Document:

Exhibit 4.1

 

Innodata Inc.

 

and

 

American Stock Transfer & Trust Company,
LLC, as Rights Agent

 

dated as of February 1, 2019

 

     

     

    

 

TABLE OF CONTENTS

 

	Section 1	Definitions	4
	 	 	 
	Section 2	Appointment of Rights Agent	10
	 	 	 
	Section 3	Issue of Rights Certificate	10
	 	 	 
	Section 4	Form of Rights Certificates	12
	 	 	 
	Section 5	Countersignature and Registration	12
	 	 	 
	Section 6	Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	12
	 	 	 
	Section 7	Exercise of Rights; Purchase Price; Expiration Date of Rights	13
	 	 	 
	Section 8	Cancellation and Destruction of Rights Certificates	14
	 	 	 
	Section 9	Status and Availability of Preferred Shares	14
	 	 	 
	Section 10	Preferred Shares Record Date	15
	 	 	 
	Section 11	Adjustment of Purchase Price, Number of Shares or Number of Rights	15
	 	 	 
	Section 12	Certificate of Adjustment	21
	 	 	 
	Section 13	Consolidation, Merger or Sale or Transfer of Assets or Earning Power	22
	 	 	 
	Section 14	Fractional Rights and Fractional Shares	22
	 	 	 
	Section 15	Rights of Action	23
	 	 	 
	Section 16	Agreements of Rights Holders	23
	 	 	 
	Section 17	Rights Certificate Holder Not Deemed a Stockholder	24
	 	 	 
	Section 18	Concerning the Rights Agent	24
	 	 	 
	Section 19	Merger or Consolidation or Change of Name of Rights Agent	24
	 	 	 
	Section 20	Duties of Rights Agent	25
	 	 	 
	Section 21	Change of Rights Agent	26

 

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	Section 22	Issuance of New Rights Certificates	27
	 	 	 
	Section 23	Redemption	27
	 	 	 
	Section 24	Exchange	29
	 	 	 
	Section 25	Notice of Certain Events	30
	 	 	 
	Section 26	Notices	30
	 	 	 
	Section 27	Supplements and Amendments	31
	 	 	 
	Section 28	Successors	31
	 	 	 
	Section 29	Benefits of This Agreement	31
	 	 	 
	Section 30	Severability	32
	 	 	 
	Section 31	Governing Law	32
	 	 	 
	Section 32	Counterparts	32
	 	 	 
	Section 33	Descriptive Headings	32
	 	 	 
	Section 34	Administration	32
	 	 	 
	Signatures	 	32
	 	 	 
	Exhibit A	Form of Certificate of Designation	A-1
	 	 	 
	Exhibit B	Form of Right Certificate	B-1
	 	 	 
	Exhibit C	Summary of Rights to Purchase Preferred Stock	C-1

 

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RIGHTS AGREEMENT dated as of February 1, 2019 (the "Agreement"),
between Innodata Inc., a Delaware corporation (the "Company"), and AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC,
a New York limited liability trust company (the "Rights Agent").

 

Preamble

 

On February 1, 2019 (the "Rights Dividend Declaration Date"),
the Board of Directors of the Company (the "Board") authorized and declared a dividend distribution of one preferred
share purchase right (a "Right") for each share of common stock, par value $0.01 per share, of the Company (the "Common
Stock") outstanding at the Close of Business on February 15, 2019 (the "Record Date"), and has authorized the issuance
of one Right (as such number may be hereinafter adjusted pursuant to the terms hereof) with respect to each additional share of
Common Stock that shall become outstanding between the Record Date and the earliest of Close of Business on the Distribution Date,
the Redemption Date and Close of Business on the Final Expiration Date, each Right representing the right to purchase one one-thousandth
of a Preferred Share (as hereinafter defined), or such different amount and/or kind of securities as shall be hereinafter provided.

 

The parties wish to enter into this Agreement in order to set
forth the terms of the Rights. Accordingly, in consideration of the premises and the mutual agreements herein set forth, the parties
hereby agree as follows:

 

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

 

(a)                 "Acquiring
Person" shall mean any Person who or which, together with all Affiliates and Associates of such Person, shall be the Beneficial
Owner of 20% or more of the shares of Common Stock then outstanding, but shall not include (i) the Company, (ii) any Subsidiary
of the Company, (iii) any employee benefit plan of the Company or of any Subsidiary of the Company, (iv) any Person organized,
appointed or established by the Company for or pursuant to the terms of any such plan; provided, however, that the foregoing definition
shall be subject to the following qualifications:

 

(i)             no
Person shall become an "Acquiring Person" as the result of an acquisition of Common Stock by the Company which, by reducing
the number of shares outstanding, increases the proportionate number of shares beneficially owned by such Person to 20% or more
of the shares of Common Stock of the Company then outstanding; provided, however, that if a Person shall become the Beneficial
Owner of 20% or more of the Common Stock of the Company then outstanding by reason of share purchases by the Company and shall,
after such share purchases by the Company, become the Beneficial Owner of any additional Common Stock of the Company constituting
1% or more of the Common Stock outstanding as of the Close of Business on the date that such Person first becomes the Beneficial
Owner of 20% or more of the Common Stock of the Company, then such Person shall be deemed to be an "Acquiring Person";
and

 

(ii)            if
the Board determines in good faith that a Person who would otherwise be an "Acquiring Person" became such inadvertently
(including, without limitation, because (x) such Person was unaware that it beneficially owned a percentage of Common Stock that
would otherwise cause such Person to be an "Acquiring Person" or (y) such Person was aware of the extent of its Beneficial
ownership of Common Stock but had no actual knowledge of the consequences of such Beneficial ownership under this Agreement) and
without any intention of changing or influencing control of the company, and if such person as promptly as practicable divested
or divests itself of Beneficial Ownership of a sufficient number of shares of Common Stock so that such Person would no longer
be an "Acquiring Person," then such Person shall not be deemed to be or to have become an "Acquiring Person"
for any purposes of this Agreement.

 

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(b)              "Affiliate"
and "Associate" shall have the respective meanings ascribed to such terms in Rule 12b-2 of the Exchange Act Regulations,
as in effect on the date of this Agreement .

 

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

 

(i)          which
such Person or any of such Person's Affiliates or Associates, directly or indirectly, has the right to acquire (whether such right
is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (whether
or not in writing) or upon the exercise of conversion rights, exchange rights, other rights, warrants or options, or otherwise;
provided, however, that a Person shall not be deemed the "Beneficial Owner" of, or to "beneficially own," (A)
securities tendered pursuant to a tender or ex-change offer made by such Person or any of such Person's Affiliates or Associates
until such tendered securities are accepted for purchase or exchange, or (B) securities issuable upon exercise of Rights;

 

(ii)         which
such Person or any of such Person's Affiliates or Associates, directly or indirectly, has "beneficial ownership" of or
has the right to vote or dispose of (in each case as determined pursuant to Rule 13d-3 of the Exchange Act Regulations), including
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 under this subparagraph (ii) as
a result of an agreement, arrangement or understanding to vote such security if such agreement, arrangement or understanding: (A)
arises solely from a revocable proxy given in response to a public proxy or consent solicitation made pursuant to, and in accordance
with, the applicable provisions of the Exchange Act Regulations, and (B) is not also then reportable by such Person on Schedule
13D under the Exchange Act (or any comparable or successor report);

 

(iii)        which
are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) 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 (except pursuant to a revocable proxy as described in the proviso to subparagraph
(ii) of this paragraph (c)) or disposing of any voting securities of the Company; provided, however, that nothing in this paragraph
(c) shall cause a Person engaged in business as an underwriter of securities to be the "Beneficial Owner" of, or to "beneficially
own," any securities that such Person acquires, or has the right to acquire, pursuant to customary agreements with the Company
and/or between underwriters and selling group members with respect to a bona fide public offering of securities. Notwithstanding
anything in the definition of Beneficial Ownership to the contrary, the phrase "then outstanding," when used with reference
to a Person's Beneficial Ownership of securities of the Company, shall mean 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 own beneficially
hereunder; or

 

(iv)         that
are the subject of a derivative transaction entered into by such Person or any of such Person’s Affiliates or Associates,
including, for these purposes, any derivative security acquired by such Person or any of such Person’s Affiliates or Associates
that gives such Person or any of such Person’s Affiliates or Associates the economic equivalent of ownership of an amount
of securities due to the fact that the value of the derivative security is explicitly determined by reference to the price or value
of such securities, or that provides such Person or any of such Person’s Affiliates or Associates an opportunity, directly
or indirectly, to profit or to share in any profit derived from any change in the value of such securities, in any case without
regard to whether (A) such derivative security conveys any voting rights in such securities to such Person or any of such Person’s
Affiliates or Associates; (B) the derivative security is required to be, or capable of being, settled through delivery of such
securities; or (C) such Person or any of such Person’s Affiliates or Associates may have entered into other transactions
that hedge the economic effect of such derivative security. In determining the number of Common Stock that are Beneficially Owned
by virtue of the operation of this Section 1(c)(iv), the subject Person will be deemed to Beneficially Own (without duplication)
the notional or other number of Common Stock that, pursuant to the documentation evidencing the derivative security, may be acquired
upon the exercise or settlement of the applicable security or as the basis upon which the value or settlement amount of such security,
or the opportunity of the holder of such derivative security to profit or share in any profit, is to be calculated, in whole or
in part, and in any case (or if no such number of Common Stock is specified in such documentation or otherwise) as determined by
the Board in good faith to be the number of Common Stock to which the derivative security relates.

 

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

 

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

 

(f)               "Common
Stock" when used with reference to the Company shall mean the shares of common stock, par value $0.01 per share, of the Company.

 

(g)              "Common
Stock" when used with reference to any Person other than the Company shall mean 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.

 

(h)              "Common
Stock Equivalents" shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(i)                "Company"
shall have the meaning set forth in the introductory paragraph to this Agreement.

 

(j)                “Current
per Share Market Price” and "current per share market price" shall have the meaning set forth in Section 11(d)(i)
hereof.

 

(k)               "Current
Value" shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(l)                "Definitive
Acquisition Agreement" shall mean any agreement entered into by the Company that is conditioned on the approval by the holders
of not less than a majority of the outstanding Common Stock of the Company and is with respect to (i) a share exchange, merger,
consolidation, recapitalization, reorganization, business combination or similar transaction involving the Company or (ii) the
acquisition, directly or indirectly, of assets or earning power aggregating 50% or more of the consolidated assets or earning power
of the Company and its Subsidiaries (taken as a whole).

 

(m)              "Distribution
Date" shall have the meaning set forth in Section 3(a) hereof.

 

(n)              "Equivalent
Preferred Shares" shall have the meaning set forth in Section 11(b) hereof.

 

(o)              "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended.

 

(p)              "Exchange
Act Regulations" shall mean the General Rules and Regulations under the Exchange Act.

 

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(q)              "Expiration
Date" shall mean the Close of Business on January 31, 2022.

 

(r)               "Final
Expiration Date" shall mean the earlier to occur of (A) the Close of Business on the day following the certification of the
voting results of the Company’s 2019 annual meeting of stockholders, if at such stockholder meeting there was no proposal
to approve the Rights Agreement or if a proposal to approve the Rights Agreement did not receive the affirmative vote of the holders
of a majority of the Company’s Common Stock present in person or represented by proxy, entitled to vote and actually voted
on such proposal and (B) the Expiration Date.

 

(s)               "Person"
shall mean 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.

 

(t)               "Preferred
Shares" shall mean shares of Series C Participating Preferred Stock, par value $0.01 per share, of the Company having such
rights and preferences upon adoption as are set forth in Certificate of Designation filed with the Secretary of State of Delaware
on December 30, 2002 and set forth as Exhibit A hereto.

 

(u)              "Purchase
Price" shall have the meaning set forth in Section 7(b) hereof.

 

(v)              “Qualifying
Offer” shall mean an offer determined by the Board of Directors of the Company to have each of the following characteristics:

 

(i)         a
fully financed all-cash tender offer or an exchange offer offering shares of common stock of the offeror, or a combination thereof,
in each such case for all of the outstanding Common Stock of the Company at the same per share consideration;

 

(ii)        an
offer that has commenced within the meaning of Rule 14d-2(a) under the Exchange Act;

 

(iii)       an
offer that, within twenty (20) Business Days after commencement (or within ten (10) Business Days after any increase in the offer
consideration), does not result in a nationally recognized investment banking firm retained by the Board rendering an opinion to
the Board that the consideration being offered to the holders of the Common Stock of the Company is either inadequate or unfair;

 

(iv)       an
offer whose per share offer price and consideration (x) is not less than $9.00, subject to adjustment as provided in this Agreement,
and (y) also represent a reasonable premium over the highest reported market price of the Common Stock of the Company in the immediately
preceding 24 months prior to the date on which the offer is commenced; provided that to the extent that an offer includes
common stock of the offeror, such per share offer price with respect to such common stock of the offeror will be determined for
purposes of the foregoing provision using the lowest reported market price for common stock of the offeror during the five Trading
Days immediately preceding and the five Trading Days immediately following the date on which the Qualifying Offer is commenced;

 

(v)        an
offer pursuant to which the Company has received an irrevocable written commitment of the offeror that the offer will remain open
for at least one hundred twenty (120) Business Days and, if a Special Meeting is duly requested in accordance with Section 23(b),
for at least ten (10) Business Days after the date of the Special Meeting or, if no Special Meeting is held within the Special
Meeting Period, for at least ten (10) Business Days following the last day of such Special Meeting Period;

 

(vi)      an
offer that is conditioned on a minimum of at least two-thirds of the outstanding Common Stock of the Company not held by the offeror
(and such Person’s Affiliates and Associates) being tendered and not withdrawn as of the offer’s expiration date, which
condition shall not be waivable;

 

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(vii)     an
offer that is subject only to the minimum tender condition described in Section 1(v)(vi) and other customary terms and conditions,
which conditions shall not include any financing, funding or similar conditions or any requirements with respect to the offeror
or its agents or any other Person being permitted any due diligence with respect to the books, records, management, accountants
and other outside advisors of the Company;

 

(viii)    an
offer pursuant to which the Company has received an irrevocable written commitment of the offeror that, in addition to the minimum
time periods specified above in Section 1(v)(v), the offer, if it is otherwise to expire prior thereto, will be extended for at
least twenty (20) Business Days after any increase in the consideration being offered or after any bona fide alternative
offer is commenced; provided, however, that such offer need not remain open, as a result of Section 1(v)(v) and this
Section 1(v)(viii), beyond (A) the time that any other offer satisfying the criteria for a Qualifying Offer is then required to
be kept open under such Section 1(v)(v) and this Section 1(v)(viii), (B) the expiration date, as such date may be extended by public
announcement (with prompt written notice to the Rights Agent) in compliance with Rule 14e-1 under the Exchange Act, of any other
tender offer for the Common Stock of the Company with respect to which the Board has agreed to redeem the Rights immediately prior
to acceptance for payment of the Common Stock of the Company thereunder (unless such other offer is terminated prior to its expiration
without any of the Common Stock of the Company having been purchased thereunder) or (C) one (1) Business Day after the stockholder
vote with respect to approval of any Definitive Acquisition Agreement has been officially determined and certified by the inspectors
of election;

 

(ix)      an
offer pursuant to which the Company has received an irrevocable written commitment by the offeror to consummate as promptly as
practicable upon successful completion of the offer a second-step transaction whereby all of the Common Stock of the Company not
tendered into the offer will be acquired at the same consideration per share actually paid pursuant to the offer, subject to stockholders’
statutory appraisal rights, if any;

 

(x)        an
offer pursuant to which the Company and its stockholders have received an irrevocable, legally binding written commitment of the
offeror that no amendments will be made to the offer to reduce the consideration being offered or to otherwise change the terms
of the offer in a way that is adverse to a tendering stockholder;

 

(xi)       an
offer (other than an offer consisting solely of cash consideration) pursuant to which the Company has received the written representation
and certification of the offeror and the written representations and certifications of the offeror’s Chief Executive Officer
and Chief Financial Officer, acting in such capacities, that (A) all facts about the offeror that would be material to making an
investor’s decision to accept the offer have been fully and accurately disclosed as of the date of the commencement of the
offer, (B) all such new facts will be fully and accurately disclosed on a prompt basis during the entire period during which the
offer remains open and (C) all required Exchange Act reports will be filed by the offeror in a timely manner during such period;

 

(xii)      if
the offer includes shares of common stock of the offeror, (A) the non-cash portion of the consideration offered must consist solely
of common stock of an offeror that is a publicly-owned United States corporation, (B) such common stock must be freely tradable
and listed or admitted to trading on either the New York Stock Exchange or The NASDAQ Stock Market LLC ("Nasdaq"), (C)
no stockholder approval of the issuer of such common stock may be required to issue such common stock, or, if such approval may
be required, such approval must have already been obtained, (D) there must be no Person (including such Person’s Affiliates
and Associates) that Beneficially Owns 20% or more of the shares of common stock of the offeror then outstanding at the time of
commencement of the offer or at any time during the term of the offer, (E) no other class of voting stock of the offeror is outstanding,
and the offeror meets the registrant eligibility requirements for use of Form S-3 for registering securities under the Securities
Act of 1933, as amended, including the filing of all required Exchange Act reports in a timely manner during the twelve (12) calendar
months prior to the date of commencement of such offer; and

 

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(xiii)     if
the offer includes shares of common stock of the offeror, an offer pursuant to which (A) the offeror shall permit representatives
of the Company (including a nationally-recognized investment banking firm retained by the Board and legal counsel and an accounting
firm designated by the Company) to have access to such offeror’s books, records, management, accountants, financial advisors,
counsel and any other appropriate outside advisors for the purposes of permitting such representatives to conduct a due diligence
review of the offeror in order to permit the Board to evaluate the offer and make an informed decision and, if requested by the
Board, to permit such investment banking firm (relying as appropriate on the advice of such legal counsel) to be able to render
an opinion to the Board with respect to whether the consideration being offered to the stockholders of the Company is fair from
a financial point of view and (B) within ten (10) Business Days after such representatives of the Company (including a nationally-recognized
investment banking firm retained by the Board and legal counsel and an accounting firm designated by the Company) shall have notified
the Company and the offeror that it has completed such due diligence review to its satisfaction (or, following completion of such
due diligence review, within ten (10) Business Days after any increase in the consideration being offered), such investment banking
firm does not render an opinion to the Board that the consideration being offered to the stockholders of the Company is either
unfair or inadequate and such investment banking firm does not, after the expiration of such ten (10) Business Day period, render
an opinion to the Board that the consideration being offered to the stockholders of the Company has become either unfair or inadequate
based on a subsequent disclosure or discovery of a development or developments that have had or are reasonably likely to have an
adverse effect on the value of the common stock of the offeror.

