Document:

Exhibit 4.1

 

PREFERRED STOCK
RIGHTS AGREEMENT

 

This
Preferred Stock Rights Agreement (this “Agreement”), dated as of March 11, 2021, is by and between KBS Fashion
Group Limited, a Republic of the Marshall Islands corporation (the “Company”), and American Stock Transfer &
Trust Company, LLC, a New York limited liability trust company, as rights agent (the “Rights Agent”). Each of
the Company and the Rights Agent are sometimes referred to as a “Party.” All capitalized terms used in this
Agreement have the meanings given to them in Section 1.

 

RECITALS

 

A.
Effective March 11, 2021 (the “Rights Dividend Declaration Date”), the Board of Directors of the Company (the
“Board”) adopted this Agreement and authorized and declared a dividend of one preferred stock purchase right
(a “Right”) for each share of Common Stock outstanding as of the Close of Business on March 31, 2021 (the “Record
Date”). Upon the terms and subject to the conditions of this Agreement, each Right initially represents the right to
purchase one 0.00667 portion of a share of Preferred Stock (as such number may be adjusted pursuant to the provisions
of this Agreement) and has the rights, preferences and privileges set forth in the form of Certificate of Designation of Rights,
Preferences and Privileges of Series B Participating Preferred Stock attached as Exhibit A.

 

B.
The Board further authorized and directed the issuance of one Right (as such number may be adjusted pursuant to the provisions
of this Agreement) with respect to each share of Common Stock that becomes outstanding (whether as an original issuance or from
the Company’s treasury) between the Record Date and, subject to Section 22, the earlier of the Distribution Date and
the Expiration Date.

 

AGREEMENT

 

The
Parties therefore agree as follows:

 

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

 

(a)
“Acquiring Person” means any Person who or that, together with all Affiliates and Associates of such Person,
is the Beneficial Owner of the Triggering Percentage or more of the shares of Common Stock then outstanding, but shall not include
any Exempt Person. Notwithstanding anything in this definition of “Acquiring Person” to the contrary:

 

(i)
no Person who Beneficially Owns, as of the time of the public announcement of this Agreement, the Triggering Percentage or more
of the shares of Common Stock then outstanding shall become an Acquiring Person unless such Person, after the time of the public
announcement of this Agreement, becomes the Beneficial Owner of any additional shares of Common Stock (other than pursuant to a
dividend or distribution paid or made by the Company on the Common Stock in shares of Common Stock or pursuant to a split or subdivision
of the Common Stock), unless, upon becoming the Beneficial Owner of such additional shares of Common Stock, such Person is not
then the Beneficial Owner of the Triggering Percentage or more of the shares of Common Stock then outstanding;

 

    

     

    

 

(ii)
no Person will be deemed to be an Acquiring Person as the result of an acquisition of shares of Common Stock by an Exempt Person
that, by reducing the number of shares of Common Stock then outstanding, increases the proportionate number of shares of Common
Stock that are Beneficially Owned by such Person to the Triggering Percentage or more of the shares of Common Stock then outstanding,
it being understood that if a Person becomes the Beneficial Owner of the Triggering Percentage or more of the shares of Common
Stock then outstanding solely as the result of a reduction in the number of shares of Common Stock then outstanding due to an acquisition
of shares of Common Stock by an Exempt Person and, after such acquisition by such Exempt Person, becomes the Beneficial Owner of
one or more additional shares of Common Stock (other than pursuant to a dividend or distribution paid or made by the Company on
the Common Stock in shares of Common Stock or pursuant to a split or subdivision of the Common Stock), then such Person will be
deemed to be an Acquiring Person unless, upon becoming the Beneficial Owner of such additional shares of Common Stock, such Person
does not Beneficially Own the Triggering Percentage or more of the shares of Common Stock then outstanding;

 

(iii)
no Person will be deemed to be an Acquiring Person solely as a result of any unilateral grant of any security by the Company, or
through the exercise of any options, warrants, rights or similar interests (including restricted stock) granted by the Company
to its directors, officers and employees, it being understood that if a Person becomes the Beneficial Owner of the Triggering Percentage
or more of the shares of Common Stock then outstanding by reason of a unilateral grant of a security by the Company, or through
the exercise of any options, warrants, rights or similar interests (including restricted stock) granted by the Company to its directors,
officers and employees, and such Person becomes the Beneficial Owner of one or more additional shares of Common Stock (other than
(A) pursuant to a dividend or distribution paid or made by the Company on the Common Stock in shares of Common Stock or pursuant
to a split or subdivision of the Common Stock; or (B) the unilateral grant of a security by the Company, or through the exercise
of any options, warrants, rights or similar interest (including restricted stock) granted by the Company to its directors, officers
and employees), then such Person will be deemed to be an Acquiring Person unless, upon becoming the Beneficial Owner of such additional
shares of Common Stock, such Person does not Beneficially Own the Triggering Percentage or more of the shares of Common Stock then
outstanding; and

 

(iv)
if the Board determines in good faith that a Person who would otherwise be an Acquiring Person has become such inadvertently (including
because (A) such Person was unaware that it Beneficially Owned a percentage of the shares of Common Stock then outstanding
that would otherwise cause such Person to be an Acquiring Person or (B) such Person was aware of the extent of the shares
of Common Stock then outstanding that it Beneficially Owned but had no actual knowledge of the consequences of such Beneficial
Ownership pursuant to this Agreement) and without any intention of changing or influencing control of the Company, and if such
Person divested or divests (including by entering into an agreement with the Company, which agreement is satisfactory to the Board
in its sole discretion, to divest and subsequently divests in accordance with the terms of such agreement, without exercising or
retaining any power, including voting power, with respect to such shares of Common Stock) as promptly as practicable a sufficient
number of shares of Common Stock so that such Person would no longer be an Acquiring Person, then such Person will not be deemed
to be or to have become an Acquiring Person at any time for any purposes of this Agreement.

 

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(b)
A Person will be deemed to be “Acting in Concert” with another Person if such first Person knowingly acts (whether
or not pursuant to an express agreement, arrangement or understanding), at any time after the time of the public announcement of
this Agreement, in concert or in parallel with such other Person, or toward a common goal with such other Person, relating to changing
or influencing the control of the Company or in connection with or as a participant in any transaction having that purpose or effect,
where (i) each Person is conscious of the other Person’s conduct and this awareness is an element in their respective
decision-making processes; and (ii) at least one additional factor supports a determination by the Board that such Persons
intended to act in concert or in parallel, which additional factors may include, without limitation, exchanging information, attending
meetings, conducting discussions, or making or soliciting invitations to act in concert or in parallel, it being understood that
the additional factor required shall not include actions by an officer or director of the Company acting in such capacities. A
Person who is Acting in Concert with another Person shall be deemed to be Acting in Concert with any third party who is also Acting
in Concert with such other Person. No Person shall be deemed to be Acting in Concert with another Person solely as a result of
(A) making or receiving a solicitation of, or granting or receiving, revocable proxies or consents given in response to a
public proxy or consent solicitation made to more than 10 holders of shares of a class of stock of the Company registered under
Section 12 of the Exchange Act; or (B) soliciting or being solicited for tenders of, or tendering or receiving tenders
of, securities in a public tender or exchange offer made pursuant to, and in accordance with, Section 14(d) of the Exchange
Act by means of a tender offer statement filed on Schedule TO.

 

(c)
“Adjustment Shares” has the meaning set forth in Section 11(a)(ii).

 

(d)
“Affiliate” and “Associate” have the respective meanings ascribed to such terms in Rule 12b-2 of
the General Rules and Regulations promulgated under the Exchange Act, as in effect on the Rights Dividend Declaration Date.

 

(e)
“Agreement” has the meaning set forth in the preamble.

 

(f)
“Appropriate Officers” means the Company’s Chairman of the Board, Chief Executive Officer, President,
Chief Financial Officer, Treasurer or Secretary, or any Vice Chairman or Corporate Vice President.

 

(g)
A Person will be deemed to be the “Beneficial Owner” of, and will be deemed to “Beneficially Own”
and have “Beneficial Ownership” of, any securities:

 

(i)
that such Person or any of such Person’s Affiliates or Associates, directly or indirectly, owns or has the legal, equitable
or contractual right or obligation to acquire (whether directly or indirectly and whether exercisable immediately or only after
the passage of time, compliance with regulatory requirements, satisfaction of one or more conditions (whether or not within the
control of such Person) or otherwise) (A) pursuant to any agreement, arrangement or understanding whether or not in writing
(other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering
of securities); (B) upon the exercise of any conversion rights, exchange rights, rights (other than the Rights), warrants
or options, or otherwise; (C) pursuant to the power to revoke a trust, discretionary account or similar arrangement; (D) pursuant
to the power to terminate a repurchase or similar so-called “stock borrowing” agreement, arrangement or understanding;
or (E) pursuant to the automatic termination of a trust, discretionary account or similar arrangement; provided, however,
that a Person will not be deemed pursuant to this Section 1(g)(i) to be the Beneficial Owner of, or to Beneficially Own, securities
(1) tendered pursuant to a tender or exchange offer made by or on behalf of such Person or any of such Person’s Affiliates
or Associates until such tendered securities are accepted for purchase or exchange; (2) issuable upon the exercise of Rights
at any time prior to the occurrence of a Triggering Event; (3) issuable upon the exercise of Rights from and after the occurrence
of a Triggering Event if such Rights were acquired by such Person or any of such Person’s Affiliates or Associates prior
to the Distribution Date or pursuant to Section 3(a) or Section 22 (the “Original Rights”) or pursuant
to Section 11(h) in connection with an adjustment made with respect to any Original Rights; or (4) that a Person or any
of such Person’s Affiliates or Associates may be deemed to have the right to acquire pursuant to any merger or other acquisition
agreement between the Company and such Person (or one or more of its Affiliates or Associates), or any tender, voting or support
agreement entered into by such Person (or one or more of its Affiliates or Associates) in connection therewith, if such agreement
has been approved by the Board prior to the existence of an Acquiring Person;

 

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(ii)
that such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote (including
the power to vote or to direct the voting of) or dispose (or direct the disposition) of or has “beneficial ownership”
of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations promulgated under the Exchange Act,
as in effect on the Rights Dividend Declaration Date), including pursuant to any agreement, arrangement or understanding whether
or not in writing; provided, however, that a Person will not be deemed the Beneficial Owner of, or to Beneficially
Own, any security pursuant to this Section 1(g)(ii) as a result of an agreement, arrangement or understanding whether or not
in writing to vote such security if such agreement, arrangement or understanding (A) arises solely from a revocable proxy
or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with,
the applicable provisions of the General Rules and Regulations promulgated under the Exchange Act; and (B) is not also then
reportable by such Person on Schedule 13D pursuant to the Exchange Act (or any comparable or successor report);

 

(iii)
that are Beneficially Owned, directly or indirectly, by any other Person (or any of such Person’s Affiliates or Associates)
with which such first Person (or any of such first Person’s Affiliates or Associates) is (1) Acting in Concert or (2) has
any agreement, arrangement or understanding whether or not in writing (other than customary agreements with and between underwriters
and selling group members with respect to a bona fide public offering of securities) for the purpose of acquiring, holding, voting
(except pursuant to a revocable proxy to the extent contemplated by the proviso to Section 1(g)(ii)) or disposing of any securities
of the Company; provided, however, that no person who is an officer, director or employee of an Exempt
Person will be deemed, solely by reason of such person’s status or authority as such, to be a Beneficial Owner of, to have
Beneficial Ownership of or to Beneficially Own any securities of the Company that are Beneficially Owned (including in a fiduciary
capacity) by an Exempt Person or by any other officer, director or employee of an Exempt Person; or

 

(iv)
that are the subject of a derivative instrument, swap, option, warrant, short interest, hedge or profit interest, or other 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) the 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 the derivative security (it being understood that in determining the number of shares of Common Stock that are Beneficially
Owned by virtue of the operation of this Section 1(g)(iv), the subject Person will be deemed to Beneficially Own (without
duplication) the notional or other number of shares of Common Stock that, pursuant to the documentation evidencing the derivative
security, may be acquired upon the exercise or settlement of the applicable derivative security or as the basis upon which the
value or settlement amount of such derivative 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 shares of Common Stock
is specified in such documentation or otherwise) as determined by the Board in good faith to be the number of shares of Common
Stock to which the derivative security relates).

 

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(h)
“Board” has the meaning set forth in the recitals at the beginning of this Agreement.

 

(i)
“Book Entry Shares” has the meaning set forth in Section 3(a).

 

(j)
“Business Day” means any day other than a Saturday, Sunday or a day on which the Federal Reserve Bank of New
York is closed.

 

(k)
“Close of Business” on any given date means 5:00 p.m., New York City time, on such date. If such date is not
a Business Day, then it means 5:00 p.m., New York City time, on the next succeeding Business Day.

 

(l)
“Common Stock” means, unless otherwise specified, the shares of common stock, par value $0.0001 per share, of
the Company. When used with reference to any Person other than the Company, Common Stock means the capital stock with the greatest
voting power, or the equity securities or other equity interest having power to control or direct the management, of such Person
or, if such Person is a Subsidiary of another Person, of the Person that ultimately controls such first Person.

 

(m)
“Common Stock Equivalents” has the meaning set forth in Section 11(a)(iii).

 

(n)
“Company” has the meaning set forth in the preamble, subject to the terms of Section 13(a).

 

(o)
“Current Per Share Market Price” of any security (a “Security” for purposes of this definition),
for all computations other than those made pursuant to Section 11(a)(iii), means the average of the daily closing prices per
share of such Security for the 30 consecutive Trading Days immediately prior to but not including such date, and for purposes of
computations made pursuant to Section 11(a)(iii), the Current Per Share Market Price of any Security on any date will be deemed
to be the average of the daily closing prices per share of such Security for the 10 consecutive Trading Days immediately following
but not including such date. If the Current Per Share Market Price of the Security is determined during any period following the
announcement by the issuer of such Security of (i) a dividend or distribution on such Security payable in shares of such Security
or securities convertible into such shares (other than the Rights) or (ii) any subdivision, combination, consolidation, reverse
stock split or reclassification of such Security, and the ex-dividend date for such dividend or distribution, or the
record date for such subdivision, combination, consolidation, reverse stock split or reclassification, has not occurred prior to
the commencement of the requisite 30 consecutive Trading Day or 10 consecutive Trading Day period as set forth above, then, and
in each such case, the Current Per Share Market Price will be appropriately adjusted to take into account ex-dividend trading.
The closing price for each day will be the last sale price, regular way, reported at or prior to 4:00 p.m., New York City time,
or, if no such sale takes place on such day, the average of the bid and asked prices, regular way, reported as of 4:00 p.m. New
York City time, in either case as reported in the principal consolidated transaction reporting system with respect to securities
listed or admitted to trading on Nasdaq or, if the Security is not listed or admitted to trading on 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 quoted price reported at or prior to 4:00 p.m., New York City time, or, if on such date the Security
is not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported as of
4:00 p.m., New York City time, 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. If on any such date no market maker is making a market in the Security, the fair value of
the Security on such date as determined in good faith by the Board will be used, which determination will be described in a statement
filed with the Rights Agent and will be conclusive and binding on the Rights Agent and the holders of the Rights. If the Current
Per Share Market Price of the Preferred Stock cannot be determined in the manner provided above or if the shares of Preferred Stock
are not publicly held or not listed or traded in a manner described above, then the Current Per Share Market Price of the Preferred
Stock will be conclusively deemed to be (x) the Current Per Share Market Price of the Common Stock as determined pursuant
to this Section 1(o) multiplied by (y) 1,000 (as such number may be appropriately adjusted to reflect any subdivision,
combination, consolidation, reverse stock split or reclassification of Common Stock occurring after the Rights Dividend Declaration
Date). If the Security (other than the Preferred Stock) is not publicly held or not so listed or traded, or if on any such date
the Security is not so quoted and no such market maker is making a market in the Security, then the Current Per Share Market Price
means the fair value per Security as determined in good faith by the Board, after consultation with a nationally recognized investment
banking firm, whose determination will be described in a statement filed with the Rights Agent and will be conclusive and binding
on the Rights Agent and the holders of the Rights.

 

    5

     

    

 

(p)
“Current Exchange Value” means the product of the Current Per Share Market Price of Common Stock on the date
of the occurrence of an Exchange Determination (or the next Business Day, if such date is not a Business Day) multiplied by the
number of shares of Common Stock for which the Right would otherwise be exchangeable (without regard to whether there were sufficient
shares of Common Stock available therefor).

 

(q)
“Current Value” has the meaning set forth in Section 11(a)(iii).

 

(r)
“Distribution Date” means the earlier of (i) the Close of Business on the 10th Business Day (or such later
date as may be determined by action of the Board, which action must be taken prior to the Distribution Date that otherwise would
have occurred) after the Stock Acquisition Date (or, if the 10th Business Day after the Stock Acquisition Date occurs before the
Record Date, then the Close of Business on the Record Date), provided that the Board has taken affirmative action to declare
the occurrence of the Distribution Date following the Stock Acquisition Date; or (ii) the Close of Business on the 10th Business
Day (or, if such 10th Business Day occurs before the Record Date, then the Close of Business on the Record Date) (or such later
date as may be determined by the Board) after the date that a tender or exchange offer by any Person (other than an Exempt Person)
is first published, sent or given within the meaning of Rule 14d-2(a) of the General Rules and Regulations promulgated
under the Exchange Act if, assuming the successful consummation thereof, such Person would be an Acquiring Person, provided
that the Board has taken affirmative action to declare the occurrence of the Distribution Date following the publication of
a tender or exchange offer. If any tender or exchange offer referred to in clause (ii) of this Section 1(r) is cancelled,
terminated or otherwise withdrawn prior to the Distribution Date without the purchase or exchange of any shares of Common Stock
pursuant thereto, then such offer will be deemed, for purposes of this paragraph, never to have been made.

 

(s)
“Equivalent Preferred Stock” means any class or series of capital stock of the Company having the same rights,
privileges and preferences as the Preferred Stock.

 

(t)
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(u)
“Exchange Determination” has the meaning set forth in Section 24(a).

 

(v)
“Exchange Ratio” has the meaning set forth in Section 24(a).

 

(w)
“Exempt Person” means (i) the Company or any Subsidiary of the Company, in each case including the officers
and members of the board of directors thereof acting in their fiduciary capacities; or (ii) any employee benefit plan of the
Company or of any Subsidiary of the Company, or any entity or trustee holding (or acting in a fiduciary capacity in respect of)
shares of capital stock of the Company for or pursuant to the terms of any such plan or for the purpose of funding other employee
benefits for employees of the Company or any Subsidiary of the Company. No Person who is an officer, director or employee of an
Exempt Person will be deemed, solely by reason of such Person’s status or authority as such, to be the Beneficial Owner of,
to have Beneficial Ownership of or to Beneficially Own any securities that are Beneficially Owned (including in a fiduciary capacity)
by an Exempt Person or by any other such officer, director or employee of an Exempt Person.

 

(x)
“Exercise Price” is initially $50.00 for each $0.00667 of a share of Preferred Stock issuable pursuant
to the exercise of a Right and is subject to adjustment from time to time as provided in Section 11 or Section 13.

 

(y)
“Expiration Date” means the earliest to occur of (i) the Close of Business on the Final Expiration Date,
(ii) the Redemption Date or (iii) the time at which the Board orders the exchange of the Rights as provided in Section 24.

 

(z)
“Final Expiration Date” means March 11, 2031.

 

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(aa)
“Nasdaq” means The Nasdaq Stock Market LLC.

 

(bb)
“Original Rights” has the meaning set forth in Section 1(g)(i).

 

(cc)
“Person” means any individual, firm, corporation, partnership (general or limited), limited liability company,
joint venture, business trust, trust, association, syndicate, group (as such term is used in Rule 13d-5 of the General
Rules and Regulations promulgated under the Exchange Act, as in effect on the Rights Dividend Declaration Date) or other entity,
and, in each case, will include any successor (by merger or otherwise) of any such Person.

 

(dd)
“Post-Event Transferee” has the meaning set forth in Section 7(e).

 

(ee)
“Pre-Event Transferee” has the meaning set forth in Section 7(e).

 

(ff)
“Preferred Stock” means shares of Series B Participating Preferred Stock, par value $0.0001 per share, of the
Company and, to the extent that there are not a sufficient number of shares of Preferred Stock authorized to permit the full exercise
of the Rights, any other series of preferred stock of the Company designated for such purpose containing terms substantially similar
to the terms of the Preferred Stock.

 

(gg)
“Principal Party” has the meaning set forth in Section 13(b).

 

(hh)
“Record Date” has the meaning set forth in the recitals at the beginning of this Agreement.

 

(ii)
“Redemption Date” has the meaning set forth in Section 23(a).

 

(jj)
“Redemption Price” has the meaning set forth in Section 23(a).

 

(kk)
“Right” has the meaning set forth in the recitals at the beginning of this Agreement.

