Document:

psb-20171231 10K (EX-1012)

		

			Exhibit 10.12

		

		
			PS BUSINESS PARKS, L.P.
		

		
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			AMENDMENT TO AGREEMENT OF LIMITED PARTNERSHIP RELATING TO
		

		
			5.20% SERIES Y CUMULATIVE REDEEMABLE PREFERRED UNITS
		

		
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			This Amendment to the Agreement of Limited Partnership of PS Business Parks, L.P., a California limited partnership (the “Partnership”), dated as of December 7, 2017 (this “Amendment”), amends the Agreement of Limited Partnership of the Partnership, dated as of March 17, 1998, as amended, by and among PS Business Parks, Inc. (the “General Partner”) and each of the limited partners described on Exhibit A to that partnership agreement (the “Partnership Agreement”). Section references are (unless otherwise specified) references to sections in this Amendment.
		

		
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			WHEREAS, the General Partner agreed to issue up to 8,000,000 Depositary Shares each representing 1/1000th of a share of the General Partner’s preferred stock designated as the “5.20% Cumulative Preferred Stock, Series Y” (the “Depositary Shares”) for a price of $25.00 per Depositary Share;
		

		
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			WHEREAS, Section 4.1(b)(2) of the Partnership Agreement requires the General Partner to contribute to the Partnership the funds raised through the issuance of additional shares of the General Partner in return for additional Partnership Units, and provides that the General Partner’s capital contribution shall be deemed to equal the amount of the gross proceeds of that share issuance (i.e., the net proceeds actually contributed, plus any underwriter’s discount or other expenses incurred, with any such discount or expense deemed to have been incurred on behalf of the Partnership);
		

		
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			WHEREAS, Section 4.2(a) of the Partnership Agreement provides generally for the creation and issuance of Partnership Units with such designations, preferences and relative, participating, optional or other special rights, powers and duties, including rights, powers and duties senior to other Partnership Interests, all as shall be determined by the General Partner, without the consent of the Limited Partners, and Section 4.2(b) of the Partnership Agreement specifically contemplates the issuance of Units to the General Partner having designations, preferences and other rights, all such that the economic interests are substantially similar to the designations, preferences and other rights of shares issued by the General Partner, such as the Depositary Shares;
		

		
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			WHEREAS, the General Partner desires to cause the Partnership to issue additional Units of a new class and series, with the designations, preferences and relative, participating, optional or other special rights, powers and duties set forth herein; and
		

		
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			WHEREAS, the General Partner desires by this Amendment to so amend the Partnership Agreement as of the date first set forth above to provide for the designation and issuance of such new class and series of Units.
		

		
			NOW, THEREFORE, the Partnership Agreement is hereby amended by establishing and fixing the rights, limitations and preferences of a new class and series of Units as follows:
		

		
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			Section 1. Definitions. Capitalized terms not otherwise defined herein shall have their respective meanings set forth in the Partnership Agreement. Capitalized terms that are used in this Amendment shall have the meanings set forth below:
		

		
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				 (a)
			“Liquidation Preference” means, with respect to the Series Y Preferred Units (as defined below), $25.00 per Series Y Preferred Unit, plus the amount of any accumulated and unpaid Priority Return (as defined below) with respect to such Series Y Preferred Unit, whether or not declared, minus any distributions in excess of the Priority Return that has accrued with respect to such Series Y Preferred Units, to the date of payment.

		
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				 (b)
			“Parity Preferred Units” means any class or series of Partnership Interests (as such term is defined in the Partnership Agreement) of the Partnership now or hereafter authorized, issued or outstanding and expressly designated by the Partnership to rank on a parity with the Series Y Preferred Units with respect to distributions and rights upon voluntary or involuntary liquidation, winding-up or dissolution of the Partnership, including the 6.00% Series T Cumulative Redeemable Preferred Units (the “Series T Preferred Units”), the 5.75% Series U Cumulative

		
			 
		

		

		

		 

 

		

			 

		

		Redeemable Preferred Units (the “Series U Preferred Units”), the 5.70% Series V Cumulative Redeemable Preferred Units (the “Series V Preferred Units”), the 5.20% Series W Cumulative Redeemable Preferred Units (the “Series W Preferred Units”) and the 5.25% Series X Cumulative Redeemable Preferred Units (the “Series X Preferred Units”). Notwithstanding the differing allocation rights set forth in Section 4 below that apply to the Series T, U, V, W and X Preferred Units.
		

		
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				 (c)
			“Priority Return” means an amount equal to 5.20% per annum, of the Liquidation Preference per Series Y Preferred Unit, commencing on the date of issuance of such Series Y Preferred Unit, determined on the basis of a 360-day year (and twelve 30-day months), cumulative to the extent not distributed on any Series Y Preferred Unit Distribution Payment Date (as defined below).

		
			Section 2. Creation of Series Y Preferred Units. (a) Designation and Number. Pursuant to Section 4.2(a)  of the Partnership Agreement, a series of Partnership Units (as such term is defined in the Partnership Agreement) in the Partnership designated as the “5.20% Series Y Cumulative Redeemable Preferred Units” (the “Series Y Preferred Units”) is hereby established effective as of December 7, 2017. The number of Series Y Preferred Units shall be 8,000,000. The Holders of Series Y Preferred Units shall not have any Percentage Interest (as such term is defined in the Partnership Agreement) in the Partnership.
		

			
	
			
				 (b)
			Capital Contribution. In return for the issuance to the General Partner of the Series Y Preferred Units set forth on Exhibit C to this Amendment, the General Partner has contributed to the Partnership the funds raised through the General Partner’s issuance of the Depositary Shares (the General Partner’s capital contribution shall be deemed to equal the amount of the gross proceeds of that share issuance, i.e., the net proceeds actually contributed, plus any underwriter’s discount or other expenses incurred, with any such discount or expense deemed to have been incurred by the General Partner on behalf of the Partnership).

			
	
			
				 (c)
			Construction. The Series Y Preferred Units have been created and are being issued in conjunction with the General Partner’s issuance of the Depositary Shares relating to the General Partner’s 5.20% Cumulative Preferred Stock, Series Y, and as such, the Series Y Preferred Units are intended to have designations, preferences and other rights, all such that the economic interests are substantially similar to the designations, preferences and other rights of the Depositary Shares, and the terms of this Amendment shall be interpreted in a fashion consistent with this intent.

		
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			Section 3. Distributions. (a) Payment of Distributions. Subject to the rights of holders of Parity Preferred Units as to the payment of distributions, pursuant to Section 5.1 of the Partnership Agreement, holders of Series Y Preferred Units shall be entitled to receive, when, as and if declared by the Partnership acting through the General Partner, the Priority Return. Such distributions shall be cumulative, shall accrue from the original date of issuance of the Series Y Preferred Units and, notwithstanding Section 5.1 of the Partnership Agreement, will be payable
		

		
			(i) quarterly in arrears on March 31, June 30, September 30 and December 31 of each year (except in the case of the dividend for the initial dividend period which will be paid on March 29, 2018) commencing on March 29, 2018 (for the period from the original date of issuance to but excluding April 1, 2018) and (ii) in the event of a redemption of Series Y Preferred Units (each a “Series Y Preferred Unit Distribution Payment Date”). If any date on which distributions are to be made on the Series Y Preferred Units is not a Business Day (as defined below), except in the case of the dividend for the initial dividend period which will be paid March 29, 2018, then payment of the distribution to be made on such date will be made on the Business Day immediately preceding such date with the same force and effect as if made on such date. Distributions on the Series Y Preferred Units will be made to the holders of record of the Series Y Preferred Units on the relevant record dates to be fixed by the Partnership acting through the General Partner, which record dates shall in no event exceed fifteen (15) Business Days prior to the relevant Series Y Preferred Unit Distribution Payment Date. Business Day shall be any day other than a Saturday, Sunday or day on which banking institutions in the State of New York or the State of California are authorized or obligated by law to close, or a day which is or is declared a national or a New York or California state holiday.
		

		
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				 (b)
			Prohibition on Distribution. No distributions on Series Y Preferred Units shall be authorized by the General Partner or paid or set apart for payment by the Partnership at any such time as the terms and provisions of any agreement of the Partnership or the General Partner, including any agreement relating to their indebtedness, prohibits such authorization, payment or setting apart for payment or provides that such authorization, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or to the extent that such authorization or payment shall be restricted or prohibited by law.

		
			 
		

		 

 

		

			 

		

			
	
			
				 (c)
			Distributions Cumulative. Distributions on the Series Y Preferred Units will accrue whether or not the terms and provisions of any agreement of the Partnership, including any agreement relating to its indebtedness, at any time prohibit the current payment of distributions, whether or not the Partnership has earnings, whether or not there are funds legally available for the payment of such distributions and whether or not such distributions are authorized. Accrued but unpaid distributions on the Series Y Preferred Units will accumulate as of the Series Y Preferred Unit Distribution Payment Date on which they first become payable. Distributions on account of arrears for any past distribution periods may be declared and paid at any time, without reference to a regular Series Y Preferred Unit Distribution Payment Date, to holders of record of the Series Y Preferred Units on the record date fixed by the Partnership acting through the General Partner which date shall not exceed fifteen (15) Business Days prior to the payment date. Accumulated and unpaid distributions will not bear interest.

		
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				 (d)
			

			
	
			
			Priority as to Distributions. Subject to the provisions of Article 13 of the Partnership Agreement:

		
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				 (i)
			So long as any Series Y Preferred Units are outstanding, no distribution of cash or other property shall be authorized, declared, paid or set apart for payment on or with respect to any class or series of Partnership Interests ranking junior as to the payment of distributions or rights upon a voluntary or involuntary liquidation, dissolution or winding-up of the Partnership to the Series Y Preferred Units (collectively, “Junior Units”), nor shall any cash or other property be set aside for or applied to the purchase, redemption or other acquisition for consideration of any Series Y Preferred Units, any Parity Preferred Units or any Junior Units, unless, in each case, all distributions accumulated on all Series Y Preferred Units and all classes and series of outstanding Parity Preferred Units have been paid in full. The foregoing sentence shall not prohibit (x) distributions payable solely in Junior Units, or (y) the conversion of Junior Units or Parity Preferred Units into Partnership Interests ranking junior to the Series Y Preferred Units.

			
	
			
				 (ii)
			So long as distributions have not been paid in full (or a sum sufficient for such full payment is not irrevocably deposited in trust for payment) upon the Series Y Preferred Units, all distributions authorized and declared on the Series Y Preferred Units and all classes or series of outstanding Parity Preferred Units shall be authorized and declared so that the amount of distributions authorized and declared per Series Y Preferred Unit and such other classes or series of Parity Preferred Units shall in all cases bear to each other the same ratio that accrued distributions per Series Y Preferred Unit and such other classes or series of Parity Preferred Units (which shall not include any accumulation in respect of unpaid distributions for prior distribution periods if such class or series of Parity Preferred Units do not have cumulative distribution rights) bear to each other.

		
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				 (e)
			No Further Rights. Holders of Series Y Preferred Units shall not be entitled to any distributions, whether payable in cash, other property or otherwise, in excess of the full cumulative distributions described herein.

		
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			Section 4. Allocations. Section 6.1(a)(ii) of the Partnership Agreement is amended to read, in its entirety, as follows:
		

		
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			“(ii) (A) Notwithstanding anything to the contrary contained in this Agreement, in any taxable year: (1) the holders of Series T, U, V, W, X and Y Preferred Units shall be allocated an amount of gross income equal to the Priority Return distributed to such holders in such taxable year.
		

		
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				 (B)
			After the Capital Account balances of all Partners other than holders of any series of Preferred Units have been reduced to zero, Losses of the Partnership that otherwise would be allocated so as to cause deficit Capital Account balances for those other Partners shall be allocated to the holders of the Series T, U, V, W, X and Y Preferred Units in proportion to the positive balances of their Capital Accounts until those Capital Account balances have been reduced to zero. If Losses have been allocated to the holders of the Series T, U, V, W, X and Y Preferred Units pursuant to the preceding sentence, the first subsequent Profits shall be allocated to those preferred partners so as to recoup, in reverse order, the effects of the loss allocations.

			
	
			
				 (C)
			Upon liquidation of the Partnership or the interest of the holders of Series T, U, V, W, X and Y Preferred Units in the Partnership, items of gross income or deduction shall be allocated to the holders of Series T, U, V, W, X and Y Preferred Units in a manner such that, immediately prior to such liquidation, the Capital Account balances of such holders shall equal the amount of their Liquidation Preferences.”

		
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			Section 5. Optional Redemption. The Series Y Preferred Units shall be redeemed at the same time, to the same extent, and applying, except as set forth below, similar procedures, as any redemption by the General Partner
		

		
			 
		

		

		

		 

 

		

			 

		

		of the Depositary Shares. The redemption price, payable in cash, shall equal the Liquidation Preference (the “Series Y Redemption Price”). Unless otherwise agreed, the Partnership will deliver into escrow with an escrow agent acceptable to the Partnership and the holders of the Series Y Preferred Units being redeemed (the “Escrow Agent”) the Series Y Redemption Price and an executed Redemption Agreement, in substantially the form attached as  Exhibit A (the “Redemption Agreement”), and an Amendment to the Agreement of Limited Partnership evidencing the Redemption, in substantially the form attached as Exhibit B. The holders of the Series Y Preferred Units             to be redeemed will also deliver into escrow with the Escrow Agent an executed Redemption Agreement and an executed Amendment to the Agreement of Limited Partnership evidencing the redemption. Upon delivery of all      of the above-described items by both parties, on the redemption date the Escrow Agent shall release the Series Y Redemption Price to the holders of the Series Y Preferred Units and the fully-executed Redemption Agreement and Amendment to Agreement of Limited Partnership to both parties. On and after the date of redemption, distributions will cease to accumulate on the Series Y Preferred Units called for redemption, unless the Partnership defaults in the payment of the Series Y Redemption Price. The Redemption Right (as such term is defined in the Partnership Agreement) given to Limited Partners (as such term is defined in the Partnership Agreement) in Section 8.6 of the Partnership Agreement shall not be available to the holders of the Series Y Preferred Units and all references to Limited Partners in said Section 8.6 (and related provisions of the Partnership Agreement) shall not include holders of the Series Y Preferred Units.
		

		
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			Section 6. Voting Rights. Holders of the Series Y Preferred Units will not have any voting rights or right to consent to any matter requiring the consent or approval of the Limited Partners, except as set forth in Section 14.1 of the Partnership Agreement and in this Section 6. Solely for purposes of Section 14.1 of the Partnership Agreement, each Series Y Preferred Unit shall be treated as one Partnership Unit.
		

		
			Section 7. Transfer Restrictions. The holders of Series Y Preferred Units shall be subject to all of the provisions of Section 11 of the Partnership Agreement.
		

		
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			Section 8. No Conversion Rights. The holders of the Series Y Preferred Units shall not have any rights to convert such units into shares of any other class or series of stock or into any other securities of, or interest in, the Partnership.
		

		
			Section 9. No Sinking Fund. No sinking fund shall be established for the retirement or redemption of Series Y Preferred Units.
		

		
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			Section 10. Exhibit A to Partnership Agreement. In order to duly reflect the issuance of the Series Y Preferred Units provided for herein, the Partnership Agreement is hereby further amended pursuant to Section 12.3  of the Partnership Agreement by replacing the current form of Exhibit A to the Partnership Agreement with the form of Exhibit A that is attached to this Amendment as
		

		
			Exhibit C.
		

