subdivision
or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of
a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number
of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event shall
be adjusted by multiplying such number by a fraction, the numerator of which is the number of shares of Common Stock that are outstanding
immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

 

(B)         Except
as otherwise provided herein, in any other resolution of the Board of Directors creating a series of Preferred Stock or any similar
stock, or by law, the holders of shares of Series A Preferred Stock and the holders of shares of Common Stock shall vote together
as one class on all matters submitted to a vote of stockholders of the Corporation.

 

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

 

    	B-2

    	 

    

 

4.           Certain
Restrictions.

 

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

 

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

 

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

 

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

 

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

 

(B)         The
Corporation shall not permit any corporation of which an amount of voting securities sufficient to elect at least a majority of
the directors of such corporation is beneficially owned, directly or indirectly, by the Corporation or otherwise controlled by
the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation
could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner.

 

5.           Reacquired
Shares. All shares of Series A Preferred Stock that shall at any time have been reacquired by the Corporation shall, after
such reacquisition, have the status of authorized but unissued shares of Preferred Stock of the Corporation, without designation
as to series, and may be reissued as part of a new series of Preferred Stock to be created by resolution or resolutions of the
Board of Directors, subject to the conditions and restrictions on issuance set forth herein.

 

    	B-3

    	 

    

 

6.          Liquidation,
Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Corporation, no distribution shall be made
(A) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to
the Series A Preferred Stock unless, prior thereto, the holders of shares of Series A Preferred Stock shall have received
$100 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the
date of such payment, provided that the holders of shares of Series A Preferred Stock shall be entitled to receive
an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 100 times the aggregate
amount to be distributed per share to holders of shares of Common Stock, or (B) to the holders of shares of stock ranking on a
parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except distributions
made ratably on the Series A Preferred Stock and all other such parity stock in proportion to the total amounts to which the
holders of all such shares are entitled upon such liquidation, dissolution or winding up. In the event the Corporation shall at
any time after the Record Date declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision
or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of
a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate
amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under the proviso
in clause (A) of the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares
of Common Stock that were outstanding immediately prior to such event.

 

7.          Consolidation,
Merger, etc. In case the Corporation shall enter into any consolidation, merger, combination, share exchange or other transaction
in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property,
then in any such case the shares of Series A Preferred Stock shall at the same time be similarly exchanged or changed in an
amount per share (subject to the provision for adjustment hereinafter set forth) equal to 100 times the aggregate amount of stock,
securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common
Stock is changed or exchanged. In the event the Corporation shall at any time after the Record Date (A) declare any dividend on
Common Stock payable in shares of Common Stock, (B) subdivide the outstanding Common Stock, or (C) combine the outstanding shares
of Common Stock into a smaller number of shares, then in each such case the amount set forth in the preceding sentence with respect
to the exchange or change of shares of Series A Preferred Stock shall be adjusted by multiplying such amount by a fraction,
the numerator of which is the number of shares of Common Stock that are outstanding immediately after such event and the denominator
of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

 

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

 

9.          Amendment.
To the fullest extent permitted by applicable law, prior to such time as shares of Series A Preferred Stock are issued and
outstanding, the Board of Directors may modify, amend, alter or revoke any of the number of shares of Series A Preferred Stock,
the powers, preferences or special rights of the Series A Preferred Stock or the other terms of the Series A Preferred
Stock. From and after such time as shares of Series A Preferred Stock are issued and outstanding, the Restated Articles of
Incorporation of the Corporation shall not be amended in any manner that would materially alter or change the powers, preferences
or special rights of the Series A Preferred Stock so as to affect them adversely without the affirmative vote of the holders
of at least two-thirds of the outstanding shares of Series A Preferred Stock, voting together as a single class.

 

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

 

    	B-4

    	 

    

	EXHIBIT C

 

[Form of Right Certificate]

 

	Certificate No. R-	_______ Rights

 

  NOT EXERCISABLE AFTER JANUARY 15, 2018 (SUBJECT TO EXTENSION) OR EARLIER IF REDEMPTION, EXCHANGE OR TERMINATION OCCURS ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.

 

Right Certificate

 

HUDSON GLOBAL, INC.