 

(ll)
“Rights Agent” has the meaning set forth in the preamble.

 

(mm)
“Rights Certificate” means a certificate substantially in the form attached as Exhibit B.

 

(nn)
“Rights Dividend Declaration Date” has the meaning set forth in the recitals at the beginning of this Agreement.

 

(oo)
“SEC” means the United States Securities and Exchange Commission.

 

(pp)
“Section 11(a)(ii) Event” means any event described in Section 11(a)(ii).

 

(qq)
“Section 11(a)(ii) Trigger Date” has the meaning set forth in Section 11(a)(iii).

 

(rr)
“Section 13 Event” means any event described in clause (i), (ii) or (iii) of Section 13(a).

 

(ss)
“Securities Act” means the Securities Act of 1933, as amended.

 

(tt)
“Security” has the meaning set forth in Section 1(o).

 

(uu)
“Spread” means the excess of (i) the Current Value over (ii) the Exercise Price.

 

(vv)
“Stock Acquisition Date” means the first date of public announcement (which, for purposes of this definition,
includes the filing or amending of a report pursuant to Section 13(d) of the Exchange Act or pursuant to a comparable successor
statute) by the Company or an Acquiring Person that an Acquiring Person has become such or that discloses information that reveals
the existence of an Acquiring Person.

 

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(ww)
“Subsequent Transferee” has the meaning set forth in Section 7(e).

 

(xx)
“Subsidiary” of any Person means any firm, corporation, partnership, limited liability company, joint venture,
business trust, trust, association, syndicate or other entity (whether or not incorporated) of which an amount of voting securities
sufficient to elect a majority of the directors or Persons having similar authority, or a majority of the equity or ownership interests,
is Beneficially Owned, directly or indirectly, by such Person, or any firm, corporation, partnership, limited liability company,
joint venture, business trust, trust, association, syndicate or other entity (whether or not incorporated) otherwise controlled
by such Person.

(yy)
“Substitution Period” has the meaning set forth in Section 11(a)(iii).

 

(zz)
“Summary of Rights” means a summary of this Agreement substantially in the form attached as Exhibit C.

 

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

 

(bbb)
“Triggering Percentage” means 15 percent.

 

(ccc)
“Triggering Event” means any Section 11(a)(ii) Event or Section 13 Event.

 

(ddd)
“Trust” has the meaning set forth in Section 24(b)(ii).

 

(eee)
“Trust Agreement” has the meaning set forth in Section 24(b)(ii).

 

Section 2. Appointment
of Rights Agent. The Company hereby appoints the Rights Agent to act as rights agent for the Company and the holders of the
Rights (who, in accordance with Section 3, will 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. If the Company appoints one or more co-rights agents,
then the respective duties of the Rights Agent and such co-rights agents will be as the Company determines. The Rights
Agent will have no duty to supervise, and will in no event be liable for the acts or omissions of, any co-rights agent.

 

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Section 3. Issuance
of Rights Certificates.

 

(a) Rights
Evidenced by Certificates for Shares of Common Stock and Book Entry Shares. Until the Distribution Date, (i) the Rights
(unless earlier expired, redeemed or terminated) will be evidenced (subject to the provisions of Section 3(b) and Section 3(c))
by the certificates for shares of Common Stock registered in the names of the holders thereof or, in the case of uncertificated
shares of Common Stock registered in book entry form (“Book Entry Shares”), by notation in book entry accounts
reflecting the ownership of such shares of Common Stock (which certificates and Book Entry Shares, as applicable, will also be
deemed to be Rights Certificates) and not by separate Rights Certificates; and (ii) the Rights (and the right to receive Rights
Certificates) will be transferable only in connection with the transfer of the underlying shares of Common Stock (including a transfer
to the Company). 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 so requested and provided with all necessary
information and documents, send) (by mailing, in accordance with Section 26 or by such means as may be selected by the Company)
to each record holder of Common Stock as of the Close of Business on the Distribution Date (other than any Acquiring Person or
any of its Affiliates or Associates), at the address of such holder shown on the transfer books of the Company or the transfer
agent for the Common Stock, one or more Rights Certificates evidencing one Right for each share of Common Stock so held, subject
to adjustment as provided in this Agreement. Receipt of a Rights Certificate by any Person will not preclude a later determination
that all or part of the Rights represented by such Rights Certificate are void pursuant to Section 7(e). To the extent that
a Section 11(a)(ii) Event has also occurred, the Company may implement such procedures as it deems appropriate in its sole
discretion to minimize the possibility that Rights are received by any Person whose Rights are null and void pursuant to Section 7(e).
In the event that an adjustment in the number of Rights per share of Common Stock has been made pursuant to Section 11, then
at the time of distribution of the Rights Certificates, the Company will make the necessary and appropriate rounding adjustments
(in accordance with Section 14(a)) so that Rights Certificates representing only whole numbers of Rights are distributed and
cash is paid in lieu of any fractional Rights (in accordance with Section 14(a)). As of and after the Distribution Date, the
Rights will be evidenced solely by the Rights Certificates and may be transferred by the transfer of the Rights Certificates as
permitted hereby, separately and apart from any transfer of shares of Common Stock, and the holders of such Rights Certificates
as shown on the transfer books of the Company or the transfer agent for the Rights (which may be the Rights Agent) will be the
record holders thereof. The Company will promptly notify the Rights Agent in writing upon the occurrence of the Distribution Date.
Until such notice is provided to the Rights Agent, it may presume conclusively for all purposes that the Distribution Date has
not occurred.

 

(b) Summary
of Rights; Outstanding Shares of Common Stock. The Company will make available, or cause to be made available, promptly after
the Record Date, a copy of the Summary of Rights to any holder of Rights who may so request from time to time prior to the Expiration
Date. With respect to certificates representing shares of Common Stock and Book Entry Shares, as applicable, outstanding as of
the Record Date or issued subsequent to the Record Date, until the earlier of the Distribution Date or the Expiration Date, the
Rights will be evidenced by such certificates or Book Entry Shares, and the registered holders of the Common Stock will also be
the registered holders of the associated Rights. Until the earlier of the Distribution Date or the Expiration Date, the surrender
for transfer of any shares of Common Stock in respect of which Rights have been issued (with or without a copy of the Summary of
Rights) will also constitute the transfer of the Rights associated with such shares of Common Stock. Notwithstanding anything to
the contrary in this Agreement, upon the effectiveness of a redemption pursuant to Section 23 or an exchange pursuant to Section 24,
the Company will not thereafter issue any additional Rights and, for the avoidance of doubt, no Rights will be attached to or will
be issued with any Common Stock (including any shares of Common Stock issued pursuant to an exchange) at any time thereafter.

 

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(c) Legend.
Rights will be issued in respect of all shares of Common Stock that are issued (whether as an original issuance or from the Company’s
treasury) after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date. Certificates representing
such shares of Common Stock will also be deemed to be certificates for Rights, and will bear substantially the following legend
if such certificates are issued after the Record Date but prior to the earlier of the Distribution Date or the Expiration Date:

 

THIS
CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN A PREFERRED STOCK RIGHTS AGREEMENT,
DATED AS OF MARCH 11, 2021, BETWEEN KBS FASHION GROUP LTD. (THE “COMPANY”) AND AMERICAN STOCK TRANSFER & TRUST
COMPANY, LLC, AS RIGHTS AGENT, AS THE SAME MAY BE AMENDED FROM TIME TO TIME (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 THE COMPANY.
UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS AGREEMENT, SUCH RIGHTS (AS DEFINED IN THE RIGHTS AGREEMENT) MAY BE REDEEMED,
MAY BECOME EXERCISABLE FOR SECURITIES OR ASSETS OF THE COMPANY OR SECURITIES OF ANOTHER ENTITY, MAY BE EXCHANGED FOR SHARES OF
COMMON STOCK OR OTHER SECURITIES OR ASSETS OF THE COMPANY, MAY EXPIRE OR MAY BE EVIDENCED BY SEPARATE CERTIFICATES AND MAY NO LONGER
BE EVIDENCED BY THIS CERTIFICATE. THE COMPANY WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF THE RIGHTS AGREEMENT AS IN
EFFECT ON THE DATE OF MAILING WITHOUT CHARGE AFTER RECEIPT OF A WRITTEN REQUEST THEREFOR. UNDER CERTAIN CIRCUMSTANCES AS
SET FORTH IN THE RIGHTS AGREEMENT, RIGHTS THAT ARE BENEFICIALLY OWNED BY, TRANSFERRED TO OR HAVE BEEN OWNED BY AN ACQUIRING PERSON
(AS DEFINED IN THE RIGHTS AGREEMENT) OR ANY OF ITS AFFILIATES (AS DEFINED IN THE RIGHTS AGREEMENT) OR ASSOCIATES (AS DEFINED IN
THE RIGHTS AGREEMENT) WILL BE NULL AND VOID AND WILL NO LONGER BE TRANSFERABLE.

 

With respect to
any Book Entry Shares, a legend in substantially similar form will be included in a notice to the record holder of such shares
in accordance with applicable law. With respect to such certificates representing shares of Common Stock or Book Entry Shares,
as applicable, containing the foregoing legend, until the earlier of the Distribution Date or the Expiration Date, (i) the
Rights associated with the shares of Common Stock represented by such certificates or Book Entry Shares will be evidenced solely
by such certificates or Book Entry Shares; (ii) the registered holders of the shares of Common Stock will also be the registered
holders of the associated Rights; and (iii) the surrender for transfer of any such certificates or Book Entry Shares (with
or without a copy of the Summary of Rights) will also constitute the transfer of the Rights associated with the shares of Common
Stock represented thereby. Notwithstanding this Section 3(c), the omission of the legend required hereby, the inclusion of
a legend that makes reference to a rights agreement other than this Agreement or the failure to provide notice thereof will not
affect the enforceability of any part of this Agreement or the rights of any holder of Rights.

 

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(d) Acquisitions
of Rights by the Company. In the event that the Company purchases or acquires any shares of Common Stock after the Record Date
but prior to the earlier of the Distribution Date or the Expiration Date, any Rights associated with such shares of Common Stock
will be deemed cancelled and retired so that the Company will not be entitled to exercise any Rights associated with the shares
of Common Stock that are no longer outstanding.

 

Section 4. Form
of Rights Certificates.

 

(a) Rights
Certificates. The Rights Certificates (and the form of election to purchase and form of assignment, including the certifications
therein, to be printed on the reverse thereof) will be substantially in the form of Exhibit B, and may have such marks of
identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate (but
which do not affect the rights, duties, responsibilities or liabilities of the Rights Agent) and 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, with any applicable rule or regulation of any applicable stock exchange or trading system on which the Rights may from
time to time be listed or quoted or of the Financial Industry Regulatory Authority, or to conform to customary usage. Subject to
the provisions of Section 11 and Section 22, the Rights Certificates, whenever distributed, will be dated as of the Record
Date (or in the case of Rights issued with respect to shares of Common Stock issued by the Company after the Record Date, as of
the date of issuance of such Common Stock) and on their face will entitle the holders thereof to purchase such number of 0.00667
portions of a share of Preferred Stock as will be set forth therein at the Exercise Price, but the number and type of securities
purchasable upon the exercise of each Right and the Exercise Price will be subject to adjustment as provided in this Agreement.

 

(b) Certain
Legends. Any Rights Certificate issued pursuant to Section 3(a), Section 11(h) or Section 22 that represents
Rights that are Beneficially Owned by an Acquiring Person, an Affiliate or Associate of an Acquiring Person, a Post-Event Transferee,
a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the foregoing, and any Rights Certificate issued
pursuant to Section 6 or Section 11 upon transfer, exchange, replacement or adjustment of any other Rights Certificate
referred to in this sentence, will contain (to the extent that the Rights Agent has notice thereof and to the extent feasible)
substantially the following legend:

 

THE
RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING PERSON
OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS
CERTIFICATE AND THE RIGHTS (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE
CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS AGREEMENT.

 

(c) Uncertificated
Rights. Notwithstanding anything to the contrary in this Agreement, the Company and the Rights Agent may amend this Agreement
to provide for uncertificated Rights in addition to or in place of Rights evidenced by Rights Certificates.

 

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Section 5. Countersignature
and Registration.

 

(a) Countersignature.
The Rights Certificates will be executed on behalf of the Company by one of its Appropriate Officers, which execution will be attested
to by such officers as the Board may designate, in each case either manually or by facsimile or other electronic signature, and
will have affixed thereto the Company’s seal (if any) or a facsimile or other electronic copy thereof. The Rights Certificates
will be countersigned, either manually or by facsimile or other electronic signature, by an authorized signatory of the Rights
Agent, but it will not be necessary for the same signatory to countersign all of the Rights Certificates. No Rights Certificate
will be valid for any purpose unless countersigned by the Rights Agent. If any director or officer of the Company who has signed
or attested to any of the Rights Certificates ceases to be such director or officer of the Company before countersignature by the
Rights Agent and issuance and delivery by the Company, such Rights 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 or attested to such
Rights Certificates on behalf of the Company had not ceased to be a director or officer of the Company. Any Rights Certificate
may be signed or attested to on behalf of the Company by any person who, as of the actual date of the execution of such Rights
Certificate, is a proper director or officer of the Company to sign such Rights Certificate, although at the date of the execution
of this Agreement any such person was not such a director or officer.

 

(b) Transfer
Books. Following the Distribution Date, the Rights Agent will keep or cause to be kept, at its office designated for such purposes,
books for registration and transfer of the Rights Certificates issued hereunder. Such books will show the names and addresses of
the respective holders of the Rights Certificates, the number of Rights evidenced on its face by each of the Rights Certificates,
the certificate number of each of the Rights Certificates and the date of each of the Rights Certificates. The Rights Agent will
not register, or permit to be registered, any transfer or exchange of any Rights Certificates (or the underlying Rights) that have
become null and void pursuant to Section 7(e), have been redeemed pursuant to Section 23 or have been exchanged pursuant
to Section 24.

 

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

 

(a) Transfer,
Split Up, Combination and Exchange of Rights Certificates. Subject to the provisions of Section 4(b), Section 7(e),
Section 14 and Section 24, at any time after the Close of Business on the Distribution Date, and at or prior to the Close
of Business on the Expiration Date, any Rights Certificate (other than any Rights Certificate representing Rights that have become
null and void pursuant to Section 7(e), that have been redeemed pursuant to Section 23 or that have been exchanged pursuant
to Section 24) may be transferred, split up, combined or exchanged for another Rights Certificate entitling the registered
holder to purchase a like number of 0.00667 portions of a share of Preferred Stock (or, following a Triggering Event, other
securities, cash or other assets, as the case may be) as the Rights Certificate surrendered then entitled such holder (or former
holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights
Certificate will make such request in writing delivered to the Rights Agent, and will surrender the Rights Certificate, together
with any required form of assignment duly executed and properly completed, to be transferred, split up, combined or exchanged at
the office of the Rights Agent designated for such purpose. The Rights Certificates are transferable only on the books and records
of the Rights Agent. Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company will
be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate until the registered
holder has properly completed and duly executed the certificate contained in the form of assignment on the reverse side of such
Rights Certificate and has provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner)
or Affiliates or Associates thereof of the Rights represented by such Rights Certificates, in each case as the Company or the Rights
Agent reasonably requests. Thereupon, subject to Section 4(b), Section 7(e), Section 14 and Section 24, the
Rights Agent will countersign (by manual or facsimile or other electronic signature) and deliver to the Person entitled thereto
a Rights Certificate as so requested. The Company or the Rights Agent may require payment from the holder of a Rights Certificate
of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer, split up, combination
or exchange of any Rights Certificate. If and to the extent that the Company does require payment of any such tax or governmental
charge, the Company will provide the Rights Agent prompt written notice thereof and the Rights Agent will not deliver any Rights
Certificate unless and until the Rights Agent is satisfied that all such payments have been made, and the Rights Agent will forward
any such sum collected by it to the Company or to such Person as the Company specifies by written notice. The Rights Agent will
not have any duty or obligation to take any action pursuant to any Section of this Agreement related to the issuance or delivery
of Rights Certificates unless and until it is satisfied that all such taxes or charges have been paid.

 

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(b) Mutilated,
Destroyed, Lost or Stolen Rights Certificates. Subject to the provisions of Section 7(e), Section 11(a)(ii) and Section 24,
at any time after the Distribution Date and prior to the Expiration Date, upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to each of the Company and the Rights Agent of the loss, theft, destruction or mutilation of a Rights Certificate
and such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof
as the Company or the Rights Agent may request, and, in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to each of the Company and the Rights Agent, and 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 Rights Certificate if mutilated, the
Company will make and deliver a new Rights Certificate of like tenor to the Rights Agent for countersignature and delivery to the
registered holder in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated. Every new Rights Certificate issued
pursuant to this Section 6(b) in lieu of any lost, stolen, destroyed or mutilated Rights Certificate will evidence a contractual
obligation of the Company, whether or not the lost, stolen, destroyed or mutilated Rights Certificate will be at any time enforceable
by anyone, and, subject to Section 7(e), will be entitled to all the benefits of this Agreement equally and proportionately
with any and all other Rights duly issued hereunder.

 

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

 

(a) Exercise
of Rights. Subject to Section 7(e), Section 23(b) and Section 24(a), the registered holder of any Rights Certificate
may exercise the Rights evidenced thereby (except as otherwise provided in this Agreement) in whole or in part on any Business
Day at or after the Distribution Date and prior to the Close of Business on the Expiration Date by surrender of the Rights Certificate,
with the form of election to purchase and certificate on the reverse side thereof properly completed and duly executed, to the
Rights Agent at the office of the Rights Agent designated for such purpose, together with payment of the Exercise Price for each
0.00667 portion of a share of Preferred Stock (or, following a Triggering Event, other securities, cash or other assets, as
the case may be) as to which the Rights are exercised.

 

    13

     

    

 

(b) Exercise
Price. The Exercise Price is payable in accordance with Section 7(c).

 

(c) Payment.
Except as otherwise provided in this Agreement, upon receipt of a Rights Certificate representing exercisable Rights, with the
form of election to purchase and certificate properly completed and duly executed, accompanied by payment of the aggregate Exercise
Price for the total number of 0.00667 portions of a share of Preferred Stock (or, following a Triggering Event, other securities,
cash or other assets, as the case may be) to be purchased and an amount equal to any applicable transfer tax or governmental charge
required to be paid by the holder of such Rights Certificate in accordance with Section 9(e), the Rights Agent will, subject
to Section 7(f) and Section 20(k), thereupon promptly (i) (A) requisition from any transfer agent of the Preferred
Stock (or make available, if the Rights Agent is the transfer agent for the Preferred Stock) a certificate for the total number
of 0.00667 portions of a share of Preferred Stock (or, following a Triggering Event, other securities, cash or other assets,
as the case may be) to be purchased (or, in the case of uncertificated shares or other securities, requisition from the transfer
agent a notice setting forth such number of shares or other securities to be purchased for which registration will be made on the
transfer books of the Company), and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests;
or (B) if the Company has elected to deposit the total number of 0.00667 portions of a share of Preferred Stock (or,
following a Triggering Event, other securities, cash or other assets, as the case may be) issuable upon exercise of the Rights
hereunder with a depositary agent, requisition from such depositary agent depositary receipts representing interests in such number
of 0.00667 portions of a share of Preferred Stock (or, following a Triggering Event, other securities, cash or other assets,
as the case may be) as are to be purchased (in which case certificates representing shares of the Preferred Stock (or, following
a Triggering Event, other securities, cash or other assets, as the case may be) represented by such receipts will be deposited
by the transfer agent with such depositary agent) and the Company hereby irrevocably directs such depositary agent to comply with
such request; (ii) when necessary to comply with the terms of this Agreement, requisition from the Company the amount of cash,
if any, to be paid in lieu of the issuance of fractional shares in accordance with Section 14; (iii) after receipt of
such certificates, notices, or depositary receipts, cause the same to be delivered to or upon the order of the registered holder
of such Rights Certificate, registered in such name or names as may be designated by such holder; and (iv) when necessary
to comply with the terms of this Agreement, after receipt thereof, deliver such cash to or upon the order of the registered holder
of such Rights Certificate. The payment of the Exercise Price (as such amount may be reduced (including to zero) pursuant to Section 11(a)(iii)),
and an amount equal to any applicable transfer tax or governmental charge required to be paid by the holder of such Rights Certificate
in accordance with Section 9(e), may be made by certified bank check, money order, cashier’s check or bank draft payable
to the order of the Company. In the event that the Company is obligated to issue securities of the Company other than Preferred
Stock, pay cash or distribute other property pursuant to Section 11(a), then the Company will make all arrangements necessary
so that such other securities, cash or other property are available for distribution by the Rights Agent, if and when necessary
to comply with the terms of this Agreement. Notwithstanding anything to the contrary in this Agreement, the Company reserves the
right to require that prior to the occurrence of a Triggering Event, upon any exercise of Rights, a number of Rights be exercised
so that only whole shares of Preferred Stock would be issued.