		
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			Section 11. Inconsistent Provisions. Nothing to the contrary contained in the Partnership Agreement shall limit any of the rights or obligations set forth in this Amendment.
		

		
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			lN WITNESS WHEREOF, this Amendment has been executed as of the date first above written.
		

		
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						PS BUSINESS PARKS, INC.

				
	
					
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						By:

					
					
						/s/ Maria R. Hawthorne

				
	
					
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						Name:

					
					
						Maria R. Hawthorne

				
	
					
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						Title:

					
					
						President and Chief Executive Officer

				

		
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			[Signature Page to Amendment to Agreement of Limited Partnership]
		

		
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		Exhibit A
		

		
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			FORM OF REDEMPTION AGREEMENT
		

		
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			THIS REDEMPTION AGREEMENT (the “Agreement”) is entered into effective as of theday of,, by and between(the “Retiring Partner”), and PS Business Parks, L.P., a California limited partnership (the “Partnership”).
		

		
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			RECITALS:
		

		
			WHEREAS, the Agreement of Limited Partnership of the Partnership, dated as of March 17, 1998, as amended, was amended by an Amendment to Agreement of Limited Partnership Relating to 5.20% Series Y Cumulative Redeemable Preferred Units (the “Amendment”), as further amended from time to time;
		

		
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			WHEREAS, the Retiring Partner ownsof the 5.20% Series Y Cumulative Redeemable Preferred Units in the Partnership (the “Series Y Preferred Units”); and
		

		
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			WHEREAS, the Partnership desires to redeem the Series Y Preferred Units of the Retiring Partner, and the Retiring Partner desires to liquidate its Series Y Preferred Units (the “Redemption”) pursuant to the Amendment and based on the representations and under the terms and conditions set forth below;
		

		
			NOW, THEREFORE, in consideration of the mutual covenants, representations and agreements herein contained, the parties hereto, intending to be legally bound, do covenant and agree as follows:
		

		
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				 1.
			Liquidation of Retiring Partner. In satisfaction of the terms and conditions set forth herein and in the Amendment, the Retiring Partner’s Series Y Preferred Units are hereby completely liquidated and the Retiring Partner immediately and automatically ceases to be a limited partner in the Partnership in exchange for the payment of the Series Y Redemption Price (as defined in the Amendment and in accordance with the provisions set forth in the Amendment) and for other good and valuable consideration.

		
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				 2.
			

			
	
			
			Representations of Retiring Partner. The Retiring Partner represents and warrants to the Partnership that:

		
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				 (a)
			The Retiring Partner is duly organized and validly existing under the laws of the State ofand has been duly authorized by all necessary and appropriate [limited liability company] [corporate] [partnership] action to enter into this Agreement and to consummate the transactions contemplated herein. This Agreement is a valid and binding obligation of the Retiring Partner, enforceable against the Retiring Partner in accordance with its terms, except insofar as such enforceability may be affected by bankruptcy, insolvency or similar laws affecting creditor’s rights generally and the availability of any particular equitable remedy.

		
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				 (b)
			The Retiring Partner has not sold, assigned or otherwise disposed of all or any portion of the Series Y Preferred Units and the Series Y Preferred Units are free of any liens, security interests, encumbrances or other restrictions, whether existing of record or otherwise.

			
	
			
				 (c)
			The execution of this Agreement by the Retiring Partner and the performance of its obligations hereunder will not violate any contract, mortgage, indenture, or other similar restriction to which the Retiring Partner is a party or by which its assets are bound.

		
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				 (d)
			Neither the execution nor the delivery of this Agreement nor the consummation of the transactions contemplated herein nor fulfillment of or compliance with the terms and conditions hereof (a) conflict with or will result in a breach of any of the terms, conditions or provisions of (i) the organizational and governing documents of the Retiring Partner or (ii) any agreement, order, judgment, decree, arbitration award, statute, regulation or instrument to which the Retiring Partner is a party or by which it or its assets are bound, or (b) constitutes or will constitute a breach, violation or default under any of the foregoing. No consent or approval, authorization, order, regulation or qualification of any governmental entity or any other person is required for the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby by the Retiring Partner.

		
			 
		

		 

		

			 

		

 

		

			 

		

			
	
			
				 3.
			Representations and Warranties of the Partnership. The Partnership represents and warrants to the Retiring Partner as follows:

		
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				 (a)
			The Partnership is duly organized and validly existing under the laws of the State of California and has been duly authorized by all necessary and appropriate partnership action to enter into this Agreement and to consummate the transactions contemplated herein. This Agreement is a valid and binding obligation of the Partnership enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally.

		
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				 (b)
			The execution of this Agreement by the Partnership and the performance of its obligations hereunder will not violate any contract, mortgage, indenture, or other similar restriction to which the Partnership is a party or by which the Partnership is bound.

		
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				 (c)
			Neither the execution nor the delivery of this Agreement nor the consummation of the transactions contemplated herein nor fulfillment of or compliance with the terms and conditions hereof (a) conflict with or will result in a breach of any of the terms, conditions or provisions of (i) the organizational and governing documents of the Partnership or (ii) any agreement, order, judgment, decree, arbitration award, statute, regulation or instrument to which the Partnership is a party or by which it or its assets are bound, or (b) constitutes or will constitute a breach, violation or default under any of the foregoing. No consent or approval, authorization, order, regulation or qualification of any governmental entity or any other person is required for the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby by the Partnership.

		
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				 (d)
			Consummation of the Redemption by the Partnership will not render the Partnership insolvent under California partnership law.

		
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				 4.
			

			
	
			
			Indemnification.

			
	
			
				 (a)
			The Retiring Partner covenants and agrees to indemnify the Partnership and hold it harmless against and with respect to any and all damage, loss, liability, deficiency, cost and expense, including reasonable attorneys’ fees,

		
			(i) resulting from any misrepresentation, breach of warranty or non-fulfillment of any agreement or covenant on the part of the Retiring Partner under this Agreement, and (ii) from any and all actions, suits, proceedings, demands, assessments, judgments, costs and legal and other expenses incident to any of the foregoing.
		

			
	
			
				 (b)
			The Partnership covenants and agrees to indemnify the Retiring Partner and hold it harmless against and with respect to any and all damage, loss, liability, deficiency, cost and expense, including reasonable attorneys’ fees,

		
			(i) resulting from any misrepresentation, breach of warranty or non-fulfillment of any agreement or covenant on the part of such Partnership under this Agreement and (ii) from any and all actions, suits, proceedings, demands, assessments, judgments, costs and legal and other expenses incident to any of the foregoing.
		

		
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				 5.
			Survival of Representations and Warranties. All representations, warranties, covenants and agreements of any of the parties hereto made in this Agreement shall survive the execution and delivery hereof, the closing hereunder, and the execution and delivery of all instruments and documents executed in connection therewith.

		
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				 6.
			Integration, Interpretation and Miscellaneous. This Agreement sets forth the entire understanding of the parties hereto with respect to the subject matter herein and it shall not be changed or terminated orally. This Agreement shall be construed in accordance with the laws of the State of California. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, and successors, or successors and assigns, as the case may be. The headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

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

		
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						RETIRING PARTNER:

				
	
					
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						By:

					
					
						 

				
	
					
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						Name:

				
	
					
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						Title:

				

		
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						PARTNERSHIP:

				
	
					
						PS Business Parks, L.P

				
	
					
						By: 

					
					
						PS Business Parks, Inc., its

				
	
					
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						General Partner

				
	
					
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						By:

					
					
						 

				
	
					
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						Name:

				
	
					
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						Title:

				

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		Exhibit B
		

		
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			FORM OF AMENDMENT TO
		

		
			AGREEMENT OF LIMITED PARTNERSHIP OF
		

		
			PS BUSINESS PARKS, L.P.
		

		
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			This Amendment to Agreement of Limited Partnership of PS Business Parks, L.P. (the “Partnership”), dated as of(this “Amendment”) is entered into by the General Partner of the Partnership, PS Business Parks, Inc., and, as a withdrawing Limited Partner of the Partnership (the “Withdrawing Partner”).
		

		
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			RECITALS:
		

		
			WHEREAS, capitalized terms used herein, unless otherwise defined, have the meanings assigned to such terms in the Agreement of Limited Partnership of the Partnership entered into as of March 17, 1998, as amended (the “Partnership Agreement”).
		

		
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			WHEREAS, pursuant to the redemption by the Partnership of the 5.20% Series Y Cumulative Redeemable Preferred Units pursuant to the terms and conditions set forth in that certain Redemption Agreement by and between the Partnership and the Withdrawing Partner, dated as of, 20,5.20% Series Y Cumulative Redeemable Preferred Units of the Withdrawing Partner have been redeemed by the Partnership and the General Partner desires to amend the Partnership Agreement to (a) set forth a revised list of all Partners of the Partnership as of the date hereof and (b) reflect the withdrawal of the Withdrawing Partner from the Partnership.
		

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

			
	
			
				 1.
			This Amendment shall be deemed effective as of the date first above written. Except as amended hereby, the Partnership Agreement shall remain in full force and effect and shall be otherwise unaffected hereby.

		
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				 2.
			To evidence the redemption of the 5.20% Series Y Cumulative Redeemable Preferred Units of the Withdrawing Partner and the withdrawal of the Withdrawing Partner as a Limited Partner of the Partnership, attached as Schedule A is a current list of Partners of the Partnership as of the date hereof.

			
	
			
				 3.
			The Withdrawing Partner is entering into this Amendment to evidence its withdrawal as a Limited Partner of the Partnership.

		
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				 4.
			This Amendment shall be deemed to be a contract made under the laws of the State of California and for all purposes shall be governed by and construed in accordance with the laws of such state.

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		IN WITNESS WHEREOF, the undersigned has caused this Amendment to be executed and delivered as of the date first above written.
		

		
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						GENERAL PARTNER:

				
	
					
						PS Business Parks, Inc.

				
	
					
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						By:

					
					
						 

				
	
					
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						Name:

				
	
					
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						Title:

				

		
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						WITHDRAWING LIMITED PARTNER:

				
	
					
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						By:

					
					
						 

				
	
					
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						Name:

				
	
					
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						Title:

				

		
			 
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		Exhibit C
		

		
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			Revised Exhibit A to the Partnership Agreement
		

		
			Please see attached.
		

		
			[Attach revised Exhibit A to the Partnership Agreement]
		

		
			EXHIBIT C (December 7, 2017)
		

		
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						Name of Partner 
(Date of Admission)

					
					
						Address

					
					
						 

					
					
						Agreed Value of
Contributed Property (1)

					
					
						 

					
					
						 

					
					
						Partnership Units

					
					
						 

					
					
						 

					
					
						Percentage Interest

				
	
					
						General Partner:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Total Common Shares

					
					
						 

					
					
						$

					740,803,000 
					
					
						 

					
					
						 

					25,888,324 
					
					
						 

					
					
						 

					77.99% 
				
	
					
						Total Common Units

					
					
						 

					
					
						$

					121,890,000 
					
					
						 

					
					
						 

					7,305,355 
					
					
						 

					
					
						 

					22.01% 
				
	
					
						TOTAL (General & Limited Partners; not Preferred Units)

					
					
						$

					862,693,000 
					
					
						 

					
					
						 

					33,193,679 
					
					
						 

					
					
						 

					100.00% 
				
	
					
						Limited Partners (Series T Preferred Units):

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						PS Business Parks, Inc. 
(May 14, 2012)

					
					
						701 Western Avenue
Glendale, CA 91201

					
					
						 

					130,000,000 
					
					
						 

					
					
						 

					5,200,000 
					
					
						 

					
					
						 

					11.93% 
				
	
					
						Limited Partners (Series U Preferred Units):

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						PS Business Parks, Inc. 
(September 14, 2012)

					
					
						701 Western Avenue
Glendale, CA 91201

					
					
						 

					230,000,000 
					
					
						 

					
					
						 

					9,200,000 
					
					
						 

					
					
						 

					21.11% 
				
	
					
						Limited Partners (Series V Preferred Units):

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						PS Business Parks, Inc. 
(March 14, 2013)

					
					
						701 Western Avenue
Glendale, CA 91201

					
					
						 

					110,000,000 
					
					
						 

					
					
						 

					4,400,000 
					
					
						 

					
					
						 

					10.09% 
				
	
					
						Limited Partners (Series W Preferred Units):

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						PS Business Parks, Inc. 
(October 20, 2016)

					
					
						701 Western Avenue
Glendale, CA 91201

					
					
						 

					189,750,000 
					
					
						 

					
					
						 

					7,590,000 
					
					
						 

					
					
						 

					17.41% 
				
	
					
						Limited Partners (Series X Preferred Units):

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						PS Business Parks, Inc. 
(September 21, 2017)

					
					
						701 Western Avenue
Glendale, CA 91201

					
					
						 

					230,000,000 
					
					
						 

					
					
						 

					9,200,000 
					
					
						 

					
					
						 

					21.11% 
				
	
					
						Limited Partners (Series Y Preferred Units):

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						PS Business Parks, Inc. 
(December 7, 2017)

					
					
						701 Western Avenue
Glendale, CA 91201

					
					
						 

					200,000,000 
					
					
						 

					
					
						 

					8,000,000 
					
					
						 

					
					
						 

					18.35% 
				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						TOTAL (Preferred Stock & Units)

					
					
						 

					
					
						$

					1,089,750,000 
					
					
						 

					
					
						 

					43,590,000 
					
					
						 

					
					
						 

					100.00% 
				

		
			﻿
		

			
	
			
				 (1)
			

			
	
			
			Agreed value is the agreed gross value of the property at the time of contribution less any liabilities to which the property is subject at that time.

		
			﻿
		

		
			 
		

		
			﻿Exhibit 4.1

 

 

 

 

 

RIGHTS AGREEMENT

 

Dated as
of February 24, 2018

 

between

 

HRG Group,
Inc.

 

and

 

AMERICAN
STOCK TRANSFER & TRUST COMPANY, LLC

 

as Rights
Agent

 

 

 

 

    

     

    

Table
of Contents

 

Page

 

	1.   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	9
	Section
            7.   Exercise of Rights; Purchase Price; Expiration Date of Rights	10
	Section
            8.   Cancellation and Destruction of Right Certificates	12
	Section
            9.   Status and Availability of Preferred Shares	12
	Section
            10.   Preferred Shares Record Date	12
	Section
            11.   Adjustment of Purchase Price, Number of Shares or Number of
    Rights	13
	Section
            12.   Certificate of Adjustment	19
	Section
            13.   Consolidation, Merger, Sale or Transfer of Assets or Earning
    Power	18
	Section
            14.   Fractional Rights and Fractional Shares	20
	Section
            15.   Rights of Action	21
	Section
            16.   Agreement of Right Holders	21
	Section
            17.   Right Certificate Holder Not Deemed a Stockholder	22
	Section
            18.   Concerning the Rights Agent	22
	Section
            19.   Merger or Consolidation or Change of Name of Rights Agent	23
	Section
            20.   Duties of Rights Agent	23
	Section
            21.   Change of Rights Agent	26
	Section
            22.   Issuance of New Right Certificates	27
	Section
            23.   Redemption	27
	Section
            24.   Exchange	28
	Section
            25.   Notice of Certain Events	29
	Section
            26.   Notices	30
	Section
            27.   Supplements and Amendments	30
	Section
            28.   Successors	31
	Section
            29.   Benefits of this Agreement	31

 

    i

     

    

 

Table
of Contents 

(continued)

Page

 

	Section
            30.   Severability	31
	Section
            31.   Governing Law	31
	Section
            32.   Counterparts	32
	Section
            33.   Descriptive Headings	32
	Section
            34.   Administration	32
	Section
            35.   Force Majeure	32

 

 

    ii

     

    

 

RIGHTS
AGREEMENT

 

This Rights
Agreement (this “Agreement”), dated as of February 24, 2018, is between HRG Group, Inc., a Delaware corporation
(the “Company”), and American Stock Transfer & Trust Company, LLC, a limited liability trust company (the
“Rights Agent”).