 

For purposes of this definition, “fully
financed” shall mean that the offeror has sufficient funds for the offer and related expenses which shall be evidenced by
(i) firm, unqualified, binding written commitments from responsible financial institutions having the necessary financial capacity,
accepted by the offeror, to provide funds for such offer subject only to customary terms and conditions, which conditions shall
not include any requirements with respect to such financial institutions or any other Person being permitted any due diligence
with respect to the books, records, management, accountants and other outside advisors of the Company, (ii) cash or cash equivalents
then available to the offeror, set apart and maintained solely for the purpose of funding the offer with an irrevocable written
commitment being provided by the offeror to the Board to maintain such availability until the offer is consummated or withdrawn,
or (iii) a combination of the foregoing; which evidence has been provided to the Company prior to, or upon, commencement of the
offer. If an offer becomes a Qualifying Offer in accordance with this definition, but subsequently ceases to be a Qualifying Offer
as a result of the failure at a later date to continue to satisfy any of the requirements of this definition, such offer shall
cease to be a Qualifying Offer and the provisions of Section 23(b) shall no longer be applicable to such offer.

 

(w)         “Qualifying
Offer Resolution” shall have the meaning set forth in Section 23(b).

 

(x)           "Record
Date" shall have the meaning set forth in the Preamble to this Agreement.

 

(y)          "Redemption
Date" shall have the meaning set forth in Section 23(c) hereof.

 

(z)          "Redemption
Price" shall have the meaning set forth in Section 23(a) hereof.

 

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(aa)        "Right"
shall have the meaning set forth in the Preamble to this Agreement.

 

(bb)        "Right
Certificate" shall mean a certificate evidencing a Right in substantially the form of Exhibit B hereto.

 

(cc)        "Rights
Agent" shall have the meaning set forth in the introductory paragraph to this Agreement.

 

(dd)        "Section
11(a)(ii) Trigger Date" shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(ee)         "Shares
Acquisition Date" shall mean the earlier of the date of (i) the public announcement by the Company or an Acquiring Person
that an Acquiring Person has become such or (ii) the public disclosure of facts by the Company or an Acquiring Person indicating
that an Acquiring Person has become such.

 

(ff)         "Spread"
shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(gg)       "Subsidiary"
of any Person shall mean 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.

 

(hh)        "Substitution
Period" shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(ii)          "Summary
of Rights" shall mean the Summary of Rights to Purchase Preferred Shares in substantially the form of Exhibit C hereto.

 

(jj)          "Trading
Day" shall have the meaning set forth in Section 11(d)(i) hereof.

 

(kk)        "Voting
Stock," as of the date of any determination, shall mean the shares of Common Stock then outstanding and any other shares of
capital stock of the Company then outstanding which are entitled to vote upon matters submitted to the stockholders of the Company
for a vote.

 

Section 2              Appointment of
Rights Agent.

 

The Company hereby appoints the Rights Agent to act as agent
for the Company and the holders of the Rights (who, in accordance with Section 3 hereof, shall prior to the Distribution Date also
be the holders of the Common Stock) in accordance with the terms and conditions hereof, 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. 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 determine. Contemporaneously with such appointment, if any, the Company shall notify the Rights Agent thereof.
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.

 

Section 3              Issue of Right
Certificates.

 

(a)              Until
the earlier of (i) the Close of Business on the tenth calendar day after the Shares Acquisition Date or (ii) the tenth Business
Day (or such later date as may be determined by action of the Board of Directors prior to such time as any Person becomes an Acquiring
Person) after the date of the commencement by any Person (other than the Company, any Subsidiary of the Company, any employee benefit
plan of the Company or of any Subsidiary of the Company or any entity organized, appointed or established by the Company for or
pursuant to the terms of any such plan) of, or of the first public announcement of the intention of any Person (other than any
of the Persons referred to in the preceding parenthetical) to commence, 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"), (x)
the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the certificates for Common Stock registered
in the names of the holders thereof (which certificates shall also be deemed to be Right Certificates) and not by separate Right
Certificates, and (y) the Rights will be transferable only in connection with the transfer of Common Stock. 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, send) by first-class, insured, postage-prepaid mail, to each record
holder of Common Stock as of the Close of Business on the Distribution Date, at the address of such holder shown on the records
of the Company, a Right Certificate evidencing one Right for each share of Common Stock so held. From and after the Distribution
Date, the Rights will be evidenced solely by such Right Certificates.

 

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(b)              On
the Record Date, or as soon as practicable thereafter, the Company will send a copy of the Summary of Rights by first-class, postage-prepaid
mail, to each record holder of Common Stock as of the Close of Business on the Record Date, at the address of such holder shown
on the records of the Company. With respect to certificates for Common Stock outstanding as of the Record Date, until the Close
of Business on the Distribution Date, the Rights will be evidenced by such certificates registered in the names of the holders
thereof together with a copy of the Summary of Rights. Until the Close of Business on the Distribution Date (or, if earlier the
Redemption Date or the Close of Business on the Final Expiration Date), the surrender for transfer of any certificate for Common
Stock outstanding on the Record Date, with or without a copy of the Summary of Rights attached thereto, shall also constitute the
transfer of the Rights associated with the Common Stock evidenced thereby.

 

(c)              Certificates
for Common Stock which become outstanding (including, without limitation, reacquired Common Stock referred to in the last sentence
of this paragraph (c)) after the Record Date but prior to the earliest of the Close of Business on the Distribution Date, the Redemption
Date or the Close of Business on the Final Expiration Date shall have impressed on, printed on, written on or otherwise affixed
to them the following legend:

 

This certificate also evidences
and entitles the holder hereof to certain Rights as set forth in a Rights Agreement between Innodata Inc. and American Stock Transfer
& Trust Company, LLC, dated as of February 1, 2019 (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 Innodata Inc. Under certain circumstances,
as set forth in the Rights Agreement, such Rights will be evidenced by separate certificates and will no longer be evidenced by
this certificate. Innodata 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, as set forth in the Rights Agreement, Rights that are or were
acquired or beneficially owned by Acquiring Persons (as defined in the Rights Agreement) may become null and void.

 

With respect to such certificates containing the foregoing legend,
until the Close of Business on the Distribution Date, the Rights associated with the Common Stock represented by certificates shall
be evidenced by such certificates alone, and the surrender for transfer of any such certificate shall also constitute the transfer
of the Rights associated with the Common Stock represented thereby.

 

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

 

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Notwithstanding this Section 3, neither the omission of the
legend required hereby, nor the failure to provide the notice thereof, shall affect the enforceability of any part of this Agreement
or the rights of any holder of the Rights.

 

Section 4               Form of Right Certificates.

 

The Right Certificates (and the forms of election to purchase
Preferred Shares and of assignment to be printed on the reverse thereof) shall be substantially the same as Exhibit 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, or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or transaction
reporting system 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 number of one one-thousandths of a Preferred Share and the Purchase
Price shall be subject to adjustment as provided herein.

 

Section 5               Countersignature
and Registration.

 

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

 

(b)               Following
the Distribution Date, the Rights Agent will keep or cause to be kept, at its principal office, 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 by each of the Right Certificates and the date of each of the Right Certificates.

 

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

 

(a)               Subject
to the provisions of Section 14 hereof, at any time after the Close of Business on the Distribution Date, and prior to the earlier
of the Redemption Date or the Close of Business on the Final Expiration Date, any Right Certificate or Right Certificates (other
than Right Certificates representing Rights that have become void pursuant to Section 11(a)(ii) hereof or that have been exchanged
pursuant to Section 24 hereof) may be transferred, split up, combined or exchanged for another Right Certificate or Right Certificates,
entitling the registered holder to purchase a like number of one one-thousandths of a Preferred Share as the Right Certificate
or Right Certificates surrendered then entitled such holder to purchase. Any registered holder desiring to transfer, split up,
combine or exchange any Right Certificate or Right Certificates shall make such request in writing delivered to the Rights Agent,
and shall surrender the Right Certificate or Right Certificates to be transferred, split up, combined or exchanged at the principal
office of the Rights Agent. 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 may require payment 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.

 

    	12

     

    

 

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

 

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

 

(a)              The
registered holder of any Right Certificate (other than a holder whose Rights have become void pursuant to Section 11(a)(ii) hereof
or have been redeemed pursuant to Section 23 hereof) may exercise the Rights evidenced thereby in whole or in part at any time
after the Distribution Date and prior to the Final Expiration Date upon surrender of the Right Certificate, with the form of election
to purchase on the reverse side thereof duly executed, to the Rights Agent at its principal office, together with payment of the
Purchase Price for each one one-thousandth of a Preferred Share as to which the Rights are exercised, at or prior to the earliest
of (i) the Final Expiration Date, (ii) the time at which the Rights are redeemed as provided in Section 23 hereof, (iii) the time
at which such Rights are exchanged as provided in Section 24 hereof, or (iv) the time at which the Rights expire in connection
with the consummation of a Qualifying Offer as provided in Section 23 hereof.

 

(b)              The
purchase price for each one one-thousandth of a Preferred Share to be purchased upon the exercise of a Right shall initially be
seven Dollars ($7.00) (the "Purchase Price"), shall be subject to adjustment from time to time as provided in Sections
11 and 13 hereof and shall be payable in lawful money of the United States of America in accordance with paragraph (c) below.

 

(c)              Upon
receipt of a Right Certificate representing exercisable Rights, with the form of election to purchase and certificate duly executed,
accompanied by payment of the Purchase Price for the number of one one-thousandths of a Preferred Share to be purchased, and an
amount equal to any applicable transfer tax required to be paid by the holder of such Right Certificate in accordance with Section
9 hereof, in cash or by certified check, cashier's check or money order payable to the order of the Company, the Rights Agent shall
thereupon promptly (i) requisition from any transfer agent of the Preferred Shares certificates for the number of one one-thousandths
of a Preferred Share to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests,
(ii) when appropriate, requisition from the Company the amount of cash to be paid in lieu of issuance of fractional Preferred Shares
in accordance with Section 14 hereof, (iii) after receipt of such certificates, cause the same to be delivered to or upon the order
of the registered holder of such Right Certificate, registered in such name or names as may be designated by such holder and (iv)
when appropriate, after receipt, deliver such cash to or upon the order of the registered holder of such Right Certificate.

 

    	13

     

    

 

(d)              In
case 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 to the registered holder of
such Right Certificate or to such registered holder's duly authorized assigns, subject to the provisions of Section 14 hereof.

 

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

 

Section 8              Cancellation and
Destruction of Right Certificates.

 

All Right Certificates surrendered for the purpose of exercise,
transfer, split up, combination or exchange shall, if surrendered to the Company or to any of its agents, be delivered to the Rights
Agent for cancellation or in 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. The Rights Agent shall deliver all canceled Right
Certificates 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.

 

Section 9              Status and Availability
of Preferred Shares.

 

(a)              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.

 

(b)              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 in a name other than that
of, the registered holder of the Right Certificate evidencing Rights surrendered for exercise or to issue or to deliver any certificates
for Preferred Shares upon the exercise of any Rights until any such tax shall have been paid (any such tax being payable by the
holder of such Right Certificate at the time of surrender) or until it has been established to the Company's reasonable satisfaction
that no such tax is due.

 

(c)              The
Company shall use its best efforts to (i) file, as soon as practicable following the first occurrence of a Section 11(a)(ii) Trigger
Date, or as soon as is required by law following the Distribution Date, as the case may be, a registration statement under the
Securities Act of 1933, as amended (the "Securities Act"), with respect to the securities purchasable upon exercise of
the Rights on an appropriate form, (ii) cause such registration statement to become effective as soon as practicable after such
filing, and (iii) cause such registration statement to remain effective (with a prospectus at all times meeting the requirements
of the Securities Act) until the earlier of (A) the date as of which the Rights are no longer exercisable, and (B) the Final Expiration
Date. The Company will also take such action as may be appropriate under, or to ensure compliance with, the securities or "blue
sky" laws of the various states in connection with the exercisability of the Rights. The Company may temporarily suspend,
for a period of time not to exceed ninety (90) days after the date on which it first becomes obligated to file a registration statement
as described above, the exercisability of the Rights in order to prepare and file such registration statement and permit it to
become effective. Upon any such suspension, the Company shall issue a public announcement stating that the exercisability of the
Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect.
Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction if the
requisite qualification in such jurisdiction shall not have been obtained or the exercise thereof shall not be permitted under
applicable law or a registration statement shall not have been declared effective.

 

    	14

     

    

 

(d)              The
Company covenants and agrees that it will use its best efforts to 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 hereof. Upon the occurrence of any events
resulting in an increase in the aggregate number of shares of Preferred Stock (or other equity securities of the Company) issuable
upon exercise of all outstanding Rights above the number then reserved, the Company shall make appropriate increases in the number
of shares so reserved.

 

Section 10            Preferred Shares Record Date.

 

Each person in whose name any certificate for Preferred Shares
is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Preferred Shares
represented thereby on, and such certificate shall be dated, the date upon which the Right Certificate evidencing such Rights was
duly surrendered and payment of the Purchase Price (and any applicable transfer taxes) was made. Prior to 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, without limitation, the right to vote, to receive dividends or other distributions
or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except
as provided herein.

 

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

 

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

 

(a)          

 

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

 

    	15

     

    

 

(ii)          Subject
to Section 23 and Section 24, and further subject to the following paragraph of this subparagraph (ii), in the event any Person
shall become an Acquiring Person, each holder of a Right shall thereafter have a right to receive, upon exercise thereof at a price
equal to the then current Purchase Price multiplied by the number of one one-thousandths of a Preferred Share for which a Right
is then exercisable, in accordance with the terms of this Agreement and in lieu of Preferred Shares, such number of shares of Common
Stock of the Company as shall equal the result obtained by (x) multiplying the then current Purchase Price by the number of one
one-thousandths of a Preferred Share for which a Right is then exercisable and dividing that product by (y) 50% of the then current
per share market price of the Company's Common Stock (determined pursuant to Section 11(d) hereof) on the date such Person became
an Acquiring Person. In the event that any Person shall become an Acquiring Person and the Rights shall then be outstanding, the
Company shall not take any action that would eliminate or diminish the benefits intended to be afforded by the Rights.

 

From and after the occurrence of such an
event, any Rights that are or were beneficially owned or acquired by such Acquiring Person (or any Associate or Affiliate of such
Acquiring Person) on or after the earlier of (x) the date of such event and (y) the Distribution Date shall be void and any holder
of such Rights shall thereafter have no right to exercise such Rights under any provision of this Agreement. No Right Certificate
shall be issued pursuant to Section 3 that represents Rights beneficially owned by an Acquiring Person whose Rights would be void
pursuant to the preceding sentence or any Associate or Affiliate thereof; no Right Certificate shall be issued at any time upon
the transfer of any Rights to an Acquiring Person whose Rights would be void pursuant to the preceding sentence or any Associate
or Affiliate thereof or to any nominee of such Acquiring Person, Associate or Affiliate; and any Right Certificate delivered to
the Rights Agent for transfer to an Acquiring Person whose Rights would be void pursuant to the preceding sentence or any Associate
or Affiliate thereof shall be canceled.