 

    14

     

    

 

(d) Partial
Exercise. If the registered holder of any Rights Certificate exercises less than all the Rights evidenced thereby, then a new
Rights Certificate evidencing Rights equivalent to the Rights remaining unexercised will be issued by the Rights Agent and delivered
to or upon the order of the registered holder of such Rights Certificate, registered in such name as may be designated by such
holder, subject to the provisions of Section 14.

 

(e) Prohibited
Issuances. Notwithstanding anything to the contrary in this Agreement, from and after the first occurrence of a Triggering
Event, any Rights that are or were acquired or Beneficially Owned by (i) an Acquiring Person or an Affiliate or Associate
of an Acquiring Person, (ii) a transferee of an Acquiring Person (or an Affiliate or Associate of an Acquiring Person) who
becomes a transferee after the Acquiring Person becomes such (a “Post-Event Transferee”), (iii) a transferee
of an Acquiring Person (or an Affiliate or Associate of an Acquiring Person) who becomes a transferee prior to or concurrently
with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether or not for consideration)
from the Acquiring Person (or an Affiliate or Associate of the Acquiring Person) to holders of equity interests in such Acquiring
Person (or an Affiliate or Associate of such Acquiring Person) or to any Person with whom the Acquiring Person (or an Affiliate
or Associate of the Acquiring Person) has any continuing agreement, arrangement or understanding whether or not in writing regarding
the transferred Rights or (B) a transfer that the Board has determined is part of a plan, arrangement or understanding that
has as a primary purpose or effect the avoidance of this Section 7(e) (a “Pre-Event Transferee”),
(iv) any subsequent transferee receiving transferred Rights from a Post-Event Transferee or a Pre-Event Transferee,
either directly or through one or more intermediate transferees (a “Subsequent Transferee”), or (v) any
nominee of any of the foregoing will, in each case, become null and void without any further action, and no holder (whether or
not such holder is an Acquiring Person or an Affiliate or Associate of an Acquiring Person) of such Rights will have any rights
whatsoever (including the right to exercise) with respect to such Rights or any Rights Certificates that formerly evidenced such
Rights, whether pursuant to any provision of this Agreement or otherwise. From and after the first occurrence of a Triggering Event,
no Rights Certificate will be issued pursuant to this Agreement (including to an Acquiring Person, an Affiliate or Associate of
an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of
the foregoing) that represents one or more Rights that are or have become null and void pursuant to this Section 7(e) or with
respect to any Common Stock otherwise deemed to be Beneficially Owned by any of the foregoing, and any Rights Certificate delivered
to the Rights Agent that represents Rights that are or have become null and void pursuant to this Section 7(e) will be cancelled.
The Company will use all reasonable efforts to ensure that the provisions of this Section 7(e) and Section 4(b) are complied
with, but neither the Company nor the Rights Agent will have any liability to any holder of Rights Certificates or to any other
Person as a result of the Company’s failure to make any determinations with respect to an Acquiring Person, an Affiliate
or Associate of an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any
nominee of any of the foregoing. The Company will provide the Rights Agent with written notice of the identity of any such Acquiring
Person, Affiliate or Associate of an Acquiring Person, Post-Event Transferee, Pre-Event Transferee, Subsequent Transferee
or any nominee of any of the foregoing, and the Rights Agent may rely on such notice in carrying out its duties pursuant to this
Agreement and will be deemed not to have any knowledge of the identity of any such Person unless and until it has received such
notice.

 

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(f) Information
Concerning Ownership. Notwithstanding anything to the contrary in this Agreement or any Rights Certificate, neither the Rights
Agent nor the Company is obligated to undertake any action with respect to a registered holder of Rights upon the occurrence of
any purported exercise or transfer of Rights as set forth in this Section 7 unless such registered holder, in addition to
having complied with the requirements of Section 7(a), has (i) properly completed and duly executed the certificate contained
in the form of election to purchase or form of assignment, as applicable, set forth on the reverse side of the Rights Certificate
surrendered for such exercise or assignment; and (ii) provided such additional evidence (including the identity of the Beneficial
Owner (or former Beneficial Owner) thereof and of the Rights evidenced thereby, and the Affiliates or Associates of such Beneficial
Owner or former Beneficial Owner) as the Company or the Rights Agent may reasonably request. If such registered holder does not
comply with the foregoing requirements, then the Company will be entitled to conclusively deem such Rights to be Beneficially Owned
by an Acquiring Person (or an Affiliate or Associate of an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee,
a Subsequent Transferee or any nominee of any of the foregoing, as applicable) and, accordingly, such Rights will be null and void
and not exercisable or transferable.

 

Section 8. Cancellation
and Destruction of Rights Certificates. All Rights Certificates surrendered for the purpose of exercise, transfer, split up,
combination, redemption or exchange will, if surrendered to the Company or to any of its agents, be delivered to the Rights Agent
for cancellation or in cancelled form, or, if surrendered to the Rights Agent, will be cancelled by it, and no Rights Certificates
will be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company will deliver
to the Rights Agent for cancellation and retirement, and the Rights Agent will so cancel and retire, any Rights Certificate purchased
or acquired by the Company otherwise than upon the exercise thereof. Subject to applicable law, the Rights Agent will maintain
electronic or physical records of all Rights Certificates that have been cancelled or destroyed by the Rights Agent. The Rights
Agent must maintain such electronic or physical records for the time period required by applicable law. The Rights Agent must deliver
all cancelled Rights Certificates to the Company, or shall, at the written request of the Company, destroy, or cause to be destroyed,
such cancelled Rights Certificates, and in such case must promptly deliver a certificate evidencing the destruction thereof to
the Company (or, at the Company’s option, appropriate copies of the electronic or physical records relating to Rights Certificates
so cancelled or destroyed by the Rights Agent).

 

Section 9. Reservation
and Availability of Shares of Capital Stock.

 

(a) Reservation.
The Company covenants and agrees that it will use all reasonable efforts to cause to be reserved and kept available out of its
authorized and unissued Preferred Stock not reserved for another purpose (and, following the occurrence of a Triggering Event,
out of its authorized and unissued Common Stock or other securities, or out of its authorized and issued shares held in treasury),
the number of shares of Preferred Stock (and, following the occurrence of a Triggering Event, shares of Common Stock or other securities)
that will be sufficient to permit the exercise in full of all outstanding Rights.

 

(b) Listing.
So long as the Preferred Stock (and, following the occurrence of a Triggering Event, Common Stock or other securities) issuable
and deliverable upon the exercise of the Rights may be listed on any national securities exchange, the Company must use all reasonable
efforts to cause, from and after such time as the Rights become exercisable (but only to the extent that it is reasonably likely
that the Rights will be exercised), all shares reserved for such issuance to be listed on such exchange upon official notice of
issuance upon such exercise.

 

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(c) Registration.
The Company must use all reasonable efforts to (i) file, as soon as practicable following the earliest date after the first
occurrence of a Section 11(a)(ii) Event in which the consideration to be delivered by the Company upon exercise of the Rights
is described in Section 11(a)(ii) or Section 11(a)(iii), or as soon as is required by law following the Distribution
Date, as the case may be, a registration statement pursuant to 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
for such securities and (B) the Expiration Date. The Company may temporarily suspend (with prompt written notice of any suspension
provided to the Rights Agent), from time to time for a period not to exceed 120 days after the date set forth in clause (i)
of the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare and file such registration
statement and permit it to become effective or in order to prepare and file any supplement or amendment to such registration statement
that the Board determines to be necessary pursuant to applicable law. Upon any such suspension, the Company will issue a public
announcement stating, and promptly notify the Rights Agent in writing, that the exercisability of the Rights has been temporarily
suspended, as well as issue a public announcement, and promptly notify the Rights Agent in writing, at such time as the suspension
is no longer in effect. In addition, if the Company determines that a registration statement is required following the Distribution
Date, then the Company may temporarily suspend the exercisability of the Rights until such time as such registration statement
has been declared effective. 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, as well
as any other applicable law, rule or regulation. Notwithstanding anything to the contrary in this Agreement, the Rights will not
be exercisable in any jurisdiction unless the requisite qualification in such jurisdiction has been obtained (and the exercise
thereof is permitted pursuant to applicable law, rule or regulation), or an exemption therefrom is available, and until a registration
statement in respect thereof has been declared and remains effective.

 

(d) Valid
Issuance. The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred
Stock (and, following the occurrence of a Triggering Event, Common Stock or other securities of the Company) delivered upon exercise
of Rights will, at the time of delivery of the certificates for such securities (or registration on the transfer books of the Company
or the transfer agent for such securities) (subject to payment of the Exercise Price, if any), be duly and validly authorized and
issued and fully paid and nonassessable.

 

(e) Transfer
Taxes and Governmental Charges. The Company further covenants and agrees that it will pay when due and payable any and all
transfer taxes and governmental charges that may be payable in respect of the original issuance or delivery of Rights Certificates
(or any Preferred Stock, Common Stock or other security of the Company, as the case may be) upon the exercise or exchange of Rights.
Notwithstanding the foregoing, the Company is not required to (i) pay any transfer tax or governmental charge that may be
payable in respect of any transfer or delivery of Rights Certificates (or certificates or depositary receipts for Preferred Stock,
Common Stock or other securities of the Company, as the case may be) in a name other than, or the issuance or delivery of certificates
or depositary receipts for Preferred Stock, Common Stock or other securities of the Company, as the case may be, in a name other
than, that of the registered holder of the Rights Certificate evidencing Rights surrendered for exercise or exchange; or (ii) issue
or deliver any certificates or depositary receipts for Preferred Stock, Common Stock or other securities of the Company, as the
case may be, upon the exercise or exchange of any Rights until any such transfer tax or charge has been paid (any such transfer
tax or charge being payable by the registered holder of such Rights Certificate at the time of surrender or exchange) or it has
been established to the Company’s satisfaction that no such tax or charge is due. The foregoing shall also apply to any transfer
taxes and governmental charges that may be payable in respect of any uncertificated Rights Certificates, shares or other securities.

 

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Section 10. Record
Date for Securities Issued. Each Person in whose name any certificate for a number of 0.00667 portions of a share of Preferred
Stock (or any other security of the Company, including Common Stock) is issued (or registration on the transfer books of the Company
or the applicable transfer agent is effected) upon the exercise or exchange of Rights will for all purposes be deemed to have become
the holder of record of such fractional shares of Preferred Stock (or other security of the Company) represented thereby on, and
such certificate will be dated (or registration on the transfer books of the Company or the applicable transfer agent effected),
the date on which the Rights Certificate evidencing such Rights was duly surrendered and payment of the applicable Exercise Price,
if any, together with any applicable transfer tax or governmental charge required to be paid by the holder of such Rights Certificate
in accordance with Section 9(e), was made. However, if the date of such surrender and payment is a date upon which the transfer
books of the Company (or the applicable transfer agent) are closed, then such Person will be deemed to have become the record holder
of such fractional shares of Preferred Stock (or other securities of the Company) on, and such certificate will be dated (or registration
on the transfer books of the Company or the applicable transfer agent effected), the next succeeding Business Day on which the
transfer books of the Company (or the applicable transfer agent) are open. Prior to the exercise of the Rights evidenced thereby,
the holder of a Rights Certificate is not entitled to any rights of a holder of Preferred Stock (or any other security of the Company)
for which the Rights are exercisable, including the right to vote, to receive dividends or other distributions, or to exercise
any preemptive rights, and is not entitled to receive any notice of any proceedings of the Company, except as provided in this
Agreement.

 

Section 11. Adjustment
of Exercise Price, Number and Kind of Shares or Number of Rights. The Exercise Price, the number and kind of shares or other
property 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) Certain
Events.

 

(i) Certain
Adjustments to Preferred Stock. Notwithstanding anything to the contrary in this Agreement, in the event that the Company at
any time after the Rights Dividend Declaration Date (A) declares a dividend on the Preferred Stock payable in Preferred Stock,
(B) subdivides or splits the outstanding Preferred Stock, (C) combines or consolidates the outstanding Preferred Stock
(by reverse stock split or otherwise) into a smaller number of shares of Preferred Stock or (D) issues any shares of its capital
stock in a reclassification of the Preferred Stock (including any such reclassification in connection with a share exchange, consolidation
or merger in which the Company is the continuing or surviving corporation), then, in each such event, except as otherwise provided
in this Section 11(a)(i) and Section 7(e), (1) the Exercise Price in effect at the time of the record date for such
dividend or of the effective date of such subdivision, split, combination, consolidation or reclassification, and the number and
kind of Preferred Stock or capital stock of the Company, as the case may be, issuable on such date, will be proportionately adjusted
so that the holder of any Right exercised after such time will be entitled to receive, upon payment of the Exercise Price then
in effect, the aggregate number and kind of Preferred Stock or securities of the Company, as the case may be, that, if such Right
had been exercised immediately prior to such date (and at a time when the Preferred Stock transfer books of the Company were open),
such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, split, combination,
consolidation or reclassification, it being understood that in no event will 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 the exercise of one
Right. If an event occurs that would require an adjustment pursuant to both this Section 11(a)(i) and Section 11(a)(ii),
then the adjustment provided for in this Section 11(a)(i) will be in addition to, and will be made prior to, any adjustment
required pursuant to Section 11(a)(ii).

 

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(ii) Exercise
of Rights Following Certain Events. Subject to Section 23 and Section 24, in the event that any Person, at any time
after the Rights Dividend Declaration Date, becomes an Acquiring Person, unless the event causing such Person to become an Acquiring
Person is a transaction set forth in Section 13(a), then promptly following the occurrence of such event each holder of a
Right, except as provided below and in Section 7(e), will thereafter have the right to receive for each Right, upon exercise
thereof in accordance with the terms of this Agreement and payment of the Exercise Price in effect immediately prior to the occurrence
of such event, in lieu of a number of 0.00667 portions of a share of Preferred Stock, such number of shares of Common Stock
as equals the quotient obtained by dividing (A) the product obtained by multiplying (1) the Exercise Price in effect
immediately prior to the first occurrence of such event by (2) the number of 0.00667 portions of a share of Preferred
Stock for which a Right was exercisable (or would have been exercisable if the Distribution Date had occurred) immediately prior
to the first occurrence of such event by (B) 50 percent of the Current Per Share Market Price for Common Stock on the
date of such first occurrence of such event (such number of shares, the “Adjustment Shares”). Notwithstanding
the foregoing, the Exercise Price and the number of shares of Common Stock so receivable upon the exercise of a Right will be subject
to further adjustment as appropriate in accordance with Section 11(e). In the event that a Section 11(a)(ii) Event has
occurred and the Rights are outstanding, then, subject to Section 27, the Company may not take any action that would eliminate
or diminish the benefits intended to be afforded by the Rights. The Company will promptly notify the Rights Agent in writing when
this Section 11(a)(ii) applies.

 

(iii) Insufficient
Shares of Common Stock. In the event that the number of shares of Common Stock that are authorized by the Company’s Restated
Certificate of Incorporation, as amended, but not outstanding or reserved for issuance for purposes other than upon exercise of
the Rights are not sufficient to permit the exercise in full of the Rights in accordance with Section 11(a)(ii), or if any
necessary regulatory or stockholder approval for such issuance has not been obtained by the Company, then, in the event that the
Rights become exercisable, the Company will (A) determine the value of the Adjustment Shares issuable upon the exercise of
a Right (the “Current Value”) and (B) with respect to each Right (subject to Section 7(e)), make adequate
provision to substitute for the Adjustment Shares issuable pursuant thereto, upon the exercise of a Right and the payment of the
applicable Exercise Price, (1) cash, (2) a reduction in the Exercise Price, (3) Preferred Stock, (4) other
equity securities of the Company (including shares or units of shares of any series of preferred stock that, by virtue of having
dividend, voting and liquidation rights substantially comparable to those of the Common Stock, the Board has deemed in good faith
to have substantially the same value or economic rights as the Common Stock (such shares or units of shares of preferred stock,
“Common Stock Equivalents”)), (5) debt securities of the Company, (6) other assets or (7) any
combination of the foregoing, in each case having an aggregate value equal to the Current Value (less the amount of any reduction
in the Exercise Price), where such aggregate value has been determined by the Board based upon the advice of a nationally recognized
investment banking firm selected by the Board, which determination will be described in a written statement filed with the Rights
Agent and will be binding on the Rights Agent and the holders of the Rights. If the Company has not made adequate provision to
deliver value pursuant to clause (B) above within 30 days following the later of (x) the first occurrence of a Section 11(a)(ii)
Event and (y) the date on which the Company’s right of redemption pursuant to Section 23(a) expires (the later
of (x) or (y), the “Section 11(a)(ii) Trigger Date”), then the Company will be obligated to deliver,
upon the surrender for exercise of a Right and without requiring payment of the Exercise Price, Common Stock (to the extent available
and except to the extent that the Company has not obtained any necessary stockholder or regulatory approval for such issuance)
and such number or fractions of Preferred Stock and then, if necessary, cash, which shares or cash have an aggregate value equal
to the Spread. If the Board determines 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 or that any necessary stockholder or regulatory approval for such
issuance could be obtained, the 30 day period set forth above may be extended and re-extended to the extent necessary
(with prompt written notice of any such extension provided to the Rights Agent) from time to time, but not more than 120 days after
the Section 11(a)(ii) Trigger Date, so that the Company may seek stockholder approval for the authorization of such additional
shares of Common Stock or take such action necessary to obtain such regulatory approval (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 or second sentences of this Section 11(a)(iii), the Company (a) will provide, subject to Section 7(e),
that such action applies uniformly to all outstanding Rights and (b) may suspend the exercisability of the Rights until the
expiration of the Substitution Period in order to seek such stockholder approval, to take any action necessary to obtain such regulatory
approval 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 will issue a public announcement (and promptly provide written notice
to the Rights Agent) stating that the exercisability of the Rights has been temporarily suspended, as well as issue a public announcement
(and promptly provide written notice to the Rights Agent) at such time as the suspension is no longer in effect. For purposes of
this Section 11(a)(iii), the per share value of the Common Stock will be the Current Per Share Market Price of the Common
Stock on the Section 11(a)(ii) Trigger Date and any Common Stock Equivalent will be deemed to have the same value as the value
of the Common Stock on such date. The Board may, but will not be required to, establish procedures to allocate the right to receive
Common Stock upon the exercise of the Rights among holders of Rights pursuant to this Section 11(a)(iii).

 

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(b) Dilutive
Rights Offering. If the Company, at any time after the Rights Dividend Declaration Date, fixes a record date for the issuance
of rights, options or warrants to all holders of Preferred Stock entitling such holders (for a period expiring within 45 days after
such record date) to subscribe for or purchase shares of Preferred Stock or Equivalent Preferred Stock, or securities convertible
into Preferred Stock or Equivalent Preferred Stock, at a price per share (or having a conversion or exercise price per share, if
a security that is convertible into or exercisable for Preferred Stock or Equivalent Preferred Stock) less than the Current Per
Share Market Price of the Preferred Stock on such record date, then, in each such case, the Exercise Price to be in effect after
such record date will be determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the number of Preferred Stock and Equivalent Preferred Stock (if any) outstanding on such record
date, plus the number of Preferred Stock or Equivalent Preferred Stock, as the case may be, that the aggregate offering price of
the total number of Preferred Stock or Equivalent Preferred Stock, as the case may be, to be offered or issued (or the aggregate
initial conversion price of the convertible securities to be offered or issued) would purchase at such Current Per Share Market
Price, and the denominator of which shall be the number of Preferred Stock and Equivalent Preferred Stock (if any) outstanding
on such record date, plus the number of additional shares of Preferred Stock or Equivalent Preferred Stock, as the case may be,
to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible),
it being understood that in no event will 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 the exercise of one Right. If such subscription price may
be paid in a consideration part or all of which is in a form other than cash, then the value of such consideration will be as determined
in good faith by the Board, whose determination will be described in a statement filed with the Rights Agent and will be binding
on the Rights Agent and the holders of the Rights. Shares of Preferred Stock and Equivalent Preferred Stock owned by or held for
the account of the Company will not be deemed outstanding for the purpose of any such computation. Such adjustment will be made
successively whenever such a record date is fixed, and in the event that such rights, options or warrants are not so issued, then
the Exercise Price will be adjusted to be the Exercise Price that would then be in effect if such record date had not been fixed.

