Document:

EXHIBIT
4.1

 

VOTING
AGREEMENT

 

THIS
VOTING AGREEMENT (this “Agreement”) is made and entered into as of January 6, 2017 by and between Meda
Consumer Healthcare Inc., a Delaware corporation (the “Buyer”), and the undersigned stockholder (“Stockholder”)
of ProPhase Labs, Inc., a Delaware corporation (the “Company”).

 

RECITALS

 

A.
The Company and the Buyer intend to enter into an Asset Purchase Agreement of even date herewith (the “Asset Purchase
Agreement”), which provides for the (i) sale and transfer of certain assets from the Company to the Buyer, (ii) assumption
of certain liabilities by the Buyer and (iii) assignment to the Buyer and assumption by the Buyer of certain agreements (collectively,
the “Asset Purchase”), on the terms and subject to the conditions set forth therein;

 

B.
Stockholder is the beneficial owner (for this and other terms of correlative meaning used throughout this agreement, as defined
in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of such number of
Shares (as defined below) as is indicated on the signature page of this Agreement;

 

C.
Stockholder believes that it is in his, her or its best interest, as a stockholder in the Company, that the Asset Purchase be
consummated;

 

D.
As a condition to its willingness to enter into the Asset Purchase Agreement, the Buyer has required that Stockholder undertake
in advance to vote its shares in favor of the Asset Purchase; and

 

E.
For these reasons, and in consideration of the execution of the Asset Purchase Agreement by the Buyer, Stockholder, solely in
his, her or its capacity as a stockholder of the Company, agrees and undertakes to vote the Shares (as defined below) in favor
of the Asset Purchase and the approval of the Asset Purchase Agreement on the terms and subject to the conditions set forth in
this Agreement.

 

NOW,
THEREFORE, intending to be legally bound, the parties hereto agree as follows:

 

1.
Certain Definitions. Capitalized terms not defined herein shall have the meanings ascribed to them in the Asset Purchase
Agreement. For purposes of this Agreement:

 

(a)
“Expiration Date” shall mean the first to occur of (i) the termination of the Asset Purchase Agreement pursuant
to Article 7 thereof, or (ii) such date and time as the Asset Purchase shall become effective in accordance with the terms and
provisions of the Asset Purchase Agreement.

 

(b)
“Shares” shall mean: (i) all equity securities of the Company (including shares of common stock and all options,
warrants, restricted common stock and other rights to acquire shares of common stock) owned by Stockholder as of the date of this
Agreement; and (ii) all additional equity securities of the Company (including all additional shares of common stock and all additional
options, warrants, restricted common stock and other rights to acquire shares of common stock) of which Stockholder acquires ownership
during the period from the date of this Agreement through the Expiration Date; provided, however, that, when used
with respect to the voting, consenting or taking action by or in the name of Stockholder or any other Person hereunder with respect
to Shares, the term “Shares” shall only include the securities covered by clause (i) or (ii) that are entitled to
be voted, or for which Stockholder or such other Person is entitled to consent or act, with respect thereto (which shall not include
Shares that are subject to issuance upon the exercise of options, warrants and such other rights to acquire shares of common stock),
and nothing herein shall require (and Stockholder undertakes no obligation and makes no representation or warranty related to)
the conversion, exercise or exchange of any security for which Stockholder has beneficial ownership into securities entitled to
be voted, or for which Stockholder or such other Person is entitled to consent or act, with respect thereto.

 

    	 

    	 

    

 

(c)
“Transfer”. A Person shall be deemed to have effected a “Transfer” of a security
if such Person directly or indirectly: (i) sells, pledges, encumbers, grants an option with respect to, transfers or disposes
of such security or any interest in such security; or (ii) enters into an agreement or commitment providing for the sale of, pledge
of, encumbrance of, grant of an option with respect to, transfer of or disposition of such security or any interest in such security.