 

    	16

     

    

 

(iii)       In
the event that the number of shares of Common Stock which are authorized by the Company's certificate of incorporation and not
outstanding or subscribed for, or reserved or otherwise committed for issuance for purposes other than upon exercise of the Rights,
are not sufficient to permit the holder of each Right to purchase the number of shares of Common Stock to which he would be entitled
upon the exercise in full of the Rights in accordance with the foregoing subparagraph (ii) of paragraph (a) of this Section 11,
or should the Board of Directors so elect, the Company shall: (A) determine the excess of (1) the value of the Common Stock issuable
upon the exercise of a Right (calculated as provided in the last sentence of this subparagraph (iii)) pursuant to Section 11(a)(ii)
hereof (the "Current Value") over (2) the aggregate Purchase Price that would be payable upon full exercise of a Right
(such excess, the "Spread"), and (B) with respect to each Right, make adequate provision to substitute for such Common
Stock, 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: (1) cash, (2) a reduction in the Purchase Price, (3) Common Stock or other
equity securities of the Company (including, without limitation, shares, or units of shares, of preferred stock which the Board
of Directors of the Company has determined to have the same value as shares of Common Stock (such shares of preferred stock, "Common
Stock Equivalents")), (4) debt securities of the Company, (5) other assets , or any combination of the foregoing, having an
aggregate value equal to the Current Value, where such aggregate value has been determined by the Board of Directors of the Company
based upon the advice of an investment banking firm selected by the Board of Directors of the Company; provided, however, if the
Company shall not have made adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following
the first occurrence of an event triggering the rights to purchase Common Stock described in Section 11(a)(ii) (the "Section
11(a)(ii) Trigger Date"), then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without
requiring payment of the Purchase Price, shares of Common Stock (to the extent available) and then, if necessary, cash, which shares
and cash have an aggregate value equal to the Spread. If the Board of Directors of the Company shall determine in good faith that
it is likely that sufficient additional shares of Common Stock could be authorized for issuance upon exercise in full of the Rights,
the thirty (30) day period set forth above may be extended to the extent necessary, but not more than ninety (90) days after the
Section 11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the authorization of such additional
shares (such period, as it may be extended, the "Substitution Period"). To the extent that the Company determines that
some action need be taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the Company (x) shall provide,
subject to the last paragraph of Section 11(a)(ii) hereof, that such action shall apply uniformly to all outstanding Rights, and
(y) may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization
of additional shares and/or to decide the appropriate form of distribution to be made pursuant to such first sentence and to determine
the value thereof. In the event of any such suspension, the Company shall make a public announcement, and shall deliver to the
Rights Agent a statement, stating that the exercisability of the Rights has been temporarily suspended. At such time as the suspension
is no longer in effect, the Company shall make another public announcement, and deliver to the Rights Agent a statement so stating.
For purposes of this Section 11(a)(iii), the value of the Common Stock shall be the current per share market price (as determined
pursuant to Section 11(d)(i) hereof) of the Common Stock on the Section 11(a)(ii) Trigger Date and the value of any Common Stock
Equivalent shall be deemed to have the same value as the Common Stock on such date.

 

(b)              In
the event that the Company shall fix a record date for the issuance of rights, options or warrants to all holders of Preferred
Shares entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Preferred
Shares (or shares having the same rights, privileges and preferences as the Preferred Shares ("Equivalent Preferred Shares"))
or securities convertible into Preferred Shares 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(d)) 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, the numerator of which shall be the number of Preferred Shares outstanding on such record
date plus the number of Preferred Shares which the aggregate offering price of the total number of Preferred Shares and/or Equivalent
Preferred Shares so to be offered (and/or the aggregate initial conversion price of the convertible securities so to be offered)
would purchase at such current market price and the denominator of which shall be the number of Preferred Shares outstanding on
such record date plus the number of additional Preferred Shares and/or Equivalent Preferred Shares to be offered for subscription
or purchase (or into which the convertible securities so to be offered are initially convertible); provided, however, that in no
event shall the consideration to be paid upon the exercise of one Right be less than the aggregate par value of the shares of capital
stock of the Company issuable upon exercise of one Right. In case such subscription price may be paid in a consideration part or
all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board
of Directors of the Company, 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; and in the event that such rights, options or warrants are not
so issued, the Purchase Price shall be adjusted to be the Purchase Price which would then be in effect if such record date had
not been fixed.

 

    	17

     

    

 

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

 

(d)          

 

(i)           For
the purpose of any computation hereunder, the "current per share market price" of any security (a "Security"
for the purpose of this Section 11(d)(i)) on any date shall be deemed to be the average of the daily closing prices per share of
such Security for the thirty (30) consecutive Trading Days (as such term is hereinafter defined) immediately prior to such date;
provided, however, that in the event that the current per share market price of the Security is determined during a period 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 securities convertible into such shares, or (B) any subdivision, combination or reclassification of such Security and prior
to the expiration of thirty (30) Trading Days after the ex-dividend date for such dividend or distribution, or the record date
for such subdivision, combination or reclassification, then, and in each such case, the current per share market price shall be
appropriately adjusted by the Board of Directors to take into account ex-dividend trading. The closing price for each day shall
be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked
prices, regular way, in either case, as reported in the principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on the New York Stock Exchange or, if the Security is not listed or admitted to trading on the New
York Stock Exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed or
admitted to trading on the Nasdaq or, if the Security is not listed or admitted to trading on the Nasdaq, as reported in the principal
consolidated transaction reporting system with respect to securities listed on the principal national securities exchange on which
the Security is listed or admitted to trading or, if the Security is not listed or admitted to trading on any national securities
exchange, the last sale price or, if such last sale price is not reported, the average of the high bid and low asked prices in
the over-the-counter market, as reported by Nasdaq or such other system then in use, or, if on any such date the Security is not
quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making
a market in the Security selected by the Board of Directors of the Company. If on any such date no market maker is making a market
in the Security, the fair value of such shares on such date as determined in good faith by the Board of Directors of the Company
shall be used. The term "Trading Day" shall mean a day on which the principal national securities exchange on which the
Security is listed or admitted to trading is open for the transaction of business, or, if the Security is not listed or admitted
to trading on any national securities exchange, a Business Day.

 

    	18

     

    

 

(ii)          For
the purpose of any computation hereunder, the "current per share market price" of the Preferred Shares shall be determined
in accordance with the method set forth in Section 11(d)(i). If the Preferred Shares are not publicly traded, 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 Stock as determined pursuant to Section 11(d)(i) (appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof), multiplied by 1,000. If neither the shares of Common Stock nor the Preferred Shares
are publicly held or so listed or traded, "current per share market price" shall mean the fair value per share as determined
in good faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights
Agent.

 

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

 

(f)               If
as a result of an adjustment made pursuant to Section 11(a) hereof, 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 contained in Section 11(a), (b),(c), (h), (i), (j), (k),
(l), (m) and (n) 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.

 

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

 

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

 

    	19

     

    

 

(i)               The
Company may elect on or after the date of any adjustment of the Purchase Price to adjust the number of Rights in substitution for
any adjustment in the number of one one-thousandths of a Preferred Share purchasable upon the exercise of a Right. Each of the
Rights outstanding after such adjustment of the number of Rights shall be exercisable for the number of one one-thousandths of
a Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such
adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one 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 of its election to adjust the
number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be
made. This record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Right Certificates
have been distributed, shall be at least ten (10) days later than 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(i), the Company shall, as promptly as
practicable, cause to be distributed to holders of record of Right Certificates on such record date Right Certificates evidencing,
subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or,
at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Right
Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new
Right Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Right Certificates
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.

 

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

 

(k)                  Before
taking any action that would cause an adjustment reducing the Purchase Price below one one-thousandth of 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.

 

(l)                   In
any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date
for a specified event, the Company may elect to defer until the occurrence of such event the issuing to the holder of any Right
exercised after such record date of the 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 such adjustment.

 

(m)                 Anything
in this Section 11 to the contrary notwithstanding, the Company shall be entitled to make such reductions in the Purchase Price,
in addition to those adjustments expressly required by this Section 11, as and to the extent that 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 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 hereinabove in Section 11(b), hereafter made by the Company
to holders of its Preferred Shares shall not be taxable to such stockholders.

 

    	20

     

    

 

(n)                  In
the event that the Company shall at any time after the date of this Agreement (A) declare a dividend on the Common Stock payable
in Common Stock shares, (B) subdivide the outstanding Common Stock, (C) combine the outstanding Common Stock (by reverse stock
split or otherwise) into a smaller number of Common Stock shares, or (D) issue any shares of its capital stock in a reclassification
of the Common Stock (including any such reclassification in connection with a consolidation or merger in which the Company is the
continuing or surviving corporation), then, in each such event: (1) each share of Common Stock (or shares of capital stock issued
in such reclassification of the Common Stock) outstanding immediately following such time shall have associated with it the number
of Rights as were associated with one share of Common Stock immediately prior to the occurrence of the event described in clauses
(A)-(D) above; (2) 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 shall be adjusted so that the Purchase Price thereafter shall equal the result obtained
by multiplying the Purchase Price in effect immediately prior to such time by a fraction, the numerator of which shall be the total
number of shares of Common Stock outstanding immediately prior to the event described in clauses (A)-(D) above, and the denominator
of which shall be the total number of shares of Common Stock outstanding immediately after such event; 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 such Right; and (3) the number of one one-thousandth of a Preferred Share
(or shares of such other capital stock) issuable upon the exercise of each Right outstanding after such event shall equal the number
of one one-thousandth of a Preferred Share (or shares of such other capital stock) as were issuable with respect to one Right immediately
prior to such event. Each share of Common Stock that shall become outstanding after an adjustment has been made pursuant to this
Section 11(n) shall have associated with it the number of Rights, exercisable at the Purchase Price and for the number of one one-thousandth
of a Preferred Share (or shares of such other capital stock) as one share of Common Stock has associated with it immediately following
the adjustment made pursuant to this Section 11(n). If an event occurs which would require an adjustment under both this Section
11(n) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(n) shall be in addition to, and shall be made
prior to, any adjustment required pursuant to Section 11(a)(ii) hereof.

 

Section 12            Certificate of
Adjustment.

 

Whenever an adjustment is made as provided in Section 11 or
13 hereof, the Company shall promptly (a) prepare a certificate setting forth such adjustment, and a brief statement of the facts
accounting for such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Stock or the Preferred
Shares a copy of such certificate and (c) mail a brief summary thereof to each holder of a Right Certificate in accordance with
Section 25 hereof. Notwithstanding the foregoing sentence, the failure by the Company to make such certification or give such notice
shall not affect the validity of or the force or effect of the requirement for such adjustment. The Rights Agent shall be fully
protected in relying on any such certificate and on any adjustment therein contained.

 

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

 

In the event that, at any time after a Person becomes an Acquiring
Person, directly or indirectly, (i) the Company shall consolidate with, or merge with and into, any other Person, (ii) any Person
shall consolidate with the Company, or merge with and into the Company and the Company shall be the continuing or surviving corporation
of such merger and, in connection with such merger, all or part of the shares of Common Stock shall 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 shall sell
or otherwise transfer (or one or more of its Subsidiaries shall 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, and in each such case, proper
provision shall be made so that (A) each holder of a Right (except as otherwise provided herein) shall thereafter have the right
to receive, upon the exercise thereof at a price equal to the then current Purchase Price multiplied by the number of one one-thousandths
of a Preferred Share for which a Right is then exercisable, in accordance with the terms of this Agreement and in lieu of Preferred
Shares, such number of shares of Common Stock of such other Person (including the Company as successor thereto or as the surviving
corporation) as shall equal the result obtained by (x) multiplying the then current Purchase Price by the number of one one-thousandths
of a Preferred Share for which a Right is then exercisable and dividing that product by (y) 50% of the then current per share market
price of the Common Stock of such other Person (determined pursuant to Section 11(d) hereof) on the date of consummation of such
consolidation, merger, sale or transfer; (B) the issuer of such Common Stock 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 such steps
(including, but not limited to, the reservation of a sufficient number of its shares of Common Stock in accordance with Section
9 hereof) in connection with such consummation as may be necessary to assure that the provisions hereof shall thereafter be applicable,
as nearly as reasonably may be, in relation to the Common Stock thereafter deliverable upon the exercise of the Rights. The Company
covenants and agrees that it shall not consummate any such consolidation merger, sale or transfer unless prior thereto the Company
and such issuer shall have executed and delivered to the Rights Agent a supplemental agreement so providing. 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 similarly apply to successive mergers or consolidations or sales or other transfers. For purposes hereof, 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).

 

Section 14            Fractional Rights
and Fractional Shares.

 

(a)              The
Company shall not be required to issue fractions of Rights or to distribute Right Certificates which evidence fractional Rights.
In lieu of such fractional Rights, there shall be paid to the registered holders of the Right Certificates with regard to which
such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the current market value of
a whole Right. For the purposes of this Section 14(a), the current market value of a whole Right shall be the closing price of
the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable.
The closing price for such Trading Day shall be determined in accordance with the method set forth in Section 11(d)(i).

 

    	22

     

    

 

(b)              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 depository
receipts, pursuant to an appropriate agreement between the Company and a depository selected by it; provided, that such agreement
shall provide that the holders of such depository receipts shall have all the rights, privileges and preferences to which they
are entitled as beneficial owners of the Preferred Shares represented by such depository 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(b), the current
market value of a Preferred Share shall be the closing price of a Preferred Share (as determined pursuant to Section 11(d) hereof)
for the Trading Day immediately prior to the date of such exercise

 

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

 

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

 

Section 16      Agreement of Right Holders.

 

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

 

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

 

(b)                 after
the Distribution Date, the Right Certificates are transferable only on the registry books maintained by the Rights Agent if surrendered
at the principal office of the Rights Agent, duly endorsed or accompanied by a proper instrument of transfer with a completed form
of certification; and

 

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

 

    	23

     

    

 

Section 17            Right Certificate
Holder Not Deemed a Stockholder.

 

No holder, as such, of any Right Certificate shall be entitled
to vote, receive dividends or be deemed for any purpose the holder of the Preferred Shares or any other securities of the Company
which may at any time be issuable 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,
or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting stockholders
(except as provided in Section 25 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by such Right Certificate shall have been exercised in accordance with the provisions hereof.

 

Section 18            Concerning
the Rights Agent.

 

(a)              The
Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration
and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees to indemnify
the Rights Agent for, and to hold it harmless against, any loss, liability, or expense, incurred without gross negligence, bad
faith or willful misconduct on the part of the Rights Agent, for anything done or omitted by the Rights Agent in connection with
the acceptance and administration of this Agreement, including the costs and expenses of defending against any claim or liability
in connection therewith.

 

(b)              The
Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in
connection with its administration of this Agreement in reliance upon any Right Certificate or certificate for Preferred Shares
or for other securities of the Company, instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter,
notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed
and, where necessary, verified or acknowledged, by the proper Person or Persons.

 

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

 

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

 

    	24

     

    

 

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

 

Section 20            Duties of Rights
Agent.

 

The Rights Agent undertakes the duties and obligations 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 those duties and obligations upon the following terms and conditions, by all of which the Company and
the holders of Right Certificates, by their acceptance thereof, shall be bound:

 

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

 

(b)              Whenever
in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter
(including, but not limited to, the identity of any Acquiring Person, the determination of the current market price of any security
and the existence of a Qualifying Offer) be proved or established by the Company prior to taking or suffering any action hereunder,
such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a certificate signed by any one of the Chairman of the Board, the President, a Vice President, the Treasurer
or the Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full authorization to the Rights
Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate.

 

(c)              The
Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct.

 

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

 

(e)              The
Rights Agent shall not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Right Certificate (except
its countersignature thereof); nor shall it be responsible for any breach by the Company of any covenant or condition contained
in this Agreement or in any Right Certificate; nor shall it be responsible for any adjustment required under the provisions of
Section 11 or 13 hereof or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence
of facts that would require any such adjustment (except with respect to the exercise of Rights evidenced by Right Certificates
after actual notice of any such adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty
as to the authorization or reservation of any shares of Preferred Shares 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 nonassessable.

 

    	25

     

    

 

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

 

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

 

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

 

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

 

Section 21            Change of
Rights Agent.

 

The Rights Agent or any successor Rights Agent may resign and
be discharged from its duties under this Agreement upon thirty (30) days' notice in writing mailed to the Company and to each transfer
agent of the Common Stock and the Preferred Shares by registered or certified mail, and to the holders of the Right Certificates
by first-class mail. The Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days' notice in writing,
mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Stock and the
Preferred Shares by registered or certified mail, and to the holders of the Right Certificates by first-class mail. 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 (30) days after giving notice of such removal
or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by
the holder of a Right Certificate (who shall, with such notice, submit his Right Certificate for inspection by the Company), then
the registered holder of any Right Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights
Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be a corporation 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 corporate trust or stockholder services powers and is subject to supervision or examination by federal or
state authority and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $100 million.
After appointment, the successor Rights Agent shall be vested with the same powers, rights, duties and responsibilities as if it
had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any property at the time held by it hereunder, and execute and deliver any further assurance, conveyance,
act or deed necessary for the purpose. Not later than the effective date of any such appointment the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Stock and the Preferred Shares, and
mail a notice thereof in writing to the registered holders of the Right Certificates. Failure to give any notice provided for in
this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the
Rights Agent or the appointment of the successor Rights Agent, as the case may be.

 

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Section 22            Issuance of New
Right Certificates.

 

Notwithstanding any of the provisions of this Agreement or of
the Rights to the contrary, the Company may, at its option, issue new Right Certificates evidencing Rights in such form as may
be approved by 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 Rights made in accordance with the provisions of this Agreement.
In addition, in connection with the issuance or sale of shares of Common Stock following the Distribution Date and prior to the
Final Expiration Date, the Company (a) shall, with respect to shares of Common Stock so issued or sold pursuant to the exercise
of stock options or under any employee benefit plan or arrangement or upon the exercise, conversion or exchange of securities of
the Company currently outstanding or issued at any time in the future by the Company and (b) may, in any other case, if deemed
necessary or appropriate by the Board of Directors of the Company, issue Rights Certificates representing the appropriate number
of Rights in connection with such issuance or sale; provided, however, that (i) no such Rights Certificate shall be issued and
this sentence shall be null and void ab initio if, and to the extent that, such issuance or this sentence would create a significant
risk of or result in material adverse tax consequences to the Company or the Person to whom such Rights Certificate would be issued
or would create a significant risk of or result in such options' or employee plans' or arrangements' failing to qualify for otherwise
available special tax treatment and (ii) no such Rights Certificate shall be issued if, and to the extent that, appropriate adjustment
shall otherwise have been made in lieu of the issuance thereof.