 

This certifies that ________________,
or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Amended and Restated Rights Agreement, dated as of January 15, 2015, and
as such agreement may be amended (the “Rights Agreement”), between Hudson Global, Inc., a Delaware corporation (the
“Company”), and Computershare Inc. (the “Rights Agent”), to purchase from the Company at any time after
the Distribution Date (as such term is defined in the Rights Agreement) and prior to 5:00 P.M., New York, New York time, on
January 15, 2018, subject to extension, or earlier redemption, exchange or termination of the Rights as provided in the Rights
Agreement, at the office or offices of the Rights Agent designated for such purpose, or at the office of its successor as Rights
Agent, one one-hundredth of one fully paid nonassessable share of Series A Junior Participating Preferred Stock, par value $.001
per share (“Preferred Shares”), of the Company, at a purchase price of $8.50 per one one-hundredth of a Preferred Share
(the “Purchase Price”), upon presentation and surrender of this Right Certificate with the Form of Election to Purchase
properly completed and duly executed. The number of Rights evidenced by this Right Certificate (and the number of one one-hundredths
of a Preferred Share which may be purchased upon exercise hereof) set forth above, and the Purchase Price set forth above, are
the number and Purchase Price as of January 15, 2015, based on the Preferred Shares as constituted at such date. As provided in
the Rights Agreement, the Purchase Price and the number of one one-hundredths of a Preferred Share which may be purchased upon
the exercise of the Rights evidenced by this Right Certificate are subject to modification and adjustment upon the happening of
certain events.

 

This Right Certificate
is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description
of the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders
of the Right Certificates. Copies of the Rights Agreement are on file at the principal executive offices of the Company and the
above-mentioned offices of the Rights Agent.

 

    	C-1

    	 

    

 

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

 

Subject to the provisions
of the Rights Agreement, the Rights evidenced by this Certificate may be redeemed by the Company at a redemption price of $.001
per Right.

 

The Board of Directors
of the Company may, at its option, at any time after any Person becomes an Acquiring Person, but prior to such Person’s acquisition
of 50% or more of the outstanding shares of Common Stock, par value $.001 per share (“Common Stock”), of the Company,
exchange the Rights evidenced by the certificates for Preferred Shares or shares of Common Stock, at an exchange ratio of one one-hundredth
of a Preferred Share or one share of Common Stock, as the case may be, per Right, subject to adjustment, as provided in the Rights
Agreement.

 

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

 

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

 

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

 

    	C-2

    	 

    

 

WITNESS the facsimile
signature of the proper officers of the Company and its corporate seal. Dated as of ____________, ____.

 

	ATTEST:	 	HUDSON GLOBAL, INC.
	 	 	 	 
	 	 	By:	 
	 	 	 	Title:	 

 

Countersigned:

 

 

COMPUTERSHARE INC.

 

	By:	 	 
	 	Authorized Signature	 

    	C-3

    	 

    

 

[Form of Reverse Side of Right Certificate]

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder
if such

holder desires to transfer the Right Certificate.)

 

FOR VALUE RECEIVED
_______________________________ hereby sells, assigns and transfers unto _____________________________________________________________________________________

(Please print name and address of transferee)

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

 

Dated:____________, ____

 

	 	 
	 	Signature

 

Signature Guaranteed:

 

The undersigned hereby
certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or an Affiliate
or Associate thereof (as defined in the Rights Agreement).

 

	 	 
	 	Signature

 

 

 

    	C-4

    	 

    

 

[Form of Reverse Side of Right Certificate
— continued]

 

FORM OF ELECTION TO PURCHASE

 

(To be executed if holder desires to

exercise the Right Certificate.)

 

To HUDSON GLOBAL, INC.:

 

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

 

Please insert social security

or other identifying number

  

	 
	(Please print name and address)
	 
	 

  

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

 

Please insert social security

or other identifying number

 

	 
	(Please print name and address)
	 
	 

 

Dated:____________, ____

 

	 	 
	 	Signature

 

Signature Guaranteed:

 

Signatures must be guaranteed
by a member firm of a registered national securities exchange, a member of the Financial Industry Regulatory Authority, or a commercial
bank or trust company having an office or correspondent in the United States.

 

    	C-5

    	 

    

 

[Form of Reverse Side of Right Certificate
— continued]

  

 

 

The undersigned hereby
certifies that the Rights evidenced by this Right Certificate are not beneficially owned by an Acquiring Person or an Affiliate
or Associate thereof (as defined in the Rights Agreement).