 

2.
Restrictions on Shares.

 

(a)
Stockholder shall not, directly or indirectly, during the period from the date of this Agreement through the Expiration Date,
cause or permit any Transfer of any of the Shares to be effected, except for any Transfer (i) to any other Person if (A) such
Person, prior to or concurrently with such Transfer, shall have executed a voting undertaking on the same terms and conditions
of this Agreement to which the Buyer is a beneficiary with respect to such Shares, and (B) Stockholder shall continue to be jointly
and severally liable to any breach of such voting undertaking by such other Person; or (ii) to an Affiliate of the Stockholder,
if (A) upon such Transfer the Stockholder shall continue to be a beneficial owner of such Shares; and (B) Stockholder shall continue
to be jointly and severally liable to any breach of such voting undertaking by such Affiliate.

 

(b)
Stockholder shall not, directly or indirectly, during the period from the date of this Agreement through the Expiration Date,
deposit (or permit the deposit of) any Shares in a voting trust or grant any proxy or enter into any voting agreement or similar
agreement in contravention of the obligations of Stockholder under this Agreement with respect to any of the Shares.

 

(c)
Stockholder shall not take any action that would (i) make any representation or warranty contained in this Agreement to be untrue
or incorrect; or (ii) have the effect of impairing the ability of Stockholder to perform its obligations under this Agreement
or preventing or delaying the consummation of any of the transactions contemplated hereby or by the Asset Purchase Agreement.

 

    	2

    	 

    

 

3.
Agreement to Vote Shares; No Solicitation. At every meeting of the stockholders of the Company called, and at every postponement
or adjournment thereof, and on every action or approval by written resolution or consent of the stockholders of the Company, or
in any other circumstance in which the vote, consent or other approval of the stockholders of the Company is sought, until the
Expiration Date, Stockholder (solely in its, his or her capacity as such) shall vote, or cause the Shares to be voted: (i) in
favor of the approval of the Asset Purchase Agreement and the Asset Purchase and all the transactions contemplated by the Asset
Purchase Agreement; and (ii) against any Seller Acquisition Proposal (other than the Asset Purchase Agreement or the transactions
contemplated thereby, including the Asset Purchase). Except as contemplated by this Agreement, Stockholder has not (a) entered
into, and shall not enter into at any time while this Agreement remains in effect, any voting agreement or voting trust with respect
to the Shares that would prohibit, undermine, limit or otherwise adversely affect its compliance with its obligations pursuant
to this Agreement, or (b) granted, and shall not grant at any time while this Agreement remains in effect, a proxy or power of
attorney with respect to the Shares, in either case, which is inconsistent with its obligations pursuant to this Agreement.

 

4.
Non-Solicitation; No Effect on Fiduciary Relationship; No Other Relationship.

 

(a)
Between the date of this Agreement and the Expiration Date, Stockholder shall not take any action that would constitute a violation
of the provisions of Section 6.10 of the Asset Purchase Agreement if taken by the Company, in each case with the limitations and
exceptions of such provisions contemplated thereby that are applicable to the Company or its board of directors (including the
right to participate in discussions or negotiations on the circumstances set forth therein) being similarly applicable to Stockholder.
Notwithstanding anything to the contrary set forth herein, neither Stockholder nor any of its representatives shall have any liability
pursuant to this Section 4(a) upon the occurrence of the Expiration Date; provided, however, that this sentence shall not limit
the liability of Stockholder for any willful breach of this Section 4(a) by Stockholder. For purposes of this Section 4(a), “willful
breach” shall mean an act or failure to act of such person with the actual knowledge that the taking of such act or the
failure to take such act would constitute a material breach of this Section 4(a).