 

Section 23            Redemption.

 

(a)             The
Board of Directors of the Company may, at its option, at any time prior to the earlier of (i) the Close of Business on the tenth
calendar date following the Shares Acquisition Date, or (ii) the Final Expiration Date, redeem all but not less than all of the
then outstanding Rights at a redemption price of $0.001 per Right, appropriately adjusted to reflect any stock split, stock dividend
or similar transaction occurring after the date hereof (such redemption price being hereinafter referred to as 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.

 

    	27

     

    

 

(b)              In
the event the Company receives a Qualifying Offer and the Board has not redeemed the outstanding Rights or exempted such offer
from the terms of this Agreement or called a special meeting of stockholders by the end of the ninetieth (90th) Business Day following
the commencement (or, if later, the first existence) of such Qualifying Offer, for the purpose of voting on whether or not to exempt
such Qualifying Offer from the terms of this Agreement, holders of record (or their duly authorized proxy) of at least 10% of the
outstanding Common Stock of the Company (excluding Common Stock Beneficially Owned by the offeror and the offeror’s Affiliates
and Associates) may submit to the Board, not earlier than ninety (90) Business Days nor later than one hundred twenty (120) Business
Days following the commencement (or, if later, the first existence) of such Qualifying Offer, a written demand complying with the
terms of this Section 23(b) (the “Special Meeting Demand”) directing the Board to submit to a vote of stockholders
at a special meeting of the stockholders of the Company (a “Special Meeting”) a resolution exempting such Qualifying
Offer from the provisions of this Agreement (the “Qualifying Offer Resolution”). For purposes of a Special Meeting
Demand, the record date for determining holders of record eligible to make a Special Meeting Demand shall be the ninetieth (90th)
Business Day following commencement (or, if later, the first existence) of a Qualifying Offer. The Board shall take such actions
as are necessary or desirable to cause the Qualifying Offer Resolution to be so submitted to a vote of stockholders at a Special
Meeting to be convened within ninety (90) Business Days following the Special Meeting Demand (the “Special Meeting Period”);
provided, however, that if the Company at any time during the Special Meeting Period and prior to a vote on the Qualifying Offer
Resolution enters into a Definitive Acquisition Agreement, the Special Meeting Period may be extended by the Board (and any special
meeting called in connection therewith may be cancelled) if the Qualifying Offer Resolution will be separately submitted to a vote
at the same meeting as the Definitive Acquisition Agreement. A Special Meeting Demand must be delivered to the Secretary of the
Company at the principal executive offices of the Company and must set forth as to the stockholders of record making the request
(x) the names and addresses of such stockholders, as they appear on the Company’s books and records, (y) the number of the
Common Stock of the Company which are owned of record by each of such stockholders, and (z) in the case of the Common Stock of
the Company that are Beneficially Owned by another Person, an executed certification by the holder of record that such holder has
executed such Special Meeting Demand only after obtaining instructions to do so from such Beneficial Owner and attaching evidence
thereof. Subject to the requirements of applicable law, the Board may take a position in favor of or opposed to the adoption of
the Qualifying Offer Resolution, or no position with respect to the Qualifying Offer Resolution, as it determines to be appropriate
in the exercise of its duties. In the event that the Qualifying Offer continues to be a Qualifying Offer and either (i) the Special
Meeting is not convened on or prior to the last day of the Special Meeting Period (the “Outside Meeting Date”), or
(ii) if, at the Special Meeting at which a quorum is present, a majority of the outstanding Common Stock of the Company as of the
record date for the Special Meeting selected by the Board shall vote in favor of the Qualifying Offer Resolution, then the Qualifying
Offer shall be deemed exempt from the application of this Agreement to such Qualifying Offer so long as it remains a Qualifying
Offer, such exemption to be effective on the Close of Business on the tenth (10th) Business Day after (A) the Outside Meeting Date
or (B) the date on which the results of the vote on the Qualifying Offer Resolution at the Special Meeting are certified as official
by the appointed inspectors of election for the Special Meeting, as the case may be (the “Exemption Date”). Notwithstanding
anything herein to the contrary, no action or vote, including action by written consent, by stockholders not in compliance with
the provisions of this Section 23(b) shall serve to exempt any offer from the terms of this Agreement. The Company shall promptly
notify the Rights Agent in writing upon the occurrence of the Exemption Date and, if such notification is given orally, the Company
shall confirm same in writing on or prior to the Business Day next following. Until such notice is received by the Rights Agent,
the Rights Agent may presume conclusively for all purposes that the Exemption Date has not occurred.

 

(c)                  Immediately
upon the time of the effectiveness of the redemption of the Rights pursuant to paragraph (a) of this Section 23 or such earlier
time as may be determined by the Board of Directors of the Company in the action ordering such redemption (although not earlier
than the time of such action) (such time 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; provided, however, that the failure to
give, or any defect in, any such notice shall not affect the validity of such redemption. Within ten (10) days after such action
of the Board of Directors ordering the redemption of the Rights pursuant to paragraph (a), the Company shall mail a notice of redemption
to all the holders of the then outstanding Rights at their last addresses as they appear upon the registry books of the Rights
Agent or, prior to the Distribution Date, on the registry books of the transfer agent for the Common Stock. Any notice which is
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 hereof, other than in connection
with the purchase of Common Stock.

 

    	28

     

    

 

(d)                  Immediately
upon the Close of Business on the Exemption Date, if any, without any further action and without any notice, the right to exercise
the Rights with respect to the Qualifying Offer will terminate.

 

Section 24             Exchange.

 

(a)                  The
Board may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding
and exercisable Rights (which shall not include Rights that have become void pursuant to the provisions of Section 11(a)(ii) hereof)
for Common Stock at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect any adjustment in the number
of Rights pursuant to Section 11(i) (such exchange ratio being hereinafter referred to as the “Exchange Ratio”). Notwithstanding
the foregoing, the Board shall not be empowered to effect such exchange at any time after any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or any such Subsidiary, or any entity holding Common Stock
for or pursuant to the terms of any such plan), together with all Affiliates and Associates of such Person, becomes the Beneficial
Owner of 50% or more of the Common Stock of the Company then outstanding.

 

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

 

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

 

    	29

     

    

 

(d)              The
Company shall not be required to issue fractions of Common Stock or to distribute certificates which evidence fractional Common
Stock. In lieu of such fractional Common Stock, the Company shall pay to the registered holders of the Right Certificates with
regard to which such fractional Common Stock would otherwise be issuable an amount in cash equal to the same fraction of the current
market value of a whole Common Share. For the purposes of this paragraph (d), the current 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(d)(i) hereof) for the
Trading Day immediately prior to the date of exchange pursuant to this Section 24.

 

Section 25            Notice of Certain
Events.

 

(a)              In
case 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, 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 Stock payable in shares of Common Stock or to effect a subdivision, combination
or consolidation of the Common Stock (by reclassification or otherwise than by payment of dividends in shares of Common Stock),
then, in each such case, the Company shall give to each holder of a Right Certificate, in accordance with Section 26 hereof, a
notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, or distribution of
rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution,
or winding up is to take place and the date of participation therein by the holders of the Common Stock and/or Preferred Shares,
if any such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above
at least 10 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 10 days prior to the date of the taking of such proposed action or the date of participation
therein by the holders of the Common Stock and/or Preferred Shares, whichever shall be the earlier.

 

(b)              In
case any event set forth in Section 11(a)(ii) hereof shall occur, then the Company shall as soon as practicable thereafter give
to each holder of a Right Certificate, in accordance with Section 26 hereof, a notice of the occurrence of such event, which notice
shall describe such event and the consequences of such event to holders of Rights under Section 11(a)(ii) hereof.

 

Section 26            Notices.

 

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

 

    	30

     

    

 

 Innodata Inc.

 55 Challenger Road

 Ridgefield Park, NJ 07660

Attention:
Office of the General Counsel

 

Copy
to:

 

Folger Law Firm PLLC

 Attention: Jeffrey S. Folger, Esq.

 151 W. 46th Street, 4th floor

 New York, NY 10036-8512

 

Subject to the provisions of Section 21 hereof, any notice or
demand authorized by this Agreement to be given or made by the Company or by the holder of any Right Certificate to or on the Rights
Agent shall be sufficiently given or made if sent by first-class mail, postage prepaid, 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 Manager

 

Notices or demands authorized by this Agreement
to be given or made by the Company or the Rights Agent to the holder of any Right Certificate shall be sufficiently given or made
if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the registry books
of the Company.

 

Section 27        Supplements
and Amendments.

 

The Company may from time to time, and the Rights Agent shall,
if the Company so directs, supplement or amend this Agreement without the approval of any holders of Right Certificates in order
to cure any ambiguity, to correct or 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). Any supplement or amendment
authorized by this Section 27 will be evidenced by a writing signed by the Company and the Rights Agent. Upon the delivery of a
certificate from an officer of the Company which states that the proposed supplement or amendment is in compliance with the terms
of this Section 27, the Rights Agent will execute such supplement or amendment.

 

Section 28       Successors.

 

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

 

Section 29       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 (and, prior to the
Distribution Date, the Common Stock) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall
be for the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the Right Certificates (and,
prior to the Distribution Date, the Common Stock).

 

    	31

     

    

 

Section 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.

 

Section 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.

 

Section 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.

 

Section 33            Descriptive Headings.

 

Descriptive headings of the several Sections of this Agreement
are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

 

Section 34            Administration.

 

The Board of Directors of the Company 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, the 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.

 

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

 

Innodata Inc.

 

	By:	/s/Amy R. Agress	 
	 	Name: Amy R. Agress	 
	 	Title: SVP, General Counsel and Secretary	 
	 	 
	American Stock Transfer & Trust Company, LLC	 
	 	 
	By:	/s/ Michael A. Nespoli	 
	 	Name: Michael A. Nespoli	 
	 	Title: Executive Director	 

 

    	32

     

    

 

EXHIBIT A

 

CERTIFICATE OF DESIGNATION OF

SERIES C PARTICIPATING PREFERRED STOCK

OF

INNODATA INC.

————————————

Pursuant to Section 151 of the

General Corporation Law of the State of
Delaware

————————————

 

Innodata Inc., a Delaware corporation (the "Corporation"),
certifies that pursuant to the authority contained in its Restated Certificate of Incorporation, and in accordance with the provisions
of Section 151 of the General Corporation Law of the State of Delaware, the Board of Directors of the Company duly approved and
adopted the following resolution, which resolution remains in full force and effect on the date hereof:

 

RESOLVED, that pursuant to the authority vested in the Board
of Directors by the Certificate of Incorporation, the Board of Directors does hereby designate, create, authorize and provide for
the issue of a series of preferred stock having a par value of $0.01 per share, which shall be designated as Series C Participating
Preferred Stock (the "Series C Preferred Stock"), consisting of 100,000 shares having the following voting powers, preferences
and relative, participating, optional and other special rights, and qualifications, limitations and restrictions:

 

1.          Designation
and Amount. There is hereby created a series of the Preferred Stock of the Corporation. The shares of this series shall be designated
as "Series C Participating Preferred Stock" (the "Series C Preferred Stock"). The number of shares constituting
the Series C Preferred Stock shall be One Hundred Thousand (100,000). 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 C 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
C Preferred Stock.

 

2.          Proportional
Adjustment. In the event that the Corporation shall at any time after the issuance of any share or shares of Series C Preferred
Stock (i) declare any dividend on Common Stock of the Corporation ("Common Stock") payable in shares of Common Stock,
(ii) subdivide the outstanding Common Stock or (iii) combine the outstanding Common Stock into a smaller number of shares, then
in each such case the Corporation shall simultaneously effect a proportional adjustment to the number of outstanding shares of
Series C Preferred Stock.

 

3.          Dividends
and Distributions.

 

3.1.  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 C Preferred Stock with respect to dividends, the holders of shares of Series C 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 being referred to herein as
a "Quarterly Dividend Payment Date"), commencing on the first Quarterly Dividend Payment Date after the first issuance
of a share or fraction of a share of Series C Preferred Stock, in an amount (if any) per share (rounded to the nearest cent), equal
to 1,000 times the aggregate per share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in
kind) of all non-cash dividends or other distributions, other than a dividend payable in shares of Common Stock or a subdivision
of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock since the immediately
preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance
of any share or fraction of a share of Series C Preferred Stock.

 

    	A-1

     

    

 

3.2.  The
Corporation shall declare a dividend or distribution on the Series C Preferred Stock as provided in subsection 3.1 above immediately
after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock).

 

3.3.  Dividends
due pursuant to subsection 3.1 shall begin to accrue on outstanding shares of Series C Preferred Stock from the Quarterly Dividend
Payment Date next preceding the date of issue of such shares of Series C Preferred Stock, unless the date of issue of such shares
is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to
accrue from the date of the first issuance of any share or fraction of a share of Series C Preferred, or unless the date of issue
is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series C
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 from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest.
Dividends paid on the shares of Series C 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 C Preferred Stock entitled to
receive payment of a dividend or distribution declared thereon, which record date shall be no more than 30 days prior to the date
fixed for the payment thereof.

 

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

 

4.1.  Each
share of Series C Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders
of the Corporation.

 

4.2.  Except
as otherwise provided herein or by law, the holders of shares of Series C Preferred Stock and the holders of shares of Common Stock
shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation.

 

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

 

    	A-2

     

    

 

5.          Certain
Restrictions.

 

5.1.  The
Corporation shall not declare any dividend on, make any distribution on, or redeem or purchase or otherwise acquire for consideration
any shares of Common Stock after the first issuance of a share or fraction of a share of Series C Preferred Stock unless concurrently
therewith it shall declare a dividend on the Series C Preferred Stock as required by Section 3 hereof.

 

5.2.  Whenever
quarterly dividends or other dividends or distributions payable on the Series C Preferred Stock as provided in Section 3 are in
arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series
C Preferred Stock outstanding shall have been paid in full, the Corporation shall not:

 

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

 

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

 

(iii) redeem or purchase or otherwise
acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation, dissolution or winding
up) with the Series C Preferred Stock;

 

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

 

5.3.  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 subsection 5.2, purchase or otherwise acquire such shares at such
time and in such manner.

 

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

 

7.          Liquidation,
Dissolution or Winding Up. Upon any liquidation, dissolution or winding up of the Corporation, the holders of shares of Series
C Preferred Stock shall be entitled to receive an aggregate amount per share equal to 1,000 times 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 on such shares of Series
Preferred Stock.

 

    	A-3

     

    

 

8.          Consolidation,
Merger, etc. In case 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 the shares of Series C Preferred Stock shall at the same time be similarly exchanged or changed in an amount per share
equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may
be, into which or for which each share of Common Stock is changed or exchanged.

 

9.          
No Redemption. The shares of Series C Preferred Stock shall not be redeemable.

 

10.         Ranking.
The Series C Preferred Stock shall rank junior to all other series of the Corporation's Preferred Stock as to the payment of dividends
and the distribution of assets, unless the terms of any such series shall provide otherwise.

 

11.         Amendment.
The Certificate of Incorporation of the Corporation shall not be further amended in any manner which would materially alter or
change the powers, preference or special rights of the Series C Preferred Stock so as to affect them adversely without the affirmative
vote of the holders of a majority of the outstanding shares of Series C Preferred Stock, voting separately as a series.

 

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

 

       In Witness Whereof, the undersigned has
executed this Certificate as of December 30, 2002.

 

	Innodata Corporation	 
	 	 	 
	By:	/s/ Jack Abuhoff	 
	Name:	Jack Abuhoff	 
	Title:	Chief Executive Officer and President	 

 

    	A-4

     

    

 

 

EXHIBIT B

Form of Right Certificate

 

	Certificate No. R- _______	 	Rights

 

NOT EXERCISABLE AFTER THE
FINAL EXPIRATION DATE (AS DEFINED IN THE RIGHTS AGREEMENT) OR EARLIER IF REDEMPTION, EXCHANGE OR TERMINATION OCCURS. THE RIGHTS
ARE SUBJECT TO REDEMPTION AT $0.001 PER RIGHT AND TO EXCHANGE OR TERMINATION 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

 

Innodata Inc.

 

This certifies that _______________________, or registered assigns,
is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of February 1, 2019 (the "Rights Agreement"), between Innodata
Inc., a Delaware corporation (the "Company"), and American Stock Transfer & Trust Company, LLC (the "Rights
Agent"), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights Agreement)
and prior to 5:00 P.M., New York time, on January 31, 2022 (or earlier under certain circumstances set forth in the Rights Agreement),
at the principal office of the Rights Agent, or at the office of its successor as Rights Agent, one one-thousandth of a fully paid
non-assessable share of Series C Participating Preferred Stock, par value $0.01 per share (the "Preferred Shares"), of
the Company, at a purchase price of $7.00 per one one-thousandth of a Preferred Share (the "Purchase Price"), upon presentation
and surrender of this Right Certificate with the certification and the Form of Election to Purchase duly executed. 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 1, 2019,
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 an event described in Section
11(a)(ii) of the Rights Agreement, if the Rights evidenced by this Right Certificate are or were at any time on or after the earlier
of (x) the date of such event and (y) the Distribution Date (as such term is defined in the Rights Agreement) beneficially owned
or acquired by an Acquiring Person or an Associate or Affiliate of an Acquiring Person (as such terms are defined in the Rights
Agreement), such Rights shall become void, and any holder of such Rights shall thereafter have no right to exercise such Rights.