 

(c) Distributions.
If the Company, at any time after the Rights Dividend Declaration Date, fixes a record date for the making of a distribution to
all holders of Preferred Stock (including any such distribution made in connection with a share exchange, consolidation or merger
in which the Company is the continuing or surviving corporation) of cash (other than a periodic cash dividend out of the earnings
or retained earnings of the Company), assets (other than a dividend payable in shares of Preferred Stock, but including any dividend
payable in stock other than Preferred Stock), evidences of indebtedness, subscription rights, options or warrants (excluding those
referred to in Section 11(b)), then, in each such case, the Exercise Price to be in effect after such record date will be
determined by multiplying the Exercise Price in effect immediately prior to such record date by a fraction, the numerator of which
will be the Current Per Share Market Price of a share of Preferred Stock on such record date, less the fair market value per share
of Preferred Stock (as determined in good faith by the Board, whose determination will be described in a statement filed with the
Rights Agent and will be conclusive and binding on the Rights Agent and the holders of the Rights) of the portion of the cash,
assets or evidences of indebtedness to be so distributed or of such subscription rights, options or warrants applicable to one
share of Preferred Stock, and the denominator of which shall be such Current Per Share Market Price of a share of Preferred Stock
on such record date, it being understood that in no event will 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 the exercise of one Right. Such adjustment
will be made successively whenever such a record date is fixed, and in the event that such distribution is not so made, then the
Exercise Price will be adjusted to be the Exercise Price that would have been in effect if such record date had not been fixed.

 

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(d) Insignificant
Changes. Notwithstanding anything to the contrary in this Agreement, no adjustment in the Exercise Price is required unless
such adjustment would require an increase or decrease of at least one percent of the Exercise Price, except that any adjustments
that by reason of this Section 11(d) are not required to be made will be carried forward and taken into account in any subsequent
adjustment. All calculations pursuant to this Section 11 must be made to the nearest cent or to the nearest ten-millionth of
a share of Preferred Stock or ten-thousandth of any other share or security, as the case may be. Notwithstanding the
first sentence of this Section 11(d), any adjustment required by this Section 11 must be made no later than the earlier
of (i) three years from the date of the transaction that requires such adjustment or (ii) the Expiration Date.

 

(e) Stock
Other Than Preferred Stock. If as a result of an adjustment made pursuant to Section 11(a) or Section 13(a), the
holder of any Right thereafter exercised will become entitled to receive any shares of capital stock other than Preferred Stock,
then thereafter the number of such other shares so receivable upon exercise of any Right and, if required, the Exercise Price thereof,
will 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 Stock contained in Section 11(a), Section 11(b), Section 11(c), Section 11(d),
Section 11(g), Section 11(h), Section 11(i), Section 11(j), Section 11(k) and Section 11(l), and
the provisions of Section 7, Section 9, Section 10 and Section 13 with respect to the Preferred Stock will
apply on like terms to any such other shares.

 

(f) Rights
Issued Subsequent to Adjustment. All Rights originally issued by the Company subsequent to any adjustment made to the Exercise
Price hereunder will evidence the right to purchase, at the adjusted Exercise Price, the number of 0.00667 portions of a share
of Preferred Stock (and other shares of other capital stock or other securities, assets or cash of the Company, if any) purchasable
from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided in this Agreement.

 

(g) Effect
of Adjustments on Existing Rights. Unless the Company has exercised its election as provided in Section 11(h), upon each
adjustment of the Exercise Price as a result of the calculations made in Section 11(b) and Section 11(c), each Right
outstanding immediately prior to the making of such adjustment will thereafter evidence the right to purchase, at the adjusted
Exercise Price, that number of shares of Preferred Stock (calculated to the nearest ten-millionth of a share of Preferred
Stock) obtained by (i) multiplying (A) the number of 0.00667 portions of a share of Preferred Stock covered by a
Right immediately prior to this adjustment by (B) the Exercise Price in effect immediately prior to such adjustment of the
Exercise Price; and (ii) dividing the product so obtained by the Exercise Price in effect immediately after such adjustment
of the Exercise Price.

 

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(h) Adjustment
in Number of Rights. The Company may elect on or after the date of any adjustment of the Exercise Price to adjust the number
of Rights, in substitution for any adjustment in the number of 0.00667 portions of a share of Preferred Stock purchasable
upon the exercise of a Right. Each of the Rights outstanding after such adjustment of the number of Rights will be exercisable
for the number of 0.00667 portions of a share of Preferred Stock 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 will become that number of Rights (calculated
to the nearest ten-thousandth) obtained by dividing the Exercise Price in effect immediately prior to adjustment of the
Exercise Price by the Exercise Price in effect immediately after adjustment of the Exercise Price. The Company will make a public
announcement (and promptly provide written notice to the Rights Agent) of its election to adjust the number of Rights, indicating
the record date for the adjustment and, if known at the time, the amount of the adjustment to be made. This record date may be
the date on which the Exercise Price is adjusted or any day thereafter, but, if any Rights Certificates have been issued, will
be at least 10 days later than the date of the public announcement. If any Rights Certificates have been issued, upon each adjustment
of the number of Rights pursuant to this Section 11(h), the Company will, as promptly as practicable, distribute or cause
to be distributed to holders of record of Rights Certificates on such record date Rights Certificates evidencing, subject to Section 14,
the additional Rights to which such holders will be entitled as a result of such adjustment, or, at the option of the Company,
will distribute or cause to be distributed to such holders of record in substitution and replacement for the Rights Certificates
held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Rights Certificates
evidencing all the Rights to which such holders will be entitled after such adjustment. Rights Certificates to be so distributed
will be issued, executed and delivered by the Company, and countersigned and delivered by the Rights Agent, in the manner provided
in this Agreement (and may bear, at the option of the Company, the adjusted Exercise Price), and will be registered in the names
of the holders of record of Rights Certificates on the record date specified in the public announcement.

 

(i) Rights
Certificates Unchanged. Irrespective of any adjustment or change in the Exercise Price or the number of 0.00667 portions of
a share of Preferred Stock issuable upon the exercise of the Rights, the Rights Certificates previously and subsequently issued
may continue to express the Exercise Price per 0.00667 of a share of Preferred Stock and the number of 0.00667 portions of
a share of Preferred Stock that were expressed in the initial Rights Certificates issued hereunder.

 

(j) Par
Value Limitations. Before taking any action that would cause an adjustment reducing the Exercise Price below the par or stated
value, if any, of the number of 0.00667 portions of a share of Preferred Stock issuable upon exercise of the Rights, the Company
will take any corporate action that may, in the opinion of its counsel, be necessary in order that the Company may duly and validly
issue as fully paid and nonassessable shares such number of 0.00667 portions of a share of Preferred Stock at such adjusted
Exercise Price.

 

(k) Deferred
Issuance. In any case in which this Section 11 requires that an adjustment in the Exercise Price be made effective as
of a record date for a specified event, the Company may elect to defer (with prompt written notice to the Rights Agent) until the
occurrence of such event the issuance to the holder of any Right exercised after such record date of the number of 0.00667 portions of
a share of Preferred Stock and other capital stock or securities, assets or cash of the Company, if any, issuable upon such exercise
over and above the number of 0.00667 portions of a share of Preferred Stock and other capital stock or securities, assets
or cash of the Company, if any, issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment.
The Company must deliver to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive
such additional shares (fractional or otherwise) or securities upon the occurrence of the event requiring such adjustment.

 

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(l) Reduction
in Exercise Price. Notwithstanding anything to the contrary in this Section 11, the Company is entitled to make such reductions
in the Exercise Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that it,
in its sole discretion, determines to be advisable in order that any (i) consolidation or subdivision of the Preferred Stock
or Common Stock, (ii) issuance wholly for cash of any Preferred Stock or Common Stock at less than the applicable Current
Per Share Market Price, (iii) issuance wholly for cash of any Preferred Stock or Common Stock or securities that by their
terms are convertible into or exchangeable for Preferred Stock or Common Stock, (iv) stock dividend or (v) issuance of
rights, options or warrants referred to in this Section 11 hereafter made by the Company to holders of Preferred Stock or
Common Stock is not taxable to such stockholders.

 

(m) No
Diminishment of Benefit of Rights. The Company covenants and agrees that, after the Distribution Date and so long as the Rights
are then outstanding, it will not, except as permitted by Section 23, Section 24 or Section 27, take (or permit
to be taken) any action if at the time that such action is taken it is reasonably foreseeable that such action will diminish substantially
or otherwise eliminate the benefits intended to be afforded by the Rights.

 

(n) Certain
Adjustments to Common Stock. Notwithstanding anything to the contrary in this Agreement, in the event that the Company, at
any time after the Rights Dividend Declaration Date and prior to the Distribution Date, (i) declares or pays a dividend on
the Common Stock payable in shares of Common Stock, (ii) subdivides or splits the shares of outstanding Common Stock (other
than by the payment of dividends payable in shares of Common Stock), (iii) combines or consolidates the outstanding Common
Stock (by reverse stock split or otherwise) into a lesser number of shares of Common Stock or (iv) issues any shares of its
capital stock in a reclassification of the Common Stock (including any such reclassification in connection with a share exchange,
consolidation or merger in which the Company is the continuing or surviving corporation), then, in each such event, except as otherwise
provided in this Section 11 or Section 7(e): (A) each share of Common Stock (or shares of capital stock issued in
such reclassification of the Common Stock) outstanding immediately following such time will have associated with it the number
of Rights as were associated with one share of Common Stock immediately prior to the occurrence of such event; (B) the Exercise
Price in effect at the time of the record date for such dividend or of the effective date of such subdivision, split, combination,
consolidation or reclassification will be adjusted so that the Exercise Price thereafter equals the result obtained by multiplying
the Exercise 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 such event and the denominator of which shall be the total number of shares
of Common Stock outstanding immediately after such event, it being understood that in no event will 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
the exercise of such Right; and (C) the number of 0.00667 portions of a share of Preferred Stock (or shares of such other
capital stock) issuable upon the exercise of each Right outstanding after such event equals the number of 0.00667 portions of
a share of Preferred Stock (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 becomes outstanding after an adjustment has been made pursuant to this Section 11(n)
will have issued with it that number of Rights, exercisable at the Exercise Price and for the number of 0.00667 portions of
a share of Preferred Stock (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 that would require an adjustment pursuant
to both this Section 11(n) and Section 11(a)(ii), then the adjustment provided for in this Section 11(n) will be
in addition to, and will be made prior to, any adjustment required pursuant to Section 11(a)(ii). The adjustments provided
for in this Section 11(n) will be made successively whenever such a dividend is declared or paid or such a subdivision, split,
combination, consolidation or reclassification is effected.

 

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(o) Adjustment
of Rights Associated with Certain Distributions. Other than in connection with a transaction contemplated by Section 11(n),
in the event that the Company, at any time after the Rights Dividend Declaration Date and prior to the Distribution Date, issues
or distributes any securities or assets in respect of shares of Common Stock (other than (A) a distribution or dividend of
its capital stock and (B) pursuant to any non-extraordinary periodic cash dividend), then the Company will make
such adjustments, if any, in the Exercise Price or the number of Rights or securities or other property purchasable upon exercise
of Rights as the Board, in its sole discretion, may deem to be appropriate under the circumstances in order to adequately protect
the interests of the holders of the Rights generally, and the Company and the Rights Agent will amend this Agreement as necessary
to provide for such adjustments.

 

Section 12. Certificate
of Adjusted Exercise Price or Number of Shares. Whenever an adjustment is made, or any event affecting the Rights or their
exercisability (including an event that causes the Rights to become null and void) occurs as provided in Section 11 or Section 13,
the Company must promptly (a) prepare a certificate setting forth such adjustment or describing such event and providing a
reasonably detailed statement of the facts, computations and methodology accounting for such adjustment or event; (b) provide
the Rights Agent and each transfer agent for the Common Stock or Preferred Stock a copy of such certificate; and (c) if a
Distribution Date has occurred, mail a brief summary of such adjustment or event to each holder of a Rights Certificate in accordance
with Section 25. Notwithstanding the foregoing, the failure of the Company to make or provide such certification or notice
will not affect the validity of such adjustment or the force or effect of the requirement for such adjustment. The Rights Agent
will (i) be fully protected in relying on any such certificate and on any adjustment or statement contained therein; (ii) have
no duty or liability with respect thereto; and (iii) not be deemed to have knowledge of any such adjustment or event unless
and until it has received such certificate.

 

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

 

(a) Certain
Transactions. In the event that, following a Stock Acquisition Date, directly or indirectly, (i) the Company consolidates
with, or merges with and into, any other Person (other than a wholly owned Subsidiary of the Company in a transaction that complies
with Section 11(m)) and the Company is not the continuing or surviving corporation of such consolidation or merger; (ii) any
Person (other than a wholly owned Subsidiary of the Company in a transaction that complies with Section 11(m)) consolidates
with, or merges with and into, the Company, and the Company is the continuing or surviving corporation of such consolidation or
merger and, in connection with such consolidation or merger, all or part of the Common Stock are changed into or exchanged for
stock or other securities of any other Person or the Company, or cash or any other property; or (iii) the Company sells, exchanges,
mortgages or otherwise transfers (or one or more of its Subsidiaries sells, exchanges, mortgages or otherwise transfers), in one
transaction or a series of related transactions, assets, cash flow or earning power aggregating to 50 percent or more of the
assets, cash flow or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other
than the Company or one or more of its wholly owned Subsidiaries in one or more transactions, each of which individually (and together)
complies with Section 11(m)), then, concurrent with and in each such case, proper provision must be made so that (A) each
holder of a Right (except as provided in Section 7(e)) thereafter has the right to receive, upon the exercise thereof at a
price per Right equal to the Exercise Price multiplied by the number of 0.00667 portions of a share of Preferred Stock for
which a Right was exercisable immediately prior to the occurrence of such Section 13 Event in accordance with the terms of
this Agreement, and in lieu of Preferred Stock, such number of duly and validly authorized and issued and fully paid and nonassessable
and freely tradable shares of Common Stock of the Principal Party, free of any liens, encumbrances, rights of first refusal or
other adverse claims, as shall be equal to the result obtained by (1) multiplying the then current Exercise Price by the number
of 0.00667 portions of a share of Preferred Stock for which a Right is exercisable immediately prior to the first occurrence
of a Section 13 Event (or, if a Section 11(a)(ii) Event has occurred prior to the first occurrence of a Section 13
Event, multiplying the number of such 0.00667 portions of a share of Preferred Stock for which a Right was exercisable immediately
prior to the first occurrence of a Section 11(a)(ii) Event by the Exercise Price in effect immediately prior to such first
occurrence of a Section 11(a)(ii) Event); and (2) dividing that product (which, following the first occurrence of a Section 13
Event, will be referred to as the “Exercise Price” for each Right and for all purposes of this Agreement) by 50 percent
of the Current Per Share Market Price of the Common Stock of such Principal Party on the date of consummation of such Section 13
Event, it being understood that the price per Right so payable and the number of shares of Common Stock of such Principal Party
so receivable upon exercise of a Right will be subject to further adjustment as appropriate in accordance with Section 11(e)
to reflect any events covered thereby occurring in respect of the Common Stock of such Principal Party after the occurrence of
such Section 13 Event; (B) such Principal Party will thereafter be liable for, and must assume, by virtue of such Section 13
Event, all the obligations and duties of the Company pursuant to this Agreement; (C) the term “Company” will thereafter
be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 will apply only
to such Principal Party following the first occurrence of a Section 13 Event; (D) such Principal Party must take such
steps (including the reservation of a sufficient number of shares of its Common Stock) in connection with the consummation of any
such transaction as may be necessary to ensure that the provisions hereof will thereafter be applicable, as nearly as reasonably
may be, in relation to its Common Stock thereafter deliverable upon the exercise of the Rights; (E) the provisions of Section 11(a)(ii)
will be of no effect following the first occurrence of any Section 13 Event; and (F) upon the subsequent occurrence of
any consolidation, merger, sale, exchange, mortgage, transfer or other extraordinary transaction in respect of such Principal Party,
each holder of a Right will thereupon be entitled to receive, upon exercise of a Right and payment of the Exercise Price as provided
in this Section 13(a), such cash, shares, rights, warrants and other property that such holder would have been entitled to
receive had such holder, at the time of such transaction, owned the Common Stock of the Principal Party receivable upon the exercise
of a Right pursuant to this Section 13(a), and such Principal Party must take such steps (including reservation of a sufficient
number of shares of its capital stock) as may be necessary to permit the subsequent exercise of the Rights in accordance with the
terms hereof for such cash, shares, rights, warrants and other property. For purposes hereof, the “earning power” of
the Company and its Subsidiaries will be determined in good faith by the Board on the basis of the operating income 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 of its Subsidiaries during the three fiscal years preceding such date,
during the period that such business was operated by the Company or any of its Subsidiaries).

 

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(b) Principal
Party. For purposes of this Agreement, the term “Principal Party” means (i) in the case of any transaction
described in clause (i) or (ii) of Section 13(a) (A) the Person that is the issuer of the securities into which
the Common Stock are converted in the consolidation or merger, or, if there is more than one such issuer, the issuer whose Common
Stock have the greatest aggregate market value of shares outstanding; or (B) if no securities are so issued, (1) the
Person that is the other party to the consolidation or merger, if such Person survives the consolidation or merger, or, if there
is more than one such Person, the Person whose Common Stock have the greatest aggregate market value of shares outstanding; (2) if
the Person that is the other party to the merger does not survive such consolidation or merger, the Person that does survive such
consolidation or merger (including the Company if it survives); or (3) the Person resulting from the consolidation or merger;
and (ii) in the case of any transaction described in clause (iii) of Section 13(a), the Person that is the party
receiving the greatest portion of the assets, cash flow or earning power transferred pursuant to such transaction or transactions,
or, if more than one Person that is a party to such transaction or transactions receives the same portion of the assets or earning
power so transferred and each such portion would, were it not for the other equal portions, constitute the greatest portion of
the assets or earning power so transferred, or if the Person receiving the greatest portion of the assets or earning power cannot
be determined, whichever of such Persons is the issuer of Common Stock having the greatest aggregate market value of shares outstanding; provided, however,
that in the case of each of clause (i) and (ii) of this Section 13(b), if the shares of Common Stock of such Person
is not at such time, or has not been continuously over the preceding 12-month period, registered pursuant to Section 12
of the Exchange Act, then if such Person is (x) a direct or indirect Subsidiary of another Person whose Common Stock is and
has been so registered, the term “Principal Party” will refer to such other Person, (y) a direct or indirect Subsidiary
of more than one Person whose shares of Common Stock is and has been so registered, the term “Principal Party” will
refer to whichever of such Persons is the issuer of Common Stock having the greatest aggregate market value of shares outstanding,
or (z) if such Person is owned, directly or indirectly, by a joint venture formed by two or more Persons that are not owned,
directly or indirectly, by the same Person, the rules set forth in clauses (x) and (y) above will apply to each of the
owners having an interest in the venture as if the Person owned by the joint venture was a Subsidiary of both or all of such joint
venturers, and the Principal Party in each such case must bear the obligations set forth in this Section 13 in the same ratio
as its interest in such Person bears to the total of such interests.

 

(c) Certain
Arrangements. The Company will not consummate or permit to occur any Section 13 Event unless (A) the Principal Party
has a sufficient number of authorized, unissued and unreserved shares of Common Stock to permit the exercise in full of the Rights
in accordance with this Section 13 and (B) prior thereto the Company and the Principal Party have executed and delivered
to the Rights Agent a supplemental agreement confirming that (1) the requirements of this Section 13 will be promptly
performed in accordance with their terms, (2) the Principal Party will, upon consummation of such Section 13 Event, assume
this Agreement in accordance with Section 13(a) and Section 13(b), (3) such Section 13 Event will not result
in a default by the Principal Party pursuant to this Agreement (as it has been assumed by the Principal Party) and (4) the
Principal Party, as soon as practicable after the date of such Section 13 Event and at its own expense, will:

 

(i)
prepare and file a registration statement pursuant to the Securities Act with respect to the Rights and the securities purchasable
upon exercise of the Rights on an appropriate form, and use its best efforts to cause such registration statement to (x) become
effective as soon as practicable after such filing and (y) remain effective (with a prospectus at all times meeting the requirements
of the Securities Act) until the Expiration Date, and similarly comply with applicable state securities laws;

 

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(ii)
use its best efforts to list (or continue the listing of) the Rights and the securities purchasable upon exercise of the Rights
on a national securities exchange or to meet the eligibility requirements for quotation on a national securities exchange and to
list (and continue the listing of) the Rights and the securities purchasable upon exercise of the Rights on a national securities
exchange;

 

(iii)
deliver to holders of the Rights historical financial statements for the Principal Party and its Affiliates that comply in all
respects with the requirements for registration on Form 10 (or any successor form) promulgated under the Exchange Act; and

 

(iv)
take all other action as may be necessary to allow the Principal Party to issue the securities purchasable upon exercise of the
Rights.

 

(d) Prohibited
Transactions.

 

(i)
Notwithstanding anything to the contrary in this Agreement, if the Principal Party has a provision in any of its authorized securities
or in its organizational documents that would have the effect of (i) causing the Principal Party to issue (other than to holders
of Rights pursuant to Section 13), in connection with, or as a consequence of, the consummation of a Section 13 Event,
Common Stock or common stock equivalents of the Principal Party at less than the then Current Per Share Market Price thereof or
securities exercisable for, or convertible into, Common Stock or common stock equivalents of the Principal Party at less than such
Current Per Share Market Price; or (ii) providing for any special payment, tax, charge or similar provision in connection
with the issuance of the Common Stock of the Principal Party pursuant to the provisions of this Section 13, then the Company
hereby agrees with each holder of Rights that it will not consummate any such Section 13 Event unless prior thereto the Company
and such Principal Party have executed and delivered to the Rights Agent a supplemental agreement providing that such provision
has been cancelled, waived, amended or rescinded, or that such authorized securities will be redeemed, so that such provision will
have no effect in connection with, or as a consequence of, the consummation of such Section 13 Event.

