Document:

Document

Exhibit 10.2

GUARANTY OF ANGEL OAK MORTGAGE, INC.
GUARANTY, dated as of April 13, 2022 (as amended, this “Guaranty”), made by Angel Oak Mortgage, Inc., a Maryland corporation, (“Guarantor”), in favor of Royal Bank of Canada (“Buyer”).
RECITALS
Whereas, ANGEL OAK MORTGAGE OPERATING PARTNERSHIP, LP (“Angel Oak Partnership”) and ANGEL OAK MORTGAGE FUND TRS (“Angel Oak TRS” and together with Angel Oak Partnership, the “Sellers” and each, a “Seller”) and Buyer have entered into a Master Repurchase Agreement (as amended, restated, supplemented or otherwise modified from time to time), dated as of April 13, 2022 (the “Agreement”).
Whereas, the Angel Oak TRS is a fully owned subsidiary of Angel Oak Partnership and the Guarantor has a 99% limited partner interest in Angel Oak Partnership, and the Guarantor will be receiving a direct or indirect benefit from the Sellers entering into the Agreement.
Whereas, it is a condition precedent to the effectiveness of the Agreement that Guarantor shall have executed and delivered this Guaranty for the benefit of Buyer.
NOW, THEREFORE, in consideration of the foregoing premises, to induce Buyer to enter into the Agreement and to enter into transactions thereunder, Guarantor hereby agrees with Buyer, as follows:
1.Defined Terms.  
a.“Obligations” shall mean all obligations under the Agreement, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under the Agreement and all fees and expenses, including, without limit, reasonable legal fees.
b.Unless otherwise defined herein, terms which are defined in the Agreement and used herein are so used as so defined.
2.Guaranty Absolute and Unconditional.
a.Guarantor hereby guarantees to Buyer the payment in full when due by each Seller (whether at the stated maturity, by acceleration or otherwise) of the Obligations after giving effect to any applicable notice or grace period.
b.The Guarantor agrees to promptly pay all reasonable out-of-pocket expenses (including the reasonable fees and expenses of counsel) incurred in the enforcement or protection of the rights of Buyer or in the collection of payments hereunder in connection with a failure by any Seller to pay the Obligations or, to the extent incurred after demand under the Guaranty has been made and not timely honored, in connection with a breach of this Guaranty by the Guarantor.
c.Guarantor hereby agrees that its obligations hereunder shall be absolute, continuing and unconditional, irrespective of (i) the validity, regularity or enforceability of the Agreement (other than as a result of the termination of this Agreement upon payment in full of the Obligations and a written 

notice of termination has been delivered by the Buyer, which written notice shall be promptly delivered by Buyer upon such payment in full, including by means of set-off to the extent set-off is permitted under the Agreement), (ii) the absence of any action to enforce the same, any waiver or consent by Buyer concerning any provisions thereof, (iii) the rendering of any judgment against any Seller or any action to enforce the same, (iv) the existence, validity, enforceability, perfection or extent of any collateral therefore or any release of such collateral, (v) any change in the time, manner or place of payment of, or in any other term of, the Agreement or any transaction or confirmation thereunder, any other amendment or waiver of, or any consent to departure from, any of the terms of the Agreement or any transaction or confirmation thereunder, including any increase or decrease in any amount payable thereunder or the rate at which any interest or amount shall accrue thereunder, (vi) any release or amendment or waiver of, or consent to departure from, any other guaranty or support document, or (vii) any other circumstance that might otherwise constitute a legal or equitable discharge of a guarantor or a defense of a guarantor (other than the defense of the statute of limitations or as a result of the termination of this Agreement and payment in full of the Obligations, including by means of set-off to the extent set-off is permitted under the Agreement). For the avoidance of doubt, the parties agree that (i) any amendment or waiver with respect to the Agreement that affects the Obligations under this Guaranty shall modify the Obligations under this guaranty accordingly, and (ii) the Obligations under this Guaranty may be satisfied by means of set-off to the extent set-off is permitted under the Agreement, and that the Guarantor may also exercise any right that any Seller may exercise under the Agreement to cure any default in respect of its obligations under the Agreement and may interpose any defense which any Seller is or would have been entitled to interpose (other than any defense arising by reason of any disability, lack of capacity, bankruptcy or insolvency of any Seller or as otherwise provided for herein); provided, however, that the Guarantor’s obligations hereunder may not be reduced by set-off against any other amounts as may payable by the Buyer to the Guarantor arising under other contracts or obligations existing between the Guarantor and the Buyer (if any).
d.In case of the failure of any Seller to punctually pay the Obligations, the Guarantor hereby agrees upon written demand by the Buyer to cause any such payment to be made pursuant to the terms of this Guaranty. When making any demand hereunder against Guarantor, or pursuing its rights and remedies hereunder against Guarantor, Buyer may, but shall be under no obligation to, pursue such rights and remedies as it may have against an Seller or any other person or against any collateral security or guaranty for the Obligations or any right of offset with respect thereto, and any failure to pursue such other rights or remedies or to collect any payments from an Seller or any such other person or to realize upon any such collateral security or guaranty or to exercise any such right of offset, shall not relieve Guarantor of any liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of Buyer against Guarantor.
e.This Guaranty, which is a guaranty of payment and not of collection only, shall remain in full force and effect until thirty days after the date Buyer terminates this Guaranty upon written notice. It is understood and agreed, 
2