 

    	B-1

     

    

 

This Right Certificate is subject to all of the terms, provisions
and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and
made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of
rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates.
Copies of the Rights Agreement are on file at the principal executive offices of the Company and the offices of the Rights Agent.
This Right Certificate, with or without other Right Certificates, upon surrender at the principal office of the Rights Agent, 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 may be redeemed by the Company at a redemption price of $0.001 per Right or (ii)
may be exchanged in whole or in part for Preferred Shares or shares of the Company’s Common Stock, par value $0.01 per share.
Also subject to the provisions of the Rights Agreement, if the Company receives a Qualifying Offer (as defined in the Rights Agreement,
which includes certain all-cash fully financed tender offers or exchange offers offering shares of the offeror’s common stock,
or a combination thereof, for all of the outstanding shares of the Company’s common stock), holders of 10% of the Company’s
outstanding shares of common stock (excluding shares held by the offeror and its Affiliates and Associates (in each case, as defined
in the Rights Agreement) may direct the board of directors of the Company to call a special meeting of stockholders
to consider a resolution exempting such Qualifying Offer from the provisions of the Rights Agreement.

 

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

 

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

 

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

 

    	B-2

     

    

 

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

 

Dated as of:

 

Attest:

 

	By:	 	 	Innodata Inc.
	Name:	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	Countersigned:	 	 	 	 
	 	 	 	 	 
	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC	 
	By:	 	 	 	 
	Name:	 	 	 	 
	Title:	 	 	 	 

 

    	B-3

     

    

 

Form of Reverse Side of Right Certificate

 

FORM OF ASSIGNMENT

 

(To be executed by the registered holder
if such

holder desires to transfer the Right Certificate.)

 

FOR VALUE RECEIVED _________________________________ hereby
sells, assigns and transfers unto

__________________________________________

(Please print name
and address of transferee)

 

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

 

Dated: _____________ __, ____

 

		 	

		 	Signature

 

Signature Guaranteed:

 

Signatures must be guaranteed by an eligible guarantor institution
(a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion
program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934.

 

CERTIFICATION

 

The undersigned hereby certifies that the Rights evidenced by
this Right Certificate are not, and to the knowledge of the undersigned have never been, beneficially owned by an Acquiring Person
or an Affiliate or Associate thereof (as defined in the Rights Agreement).

 

	 	 
	 	Signature

 

Form of Reverse Side of Right Certificate-
continued

 

    	B-4

     

    

 

 

FORM OF ELECTION TO PURCHASE

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

To: Innodata Inc.

 

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

 

_______________________________________________________________

(Please
insert social security or other identifying number)

_______________________________________________________________________
(Please print name and address)

 

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

_______________________________________________________________

(Please insert social security or other identifying number)

 

_______________________________________________________________________
(Please print name and address)

 

Dated: _____________ ___,

 

	 	 	 
	 	Signature	 

 

Signature Guaranteed:

Signatures must be guaranteed by an eligible guarantor institution
(a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion
program) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934.

 

CERTIFICATION

 

The undersigned hereby certifies that the Rights evidenced by
this Right Certificate are not, and to the knowledge of the undersigned have never been, beneficially owned by an Acquiring Person
or an Affiliate or Associate thereof (as defined in the Rights Agreement).

 

NOTICE

 

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

 

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

 

    	B-5

     

    

 

EXHIBIT C

 

Summary of Rights to Purchase Preferred
Stock

 

Introduction

 

On February 1, 2019, the Board of Directors of our Company,
Innodata Inc., a Delaware corporation, 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 dividend is payable on February 15, 2019 to the stockholders
of record as of the Close of Business on February 15, 2019. The Rights are governed by a Rights Agreement dated as of February
1, 2019 (the "Rights Agreement"), that we entered into with American Stock Transfer & Trust Company, LLC, as the
Rights Agent.

 

Our Board has adopted this Rights Agreement to protect stockholders
from coercive or otherwise unfair takeover tactics. In general terms, it works by imposing a significant penalty upon any person
or group that acquires 20% or more of our outstanding common stock without the approval of our Board. The Rights Agreement should
not interfere with any merger or other business combination approved by our Board.

 

We have provided below a summary description of certain terms
of the Rights Agreement. Please note this summary is not complete, and should be read together with the entire Rights Agreement.
A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as an exhibit to a Report on Form 8-K
dated February 4, 2019. A copy of the Rights Agreement is available free of charge from our Company. If there is a conflict between
the summary below and the Rights Agreement, the Rights Agreement will govern.

 

THE RIGHTS

 

Our Board authorized the issuance of a Right with respect to
each outstanding share of common stock on February 15, 2019. The Rights will initially trade with, and will be inseparable from,
the common stock.

 

Until the Distribution Date described below, the Rights will
be evidenced only by certificates that represent shares of common stock. New Rights will accompany any new shares of common stock
we issue after February 15, 2019 until the Distribution Date described below.

 

PURCHASE PRICE

 

Each Right will allow its holder to purchase from our Company
one one-thousandth of a share of Series C Participating Preferred Stock ("Preferred Stock") for $7.00 once the Rights
become exercisable. This portion of a share of Preferred Stock will give the stockholder approximately the same dividend, voting,
and liquidation rights as would one share of common stock. Prior to exercise, the Right does not give its holder any dividend,
voting, or liquidation rights as a stockholder of our Company.

 

EXERCISABILITY

 

The Rights will not be exercisable until:

 

10 days after the public announcement
that a person or group has become an "Acquiring Person" by obtaining beneficial ownership of 20% or more of our outstanding
common stock, or, if earlier,

 

10 business days (or a later date
determined by our Board before any person or group becomes an Acquiring Person) after a person or group begins a tender or exchange
offer which, if completed, would result in that person or group becoming an Acquiring Person.

 

    	C-1

     

    

 

For purposes of the Rights Agreement,
beneficial ownership is defined to include the ownership of derivative securities.

 

We refer to the date when the Rights become exercisable as the
"Distribution Date." Until that date, the common stock certificates will also evidence the Rights, and any transfer of
shares of common stock will constitute a transfer of Rights. After that date, the Rights will separate from the common stock and
be evidenced by Rights certificates that we will mail to all eligible holders of common stock.

 

Any Rights held by an Acquiring Person are void and may not
be exercised.

 

CONSEQUENCES OF A PERSON OR GROUP BECOMING AN ACQUIRING PERSON

 

If a person or group becomes an Acquiring Person, all holders
of Rights, except the Acquiring Person, may, for a purchase price of $7.00, acquire shares of our common stock having a market
value of $14.00 based on the market price of the common stock prior to such person or group becoming an Acquiring Person.

 

If our Company is later acquired in a merger or similar transaction
after the Distribution Date, all holders of Rights, except the Acquiring Person, may, for a purchase price of $7.00, purchase shares
of the acquiring corporation having a market value of $14.00 based on the market price of the acquiring corporation's stock, prior
to such merger.

 

PREFERRED STOCK PROVISIONS

 

Each share of Preferred Stock, if issued:

 

will not be redeemable;

 

will be junior to any other series
of preferred stock we may issue;

 

will entitle the holder to quarterly
dividend payments in an amount equal to 1,000 times the dividend, if any, paid on one share of common stock (so that one one-thousandth
of a share of Preferred Stock would entitle the holder to receive a quarterly dividend payment that is the same as any dividend
paid on one share of common stock);

 

will entitle the holder upon liquidation
to receive 1,000 times the payment made on one share of common stock (so that one one-thousandth of a share of Preferred Stock
would entitle the holder to receive the same payment as is made on one share of common stock);

 

will entitle the holder, if common
stock is exchanged via merger, consolidation or a similar transaction, to a per share payment equal to 1,000 times the payment
made on one share of common stock (so that one one-thousandth of a share of Preferred Stock would entitle the holder to receive
the same payment as is made on one share of common stock); and

 

will have the same voting power
as 1,000 shares of common stock (so that one one-thousandth of a share of Preferred Stock would have the same voting rights as
one share of common stock).

 

The value of one one-thousandth interest in a share of Preferred
Stock should approximate the value of one share of common stock.

 

    	C-2

     

    

 

EXPIRATION

 

If the Rights Agreement is approved by the stockholders at the
2019 annual meeting, the Rights will expire on January 31, 2022 or on an earlier date if we redeem or exchange them, as discussed
below. If stockholders do not approve the Rights Agreement, or if at the stockholder meeting there was no proposal to approve the
Rights Agreement, it will expire immediately following certification of the vote at the 2019 annual meeting.

 

REDEMPTION

 

Our Board may redeem the Rights for $0.001 per Right at any
time prior to the earlier of (i) the Close of Business on the tenth calendar day following the Shares Acquisition Date, or (ii)
the Final Expiration Date. If our Board redeems any Rights, it must redeem all of the Rights. Once the Rights are redeemed, the
only right of the holders of Rights will be to receive the redemption price of $0.001 per Right, in cash, common stock or other
securities, as determined by our Board.

 

EXCHANGE

 

After a person or group becomes an Acquiring Person, but before
an Acquiring Person owns 50% or more of the outstanding common stock of the Company, the Board of Directors may extinguish the
Rights by exchanging one share of common stock or an equivalent security for each Right (subject to adjustment), other than Rights
held by the Acquiring Person.

 

QUALIFYING OFFER PROVISION.

 

If the Company receives a “qualifying offer” (that
has not been terminated and continues to be a qualifying offer for the period hereinafter described) and the Board of Directors
has not redeemed the outstanding Rights, exempted such qualifying offer from the terms of the Rights Agreement or called a special
meeting for stockholders to vote on whether to exempt the qualifying offer from the terms of the Rights Agreement within 90 business
days following the commencement of such offer, and if, 90 to 120 business days following commencement, the Company receives notice
from holders of at least 10% of the Company’s outstanding shares of common stock (excluding shares beneficially owned by
the offeror and its affiliates and associates) requesting a special meeting of the Company’s stockholders to vote on a resolution
to exempt the qualifying offer, then the Board of Directors must call and hold such a special meeting by the 90th business day
following receipt of the stockholder notice (the “Outside Meeting Date”).

 

If prior to holding a vote on the qualifying offer, the Company
enters into an agreement conditioned on the approval by holders of a majority of the Company’s outstanding shares of common
stock with respect to a share exchange, merger, consolidation, recapitalization, reorganization, business combination or a similar
transaction involving the Company or the direct or indirect acquisition of more than 50% of the Company’s consolidated total
assets or earning power, the Outside Meeting Date may be extended by the Board of Directors so that stockholders vote on whether
to exempt the qualifying offer at the same time as they vote on such agreement.

 

If the Board of Directors does not hold a special meeting by
the Outside Meeting Date to vote on the exemption of the qualifying offer, the qualifying offer will be deemed exempt from the
Rights Agreement 10 business days after the Outside Meeting Date. If the Board of Directors does hold a special meeting and stockholders
vote at such meeting in favor of exempting the qualifying offer, the qualifying offer will be deemed exempt from the Rights Agreement
10 business days after the votes are certified as official by the inspector of elections.

 

A “qualifying offer,” in summary terms, is an offer
determined by the Board of Directors to have the following characteristics:

 

a fully financed all-cash tender
offer or an exchange offer offering shares of common stock of the offeror, or a combination thereof, in each such case for all
of the Company’s outstanding shares of common stock at the same per share consideration;

 

    	C-3

     

    

 

an offer that has commenced within
the meaning of Rule 14d-2(a) under the Securities Exchange Act of 1934, as amended;

 

an offer that, within 20 business
days after commencement (or within 10 business days after any increase in the offer consideration), does not result in a nationally
recognized investment banking firm retained by the Board of Directors rendering an opinion to the Board of Directors that the consideration
being offered to the holders of the Company’s common stock is either inadequate or unfair;

 

an offer whose per share offer
price and consideration (x) is not less than $9.00, subject to adjustment as provided in the Rights Agreement, and (y) also represent
a reasonable premium over the highest reported market price of the common stock of the Company in the immediately preceding 24
months prior to the date on which the offer is commenced; provided that to the extent that an offer includes common stock of the
offeror, such per share offer price with respect to such common stock of the offeror will be determined for purposes of the foregoing
provision using the lowest reported market price for common stock of the offeror during the five Trading Days immediately preceding
and the five Trading Days immediately following the date on which the Qualifying Offer is commenced;

 

an offer pursuant to which the
Company has received an irrevocable written commitment of the offeror that the offer will remain open for at least 120 business
days and, if a special meeting is duly requested, for at least 10 business days after the date of the special meeting or, if no
special meeting is held within 90 business days following receipt of the special meeting request (subject to extension in certain
circumstances), for at least 10 business days following such period;

 

an offer that is conditioned on
a minimum of at least two-thirds of the outstanding shares of the Company’s common stock not held by the offeror (and its
affiliates and associates) being tendered and not withdrawn as of the offer’s expiration date;

 

an offer that is subject only to
the minimum tender condition described above and other customary terms and conditions, which conditions shall not include any due
diligence, financing, funding or similar conditions;

 

an offer pursuant to which, subject
to certain exceptions, the Company has received an irrevocable written commitment of the offeror that, in addition to the minimum
time periods specified above, the offer, if it is otherwise to expire prior thereto, will be extended for at least 20 business
days after any increase in the consideration being offered or after any bona fide alternative offer is commenced;

 

an offer pursuant to which the
Company has received an irrevocable written commitment by the offeror to consummate as promptly as practicable upon successful
completion of the offer a second-step transaction whereby all of the Company’s shares of common stock not tendered into the
offer will be acquired at the same consideration per share actually paid pursuant to the offer, subject to stockholders’
statutory appraisal rights, if any;

 

    	C-4

     

    

 

an offer pursuant to which the
Company and its stockholders have received an irrevocable, legally binding written commitment of the offeror that no amendments
will be made to the offer to reduce the consideration being offered or to otherwise change the terms of the offer in a way that
is adverse to a tendering stockholder;

 

an offer (other than an offer consisting
solely of cash consideration) pursuant to which the Company has received the written representation and certification of the offeror
and the written representations and certifications of the offeror’s Chief Executive Officer and Chief Financial Officer,
acting in such capacities, that (a) all facts about the offeror that would be material to making an investor’s decision to
accept the offer have been fully and accurately disclosed as of the date of the commencement of the offer, (b) all such new facts
will be fully and accurately disclosed on a prompt basis during the entire period during which the offer remains open and (c) all
reports required under the Securities Exchange Act of 1934, as amended, will be filed by the offeror in a timely manner during
such period; and

 

if the offer includes the offeror’s
common stock as all or part of the offered consideration, (A) the non-cash portion of the consideration offered must consist solely
of common stock of the offeror, which must be a publicly-owned U.S. corporation, (B) such common stock must be freely tradable
and listed or admitted to trading on either the New York Stock Exchange or The NASDAQ Stock Market LLC, (C) no stockholder approval
of the issuer of such common stock may be required to issue such common stock, or, if such approval may be required, such approval
must have already been obtained, and (D) there must be no beneficial owner of 20% or more of the offeror’s common stock outstanding
at the time of commencement or at any time during the term of the offer.

 

ANTI-DILUTION PROVISIONS

 

The Rights will have the benefit of certain customary anti-dilution
provisions.

 

AMENDMENTS

 

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

 

    	C-5Exhibit 10.4

    

    

    CIBUS CORP.

    

    

    2019 EQUITY AND INCENTIVE COMPENSATION PLAN

    

    

    1.          Purpose.  The purpose of this Plan is to attract and retain non-employee Directors, officers and other employees of the Company and its Subsidiaries, and certain consultants to the Company and its Subsidiaries, and to provide to such persons incentives and rewards for service and/or
        performance.

    

    

    2.          Definitions.  As used in this Plan:

    

    

    (a)          “Affiliate” means any Person that directly or
        indirectly controls, is controlled by, or is under common control with the Company.  The term “control” (including, with the correlative meaning, the terms “controlled by” and “under common control with”), as applied to any Person, means the
        possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting or other securities, by contract, or otherwise.

    

    

    (b)          “Appreciation Right” means a right granted pursuant
        to Section 5 of this Plan.

    

    

    (c)          “Base Price” means the price to be used as the basis
        for determining the Spread upon the exercise of an Appreciation Right.

    

    

    (d)          “Board” means the Board of Directors of the Company.

    

    

    (e)          “Business Combination” has the meaning set forth in Section 12(c) of this Plan.

    

    

    (f)          “Cash Incentive Award” means a cash award granted
        pursuant to Section 8 of this Plan.

    

    

    (g)          “Cause” means, unless otherwise defined in the
        applicable Evidence of Award, (i) a material breach by a Participant of any agreement (other than restrictive covenant agreement) then in effect between the Participant and the Company; (ii) a breach by a Participant of any restrictive covenant
        agreement then in effect between the Participant and the Company; (iii) a Participant’s conviction of or plea of “guilty” or “no contest” to a felony under the laws of the United States or any state thereof or any equivalent conviction or plea
        under non-U.S. law; (iv) any material violation or breach by a Participant of the Company’s Code of Business Conduct and Ethics, as in effect from time to time, as determined by the Board; (v) a Participant commission of a crime involving
        dishonesty, breach of trust, or physical harm to any person; or (vi) a Participant’s willful and continued failure to substantially perform the duties associated with the Participant’s position (other than any such failure resulting from the
        Participant’s incapacity due to physical or mental illness), which failure has not been cured within thirty (30) days after a written demand for substantial performance is delivered to the Participant by the Board or an executive officer of the
        Company, as appropriate for the Participant’s position, which demand specifically identifies the manner in which the Board or such officer, as applicable, believes that the Participant has not substantially performed his duties.