 

	 	 
	 	Signature

 

 

 

NOTICE

 

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

 

In the event the certification
set forth above in the Form of Assignment or the Form of Election to Purchase, as the case may be, is not completed, the Company
and the Rights Agent will deem the beneficial owner of the Rights evidenced by this Right Certificate to be an Acquiring Person
or an Affiliate or Associate thereof (as defined in the Rights Agreement) and such Assignment or Election to Purchase will not
be honored.

 

    	C-6

    	 

    

	EXHIBIT D

 

HUDSON GLOBAL, INC.

 

SUMMARY OF RIGHTS TO PURCHASE

PREFERRED SHARES

 

On February 2, 2005,
the Board of Directors (the “Board”) of Hudson Global, Inc. (the “Company”) entered into a rights agreement
and declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock,
$.001 par value per share (“Common Shares”), of the Company. The dividend was payable upon the close of business on
February 28, 2005 to the stockholders of record upon the close of business on February 28, 2005. The Board extended the term of
and otherwise amended and restated that rights agreement on January 15, 2015, in an effort to protect stockholder value by attempting
to diminish the risk that the Company’s ability to use its net operating losses (“NOLs”) to reduce potential
future federal income tax obligations may become substantially limited.

 

The Company is providing
the following summary description of the Amended and Restated Rights Agreement (the “Rights Agreement”) entered into
between the Company and Computershare Inc. (the “Rights Agent”) on January 15, 2015. Please note, however, that this
description is only a summary, and is not complete, and should be read together with the entire Rights Agreement, which the Company
has filed with the Securities and Exchange Commission as an exhibit to an amendment to a Registration Statement on Form 8-A. A
copy of the Rights Agreement is also available free of charge from the Company.

 

The Rights. The
Rights will initially trade with, and will be inseparable from, the Common Shares. The Rights are evidenced only by certificates
that represent Common Shares. New Rights will accompany any new Common Shares the Company issues until the Distribution Date described
below or until the Rights are redeemed or the Rights Agreement expires. Until a Right is exercised as described below, the holder
thereof, as such, will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive
dividends.

 

Exercise Price.
Each Right entitles the registered holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating
Preferred Stock, par value $.001 per share (“Preferred Shares”), of the Company at a price of $8.50 per one one-hundredth
of a Preferred Share, subject to adjustment as provided in the Rights Agreement (the “Purchase Price”).

 

Exercisability.
The Rights will not be exercisable until the earlier of (i) ten days following a public announcement, or the Board concluding,
that a person or group of affiliated or associated persons has become an Acquiring Person by, subject to certain exceptions, acquiring
beneficial ownership of 4.99% or more of the outstanding Common Shares as described below, or (ii) ten business days (or such later
date as may be determined by the Board prior to such time as any person becomes an Acquiring Person) following the commencement
of, or announcement of an intention to make, a tender offer or exchange offer the consummation of which would result in a person
or group becoming an Acquiring Person.

 

The date on which the
Rights become exercisable is referred to in the Rights Agreement as the “Distribution Date.” Until that date, the certificates
for the Common Shares will also evidence the Rights, and any transfer of Common Shares will constitute a transfer of Rights. After
that date, the Rights will separate from the Common Shares and be evidenced by book entry credits or by Rights certificates that
the Company will mail to all eligible holders of Common Shares. Any Rights held by an Acquiring Person are void and may not be
exercised.

 

    	D-1

    	 

    

 

Acquiring Person.
An Acquiring Person is any person that becomes, by itself or together with its affiliates and associates, a beneficial owner
of 4.99% or more of the Common Shares then outstanding, but will not include (i) the Company, its subsidiaries and certain benefit
plans of the Company and its subsidiaries, (ii) any of certain “grandfathered” persons (“Grandfathered Persons”)
that would otherwise be Acquiring Persons as of the effective time of the Rights Agreement and that continue to qualify for this
status by not acquiring additional Common Shares or (iii) any person who or which the Board determines, in its sole discretion,
has inadvertently become a beneficial owner of 4.99% or more of the Common Shares then outstanding (or has inadvertently failed
to continue to qualify as a Grandfathered Person), provided that such person or its affiliates and associates promptly divest sufficient
Common Shares so that the percentage stock ownership of such person and its affiliates and associates is less than 4.99% of the
Common Shares then outstanding (or, in the case of any person who or which has inadvertently failed to continue to qualify as a
Grandfathered Person, the Common Shares that caused such person to so fail to qualify as a Grandfathered Person). In addition,
the Board, in its sole discretion, may (a) prior to the consummation of a transaction that would result in a person becoming an
Acquiring Person, upon the request of such person, determine that such person’s consummation of the transaction will not
result in such person becoming an Acquiring Person and (b) following the consummation of a transaction that results in a person
becoming an Acquiring Person, upon the request of such person or on its own accord, determine that such person is not an Acquiring
Person as a result of such transaction.