 

(ii)
Notwithstanding anything to the contrary in this Agreement, the Company hereby agrees with each holder of Rights that it will not
consummate or permit to occur any Section 13 Event if (A) at the time or immediately after such Section 13 Event
there are any rights, warrants, instruments or securities outstanding, or any agreements or arrangements, that, as a result of
the consummation of such Section 13 Event, would eliminate or diminish in any material respect the benefits intended to be
afforded by the Rights; (B) all rights of first refusal or preemptive rights in respect of the issuance of Common Stock or
common stock equivalents of the Principal Party upon exercise of outstanding Rights have not been irrevocably waived or rendered
inapplicable; (C) prior to, simultaneously with or immediately after such Section 13 Event, the stockholders of the Person
who constitutes, or would constitute, the Principal Party have received a distribution of Rights previously owned by such Person
or any of its Affiliates or Associates; or (D) the form or nature of organization of the Principal Party would preclude or
limit the exercisability of the Rights.

 

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(e) Continued
Applicability. The provisions of this Section 13 will similarly apply to successive mergers, consolidations, sales, exchanges,
mortgages, transfers or other extraordinary transactions. In the event that a Section 13 Event occurs at any time after the
occurrence of a Section 11(a)(ii) Event, then the Rights that have not previously been exercised will thereafter become exercisable
in the manner described in Section 13(a) (without taking into account any prior adjustment required by Section 11(a)(ii)).

 

Section 14. Fractional
Rights and Fractional Shares.

 

(a) Cash
in Lieu of Fractional Rights. The Company will not be required to issue fractions of Rights (except prior to the Distribution
Date as provided in Section 11(n)) or to distribute Rights Certificates that evidence fractional Rights. In lieu of such fractional
Rights, the Company will pay to the registered holders of the Rights Certificates with regard to which such fractional Rights would
otherwise be issuable an amount in cash equal to the same fraction of the Current Per Share Market Price of a whole Right, calculated
as of the Trading Day immediately prior to the date on which such fractional Rights would have been otherwise issuable.

 

(b) Cash
in Lieu of Fractional Shares of Preferred Stock. The Company will not be required to issue fractions of shares of Preferred
Stock (other than fractions that are integral multiples of 0.00667 of a share of Preferred Stock) upon exercise or exchange
of the Rights or to distribute certificates that evidence fractional shares of Preferred Stock (other than fractions that are integral
multiples of 0.00667 of a share of Preferred Stock). Interests in fractions of shares of Preferred Stock in integral multiples
of 0.00667 of a share of Preferred Stock may, at the election of the Company, be evidenced by depositary receipts pursuant
to an appropriate agreement between the Company and a depositary selected by the Company but only if such agreement provides that
the holders of such depositary receipts have all of the rights, privileges and preferences to which they are entitled as Beneficial
Owners of the Preferred Stock represented by such depositary receipts. In lieu of fractional shares of Preferred Stock that are
not integral multiples of 0.00667 of a share of Preferred Stock, the Company may pay to the registered holders of Rights Certificates
at the time that such Rights are exercised or exchanged as provided in this Agreement an amount in cash equal to the same fraction
of the current market value of 0.00667 of a share of Preferred Stock. For purposes of this Section 14(b), the current
market value of 0.00667 of a share of Preferred Stock will be 0.00667 multiplied by of the Current Per Share Market Price
of a share of Preferred Stock, calculated as of the Trading Day immediately prior to the date of such exercise or exchange.

 

(c) Cash
in Lieu of Fractional Shares of Common Stock. The Company is not required to issue fractions of shares of Common Stock or to
distribute certificates that evidence fractional shares of Common Stock upon the exercise or exchange of Rights. In lieu of such
fractional shares of Common Stock, the Company may pay to the registered holders of Rights Certificates at the time such Rights
are exercised or exchanged as provided in this Agreement an amount in cash equal to the same fraction of the current market value
of a share of Common Stock. For purposes of this Section 14(c), the current market value of a share of Common Stock will be
the Current Per Share Market Price of a share of Common Stock, calculated as of the Trading Day immediately prior to the date of
such exercise or exchange.

 

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(d) Waiver
of Fractional Rights. Except as permitted by this Section 14, the holder of a Right, by the acceptance of such Right,
expressly waives such holder’s right to receive any fractional Rights or any fractional shares of any security upon the exercise
or exchange of a Right.

 

(e) Procedure
for Payment. Whenever a payment for fractional Rights, Preferred Stock or Common Stock is to be made by the Rights Agent pursuant
to this Agreement, the Company will (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable
detail the facts related to such payment and the prices or formulas utilized in calculating such payments; and (ii) provide
sufficient monies to the Rights Agent to make such payments. The Rights Agent will be fully protected in relying upon such certificate
and will have no duty with respect thereto, and will not be deemed to have knowledge of any payment for fractional Rights, Preferred
Stock or Common Stock pursuant to this Agreement unless and until the Rights Agent has received such certificate and sufficient
monies.

 

Section 15. Rights
of Action. All rights of action in respect of this Agreement, except those rights of action given to the Rights Agent pursuant
to this Agreement, are vested in the respective registered holders of the Rights Certificates (and, prior to the Distribution Date,
the registered holders of Common Stock). Any registered holder of any Rights Certificate (or, prior to the Distribution Date, any
registered holder of Common Stock), without the consent of the Rights Agent or of the holder of any other Rights Certificate (or,
prior to the Distribution Date, any other holder of Common Stock), may, on such holder’s own behalf and for such holder’s
own benefit and the benefit of other holders of Rights, enforce, and may institute and maintain any suit, action or proceeding
against the Company to enforce, this Agreement or otherwise act in respect of such holder’s right to exercise such holder’s
Rights evidenced by such Rights Certificate in the manner provided in such Rights 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
of any Person (including the Company) subject to this Agreement, and injunctive relief against actual or threatened breaches or
violations of this Agreement by any Person (including the Company), in each case without having to post a bond.

 

Section 16. Agreement
of Rights 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 not be evidenced by a Rights Certificate and will be transferable only in connection
with the transfer of shares of Common Stock;

 

(b)
after the Distribution Date, the Rights Certificates are transferable only on the transfer books of the Rights Agent if surrendered
at the office of the Rights Agent designated for such purpose, duly endorsed or accompanied by a proper instrument of transfer
and with the appropriate forms and certificates fully completed;

 

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(c)
subject to Section 6(a) and Section 7(f), the Company and the Rights Agent may deem and treat the Person in whose name
the Rights Certificate (or, prior to the Distribution Date, the associated certificate representing shares of Common Stock or Book
Entry Shares, as applicable) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any
notations of ownership or writing on the Rights Certificates or the associated certificate representing shares of Common Stock
or Book Entry Shares, as applicable, made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and
neither the Company nor the Rights Agent (subject to Section 7(e)) will be affected by any notice to the contrary;

 

(d)
notwithstanding anything to the contrary in this Agreement, neither the Company nor the Rights Agent will have any liability to
any holder of a Right (or a beneficial interest in a Right) or other Person as a result of the inability of the Company or the
Rights Agent to perform any of their respective obligations pursuant to this Agreement by reason of any preliminary or permanent
injunction or other order, judgment, decree or ruling (whether interlocutory or final) issued by a court of competent jurisdiction
or by a governmental, regulatory, self-regulatory or administrative agency or commission, or any statute, rule, regulation or executive
order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation,
it being understood that the Company will use all reasonable efforts to have any such injunction, order, judgment, decree or ruling
lifted or otherwise overturned as promptly as practicable;

 

(e)
Rights that are Beneficially Owned by certain Persons will, under the circumstances set forth in Section 7(e), become null
and void; and

 

(f)
this Agreement may be supplemented or amended from time to time in accordance with Section 27.

 

Section 17. Holder
of Rights Certificate Not Deemed to be a Stockholder. No holder, as such, of any Rights Certificate will be entitled to vote
or receive dividends or be deemed for any purpose to be the holder of the number of 0.00667 portions of a share of Preferred
Stock or any other securities of the Company that may at any time be issuable on the exercise or exchange of the Rights represented
thereby, nor will anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Rights 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 specifically provided in Section 25), or to receive dividends
or subscription rights, or otherwise, until the Rights evidenced by such Rights Certificate have been exercised or exchanged in
accordance with the provisions hereof.

 

Section 18. Concerning
the Rights Agent.

 

(a) Compensation;
Reimbursement; Indemnification. 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 by the Rights Agent, the reasonable and documented out-of-pocket expenses
and counsel fees and other disbursements incurred by the Rights Agent in connection with the preparation, negotiation, delivery,
execution, amendment and administration of this Agreement and the exercise and performance of its duties hereunder, including any
taxes or governmental charges imposed on it as a result of any action taken by it pursuant to this Agreement (other than taxes
and governmental charges on the fees payable to it). The Company also agrees to indemnify the Rights Agent for, and to hold it
harmless against, any loss, liability, damage, judgment, fine, penalty, claim, demand, settlement, cost or expense (including the
reasonable and documented expenses and fees of its outside counsel) incurred without gross negligence, bad faith or willful misconduct
on the part of the Rights Agent (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable judgment
of a court of competent jurisdiction) for any action taken, suffered or omitted to be taken by the Rights Agent in connection with
the execution, acceptance, administration, exercise and performance of its duties pursuant to this Agreement, including the costs
and expenses of defending against any claim of liability. The provisions of this Section 18 and Section 20 will survive
the termination of this Agreement, the exercise, exchange or expiration of the Rights and the resignation, replacement or removal
of the Rights Agent.

 

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(b) Reliance
by the Rights Agent. The Rights Agent is authorized to rely conclusively on, and will be protected and incur no liability for,
or in respect of, any action taken, suffered or omitted to be taken by it in connection with its acceptance and administration
of this Agreement, and the exercise and performance of its duties pursuant to this Agreement, in reliance upon any (i) Rights
Certificate; (ii) certificate (or registration on the transfer books of the Company, including, in the case of uncertificated
shares, by notation in book entry accounts reflecting ownership) for Preferred Stock, Common Stock or other securities of the Company
issuable upon exercise of Rights; or (iii) instrument of assignment or transfer, power of attorney, endorsement, affidavit,
letter, notice, direction, consent, certificate, statement or other paper or document reasonably believed by it, in the absence
of gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or willful misconduct must be determined
by a final, non-appealable judgment of a court of competent jurisdiction), to be genuine and to be duly executed and,
where necessary, verified or acknowledged, by the proper Person, or otherwise upon the advice of counsel as set forth in Section 20.
The Rights Agent will not be required to take notice, or be deemed to have any knowledge, of any fact, event or determination of
which it was supposed to receive notice hereunder (including any dates or events defined in this Agreement or the designation of
any Person as an Acquiring Person or an Affiliate or Associate of an Acquiring Person), and the Rights Agent will be fully protected
and will incur no liability for failing to take action in connection therewith, unless and until it has received such notice in
writing.

 

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

 

(a) Merger
or Consolidation of Rights Agent. Any Person into which the Rights Agent or any successor Rights Agent may be merged or with
which it may effect a share exchange or be consolidated, or any Person resulting from any merger, share exchange or consolidation
to which the Rights Agent or any successor Rights Agent is a party, or any Person succeeding to the corporate trust, stock transfer
or stockholder services business of the Rights Agent or any successor Rights Agent, will be the successor to the Rights Agent pursuant
to this Agreement without the execution or filing of any paper or any further act on the part of any of the Parties so long as
such Person is eligible for appointment as a successor Rights Agent pursuant to the provisions of Section 21. The purchase
of all or substantially all of the Rights Agent’s assets employed in the performance of this Agreement, or transfer or rights
agent services generally, will be deemed to be a merger, share exchange or consolidation for purposes of this Section 19.
If at the time that such successor Rights Agent succeeds to the agency created by this Agreement any of the Rights Certificates
have been countersigned but not delivered, then any such successor Rights Agent may adopt the countersignature of any predecessor
Rights Agent and deliver such Rights Certificates so countersigned, and if at that time any of the Rights Certificates have not
been countersigned, then any successor Rights Agent may countersign such Rights Certificates either in the name of the predecessor
Rights Agent or in the name of the successor Rights Agent. In all such cases, such Rights Certificates will have the full force
and effect provided in the Rights Certificates and in this Agreement.

 

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(b) Change
of Name of Rights Agent. If at any time the name of the Rights Agent is changed and at such time any of the Rights Certificates
have been countersigned but not delivered, then the Rights Agent may adopt the countersignature under its prior name and deliver
such Rights Certificates so countersigned, and if at any time any of the Rights Certificates have not been countersigned, then
the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name. In all such cases, such
Rights Certificates will have the full force and effect provided in the Rights Certificates and in this Agreement.

 

Section 20. Duties
of Rights Agent. The Rights Agent undertakes to perform only the duties and obligations expressly imposed by this Agreement
(and no implied duties or obligations) upon the following terms and conditions, all of which the Company and the holders of Rights
Certificates by their acceptance thereof, will be bound:

 

(a) Consultation
with Counsel. Before the Rights Agent acts or refrains from acting, the Rights Agent may consult with legal counsel that it
selects (who may be legal counsel for the Company or an employee of the Rights Agent), and the advice or opinion of such counsel
will be full and complete authorization and protection to the Rights Agent, and the Rights Agent will incur no liability for or
in respect of, any action taken, suffered or omitted to be taken by it in the absence of gross negligence, bad faith or willful
misconduct (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable judgment
of a court of competent jurisdiction) in accordance with such advice or opinion.

 

(b) Reliance
on Certificate of the Company. Whenever in the performance of its duties pursuant to this Agreement the Rights Agent deems
it necessary or desirable that any fact or matter (including the identity of any Acquiring Person and the determination of the
Current Per Share Market Price of any security) be proved or established by the Company prior to taking, suffering or omitting
to take any action hereunder, such fact or matter (unless other evidence in respect thereof is specifically prescribed in this
Agreement) may be deemed to be conclusively proved and established by a certificate signed by any one of the Appropriate Officers
and delivered to the Rights Agent, and such certificate will be full and complete authorization and protection to the Rights Agent,
and the Rights Agent will incur no liability for or in respect of any action taken, suffered or omitted to be taken in the absence
of gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or willful misconduct must be determined
by a final, non-appealable judgment of a court of competent jurisdiction) by it pursuant to the provisions of this Agreement
in reliance upon such certificate.

 

(c) General
Limitation of Liability. The Rights Agent will be liable hereunder to the Company and any other Person only for its and its
directors’, officers’, employees’, Affiliates’, agents’, advisors’ and representatives’
own gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or willful misconduct must be determined
by a final, non-appealable judgment of a court of competent jurisdiction). In no event will the Rights Agent be liable
for special, punitive, indirect, incidental or consequential loss or damage of any kind whatsoever (including lost profits), even
if the Rights Agent has been advised of the possibility or likelihood of such loss or damage.

 

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(d) No
Liability for Certain Matters. The Rights Agent will not be liable hereunder for or by reason of any of the statements of fact
or recitals contained in this Agreement, the Rights Certificates or any certificate (or registration on the transfer books of the
Company, including, in the case of uncertificated shares, by notation in book entry accounts reflecting ownership) for Preferred
Stock, Common Stock or other securities of the Company issuable upon exercise of Rights, or be required to verify the same (except,
in each case, its countersignature thereof, if applicable), and all such statements and recitals are and will be deemed to have
been made by the Company only.

 

(e) No
Responsibility for Certain Matters. The Rights Agent will not (i) have any liability for or be under any responsibility
in respect of the validity of this Agreement or the execution and delivery hereof (except the due authorization, execution and
delivery hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature
thereof) or any certificate (or registration on the transfer books of the Company, including, in the case of uncertificated shares,
by notation in book entry accounts reflecting ownership) for Preferred Stock, Common Stock or other securities of the Company issuable
upon exercise of Rights (except, in each case, its countersignature thereof, if applicable); (ii) be responsible for any change
in the exercisability or exchangeability of Rights (including certain Rights becoming null and void pursuant to Section 7(e)),
except with respect to the exercise of Rights evidenced by Rights Certificates after notice of such change has been provided by
the Company; (iii) be responsible for any breach by the Company of any covenant or failure by the Company to satisfy any condition
contained in this Agreement or any Rights Certificate; (iv) be responsible for (A) any adjustment or change required
pursuant to Section 3, Section 11, Section 13, Section 23 or Section 24; (B) the manner, method or
amount of any such adjustment or change; or (C) ascertaining the existence of facts that would require any such adjustment
or change (except with respect to the exercise of Rights evidenced by Rights Certificates after receipt by the Rights Agent of
a certificate furnished pursuant to Section 12 describing such adjustment or change); (v) be responsible for any determination
by the Board of the Current Per Share Market Price of any security pursuant to this Agreement; or (vi) by any act hereunder
be deemed to make any representation or warranty as to the authorization or reservation of any securities to be issued pursuant
to this Agreement or any Rights Certificate or as to whether any such securities will, when issued, be duly and validly authorized
and issued and fully paid and nonassessable.

 

(f) Further
Assurances. 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 its duties pursuant to this Agreement.

 

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(g) Acceptance
of Instructions. The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance
of its duties hereunder from any of the Appropriate Officers, and it is authorized to apply to any such director or officer for
advice or instructions in connection with its duties pursuant to this Agreement. Such advice and instructions will be full and
complete authorization and protection to the Rights Agent, and the Rights Agent will not be liable for or in respect of any action
taken, suffered or omitted to be taken by it in accordance with the written advice or instructions of any such director or officer
or for any delay in acting while waiting for those instructions, in each case in the absence of its own gross negligence, bad faith
or willful misconduct (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable judgment
of a court of competent jurisdiction). The Rights Agent will be fully and completely authorized and protected in relying on the
latest-dated instructions received from any such director or officer. Any application by the Rights Agent for written instructions
from the Company may, at the option of the Rights Agent, set forth in writing any action proposed to be taken, suffered or omitted
to be taken by the Rights Agent pursuant to this Agreement and the date on or after which such action will be taken, suffered or
omitted to be taken. The Rights Agent will not be liable for any action taken or suffered by, or omission of, the Rights Agent
in accordance with a proposal included in any such application on or after (but not including) the date specified in such application
(which date must not be less than 10 Business Days after, but not including, the date on which any such director or officer of
the Company actually receives such application, unless any such director or officer has consented in writing to an earlier date)
unless, prior to taking or suffering any such action (or the effective date in the case of an omission), the Rights Agent has received,
in response to such application, written instructions with respect to the proposed action or omission specifying a different action
to be taken, suffered or omitted to be taken.

 

(h) Dealing
in Securities of the Company. The Rights Agent and any member, stockholder, director, officer, employee or Affiliate of the
Rights Agent (in each case, other than an Acquiring Person) may buy, sell or deal in any of the Rights or other securities of the
Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money
to the Company or otherwise act as fully and freely as though it were not the Rights Agent pursuant to this Agreement. Nothing
herein will preclude the Rights Agent or any such member, stockholder, director, officer, employee or Affiliate from acting in
any other capacity for the Company or for any other Person.

 

(i) Use
of Agents. The Rights Agent may execute and exercise any of the rights or powers vested in it by this Agreement or perform
any duty under this Agreement either itself (including through its directors, officers and employees) or by or through its attorneys
or agents, and the Rights Agent will not be answerable or accountable for any act, omission, default, neglect or misconduct of
any such attorneys or agents or for any loss to the Company, to the holders of Rights or to any other Person resulting from any
such act, omission, default, neglect or misconduct in the absence of gross negligence, bad faith or willful misconduct in the selection
and continued employment thereof (which gross negligence, bad faith or willful misconduct must be determined by a final, non-appealable judgment
of a court of competent jurisdiction).

 

(j) No
Risk of Funds. No provision of this Agreement requires the Rights Agent to expend or risk its own funds or otherwise incur
any financial liability in the performance of any of its duties hereunder (other than costs and expenses incurred by the Rights
Agent in providing services to the Company in the ordinary course of its business as the Rights Agent) or in the exercise of its
rights if it reasonably believes, after consultation with counsel, that repayment of such funds or adequate indemnification against
such risk or liability is not reasonably assured to it.

 

(k) No
Action with Respect to Certain Rights Certificates. If, with respect to any Rights Certificate surrendered to the Rights Agent
for exercise or transfer, the certificate contained in the form of election to purchase or form of assignment, as the case may
be, has either (i) not been properly completed or (ii) indicates an affirmative response to clause (1) or clause
(2) thereof, then the Rights Agent will not take any further action with respect to such requested exercise or transfer without
first consulting with the Company.