    

    

    
      
        

    

    
    (h)          “Change in Control” has the meaning set forth in Section 12 of this Plan.

    

    

    (i)          “Code” means the Internal Revenue Code of 1986, as
        amended from time to time.

    

    

    (j)          “Committee” means the Compensation Committee of the Board (or its successor(s)), or any other committee of the Board designated by the Board to administer this Plan pursuant to Section 10 of this Plan, and to the extent of any delegation by the Committee to a subcommittee pursuant to Section 10 of this Plan, such subcommittee; provided that, prior to the consummation of the initial public offering of the Common Stock, “Committee” shall also mean the Board; provided further that, with respect
        to Participants who are non-employee Directors, “Committee” shall also mean the Board.

    

    

    (k)          “Common Stock” means the Class A common stock, par
        value $0.00001 per share, of the Company, or any security into which such common stock may be changed by reason of any transaction or event of the type referred to in Section 11 of this Plan.

    

    

    (l)          “Company” means Cibus Corp., a Delaware corporation,
        and its successors.

    

    

    (m)          “Date of Grant” means the date provided for by the
        Committee on which a grant of Option Rights, Appreciation Rights, Performance Shares, Performance Units, Cash Incentive Awards, or other awards contemplated by Section

            9 of this Plan, or a grant or sale of Restricted Stock, Restricted Stock Units, or other awards contemplated by Section 9 of this Plan,
        will become effective (which date will not be earlier than the date on which the Committee takes action with respect thereto).

    

    

    (n)          “Director” means a member of the Board.

    

    

    (o)          “Disability” means, unless otherwise defined in the
        applicable Evidence of Award, (i) the Participant is unable to engage in any substantial gainful activity due to medically determinable physical or mental impairment expected to result in death or to last for a continuous period of not less than 12
        months, or (ii) due to any medically determinable physical or mental impairment expected to result in death or last for a continuous period not less than 12 months, the Participant has received income replacement benefits for a period of not less
        than three months under an accident and health plan sponsored by the Company.

    

    

    (p)          “Effective Date” means the date this Plan is approved
        by the Stockholders.

    

    

    (q)          “Evidence of Award” means an agreement, certificate,
        resolution or other type or form of writing or other evidence approved by the Committee that sets forth the terms and conditions of the awards granted under this Plan.  An Evidence of Award may be in an electronic medium, may be limited to notation
        on the books and records of the Company and, unless otherwise determined by the Committee, need not be signed by a representative of the Company or a Participant.

    

    

    
      2

      
        

    

    
    (r)          “Exchange Act” means the Securities Exchange Act of
        1934, as amended, and the rules and regulations thereunder, as such law, rules and regulations may be amended from time to time.

    

    

    (s)          “Incentive Stock Option” means an Option Right that
        is intended to qualify as an “incentive stock option” under Section 422 of the Code or any successor provision.

    

    

    (t)          “Incumbent Board” has the meaning set forth in Section 12(b) of this Plan.

    

    

    (u)          “Management Objectives” means the measurable
        performance objective or objectives established pursuant to this Plan for Participants who have received grants of Performance Shares, Performance Units or Cash Incentive Awards or, when so determined by the Committee, Option Rights, Appreciation
        Rights, Restricted Stock, Restricted Stock Units, dividend equivalents or other awards pursuant to this Plan.  If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the
        manner in which it conducts its business, or other events or circumstances render the Management Objectives unsuitable, the Committee may in its discretion modify such Management Objectives or the acceptable levels of achievement, in whole or in
        part, as the Committee deems appropriate and equitable.

    

    

    (v)          “Market Value per Share” means, as of any particular
        date, the closing price of a share of Common Stock as reported for that date on the NASDAQ Stock Market or, if the shares of Common Stock are not then listed on the NASDAQ Stock Market, on any other national securities exchange on which the shares
        of Common Stock are listed, or if there are no sales on such date, on the next preceding trading day during which a sale occurred; provided, however, as to any award with a Date of Grant of the Pricing Date, “Market Value per Share” will be equal to the per share price at which the shares of Common Stock are initially offered to the
        public in connection with the initial public offering of the Company registered on Form S-1 (or any successor form under the Securities Act of 1933, as amended).  If there is no regular public trading market for the shares of Common Stock, then the
        Market Value per Share shall be the fair market value as determined in good faith by the Committee.  The Committee is authorized to adopt another fair market value pricing method provided such method is stated in the applicable Evidence of Award
        and is in compliance with the fair market value pricing rules set forth in Section 409A of the Code.

    

    

    (w)          “Optionee” means the optionee named in an Evidence of
        Award evidencing an outstanding Option Right.

    

    

    (x)          “Option Price” means the purchase price payable on
        exercise of an Option Right.

    

    

    (y)          “Option Right” means the right to purchase shares of
        Common Stock upon exercise of an award granted pursuant to Section 4 of this Plan.

    

    

    (z)          “Outstanding Company Common Stock” has the meaning
        set forth in Section 12(a) of this Plan.

    

    

    
      3

      
        

    

    (aa)          “Outstanding Company Voting Securities” has the
        meaning set forth in Section 12(a) of this Plan.

    

    

    (bb)          “Participant” means a person who is selected by the
        Committee to receive benefits under this Plan and who is at the time (i) a non-employee Director, (ii) an officer or other employee of the Company or any Subsidiary, including a person who has agreed to commence serving in such capacity within 90
        days of the Date of Grant, or (iii) a person, including a consultant, who provides services to the Company or any Subsidiary that are equivalent to those typically provided by an employee (provided that such person satisfies the Form S-8 definition
        of an “employee”).

    

    

    (cc)          “Performance Period” means, in respect of a Cash
        Incentive Award, Performance Share or Performance Unit, a period of time established pursuant to Section 8 of this Plan within which the Management
        Objectives relating to such Cash Incentive Award, Performance Share or Performance Unit are to be achieved.

    

    

    (dd)          “Performance Share” means a bookkeeping entry that
        records the equivalent of one share of Common Stock awarded pursuant to Section 8 of this Plan.

    

    

    (ee)          “Performance Unit” means a bookkeeping entry awarded
        pursuant to Section 8 of this Plan that records a unit equivalent to $1.00 or such other value as is determined by the Committee.

    

    

    (ff)          “Person” has the meaning set forth in Section 12(a) of this Plan.

    

    

    (gg)          “Plan” means this Cibus Corp. 2019 Equity and
        Incentive Compensation Plan, as amended or amended and restated from time to time.

    

    

    (hh)          “Pricing Date” means the date of the underwriting
        agreement between the Company and the underwriters managing the initial public offering of the shares of Common Stock pursuant to which the shares of Common Stock are priced for the initial public offering.

    

    

    (ii)          “Restricted Stock” means shares of Common Stock
        granted or sold pursuant to Section 6 of this Plan as to which neither the substantial risk of forfeiture nor the prohibition on transfers has expired.

    

    

    (jj)          “Restricted Stock Units” means an award made
        pursuant to Section 7 of this Plan of the right to receive shares of Common Stock, cash or a combination thereof at the end of the applicable
        Restriction Period.

    

    

    (kk)          “Restriction Period” means the period of time during
        which Restricted Stock Units are subject to restrictions, as provided in Section 7 of this Plan.

    

    

    (ll)          “Spread” means the excess of the Market Value per
        Share on the date when an Appreciation Right is exercised over the Base Price provided for with respect to the Appreciation Right.

    

    

    
      4

      
        

    

    (mm)          “Stockholder” means an individual or entity that
        owns one or more shares of Common Stock.

    

    

    (nn)          “Subsidiary” means a corporation, company or other
        entity (i) more than 50% of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a
        partnership, joint venture, limited liability company, unincorporated association or other similar entity), but more than 50% of whose ownership interest representing the right generally to make decisions for such other entity is, now or hereafter,
        owned or controlled, directly or indirectly, by the Company; provided, however, that for
        purposes of determining whether any person may be a Participant for purposes of any grant of Incentive Stock Options, “Subsidiary” means any corporation in which the Company at the time owns or controls, directly or indirectly, more than 50% of the
        total combined Voting Power represented by all classes of stock issued by such corporation.

    

    

    (oo)          “Voting Power” means, at any time, the combined
        voting power of the then-outstanding securities entitled to vote generally in the election of Directors in the case of the Company or members of the board of directors or similar body in the case of another entity.

    

    

    3.          Shares Available Under this Plan.

    

    

    
      
        	

              	(a)	
                Maximum Shares Available Under this Plan.

              

      

    

    

    

    
      
        	

              	(i)	
                Subject to adjustment as provided in Section 11 of this Plan and the share
                    counting rules set forth in Section 3(b) of this Plan, the number of shares of Common Stock available under this Plan for awards of (A)
                    Option Rights or Appreciation Rights, (B) Restricted Stock, (C) Restricted Stock Units, (D) Performance Shares or Performance Units, (E) awards contemplated by Section 9 of this Plan, or (F) dividend equivalents paid with respect to awards made under this Plan will not exceed in the aggregate 2,333,334 shares of Common Stock; provided, however, that this maximum share limit will automatically increase on January 1 of each year, for a period of not more than ten years, commencing on January 1 of the year following the year in which the
                    Effective Date occurs and ending on (and including) January 1, 2029, in an amount equal to 4% of the total number of shares of Common Stock outstanding on December 31st of the preceding calendar year, determined on a fully diluted basis
                    and assuming conversion of any outstanding securities convertible into shares of Common Stock, and further, provided, that the Board may act prior to January 1 of a given year to provide that there will be no January 1st increase in the
                    maximum share limit for such year or that the increase in the maximum share limit for such year will be a lesser number of shares of Common Stock than would otherwise occur pursuant to the preceding clause.

              

      

    

    

    

    
      5

      
        

    

    
      
        	

              	(ii)	
                The aggregate number of shares of Common Stock available under Section 3(a)(i)
                    of this Plan will be reduced by one share of Common Stock for every one share of Common Stock subject to an award granted under this Plan.

              

      

    

    

    

    
      
        	

              	(iii)	
                The shares that may be issued under this Plan may be shares of original issuance or treasury shares or a combination of the foregoing.

              

      

    

    

    

    (b)          Share Counting Rules.

    

    

    
      
        	

              	(i)	
                Except as provided in Section 22 of this Plan, if any award granted under
                    this Plan is cancelled or forfeited, expires, is settled for cash (in whole or in part), or is unearned (in whole or in part), the shares of Common Stock subject to such award will, to the extent of such cancellation, forfeiture,
                    expiration, cash settlement, or unearned amount, again be available under Section 3(a)(i) above.

              

      

    

    

    

    
      
        	

              	(ii)	
                Notwithstanding anything to the contrary contained in this Plan:  (A) shares of Common Stock withheld by the Company, tendered or otherwise used in payment of the Option
                    Price of an Option Right will not be added (or added back, as applicable) to the aggregate number of shares of Common Stock available under Section
                        3(a)(i) of this Plan; (B)  shares of Common Stock subject to an Appreciation Right that are not actually issued in connection with the settlement of such Appreciation Right on the exercise thereof will not be added back
                    to the aggregate number of shares of Common Stock available under Section 3(a)(i) of this Plan; (C) shares of Common Stock reacquired by
                    the Company on the open market or otherwise using cash proceeds from the exercise of Option Rights will not be added (or added back, as applicable) to the aggregate number of shares of Common Stock available under Section 3(a)(i) of this Plan; and (D) shares of Common Stock withheld by
                    the Company, tendered or otherwise used to satisfy tax withholding will be added (or added back, as applicable) to the aggregate number of shares of Common Stock available under Section 3(a)(i) of this Plan; provided,
                    however, that with respect to Restricted Stock, this Section 3(b)(ii)(D)
                    shall only be in effect until the 10 year anniversary of the date the Plan is approved by the Stockholders.

              

      

    

    

    

    
      
        	

              	(iii)	
                If, under this Plan, a Participant has elected to give up the right to receive compensation in exchange for shares of Common Stock based on fair market value, such shares
                    of Common Stock will not count against the aggregate limit under Section 3(a)(i) of this Plan.

              

      

    

    

    

    (c)          Limit on Incentive Stock Options.  Notwithstanding anything to the contrary contained in this Section 3 or elsewhere in this
        Plan, and subject to adjustment as provided in Section 11 of this Plan, the aggregate number of shares of Common Stock actually issued or transferred
        by the Company upon the exercise of Incentive Stock Options will not exceed 2,333,334  shares of Common Stock.

    

    

    
      6

      
        

    

    (d)          Non-Employee Director Compensation Limit.  Notwithstanding anything to the contrary contained in this Section 3 or elsewhere
        in this Plan, and subject to adjustment as provided in Section 11 of this Plan, in no event will any non-employee Director in any calendar year be
        granted compensation (including meeting and retainer fees and equity grants) for such service having an aggregate maximum value (measured at the Date of Grant as applicable, and calculating the value of any awards based on the grant date fair value
        for financial reporting purposes) in excess of $300,000.  Notwithstanding the foregoing, in the event of extraordinary circumstances (as determined by the Board) the amount set forth in the preceding sentence shall be increased to $450,000,
        provided that such increase may apply only if any non-employee Director receiving additional compensation as a result of such extraordinary circumstances does not participate in the determination that extraordinary circumstances exist, in the
        decision to award such compensation or in other contemporaneous compensation decisions involving non-employee Directors.

    

    

    4.          Option Rights.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting to Participants of Option Rights.  Each such grant may utilize any or all of
        the authorizations, and will be subject to all of the requirements, contained in the following provisions:

    

    

    (a)          Each grant will specify the number of shares of
        Common Stock to which it pertains subject to the limitations set forth in Section 3 of this Plan.

    

    

    (b)          Each grant will specify an Option Price per share of
        Common Stock, which Option Price (except with respect to awards under Section 22 of this Plan) may not be less than the Market Value per Share on the
        Date of Grant.

    

    

    (c)          Each grant will specify whether the Option Price will
        be payable (i) in cash, by check acceptable to the Company or by wire transfer of immediately available funds, (ii) by the actual or constructive transfer to the Company of shares of Common Stock owned by the Optionee having a value at the time of
        exercise equal to the total Option Price, (iii) subject to any conditions or limitations established by the Committee, by the withholding of shares of Common Stock otherwise issuable upon exercise of an Option Right pursuant to a “net exercise”
        arrangement (it being understood that, solely for purposes of determining the number of treasury shares held by the Company, the shares of Common Stock so withheld will not be treated as issued and acquired by the Company upon such exercise), (iv)
        by a combination of such methods of payment, or (v) by such other methods as may be approved by the Committee.

    

    

    (d)          To the extent permitted by law, any grant may provide
        for deferred payment of the Option Price from the proceeds of sale through a bank or broker on a date satisfactory to the Company of some or all of the shares of Common Stock to which such exercise relates.

    

    

    (e)          Successive grants may be made to the same Participant
        whether or not any Option Rights previously granted to such Participant remain unexercised.

    

    

    
      7

      
        

    

    (f)          Each grant will specify the period or periods of
        continuous service by the Optionee with the Company or any Subsidiary, if any, that is necessary before any Option Rights or installments thereof will become exercisable.  Option Rights may provide for continued vesting or the earlier exercise of
        such Option Rights, including in the event of the retirement, death or disability of a Participant or in the event of a Change in Control.

    

    

    (g)          Any grant of Option Rights may specify Management
        Objectives that must be achieved as a condition to the exercise of such rights.

    

    

    (h)          Option Rights granted under this Plan may be (i)
        options, including Incentive Stock Options, that are intended to qualify under particular provisions of the Code, (ii) options that are not intended to so qualify, or (iii) combinations of the foregoing.  Incentive Stock Options may only be granted
        to Participants who meet the definition of “employees” under Section 3401(c) of the Code.

    

    

    (i)          No Option Right will be exercisable more than 10
        years from the Date of Grant.  The Committee may provide in any Evidence of Award for the automatic exercise of an Option Right upon such terms and conditions as established by the Committee.

    

    

    (j)          Option Rights granted under this Plan may not provide
        for any dividends or dividend equivalents thereon.

    

    

    (k)          Each grant of Option Rights will be evidenced by an
        Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

    

    

    5.          Appreciation Rights.

    

    

    (a)          The Committee may, from time to time and upon such
        terms and conditions as it may determine, authorize the granting to any Participant of Appreciation Rights.  An Appreciation Right will be the right of the Participant to receive from the Company an amount determined by the Committee, which will be
        expressed as a percentage of the Spread (not exceeding 100%) at the time of exercise.

    

    

    (b)          Each grant of Appreciation Rights may utilize any or
        all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

    

    

    
      
        	

              	(i)	
                Each grant may specify that the amount payable on exercise of an Appreciation Right will be paid by the Company in cash, shares of Common Stock or any combination thereof.

              

      

    

    

    

    
      
        	

              	(ii)	
                Any grant may specify that the amount payable on exercise of an Appreciation Right may not exceed a maximum specified by the Committee on the Date of Grant.

              

      

    

    

    

    
      
        	

              	(iii)	
                Any grant may specify waiting periods before exercise and permissible exercise dates or periods.