however, that notwithstanding any such termination this Guaranty shall continue in full force and effect with respect to all Obligations arising prior to such termination, including for greater certainty, Obligations arising from transactions entered into prior to the termination of this Guaranty. Guarantor further agrees that this Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored or returned due to bankruptcy or insolvency laws or otherwise. This Guaranty shall continue to be effective if any Seller changes its name, merges or consolidates with or into another entity, loses its separate legal entity or ceases to exist.
f.This Guaranty shall inure to the benefit of Buyer, and its successors, endorsees, transferees and assigns until all the Obligations and the obligations of Guarantor under this Guaranty shall have been discharged, terminated or satisfied by payment in full, notwithstanding that, from time to time, an Seller may be free from any Obligations.
g.Guarantor waives acceptance of this Guaranty, diligence, set-off promptness, presentment, protest, notice of protest, acceleration and dishonor, filing of claims with a court in the event of insolvency or bankruptcy of any Seller, and all notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by Buyer upon this Guaranty.
3.Subrogation. Guarantor agrees to waive any rights which it may acquire by subrogation, by any payment made under this Guaranty or otherwise, until all the Obligations have been paid in full and this Guaranty is terminated. If any amount is paid to Guarantor on account of subrogation rights under this Guaranty at any time when not all of the Obligations have been paid in full, the amount shall be held in trust for the benefit of Buyer and shall be promptly paid to the Buyer to be credited and applied to the Obligations, whether matured or unmatured or absolute or contingent. Subject to the foregoing, upon payment of all such due and unpaid Obligations, the Guarantor shall be subrogated to the rights of the Buyer against any Seller with respect to such Obligations, and the Buyer agrees to take at the Guarantor’s expense such steps as the Guarantor may reasonably request to implement such subrogation.
4.Representations and Warranties. Guarantor represents and warrants (which representations and warranties shall be deemed to have been made by Guarantor as of the Purchase Date and as of any Transaction under the Agreement) that:
a.Guarantor has the legal capacity and the legal right to execute and deliver this Guaranty and to perform Guarantor’s obligations hereunder;
b.no consent or authorization of, filing with, or other act by or in respect of, any arbitrator or governmental authority and no consent of any other person (including, without limitation, any creditor of Guarantor) is required in connection with the execution, delivery, performance, validity or enforceability of this Guaranty;
c.this Guaranty has been duly executed and delivered by Guarantor and constitutes a legal, valid and binding obligation of Guarantor enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws; and
3