 

(b)
Nothing in this Agreement shall restrict or limit the ability of any Person who is an officer or director of the Company to take
any action solely in his or her capacity as an officer or director of the Company to the extent expressly permitted by the Asset
Purchase Agreement or otherwise required by fiduciary duties under applicable law and none of such actions in such capacity shall
be deemed to constitute a breach of this Agreement. Nothing contained in this Agreement shall be deemed to vest in the Buyer or
any other Person any direct or indirect ownership or incidence of ownership of or with respect to any Shares. All rights, ownership
and economic benefits of and relating to the Shares shall remain vested in and belong to Stockholder, and neither the Buyer nor
any other Person shall have any authority to exercise any power or authority to direct Stockholder in the voting of any of the
Shares, except as otherwise specifically provided herein, or in the performance of Stockholder’s duties or responsibilities
as a stockholder of the Company.

 

    	3

    	 

    

 

5.
Representations and Warranties of Stockholder. Stockholder hereby represents, warrants and covenants to the Buyer as follows:
(i) Stockholder is the beneficial owner of the Shares indicated on the signature page of this Agreement, which are free and clear
of any liens, adverse claims, charges or other encumbrances (except as such encumbrances arising under securities laws or for
such liens, adverse claims, charges or other encumbrances as would not prohibit Stockholder’s compliance with its obligations
pursuant to this Agreement). To Stockholder’s knowledge, Stockholder does not beneficially own any securities of the Company
other than the Shares indicated on the signature page of this Agreement. Stockholder has full power and authority to make, enter
into and carry out the terms and conditions under this Agreement. The execution and delivery of this Agreement by Stockholder
does not, and Stockholder’s performance of its obligations under this Agreement will not: (a) conflict with or violate any
order, decree or judgment applicable to Stockholder or to the Shares; or (b) result in any breach of or constitute a default (with
notice or lapse of time, or both) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, or result in the creation of any encumbrance on, any of the Shares pursuant to any agreement to which Stockholder is a party
or by which Stockholder is bound or affected, except in each case as would not prohibit Stockholder’s compliance with its
obligations pursuant to this Agreement.

 

6.
Additional Documents. Stockholder (in his, her or its capacity as such) and the Buyer hereby covenant and agree to execute
and deliver any additional documents reasonably necessary to carry out the purpose and the intent of this Agreement. Without limiting
the generality or effect of the foregoing or any other obligation of Stockholder hereunder, Stockholder hereby authorizes the
Buyer to deliver a copy of this Agreement to the Company and hereby agrees that each of the Company and the Buyer may rely upon
such delivery as conclusively evidencing the consents, waivers and terminations of Stockholder referred to herein, in each case
for purposes of all agreements and instruments to which such elections, consents, waivers and/or terminations are applicable or
relevant. Notwithstanding anything to the contrary, Stockholder shall not be required to incur any expenses in connection with
this Section 6.

 

7.
Legending of Shares. If so requested by the Buyer, Stockholder agrees that the Shares shall bear a legend stating that
they are subject to this Agreement. Upon request of the Stockholder at any time following the termination of this Agreement, the
Buyer shall take all actions required to promptly cause any such legend to be removed from any certificate for the Shares.

 

8.
Termination. This Agreement shall terminate and shall have no further force or effect as of the Expiration Date; provided,
however, that the last sentence of Section 7 shall survive any termination of this Agreement.

 

9.
Miscellaneous.

 

(a)
Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future
Law, and if the rights or obligations of any party hereto under this Agreement will not be materially and adversely affected thereby,
(i) such provision will be fully severable, (ii) this Agreement will be construed and enforced as if such provision had never
comprised a part hereof, (iii) the remaining provisions of this Agreement will remain in full force and effect and will not be
affected by such provision or its severance therefrom and (iv) in lieu of such provision, there will be added automatically as
a part of this Agreement a legal, valid and enforceable provision as similar in terms to such provision as may be possible.

 

    	4

    	 

    

 

(b)
Binding Effect and Assignment. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and permitted assigns, but neither this Agreement nor any of the rights,
interests or obligations of the parties hereto may be assigned by either of the parties without prior written consent of the other.