              

      

    

    

    

    
      8

      
        

    

    
      
        	

              	(iv)	
                Each grant will specify the period or periods of continuous service by the Participant with the Company or any Subsidiary, if any, that is necessary before the Appreciation
                    Rights or installments thereof will become exercisable.  Appreciation Rights may provide for continued vesting or the earlier exercise of such Appreciation Rights, including in the event of the retirement, death or disability of a
                    Participant or in the event of a Change in Control.

              

      

    

    

    

    
      
        	

              	(v)	
                Any grant of Appreciation Rights may specify Management Objectives that must be achieved as a condition of the exercise of such Appreciation Rights.

              

      

    

    

    

    
      
        	

              	(vi)	
                Appreciation Rights granted under this Plan may not provide for any dividends or dividend equivalents thereon.

              

      

    

    

    

    
      
        	

              	(vii)	
                Successive grants of Appreciation Rights may be made to the same Participant regardless of whether any Appreciation Rights previously granted to the Participant remain
                    unexercised.

              

      

    

    

    

    
      
        	

              	(viii)	
                Each grant of Appreciation Rights will be evidenced by an Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and
                    provisions, consistent with this Plan, as the Committee may approve.

              

      

    

    

    

    (c)          Also, regarding Appreciation Rights:

    

    

    
      
        	

              	(i)	
                Each grant will specify in respect of each Appreciation Right a Base Price, which (except with respect to awards under Section 22 of this Plan) may not be less than the Market Value per Share on the Date of Grant; and

              

      

    

    

    

    
      
        	

              	(ii)	
                No Appreciation Right granted under this Plan may be exercised more than 10 years from the Date of Grant.  The Committee may provide in any Evidence of Award for the
                    automatic exercise of an Appreciation Right upon such terms and conditions as established by the Committee.

              

      

    

    

    

    6.          Restricted Stock.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the grant or sale of Restricted Stock to Participants.  Each such grant or sale may
        utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

    

    

    (a)          Each such grant or sale will constitute an immediate
        transfer of the ownership of shares of Common Stock to the Participant in consideration of the performance of services, entitling such Participant to voting, dividend and other ownership rights, but subject to the substantial risk of forfeiture and
        restrictions on transfer hereinafter described.

    

    

    
      9

      
        

    

    (b)          Each such grant or sale may be made without
        additional consideration or in consideration of a payment by such Participant that is less than the Market Value per Share on the Date of Grant.

    

    

    (c)          Each such grant or sale will provide that the
        Restricted Stock covered by such grant or sale will be subject to a “substantial risk of forfeiture” within the meaning of Section 83 of the Code for a period to be determined by the Committee on the Date of Grant or until achievement of Management
        Objectives referred to in Section 6(e) of this Plan.

    

    

    (d)          Each such grant or sale will provide that during or
        after the period for which such substantial risk of forfeiture is to continue, the transferability of the Restricted Stock will be prohibited or restricted in the manner and to the extent prescribed by the Committee on the Date of Grant (which
        restrictions may include rights of repurchase or first refusal of the Company or provisions subjecting the Restricted Stock to a continuing substantial risk of forfeiture while held by any transferee).

    

    

    (e)          Any grant of Restricted Stock may specify Management
        Objectives that, if achieved, will result in termination or early termination of the restrictions applicable to such Restricted Stock.

    

    

    (f)          Notwithstanding anything to the contrary contained in
        this Plan, Restricted Stock may provide for continued vesting or the earlier termination of restrictions on such Restricted Stock, including in the event of the retirement, death or disability of a Participant or in the event of a Change in
        Control.

    

    

    (g)          Any such grant or sale of Restricted Stock will
        require that any and all dividends or other distributions paid thereon during the period of such restrictions be automatically deferred and/or reinvested in additional Restricted Stock, which will be subject to the same restrictions as the
        underlying award.  For the avoidance of doubt, any such dividends or other distributions on Restricted Stock will be deferred until, and paid contingent upon, the vesting of such Restricted Stock.

    

    

    (h)          Each grant or sale of Restricted Stock will be
        evidenced by an Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.  Unless otherwise directed by the Committee, (i) all
        certificates representing Restricted Stock will be held in custody by the Company until all restrictions thereon will have lapsed, together with a stock power or powers executed by the Participant in whose name such certificates are registered,
        endorsed in blank and covering such shares or (ii) all Restricted Stock will be held at the Company’s transfer agent in book entry form with appropriate restrictions relating to the transfer of such Restricted Stock.

    

    

    7.          Restricted Stock Units.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting or sale of Restricted Stock Units to Participants.  Each such grant or
        sale may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

    

    

    (a)          Each such grant or sale will constitute the agreement
        by the Company to deliver shares of Common Stock or cash, or a combination thereof, to the Participant in the future in consideration of the performance of services, but subject to the fulfillment of such conditions (which may include the
        achievement of Management Objectives) during the Restriction Period as the Committee may specify.

    

    

    
      10

      
        

    

    (b)          Each such grant or sale may be made without
        additional consideration or in consideration of a payment by such Participant that is less than the Market Value per Share on the Date of Grant.

    

    

    (c)          Notwithstanding anything to the contrary contained in
        this Plan, Restricted Stock Units may provide for continued vesting or the earlier lapse or other modification of the Restriction Period, including in the event of the retirement, death or disability of a Participant or in the event of a Change in
        Control.

    

    

    (d)          During the Restriction Period, the Participant will
        have no right to transfer any rights under his or her award and will have no rights of ownership in the shares of Common Stock deliverable upon payment of the Restricted Stock Units and will have no right to vote them, but the Committee may, at or
        after the Date of Grant, authorize the payment of dividend equivalents on such Restricted Stock Units on a deferred and contingent basis, either in cash or in additional shares of Common Stock; provided, however, that dividend equivalents or other distributions on shares of Common Stock underlying Restricted Stock Units will be deferred
        until and paid contingent upon the vesting of such Restricted Stock Units.

    

    

    (e)          Each grant or sale of Restricted Stock Units will
        specify the time and manner of payment of the Restricted Stock Units that have been earned.  Each grant or sale will specify that the amount payable with respect thereto will be paid by the Company in shares of Common Stock or cash, or a
        combination thereof.

    

    

    (f)          Each grant or sale of Restricted Stock Units will be
        evidenced by an Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

    

    

    8.          Cash Incentive Awards, Performance Shares and Performance Units.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting of Cash Incentive Awards,
        Performance Shares and Performance Units.  Each such grant may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

    

    

    (a)          Each grant will specify the number or amount of
        Performance Shares or Performance Units, or amount payable with respect to a Cash Incentive Award, to which it pertains, which number or amount may be subject to adjustment to reflect changes in compensation or other factors.

    

    

    (b)          The Performance Period with respect to each Cash
        Incentive Award or grant of Performance Shares or Performance Units will be such period of time as will be determined by the Committee.  Cash Incentive Awards, Performance Shares and Performance Units may be subject to continued vesting or the
        earlier lapse or other modification of the applicable performance period, including in the event of the retirement, death or disability of a Participant or in the event of a Change in Control.

    

    

    
      11

      
        

    

    (c)          Each grant of a Cash Incentive Award, Performance
        Shares or Performance Units will specify Management Objectives which, if achieved, will result in payment or early payment of the award, and each grant may specify in respect of such specified Management Objectives a minimum acceptable level or
        levels of achievement and may set forth a formula for determining the number of Performance Shares or Performance Units, or amount payable with respect to a Cash Incentive Award, that will be earned if performance is at or above the minimum or threshold level or levels, or is at or above the target level or levels, but falls short of maximum achievement of the specified Management Objectives.

    

    

    (d)          Each grant will specify the time and manner of
        payment of a Cash Incentive Award, Performance Shares or Performance Units that have been earned.  Any grant may specify that the amount payable with respect thereto may be paid by the Company in cash, in shares of Common Stock, in Restricted Stock
        or Restricted Stock Units or in any combination thereof.

    

    

    (e)          Any grant of a Cash Incentive Award, Performance
        Shares or Performance Units may specify that the amount payable or the number of shares of Common Stock, Restricted Stock or Restricted Stock Units payable with respect thereto may not exceed a maximum specified by the Committee on the Date of
        Grant.

    

    

    (f)          The Committee may, on the Date of Grant of
        Performance Shares or Performance Units, provide for the payment of dividend equivalents to the holder thereof either in cash or in additional shares of Common Stock, subject in all cases to deferral and payment on a contingent basis based on the
        Participant’s earning of the Performance Shares or Performance Units, as applicable, with respect to which such dividend equivalents are paid.

    

    

    (g)          Each grant of a Cash Incentive Award, Performance
        Shares or Performance Units will be evidenced by an Evidence of Award.  Each Evidence of Award will be subject to this Plan and will contain such terms and provisions, consistent with this Plan, as the Committee may approve.

    

    

    9.          Other Awards.

    

    

    (a)          Subject to applicable law and the applicable limits
        set forth in Section 3 of this Plan, the Committee may authorize the grant to any Participant of shares of Common Stock or such other awards that may
        be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, shares of Common Stock or factors that may influence the value of such shares, including, without limitation, convertible or
        exchangeable debt securities, other rights convertible or exchangeable into shares of Common Stock, purchase rights for shares of Common Stock, awards with value and payment contingent upon performance of the Company or specified Subsidiaries,
        affiliates or other business units thereof or any other factors designated by the Committee, and awards valued by reference to the book value of the shares of Common Stock or the value of securities of, or the performance of specified Subsidiaries
        or affiliates or other business units of the Company.  The Committee will determine the terms and conditions of such awards.  Shares of Common Stock delivered pursuant to an award in the nature of a purchase right granted under this Section 9 will be purchased for such consideration, paid for at such time, by such methods, and in such forms, including, without limitation, shares of
        Common Stock, other awards, notes or other property, as the Committee determines.

    

    

    
      12

      
        

    

    (b)          Cash awards, as an element of or supplement to any
        other award granted under this Plan, may also be granted pursuant to this Section 9.

    

    

    (c)          The Committee may authorize the grant of shares of
        Common Stock as a bonus, or may authorize the grant of other awards in lieu of obligations of the Company or a Subsidiary to pay cash or deliver other property under this Plan or under other plans or compensatory arrangements, subject to such terms
        as will be determined by the Committee in a manner that complies with Section 409A of the Code.

    

    

    (d)          The Committee may, at or after the Date of Grant,
        authorize the payment of dividends or dividend equivalents on awards granted under this Section 9 on a deferred and contingent basis, either in cash or
        in additional shares of Common Stock; provided, however, that dividend equivalents or other
        distributions on shares of Common Stock underlying awards granted under this Section 9 will be deferred until and paid contingent upon the earning of
        such awards.

    

    

    (e)          Notwithstanding anything to the contrary contained in
        this Plan, awards under this Section 9 may provide for the earning or vesting of, or earlier elimination of restrictions applicable to, such award,
        including in the event of the retirement, death or disability of a Participant or in the event of a Change in Control.

    

    

    10.          Administration of this Plan.

    

    

    (a)          This Plan will be administered by the Committee.  The
        Committee may from time to time delegate all or any part of its authority under this Plan to a subcommittee thereof.  To the extent of any such delegation, references in this Plan to the Committee will be deemed to be references to such
        subcommittee.

    

    

    (b)          The interpretation and construction by the Committee
        of any provision of this Plan or of any Evidence of Award (or related documents) and any determination by the Committee pursuant to any provision of this Plan or of any such agreement, notification or document will be final and conclusive.  No
        member of the Committee shall be liable for any such action or determination made in good faith.  In addition, the Committee is authorized to take any action it determines in its sole discretion to be appropriate subject only to the express
        limitations contained in this Plan, and no authorization in any Plan section or other provision of this Plan is intended or may be deemed to constitute a limitation on the authority of the Committee.

    

    

    (c)          To the extent permitted by law, the Committee may
        delegate to one or more of its members, to one or more officers of the Company, or to one or more agents or advisors, such administrative duties or powers as it may deem advisable, and the Committee, the subcommittee, or any person to whom duties
        or powers have been delegated as aforesaid, may employ one or more persons to render advice with respect to any responsibility the Committee, the subcommittee or such person may have under this Plan.  The Committee may, by resolution, authorize one
        or more officers of the Company to do one or both of the following on the same basis as the Committee:  (i) designate employees to be recipients of awards under this Plan; and (ii) determine the size of any such awards; provided, however, that (A) the Committee will not delegate such responsibilities to any such officer for awards
        granted to an employee who is an officer, Director, or more than 10% “beneficial owner” (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) of any class of the Company’s equity securities that is registered pursuant to
        Section 12 of the Exchange Act, as determined by the Committee in accordance with Section 16 of the Exchange Act; (B) the resolution providing for such authorization shall set forth the total number of shares of Common Stock such officer(s) may
        grant; and (C) the officer(s) will report periodically to the Committee regarding the nature and scope of the awards granted pursuant to the authority delegated.

    

    

    
      13

      
        

    

    11.          Adjustments.  The Committee shall make or provide for such adjustments in the number of and kind of shares of Common Stock covered by outstanding Option Rights, Appreciation Rights, Restricted Stock, Restricted
        Stock Units, Performance Shares and Performance Units granted hereunder and, if applicable, in the number of and kind of shares of Common Stock covered by other awards granted pursuant to Section 9 of this Plan, in the Option Price and Base Price provided in outstanding Option Rights and Appreciation Rights, respectively, in Cash Incentive Awards, and in other award terms, as the
        Committee, in its sole discretion, exercised in good faith, determines is equitably required to prevent dilution or enlargement of the rights of Participants that otherwise would result from (a) any stock dividend, extraordinary cash dividend,
        stock split, combination of shares, recapitalization or other change in the capital structure of the Company, (b) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other
        distribution of assets, issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing.  Moreover, in the event of any such transaction or event or in the
        event of a Change in Control, the Committee may (i) accelerate the vesting for any outstanding award under this Plan in a manner that complies with Section 409A of the Code or (ii) provide in substitution for any or all outstanding awards under
        this Plan such alternative consideration (including cash), if any, as it, in good faith, may determine to be equitable in the circumstances and shall require
        in connection therewith the surrender of all awards so replaced in a manner that complies with Section 409A of the Code.  In addition, for each Option Right or Appreciation Right with an Option Price or Base Price, respectively, greater than the
        consideration offered in connection with any such transaction or event or Change in Control, the Committee may in its discretion elect to cancel such Option Right or Appreciation Right without any payment to the person holding such Option Right or
        Appreciation Right.  The Committee shall also make or provide for such adjustments in the number of shares of Common Stock specified in Section 3 of
        this Plan as the Committee in its sole discretion, exercised in good faith, determines is appropriate to reflect any transaction or event described in this Section

            11; provided, however, that any such adjustment to the number specified in Section 3(c) of this Plan will be made only if and to the extent that such adjustment would not cause any Option Right intended to qualify as an Incentive
        Stock Option to fail to so qualify.

    

    

    12.          Change in Control.  For purposes of this Plan, except as may be otherwise provided in an Evidence of Award made under this Plan, a “Change in Control” will be deemed to have occurred upon the occurrence (after
        the Effective Date) of any of the following events:

    

    

    (a)          any individual, entity or group (within the meaning
        of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 35% or more of either (i) the then- outstanding shares of Common Stock (the
        “Outstanding Company Common Stock”) or (ii) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this definition, the following acquisitions shall not
        constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate or (D)
        any acquisition pursuant to a transaction that complies with Sections 12(c)(i), (c)(ii) and
        (c)(iii) below;

    

    

    
      14

      
        

    

    (b)          individuals who, as of the Effective Date, constitute
        the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Stockholders, was approved by a vote of at least a majority of the directors then
        comprising the Incumbent Board (either by specific vote or by approval of the proxy statement of the Company in which such individual is named as a nominee for director, without objection to such nomination) shall be considered as though such
        individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of
        directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

    

    

    (c)          consummation of a reorganization, merger, statutory
        share exchange or consolidation or similar transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or securities of another
        entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (i) all or substantially all of the individuals and entities that were the beneficial owners of the
        Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of Common Stock (or, for a
        non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case
        may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or
        more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (ii) no Person
        (excluding any entity resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 35% or more of,
        respectively, the then-outstanding shares of Common Stock (or, for a non-corporate entity, equivalent securities) of the entity resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such
        entity, except to the extent that such ownership existed prior to the Business Combination, and (iii) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity resulting
        from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or

    

    

    (d)          approval by the Stockholders of a complete
        liquidation or dissolution of the Company.

    

    

    
      15

      
        

    

    13.          Detrimental Activity and Recapture Provisions.  Any Evidence of Award may reference a clawback policy of the Company or provide for the cancellation or forfeiture of an award or the forfeiture and repayment to
        the Company of any gain related to an award, or other provisions intended to have a similar effect, upon such terms and conditions as may be determined by the Committee from time to time, if a Participant, either (a) during employment or other
        service with the Company or a Subsidiary, or (b) within a specified period after termination of such employment or service, engages in any detrimental activity, as described in the applicable Evidence of Award or such clawback policy.  In addition,
        notwithstanding anything in this Plan to the contrary, any Evidence of Award or such clawback policy may also provide for the cancellation or forfeiture of an award or the forfeiture and repayment to the Company of any shares of Common Stock issued
        under and/or any other benefit related to an award, or other provisions intended to have a similar effect, upon such terms and conditions as may be required by the Committee or under Section 10D of the Exchange Act and any applicable rules or
        regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which the shares of Common Stock may be traded.