d.the execution, delivery and performance of this Guaranty will not violate any provision of the certificate of incorporation, by-laws or other organizational documents of Guarantor, or any law, treaty, rule or regulation or determination of an arbitrator, a court or other governmental authority, applicable to or binding upon Guarantor or any of its property or to which Guarantor or any of its property is subject.
5.Covenants. On and as of the date of this Guaranty and each Purchase Date and at all times until this Guaranty is no longer in force, Guarantor shall comply with the financial covenants in the Pricing Side Letter.
6.Intent. Guarantor intends and acknowledges that (a) this Guaranty is “a security agreement or arrangement or other credit enhancement” that is “related to” and provided “in connection with” the Agreement and each Transaction within the meaning of Sections 101(38A)(A), 101(47)(a)(v) and 741(7)(A)(xi) of the Bankruptcy Code and is, therefore, (i) a “securities contract” as that term is defined in Section 741 (7)(A)(xi) of the Bankruptcy Code, and (ii) a “master netting agreement” as that term is defined in Section 101 of the Bankruptcy Code, and (b) any party’s right to cause the termination, liquidation or acceleration of, or to offset net termination values, payment amounts or other transfer obligations arising under or in connection with the Agreement and this Guaranty is in each case a contractual right to cause the termination, liquidation or acceleration of, or to offset net termination values, payment amounts or other transfer obligations arising under or in connection with this Guaranty as described in Sections 555 and 561 of the Bankruptcy Code and (c) any payments or transfers of property made with respect to this Agreement to satisfy the obligations of Seller shall be considered a “margin payment” or “settlement payment” as such terms are defined in Bankruptcy Code Sections 741(5) and 741(8).  Guarantor hereby further agrees that it shall not challenge, and hereby waives to the fullest extent available under applicable law its right to challenge, the characterization of this Guaranty, the Agreement or any Transaction under the Agreement as a “securities contract” and/or “master netting agreement” within the meaning of the Bankruptcy Code.
7.Severability. Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
8.No Waiver; Cumulative Remedies. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege, and no waiver by Buyer of any right or remedy hereunder on any one occasion shall be construed as a bar to any right or remedy which Buyer would otherwise have on any future occasion. No failure to exercise, nor any delay in exercising, on the part of Buyer, any right, power or privilege hereunder shall operate as a waiver thereof. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.
9.Not Affected by Bankruptcy. The Guarantor hereby agrees that its obligations hereunder shall not be released, discharged or otherwise affected by any insolvency, bankruptcy, reorganization or other similar proceeding affecting any Seller or its assets.
10.Payments. Guarantor hereby guarantees that payments hereunder will be paid to Buyer without counterclaim in U.S. Dollars at the office of the Buyer specified in the Agreement.
4

11.Amendments in Writing. None of the terms or provisions of this Guaranty may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the Guarantor and Buyer, provided that any provision of this Guaranty may be waived by Buyer in a letter or agreement executed by Buyer.
12.Assignment. The Guarantor may not assign its rights, interests or obligations hereunder to any other person without the prior written consent of the Buyer (which consent shall not be unreasonably withheld or delayed) and any purported assignment absent such consent is void.
13.Successors and Assigns. This Guaranty shall extend to and enure to the benefit of the Buyer and its successors and assigns and every reference herein to Guarantor is a reference to and shall be construed as including the Guarantor, its successors to and upon all of whom this Guaranty and agreement shall extend and be binding.
14.Notices. All notices, requests and demands to or upon the Guarantor or Buyer shall be made in accordance with the Agreement.
15.Governing Law, Submission to Jurisdiction and Waivers of Jury Trial. THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CHOICE OF LAW DOCTRINE THEREOF BUT WITHOUT PREJUDICE TO SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK. ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY MAY BE BROUGHT IN THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. EACH OF GUARANTOR AND BUYER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTY OR ANY OTHER DOCUMENT AND FOR ANY COUNTERCLAIM HEREIN OR THEREIN.
5

IN WITNESS WHEREOF, the undersigned has caused this Guaranty to be duly executed and delivered as of the date first above written.
ANGEL OAK MORTGAGE, INC.

By: /s/ Brandon Filson
Name: Brandon Filson
Title: Chief Financial Officer
Address for Notices:
Angel Oak Mortgage Operating Partnership, LP
    3344 Peachtree Road NE, Suite 1725
    Atlanta, Georgia 30326
    Attn: Ashish Negandhi
    ashish.negandhi@angeloakcapital.com 

[Signature Page to Guaranty]Exhibit 4.12

 

DESCRIPTION
OF OUR SECURITIES

 

The
following description summarizes important terms of our capital stock and our other securities. For a complete description, you should
refer to our Certificate of Incorporation and bylaws, forms of which are incorporated by reference to the exhibits to the registration
statement of which this prospectus is a part, as well as the relevant portions of the Delaware General Corporation Law (“DGCL”).