 

The Company
has generated certain Tax Benefits for United States federal income tax purposes and the Company desires to avoid an “ownership
change” within the meaning of Section 382 of the Code and to preserve the Company’s ability to utilize such Tax Benefits.

 

The Board
of Directors of the Company (the “Board of Directors”) has authorized and declared a dividend of one preferred
share purchase right (a “Right”) for each share of Common Stock, par value $0.01 per share, of the Company
outstanding on the Close of Business on March 8, 2018 (the “Record Date”) and has authorized the issuance of
one Right with respect to each additional Common Share issued by the Company between the Record Date and the earliest of (i) the
Close of Business on the Distribution Date, (ii) the Redemption Date and (iii) the Final Expiration Date, and additional Common
Shares that shall become outstanding after the Distribution Date as provided in Section 22 of this Agreement, each Right
initially representing the right to purchase one one-thousandth of a Preferred Share, subject to adjustment, upon the terms and
subject to the conditions hereof.

 

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

 

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

 

1.1             
“Acquiring Person” means any Person (other than an Exempt Person) who or which, together with all Affiliates
and Associates of such Person shall be the Beneficial Owner of 4.9 % or more of the Common Shares of the Company then outstanding,
but shall not include (i) the Company, (ii) any Subsidiary of the Company, (iii) CF Turul LLC, Leucadia National Corporation,
and any of their respective Subsidiaries, (iv) any employee benefit plan of the Company or of any Subsidiary of the Company, (v) any
entity holding Common Shares for or pursuant to the terms of any such employee benefit plan or (vi) any Person who or which,
at the time of the first public announcement of this Agreement, is a Beneficial Owner of 4.9% or more of the Common Shares of
the Company then outstanding (a “Grandfathered Stockholder”); provided, however, that if a Grandfathered
Stockholder becomes, after such time, the Beneficial Owner of any additional Common Shares then such Grandfathered Stockholder
shall no longer be deemed to be a Grandfathered Stockholder unless, upon such acquisition of Beneficial Ownership of additional
Common Shares, such Person is not the Beneficial Owner of 4.9% or more of the Common Shares then outstanding; provided,
further, that upon the first decrease of a Grandfathered Stockholder’s Beneficial Ownership below 4.9%, such Grandfathered
Stockholder shall no longer be deemed to be a Grandfathered Stockholder and this clause (vi) shall have no further force or effect
with respect to such Person. For the avoidance of doubt, in the event that after the time of the first public announcement of
this Agreement, any agreement, arrangement or understanding pursuant to which any Grandfathered Stockholder is deemed to be the
Beneficial Owner of Common Shares expires, terminates or no longer confers any benefit to

 

    -1-

     

    

 

or
imposes any obligation on the Grandfathered Stockholder, any direct or indirect replacement, extension or substitution of such
agreement, arrangement or understanding with respect to the same or different Common Shares that confers Beneficial Ownership
of Common Shares shall be considered the acquisition of Beneficial Ownership of additional Common Shares by the Grandfathered
Stockholder and render such Grandfathered Stockholder an Acquiring Person for purposes of this Agreement unless, upon such acquisition
of Beneficial Ownership of additional Common Shares, such person is not the Beneficial Owner of 4.9% or more of the Common Shares
then outstanding.

 

Notwithstanding
the foregoing, no Person shall become an Acquiring Person as the result of an acquisition of Common Shares by the Company (or
any other action of the Company or to which the Company is a party having the effect of reducing the number of shares outstanding)
which, by reducing the number of shares outstanding, increases the proportionate number of shares Beneficially Owned by such Person
to 4.9% (or such other percentage as would otherwise result in such Person becoming an Acquiring Person) or more of the Common
Shares of the Company then outstanding; provided, however, that if a Person would, but for the provisions of this
paragraph, become an Acquiring Person by reason of such action and following such action, such Person becomes the Beneficial Owner
of any additional Common Shares of the Company such that the Person is or thereby becomes the Beneficial Owner of 4.9% (or such
other percentage as would otherwise result in such Person becoming an Acquiring Person) or more of the Common Shares of the Company
then outstanding (other than as a result of any action of the Company or to which the Company is a party described in this paragraph),
then such Person shall be deemed to be an Acquiring Person.

 

Notwithstanding
the foregoing, if the Board of Directors determines in good faith that a Person who would otherwise be an Acquiring Person has
become such inadvertently, and such Person divests as promptly as practicable a sufficient number of Common Shares so that such
Person would no longer be an Acquiring Person, then such Person shall not be deemed to have become an Acquiring Person. Notwithstanding
the foregoing, if a bona fide swaps dealer who would otherwise be an “Acquiring Person” has become so as a result
of its actions in the ordinary course of its business that the Board of Directors determines, in its sole discretion, were taken
without the intent or effect of evading or assisting any other Person to evade the purposes and intent of this Agreement, or otherwise
seeking to control or influence the management or policies of the Company, then, and unless and until the Board of Directors shall
otherwise determine, such Person shall not be deemed to be an “Acquiring Person.”

 

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

 

1.2             
“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms
in Rule 12b-2 promulgated under the Exchange Act, as in effect on the date of this Agreement.

 

1.3             
A Person shall be deemed the “Beneficial Owner” of and shall be deemed to “Beneficially Own,”
or have “Beneficial Ownership” of, any securities:

 

    -2-

     

    

 

1.3.1       
which such Person actually owns (directly or indirectly) or would be deemed to actually or constructively own pursuant
to Section 382 of the Code and the Treasury Regulations promulgated thereunder (including any coordinated acquisition of securities
by any Persons who have a formal or informal understanding with respect to such acquisition (to the extent ownership of such securities
would be attributed to such Persons under Section 382 of the Code and the Treasury Regulations promulgated thereunder));

 

1.3.2       
which such Person or any of such Person’s Affiliates or Associates beneficially owns, directly or indirectly, within
the meaning of Rules 13d-3 or 13d-5 promulgated under the Exchange Act, as in effect on the date of this Agreement;

 

1.3.3       
which such Person or any of such Person’s Affiliates or Associates has (i) the right or ability to vote, cause
to be voted or control or direct the voting of pursuant to any agreement, arrangement or understanding, whether or not in writing;
provided, however, that a Person shall not be deemed the Beneficial Owner of, or to Beneficially Own, any security
if the agreement, arrangement or understanding to vote such security (A) arises solely from a revocable proxy or consent
given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable
rules and regulations promulgated under the Exchange Act and (B) is not also then reportable on a statement on Schedule 13D
under the Exchange Act (or any comparable or successor report) or (ii) the right or the obligation to become the Beneficial
Owner (whether such right is exercisable or such obligation is required to be performed immediately or only after the passage
of time, the occurrence of conditions or the satisfaction of regulatory requirements) pursuant to any agreement, arrangement or
understanding, whether or not in writing (other than customary agreements with and between underwriters and selling group members
with respect to a bona fide public offering of securities), written or otherwise, or upon the exercise of conversion rights, exchange
rights, rights (other than the Rights), warrants or options, or otherwise, through conversion of a security, pursuant to the power
to revoke a trust, discretionary account or similar arrangement, pursuant to the power to terminate a repurchase or similar so-called
“stock-borrowing” agreement or arrangement, or pursuant to the automatic termination of a trust, discretionary account
or similar arrangement; provided, however, that a Person shall not be deemed to be the Beneficial Owner of, or to
Beneficially Own, securities tendered pursuant to a tender or exchange offer made pursuant to, and in accordance with, the applicable
rules and regulations promulgated under the Exchange Act until such tendered securities are accepted for purchase or exchange;

 

1.3.4       
which are Beneficially Owned (within the meaning of the preceding subsections of this Section 1.3), directly or indirectly,
by any other Person with which such Person or any of such Person’s Affiliates or Associates has any agreement, arrangement
or understanding, whether or not in writing, for the purpose of acquiring, holding, voting or disposing of any securities of the
Company or cooperating in obtaining, changing or influencing the control of the Company; or

 

1.3.5       
which are the subject of, or the reference securities for, or that underlie, any Derivative Position of such Person or
any of such Person’s Affiliates or Associates, with the number of Common Shares deemed Beneficially Owned in respect of
a Derivative Position being the notional or other number of Common Shares in respect of such Derivative Position that is specified
in (i) one or more filings with the Securities and Exchange Commission by such

 

    -3-

     

    

 

Person
or any of such Person’s Affiliates or Associates or (ii) the documentation evidencing such Derivative Position as the basis
upon which the value or settlement amount of such Derivative Position, or the opportunity of the holder of such Derivative Position
to profit or share in any profit, is to be calculated in whole or in part (whichever of (i) or (ii) is greater), or if no such
number of Common Shares is specified in such filings or documentation (or such documentation is not available to the Board of
Directors), as determined by the Board of Directors in its reasonable discretion.

 

Notwithstanding
anything in this definition of Beneficial Owner to the contrary, the phrase “then outstanding,” when used with
reference to a Person’s Beneficial Ownership of securities of the Company, means the number of such securities then issued
and outstanding together with the number of such securities not then actually issued and outstanding which such Person would be
deemed to Beneficially Own hereunder.

 

1.4             
“Business Day” means 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.

 

1.5             
“Close of Business” on any given date means 5:00 p.m., New York time, on such date; provided,
however, that if such date is not a Business Day, it means 5:00 p.m., New York time, on the next succeeding Business
Day.

 

1.6             
“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

1.7             
“Common Shares,” when used with reference to the Company, means the shares of Common Stock, par value
$0.01 per share, of the Company. “Common Shares,” when used with reference to any Person other than the Company,
means the capital stock (or equity interest) with the greatest voting power of such other Person or, if such other Person is a
Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person.

 

1.8             
“Common Stock Equivalents” has the meaning set forth in Section 11.1.3(ii)(C).

 

1.9             
“Current Per Share Market Price” has the meaning set forth in Section 11.4.1.

 

1.10         
“Current Value” has the meaning set forth in Section 11.1.3(i)(A).

 

1.11         
“Derivative Position” shall mean any option, warrant, convertible security, stock appreciation right,
or other security, contract right or derivative position or similar right (including any “swap” transaction with respect
to any security, other than a broad based market basket or index), whether or not presently exercisable, that has an exercise
or conversion privilege or a settlement payment or mechanism at a price related to the value of the Common Shares or a value determined
in whole or in part with reference to, or derived in whole or in part from, the value of the Common Shares and that increases
in value as the market price or value of the Common Shares increases or that provides an opportunity, directly or indirectly,
to profit or share in any profit derived from any increase in the value of the Common Shares, in each case regardless of whether
(i) it conveys any voting rights in such Common Shares to any Person, (ii) it is required to be, or capable of being, settled
through delivery of Common Shares or (iii) any Person (including the holder of such Derivative Position) may have entered into
other transactions that hedge its economic effect.

 

    -4-

     

    

 

1.12         
“Distribution Date” has the meaning set forth in Section 3.1.

 

1.13         
“Earning Power” has the meaning set forth in Section 13.3.

 

1.14         
“Equivalent Preferred Shares” has the meaning set forth in Section 11.2.

 

1.15         
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

1.16         
“Exchange Property” has the meaning set forth in Section 24.6.

 

1.17         
“Exchange Ratio” has the meaning set forth in Section 24.1.

 

1.18         
“Exchange Recipients” has the meaning set forth in Section 24.6.

 

1.19         
“Exempt Person” shall mean any Person in respect of which the Board of Directors determines that (i)
such Person should be exempt from this Agreement and (ii) the exemption of such Person from this Agreement is consistent with
the preservation of the Company’s Tax Benefits, which determination shall be made in the sole and absolute discretion of
the Board of Directors; provided, that any Person will cease to be an Exempt Person if the Board of Directors makes a contrary
determination with respect to such Person regardless of the reason therefor.

 

1.20         
“Exempt Transaction” means (i) any transaction that the Board of Directors determines is exempt from
this Agreement, which determination shall be made in the sole and absolute discretion of the Board of Directors, including, for
the avoidance of doubt, the transactions contemplated by the Merger Agreement and (ii) any acquisition, disposition or other transfer
by CF Turul LLC, Leucadia National Corporation, or any of their respective Subsidiaries.

 

1.21         
“Final Expiration Date” means the earlier of (i) the Close of Business on the one-year anniversary date
of the date of this Agreement and (ii) the Close of Business on the date which is 60 days following the termination of the Merger
Agreement in accordance with its terms.

 

1.22         
“Grandfathered Stockholder” has the meaning set forth in Section 1.1.

 

1.23         
“Merger Agreement” means that certain Agreement and Plan of Merger dated as of the date hereof, by and
among the Company, Spectrum Brands Holdings, Inc., HRG SPV Sub I, Inc. and HRG SPV Sub II, LLC.

 

1.24         
“NYSE” means the New York Stock Exchange.

 

1.25         
“Person” means any individual, firm, corporation, partnership, limited partnership, limited liability
partnership, business trust, limited liability company, unincorporated association or other entity, and shall include any successor
(by merger or otherwise) of such entity.

 

    -5-

     

    

 

1.26         
“Preferred Shares” means shares of Series B Preferred Stock, par value $0.01 per share, of the Company
having such rights and preferences as are set forth in the form of Certificate of Designation set forth as Exhibit A
hereto, as the same may be amended from time to time.

 

1.27         
“Purchase Price” has the meaning set forth in Section 7.2.

 

1.28         
“Redemption Date” has the meaning set forth in Section 23.2.

 

1.29         
“Redemption Price” has the meaning set forth in Section 23.1.

 

1.30         
“Right Certificate” means a certificate evidencing a Right substantially in the form of Exhibit B
hereto.

 

1.31         
“Spread” has the meaning set forth in Section 11.1.3(i).

 

1.32         
“Stock Acquisition Date” means the earliest of the date of (i) the public announcement by the Company
or an Acquiring Person that an Acquiring Person has become such (which, for purposes of this definition, shall include a statement
on Schedule 13D filed pursuant to the Exchange Act), (ii) the public disclosure of facts by the Company or an Acquiring Person
that reveals the existence of an Acquiring Person or indicating that an Acquiring Person has become an Acquiring Person, and (iii)
the Board of Directors becoming aware of the existence of an Acquiring Person; provided, however, that notwithstanding anything
in this Agreement to the contrary, a Stock Acquisition Date shall not occur and shall not be deemed to have occurred as a result
of an Exempt Transaction.

 

1.33         
“Subsidiary” of any Person means any Person of which a majority of the voting power of the voting equity
securities or equity interest is owned, directly or indirectly, by such Person.

 

1.34         
“Substitution Period” has the meaning set forth in Section 11.1.3.

 

1.35         
“Summary of Rights” means the Summary of Rights to Purchase Preferred Shares substantially in the form
of Exhibit C hereto.

 

1.36         
“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 and the Treasury Regulations
promulgated thereunder, of the Company or any of its Subsidiaries.

 

1.37         
“Trading Day” means a day on which the principal national securities exchange on which a security is
listed or admitted to trading is open for the transaction of business or, if a security is not listed or admitted to trading on
any national securities exchange, a Business Day.

 

    -6-

     

    

 

1.38         
“Treasury Regulations” shall mean any final, temporary and proposed regulation of the Department of
Treasury under the Code and any successor regulation, including any amendments thereto.