 

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(l) Delivery
of Rights Holder List. From time to time after the Distribution Date, upon the written request of the Company, the Rights Agent
will promptly deliver to the Company a list, as of the most recent practicable date (or as of such earlier date as may be specified
by the Company), of the record holders of Rights and Rights Certificates.

 

(m) Responsibility
for Information. The Rights Agent will not be required to take notice or be deemed to have notice of any fact, event or determination
(including any dates or events defined in this Agreement or the designation of any Person as an Acquiring Person or an Affiliate
or Associate of an Acquiring Person) pursuant to this Agreement unless and until the Rights Agent is specifically notified in writing
of such fact, event or determination by the Company or by receipt of a properly completed and duly executed Rights Certificate
(and form of election to purchase or form of assignment).

 

Section 21. Change
of Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties pursuant to this
Agreement upon 60 days’ written notice to the Company (or such lesser notice as is acceptable to the Company) and to each
transfer agent of the Preferred Stock and the Common Stock (in the event that the Rights Agent or one of its Affiliates is not
also such transfer agent), delivered to the Company in accordance with Section 26. In the event that any transfer agency relationship
in effect between the Company and the Rights Agent or any of its Affiliates terminates, the Rights Agent will be deemed to have
automatically resigned, and be discharged from its duties pursuant to this Agreement, on the effective date of such termination,
and the Company will be responsible for sending any required notices. The Company may remove the Rights Agent or any successor
Rights Agent, with or without cause, upon 30 days’ notice in writing to the Rights Agent or any successor Rights Agent, as
the case may be, and to each transfer agent of the Preferred Stock and the Common Stock (in the event that the Rights Agent or
one of its Affiliates is not also such transfer agent), delivered to the Rights Agent in accordance with Section 26. If the
Rights Agent resigns or is removed or otherwise becomes incapable of acting, then the resigning, removed or incapacitated Rights
Agent must remit to the Company, or to any successor Rights Agent, all books, records, funds, certificates or other documents or
instruments of any kind then in its possession that were acquired by such resigning, removed or incapacitated Rights Agent in connection
with its services as the Rights Agent. Following such removal, resignation or incapacity, the Company will appoint a successor
to the Rights Agent. If the Company fails to make such appointment within a period of 30 days after giving written 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 registered holder of a Rights Certificate (who must, together with such notice, submit such registered holder’s
Rights Certificate for inspection by the Company), then the Rights Agent or such registered holder or the incumbent Rights Agent
may apply, at the Company’s expense, to a court of competent jurisdiction for the appointment of a new Rights Agent. Any
successor Rights Agent, whether appointed by the Company or by such court, must be either (a) a Person organized, in good
standing and doing business pursuant to the laws of the United States or any state of the United States that is authorized pursuant
to such laws to exercise corporate trust, stock transfer or stockholder services, is subject to supervision or examination by federal
or state authorities and has at the time of its appointment as Rights Agent a combined capital and surplus of at least $100,000,000
or (b) an Affiliate or direct or indirect wholly owned Subsidiary of such Person. After appointment, the successor Rights
Agent will be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent
without further act or deed, and the predecessor Rights Agent must 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 such purpose.
Not later than the effective date of any such appointment, the Company will file notice thereof in writing with the predecessor
Rights Agent and each transfer agent of the Preferred Stock and the Common Stock (in the event that the Rights Agent or one of
its Affiliates is not also such transfer agent), and deliver such notice to the holders of Rights Certificates in accordance with
Section 26. Notwithstanding anything to the contrary in this Agreement, failure to give any notice provided for in this Section 21,
or any defect therein, will 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. Upon appointment, any successor Rights Agent will, unless the context requires
otherwise, be deemed to be the Rights Agent for all purposes of this Agreement.

 

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Section 22. Issuance
of New Rights Certificates. Notwithstanding anything to the contrary in this Agreement or the Rights, the Company may, at its
option, issue new Rights Certificates evidencing Rights in such form as may be approved by the Board to reflect any adjustment
or change in the Exercise Price and the number or kind or class of shares or other securities or property purchasable pursuant
to the Rights Certificates 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 Expiration Date, the Company will, with respect
to shares of Common Stock so issued or sold (including pursuant to the exercise of stock options or pursuant to any employee benefit
plan or arrangement or upon the exercise, conversion or exchange of other securities of the Company outstanding as of the Rights
Dividend Declaration Date or upon the exercise, conversion or exchange of securities issued by the Company after the Rights Dividend
Declaration Date (except, in each case, as may otherwise be provided in the instruments governing such securities)), and may, in
any other case, if deemed necessary or appropriate by the Board, issue Rights Certificates representing the appropriate number
of Rights in connection with such issuance or sale. However, (a) no such Rights Certificate will be issued if, and to the
extent that, the Company is advised by counsel that such issuance 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;
(b) no such Rights Certificate will be issued if, and to the extent that, appropriate adjustment will otherwise have been
made in lieu of the issuance thereof; and (c) the Company will have no obligation to distribute Rights Certificates to any
Acquiring Person, Affiliate or Associate of an Acquiring Person, Post-Event Transferee, Pre-Event Transferee, Subsequent
Transferee or any nominee of any of the foregoing.

 

Section 23. Redemption.

 

(a) Right
to Redeem. The Board may, at its option, at any time prior to the earlier of (i) the Distribution Date or (ii) the
Close of Business on the Final Expiration Date, redeem all but not less than all of the then outstanding Rights at a redemption
price of $0.0001 per Right, as such amount may be appropriately adjusted to reflect any stock split, stock dividend, recapitalization
or similar transaction occurring after the Rights Dividend Declaration Date (such redemption price, the “Redemption Price”).
Notwithstanding anything to the contrary in this Agreement, the Rights will not be exercisable after the first occurrence of a
Section 11(a)(ii) Event until such time as the Company’s right of redemption pursuant to this Section 23 has expired.
The Company may, at its option, pay the Redemption Price in Common Stock (based on the Current Per Share Market Price of Common
Stock at the time of redemption), cash or any other form of consideration deemed appropriate by the Board, in its sole discretion,
to be at least equivalent to the Redemption Price. Such redemption of the Rights by the Board may be made effective at such time,
on such basis and with such conditions as the Board in its sole discretion may establish. The date on which the Board elects to
make the redemption effective is referred to as the “Redemption Date.”

 

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(b) General
Redemption Procedures. Immediately upon the action of the Board ordering the redemption of the Rights (or at such later time
as the Board may establish for the effectiveness of such redemption), evidence of which will have been filed with the Rights Agent,
and without any further action and without any notice, the right to exercise the Rights will terminate and the only right thereafter
of the holders of Rights will be to receive the Redemption Price for each Right so held. The Company will promptly give public
notice of any such redemption (with prompt written notice thereof also provided to the Rights Agent). Promptly after the action
of the Board ordering the redemption of the Rights, the Company will give, or cause to be given, notice of such redemption to the
holders of Rights Certificates in accordance with Section 26, with any notice that is so provided deemed to be given whether
or not the holder receives the notice. Each such notice of redemption must state the method by which the payment of the Redemption
Price is to be made. The failure to give, or any defect in, any notice required by this Section 23 will not affect the legality
or validity of the action taken by the Board or of the redemption.

 

(c) Discharge
of Obligations. Notwithstanding anything to the contrary in this Agreement, in the event of a redemption pursuant to Section 23(a),
the Company may, at its option, discharge all of its obligations with respect to the Rights by (i) issuing a press release
or making a publicly-available filing with the SEC announcing the manner of redemption of the Rights and (ii) mailing payment
of the Redemption Price to the holders of Rights at the addresses of such holders as shown on the transfer books of the Rights
Agent or, prior to the Distribution Date, on the transfer books of the Company or the transfer agent for the Common Stock, and
upon such action, all outstanding Rights Certificates will be null and void without any further action by the Company.

 

(d) Prohibited
Purchases. Notwithstanding anything to the contrary in this Agreement, neither the Company nor any of its Affiliates or Associates
may redeem, acquire or purchase for value any Rights at any time in any manner other than as specifically set forth in this Section 23
or in Section 24, or other than in connection with the purchase or repurchase of shares of Common Stock prior to the Distribution
Date.

 

Section 24. Exchange.

 

(a) Exchange
of Common Stock for Rights. 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 will not include Rights that have become null and void pursuant
to the provisions of Section 7(e)) for Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately
adjusted to reflect any stock split, stock dividend, recapitalization or similar transaction occurring after the Rights Dividend
Declaration Date (such exchange ratio, the “Exchange Ratio,” and such determination by the Board to effect such
exchange, an “Exchange Determination”). Notwithstanding the foregoing, the Board is not empowered to effect
an Exchange Determination at any time after any Person (other than any Exempt Person), together with all Affiliates and Associates
of such Person, becomes the Beneficial Owner of 50 percent or more of the shares of Common Stock then outstanding. Notwithstanding
the foregoing, from and after the occurrence of a Section 13 Event, any Rights that have not previously been exchanged pursuant
to this Section 24(a) will thereafter be exercisable only in accordance with Section 13 and may not be exchanged (or
eligible for exchange) pursuant to this Section 24(a).

 

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(b) Exchange
Procedures.

 

(i) Manner
of Effecting Exchange. Immediately following an Exchange Determination and without any further action or notice, the right
to exercise the then outstanding Rights (other than Rights that have become null and void pursuant to the provisions of Section 7(e))
will terminate and the only right thereafter of a holder of such Rights is to receive that number of shares equal to the number
of such Rights held by such holder multiplied by the Exchange Ratio. The Company will promptly give public notice of any such exchange
(with prompt written notice thereof also provided to the Rights Agent), and thereafter will promptly give, or cause to be given,
notice of such exchange to the holders of the then outstanding Rights (other than Rights that have become null and void pursuant
to the provisions of Section 7(e)) by mailing such notice, in accordance with Section 26, with any notice that is so
provided deemed to be given whether or not the holder receives the notice. Each such notice of exchange must state the method by
which the exchange of shares of Common Stock for Rights is to be effected (including the actions that must be taken by the holders
of Rights to receive shares of Common Stock in exchange for Rights) and, in the event of any partial exchange, the number of Rights
that are to be exchanged. Any partial exchange will be effected pro rata based on the number of Rights (other than Rights that
have become null and void pursuant to the provisions of Section 7(e)) held by each holder of Rights. Following an Exchange
Determination, the Company may implement such procedures as it deems appropriate, in its sole discretion, to minimize the possibility
that any shares of Common Stock (or other consideration) issuable pursuant to this Section 24 are received by Persons whose
Rights are null and void pursuant to Section 7(e). Prior to effecting any exchange, the Company may require, or cause the
trustee of the Trust to require, as a condition thereof, that any registered holder of Rights provide such evidence (including
the identity of the Beneficial Owner (or former Beneficial Owner) thereof and the Affiliates or Associates of such Beneficial Owner
or former Beneficial Owner) as the Company may reasonably request in order to determine if such Rights are null and void pursuant
to Section 7(e). If such registered holder does not comply with the foregoing requirements, then the Company will be entitled
to conclusively deem such Rights to be Beneficially Owned by an Acquiring Person (or an Affiliate or Associate of an Acquiring
Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the foregoing)
and, accordingly, such Rights will be null and void and not exchangeable in connection herewith. Any shares of Common Stock (or
other securities) issued at the direction of the Board in connection with an Exchange Determination will be duly and validly authorized
and issued and fully paid and nonassessable, and the Company will be deemed to have received as consideration for such issuance
a benefit having a value that is at least equal to the aggregate par value of the Common Stock (or other securities) so issued.
The failure to give, or any defect in, any notice required by this Section 24 will not affect the legality or validity of
the action taken by the Board or of such exchange.

 

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(ii) Use
of Trust. The exchange of the Rights pursuant to Section 24(a) may be made effective at such time, on such basis and with
such conditions as the Board, in its sole discretion, may establish. Without limiting the foregoing, prior to effecting an exchange
pursuant to Section 24(a), the Board may direct the Company to enter into a trust agreement in such form and with such terms
as the Board approves (the “Trust Agreement”). If the Board so directs, then the Company must enter into the
Trust Agreement and must issue to the trust created by such agreement (the “Trust”) all of the Common Stock
(or other consideration) issuable pursuant to the exchange (or any portion thereof that has not previously been issued in connection
with the exchange). From and after the time at which such Common Stock (or other consideration) are issued to the Trust, all stockholders
then entitled to receive Common Stock (or other consideration) pursuant to the exchange will be entitled to receive such shares
or consideration (and any dividends or distributions made thereon after the date on which such shares or consideration are deposited
into the Trust) only from the Trust and solely upon compliance with the relevant terms and provisions of the Trust Agreement.

 

(c) Insufficient
Shares. In the event that there are not sufficient shares of Common Stock issued but not outstanding or authorized but unissued
to permit any exchange of Rights as contemplated in accordance with Section 24(a), then the Company will either take such
action as may be necessary to authorize additional shares of Common Stock for issuance upon exchange of the Rights or alternatively,
at the option of the Board, with respect to each Right (i) pay cash in an amount equal to the Current Exchange Value in lieu
of issuing shares of Common Stock in exchange therefor; (ii) issue debt or equity securities (or a combination thereof) having
a value equal to the Current Exchange Value in lieu of issuing shares of Common Stock in exchange for each such Right, where the
value of such securities will be determined by the Board based upon the advice of a nationally recognized investment banking firm
selected by the Board, which determination will be described in a written statement filed with the Rights Agent and will be binding
on the Rights Agent and the holders of Rights; or (iii) deliver any combination of cash, property, Common Stock, Preferred
Stock, Equivalent Preferred Stock or other securities having a value equal to the Current Exchange Value in exchange for each Right.
To the extent that the Company determines that some action need be taken pursuant to this Section 24(c), then the Board may
temporarily suspend the exercisability of the Rights for a period of up to 120 days following the date on which the Exchange Determination
has occurred in order to seek any authorization of additional shares of Common Stock or to decide the appropriate form of distribution
to be made pursuant to the above provision and to determine the value thereof. Upon any such suspension, the Company will issue
a public announcement stating, and notify the Rights Agent in writing, that the exercisability of the Rights has been temporarily
suspended, as well as issue a public announcement, and notify the Rights Agent in writing, at such time as the suspension is no
longer in effect.

 

(d) Cash
in Lieu of Fractional Shares of Common Stock. In connection with an Exchange Determination, the Company will not be required
to issue fractions of shares of Common Stock or to distribute certificates that evidence fractional shares of Common Stock. In
lieu of such fractional shares of Common Stock, the Company may pay to the registered holders of Rights Certificates with regard
to which such fractional shares of Common Stock would otherwise be issuable an amount in cash equal to the same fraction of the
Current Per Share Market Price of a share of Common Stock, calculated as of the Trading Day immediately prior to the date of the
Exchange Determination.

 

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Section 25. Notice
of Certain Events.

 

(a) Certain
Distributions. If the Company proposes, at any time after the Distribution Date, to (i) declare or pay any dividend payable
in stock of any class to the holders of Preferred Stock or to make any other distribution to the holders of Preferred Stock (other
than a regular quarterly or periodic cash dividend out of earnings or retained earnings of the Company); (ii) offer to the
holders of Preferred Stock rights or warrants to subscribe for or to purchase any additional Preferred Stock or shares of stock
of any class or any other securities, rights or options; (iii) effect any reclassification of the Preferred Stock (other than
a reclassification involving only the subdivision of outstanding Preferred Stock); (iv) effect any share exchange, consolidation
or merger into or with any other Person (other than a wholly owned Subsidiary of the Company in a transaction that complies with
Section 11(m)); (v) effect any sale or other transfer (or permit one or more of its Subsidiaries to effect any sale or
other transfer), in one transaction or a series of related transactions, of more than 50 percent of the assets, cash flow
or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person; (vi) effect the liquidation,
dissolution or winding up of the Company; (vii) declare or pay any dividend on the Common Stock payable in shares of Common
Stock; or (viii) 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 will give written notice of such
proposed action to the Rights Agent and the holders of Rights Certificates in accordance with Section 26, which notice must
specify the record date for the purposes of such stock dividend, distribution of rights or warrants, or the date on which such
subdivision, combination, reclassification, share exchange, consolidation, merger, sale, transfer, liquidation, dissolution or
winding up is to take place and the date of participation therein by the holders of Preferred Stock or Common Stock, if any such
date is to be fixed, and such notice must be so given in the case of any action covered by clause (i) or (ii) above at
least 10 Business Days prior to but not including the record date for determining holders of Preferred Stock for purposes of such
action, and in the case of any such other action, at least 10 Business Days prior to but not including the date of the taking of
such proposed action or the date of participation therein by the holders of Preferred Stock or Common Stock, whichever is earlier.

 

(b) Certain
Events. If any Triggering Event has occurred, then (i) the Company will as soon as practicable thereafter give, or cause
to be given, to the Rights Agent and each holder of Rights Certificates a notice in accordance with Section 26 of the occurrence
of such Triggering Event, which notice must specify the event and the consequences of the event to holders of Rights pursuant to
Section 11(a)(ii) or Section 13; and (ii) all references in this Section 25 to Preferred Stock will thereafter
be deemed to be references to Common Stock or, if appropriate, other securities.

 

Section 26. Notices.
Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights Certificate
(or, prior to the Distribution Date, of any share of Common Stock) to or on the Company will be sufficiently given or made if in
writing and sent by a recognized national overnight delivery service or first-class mail, postage prepaid, addressed (in each case,
until another address is filed in writing with the Rights Agent by the Company) as follows:

 

KBS
Fashion Group Limited.

Xin Fengge
Building

Yupu Industrial
Park

Shishi City,
Fujian Province 362700

People’s
Republic of China

 

    40

     

    

 

with
a copy (which will not constitute notice) to:

 

The
Crone Law Group P.C.

500
Fifth Avenue

Suite
938

New
York, NY 10110

		Attention:	Mark Crone

Joseph Laxague

		E-mail:	mcrone@cronelawgroup.com

    
jlaxague@cronelawgroup.com

 

Subject
to the provisions of Section 21, any notice or demand authorized by this Agreement to be given or made by the Company or by
the holder of any Rights Certificate (or, prior to the Distribution Date, of any Common Stock) to or on the Rights Agent will be
sufficiently given or made if in writing and sent by a recognized national overnight delivery service or first-class mail, postage
prepaid, addressed (in each case, until another address is filed in writing with the Company by the Rights Agent) as follows:

 

American
Stock Transfer & Trust Company, LLC

6201
15th Avenue

Brooklyn,
NY 11219

Attention:
Relationship Management

 

Notices
or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holders of Rights or Rights
Certificates (or, if prior to the Distribution Date, to the holders of Common Stock) will be sufficiently given or made if in writing
and sent by a recognized national overnight delivery service or first-class mail, postage prepaid, addressed to such holder at
the address of such holder as shown on the transfer books of the Rights Agent or the Company or the transfer agent for the Common
Stock. Any notice that is sent or mailed in the manner herein provided will be deemed given whether or not the holder receives
the notice. Notwithstanding anything to the contrary in this Agreement, prior to the Distribution Date, the issuance of a press
release or the making of a publicly-available filing by the Company with the SEC will constitute sufficient notice by the Rights
Agent or the Company to the holders of securities of the Company, including the Rights, for all purposes of this Agreement and
no other notice need be given.

 

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Section 27. Supplements
and Amendments. Prior to the occurrence of a Distribution Date, the Company may in its sole discretion supplement or
amend this Agreement in any respect without the approval of any holders of Rights Certificates, Preferred Stock or Common
Stock, and the Rights Agent must, if the Company so directs, execute such supplement or amendment. From and after the
occurrence of a Distribution Date, the Company and the Rights Agent may from time to time supplement or amend this Agreement
without the approval of any holders of Rights Certificates in order to (i) cure any ambiguity; (ii) correct or
supplement any provision contained herein that may be defective or inconsistent with any other provisions herein or otherwise
defective, including any change in order to satisfy any applicable law, rule or regulation; (iii) shorten or lengthen
any time period hereunder; or (iv) change or supplement the provisions hereunder in any manner that the Company may deem
necessary or desirable and that does not adversely affect the interests of the Rights Agent or the holders of Rights (other
than an Acquiring Person, an Affiliate or Associate of an Acquiring Person, a Post-Event Transferee,
a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the foregoing), including extending the
Final Expiration Date. However, this Agreement may not be supplemented or amended to lengthen, pursuant to clause
(iii) of the previous sentence, a time period relating to when the Rights may be redeemed at a time when the Rights are
not then redeemable, it being understood that that the right of the Board to extend the Distribution Date does not require
any amendment or supplement hereunder. Upon the delivery of a certificate from an Appropriate Officer that states that the
proposed supplement or amendment is in compliance with the terms of this Section 27, the Rights Agent must execute such
supplement or amendment; provided, however, that any supplement or amendment that does not amend
Section 18, Section 19, Section 20 or Section 21 or this Section 27 or any other Section of this
Agreement in a manner that is adverse to the Rights Agent will become effective immediately upon execution by the Company,
whether or not also executed by the Rights Agent. Notwithstanding anything to the contrary in this Agreement, the Rights
Agent may, but will not be required to, execute any such supplement or amendment that adversely affects its rights, duties,
obligations or immunities pursuant to this Agreement. Prior to the Distribution Date, the interests of the holders of Rights
and Rights Certificates will be deemed to be coincident with the interests of the holders of Common Stock.