 

Capital
Stock

 

The
Company has two classes of stock: common and preferred. The Company’s Certificate of Incorporation authorizes the issuance of up
to 150,000,000 shares of common stock, par value $0.01 per share, and 11,000,000 shares of preferred stock, par value $0.01 per share.

 

In
the discussion that follows, we have summarized selected provisions of our Certificate of Incorporation, amended and restated bylaws
(the “Bylaws”), and certificates of designation, and the DGCL relating to our capital stock. This summary is not complete.
This discussion is subject to the relevant provisions of Delaware law and is qualified in its entirety by reference to our Certificate
of Incorporation and our bylaws. You should read the provisions of our Certificate of Incorporation, our Bylaws, and our certificates
of designation as currently in effect for provisions that may be important to you. Please also see “Effect of Certain Provisions
of our Bylaws” below.

 

Common
Stock

 

Each
share of common stock has equal and identical rights to every other share for purposes of dividends, liquidation preferences, voting
rights and any other attributes of the Company’s common stock. No voting trusts or any other arrangement for preferential voting
exist among any of the stockholders, and there are no restrictions in the articles of incorporation, or bylaws precluding issuance of
further common stock or requiring any liquidation preferences, voting rights or dividend priorities with respect to this class of stock.

 

Effective
February 16, 2021 at 4:30 p.m. Eastern Time, the Company filed an Amended and Restated Certificate of Incorporation with the Secretary
of State of the State of Delaware to effect a reverse stock split of the common stock at a ratio of 15-for-1 (the “Reverse Split”).

 

There
were no fractional shares issued as a result of the Reverse Split. All fractional shares as a result of the Reverse Split were rounded
up to the nearest whole number. The total number of the Company’s authorized shares of common stock or preferred stock were not
affected by the foregoing. As a result, after giving effect to the Reverse Split, the Company remains authorized to issue a total of
150,000,000 shares of common stock.

 

Also
effective February 16, 2021, as a result of the listing of the common stock on Nasdaq, all outstanding shares of Series B Preferred Stock
of the Company were converted into 600,713 shares of common stock post-split.

 

As
of December 31, 2021, post-split, there were 9,881,995 shares of common stock issued and 9,879,586 shares of common stock outstanding.
A total of 3,369 shares of our common stock that are held by the Company in treasury are the result of the redemption of WOW Group membership
interests and indirectly, GGH’s shares. Each share of common stock entitles the holder thereof to one vote, either in person or
by proxy, at a meeting of stockholders. The holders are not entitled to vote their shares cumulatively. Accordingly, the holders of more
than 50% of the issued and outstanding shares of common stock can elect all of the directors of the Company.

 

All
shares of common stock are entitled to participate ratably in dividends when and as declared by the Company’s board of directors
out of the funds legally available. Any such dividends may be paid in cash, property or additional shares of common stock. The Company
has not paid any dividends on its shares of common stock since its inception and presently anticipates that no dividends on such shares
will be declared in the foreseeable future. Any future dividends will be subject to the discretion of the Company’s board of directors
and will depend upon, among other things, future earnings, the operating and financial condition of the Company, its capital requirements,
general business conditions and other pertinent facts. Therefore, there can be no assurance that any dividends on the common stock will
be paid in the future.

 

    	 

     

    

 

Holders
of common stock have no preemptive rights or other subscription rights, conversion rights, redemption or sinking fund provisions. In
the event of the dissolution, whether voluntary or involuntary of the Company, each share of common stock is entitled to share ratably
in any assets available for distribution to holders of the equity securities of the Company after satisfaction of all liabilities.

 

Preferred
Stock

 

As
of December 31, 2021, the Company has authorized 11,000,000 shares of preferred stock, with 10,097,330 shares designated as Series A
Convertible Preferred Stock, par value $0.01 per share (“Series A Preferred”), and 902,670 shares designated as Series B
Preferred Stock. The Board of Directors has the ability to issue blank check preferred stock under the Certificate of Incorporation.