 

(c)
Amendments and Modification. This Agreement may not be modified, amended, altered or supplemented except upon the execution
and delivery of a written agreement executed by the parties hereto.

 

(d)
Specific Performance; Injunctive Relief. The parties hereto agree that irreparable damage would occur in the event that
any provision of this Agreement were not performed in accordance with its specific terms or were otherwise breached. It is accordingly
agreed that the parties shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions hereof in any court having jurisdiction relating to this Agreement as provided in clause
(g) hereof without the necessity of demonstrating damages or posting a bond, this being in addition to any other remedy to which
they are entitled at law or in equity.

 

(e)
Notices. Any notice required to be given hereunder shall be sufficient if in writing, and sent by facsimile or email transmission,
by reliable overnight delivery service (with proof of service) or hand delivery (provided that any notice received on any non-Business
Day or any Business Day after 5:00 p.m. (addressee’s local time) shall be deemed to have been received at 9:00 a.m. (addressee’s
local time) on the next Business Day unless the notice is required by this Agreement to be delivered within a number of hours
or calendar days), addressed as follows (or at such other address, email address or facsimile number for a party as shall be specified
by like notice):

 

if
to the Buyer, to:

 

Meda
Consumer Healthcare Inc.

781
Chestnut Ridge Road

EOB
245

Morgantown,
WV 26505

Attention:
Joseph Duda

Facsimile:
(304) 554-4342

 

with
a copy (which shall not constitute notice) to each of:

 

Mylan
Inc.

1000
Mylan Boulevard

Canonsburg,
Pennsylvania 15317

Attention:
Global General Counsel

Facsimile:
(724) 485-6358

 

    	5

    	 

    

 

Hogan
Lovells US LLP

Columbia
Square

555
Thirteenth Street, NW

Washington,
DC 20004

Attention:
Daniel Keating

Facsimile:
(202) 637-5910

Email:
daniel.keating@hoganlovells.com

 

if
to Stockholder, to:

 

the
address set forth on the signature page of this Agreement, with a copy (which shall not constitute notice) to:

 

Reed
Smith LLP

599
Lexington Avenue

New
York, New York 10022

Attention:
Herbert F. Kozlov, Esq.

Facsimile:
(212) 521-5450

E-mail:
HKozlov@ReedSmith.com

 

(f)
Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of Delaware,
without reference to rules of conflicts of law.

 

(g)
CONSENT TO JURISDICTION AND SERVICE OF PROCESS. EACH PARTY HERETO CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR
FEDERAL COURT LOCATED WITHIN THE STATE OF DELAWARE AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY BE LITIGATED ONLY IN SUCH COURTS. EACH PARTY HERETO ACCEPTS FOR ITSELF AND IN CONNECTION
WITH ITS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF SUCH COURTS AND WAIVES ANY DEFENSE OF FORUM
NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. EACH PARTY HERETO IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF SUCH COURTS IN ANY SUCH ACTION
OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO SUCH PARTY AT THE ADDRESS
SPECIFIED IN THIS AGREEMENT, SUCH SERVICE TO BECOME EFFECTIVE FIFTEEN (15) CALENDAR DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL
IN ANY WAY BE DEEMED TO LIMIT THE ABILITY OF EITHER PARTY HERETO TO SERVE ANY SUCH LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS
IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

    	6

    	 

    

 

(h)
Entire Agreement. This Agreement contains the entire understanding of the parties in respect of the subject matter hereof
and supersedes all prior negotiations and understandings between the parties with respect to such subject matter.

 

(i)
Effect of Headings. Headings of the Articles and Sections of this Agreement are for convenience of the parties only and
shall be given no substantive or interpretive effect whatsoever.

 

(j)
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but
all of which together will constitute one and the same instrument and shall become effective when one or more counterparts have
been signed by each of the parties and delivered to the other party, it being understood that all parties need not sign the same
counterpart. This Agreement or any counterpart may be executed and delivered by facsimile copies or delivered by electronic communications
by portable document format (.pdf), each of which shall be deemed an original.