 

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

 

Section 29. Determinations
and Actions by the Board. The Board (or an authorized committee thereof) has the exclusive power and authority to
administer this Agreement and to exercise all rights and powers specifically granted to the Board or the Company pursuant to
this Agreement, or as may be necessary or advisable in the administration of this Agreement, including the right and power to
(a) interpret the provisions of this Agreement and (b) make all determinations deemed necessary or advisable for
the administration of this Agreement (including a determination as to whether to redeem the Rights or to amend or supplement
this Agreement). All such actions, calculations, interpretations and determinations (including, for purposes of clause
(ii) below, all omissions with respect to the foregoing) that are done or made by the Board (or an authorized committee
thereof) in good faith will (i) be final, conclusive and binding on the Company, the Rights Agent, the holders of Rights
Certificates and all other Persons; and (ii) not subject the Board (or an authorized committee thereof) or any of the
directors serving on the Board to any liability to any Person, including the Rights Agent and the holders of Rights
Certificates. In administering this Agreement and exercising the rights and powers specifically granted to the Board and to
the Company hereunder, and in interpreting this Agreement and making any determination hereunder, the Board (or an authorized
committee thereof) may consider any and all facts, circumstances or information that it deems to be necessary, useful or
appropriate. The Rights Agent is always entitled to assume that the Board acted in good faith and will be fully protected and
incur no liability in reliance thereon.

 

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Section 30. Benefits
of this Agreement. Nothing in this Agreement may be construed to give to any Person other than the Company, the Rights Agent
and the registered holders of Rights Certificates (and, prior to the Distribution Date, the registered holders of shares of Common
Stock) any legal or equitable right, remedy or claim pursuant to this Agreement. This Agreement is for the sole and exclusive benefit
of the Company, the Rights Agent and the registered holders of Rights Certificates (and, prior to the Distribution Date, the registered
holders of shares of Common Stock).

 

Section 31. 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 will
remain in full force and effect and will in no way be affected, impaired or invalidated. Notwithstanding anything to the contrary
in this Agreement, if any such term, provision, covenant or restriction is held by such court or authority to be invalid, void
or unenforceable and the Board determines in its good faith judgment that severing the invalid language from this Agreement would
adversely affect the purpose or effect of this Agreement, then the right of redemption set forth in Section 23 will be reinstated
and will not expire until the Close of Business on the 10th Business Day following the date of such determination by the Board.

 

Section 32. Governing
Law; Exclusive Jurisdiction.

 

(a) Governing
Law. This Agreement and each Right and Rights Certificate issued hereunder will be deemed to be a contract made pursuant to
the laws of the Republic of Marshall Islands and for all purposes will be governed by and construed in accordance with the laws
of the Republic of Marshall Islands applicable to contracts made and to be performed entirely within the Republic of Marshall Islands.

 

(b) Exclusive
Jurisdiction.

 

(i)
The Company and the registered holders of Rights Certificates (and, prior to the Distribution Date, the registered holders of Common
Stock) each hereby irrevocably submits to the exclusive jurisdiction of the Court of Chancery of the State of Delaware, or, if
such court lacks subject matter jurisdiction, the United States District Court for the District of Delaware, over any suit, action
or proceeding arising out of or relating to or concerning this Agreement. The Company and the registered holders of Rights Certificates
(and, prior to the Distribution Date, the registered holders of Common Stock) each acknowledge that the forum designated by this
Section 32(b)(i) has a reasonable relation to this Agreement and to such Persons’ relationship with one another.

 

(ii)
The Company and the registered holders of Rights Certificates (and, prior to the Distribution Date, the registered holders of
Common Stock) each hereby waive, to the fullest extent permitted by applicable law, any objection that they now or hereafter
have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding brought in any court referred
to in Section 32(b)(i) (or the appellate courts thereof). The Company and the registered holders of Rights Certificates
(and, prior to the Distribution Date, the registered holders of Common Stock) each undertake not to commence any action
subject to this Agreement in any forum other than the forum described in Section 32(b)(i). The Company and the
registered holders of Rights Certificates (and, prior to the Distribution Date, the registered holders of Common Stock) each
hereby agree that, to the fullest extent permitted by applicable law, a final and non-appealable judgment in any
such suit, action or proceeding brought in any such court will be conclusive and binding upon such Persons.

 

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Section 33. Counterparts.
This Agreement and any supplements or amendments to this Agreement may be executed in any number of counterparts and each such
counterpart will for all purposes be deemed to be an original, and all such counterparts will together constitute one and the same
instrument, it being understood that all parties need not sign the same counterpart. A signature to this Agreement transmitted
electronically (including by fax and .pdf) will have the same authority, effect and enforceability as an original signature. No
Party may raise the use of such electronic transmission to deliver a signature, or the fact that any signature or agreement or
instrument was transmitted or communicated through such electronic transmission, as a defense to the formation of a contract, and
each Party forever waives any such defense, except to the extent such defense relates to lack of authenticity.

 

Section 34. Interpretation.

 

(a) References
to this Agreement. Unless otherwise indicated, when a reference is made in this Agreement to an Article, Section, Schedule
or Exhibit, that reference is to an Article, Section, Schedule or Exhibit to this Agreement, as applicable. All Exhibits attached
to this Agreement or referred to in this Agreement are incorporated in and made a part of this Agreement.

 

(b) Hereof,
Including, etc. When used in this Agreement, (i) the words “hereof,” “herein” and “herewith”
and words of similar import will, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular
provision of this Agreement; and (ii) the words “include,” “includes” and “including”
will be deemed in each case to be followed by the words “without limitation.”

 

(c) Neither,
etc. Unless the context otherwise requires, “neither,” “nor,” “any,” “either”
and “or” are not exclusive.

 

(d) Extent.
The word “extent” in the phrase “to the extent” means the degree to which a subject or other thing extends,
and does not simply mean “if.”

 

(e) Dollars.
When used in this Agreement, references to “$” or “Dollars” are references to U.S. dollars.

 

(f) Defined
Terms. All terms defined in this Agreement will have the same defined meanings when used in any certificate or other document
made or delivered pursuant to this Agreement unless otherwise defined in such certificate or document.

 

(g) Gender
and Number. The meaning assigned to each capitalized term defined and used in this Agreement is equally applicable to both
the singular and the plural forms of such term, and words denoting any gender include all genders. Where a word or phrase is defined
in this Agreement, each of its other grammatical forms has a corresponding meaning.

 

(h) References
to Parties. When reference is made to any party to this Agreement or any other agreement or document, such reference includes
that party’s successors and permitted assigns. References to any Person include the successors and permitted assigns of that
Person.

 

(i) Legislation;
Contracts. A reference to any specific legislation or to any provision of any legislation includes any amendment to, and any
modification, re-enactment or successor thereof, any legislative provision substituted therefor and all rules, regulations
and statutory instruments issued thereunder or pursuant thereto. References to any agreement or contract shall be to that agreement
or contract as amended, modified or supplemented from time to time.

 

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(j) Headings.
The table of contents and headings set forth in this Agreement are for convenience of reference purposes only and will not affect
or be deemed to affect in any way the meaning or interpretation of this Agreement or any term or provision of this Agreement.

 

(k) Calculation
of Time Periods. Unless otherwise indicated, (i) when calculating the period of time before which, within which or following
which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period
will be excluded; (ii) if the last day of such period is not a Business Day, then the period in question will end on the next
Business Day; (iii) the measure of a period of one month or year for purposes of this Agreement will be the day of the following
month or year corresponding to the starting date; and (iv) if no corresponding date exists, then the end date of such period
being measured will be the next actual day of the following month or year (for example, one month following February 18 is
March 18 and one month following March 31 is May 1). References to “from” or “through” any date
mean, unless otherwise specified, from and including or through and including such date, respectively.

 

(l) Summaries.
No summary of this Agreement or any Exhibit, Schedule or other document delivered with this Agreement will affect the meaning or
interpretation of this Agreement or such Exhibit, Schedule or document.

 

(m) Calculation
of Outstanding Shares. For all purposes of this Agreement, any calculation of the number of shares of Common Stock outstanding
at any particular time, including for purposes of determining the particular percentage of the outstanding shares of Common Stock
of which any Person is the Beneficial Owner, will include the number of shares of Common Stock not outstanding at the time of such
calculation that such Person is otherwise deemed to Beneficially Own for purposes of this Agreement, but the number of shares of
Common Stock not outstanding that such Person, together with all Affiliates and Associates of such Person, is otherwise deemed
to Beneficially Own for purposes of this Agreement will not be deemed to be outstanding for the purpose of computing the percentage
of outstanding shares of Common Stock that are Beneficially Owned by any other Person (unless such other Person is also otherwise
deemed to Beneficially Own for purposes of this Agreement such shares of Common Stock not outstanding).

 

Section 35. Costs
of Enforcement. The Company agrees with each registered holder of Rights Certificates (and, prior to the Distribution
Date, the registered holders of shares of Common Stock) that if the Company or any other Person the securities of which are
purchasable upon exercise of the Rights fails to fulfill any of its obligations pursuant to this Agreement, then the Company
or such Person must reimburse any registered holder of Rights Certificates for the costs and expenses (including legal fees)
incurred by such holder in any action to enforce such holder’s rights pursuant to any Right or this Agreement.

 

Section 36. Force
Majeure. Notwithstanding anything to the contrary in this Agreement, the Rights Agent will not be liable for any delays or
failures in performance resulting from acts beyond its reasonable control, including fires, floods, natural disasters, acts of
God, terrorist acts, shortage of supply, legal restrictions, breakdowns or malfunctions, interruptions or malfunction of computer
facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor
difficulties, war or civil unrest.

 

    45

     

    

 

Section 37. USA
PATRIOT Act. The Company acknowledges that the Rights Agent is subject to the customer identification program requirements
pursuant to the USA PATRIOT Act and its implementing regulations, and that the Rights Agent must obtain, verify and record information
that allows the Rights Agent to identify the Company. Accordingly, prior to accepting an appointment hereunder, the Rights Agent
has received information from the Company that will help the Rights Agent to identify the Company, including the Company’s
physical address, tax identification number, organizational documents, certificate of good standing, license to do business or
such other information that the Rights Agent deems necessary and, pending verification of such received information, the Rights
Agent may request additional such information. The Company agrees to provide all reasonably requested information necessary for
the Rights Agent to verify the Company’s identity in accordance with such customer identification program requirements.

 

[Signature page
follows]

 

    46

     

    

 

The parties are
signing this Agreement on the date stated in the introductory clause.

 

	 	KBS FASHION
    GROUP LIMITED
	 	 	 
	 	By:	/s/
    Sun Lei
	 	 	Name:
    Sun Lei
	 	 	Title:  
    Chief Executive Officer
	 	 
	 	AMERICAN
    STOCK TRANSFER & TRUST COMPANY, LLC
	 	 	 
	 	By:	 
	 	 	Name:
    
	 	 	Title:
    

 

[Signature Page
to Rights Agreement]

 

    

     

    

 

Exhibit A

 

CERTIFICATE
OF DESIGNATION OF SERIES B PARTICIPATING PREFERRED STOCK OF

KBS FASHION
GROUP LIMITED

 

    A-1

     

    

 

EXHIBIT B

 

FORM OF

RIGHTS CERTIFICATE

 

	Certificate No. R-[●]	[●] Rights

 

NOT EXERCISABLE
AFTER MARCH 11, 2031 OR SUCH EARLIER DATE AS THE RIGHTS ARE REDEEMED, EXCHANGED OR TERMINATED. THE RIGHTS ARE SUBJECT TO REDEMPTION,
AT THE OPTION OF THE COMPANY (AS DEFINED BELOW), AT $0.0001 PER RIGHT, AND EXCHANGE, IN EACH CASE PURSUANT TO THE TERMS SET FORTH
IN THE RIGHTS AGREEMENT (AS DEFINED BELOW). UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN
AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF
SUCH RIGHTS MAY BECOME NULL AND VOID. THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON
WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON. ACCORDINGLY, THIS RIGHTS CERTIFICATE
AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS AGREEMENT.

 

RIGHTS CERTIFICATE

 

KBS FASHION
GROUP LIMITED

 

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 March 11, 2021 (the
“Rights Agreement”), between KBS Fashion Group Limited, a Republic of Marshall Islands corporation (the
“Company”), and American Stock Transfer & Trust Company, LLC a New York limited liability trust
company (the “Rights Agent,” which term shall include any successor Rights Agent pursuant to the Rights
Agreement), to purchase from the Company at any time after the Distribution Date (as such term is defined in the Rights
Agreement) and prior to the Expiration Date (as such term is defined in the Rights Agreement) at the office of the Rights
Agent designated for such purpose, or at the office of its successor as Rights Agent, 0.00667 of a fully paid and
nonassessable share of Series B Participating Preferred Stock, par value $0.0001 per share (the “Preferred
Stock”), of the Company, at an exercise price of $50.00 per 0.00667 portion of a share of Preferred Stock (the
“Exercise Price”), upon presentation and surrender of this Rights Certificate with the Form of Election to
Purchase and related Certificate duly executed. The number of Rights evidenced by this Rights Certificate (and the number of
0.00667 portions of a share of Preferred Stock that may be purchased upon exercise hereof) set forth above, and the
Exercise Price per share set forth above, are the number and Exercise Price as of March 11, 2021 based on the Preferred Stock
as constituted at such date. As provided in the Rights Agreement, the Exercise Price and the number and kind of Preferred
Stock or other securities that may be purchased upon the exercise of the Rights evidenced by this Rights Certificate are
subject to modification and adjustment upon the occurrence of certain events. The Company reserves the right to require prior
to the occurrence of a Triggering Event (as such term is defined in the Rights Agreement) that a number of Rights be
exercised so that only whole shares of Preferred Stock will be issued. Capitalized terms used in this Rights Certificate
without definition shall have the meanings ascribed to them in the Rights Agreement.

 

    B-1

     

    

 

Upon
the occurrence of a Section 11(a)(ii) Event, if the Rights evidenced by this Rights Certificate are beneficially owned by
an Acquiring Person, an Affiliate or Associate of an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee,
a Subsequent Transferee or any nominee of any of the foregoing, such Rights shall become null and void and no holder hereof shall
have any right with respect to such Rights from and after the occurrence of such Section 11(a)(ii) Event.

 

This
Rights 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 Rights Certificates, which limitations of rights include the temporary suspension of the exercisability
of such Rights under the specific circumstances set forth in the Rights Agreement. Copies of the Rights Agreement are on file at
the principal executive offices of the Company and the above-mentioned office of the Rights Agent and are available without cost
upon written request.

 

Subject
to the provisions of the Rights Agreement, the Rights evidenced by this Rights Certificate may be redeemed by the Company, at its
option, at a redemption price of $0.0001 per Right at any time prior to the earlier of (i) the Distribution Date or (ii) the
Close of Business on the Final Expiration Date. In addition, under certain circumstances after any Person becomes an Acquiring
Person, the Rights may be exchanged, in whole or in part, for Common Stock, or cash other securities of the Company having essentially
the same value or economic rights as such shares. Immediately upon the action of the Board authorizing any such exchange, and without
any further action or any notice, the Rights (other than Rights that are not subject to such exchange) will terminate and the Rights
will only enable holders to receive the Common Stock (or cash or other securities or assets of the Company) issuable upon such
exchange.

 

This
Rights Certificate, with or without other Rights Certificates, upon surrender at the office of the Rights Agent designated for
such purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing Rights entitling
the holder to purchase a like number of 0.00667 portions of a share of Preferred Stock as the Rights evidenced by the Rights
Certificate or Rights Certificates surrendered shall have entitled such holder to purchase. If this Rights Certificate is exercised
in part, then the holder will be entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for
the number of whole Rights not exercised.

 

    B-2

     

    

 

No
fractions of shares of Preferred Stock (other than fractions that are integral multiples of 0.00667 of a share of Preferred
Stock, which may, at the election of the Company, be evidenced by depositary receipts) will be issued upon the exercise of any
Right or Rights evidenced hereby. In lieu thereof, a cash payment will be made as provided in the Rights Agreement. The Company,
at its election, may require that a number of Rights be exercised so that only whole shares of Preferred Stock would be issued.

 

No
holder of this Rights Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder
of the number of 0.00667 portions of a share of Preferred Stock or any other securities of the Company that may at any time
be issuable on the exercise or exchange hereof, nor shall anything contained in herein or in the Rights Agreement 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 specifically provided in the Rights
Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Rights Certificate
shall have been exercised or exchange in accordance with the Rights Agreement.

 

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

 

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

 

Dated as of                     ,
2021.

 

	ATTEST:	 	KBS FASHION GROUP LIMITED
	 	 	 	 	 
	By:	
	 	By:	

	 	Name:	 	 	Name:
	 	Title:	 	 	Title:

 

Countersigned:

 

AMERICAN STOCK TRANSFER &
TRUST COMPANY, LLC,

as Rights Agent

 

	By:	
	 
	 	Name:	 
	 	Title:	 

 

    B-3

     

    

 

[Form of Reverse
Side of Rights Certificate]

 

FORM OF ASSIGNMENT

 

(To be executed
by the registered holder if such

holder desires
to transfer the Rights Certificate.)

 

FOR VALUE RECEIVED                                       
                                         
                 hereby sells, assigns
and transfers unto

 

(Please print name
and address of transferee)

 

this Rights Certificate, together with
all right, title and interest therein, and does hereby irrevocably constitute and appoint                              as attorney-in-fact to
transfer the within Rights Certificate on the books of the Company, with full power of substitution.

 

Dated:                     .

 

	 	 
	 	

        Signature

 

Signature Medallion Guaranteed:

 

Signatures must
be guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion
program at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934,
as amended. All guarantees must be by a financial institution (such as a bank or broker) that is a participant in the Securities
Transfer Agents Medallion Program (STAMP), the Nasdaq Medallion Signature Program (MSP) or the Stock Exchanges Medallion Program
(SEMP) and must not be dated. Guarantees by a notary public are not acceptable.

 

    B-4

     

    

 

CERTIFICATE

 

The undersigned
hereby certifies, for the benefit of the Company and all holders of Rights and Common Stock, by checking the appropriate boxes
that:

 

		(1)	the
Right(s) evidenced by this Rights Certificate are not Beneficially Owned and

 

		☐	are

 

		☐	are not

 

being sold, assigned
and transferred by or on behalf of a Person who is or was an Acquiring Person, an Affiliate or Associate of an Acquiring
Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the
foregoing; and

 

		(2)	after
due inquiry and to the best knowledge of the undersigned, it

 

		☐	did

 

		☐	did not

 

acquire the Rights evidenced
by this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person, an Affiliate or Associate of
an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of
the foregoing.

 

Dated:                     .

 

	 	 
	 	

        Signature

 

Signature Medallion Guaranteed:

 

Signatures must
be guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion
program at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934,
as amended. All guarantees must be by a financial institution (such as a bank or broker) that is a participant in the Securities
Transfer Agents Medallion Program (STAMP), the Nasdaq Medallion Signature Program (MSP) or the Stock Exchanges Medallion Program
(SEMP) and must not be dated. Guarantees by a notary public are not acceptable.

 

    B-5

     

    

 

[Form of Reverse
Side of Rights Certificate – continued]

 

FORM OF ELECTION
TO PURCHASE

 

(To be executed
if holder desires to exercise

Rights represented
by the Rights Certificate.)

 

To: KBS Fashion Group Limited. (the
“Company”)

 

The undersigned
hereby irrevocably elects to exercise                              Rights
represented by this Rights Certificate to purchase the number of 0.00667 portions of a share of Preferred Stock (or such other
securities of the Company or of any other Person that may be issuable upon the exercise of the Rights) issuable upon the exercise
of such Rights and requests that certificates for such shares be issued in the name of and delivered to:

 

Please insert social security or other
identifying number:                                          
                                         
                                      

 

 

 

(Please print name
and address)

 

If such number of Rights shall not
be all of the Rights evidenced by this Rights Certificate, a new Rights 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 Medallion Guaranteed:

 

Signatures must
be guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion
program at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934,
as amended. All guarantees must be by a financial institution (such as a bank or broker) that is a participant in the Securities
Transfer Agents Medallion Program (STAMP), the Nasdaq Medallion Signature Program (MSP) or the Stock Exchanges Medallion Program
(SEMP) and must not be dated. Guarantees by a notary public are not acceptable.