 

As
of December 31, 2021, there were no shares issued and outstanding of Series A Preferred or Series B Preferred Stock. As of February 16,
2021, with the simultaneous uplist to Nasdaq of our common stock and 15:1 reverse split of our common stock by the Board (based on an
offering price per unit of $6.00), all shares of Series B Preferred Stock converted into 600,713 shares of our common stock.

 

Warrants

 

On
January 8, 2021, the Company issued an aggregate of 73,167 shares of common stock and one-year warrants to purchase 73,167 shares of
common stock at an exercise price of $6.00 per share to accredited investors with a substantive pre-existing relationship with the Company
for aggregate gross proceeds of $439,000. The warrants expire January 8, 2022.

 

On
January 8, 2021, the Company issued 237,012 shares of common stock and one-year warrants to purchase 237,012 shares of common stock upon
the exchange of $1,163,354 in principal and $258,714 in interest owed in connection with the 2017 Notes (see Note 10 of the financial
statements – Debt Obligations). The warrants expire January 8, 2022.

 

On
February 19, 2021, as of part of the public offering, the Company issued 1,533,333 common stock purchase warrants as part of the units.
Each warrant has an exercise price equal to $6.00. The warrants are immediately exercisable and will expire on the eighteen-month anniversary
of the original issuance date. The warrants may be exercised only for a whole number of shares of our common stock, and no fractional
shares will be issued upon exercise of the warrants. The warrants expire August 19, 2022.

 

Also
in connection with the offering, the Company issued broker’s warrants to purchase 15,333 shares of common stock to EF Hutton, as
placement agent in the offering. Each warrant has an exercise price equal to $7.50. The warrants are immediately exercisable and will
expire on the five-year anniversary of the original issuance date. The warrants may be exercised only for a whole number of shares of
our common stock, and no fractional shares will be issued upon exercise of the warrants. The warrants expire February 19, 2026.

 

Outstanding
Stock Options and Warrants

 

As
of December 31, 2021, there were options to acquire a total of 561,027 shares of common stock granted pursuant to our 2016 and 2018 equity
incentive plans at a weighted-average exercise price of $8.56, of which 364,574 shares of our common stock are currently issuable upon
exercise of outstanding stock options at a weighted-average exercise price of $9.17 per share, and there were warrants to acquire a total
of 1,548,345 shares of our common stock all of which are currently exercisable, at a weighted-average exercise price of $6.01.

 

Effect
of Certain Provisions of our Bylaws

 

Our
Bylaws contain provisions that could have the effect of delaying, deferring, or discouraging another party from acquiring control of
us. These provisions and certain provisions of Delaware law, which are summarized below, could discourage takeovers, coercive or otherwise.

 

    	 

     

    

 

Our
Bylaws provide for our Board of Directors to be divided into three classes serving staggered terms. Approximately one-third of the Board
of Directors will be elected each year. This method of electing directors makes changes in the composition of the Board of Directors
more difficult, and thus a potential change in control of a corporation a lengthier and more difficult process. A classified board of
directors is designed to assure continuity and stability in a board of directors’ leadership and policies by ensuring that at any
given time a majority of the directors will have prior experience with our Company and be familiar with our business and operations.

 

The
classified board structure may increase the amount of time required for a takeover bidder to obtain control of the Company without the
cooperation of our Board of Directors, even if the takeover bidder were to acquire a majority of the voting power of our outstanding
common stock. Without the ability to obtain immediate control of our Board of Directors, a takeover bidder will not be able to take action
to remove other impediments to its acquisition of our Company. Thus, a classified Board of Directors could discourage certain takeover
attempts, perhaps including some takeovers that stockholders may feel would be in their best interests. Further, a classified Board of
Directors will make it more difficult for stockholders to change the majority composition of our Board of Directors, even if our stockholders
believe such a change would be beneficial. Because a classified Board of Directors will make the removal or replacement of directors
more difficult, it will increase the directors’ security in their positions, and could be viewed as tending to perpetuate incumbent
management.