 

{Signatures
on Next Page}

 

    	7

    	 

    

 

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

 

	Meda
    Consumer Healthcare Inc. 	 	STOCKHOLDER
	By:	/s/
    Jeffrey N. Hostler	 	By:	/s/
    Jason Barr
	Signature
    of Authorized Signatory	 	Signature
	Name:	Jeffrey
    N. Hostler	 	Name:	Jason
    Barr
	Title:	Chief
    Financial Officer	 	Title:	Director

 

	 	 
	 	 
	 	 
	 	Print
    Address
	 	 
	 	 
	 	Telephone
	 	 
	 	 
	 	Facsimile
    No.
	 	 
	 	 
	 	Email
    Address
	 	 
	 	Shares
    beneficially owned:
	 	______________
    shares of common stock
	 	______________
    shares of common stock issuable upon exercise of outstanding options
	 	______________
    shares of restricted common stock

 

{SIGNATURE
PAGE TO VOTING AGREEMENT}

 

    	 

    	 

    

 

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

 

	Meda
    Consumer Healthcare Inc. 	 	STOCKHOLDER
	By:	/s/
    Jeffrey N. Hostler	 	By:	/s/
    Mark Burnett
	Signature
    of Authorized Signatory	 	Signature
	Name:	Jeffrey
    N. Hostler	 	Name:	Mark
    Burnett
	Title:	Chief
    Financial Officer	 	Title:	Director

 

	 	 
	 	 
	 	 
	 	Print
    Address
	 	 
	 	 
	 	Telephone
	 	 
	 	 
	 	Facsimile
    No.
	 	 
	 	 
	 	Email
    Address
	 	 
	 	Shares
    beneficially owned:
	 	______________
    shares of common stock
	 	______________
    shares of common stock issuable upon exercise of outstanding options
	 	______________
    shares of restricted common stock

 

{SIGNATURE
PAGE TO VOTING AGREEMENT}

 

    	 

    	 

    

 

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

 

	Meda
    Consumer Healthcare Inc. 	 	STOCKHOLDER
	By:	/s/
    Jeffrey N. Hostler	 	By:	/s/
    Robert V. Cuddihy, Jr.
	Signature
    of Authorized Signatory	 	Signature
	Name:	Jeffrey
    N. Hostler	 	Name:	Robert
    V. Cuddihy
	Title:	Chief
    Financial Officer	 	Title:	Executive
    Vice President, Chief Operating Officer and 
	 	 	 	 	Chief
    Financial Officer

 

	 	 
	 	 
	 	 
	 	Print
    Address
	 	 
	 	 
	 	Telephone
	 	 
	 	 
	 	Facsimile
    No.
	 	 
	 	 
	 	Email
    Address
	 	 
	 	Shares
    beneficially owned:
	 	______________
    shares of common stock
	 	______________
    shares of common stock issuable upon exercise of outstanding options
	 	______________
    shares of restricted common stock

 

{SIGNATURE
PAGE TO VOTING AGREEMENT}

 

    	 

    	 

    

 

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

 

	Meda
    Consumer Healthcare Inc. 	 	STOCKHOLDER
	By:	/s/
    Jeffrey N. Hostler	 	By:	/s/
    Louis Gleckel, MD
	Signature
    of Authorized Signatory	 	Signature
	Name:	Jeffrey
    N. Hostler	 	Name:	Louis
    Gleckel, MD
	Title:	Chief
    Financial Officer	 	Title:	Director

 

	 	 
	 	 
	 	 
	 	Print
    Address
	 	 
	 	 
	 	Telephone
	 	 
	 	 
	 	Facsimile
    No.
	 	 