 

1.39         
“Trust” has the meaning set forth in Section 24.6.

 

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 or 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 10 days’ prior written notice to the Rights Agent. The Rights Agent shall have no duty
to supervise, and shall in no event be liable for, the acts or omissions of any such co-rights agent. In the event the Company
appoints one or more co-rights agents, the respective duties of the Rights Agent and any co-rights Agent shall be as the Company
shall reasonably determine, provided that such duties and determination are consistent with the terms and provisions of this Agreement
and that contemporaneously with such appointment, if any, the Company shall notify the Rights Agent in writing thereof.

 

3.              Issue of Right Certificates.

 

3.1             
Until the earlier of (i) the Close of Business on the tenth day after the Stock Acquisition Date (or, in the event
the Board of Directors determines on or before such tenth day to effect an exchange in accordance with Section 24 and determines
in accordance with Section 24.6 that a later date is advisable, such later date) or (ii) the Close of Business on the tenth
Business Day (or such later date as may be determined by action of the Board of Directors prior to such time as any Person becomes
an Acquiring Person) after the date of the commencement by any Person (other than a Person who is not an Acquiring Person) of
a tender or exchange offer the consummation of which would result in any Person becoming an Acquiring Person (such date being
herein referred to as the “Distribution Date”); provided, however, that notwithstanding anything in
this Agreement to the contrary, a Distribution Date shall not occur and shall not be deemed to have occurred as a result of an
Exempt Transaction (provided, however, that if such 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), (x) the Rights
will be evidenced by the certificates (or other evidence of book-entry or other uncertificated ownership) for Common Shares registered
in the names of the holders thereof (which shall also be deemed to be Right Certificates) and not by separate Right Certificates,
and (y) the right to receive Right Certificates will be transferable only in connection with the transfer of Common Shares.
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, at the expense of the Company and upon receipt
of all relevant information, send) by first-class, postage-prepaid mail, to each record holder of Common Shares as of the Close
of Business on the Distribution Date, at the address of such holder shown on the records of the Company, a Rights Certificate,
substantially in the form of Exhibit B hereto, evidencing one Right for each Common Share so held, subject to adjustment
as provided herein; provided, however, that the Rights may instead be recorded in book-entry or other uncertificated
form, in which case such book-entries or other evidence of ownership shall be deemed to be Right Certificates for all purposes
of this Agreement; provided, 

 

    -7-

     

    

 

further,
that all procedures relating to actions to be taken or information to be provided with respect to such Rights recorded in book-entry
or other uncertificated forms, and all requirements with respect to the form of any Rights Certificate set forth in this Agreement,
may be modified as necessary or appropriate to reflect book-entry or other uncertificated ownership. As of the Distribution Date,
the Rights will be evidenced solely by such Right Certificates.

 

3.2             
As soon as practicable after the Record Date, the Company will make available a copy of the Summary of Rights to any holder
of Rights who may request it prior to the Final Expiration Date. The Company shall provide the Rights Agent with written notice
of the occurrence of the Final Expiration Date and the Rights Agent shall not be deemed to have knowledge of the occurrence of
the Final Expiration Date, unless and until it shall have received such written notice.

 

3.3             
Certificates for Common Shares which become outstanding (including reacquired Common Shares referred to in the last sentence
of this Section 3.3) after the Record Date but prior to the earliest of (i) the Close of Business on the Distribution Date,
(ii) the Redemption Date and (iii) the Final Expiration Date shall have impressed on, printed on, written on or otherwise
affixed to them a legend in substantially the following form:

 

This certificate also evidences
and entitles the holder hereof to certain Rights as set forth in a Rights Agreement between HRG Group, Inc. and American Stock
Transfer & Trust Company, LLC, as Rights Agent (or any successor rights agent), dated as of February 24, 2018, as it may from
time to time be amended or supplemented pursuant to its terms (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 HRG Group, Inc.
The Rights are not exercisable prior to the occurrence of certain events specified in the Rights Agreement. Under certain circumstances,
as set forth in the Rights Agreement, such Rights will be evidenced separately and will no longer be evidenced by this certificate.
HRG Group, 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, Rights that are or were acquired or Beneficially Owned by Acquiring Persons (as
defined in the Rights Agreement) may become null and void.

 

If the Company purchases or acquires
any Common Shares after the Record Date but prior to the Close of Business on the Distribution Date, any Rights associated with
such Common Shares shall be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights associated
with the Common Shares which are no longer outstanding.

 

4.                 
Form of Right Certificates. 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 B
hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon
as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement (but which do not affect
the rights, duties, liabilities or responsibilities of the Rights Agent), or as may be required to comply with any applicable
law or with any rule or regulation made pursuant thereto or with any rule or

 

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regulation
of any stock exchange on which the Rights may from time to time be listed, or to conform to usage. Subject to the other provisions
of this Agreement, the Right Certificates shall entitle the holders thereof to purchase such number of one one-thousandths of
a Preferred Share as shall be set forth therein at the Purchase Price, but the amount and type of securities purchasable upon
exercise and the Purchase Price shall be subject to adjustment as provided herein.

 

5.                 
Countersignature and Registration. Right Certificates shall be duly executed on behalf
of the Company by its Chief Executive Officer or its Chief Financial Officer or such other executive officer of the Company designated
by the Chief Financial Officer of the Company, either manually or by facsimile signature, and shall be attested by the Secretary
of the Company or such other executive officer of the Company designated by the Secretary of the Company, either manually or by
facsimile signature. Upon written request by the Company, the Right Certificates shall be countersigned, either manually or by
facsimile signature, by an authorized signatory of the Rights Agent, but it shall not be necessary for the same signatory to countersign
all of the Right Certificates hereunder. No Right Certificate shall be valid for any purpose unless so countersigned, either manually
or by facsimile. If 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
Person 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, is a proper officer
of the Company to sign such Right Certificate, even if at the date of the execution of this Agreement such Person was not such
an officer.

 

Following
the Distribution Date, and receipt by the Rights Agent of written notice to that effect and all other relevant information referred
to in this Agreement, the Rights Agent will keep or cause to be kept, at its office or offices designated for such purpose, books
for registration of the 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.

 

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

 

6.1          
Subject to the provisions of Section 14, at any time after the Close of Business on the Distribution Date, and prior
to the earlier of the Redemption Date and the Close of Business on the Final Expiration Date, any Right Certificate (other than
a Right Certificate representing Rights that have become void pursuant to Section 11.1.2 or that have been exchanged pursuant
to Section 24) may be transferred, split up, combined or exchanged for another Right Certificate, entitling the registered
holder to purchase a like number of Preferred Shares as the Right Certificate surrendered then entitled such holder to purchase.
Any registered holder desiring to transfer, split up, combine or exchange any Right Certificate shall make such request in writing
delivered to the Rights Agent, and shall surrender (together with any required form of assignment and certificate duly executed
and properly completed) the Right Certificate to be

 

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transferred,
split up, combined or exchanged at the office or offices of the Rights Agent designated for such purpose, accompanied by a signature
guarantee and such other documentation as the Rights Agent may reasonably request. 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 shall have properly completed and duly executed the certificate contained in the form of assignment on the reverse side
of such Right Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) thereof, as the Company or the Rights Agent shall reasonably request. Thereupon, the Rights Agent shall countersign
and deliver to the Person entitled thereto a Right Certificate or Right Certificates, as the case may be, as so requested. The
Company or the Rights Agent may require payment from the holders of the Rights Certificates of a sum sufficient for 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.

 

6.2          
Subject to the provisions of Section 14, at any time after the Close of Business on the Distribution Date, and prior
to the earlier of the Redemption Date or the Close of Business on the Final Expiration Date, 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 the identity of the Beneficial Owner (or former Beneficial Owner) thereof (including a signature guarantee and such other
documentation as the Rights Agent may reasonably request) and, in case of loss, theft or destruction, of indemnity or security
satisfactory to them, and, at the Company’s or the Rights Agent’s request, reimbursement to the Company and the Rights
Agent of all reasonable expenses incidental thereto, and, in the case of mutilation, upon surrender to the Rights Agent and cancellation
of the Right Certificate, the Company will make 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.

 

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

 

7.1             
The registered holder of any Right Certificate (other than a holder whose Rights have become void pursuant to Section 11.1.2
or have been exchanged pursuant to Section 24) may exercise the Rights evidenced thereby in whole or in part at any time
after the Distribution Date upon surrender of the Right Certificate, with the appropriate form of election to purchase on the
reverse side thereof properly completed and duly executed, to the Rights Agent at the offices of the Rights Agent designated for
such purpose, accompanied by a signature guarantee and such other documentation as the Rights Agent may reasonably request, together
with payment of the Purchase Price for each one one-thousandth of a Preferred Share represented by a Right that is exercised and
an amount equal to any applicable transfer tax or charges required to be paid pursuant to Section 9, prior to the earliest
of (i) the Final Expiration Date, (ii) the time at which the Rights are redeemed pursuant to Section 23, and (iii) the
time at which the Rights are exchanged pursuant to Section 24.

 

7.2             
The purchase price to be paid upon the exercise of each Right to purchase one one-thousandth of a Preferred Share represented
by a Right shall initially be $71.55 (the

 

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“Purchase
Price”) and shall be payable in lawful money of the United States of America in accordance with Section 7.3. Each
Right shall initially entitle the holder to acquire one one-thousandth of a Preferred Share upon exercise of the Right. The Purchase
Price and the number of Preferred Shares or other securities for which a Right is exercisable shall be subject to adjustment from
time to time as provided in Sections 11 and 13.

 

7.3             
Upon receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase and certificate
properly completed and duly executed, accompanied by payment of the Purchase Price for the number of Rights exercised 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
by cash, certified check, cashier’s check or money order payable to the order of the Company, the Rights Agent shall thereupon
promptly (i)(a) requisition from any transfer agent of the Preferred Shares (or from the Company if there shall be no such
transfer agent, or make available, if the Rights Agent is the transfer agent) certificates for the number of Preferred Shares
to be purchased, and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests, or (b) requisition
from any depositary agent for the Preferred Shares depositary receipts representing such number of Preferred Shares 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), and the Company hereby directs any such depositary agent to comply with such request; (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
Preferred Shares in accordance with Section 14; (iii) after receipt of such certificates or depositary receipts, cause
the same to be delivered to or upon the order of the registered holder of such Right Certificate, registered in such name or names
as may be designated in writing 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. In the event that the Company is obligated
to issue other securities of the Company, pay cash and/or distribute other property pursuant to this Agreement, 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 necessary to comply with this Agreement.

 

7.4             
If the registered holder of any Right Certificate shall 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 and delivered
to the registered holder of such Right Certificate or to such holder’s duly authorized assigns, subject to the provisions
of Section 14.

 

7.5             
Notwithstanding anything in this Agreement or the Rights Certificate to the contrary, neither the Rights Agent nor the
Company shall be obligated to undertake any action with respect to a registered holder of Rights or other securities of the Company
upon the occurrence of any purported transfer or exercise as set forth in this Section 7 unless such registered holder shall
have (i) properly completed and duly executed the certificate contained in the appropriate form of election to purchase set
forth on the reverse side of the Right Certificate surrendered for such exercise and (ii) provided such additional evidence
of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company and the
Rights Agent shall reasonably request.

 

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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 (other than the Rights Agent), be delivered to the Rights Agent for cancellation or in canceled form, or, if surrendered
to the Rights Agent, shall be canceled 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. At the expense of the Company, the Rights Agent shall deliver all canceled Right Certificates which have
been canceled by the Rights Agent to the Company, or shall, at the written request of the Company, destroy such canceled Right
Certificates, and in such case shall deliver a certificate of destruction thereof to the Company.

 

9.             Status
and Availability of Preferred Shares.

 

9.1             
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 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.

 

9.2             
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 Preferred Shares (subject to payment
of the Purchase Price), be duly and validly authorized and issued and fully paid and non-assessable shares.

 

9.3             
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 or depositary
receipts for the Preferred Shares in a name other than that of, the registered holder of the Right Certificate evidencing Rights
surrendered for exercise, and the Company and the Rights Agent shall not be required to issue or deliver any certificates or depositary
receipts for Preferred Shares upon the exercise of any Rights until any such tax or charge shall have been paid (any such tax
or charge being payable by the holder of such Right Certificate at the time of surrender) or until it has been established to
the Company’s and the Rights Agent’s reasonable satisfaction that no such tax is due.

 

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. Prior to

 

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the exercise of the Rights
evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a holder of Preferred Shares for which
the Rights shall be exercisable, including the right to vote, to receive dividends or other distributions, or to exercise any
preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein.

 

11.           Adjustment of Purchase Price, Number of Shares or Number of Rights.

 

11.1         
General.

 

11.1.1   
In the event the Company shall at any time after the date of this Agreement (i) declare a dividend on the Preferred
Shares payable in Preferred Shares, (ii) subdivide the outstanding Preferred Shares, (iii) combine the outstanding Preferred
Shares into a smaller number of Preferred Shares or (iv) 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 11.1, 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, the 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.

 

11.1.2   
Subject to the second paragraph of this Section 11.1.2 and to Section 24, from and after the Stock Acquisition
Date, each holder of a Right shall have a right to receive, upon exercise of each Right, in accordance with the terms of this
Agreement and in lieu of Preferred Shares, such number of Common Shares of the Company as shall equal the result obtained by dividing
the then current Purchase Price by 50% of the then Current Per Share Market Price of the Company’s Common Shares (determined
pursuant to Section 11.4) on the Stock Acquisition Date.

 

From and
after the Stock Acquisition Date, any Rights that are or were acquired or Beneficially Owned by (1) an Acquiring Person (or any
Associate or Affiliate of such Acquiring Person), (2) a transferee of any Acquiring Person (or of any such Associate or Affiliate)
who becomes such a transferee after the Acquiring Person becomes an Acquiring Person or (3) a transferee of an Acquiring Person
(or of any such Associate or Affiliate) who becomes such a transferee prior to or concurrently with the Acquiring Person becoming
an Acquiring Person and who receives such Rights (I) with actual knowledge that the transferor is or was an Acquiring Person or
(II) pursuant to either (x) a transfer (whether or not for consideration) from the Acquiring Person (or any such Associate or
Affiliate) to holders of equity interests in such Acquiring Person (or any such Associate or Affiliate) or to any Person with
whom the Acquiring Person (or such Associate or Affiliate) has any continuing agreement, arrangement, understanding or relationship
(whether or not in writing) regarding the transferred Rights or (y) a

 

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transfer
which the Board of Directors has determined is part of a plan, arrangement or understanding (whether or not in writing) which
has as a primary purpose or effect of the avoidance of this Section 11.1.2, (each such Person described in (1)-(3) above,
an “Excluded Person”) shall, in each such case, be null and void, and any holder of such Rights (whether or
not such holder is an Acquiring Person or an Associate or Affiliate of an Acquiring Person) shall thereafter have no right to
exercise such Rights under any provision of this Agreement. No Right Certificates shall be issued pursuant to Sections 3, 6, 7.4
or 11 or otherwise hereof that represents Rights that are or have become null and void pursuant to the provisions of this paragraph
and any Right Certificate delivered to the Rights Agent that represents Rights that are or have become null and void pursuant
to the provisions of this paragraph shall, upon receipt of written notice directing it to do so, be canceled by the Rights Agent.

 

Notwithstanding
any other provision of this Agreement, in no event shall Rights held by the Company, CF Turul LLC, Leucadia National Corporation
or any of their respective Subsidiaries become null or void under this Section 11.1.2 or any other provision of this Agreement.