    

    

    14.          Non-U.S. Participants.  In order to facilitate the making of any grant or combination of grants under this Plan, the Committee may provide for such special terms for awards to Participants who are foreign
        nationals or who are employed by the Company or any Subsidiary outside of the United States of America or who provide services to the Company or any Subsidiary under an agreement with a foreign nation or agency, as the Committee may consider
        necessary or appropriate to accommodate differences in local law, tax policy or custom.  Moreover, the Committee may approve such supplements to or amendments, restatements or alternative versions of this Plan (including sub-plans) as it may
        consider necessary or appropriate for such purposes, without thereby affecting the terms of this Plan as in effect for any other purpose, and the secretary or other appropriate officer of the Company may certify any such document as having been
        approved and adopted in the same manner as this Plan.  No such special terms, supplements, amendments or restatements, however, will include any provisions that are inconsistent with the terms of this Plan as then in effect unless this Plan could
        have been amended to eliminate such inconsistency without further approval by the Stockholders.

    

    

    15.          Transferability.

    

    

    (a)          Except as otherwise determined by the Committee, no
        Option Right, Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Share, Performance Unit, Cash Incentive Award, award contemplated by Section

            9 of this Plan or dividend equivalents paid with respect to awards made under this Plan will be transferable by the Participant except by will or the laws of descent and distribution.  In no event will any such award granted under
        this Plan be transferred for value.  Except as otherwise determined by the Committee, Option Rights and Appreciation Rights will be exercisable during the Participant’s lifetime only by him or her or, in the event of the Participant’s legal
        incapacity to do so, by his or her guardian or legal representative acting on behalf of the Participant in a fiduciary capacity under state law or court supervision.

    

    

    
      16

      
        

    

    (b)          The Committee may specify on the Date of Grant that
        part or all of the shares of Common Stock that are (i) to be issued or transferred by the Company upon the exercise of Option Rights or Appreciation Rights, upon the termination of the Restriction Period applicable to Restricted Stock Units or upon
        payment under any grant of Performance Shares or Performance Units or (ii) no longer subject to the substantial risk of forfeiture and restrictions on transfer referred to in Section 6 of this Plan, will be subject to further restrictions on transfer.

    

    

    16.          Withholding Taxes.  To the extent that the Company is required to withhold federal, state, local or foreign taxes or other amounts in connection with any payment made or benefit realized by a Participant or
        other person under this Plan, it will be a condition to the receipt of such payment or the realization of such benefit that such taxes or other amounts be withheld from such payment or benefit or paid by such Participant or other person, as
        determined or provided for by the Committee.  With respect to such benefits that are to be received in the form of shares of Common Stock, the Committee will cause the applicable Evidence of Award to specify the manner or manners in which the
        withholding or payment of such taxes or other amounts will be effected by or on behalf of such Participant or other person, which manner or manners may include, as provided for by the Committee, withholding from the shares of Common Stock required
        to be delivered to the Participant a number of shares of Common Stock having a value equal to the amount required to be withheld.  Any shares of Common Stock used for purposes of such withholding or payment will be valued based on the fair market
        value of such shares on the date on which the benefit or payment is to be included in the Participant’s income.  In no event will the fair market value of any shares of Common Stock withheld or otherwise used pursuant to this Section 16 exceed the minimum amount required to be withheld, unless (i) an additional amount can be withheld and not result in adverse accounting
        consequences, (ii) such additional withholding amount is authorized by the Committee, and (iii) the total amount withheld does not exceed the Participant’s estimated tax obligations attributable to the applicable transaction.  Participants will
        also make such arrangements as the Company may require for the payment of any withholding tax or other obligation that may arise in connection with the disposition of shares of Common Stock acquired upon the exercise of Option Rights.

    

    

    17.          Compliance with Section 409A of the Code.

    

    

    (a)          To the extent applicable, it is intended that this
        Plan and any grants made hereunder comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of Section 409A(a)(1) of the Code do not apply to the Participants.  This Plan and any grants made hereunder will be
        administered in a manner consistent with this intent.  Any reference in this Plan to Section 409A of the Code will also include any regulations or any other formal guidance promulgated with respect to such section by the U.S. Department of the
        Treasury or the Internal Revenue Service.

    

    

    (b)          Neither a Participant nor any of a Participant’s
        creditors or beneficiaries will have the right to subject any deferred compensation (within the meaning of Section 409A of the Code) payable under this Plan and grants hereunder to any anticipation, alienation, sale, transfer, assignment, pledge,
        encumbrance, attachment or garnishment.  Except as permitted under Section 409A of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to a Participant or for a Participant’s benefit under this Plan and
        grants hereunder may not be reduced by, or offset against, any amount owed by a Participant to the Company or any of its Subsidiaries.

    

    

    
      17

      
        

    

    (c)          If, at the time of a Participant’s separation from
        service (within the meaning of Section 409A of the Code), (i) the Participant will be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected by the Company from time to time) and (ii)
        the Company makes a good faith determination that an amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set
        forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Company will not pay such amount on the otherwise scheduled payment date but will instead pay it, without interest, on the fifth
        business day of the seventh month after such separation from service.

    

    

    (d)          Solely with respect to any award that constitutes
        nonqualified deferred compensation subject to Section 409A of the Code and that is payable on account of a Change in Control (including any installments or stream of payments that are accelerated on account of a Change in Control), a Change in
        Control shall occur only if such event also constitutes a “change in the ownership,” “change in effective control,” and/or a “change in the ownership of a substantial portion of assets” of the Company as those terms are defined under Treasury
        Regulation §1.409A-3(i)(5), but only to the extent necessary to establish a time and form of payment that complies with Section 409A of the Code, without altering the definition of Change in Control for any purpose in respect of such award.

    

    

    (e)          Notwithstanding any provision of this Plan and grants
        hereunder to the contrary, in light of the uncertainty with respect to the proper application of Section 409A of the Code, the Company reserves the right to make amendments to this Plan and grants hereunder as the Company deems necessary or
        desirable to avoid the imposition of taxes or penalties under Section 409A of the Code.  In any case, a Participant will be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on a Participant or for a
        Participant’s account in connection with this Plan and grants hereunder (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any of its affiliates will have any obligation to indemnify or otherwise hold a
        Participant harmless from any or all of such taxes or penalties.

    

    

    18.          Amendments.

    

    

    (a)          The Board may at any time and from time to time amend
        this Plan in whole or in part; provided, however, that if an amendment to this Plan, for
        purposes of applicable stock exchange rules and except as permitted under Section 11 of this Plan, (i) would materially increase the benefits accruing
        to Participants under this Plan, (ii) would materially increase the number of securities which may be issued under this Plan, (iii) would materially modify the requirements for participation in this Plan, or (iv) must otherwise be approved by the
        Stockholders in order to comply with applicable law or the rules of the NASDAQ Stock Market, or, if the shares of Common Stock are not traded on the NASDAQ Stock Market, the principal national securities exchange upon which the shares of Common
        Stock are traded or quoted, all as determined by the Board, then, such amendment will be subject to Stockholder approval and will not be effective unless and until such approval has been obtained.

    

    

    
      18

      
        

    

    (b)          Except in connection with a corporate transaction or
        event described in Section 11 of this Plan or in connection with a Change in Control, the terms of outstanding awards may not be amended to reduce the
        Option Price of outstanding Option Rights or the Base Price of outstanding Appreciation Rights, or cancel outstanding “underwater” Option Rights or Appreciation Rights in exchange for cash, other awards or Option Rights or Appreciation Rights with
        an Option Price or Base Price, as applicable, that is less than the Option Price of the original Option Rights or Base Price of the original Appreciation Rights, as applicable, without Stockholder approval.  This Section 18(b) is intended to prohibit the repricing of “underwater” Option Rights and Appreciation Rights and will not be construed to prohibit the adjustments provided for in Section 11 of this Plan.  Notwithstanding any provision of this Plan to the contrary, this Section 18(b) may not be amended without approval by the Stockholders.

    

    

    (c)          If permitted by Section 409A of the Code, but subject
        to the paragraph that follows, including in the case of termination of employment or service, or in the case of unforeseeable emergency or other circumstances or in the event of a Change in Control, to the extent a Participant holds an Option Right
        or Appreciation Right not immediately exercisable in full, or any Restricted Stock as to which the substantial risk of forfeiture or the prohibition or restriction on transfer has not lapsed, or any Restricted Stock Units as to which the
        Restriction Period has not been completed, or any Cash Incentive Awards, Performance Shares or Performance Units which have not been fully earned, or any dividend equivalents or other awards made pursuant to Section 9 of this Plan subject to any vesting schedule or transfer restriction, or who holds shares of Common Stock subject to any transfer restriction imposed pursuant to Section 15(b) of this Plan, the Committee may, in its sole discretion, provide for continued vesting or accelerate the time at which such Option Right,
        Appreciation Right or other award may be exercised or the time at which such substantial risk of forfeiture or prohibition or restriction on transfer will lapse or the time when such Restriction Period will end or the time at which such Cash
        Incentive Awards, Performance Shares or Performance Units will be deemed to have been fully earned or the time when such transfer restriction will terminate or may waive any other limitation or requirement under any such award.

    

    

    (d)          Subject to Section 18(b) of this Plan, the Committee may amend the terms of any award theretofore granted under this Plan prospectively or retroactively.  Except for adjustments made pursuant to Section 11 of this Plan, no such amendment will impair the rights
        of any Participant without his or her consent.  The Board may, in its discretion, terminate this Plan at any time.  Termination of this Plan will not affect the rights of Participants or their successors under any awards outstanding hereunder and
        not exercised in full on the date of termination.

    

    

    19.          Governing Law.  This Plan and all grants and awards and actions taken hereunder will be governed by and construed in accordance with the internal substantive laws of the State of Delaware.

    

    

    
      19

      
        

    

    20.          Effective Date/Termination.  This Plan will be effective as of the Effective Date; provided, however, that no grants will be made under this Plan prior to the Pricing Date.  Furthermore, no grant will be made under this Plan on or after the tenth anniversary of the Effective Date, but all
        grants made prior to such date will continue in effect thereafter subject to the terms thereof and of this Plan.

    

    

    21.          Miscellaneous Provisions.

    

    

    (a)          The Company will not be required to issue any
        fractional shares of Common Stock pursuant to this Plan.  The Committee may provide for the elimination of fractions or for the settlement of fractions in cash.

    

    

    (b)          This Plan will not confer upon any Participant any
        right with respect to continuance of employment or other service with the Company or any Subsidiary, nor will it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate such Participant’s employment or
        other service at any time.

    

    

    (c)          Except with respect to Section 21(e) of this Plan, to the extent that any provision of this Plan would prevent any Option Right that was intended to qualify as an Incentive Stock Option from qualifying
        as such, that provision will be null and void with respect to such Option Right.  Such provision, however, will remain in effect for other Option Rights and there will be no further effect on any provision of this Plan.

    

    

    (d)          No award under this Plan may be exercised by the
        holder thereof if such exercise, and the receipt of cash or stock thereunder, would be, in the opinion of counsel selected by the Company, contrary to law or the regulations of any duly constituted authority having jurisdiction over this Plan.

    

    

    (e)          Absence on leave approved by a duly constituted
        officer of the Company or any of its Subsidiaries will not be considered interruption or termination of service of any employee for any purposes of this Plan or awards granted hereunder.

    

    

    (f)          No Participant will have any rights as a Stockholder
        with respect to any shares of Common Stock subject to awards granted to him or her under this Plan prior to the date as of which he or she is actually recorded as the holder of such shares of Common Stock upon the stock records of the Company.

    

    

    (g)          The Committee may condition the grant of any award or
        combination of awards authorized under this Plan on the surrender or deferral by the Participant of his or her right to receive a cash bonus or other compensation otherwise payable by the Company or a Subsidiary to the Participant.

    

    

    (h)          Except with respect to Option Rights and Appreciation
        Rights, the Committee may permit Participants to elect to defer the issuance of shares of Common Stock under this Plan pursuant to such rules, procedures or programs as it may establish for purposes of this Plan and which are intended to comply
        with the requirements of Section 409A of the Code.  The Committee also may provide that deferred issuances and settlements include the crediting of dividend equivalents or interest on the deferral amounts.

    

    

    
      20

      
        

    

    (i)          If any provision of this Plan is or becomes invalid
        or unenforceable in any jurisdiction, or would disqualify this Plan or any award under any law deemed applicable by the Committee, such provision will be construed or deemed amended or limited in scope to conform to applicable laws or, in the
        discretion of the Committee, it will be stricken and the remainder of this Plan will remain in full force and effect.  Notwithstanding anything in this Plan or an Evidence of Award to the contrary, nothing in this Plan or in an Evidence of Award
        prevents a Participant from providing, without prior notice to the Company, information to governmental authorities regarding possible legal violations or otherwise testifying or participating in any investigation or proceeding by any governmental
        authorities regarding possible legal violations, and for purpose of clarity a Participant is not prohibited from providing information voluntarily to the Securities and Exchange Commission pursuant to Section 21F of the Exchange Act.

    

    

    (j)          An award will not be effective unless such award is
        in compliance with all applicable federal and state securities laws, rules and regulations of any governmental body, and the requirements of any stock exchange or automated quotation system upon which the shares of Common Stock may then be listed
        or quoted, as they are in effect on the date of grant of the award and also on the date of exercise or other issuance. Notwithstanding any other provision in this Plan, the Company will have no obligation to issue or deliver certificates for shares
        of Common Stock under this Plan prior to (i) obtaining any approvals from governmental agencies that the Company determines are necessary or advisable, and/or (ii) compliance with any exemption, completion of any registration or other qualification
        of such shares of Common Stock under any foreign, state or federal law or ruling of any governmental body that the Company determines to be necessary or advisable. The inability of the Company to obtain from any regulatory body having jurisdiction
        the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares hereunder shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such
        requisite authority shall not have been obtained. The Company will be under no obligation to register the shares of Common Stock with the Securities and Exchange Commission or to effect compliance with the exemption, registration, qualification or
        listing requirements of any state securities laws, stock exchange or automated quotation system, and the Company will have no liability for any inability or failure to do so.

    

    

    22.          Stock-Based Awards in Substitution for Awards Granted by Another Company.  Notwithstanding anything in this Plan to the contrary:

    

    

    (a)          Awards may be granted under this Plan in substitution
        for or in conversion of, or in connection with an assumption of, stock options, stock appreciation rights, restricted stock, restricted stock units or other stock or stock-based awards held by awardees of an entity engaging in a corporate
        acquisition or merger transaction with the Company or any Subsidiary.  Any conversion, substitution or assumption will be effective as of the close of the merger or acquisition, and, to the extent applicable, will be conducted in a manner that
        complies with Section 409A of the Code.  The awards so granted may reflect the original terms of the awards being assumed or substituted or converted for and need not comply with other specific terms of this Plan, and may account for shares of
        Common Stock substituted for the securities covered by the original awards and the number of shares subject to the original awards, as well as any exercise or purchase prices applicable to the original awards, adjusted to account for differences in
        stock prices in connection with the transaction.

    

    

    
      21

      
        

    

    (b)          In the event that a company acquired by the Company
        or any Subsidiary or with which the Company or any Subsidiary merges has shares available under a pre-existing plan previously approved by stockholders and not adopted in contemplation of such acquisition or merger, the shares available for grant
        pursuant to the terms of such plan (as adjusted, to the extent appropriate, to reflect such acquisition or merger) may be used for awards made after such acquisition or merger under this Plan; provided, however, that awards using such available shares may not be made after the date awards or grants could have been made under the terms
        of the pre-existing plan absent the acquisition or merger, and may only be made to individuals who were not employees or directors of the Company or any Subsidiary prior to such acquisition or merger.

    

    

    (c)          Any shares of Common Stock that are issued or
        transferred by, or that are subject to any awards that are granted by, or become obligations of, the Company under Sections 22(a) or 22(b) of this Plan will not reduce the shares of Common Stock available for issuance or transfer under this Plan or otherwise count against the limits
        contained in Section 3 of this Plan.  In addition, no shares of Common Stock subject to an award that is granted by, or becomes an obligation of, the
        Company under Sections 22(a) or 22(b) of this Plan
        will be added to the aggregate limit contained in Section 3(a)(i) of this Plan.

    

    

    23.          Lock-Up Agreement.  It shall be a condition to a Participant’s receipt of any award under this Plan that: (a) the Participant agree (and the Participant will be deemed by his or her acceptance of such award to
        have agreed) that, in the event of the Company’s initial public offering of shares of Common Stock or any subsequent offering of securities of the Company (an “Offering”), if requested by the Company, the Board and/or any underwriters managing the
        Offering, the Participant will not, and the Participant will enter into a lock-up agreement in the form prepared by the Company and/or the underwriters pursuant to which the Participant will not, (i) lend, offer, pledge, sell, contract to sell,
        sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities of the
        Company convertible into or exercisable or exchangeable for shares of Common Stock (and excluding any shares of Common Stock subsequently purchased by the Participant on the open market or in such offering), or (ii) enter into any swap or other
        arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such shares of Common Stock, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of shares of
        Common Stock or other securities, in cash or otherwise, without the prior consent of the Company or the underwriter, provided that such lock-up time period will not exceed 180 days from the effective date of such initial public offering, or, in the
        case of subsequent offerings of securities, 90 days from the effective date of such subsequent offering and any extension required by rules and regulations applicable to the underwriters; and (b) the Participant will agree (and the Participant will
        be deemed by his or her acceptance of such award to have agreed), in the event of an Offering, to waive any registration rights he or she may have with respect to any Offering of shares of Common Stock, whether pursuant to any stockholders
        agreement of the Company or otherwise.

    

    

  

  22

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