	 	 
	 	Email
    Address
	 	 
	 	Shares
    beneficially owned:
	 	______________
    shares of common stock
	 	______________
    shares of common stock issuable upon exercise of outstanding options
	 	______________
    shares of restricted common stock

 

{SIGNATURE
PAGE TO VOTING AGREEMENT}

 

    	 

    	 

    

 

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

 

	Meda
    Consumer Healthcare Inc. 	 	STOCKHOLDER
	By:	/s/
    Jeffrey N. Hostler	 	By:	/s/
    Ted Karkus
	Signature
    of Authorized Signatory	 	Signature
	Name:	Jeffrey
    N. Hostler	 	Name:	Ted
    Karkus
	Title:	Chief
    Financial Officer	 	Title:	Chairman
    of the Board
	 	 	 	 	Chief
    Executive Officer

 

	 	 
	 	 
	 	 
	 	Print
    Address
	 	 
	 	 
	 	Telephone
	 	 
	 	 
	 	Facsimile
    No.
	 	 
	 	 
	 	Email
    Address
	 	 
	 	Shares
    beneficially owned:
	 	______________
    shares of common stock
	 	______________
    shares of common stock issuable upon exercise of outstanding options
	 	______________
    shares of restricted common stock

 

{SIGNATURE
PAGE TO VOTING AGREEMENT}

 

    	 

    	 

    

 

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

 

	Meda
    Consumer Healthcare Inc. 	 	STOCKHOLDER
	By:	/s/
    Jeffrey N. Hostler	 	By:	/s/
    Mark Leventhal
	Signature
    of Authorized Signatory	 	Signature
	Name:	Jeffrey
    N. Hostler	 	Name:	Mark
    Leventhal
	Title:	Chief
    Financial Officer	 	Title:	Director

 

	 	 
	 	 
	 	 
	 	Print
    Address
	 	 
	 	 
	 	Telephone
	 	 
	 	 
	 	Facsimile
    No.
	 	 
	 	 
	 	Email
    Address
	 	 
	 	Shares
    beneficially owned:
	 	______________
    shares of common stock
	 	______________
    shares of common stock issuable upon exercise of outstanding options
	 	______________
    shares of restricted common stock

 

{SIGNATURE
PAGE TO VOTING AGREEMENT}

 

    	 

    	 

    

 

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

 

	Meda
    Consumer Healthcare Inc. 	 	STOCKHOLDER
	By:	/s/
    Jeffrey N. Hostler	 	By:	/s/
    James McCubbin
	Signature
    of Authorized Signatory	 	Signature
	Name:	Jeffrey
    N. Hostler	 	Name:	James
    McCubbin
	Title:	Chief
    Financial Officer	 	Title:	Director

 

	 	 
	 	 
	 	 
	 	Print
    Address
	 	 
	 	 
	 	Telephone
	 	 
	 	 
	 	Facsimile
    No.
	 	 
	 	 
	 	Email
    Address
	 	 
	 	Shares
    beneficially owned:
	 	______________
    shares of common stock
	 	______________
    shares of common stock issuable upon exercise of outstanding options
	 	______________
    shares of restricted common stock

 

{SIGNATURE
PAGE TO VOTING AGREEMENT}EXHIBIT
4.2

 

AMENDMENT
NO. 1 TO

AMENDED
AND RESTATED RIGHTS AGREEMENT

 

This
AMENDMENT NO. 1 (this “Amendment”) to the Amended and Restated Rights Agreement, dated as of June 18, 2014
(the “Rights Agreement”), by and between ProPhase Labs, Inc., a Delaware corporation (the “Company”),
and American Stock Transfer & Trust Company, LLC, as rights agent (the “Rights Agent”), is entered
into January 6, 2017. Capitalized terms used in this Amendment and not otherwise defined herein shall have the meanings given
to them in the Rights Agreement.