 

11.1.3   
If there are not sufficient authorized but unissued Common Shares to permit the exercise in full of the Rights in accordance
with Section 11.1.2 or the exchange of the Rights in accordance with Section 24, or should the Board of Directors so elect,
the Company may with respect to such deficiency, (i) determine the excess (the “Spread”) of (A) the
value of the Common Shares issuable upon the exercise of a Right as provided in Section 11.1.2 (the “Current Value”)
over (B) the Purchase Price, and (ii) with respect to each Right, make adequate provision to substitute for such Common
Shares, upon payment of the applicable Purchase Price, any one or more of the following having an aggregate value determined by
the Board of Directors to be equal to the Current Value: (A) cash, (B) a reduction in the Purchase Price, (C) Common
Shares or other equity securities of the Company (including shares, or units of shares, of preferred stock which the Board of
Directors has determined to have the same value as Common Shares (“Common Stock Equivalents”)), (D) debt
securities of the Company or (E) other assets, property or instruments. The Company shall provide the Rights Agent with prompt
reasonably detailed written notice of any final determination under the previous sentence.

 

If the Board
of Directors shall determine in good faith that additional Common Shares should be authorized for issuance upon exercise in full
of the Rights, the Company may suspend the exercisability of the Rights in order to seek any authorization of additional
shares, decide the appropriate form of distribution to be made and determine the value thereof. If the exercisability of the Rights
is suspended pursuant to this Section 11.1.3, the Company shall make a public announcement, and shall promptly deliver to
the Rights Agent a statement, stating that the exercisability of the Rights has been temporarily suspended. When the suspension
is no longer in effect, the Company shall make another public announcement, and promptly deliver to the Rights Agent a statement,
so stating. For purposes of this Section 11.1.3, the value of the Common Shares shall be the Current Per Share Market Price
(as determined pursuant to Section 11.4.1) of the Common Shares as of the Stock Acquisition Date, and the value of any Common
Stock Equivalent shall be deemed to have the same value as the Common Shares on such date.

 

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11.2         
If the Company fixes a record date for the issuance of rights, options or warrants to all holders of Preferred Shares entitling
them (for a period expiring within forty-five 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 or Equivalent 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 11.4.2) on such record date,
the Purchase Price to be in effect after such record date shall be adjusted by multiplying the Purchase Price in effect immediately
prior to such record date by a fraction, (i) the numerator of which shall be (A) the number of Preferred Shares outstanding
on such record date plus (B) the number of Preferred Shares which the aggregate offering price of the total number of Preferred
Shares or Equivalent Preferred Shares to be offered (or the aggregate initial conversion price of the convertible securities to
be offered) would purchase at such Current Per Share Market Price and (ii) the denominator of which shall be (A) the number of
Preferred Shares outstanding on such record date plus (B) the number of additional Preferred Shares or Equivalent Preferred Shares
to be offered for subscription or purchase (or into which the convertible securities 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 Preferred Shares issuable upon exercise of one Right. If 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 of Directors, whose determination shall be described in a statement filed with the Rights Agent. Preferred
Shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation.
Such adjustment shall be made successively whenever such a record date is fixed. If such rights, options or warrants are not so
issued, the Purchase Price shall be adjusted to be the Purchase Price that would then be in effect if such record date had not
been fixed.

 

11.3         
If the Company fixes a record date for the making of a distribution to all holders of the Preferred Shares (including any
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 11.2), 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,
(i) the numerator of which shall be the then Current Per Share Market Price of the Preferred Shares on such record date, less
the fair market value (as determined in good faith by the Board of Directors, whose determination shall be described in a statement
filed with the Rights Agent) of the portion of the assets or evidences of indebtedness to be distributed or of such subscription
rights or warrants applicable to one Preferred Share and (ii) the denominator of which shall be the then Current Per Share Market
Price of the Preferred Shares; 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 Preferred Shares to be issued upon exercise of one Right. Such adjustments
shall be made successively whenever such a record date is fixed. If such distribution is not so made, the Purchase Price shall
again be adjusted to be the Purchase Price that would then be in effect if such record date had not been fixed.

 

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11.4         
Current Per Share Market Price.

 

11.4.1   
For the purpose of any computation hereunder, the “Current Per Share Market Price” of any security on
any date shall be deemed to be the average of the daily closing prices per share of such security for the thirty consecutive Trading
Days immediately prior to such date; provided, however, that if the Current Per Share Market Price of the security
is determined during a period (i) following the announcement by the issuer of such security of (A) a dividend or distribution
on such security payable in shares of such security or other securities convertible into such shares, or (B) any subdivision,
combination or reclassification of such security, and (ii) prior to the expiration of thirty 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 day shall be the last sale price or, if no such sale takes place on such
day, the average of the closing bid and asked prices, in either case as reported by the NYSE, or, if on any such date the security
is not listed on the NYSE, 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 of Directors. If on any such date no such market maker is making a market in the
security, the fair value of the security on such date as determined in good faith by the Board of Directors shall be used.

 

11.4.2   
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 11.4.1. If the Preferred Shares are not publicly
traded, 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 11.4.1 (appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after the date hereof) multiplied by one thousand. If neither
the Common Shares nor the Preferred Shares are publicly held or so listed or traded, “Current Per Share Market Price”
means the fair value per share as determined in good faith by the Board of Directors, whose determination shall be described in
a statement filed with the Rights Agent.

 

11.5         
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 which by reason of this Section 11.5
are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under
this Section 11 shall be made to the nearest cent or to the nearest one ten-millionth of a Preferred Share or one ten-thousandth
of any other share or security as the case may be. Notwithstanding the first sentence of this Section 11.5, any adjustment
required by this Section 11 shall be made no later than three years from the date of the transaction which requires such
adjustment.

 

11.6         
If, as a result of an adjustment made pursuant to Section 11.1, the holder of any Right thereafter exercised shall
become entitled to receive any shares of capital stock of the Company other than Preferred Shares, the number of such other shares
so receivable upon exercise of any Right shall thereafter 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

 

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contained
in Sections 11.1 through 11.3, inclusive, and the provisions of Sections 7, 9, 10 and 13 with respect to the Preferred
Shares shall apply on like terms to any such other shares.

 

11.7         
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.

 

11.8         
Unless the Company exercises its election as provided in Section 11.9, upon each adjustment of the Purchase Price
as a result of the calculations made in Sections 11.2 and 11.3, 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 one one-thousandth
of a Preferred Share (calculated to the nearest one ten-millionth of a Preferred Share) obtained by (i) multiplying the number
of one one-thousandth of a Preferred Share covered by a Right immediately prior to this adjustment by the Purchase Price
in effect immediately prior to such adjustment of the Purchase Price and (ii) dividing the product by the Purchase Price
in effect immediately after such adjustment of the Purchase Price.

 

11.9         
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 Preferred Shares 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 Preferred Shares 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 hundred-thousandth) obtained by dividing the Purchase Price in effect immediately
prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price.
The Company shall make a public announcement (with prompt written notice thereof to the Rights Agent) of its election to adjust
the number of Rights, indicating the record date for the adjustment and, if known at the time, the amount of the adjustment to
be made. The record date may be the date on which the Purchase Price is adjusted or any day thereafter but, if the Right Certificates
have been distributed, shall be at least ten days after the date of the public announcement. If Right Certificates have been
distributed, upon each adjustment of the number of Rights pursuant to this Section 11.9, 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, 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
to be so 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.

 

11.10     
Irrespective of any adjustment or change in the Purchase Price or the number of Preferred Shares issuable upon the exercise
of the Rights, the Right Certificates theretofore and

 

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thereafter
issued may continue to express the Purchase Price and the number of Preferred Shares which were expressed in the initial Right
Certificates issued hereunder.

 

11.11     
Before taking any action that would cause an adjustment reducing the Purchase Price below the then par value of the Preferred
Shares issuable upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion of its counsel,
be necessary in order that the Company may validly and legally issue fully paid and non-assessable Preferred Shares at such adjusted
Purchase Price.

 

11.12     
If this Section 11 requires that an adjustment in the Purchase Price be made effective as of a record date for a specified
event, the Company may defer, until the occurrence of such event, issuing to the holder of any Right exercised after such record
date Preferred Shares and other capital stock or securities of the Company, if any, issuable upon such exercise over and above
the Preferred Shares 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 adjustment.

 

11.13     
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
it in its sole discretion shall determine to be advisable in order that any (i) combination or subdivision of the Preferred
Shares, (ii) issuance wholly for cash of any Preferred Shares at less than the Current Per Share Market Price, (iii) issuance
wholly for cash of Preferred Shares or securities which by their terms are convertible into or exchangeable for Preferred Shares,
(iv) dividends on Preferred Shares payable in Preferred Shares, or (v) issuance of any rights, options or warrants referred
to in Section 11.2 made by the Company after the date of this Agreement to holders of its Preferred Shares shall not be taxable
to such stockholders.

 

11.14     
If, at any time after the date of this Agreement and prior to the Distribution Date, the Company (i) declares or pays
any dividend on the Common Shares payable in Common Shares or (ii) effects a subdivision, combination or consolidation of
the Common Shares (by reclassification or otherwise other than by payment of dividends in Common Shares) into a greater or lesser
number of Common Shares, then in any such case (a) the number of one one-thousandths of a Preferred Share purchasable after
such event upon exercise of each Right shall be determined by multiplying the number of one one-thousandths of a Preferred Share
so purchasable immediately prior to such event by a fraction, the numerator of which is the number of Common Shares outstanding
immediately before such event and the denominator of which is the number of Common Shares outstanding immediately after such event,
and (b) each Common Share outstanding immediately after such event shall have issued with respect to it that number of Rights
which each Common Share outstanding immediately prior to such event had issued with respect to it. The adjustments provided for
in this Section 11.14 shall be made successively whenever such a dividend is declared or paid or such a subdivision, combination
or consolidation is affected.

 

    -18-

     

    

 

12.          
Certificate of Adjustment. Whenever an adjustment is made as provided in Sections 11
and 13, the Company shall promptly (i) prepare a certificate setting forth such adjustment and a reasonably detailed
statement of the facts, computation, methodology and accounting for such adjustment, (ii) promptly file with the Rights Agent
and with each transfer agent for the Common Shares or the Preferred Shares a copy of such certificate, and (iii) if such
adjustment occurs following a Distribution Date, mail a brief summary thereof to each holder of a Right Certificate in accordance
with Section 25. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement
therein contained and shall not be obligated or responsible for calculating any adjustment, nor shall the Rights Agent be deemed
to have knowledge of such an adjustment or any such event, unless and until it shall have received such certificate.

 

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

 

13.1         
If, at any time after a Stock Acquisition Date, (i) the Company consolidates with, or merges with and into, any other
Person; (ii) any Person consolidates with the Company, or merges with and into the Company, and the Company is the continuing
or surviving corporation of such merger and, in connection with such merger, all or part of the Common Shares are or will be changed
into or exchanged for stock or other securities of any other Person (or the Company) or cash or any other property; or (iii) the
Company sells or otherwise transfers (or one or more of its Subsidiaries sell or otherwise transfer), in one or more transactions,
assets or Earning Power aggregating 50% or more of the assets or Earning Power of the Company and its Subsidiaries (taken as a
whole) to any other Person other than the Company or one or more of its wholly owned Subsidiaries, then proper provision shall
be made so that (A) each holder of a Right (except as otherwise provided herein) shall have the right to receive, upon the
exercise of each Right in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of Common Shares
of such other Person (including the Company as successor thereto or as the surviving corporation) equal to the result obtained
by dividing the then current Purchase Price by 50% of the then Current Per Share Market Price of the Common Shares of such other
Person (determined pursuant to Section 11.4 hereof) on the date of consummation of such consolidation, merger, sale or transfer;
(B) the issuer of such Common Shares shall thereafter be liable for, and shall assume, by virtue of such consolidation, merger,
sale or transfer, all the obligations and duties of the Company pursuant to this Agreement; (C) the term “Company”
shall thereafter be deemed to refer to such issuer; and (D) such issuer shall take steps (including, but not limited to,
the reservation of a sufficient number of shares of its common stock in accordance with Section 9) in connection with such
consummation as may be necessary to ensure that the provisions hereof shall thereafter be applicable in relation to the common
stock thereafter deliverable upon the exercise of the Rights.

 

13.2         
The Company shall not enter into any transaction of the kind referred to in this Section 13 if, at the time of such
transaction, there are any rights, warrants, instruments or securities outstanding or any agreements or arrangements which, as
a result of the consummation of such transaction, would eliminate or substantially diminish the benefits intended to be afforded
by the Rights. The provisions of this Section 13 shall apply to successive mergers or consolidations or sales or other transfers.
Notwithstanding anything in this Agreement to the contrary, this Section 13 shall not apply to any Exempt Transaction.

 

    -19-

     

    

 

13.3         
For purposes of this Agreement, the “Earning Power” of the Company and its Subsidiaries shall be determined
in good faith by the Company’s Board of Directors on the basis of the operating earnings of each business operated by the
Company and its Subsidiaries during the three fiscal years preceding the date of such determination (or, in the case of any business
not operated by the Company or any Subsidiary during three full fiscal years preceding such date, during the period such business
was operated by the Company or any Subsidiary).

 

14.           Fractional Rights and Fractional Shares.

 

14.1         
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, the Company may instead pay to the registered holders of the Right Certificates with
regard to which such fractional Rights would otherwise be issuable an amount in cash equal to the same fraction of the current
market value of a whole Right. For the purposes of this Section 14.1, the current market value of a whole Right shall be
the closing price of the Rights (as determined pursuant to the second sentence of Section 11.4.1) for the Trading Day immediately
prior to the date on which such fractional Rights would have been otherwise issuable.

 

14.2         
The Company shall not be required to issue fractions of Preferred Shares (other than fractions which are integral multiples
of one one-thousandth of a Preferred Share) upon exercise of the Rights or to distribute certificates which evidence fractional
Preferred Shares (other than fractions which are integral multiples of one one-thousandth of a Preferred Share). Fractions of
Preferred Shares in integral multiples of one one-thousandth of a Preferred Share may, at the election of the Company, be evidenced
by depositary receipts, pursuant to an agreement between the Company and a depositary selected by the Company; 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-thousandth of a Preferred Share, the Company shall pay to each registered
holder 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 as the fraction of one Preferred Share that such holder would otherwise receive
upon the exercise of the aggregate number of rights exercised by such holder. For the purposes of this Section 14.2, the
current market value of a Preferred Share shall be the closing price of a Preferred Share (pursuant to Section 11.4.1) for
the Trading Day immediately prior to the date of such exercise.

 

14.3         
The closing price for any day shall be the last quoted price or, if not so quoted, the average of the high bid and low
asked prices as reported by the NYSE, or if on any such date the Rights or Preferred Shares, as applicable, are not listed on
the NYSE, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights
or Preferred Shares, as applicable, selected by the Board of Directors. If on any such date no such market maker is making a market
in the Rights or Preferred Shares, as applicable, the fair value of the Rights or Preferred Shares, as applicable, on such date
as determined in good faith by the Board of Directors shall be used.

 

    -20-

     

    

 

14.4         
The holder of a Right by the acceptance of the Right expressly waives any right to receive fractional Rights or fractional
shares upon exercise of a Right (except as provided in this Section 14).

 

14.5         
Whenever a payment for fractional Rights or fractional shares is to be made by the Rights Agent under any section of this
Agreement, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail
the facts related to such payments and the prices and formulas utilized in calculating such payments, and (ii) provide sufficient
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.