 

    B-6

     

    

 

CERTIFICATE

 

The undersigned
hereby certifies, for the benefit of the Company and all holders of Rights and Common Stock, by checking the appropriate boxes
that:

 

	 	(1)	the Right(s) evidenced by this Rights Certificate are not Beneficially Owned and

 

		☐	are

 

		☐	are not

 

being sold, assigned
and transferred by or on behalf of a Person who is or was an Acquiring Person, an Affiliate or Associate of an Acquiring
Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any nominee of any of the
foregoing; and

 

	 	(2)	after due inquiry and to the best knowledge of the undersigned, it

 

		☐	did

 

		☐	did not

 

acquire the Rights
evidenced by this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person, an Affiliate or
Associate of an Acquiring Person, a Post-Event Transferee, a Pre-Event Transferee, a Subsequent Transferee or any
nominee of any of the foregoing.

 

Dated:                         .

 

	 	 
	 	

        Signature

 

Signature Medallion Guaranteed:

 

Signatures must
be guaranteed by an “Eligible Guarantor Institution” (with membership in an approved signature guarantee medallion
program at a level acceptable to the Rights Agent) pursuant to Rule 17Ad-15 of the Securities Exchange Act of 1934,
as amended. All guarantees must be by a financial institution (such as a bank or broker) that is a participant in the Securities
Transfer Agents Medallion Program (STAMP), the Nasdaq Medallion Signature Program (MSP) or the Stock Exchanges Medallion Program
(SEMP) and must not be dated. Guarantees by a notary public are not acceptable.

 

    B-7

     

    

 

[Form of Reverse
Side of Rights Certificate – continued]

 

NOTICE

 

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

 

IN
THE EVENT THAT THE CERTIFICATIONS SET FORTH IN THE FOREGOING FORMS OF ASSIGNMENT AND ELECTION TO PURCHASE, AS THE CASE MAY
BE, ARE NOT COMPLETED, THEN THE COMPANY AND THE RIGHTS AGENT WILL DEEM THE BENEFICIAL OWNER OF THE RIGHTS EVIDENCED BY THIS
RIGHT CERTIFICATE TO BE AN ACQUIRING PERSON, AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON, A POST-EVENT TRANSFEREE,
A PRE-EVENT TRANSFEREE, A SUBSEQUENT TRANSFEREE OR ANY NOMINEE OF ANY OF THE FOREGOING, AS THE CASE MAY BE, AND
SUCH ASSIGNMENT OR ELECTION TO PURCHASE WILL NOT BE HONORED AND THE RIGHTS EVIDENCED BY THIS RIGHTS CERTIFICATE WILL BE
DEEMED TO BE NULL AND VOID.

 

    B-8

     

    

 

EXHIBIT C

 

FORM OF

SUMMARY OF RIGHTS

 

SUMMARY OF

PREFERRED STOCK
RIGHTS AGREEMENT

OF

KBS FASHION
GROUP LIMITED

 

Effective
March 11, 2021, the Board of Directors (the “Board”) of KBS Fashion Group Limited (the “Company”)
authorized and declared a dividend distribution of one right (a “Right”) for each outstanding share of common
stock, par value $0.0001 per share (the “Common Stock”), of the Company to stockholders of record as of the
close of business on March 31, 2021 (the “Record Date”). Each Right entitles the registered holder to purchase
from the Company 0.00667 of a share of Series B Participating Preferred Stock, par value $0.0001 per share (the “Preferred
Stock”), of the Company at an exercise price of $50.00 (the “Exercise Price”), subject to adjustment.
The complete terms of the Rights are set forth in a Preferred Stock Rights Agreement (the “Rights Agreement”),
dated as of March 11, 2021, between the Company and American Stock Transfer & Trust Company, LLC, as rights agent.

 

The
Board adopted the 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 15 percent or more of the shares of Common
Stock without the approval of the Board. As a result, the overall effect of the Rights Agreement and the issuance of the Rights
may be to render more difficult or discourage a merger, tender or exchange offer or other business combination involving the Company
that is not approved by the Board. However, neither the Rights Agreement nor the Rights should interfere with any merger, tender
or exchange offer or other business combination approved by the Board.

 

For
those interested in the specific terms of the Rights Agreement, the following is a summary description. Please note, however, that
this description is only a summary and is not complete, and should be read together with the entire Rights Agreement, which has
been filed by the Company with the United States Securities and Exchange Commission as an exhibit to a Registration Statement on
Form 8-A and a Current Report on Form 6-K. A copy of the Rights Agreement is available free of charge from
the Company.

 

The Board has
declared a dividend of one Right for each outstanding share of Common Stock. Prior to the Distribution Date referred to below:

 

	Distribution and Transfer of Rights; Rights Certificates:	 	●     the Rights will be evidenced by and trade with the certificates for the Common Stock (or, with respect to any uncertificated Common Stock registered in book entry form, by notation in book entry), and no separate rights certificates will be distributed;

                                     

                                    ●     new Common Stock certificates issued after the Record Date will contain a legend incorporating the Rights Agreement by reference (for uncertificated Common Stock registered in book entry form, this legend will be contained in a notation in book entry); and

	 	 	 
	 	 	
        ●     the
        surrender for transfer of any certificates for Common Stock (or the surrender for transfer of any uncertificated Common Stock registered
        in book entry form) will also constitute the transfer of the Rights associated with such Common Stock.

         

        Rights will accompany any new shares of
        Common Stock that are issued after the Record Date.

 

    C-1

     

    

 

	Distribution Date:	 	
        Subject to certain exceptions specified
        in the Rights Agreement, the Rights will separate from the Common Stock and become exercisable following (1) the 10th business
        day (or such later date as may be determined by the Board) after the public announcement that a person or group of affiliated or
        associated persons (such person or group, an “Acquiring Person”) has acquired beneficial ownership of 15 percent
        or more of the Common Stock or (2) the 10th business day (or such later date as may be determined by the Board) after a person
        or group announces a tender or exchange offer that would result in ownership by a person or group of 15 percent or more of
        the Common Stock. For purposes of the Rights Agreement, beneficial ownership is defined to include the ownership of derivative
        securities. Coordinated or parallel actions by persons or groups may implicate the Rights Agreement.

         

        The date on which the Rights separate from
        the Common Stock and become exercisable is referred to as the “Distribution Date.”

         

        After the Distribution Date, the Company
        will mail Rights certificates to the Company’s stockholders as of the close of business on the Distribution Date and the
        Rights will become transferable apart from the Common Stock. Thereafter, such Rights certificates alone will represent the Rights.

	 	 
	Preferred Stock Purchasable Upon Exercise of Rights:	 	After the Distribution Date, each Right will entitle the holder to purchase, for the Exercise Price, 0.00667 of a share of Preferred Stock having economic and other terms similar to that of one share of Common Stock. This portion of a share of Preferred Stock is intended to give the stockholder approximately the same dividend, voting and liquidation rights as would one share of Common Stock, and should approximate the value of one share of Common Stock.
	 	 	 
	 	 	
        More specifically, each
0.00667 of a share of Preferred Stock, if issued, will:

         

        ●     not
        be redeemable;

         

        ●     entitle
        holders to quarterly dividend payments, if and when declared by the Board of Directors, of $0.00667 per 0.00667 of a
        share, or an amount per-share equal to the dividend paid on one share of Common Stock, whichever is greater;

         

        ●     entitle
        holders upon liquidation to receive $0.00667 per $0.00667 of a share;

         

        ●     have
        the same voting power as one share of Common Stock; and

         

        ●     entitle
        holders to a payment per 0.00667 of a share equal to the payment made on one share of Common Stock if the Common Stock is
        exchanged via merger, consolidation or a similar transaction.

 

    C-2

     

    

 

	Flip-In Trigger:	 	
        If an Acquiring Person obtains beneficial
        ownership of 15 percent or more of the Common Stock, then each Right will entitle the holder thereof to purchase,
        for the Exercise Price, a number of shares of Common Stock (or, in certain circumstances, cash, property or other securities of
        the Company) having a then-current market value of twice the Exercise Price. However, the Rights are not exercisable following
        the occurrence of the foregoing event until such time as the Rights are no longer redeemable by the Company, as further described
        below.

         

        Following the occurrence of an event set
        forth in preceding paragraph, all Rights that are or, under certain circumstances specified in the Rights Agreement, were beneficially
        owned by an Acquiring Person or certain of its transferees will be void.

	 	 
	Flip-Over Trigger:	 	If, after an Acquiring Person obtains 15 percent or more of the Common Stock, (1) the Company merges into another entity, (2) an acquiring entity merges into the Company or (3) the Company sells or transfers more than 50 percent of its assets, cash flow or earning power, then each Right (except for Rights that have previously been voided as set forth above) will entitle the holder thereof to purchase, for the Exercise Price, a number of shares of common stock of the person engaging in the transaction having a then-current market value of twice the Exercise Price.
	 	 	 
	Redemption of the Rights:	 	The Rights will be redeemable at the Company’s option for $0.0001 per Right (payable in cash, Common Stock or other consideration deemed appropriate by the Board) at any time on or prior to the 10th business day (or such later date as may be determined by the Board) after the public announcement that an Acquiring Person has acquired beneficial ownership of 15 percent or more of the Common Stock. Immediately upon the action of the Board ordering redemption, the Rights will terminate and the only right of the holders of the Rights will be to receive the $0.0001 redemption price. The redemption price will be adjusted if the Company undertakes a stock dividend or a stock split.
	 	 	 
	Exchange Provision:	 	At any time after the date on which an Acquiring Person beneficially owns 15 percent or more of the Common Stock and prior to the acquisition by the Acquiring Person of 50 percent of the Common Stock, the Board may exchange the Rights (except for Rights that have previously been voided as set forth above), in whole or in part, for Common Stock at an exchange ratio of one share of Common Stock per Right (subject to adjustment). In certain circumstances, the Company may elect to exchange the Rights for cash or other securities of the Company having a value approximately equal to one share of Common Stock.

 

    C-3

     

    

 

	Expiration of the Rights:	 	The Rights expire on the earliest of (1) 5:00 p.m., New York City time, on March 11, 2031 (unless such date is extended) or (2) the redemption or exchange of the Rights as described above.
	 	 
	Amendment of Terms of the Rights Agreement and Rights:	 	The terms of the Rights and the Rights Agreement may be amended in any respect without the consent of the holders of the Rights on or prior to the Distribution Date. Thereafter, the terms of the Rights and the Rights Agreement may be amended without the consent of the holders of Rights in order to (1) cure any ambiguities, (2) shorten or lengthen any time period pursuant to the Rights Agreement or (3) make changes that do not adversely affect the interests of holders of the Rights.
	 	 
	Voting Rights; Other Stockholder Rights:	 	The Rights will not have any voting rights. Until a Right is exercised, the holder thereof, as such, will have no separate rights as stockholder of the Company.
	 	 
	
         

         

        Anti-Dilution Provisions:
	 	
        The Board may adjust the Exercise Price,
        the number of shares of Preferred Stock issuable and the number of outstanding Rights to prevent dilution that may occur from a
        stock dividend, a stock split or a reclassification of the Preferred Stock or Common Stock.

         

        With certain exceptions, no adjustments
        to the Exercise Price will be made until the cumulative adjustments amount to at least one percent of the Exercise Price. No fractional
        shares of Preferred Stock will be issued and, in lieu thereof, an adjustment in cash will be made based on the current market price
        of the Preferred Stock.

	 	 
	Taxes:	 	The distribution of Rights should not be taxable for federal income tax purposes. However, following an event that renders the Rights exercisable or upon redemption of the Rights, stockholders may recognize taxable income.

 

 

C-4Exhibit 4.4

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES 

REGISTERED
PURSUANT TO SECTION 12 OF THE 

SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED

 

References herein to “we,” “us,”
 “our” and the “Company” refer to Aziyo Biologics, Inc. and not to any of its subsidiaries.

 

Authorized Capital Stock

 

The following description of our restated certificate of incorporation
(the “Certificate of Incorporation”), and amended and restated bylaws (the “Bylaws”) are summaries and
are qualified in their entirety by reference to the full text of our Certificate of Incorporation and our Bylaws, each of which
have been publicly filed with the Securities and Exchange Commission (the “SEC”). We encourage you to read the full
text of our Certificate of Incorporation and our Bylaws and the applicable provisions of the Delaware General Corporation Law (the
 “DGCL”) for additional information.

 

Our authorized capital stock consists of 200,000,000 shares
of Class A common stock, par value $0.001 per share, 20,000,000 shares of Class B common stock, par value $0.001 per
share, and 10,000,000 shares of preferred stock, par value $0.001 per share, all of which are undesignated.

 

Class A Common Stock and Class B Common Stock

 

Holders of our Class A common stock are entitled to one
vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. An election
of directors by our stockholders shall be determined by a plurality of the votes cast. Subject to the supermajority votes for some
matters, all other elections and questions presented to the stockholders shall be decided by the affirmative vote of the holders
of a majority in voting power of the votes cast affirmatively or negatively (excluding abstentions) at the meeting by the holders
entitled to vote thereon. Our Certificate of Incorporation and Bylaws also provide that our board of directors or any individual
director may be removed only for cause and only by the affirmative vote of the holders of at least two-thirds in voting power of
the outstanding shares of capital stock entitled to vote thereon. In addition, the affirmative vote of the holders of at least
two-thirds in voting power of the outstanding shares of capital stock entitled to vote thereon is required to amend or repeal,
or to adopt any provision inconsistent with, several of the provisions of our Certificate of Incorporation. See below under “—
Anti-Takeover Effects of Delaware Law and Our Certificate of Incorporation and Bylaws — Amendment of Charter
Provisions.”

 

Holders of our Class B common stock have identical rights
to holders of our Class A common stock as set forth in the preceding paragraph, other than as follows: (i) except as
otherwise expressly provided in our Certificate of Incorporation or as required by applicable law, on any matter that is submitted
to a vote by our stockholders, while holders of our Class A common stock are entitled to one vote per share of Class A
common stock, holders of our Class B common stock are not entitled to any votes per share of Class B common stock, including
for the election of directors, and (ii) while holders of our Class A common stock have no conversion rights, holders
of our Class B common stock shall have the right to convert each share of our Class B common stock into one share of
Class A common stock at such holder’s election, provided that as a result of such conversion, such holder would not
beneficially own in excess of 4.9% of any class of our securities registered under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). Accordingly, the holders of a majority of the outstanding shares of Class A common stock
entitled to vote in any election of directors can elect all of the directors standing for election, if they so choose, other than
any directors that holders of any preferred stock we may issue may be entitled to elect.

 

Holders of our common stock are entitled to receive proportionately
any dividends as may be declared by our board of directors, subject to any preferential dividend rights of any series of preferred
stock that we may designate and issue in the future, and to the requirements of law.

 

In the event of our liquidation or dissolution, the holders
of our common stock are entitled to receive proportionately our net assets available for distribution to stockholders after the
payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. Holders of our common
stock have no preemptive, subscription, redemption or conversion rights. Our outstanding shares of common stock are validly issued,
fully paid and nonassessable. The rights, preferences and privileges of holders of Class A common stock are subject to and
may be adversely affected by the rights of the holders of shares of any series of preferred stock that we may designate and issue
in the future.

 

     

     

    

 

Preferred Stock

 

Under the terms of our Certificate of Incorporation, our board
of directors is authorized to direct us to issue shares of preferred stock in one or more series without stockholder approval.
Our board of directors has the discretion to determine the rights, preferences, privileges and restrictions, including voting rights,
dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock.

 

The issuance of preferred stock, while providing flexibility
in connection with possible acquisitions, future financings and other corporate purposes, could have the effect of making it more
difficult for a third party to acquire, or could discourage a third party from seeking to acquire, a majority of our outstanding
voting stock.

 

Anti-Takeover Effects of Delaware Law and Our Certificate
of Incorporation and Bylaws

 

Some provisions of Delaware law, our Certificate of Incorporation
and our Bylaws could make the following transactions more difficult: an acquisition of us by means of a tender offer; an acquisition
of us by means of a proxy contest or otherwise; or the removal of our incumbent officers and directors. It is possible that these
provisions could make it more difficult to accomplish or could deter transactions that stockholders may otherwise consider to be
in their best interest or in our best interests, including transactions which provide for payment of a premium over the market
price for our shares.

 

Undesignated Preferred Stock

 

The ability of our board of directors, without action by the
stockholders, to issue up to 10,000,000 shares of undesignated preferred stock with voting or other rights or preferences as designated
by our board of directors could impede the success of any attempt to change control of us. These and other provisions may have
the effect of deferring hostile takeovers or delaying changes in control or management of the Company.

 

Stockholder Meetings

 

Our Bylaws provide that a special meeting of stockholders may
be called only by our board of directors, chairperson of the board, chief executive officer or president (in the absence of a chief
executive officer).

 

Requirements for Advance Notification of Stockholder Nominations
and Proposals

 

Our Bylaws establish advance notice procedures with respect
to stockholder proposals to be brought before a stockholder meeting and the nomination of candidates for election as directors,
other than nominations made by or at the direction of the board of directors or a committee of the board of directors.

 

Elimination of Stockholder Action by Written Consent

 

Our Certificate of Incorporation eliminates the right of stockholders
to act by written consent without a meeting.

 

Staggered Board

 

In
accordance with our Certificate of Incorporation, and subject to the rights of holders of any series of preferred stock to elect
directors, our board of directors is divided into three classes. Each class shall consist, as nearly as may be possible, of one-third
of the total number of directors constituting the entire board of directors. The directors in each class will serve for a three-year
term, with one class being elected each year by our stockholders. Our Certificate of Incorporation and Bylaws provide that
the authorized number of directors may be changed only by resolution of the board of directors. This system of electing and removing
directors may delay or prevent a change of management or a change in control of our company and tend to discourage a third party
from making a tender offer or otherwise attempting to obtain control of us, because it generally makes it more difficult for stockholders
to replace a majority of the directors.

 

Removal of Directors

 

Our Certificate of Incorporation provides that no member of
our board of directors may be removed from office by our stockholders except for cause and, in addition to any other vote required
by law, upon the approval of the holders of at least two-thirds in voting power of the outstanding shares of stock entitled to
vote in the election of directors.

 

     

     

    

 

Stockholders Not Entitled to Cumulative Voting

 

Our Certificate of Incorporation does not permit stockholders
to cumulate their votes in the election of directors. Accordingly, a plurality of the votes cast by holders of shares of our Class A
common stock shall be sufficient to elect all of the directors standing for election, if they choose, other than any directors
that holders of our preferred stock may be entitled to elect.

 

Delaware Anti-Takeover Statute

 

We are subject to Section 203 of the DGCL, which prohibits
persons deemed to be “interested stockholders” from engaging in a “business combination” with a publicly
held Delaware corporation for three years following the date these persons become interested stockholders unless the business
combination is, or the transaction in which the person became an interested stockholder was, approved in a prescribed manner or
another prescribed exception applies. Generally, an “interested stockholder” is a person who, together with affiliates
and associates, owns, or within three years prior to the determination of interested stockholder status did own, 15% or more
of a corporation’s voting stock. Generally, a “business combination” includes a merger, asset or stock sale,
or other transaction resulting in a financial benefit to the interested stockholder. The existence of this provision may have an
anti-takeover effect with respect to transactions not approved in advance by the board of directors.

 

Choice of Forum

 

Our Certificate of Incorporation provides that, unless we consent
in writing to the selection of an alternative form, the Court of Chancery of the State of Delaware is the sole and exclusive forum
for: (1) any derivative action or proceeding brought on our behalf; (2) any action asserting a claim of breach of a fiduciary
duty owed by any of our directors, officers, employees or stockholders; (3) any action asserting a claim against us arising
pursuant to any provision of the DGCL or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware;
or (4) any action asserting a claim governed by the internal affairs doctrine. Under our Certificate of Incorporation, this
exclusive forum provision does not apply to suits brought to enforce any liability or duty created by the Securities Act of 1933,
as amended (the “Securities Act”), or the Exchange Act, or any other claim for which the federal courts have exclusive
jurisdiction. If and only if the Court of Chancery of the State of Delaware dismisses any such action for lack of subject matter
jurisdiction, such action may be brought in another state or federal court sitting in the State of Delaware. Our Certificate of Incorporation
further provides that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the
United States of America shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any
complaint asserting a cause of action arising under the Securities Act. Our Certificate of Incorporation also provides that any
person or entity purchasing or otherwise acquiring or holding any interest in shares of our capital stock shall be deemed to have
notice of and to have consented to this choice of forum provision. It is possible that a court of law could rule that the
choice of forum provision contained in our Certificate of Incorporation is inapplicable or unenforceable if it is challenged in
a proceeding or otherwise.

 

Amendment of Charter Provisions

 

The amendment of any of the above provisions, except for the
provision making it possible for our board of directors to issue preferred stock and the provision prohibiting cumulative voting,
would require approval by holders of at least two-thirds in voting power of the outstanding shares of stock entitled to vote thereon.

 

The provisions of Delaware law, our Certificate of Incorporation
and our Bylaws could have the effect of discouraging others from attempting hostile takeovers and, as a consequence, they may also
inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile takeover
attempts. These provisions may also have the effect of preventing changes in the composition of our board and management. It is
possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to
be in their best interests.

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