 

WITNESSETH:

 

WHEREAS,
the Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the
Company and its stockholders to amend the Rights Agreement as set forth herein immediately prior to and in connection with the
execution of the Asset Purchase Agreement, dated as of January 6, 2017 (as amended, modified or supplemented, from time to time,
the “Asset Purchase Agreement”), by and among the Company, Meda Consumer Healthcare Inc. (“Meda”)
and Mylan Inc. (“Mylan”), pursuant to which the Company will sell to Meda substantially all of the assets of
the Company;

 

WHEREAS,
the Company desires to amend the Rights Agreement pursuant to Section 27 of the Rights Agreement, immediately prior to entering
into the Asset Purchase Agreement, to facilitate the transactions contemplated by the Asset Purchase Agreement;

 

WHEREAS,
pursuant to Section 27 of the Rights Agreement, the Company has delivered to the Rights Agent a certificate signed by an appropriate
officer of the Company which states that this Amendment is in compliance with the terms of Section 27 of the Rights Agreement;
and

 

WHEREAS,
pursuant to resolutions adopted at a duly convened special meeting of the Board held on January 5, 2017, the Board has determined
that it is in the best interests of the Company and its stockholders, and consistent with the objectives of the Board in adopting
the Rights Agreement, to amend the Rights Agreement in the manner set forth herein immediately prior to entering into the Asset
Purchase Agreement to except from the operation of the Rights Agreement the Asset Purchase Agreement, the Voting Agreements (as
defined below) and any and all transactions contemplated by the Asset Purchase Agreement and the Voting Agreements;

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual agreements herein set forth, the parties hereby agree as follows:

 

 1. Amendment to Section 1

 

a.
The definition of “Acquiring Person” in Section 1(a) of the Rights Agreement is hereby amended by adding the
following sentence to the end of said definition as subsection 1(a)(vi):

 

“Notwithstanding
anything in this Agreement to the contrary, none of Meda, Mylan or any of their respective Affiliates or Associates shall be or
become an Acquiring Person, and the term “Acquiring Person” shall not include any of Meda, Mylan or any of their respective
Affiliates or Associates, solely by reason of (i) the approval, execution, delivery, performance or public announcement of the
Asset Purchase Agreement (including any amendments, modifications or supplements thereto), (ii) the consummation of the asset
sale provided for by the Asset Purchase Agreement, (iii) the consummation of any other transactions contemplated by the Asset
Purchase Agreement, including, but not limited to, the potential future sale of the manufacturing facility owned by the Company
and its affiliate or (iv) the execution, delivery or performance of the Voting Agreements received by Meda from certain officers
and directors of the Company.”

 

    	 	 	 

    	 

    

 

b.
The definition of “Beneficial Owner” of and “Beneficially Own” securities in Section 1(c) is hereby
amended by adding the following sentence at the end of Section 1(c):

 

“Notwithstanding
anything in this Agreement to the contrary, the definition of “Beneficial Owner” of and “Beneficially Own”
securities shall not include any beneficial ownership of securities that may result from the execution, delivery or performance
of the Voting Agreements received by Meda from certain officers and directors of the Company in connection with the execution
of the Asset Purchase Agreement.”

 

c.
Section 1 of the Rights Agreement is hereby amended by adding the following definitions to the end of Section 1:

 

“Asset
Purchase Agreement” shall mean that certain Asset Purchase Agreement, dated as of January 6, 2017, by and among the
Company, Meda and Mylan (as such agreement may be amended, modified or supplemented, from time to time).

 

“Meda”
shall mean Meda Consumer Healthcare Inc., a Delaware corporation. “Mylan” shall mean Mylan Inc., a Pennsylvania
corporation.

 

“Voting
Agreements” shall mean those certain Voting Agreements, dated as of January 6, 2017, received by Meda from certain officers
and directors of the Company providing that, among other things, the signatory agrees to vote in favor of the transactions contemplated
by the Asset Purchase Agreement.