 

15.            Rights
of Action. All rights of action in respect of this Agreement, excepting the rights of action
given to the Rights Agent under Section 18, are vested in the respective registered holders of the Right Certificates. Any
registered holder of any Right Certificate may, without the consent of the Rights Agent or of the holder of any other Right Certificate,
on such holder’s own behalf and for such holder’s own benefit, enforce, and may institute and maintain any suit, action
or proceeding against the Company to enforce, or otherwise act in respect of, such holder’s right to exercise the Rights
evidenced by such Right Certificate in the manner provided in such Right Certificate and in this 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 by the Company and will be entitled to specific performance
of the obligations under, and injunctive relief against actual or threatened violations of the obligations hereunder of the Company.

 

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:

 

16.1         
prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of the Common Shares;

 

16.2         
after the Distribution Date, the Right Certificates are transferable only on the registry books maintained by 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 with the appropriate form of certification, properly completed and duly executed, accompanied
by a signature guarantee and such other documentation as the Rights Agent may reasonably request;

 

16.3         
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 Shares certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby
(notwithstanding any notations of ownership or writing on the Right Certificates or the associated Common Shares certificate made
by anyone other than the Company or the Rights

 

    -21-

     

    

 

Agent)
for all purposes whatsoever, and neither the Company nor the Rights Agent shall be affected by any notice to the contrary; and

 

16.4         
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 the inability of the Company or the Rights Agent to perform any of its
or their obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree, judgment
or ruling issued by a court of 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.

 

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

 

18.            Concerning the Rights Agent. The Company agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder accordance with a fee schedule to be mutually agreed upon, and, from time
to time, on demand of the Rights Agent, to reimburse the Rights Agent for all of its reasonable expenses and counsel fees and
other disbursements incurred in the preparation, delivery, negotiation, administration, execution and amendment, of this Agreement
and the exercise and performance of its duties hereunder. The Company also covenants and agrees to indemnify the Rights Agent
for, and to hold it harmless against, any and all loss, liability, damage, judgment, fine, penalty, claim, demand, settlement,
cost or expense (including the reasonable fees and expenses of legal counsel) that may be paid, incurred or suffered by it, or
which it may become subject, without gross negligence, bad faith or willful misconduct on the part of the Rights Agent (which
gross negligence, bad faith, or willful misconduct must be determined by a final, non-appealable judgment of a court of competent
jurisdiction), for any action taken, suffered or omitted to be taken by the Rights Agent in connection with the execution, acceptance
and, administration of, exercise and performance of its duties under this Agreement, including the costs and expenses of defending
against any claim or liability arising therefrom or in connection therewith, directly or indirectly. The provisions under this
Section 18 and Section 20 below shall survive the expiration of the Rights and the termination of this Agreement and the resignation,
replacement or removal of the Rights Agent. The reasonable costs and expenses incurred in enforcing this right of indemnification
shall be paid by the Company.

 

The Rights
Agent shall be fully authorized and protected and shall incur no liability for or in respect of any action taken, suffered or
omitted by it in connection with its acceptance and

 

    -22-

     

    

 

administration
of this Agreement and the exercise and performance of its duties hereunder, in each case in reliance upon any Right Certificate
or certificate for Preferred Shares or for other securities of the Company, instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, instruction, 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. 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.

 

Notwithstanding
anything in this Agreement to the contrary, in no event will the Rights Agent be liable for special, punitive, indirect, incidental
or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Rights Agent has
been advised of the likelihood of such loss or damage and regardless of the form of action.

 

19.            Merger
or Consolidation or Change of Name of Rights Agent. Any Person into which the Rights Agent
or any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting from any merger or consolidation
to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the stock transfer or other
shareholder services business of the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under
this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided
that such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section 21. The
purchase of all or substantially all of the Rights Agent’s assets employed in the performance of transfer agent activities
shall be deemed a merger or consolidation for purposes of this Section 19. If, 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.
If, 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. In all
such cases such Right Certificates shall have the full force provided in the Right Certificates and in this Agreement.

 

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

 

20.            Rights and Duties of Rights Agent. The Rights Agent undertakes to perform only the
duties and obligations expressly set forth in this Agreement and no implied duties or obligations shall be read into this Agreement
against the Rights Agent. The Rights Agent shall perform its duties and obligations hereunder 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:

 

    -23-

     

    

 

20.1         
The Rights Agent may consult with legal counsel (who may be legal counsel for the Company or an employee or legal counsel
of the Rights Agent), and the advice or opinion of such counsel shall be full and complete authorization and protection to the
Rights Agent and the Rights Agent shall incur no liability for or in respect of as to any action taken or omitted by it in the
absence of bad faith and in accordance with such advice or opinion.

 

20.2         
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, suffering or omitting to take any action hereunder,
such fact or matter (unless other evidence in respect thereof is specifically prescribed herein) may be deemed to be conclusively
proved and established by a certificate signed by a person reasonably believed by the Rights Agent to be any one of the Chief
Financial Officer or the Secretary of the Company, or any person authorized by the Chief Financial Officer or the Secretary of
the Company to sign such certificate, and delivered to the Rights Agent, and such certificate shall be full authorization to the
Rights Agent and the Rights Agent shall incur no liability for or in respect of any action taken, suffered or omitted to be taken
by it in the absence of bad faith under the provisions of this Agreement in reliance upon such certificate. The Rights Agent shall
have no duty to act without such a certificate as set forth in this Section 20.2.

 

20.3         
The Rights Agent shall be liable to the Company and any other Person hereunder only for its own gross negligence, bad faith
or willful misconduct (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable judgment
of a court of competent jurisdiction). Notwithstanding anything in this Agreement to the contrary, 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 during the twelve
(12) months immediately preceding the event for which recovery from the Rights Agent is being sought.

 

20.4         
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 as to its countersignature thereof) or be required to verify the same. All such statements
and recitals are and shall be deemed to have been made by the Company only.

 

20.5         
The Rights Agent shall not have any liability for or be under any responsibility in respect of the validity of this Agreement
or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the legality or validity
or execution of any Right Certificate (except its countersignature thereof); nor shall it be responsible for any determination
by the Board of Directors with respect to the Rights or breach by the Company of any covenant or failure by the Company to satisfy
any condition contained in this Agreement or in any Right Certificate; nor shall it be liable or responsible for any modification
by or order of any court, tribunal or governmental authority in connection with the foregoing, any change in the exercisability
of the Rights or any adjustment required under the provisions of Sections 11 or 13 or for the manner, method or amount
of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect
to the exercise of Rights evidenced by Right Certificates after receipt of a certificate furnished pursuant to Section 12
describing such adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization
or reservation of any shares of Preferred Shares

 

    -24-

     

    

 

to
be issued pursuant to this Agreement or any Right Certificate or as to whether any Preferred Shares will, when so issued, be validly
authorized and issued, fully paid, and non-assessable.

 

20.6         
The Company agrees that it will perform, execute, acknowledge and deliver, or cause to be performed, executed, acknowledged
and delivered, all such further and other acts, instruments and assurances as may reasonably be required or reasonably requested
by the Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement.

 

20.7         
The Rights Agent is hereby authorized and directed to accept written instructions with respect to the performance of its
duties hereunder and certificates delivered pursuant to any provision hereof from any person reasonably believed by the Rights
Agent to be from any one of the Chief Executive Officer, Chief Financial Officer or Secretary of the Company, and to apply to
such officers for advice or instructions in connection with its duties under this Agreement, and such advice or instructions shall
provide full authorization and protection to the Rights Agent, and the Rights Agent shall not be liable for any action taken,
suffered or omitted to be taken by it in accordance with the written advice or instructions of any such officer or for any delay
in acting while waiting for these instructions. The Rights Agent shall be fully authorized and protected in relying upon the most
recent advice or instructions received by any such officer. Any application by the Rights Agent for written instructions from
the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights
Agent with respect to its duties or obligations under this Agreement.

 

20.8         
The Rights Agent and any affiliate, stockholder, director, officer, agent, representative or employee of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the Company, or become pecuniarily interested in any transaction
in which the Company may be interested, or contract with or lend money to the Company, or otherwise act as fully and freely as
though it were not the Rights Agent under this Agreement, in each case in compliance with applicable laws. Nothing herein shall
preclude the Rights Agent and such other Persons from acting in any other capacity for the Company or for any other legal entity.

 

20.9         
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. The Rights Agent shall not be answerable or accountable for any act, omission,
default, neglect, or misconduct of any such attorneys or agents or for any loss to the Company or any other Person resulting from
any such act, omission, default, neglect or misconduct, absent gross negligence or bad faith in the selection and continued employment
of such attorneys or agents thereof (which gross negligence or bad faith must be determined by a final, non-appealable judgment
of a court of competent jurisdiction).

 

20.10     
No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or in the exercise of its rights if the Rights Agent believes that
repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it.

 

20.11     
The Rights Agent shall not be required to take notice or be deemed to have notice of any fact, event or determination (including
any dates or events defined in this Agreement or

 

    -25-

     

    

 

the
designation of any Person as an Acquiring Person, Affiliate or Associate) under this Agreement unless and until the Rights Agent
shall be specifically notified in writing by the Company of such fact, event or determination, and all notices or other instruments
required by this Agreement to be delivered to the Rights Agent must, in order to be effective, be received by the Rights Agent
as specified in Section 26 hereof, and in the absence of such notice so delivered, the Rights Agent may conclusively assume no
such event or condition exists.

 

20.12     
The Rights Agent shall have no responsibility to the Company or any holders of the Rights Certificates for interest or
earnings on any moneys held by the Rights Agent pursuant to this Agreement.

 

21.            Change
of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged
from its duties under this Agreement upon thirty days’ notice in writing mailed to the Company and, in the event that the
Rights Agent or one of its Affiliates is not also the transfer agent for the Company, to each transfer agent of the Common Shares
and the Preferred Shares pursuant to Section 26. The Company may remove the Rights Agent or any successor Rights Agent upon thirty
days’ notice in writing, mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer
agent of the Common Shares and the Preferred Shares by registered or certified mail, and, after the Distribution Date, to the
holders of the Right Certificates by first class 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
as Rights Agent under this Agreement as of the effective date of such termination, and the Company shall be responsible for sending
any required notice. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company
shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of thirty days
after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning
or incapacitated Rights Agent, then the incumbent Rights Agent or registered holder of any Right Certificate may apply to any
court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the
Company or by such a court, shall be (a) a Person (other than a natural person) organized and doing business under the laws of
the United States or of any state of the United States, in good standing, which is authorized under such laws to exercise stock
transfer powers, is subject to supervision or examination by federal or state authority, and has, along with its Affiliates, at
the time of its appointment as Rights Agent a combined capital and surplus of at least $50 million or (b) an Affiliate of
a Person described in clause (a) of this sentence. After appointment, the successor Rights Agent shall be vested with the same
powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed, and
the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held by it hereunder,
and shall execute and deliver any further assurance, conveyance, act or deed necessary for the purpose but such predecessor Rights
Agent shall not be required to make any additional expenditure or assume any additional liability in connection with the foregoing,
and shall thereafter be discharged from all duties and obligations hereunder. 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 the Preferred Shares, and, after the Distribution Date, mail a notice in writing to the registered holders of the Right Certificates.
Failure to give any notice provided for in this Section 21,

 

    -26-

     

    

 

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.

 

22.            Issuance
of New Right Certificates. Notwithstanding any of the provisions of this Agreement or of
the Right Certificates to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such
form as may be approved by its Board of Directors 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. In addition, in connection with the issuance or sale of Common Shares following the Distribution Date and prior
to the earlier of the Redemption Date and the Close of Business on the Final Expiration Date, the Company may, with respect to
Common Shares so issued or sold (i) pursuant to the exercise of stock options; (ii) under any employment plan or arrangement;
(iii) upon the exercise, conversion or exchange of securities, notes or debentures issued by the Company; or (iv) pursuant
to a contractual obligation of the Company, in each case existing prior to the Distribution Date, issue Right Certificates representing
the appropriate number of Rights in connection with such issuance or sale.

 

23.            Redemption.

 

23.1         
The Board of Directors 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, of the then outstanding Rights at a redemption price of $0.00001 per Right, appropriately adjusted
to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (the “Redemption Price”).
The redemption of the Rights by the Board of Directors may be made effective at such time, on such basis and subject to such conditions
as the Board of Directors in its sole discretion may establish.

 

23.2         
Immediately upon the time of the effectiveness of the redemption of the Rights or such earlier time as may be determined
by the Board of Directors in the action ordering such redemption (although not earlier than the time of such action) (the “Redemption
Date”), and without any further action and without any notice, the right to exercise the Rights shall terminate and
the only right thereafter of the holders of Rights 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 Business Days after action
of the Board of Directors ordering the redemption of the Rights, the Company shall mail, or cause the Rights Agent to mail (at
the expense of the Company), a notice of redemption to 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 mailed in the manner herein provided shall be deemed given, whether or not the holder receives
the notice. If the payment of the Redemption Price is not included with such notice, each such notice shall 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 that specifically set forth in this Section 23
or in Section 24, other than in connection with the purchase of Common Shares prior to the Distribution Date.

 

    -27-

     

    

 

24.            Exchange.

 

24.1         
The Board of Directors may, at its option, at any time after a Stock Acquisition Date, mandatorily exchange all or part
of the then outstanding and exercisable Rights (which excludes Rights that have become void pursuant to Section 11.1.2) for
Common Shares at an exchange ratio of one Common Share per one one-thousandths of a Preferred Share represented by a Right, appropriately
adjusted to reflect any stock split, stock dividend or similar transaction occurring after the date hereof (the “Exchange
Ratio”). From and after the occurrence of an event specified in Section 13.1, any rights that theretofore have
not been exchanged pursuant to this Section 24 shall thereafter be exercisable only in accordance with Section 13 and
may not be exchanged pursuant to this Section 24. The exchange of the Rights by the Board of Directors may be made effective
at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish.

 

24.2         
Immediately upon the action of the Board of Directors ordering the exchange of any Rights pursuant to Section 24.1,
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 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 reasonably detailed written notice of any such exchange to the
Rights Agent, and shall promptly give public notice of any such exchange; provided, however, that the failure to
give, or any defect in, any such notice shall not affect the validity of such exchange. Within ten Business Days after action
by the Board of Directors ordering the exchange of any Rights pursuant to Section 24.1, the Company shall mail, or cause the Rights
Agent to mail, a notice of any such exchange to the holders of such Rights at their last addresses as they appear upon the registry
books of the Rights Agent. Any notice 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 11.1.2)
held by each holder of Rights.

 

24.3         
In any exchange pursuant to this Section 24, the Company, at its option, may substitute Preferred Shares or Common
Stock Equivalents for Common Shares exchangeable for Rights, at the initial rate of one one-thousandth of a Preferred Share (or
an appropriate number of Common Stock Equivalents) for each Common Share, as appropriately adjusted.

 

24.4         
If there shall not be sufficient Common Shares, Preferred Shares or Common Stock Equivalents 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, Preferred Shares or Common Stock Equivalents for issuance upon exchange
of the Rights.

 

24.5         
The Company shall not be required to issue fractions of Common Shares or to distribute certificates which evidence fractional
Common Shares. In lieu of issuing fractional Common Shares, the Company may instead pay to the registered holders of the Right
Certificates with regard to which such fractional Common Shares would otherwise be issuable an

 

    -28-

     

    

 

amount
in cash equal to the same fraction of the current per share market value of a whole Common Share. For the purposes of this Section 24.5,
the current per share market value of a whole Common Share shall be the closing price of a Common Share (as determined pursuant
to the second sentence of Section 11.4.1) for the Trading Day immediately prior to the date of exchange pursuant to this
Section 24.