 

Since
the creation of a classified Board of Directors will increase the amount of time required for a hostile bidder to acquire control of
our Company, the existence of a classified board of directors could tend to discourage certain tender offers which stockholders might
feel would be in their best interest. However, our Board of Directors believes that forcing potential bidders to negotiate with our Board
of Directors for a change of control transaction will allow our Board of Directors to better maximize stockholder value in any change
of control transaction.

 

Our
bylaws also provide that, unless we consent in writing to an alternative forum, the federal and state courts of the State of Delaware
will be the sole and exclusive forum for: (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a
claim of breach of a fiduciary duty owed by any of our directors, officers, or employees to us or our stockholders; (iii) any action
asserting a claim arising pursuant to any provision of the Delaware General Corporation Law; or (iv) any action asserting a claim that
is governed by the internal affairs doctrine, in each case subject the court having personal jurisdiction over the indispensable parties
named as defendants therein. This exclusive forum provision would not apply to suits brought to enforce any liability or duty created
by the Securities Act or the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction. This forum selection
provision may limit our stockholders’ ability to bring a claim in a judicial forum that they find favorable for disputes with us
or our directors, officers, employees or agents, which may discourage such lawsuits against us and our directors, officers, employees
and agents even though an action, if successful, might benefit our stockholders.

 

Our
bylaws establish an advance notice procedure for stockholder proposals to be brought before any meeting of our stockholders, including
proposed nominations of persons for election to our board of directors. At an annual or special meeting, stockholders may only consider
proposals or nominations (i) specified in the notice of meeting; (ii) brought before the meeting by or at the direction of our board
of directors or (iii) otherwise properly brought before the meeting by any stockholder who is a stockholder of record on the date of
the giving of the notice and on the record date of the meeting and who complies with the notice procedures set forth in our bylaws. The
bylaws do not give our board of directors the power to approve or disapprove stockholder nominations of candidates or proposals regarding
other business to be conducted at a special or annual meeting of our stockholders. However, our bylaws may have the effect of precluding
the conduct of certain business at a meeting if the proper procedures are not followed. These provisions may also discourage or deter
a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting
to obtain control of the Company.

 

Delaware
Anti-Takeover Statute

 

We
are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. These provisions can discourage certain coercive
and inadequate takeover bids of the Company by requiring those seeking control of the Company to negotiate with the Board of Directors
first. In general, Section 203 prohibits a publicly-held Delaware corporation from engaging, under certain circumstances, in a business
combination with an interested stockholder (one who owns 15% or more of the Company’s outstanding voting stock) for a period of
three years following the date the person became an interested stockholder unless:

 

	 	●	Before
    the stockholder became an interested stockholder, the board of directors of the corporation approved either the business combination
    or the transaction which resulted in the stockholder becoming an interested stockholder;

 

    	 

     

    

 

	 	●	On
    completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned
    at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced with the total number of shares
    outstanding calculated when the transaction commenced (excluding certain shares owned by officers or directors or under employee
    stock plans); or
	 	 	 
	 	●	At
    or subsequent to the time of the transaction, the business combination is approved by the board of directors of the corporation and
    authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3%
    of the outstanding voting stock which is not owned by the interested stockholder.

 

Generally,
a business combination includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested
stockholder. We expect the existence of this provision to have an anti-takeover effect with respect to transactions that our Board of
Directors does not approve in advance and could result in making it more difficult to accomplish transactions that our stockholders may
see as beneficial such as (i) discouraging business combinations that might result in a premium over the market price for the shares
of our common stock; (ii) discouraging hostile takeovers which could inhibit temporary fluctuations in the market price of our common
stock that often result from actual or rumored hostile takeover attempts; and (iii) preventing changes in our management.

 

Transfer
Agent and Registrar

 

The
transfer agent and registrar for our common stock is Continental Stock Transfer & Trust Company. The transfer agent’s address
is: 1 State Street, 30th Floor, New York, New York 10004-1561. Shares of our common stock offered hereby will be issued in uncertificated
form only, subject to limited circumstances.

 

Market
Listing

 

Our
common stock is currently listed on Nasdaq under the symbol “VINO”.

 

Disclosure
of Commission Position on Indemnification for Securities Act Liabilities

 

Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons
pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy
as expressed in the Securities Act and is, therefore, unenforceable.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}]]