 

 2. Amendment to Section 11(a)(ii)

 

Section
11(a)(ii) of the Rights Agreement is hereby amended by adding the following sentence to the end of Section 11(a)(ii):

 

“Notwithstanding
anything in this Agreement to the contrary, none of (i) the approval, execution, delivery, performance or public announcement
of the Asset Purchase Agreement (including any amendments, modifications or supplements thereto), (ii) the consummation of the
asset sale provided for by the Asset Purchase Agreement, (iii) the consummation of any other transactions contemplated by the
Asset Purchase Agreement, including, but not limited to, the potential future sale of the manufacturing facility owned by the
Company and its affiliate or (iv) the execution, delivery or performance of the Voting Agreements received by Meda from certain
officers and directors of the Company shall cause the Rights to be adjusted or become exercisable in accordance with this Section
11(a)(ii).”

 

    	 	 	 

    	 

    

 

 3. Amendment to Section 13(i)

 

Section
13(i) of the Rights Agreement is hereby amended by adding the following sentence to the end of Section 13(i):

 

“Notwithstanding
anything in this Agreement to the contrary, (A) the provisions of Section 13(i) shall not be applicable to the asset sale provided
for by the Asset Purchase Agreement or as a result of the execution, delivery or performance of the Voting Agreements received
by Meda from certain officers and directors of the Company, and (B) provided that neither Meda nor Mylan has become an Acquiring
Person, any other person becoming an Acquiring Person shall not cause the provisions of Section 13(i) to apply to Meda or Mylan
as an “other Person”; provided, that nothing in this clause (B) shall restrict the application of Section 13(i) to
an Acquiring Person or any Affiliates thereof.”

 

 4. Benefits

 

All
of the covenants and provisions of this Amendment 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.

 

 5. Severability

 

If
any term, provision, covenant or restriction of this Amendment 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 Amendment shall
remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

 6. Effectiveness and Effect of Amendment

 

a.
Notwithstanding anything to the contrary set forth in Section 27, this Amendment shall become effective as of the date first
written above, but such effectiveness is contingent upon the execution and delivery of the Asset Purchase Agreement by the
parties thereto. The Company shall notify the Rights Agent via electronic mail of such execution and delivery of the Asset
Purchase Agreement promptly thereafter.

 

b.
Except as specifically modified herein, the Rights Agreement shall not otherwise be supplemented or amended by virtue of this
Amendment, but shall remain in full force and effect. The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, constitute a waiver or amendment of any provision of the Rights Agreement. Upon and
after the effectiveness of this Amendment, each reference in the Rights Agreement to “this Agreement”,
“hereunder”, “hereof” or words of like import referring to the Rights Agreement, and each reference
in any other document to “the Rights Agreement”, “thereunder”, “thereof” or words of like
import referring to the Rights Agreement, shall mean and be a reference to the Rights Agreement as modified
hereby.

 

 7. Governing Law

 

This
Amendment shall be deemed to be a contract made under the laws of the State of Nevada and for all purposes shall be governed by
and construed in accordance with the laws of the State of Nevada applicable to contracts made and to be performed entirely within
State of Nevada.

 

    	 	 	 

    	 

    

 

 8. Descriptive Headings

 

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

 

 9. Counterparts

 

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

 

[Signature
Pages Follow]

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Amendment as of the date set forth in the first paragraph hereof.

 

	 	COMPANY:

	 	 	 
	 	PROPHASE LABS, INC.

 

	 	By:	/s/
    Ted Karkus
	 	Name:	Ted
    Karkus
	 	Title:	Chief
    Executive Officer

 

[Signature
Page to Rights Agreement Amendment]

 

    	 	 	 

    	 

    

 

	 	RIGHTS
    AGENT:
	 	 	 
	 	AMERICAN
    STOCK TRANSFER& TRUST COMPANY, LLC
	 	 	 
	 	By:	/s/
    Paula Caroppoli
	 	Name:	Paul
    Caroppoli
	 	Title:	Senior
Vice President

 

[Signature
Page to Rights Agreement Amendment]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00265-of-00352.parquet"}]]