 

24.6         
Notwithstanding anything in this Section 24 to the contrary, the exchange of the Rights may be made effective at such time,
on such basis and subject to such conditions as the Board of Directors in its sole discretion may establish. Without limiting
the preceding sentence, the Board of Directors may (i) in lieu of issuing Common Shares or any other securities contemplated by
this Section 24 to the Persons entitled thereto in connection with the exchange (such Persons, the “Exchange Recipients,”
and such shares and other securities, together with any dividends or distributions made on such shares or other securities, the
“Exchange Property”) issue, transfer or deposit the Exchange Property to or into a trust or other entity (the
“Trust”) created upon such terms as the Board of Directors may determine to hold all or a portion of the Exchange
Property for the benefit of the Exchange Recipients, (ii) permit the Trust to exercise all of the rights that a stockholder of
record would possess with respect to any shares deposited in the Trust and (iii) direct that all holders of Rights entitled to
receive Exchange Property shall be entitled to receive such Exchange Property only from the Trust and only upon compliance with
the relevant terms and provisions of the Trust and subject to such conditions as the Board of Directors in its sole discretion
may establish. Prior to effecting an exchange of Rights, the Company may require (or cause the trustee or other governing body
of the Trust to require), as a condition thereof, that any Exchange Recipient provide evidence that it is not an Acquiring Person,
including evidence of the identity of the current or former Beneficial Owners thereof and their Affiliates and Associates. If
any Person shall fail to comply with any request to provide such evidence, the Company shall be entitled conclusively to deem
the Rights held by such Person to be null and void pursuant to Section 11.1.2 and not transferable or exercisable or exchangeable
in connection herewith. In the event the Board of Directors determines, before the Distribution Date, to effect an exchange, the
Board of Directors may delay the occurrence of the Distribution Date to such time as the Board of Directors deems advisable.

 

25.           Notice
of Certain Events.

 

25.1         
If the Company shall after the Distribution Date propose (i) to pay any dividend payable in stock of any class to
the holders of its Preferred Shares or to make any other distribution to the holders of its Preferred Shares (other than a regular
quarterly cash dividend); (ii) to offer to the holders of its 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 its Preferred Shares (other than a reclassification involving only the subdivision of outstanding
Preferred Shares); (iv) to effect any consolidation or merger into or with any other Person, 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; (v) to
effect the liquidation, dissolution or winding-up of the Company; or (vi) to declare or pay any dividend on the Common Shares
payable in Common Shares, or to effect a subdivision, combination or consolidation of the Common Shares (by reclassification or
otherwise than by payment of dividends in Common Shares), then, in each such case, the

 

    -29-

     

    

 

Company
shall give to each holder of a Right Certificate and the Rights Agent, in accordance with Section 26, a reasonably detailed
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, sale, transfer, liquidation, dissolution
or winding-up is to take place and the date of participation therein by the holders of the Common Shares or Preferred Shares or
both, 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 the 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 Common Shares or Preferred Shares or both, whichever shall be the earlier.

 

25.2         
The Company shall, as soon as practicable after a Stock Acquisition Date, give to the Rights Agent and each holder of a
Right Certificate, in accordance with Section 26, a notice that describes the transaction in which a Person became an Acquiring
Person and the consequences of the transaction to holders of Rights under Section 11.1.2.

 

26.            Notices.
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 in writing and when sent by overnight delivery service or first-class
mail, postage prepaid, properly addressed (until another address is filed in writing with the Rights Agent) as follows:

 

HRG Group, Inc.

450 Park Avenue, 29th Floor

New York, NY 10022

Attention: Ehsan Zargar

 

Subject to the provisions of
Section 21, 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 deemed given upon receipt and shall be sufficiently given or made if in writing
when sent by overnight delivery service or registered or certified mail properly addressed (until another address is filed in
writing with the Company) as follows:

 

American Stock Transfer
& Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Attention: Relationship
Management

 

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 in writing, when sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder
as shown on the registry books of the Company.

 

27.            Supplements
and Amendments. The Company may from time to time, and the Rights Agent shall if the Company
so directs in writing, supplement or amend this Agreement without the approval of any holders of Right Certificates in order to
cure any ambiguity, to correct or

 

    -30-

     

    

 

supplement
any provision contained herein which may be defective or inconsistent with any other provisions herein, or to make any change
to or delete any provision hereof or to adopt any other provisions with respect to the Rights which the Company may deem necessary
or desirable; provided, however, that, from and after such time as any Person becomes an Acquiring Person, this
Agreement shall not be amended or supplemented in any manner which would adversely affect the interests of the holders of Rights
(other than an Acquiring Person and its Affiliates and Associates). For the avoidance of doubt, the Company shall be entitled
to adopt and implement such procedures and arrangements (including with third parties) as it may deem necessary or desirable to
facilitate the exercise, exchange, trading, issuance or distribution of the Rights (and Preferred Shares) as contemplated hereby
and to ensure that an Excluded Person does not obtain the benefits thereof, and amendments in respect of the foregoing shall not
be deemed to adversely affect the interests of the holders of Rights. Any supplement or amendment authorized by this Section 27
will be evidenced by a writing signed by the Company and the Rights Agent, subject to certification by any of the officers of
the Company listed in Section 20.2 that any such supplement or amendment complies with this Section 27. Notwithstanding anything
in this Agreement to the contrary, the Rights Agent shall not be required to execute any supplement or amendment to this Agreement
that it has reasonably determined would adversely affect its own rights, duties, obligations or immunities under this Agreement.
No supplement or amendment to this Agreement shall be effective unless duly executed by the Rights Agent.

 

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

 

29.            Benefits of this Agreement. Nothing in this Agreement shall be construed to give to
any Person or entity other than the Company, the Rights Agent and the registered holders of the Right Certificates any legal or
equitable right, remedy or claim under this Agreement. This Agreement shall be for the sole and exclusive benefit of the Company,
the Rights Agent and the registered holders of the Right Certificates.

 

30.            Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected,
impaired or invalidated; provided, however, that if such excluded provision shall affect the rights, immunities,
liabilities, duties or obligations of the Rights Agent, the Rights Agent shall be entitled to resign immediately upon written
notice to the Company.

 

31.            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 all provisions regarding the rights, duties, liabilities and obligations of the Rights Agent shall be governed
by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely
within the State of New York.

 

    -31-

     

    

 

32.            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
transmitted electronically shall have the same authority, effect and enforceability as an original signature.

 

33.            Descriptive Headings. Descriptive headings of the 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.

 

34.            Administration. Other than with respect to rights, duties, obligations and immunities
of the Rights Agent, the Board of Directors shall have the exclusive power and authority to administer and interpret the provisions
of this Agreement and to exercise all rights and powers specifically granted to the Board of Directors or the Company or as may
be necessary or advisable in the administration of this Agreement. All such actions, calculations, determinations and interpretations
which are done or made by the Board of Directors in good faith shall be final, conclusive and binding on the Company, the Rights
Agent, holders of the Rights and all other parties and shall not subject the Board of Directors to any liability to the holders
of the Rights. The Rights Agent is entitled always to assume the Board of Directors acted in good faith and shall be fully protected
and incur no liability in reliance thereon.

 

35.            Force Majeure. Notwithstanding anything to the contrary contained herein, the Rights
Agent shall not be liable for any delays or failures in performance resulting from acts beyond its reasonable control including
acts of God, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of any utilities, communications,
or 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.

 

[Signature
Pages Follow]

 

 

 

    -32-

     

    

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

 

 

	 	HRG Group, Inc.
	 	 
	 	 
	 	By:	/s/ Ehsan Zargar
	 	 	Name: Ehsan Zargar
	 	 	Title:   Executive Vice
    President and General   Counsel

 

 

 

 

[Signature
Page to Rights Agreement]

 

    -33-

     

    

 

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

 

 

	 	American Stock Transfer & Trust Company, LLC
	 	 
	 	 	 
	 	By:	/s/ Michael A. Nespoli
	 	 	Name:Michael A. Nespoli
	 	 	Title:  Executive Director

 

 

 

[Signature
Page to Rights Agreement]

 

    -34-

     

    

EXHIBIT A

 

FORM

 

of

 

CERTIFICATE
OF DESIGNATION

 

of

 

SERIES B
PREFERRED STOCK

 

of

 

HRG GROUP,
INC.

 

 

 

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

 

 

 

 

HRG Group,
Inc., a corporation organized and existing under General Corporation Law of the State of Delaware (“DGCL”)
(the “Corporation”), hereby certifies that pursuant to the authority conferred upon the Board of Directors
of the Corporation (the “Board of Directors”) by the Amended Certificate of Incorporation of the Corporation
(the “Certificate of Incorporation”), the Board of Directors on February 24, 2018 adopted the following resolution
creating a series of Preferred Stock designated as Series B Preferred Stock (as hereinafter defined):

 

RESOLVED, that
pursuant to the authority vested in the Board of Directors in accordance with the provisions of the Certificate of Incorporation,
a series of Preferred Stock, par value $0.01 per share, of the Corporation be and it hereby is created, and that the designation
and amount thereof and the powers, preferences and relative, participating, optional and other special rights of the shares of
such series, and the qualifications, limitations or restrictions thereof are as follows:

 

    -35-

     

    

 

Section 1.Designation
and Amount. The shares of this series shall be designated as Series B Preferred Stock (the “Series B Preferred Stock”),
and the number of shares constituting the Series B Preferred Stock shall be 5,000,000. 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
B Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance
upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the
Corporation convertible into Series B Preferred Stock.

 

Section 2.Dividends
and Distributions.

 

(A)       Subject
to the rights of the holders of any shares of any series of Preferred Stock (or any other stock) ranking prior and superior to
the Series B Preferred Stock with respect to dividends, the holders of shares of Series B Preferred 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 last day of March, June, September and December in each year (each such date 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 B Preferred Stock, in an amount (if any) per share (rounded to the nearest cent), subject to the provision
for adjustment hereinafter set forth, equal to 1,000 multiplied by the aggregate per share amount of all cash dividends, and 1,000
multiplied by the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions, other than a
dividend payable in shares of Common Stock, par value $0.01 per share (the “Common Stock”), of the Corporation
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 Dividend Payment Date, since
the first issuance of any share or fraction of a share of Series B Preferred Stock. In the event the Corporation shall at any
time 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 amount to which
holders of shares of Series B Preferred Stock were entitled immediately prior to such event under 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.

 

(B)       The
Corporation shall declare a dividend or distribution on the Series B Preferred Stock as provided in paragraph (A) of this
Section 2 immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares
of Common Stock).

 

(C)       Dividends
due pursuant to paragraph (A) of this Section 2 shall begin to accrue and be cumulative on outstanding shares of Series B
Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue
of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares
shall begin to accrue from the date of issue of such shares, or

 

    -36-

     

    

 

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 B 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 B 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 B Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record
date shall be not more than 60 days prior to the date fixed for the payment thereof.

 

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

 

(A)       Subject
to the provision for adjustment hereinafter set forth, each share of Series B Preferred Stock shall entitle the holder thereof
to 1,000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall
at any time 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 number of votes
per share to which holders of shares of Series B Preferred Stock were entitled immediately prior to such event shall be adjusted
by multiplying such number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior
to such event.

 

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

 

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

 

Section 4.Certain
Restrictions.

 

(A)       Whenever
quarterly dividends or other dividends or distributions payable on the Series B 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 B Preferred Stock outstanding shall have been paid in full, the Corporation shall not:

 

    -37-

     

    

 

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

 

(ii)declare
or pay dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding-up) with the Series B Preferred Stock, except dividends paid ratably on the Series B 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; or

 

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

 

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

 

Section 5.Reacquired
Shares. Any shares of Series B Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and canceled promptly after the acquisition thereof. The Corporation shall take all such actions as are necessary
to cause all such shares to become authorized but unissued shares of Preferred Stock that may be reissued as part of a new series
of Preferred Stock subject to the conditions and restrictions on issuance set forth herein or in the Certificate of Incorporation,
including any Certificate of Designation creating a series of Preferred Stock or any similar stock, or as otherwise required by
law.

 

Section 6.Liquidation,
Dissolution or Winding-Up.

 

(A)       Upon
any liquidation, dissolution or winding-up of the Corporation, voluntary or otherwise, no distribution shall be made to the holders
of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding-up) to the Series B Preferred Stock
unless, prior thereto, the holders of Series B Preferred Stock shall have received an amount per share (the “Series B
Liquidation Preference”) equal to an amount per share, subject to the provision for adjustment hereinafter set forth,
equal to 1,000 multiplied by the aggregate amount to be distributed per share to holders of shares of Common Stock plus an
amount equal to any accrued and unpaid dividends. In the event the Corporation shall at any time 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 B
Preferred Stock were entitled immediately prior to such event under the preceding sentence shall be adjusted by multiplying such
amount by a fraction, the numerator

 

    -38-

     

    

 

of
which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number
of shares of Common Stock that were outstanding immediately prior to such event.

 

(B)       If
there are not sufficient assets available to permit payment in full of the Series B Liquidation Preference and the liquidation
preferences of all other classes and series of stock of the Corporation, if any, that rank on a parity with the Series B Preferred
Stock in respect thereof, then the assets available for such distribution shall be distributed ratably to the holders of the Series
B Preferred Stock and the holders of such parity shares in proportion to their respective liquidation preferences.

 

(C)       Neither
the merger or consolidation of the Corporation into or with another entity nor the merger or consolidation of any other entity
into or with the Corporation shall be deemed to be a liquidation, dissolution or winding-up of the Corporation within the meaning
of this Section 6.

 

Section 7.Consolidation,
Merger, Etc. If the Corporation shall enter into any consolidation, merger, combination or other transaction in which the
shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any
such case each share of Series B Preferred Stock shall at the same time be similarly exchanged or changed into an amount per share,
subject to the provision for adjustment hereinafter set forth, equal to 1,000 multiplied by 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 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 amount set forth in the preceding sentence with respect to the exchange
or change of shares of Series B Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which
is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

 

Section 8.Amendment.
While any Series B Preferred Stock is issued and outstanding, the Certificate of Incorporation shall not be amended in any manner,
including in a merger or consolidation, which would alter, change or repeal the powers, preferences or special rights of the Series
B 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 B Preferred Stock, voting together as a single class.

 

Section 9.Rank.
The Series B Preferred Stock shall rank, with respect to the payment of dividends and upon liquidation, dissolution and winding-up,
junior to all other series of Preferred Stock, unless the terms of any such series shall provide otherwise, and shall rank senior
to the Common Stock as to such matters.

 

[Signature
Page Follows]

 

 

    -39-

     

    

IN WITNESS
WHEREOF, this Certificate of Designation is executed on behalf of the Corporation by its duly authorized officer this 24 day of
February, 2018.

 

 

	 	HRG Group, Inc.
	 	 
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

 

 

    -40-

     

    

EXHIBIT B

 

Form of Right
Certificate

 
 

 

	Certificate
                           No. B-_______
	_____ Rights

 

 

NOT
EXERCISABLE AFTER THE FINAL EXPIRATION DATE (AS DEFINED IN THE RIGHTS AGREEMENT) OR EARLIER IF REDEMPTION, EXCHANGE OR TERMINATION
OCCURS OR AS OTHERWISE SPECIFIED IN THE RIGHTS AGREEMENT. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.00001 PER RIGHT AND TO EXCHANGE
ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS THAT ARE OR WERE ACQUIRED OR BENEFICIALLY
OWNED BY AN ACQUIRING PERSON OR ANY ASSOCIATES OR AFFILIATES THEREOF (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT),
OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS, MAY BECOME NULL AND VOID.