 

Preferred Shares.
Preferred Shares purchasable upon the exercise of Rights will not be redeemable. Each Preferred Share will be entitled to a minimum
preferential quarterly dividend payment of $1.00 per share but will be entitled to an aggregate dividend of 100 times the dividend
declared per Common Share. In the event of liquidation, the holders of the Preferred Shares will be entitled to a minimum preferential
liquidation payment of $100 per share but will be entitled to an aggregate payment of 100 times the payment made per Common Share.
Each Preferred Share will have 100 votes, voting together with the Common Shares. Finally, in the event of any merger, consolidation
or other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to receive 100 times the amount
received per Common Share. These rights are protected by customary anti-dilution provisions.

 

Because of the nature
of the Preferred Shares’ dividend, voting and liquidation rights, the value of the one one-hundredth interest in a Preferred
Share purchasable upon exercise of each Right should approximate the value of one Common Share.

 

Flip-In. Upon
any person or group becoming an Acquiring Person, each holder of a Right, other than the Acquiring Person, will have the right
to receive, upon exercise of such Right, that number of Common Shares having a market value equal to the then current Purchase
Price divided by 50% of the market closing price of a Common Share on the trading day immediately preceding the date on which such
Right is exercised. In certain circumstances, the holder of a Right may receive upon exercise, in lieu of Common Shares, cash,
property or other securities of the Company or a reduction in the Purchase Price.

 

Expiration. The
Rights will expire on the earliest of (i) the date of the Company’s 2015 annual meeting of stockholders (the “2015
Annual Meeting”) if the Company’s stockholders do not approve the Rights Agreement at the 2015 Annual Meeting, (ii)
January 15, 2018, (iii) the time at which the Rights are redeemed as described below, (iv) the time at which the Rights are exchanged
as described below, (v) the repeal of Section 382 of the Internal Revenue Code if the Board determines that the Rights Agreement
is no longer necessary for the preservation of the Company’s NOLs, and (vi) the beginning of a taxable year of the Company
to which the Board determines that no NOLs may be carried forward.

 

    	D-2

    	 

    

 

Redemption. The
Board may redeem the Rights for $.001 per Right at any time before any person or group becomes an Acquiring Person. If the Board
redeems any Rights, it must redeem all of the Rights. Once the Rights are redeemed, the only right of a holder of Rights, as such,
will be to receive the redemption price of $.001 per Right. The redemption price will be adjusted if the Company effects a stock
split or pays a dividend in the form of Common Shares.

 

Exchange. After
a person or group becomes an Acquiring Person, but before an Acquiring Person owns 50% or more of the outstanding Common Shares,
the Board may extinguish the Rights by exchanging one Common Share or an equivalent security for each Right, other than Rights
held by the Acquiring Person.

 

Anti-Dilution Provisions.
The Board may adjust the Purchase Price, the number of Preferred Shares or Common Shares issuable upon exercise of a Right and
the number of outstanding Rights to prevent dilution that may occur from a stock dividend, a stock split or a reclassification
of the Preferred Shares or Common Shares. No adjustments to the Purchase Price of less than 1% will be made. No fractional Preferred
Shares will be issued (other than fractions which are integral multiples of one one-hundredth of a Preferred Share). In lieu thereof,
an adjustment in cash will be made based on the market price of the Preferred Shares on the last trading day prior to the date
of exercise.

 

Amendments. The
terms of the Rights Agreement may be amended by the Board without the consent of the holders of the Rights. After a person or group
becomes an Acquiring Person, the Board generally may not amend the Rights Agreement in any way that adversely affects holders of
the Rights.

 

Anti-Takeover Effects.
The Rights may have certain anti-takeover effects. The Rights may cause substantial dilution to any person or group that attempts
to acquire the Company without the approval of the Board. As a result, the overall effect of the Rights may be to render more difficult
or discourage a merger, tender offer or other business combination involving the Company that is not supported by the Board.

 

    	D-3

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