 

Right
Certificate

 

HRG
Group, Inc.

 

This
certifies that ___________________________, or registered assigns, is the registered owner of the number of Rights set forth above,
each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement (the “Rights
Agreement”), dated as of 24, 2018, between HRG Group, Inc., a Delaware corporation (the “Company”),
and American Stock Transfer & Trust Company, LLC, a limited liability trust company, as Rights Agent (or any successor rights
agent) (the “Rights Agent”), as may be amended from time to time, to purchase from the Company at any time
after the Distribution Date (as such term is defined in the Rights Agreement) and prior to the Final Expiration Date (as such
term is defined in the Rights Agreement) or earlier under certain circumstances set forth in the Rights Agreement, at the offices
of the Rights Agent designated for such purpose, or at the office of its successor as Rights Agent, one one-thousandth of a fully
paid non-assessable share

 

    -41-

     

    

 

of
Series B Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company, at a purchase
price of $71.55 per one one-thousandth 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, accompanied by such documentation
as the Rights Agent may reasonably request. The number of Rights evidenced by this Right Certificate (and the number of one one-thousandths
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 February 24, 2018, 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-thousandths 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.

 

From
and after the occurrence of a Stock Acquisition Date (as defined in the Rights Agreement), if the Rights evidenced by this Right
Certificate are or were acquired or Beneficially Owned by an Acquiring Person or an Associate or Affiliate of an Acquiring Person,
such Rights shall become void, and any holder of such Rights shall thereafter have no right to exercise such Rights.

 

This
Right Certificate is subject to all of the terms, provisions and conditions of the Rights Agreement, which terms, provisions and
conditions are incorporated herein by this reference and made a part hereof, and to which Rights Agreement reference is 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 office of the Rights Agent designated for such purpose.

 

This
Right Certificate, with or without other Right Certificates, upon surrender at the office or offices of the Rights Agent designated
for such purpose, accompanied by such documentation as the Rights Agent may reasonably request, 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, at the Company’s option, the Rights evidenced by this Certificate (i) may
be redeemed by the Company at a redemption price of $0.00001 per Right or (ii) may be exchanged in whole or in part for shares
of the Company’s Common Stock, par value $0.01 per share, Preferred Shares, cash, debt securities or other assets, property
or instruments. The shares and other securities transferred as part of the exchange may be transferred to a trust created upon
such terms as the Board of Directors of the Company may determine.

 

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-thousandth

 

    -42-

     

    

 

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, as such, 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 or exchange
hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such,
any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings
or other actions affecting stockholders (except as provided in the Rights Agreement), or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised or exchanged 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.

 

 

    -43-

     

    

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

 

 

	Attest:	 	HRG Group, Inc.
	 	 	 
	 	 	 	 
	 	 	By:	 

 

 

Countersigned:

 

 

	 	 

Rights Agent

 

 

 

	By:	 	 
	 	Authorized Signature	 

 

 

 

 

 

    -44-

     

    

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.

 

 

	Date:	 	 	 
	 	 	 	Signature

  

 

Signature Guaranteed:

 

Signatures
must be guaranteed by an eligible guarantor institution (bank, stock broker or savings and loan association with membership in
an approved signature medallion program).

 

----------------------------------------------------------------

 

The
undersigned hereby certifies that the Rights evidenced by this Right Certificate are not Beneficially Owned by and were not acquired
by the undersigned from an Acquiring Person or an Affiliate or Associate thereof (as such terms are defined in the Rights Agreement).

 

		 	 	 
	 	 	 	Signature

 

 

----------------------------------------------------------------

 

    -45-

     

    

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 HRG GROUP, 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
must conform to the holder specified on the Right Certificate)

 

Signature Guaranteed:

 

Signatures
must be guaranteed by an eligible guarantor institution (bank, stock broker or savings and loan association with membership in
an approved signature medallion program).

 

    -46-

     

    

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, were not acquired
by the undersigned from and are not being assigned to an Acquiring Person or an Affiliate or Associate thereof (as such terms
are defined in the Rights Agreement).

 

		 	 	 
	 	 	 	Signature

  

----------------------------------------------------------------

 

NOTICE

 

The
signature in the foregoing Forms of Assignment and Election to Purchase 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, such assignment or election to purchase will not be honored.

 

    -47-

     

    

EXHIBIT C

 

UNDER CERTAIN
CIRCUMSTANCES, RIGHTS THAT ARE OR WERE ACQUIRED OR BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR ANY ASSOCIATES OR AFFILIATES THEREOF
(AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT), OR ANY SUBSEQUENT HOLDER OF SUCH RIGHTS, MAY BECOME NULL AND VOID

 

SUMMARY OF
RIGHTS TO PURCHASE

 

PREFERRED
SHARES

 

On
February 24, 2018, the Board of Directors of HRG Group, Inc. (the “Company”) declared a dividend of one preferred
share purchase right (a “Right”) for each outstanding share of Common Stock, par value $0.01 per share (the
“Common Shares”), payable on March 8, 2018 (the “Record Date”) to the stockholders of record
on that date. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series B
Preferred Stock, par value $0.01 per share (the “Preferred Shares”), of the Company, at a price of $71.55 per
one one-thousandth of a Preferred Share represented by a Right (the “Purchase Price”), subject to adjustment.
The description and terms of the Rights are set forth in a Rights Agreement (the “Rights Agreement”), dated
as of February 24, 2018, between the Company and American Stock Transfer & Trust Company, LLC, a limited liability trust company,
as Rights Agent. Capitalized terms used but not defined in this summary have the meanings ascribed to such terms in the Rights
Agreement.

 

The Rights
Agreement is intended to, among other things, discourage an “ownership change” within the meaning of Section 382 of
the Internal Revenue Code of 1986, as amended, and thereby preserve the current ability of the Company to utilize certain net
operating loss carryovers and other tax benefits of the Company and its subsidiaries.

 

Until the
earlier to occur of (i) 10 days following a public announcement that a Person or group of Affiliated or Associated Persons
(other than an Exempt Person) has acquired Beneficial Ownership of 4.9% or more of the outstanding Common Shares (an “Acquiring
Person”) (or, in the event an exchange is effected in accordance with Section 24 of the Rights Agreement and the Board
of Directors determines that a later date is advisable, then such later date) or (ii) 10 business days (or such later
date as may be determined by action of the Board of Directors prior to such time as any Person becomes an Acquiring Person) following
the commencement of a tender offer or exchange offer the consummation of which would result in the Beneficial Ownership by a Person
or group of 4.9% or more of the outstanding Common Shares (the earlier of such dates, the “Distribution Date”),
the Rights will be evidenced, with respect to any of the Common Share certificates outstanding as of the Record Date, by such
Common Share certificate with a copy of this Summary of Rights attached thereto (unless such Rights are recorded in book entry).

 

A
Person shall not be deemed to be an Acquiring Person if such Person is (i) the Company, (ii) any Subsidiary of the Company, (iii)
CF Turul LLC, Leucadia National

 

    -48-

     

    

 

Corporation,
or any of their respective Subsidiaries, (iv) any employee benefit plan of the Company or of any Subsidiary of the Company, (v) any
entity holding Common Shares for or pursuant to the terms of any such employee benefit plan or (vi) any Person who or which,
at the time of the first public announcement of this Agreement, is a Beneficial Owner of 4.9% or more of the Common Shares of
the Company then outstanding (a “Grandfathered Stockholder”); provided, however, that if a Grandfathered
Stockholder becomes, after the date of the Rights Agreement, the Beneficial Owner of any additional Common Shares then such Grandfathered
Stockholder shall no longer be deemed to be a Grandfathered Stockholder unless, upon such acquisition of Beneficial Ownership
of additional Common Shares, such Person is not the Beneficial Owner of 4.9% or more of the Common Shares then outstanding; provided,
further, that upon the first decrease of a Grandfathered Stockholder’s Beneficial Ownership below 4.9%, such Grandfathered
Stockholder shall no longer be deemed to be a Grandfathered Stockholder. For the avoidance of doubt, in the event that after the
time of the first public announcement of the Rights Agreement, any agreement, arrangement or understanding pursuant to which any
Grandfathered Stockholder is deemed to be the Beneficial Owner of Common Shares expires, terminates or no longer confers any benefit
to or imposes any obligation on the Grandfathered Stockholder, any direct or indirect replacement, extension or substitution of
such agreement, arrangement or understanding with respect to the same or different Common Shares that confers Beneficial Ownership
of Common Shares shall be considered the acquisition of Beneficial Ownership of additional Common Shares by the Grandfathered
Stockholder and render such Grandfathered Stockholder an Acquiring Person for purposes of the Rights Agreement unless, upon such
acquisition of Beneficial Ownership of additional Common Shares, such Person is not the Beneficial Owner of 4.9% or more of the
Common Shares then outstanding.

 

In
general, “Beneficial Ownership” shall include any securities such Person or any of such Person’s Affiliates
or Associates (a) would be deemed to actually or constructively own for purposes of Section 382 of the Code or the Treasury Regulations
promulgated thereunder, including any coordinated acquisition of securities by any Persons who have a formal or informal understanding
with respect to such acquisition (to the extent ownership of such securities would be attributed to such Persons under Section
382 of the Code and the Treasury Regulations promulgated thereunder), (b) beneficially owns, directly or indirectly, within the
meaning of Rules 13d-3 or 13d-5 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
(c) has the right to acquire or vote pursuant to any agreement, arrangement or understanding (except under limited circumstances),
(d) which are directly or indirectly beneficially owned by any other Person with which such Person has any agreement, arrangement
or understanding for the purpose of acquiring, holding or voting such securities, or obtaining, changing or influencing control
of the Company or (e) in respect of which such Person has a derivative position.

 

The
Rights Agreement provides that, until the Distribution Date, the Rights will be transferred with and only with the Common Shares.
Until the Distribution Date (or earlier redemption or expiration of the Rights), new Common Share certificates issued after the
Record Date or upon transfer or new issuance of Common Shares will contain a notation incorporating the Rights Agreement by reference.
Until the Distribution Date (or earlier redemption or expiration of the Rights), the surrender for transfer of any certificates
for Common Shares outstanding as of the Record Date, even without such notation or a copy of this Summary of Rights being attached
thereto, will also constitute the transfer of the Rights associated with the

 

    -49-

     

    

 

Common
Shares represented by such certificate. As soon as practicable following the Distribution Date, separate certificates evidencing
the Rights (“Right Certificates”) will be mailed to holders of record of the Common Shares as of the Close
of Business on the Distribution Date, and such separate Right Certificates alone will evidence the Rights (unless such Rights
are recorded in book entry).

 

The
Rights are not exercisable until the Distribution Date. The Rights will expire on the earlier of (i) the Close of Business on
the one-year anniversary date of the date of this Agreement and (ii) the Close of Business on the date which is 60 days following
the termination of that certain Agreement and Plan of Merger dated as of the date hereof, by and among the Company, Spectrum Brands
Holdings, Inc., HRG SPV Sub I, Inc. and HRG SPV Sub II, LLC, in accordance with its terms (the “Final Expiration Date”).

 

The
Purchase Price payable, and the number of Preferred Shares or other securities or property issuable, upon exercise of the Rights
is subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision,
combination or reclassification of, the Preferred Shares; (ii) upon the grant to holders of the Preferred Shares of certain
rights or warrants to subscribe for or purchase Preferred Shares at a price, or securities convertible into Preferred Shares with
a conversion price, less than the then current market price of the Preferred Shares; or (iii) upon the distribution to holders
of the Preferred Shares of evidences of indebtedness or assets (excluding regular periodic cash dividends paid out of earnings
or retained earnings or dividends payable in Preferred Shares) or of subscription rights or warrants (other than those referred
to above).

 

The
number of outstanding Rights and the number of Preferred Shares issuable upon exercise of each Right are also subject to adjustment
in the event of a stock split of the Common Shares or a stock dividend on the Common Shares payable in Common Shares or subdivisions,
consolidations or combinations of the Common Shares occurring, in any such case, prior to the Distribution Date.

 

Preferred
Shares purchasable upon exercise of the Rights will not be redeemable. Each Preferred Share will be entitled to a quarterly dividend
payment of 1,000 multiplied by the dividend declared per Common Share. In the event of liquidation, the holders of the Preferred
Shares will be entitled to a payment per share equal to 1,000 multiplied by the aggregate payment made per Common Share.
Each Preferred Share will have 1,000 votes, voting together with the Common Shares. In the event of any merger, consolidation
or other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to receive 1,000 multiplied by
the amount received per Common Share.

 

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

 

From
and after the time any Person becomes an Acquiring Person, if the Rights evidenced by this Right Certificate are or were acquired
or Beneficially Owned by an Acquiring Person or an Associate or Affiliate of an Acquiring Person (as such terms are defined in
the

 

    -50-

     

    

 

Rights
Agreement), such Rights shall become void, and any holder of such Rights shall thereafter have no right to exercise such Rights.

 

If
any Person becomes an Acquiring Person, proper provision shall be made so that each holder of a Right, other than Rights Beneficially
Owned by the Acquiring Person and its Affiliates and Associates (all of which will thereafter be void), will thereafter have the
right to receive upon exercise such number of Common Shares of the Company as shall equal the result obtained by dividing the
then current Purchase Price by 50% of the then Current Per Share Market Price of the Company’s Common Shares. If the Board
of Directors so elects, the Company shall deliver upon payment of the Purchase Price of a Right an amount of cash or securities
equivalent in value to the Common Shares issuable upon exercise of a Right.

 

If,
at any time after a Person becomes an Acquiring Person, the Company is acquired in a merger or other business combination transaction
or 50% or more of its consolidated assets or Earning Power (as defined in the Rights Agreement) are sold, proper provision will
be made so that each holder of a Right will thereafter have the right to receive, upon the exercise thereof at the then current
Purchase Price of the Right, that number of shares of common stock of the acquiring company equal to the result obtained by dividing
the then current Purchase Price by 50% of the then Current Per Share Market Price of the Common Shares of the Acquiring Person.

 

At
any time after any Person becomes an Acquiring Person and prior to the acquisition by any Person or group of a majority of the
outstanding Common Shares, the Board of Directors may exchange the Rights (other than Rights owned by such Person or group which
have become void), in whole or in part, at an exchange ratio of one Common Share per Right (subject to adjustment). The shares
and other securities transferred as part of the exchange may be transferred to a trust created upon such terms as the Board of
Directors of the Company may determine.

 

With
certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of
at least 1% in such Purchase Price. No fractional Preferred Shares will be issued (other than fractions which are integral multiples
of one one-thousandth of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts), and
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.

 

At any time
prior to the time any Person becomes an Acquiring Person, the Board of Directors may redeem the Rights in whole, but not in part,
at a price of $0.00001 per Right (the “Redemption Price”). The redemption of the Rights may be made effective
at such time, on such basis and with such conditions as the Board of Directors in its sole discretion may establish. Immediately
upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights
will be to receive the Redemption Price.

 

The
terms of the Rights may be amended by the Board of Directors without the consent of the holders of the Rights. However, from and
after such time as any Person becomes an Acquiring Person, the Rights Agreement shall not be amended or supplemented in any manner
which would adversely affect the interests of the holders of Rights (other than an Acquiring Person and its Affiliates and Associates).

 

    -51-

     

    

 

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

 

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

 

 

 

    -52-

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