Document:

Document

Exhibit 10.1
AMENDMENT NO. 1 TO TERM LOAN AGREEMENT
This AMENDMENT NO. 1 TO TERM LOAN AGREEMENT, dated as of March 24, 2020 (this “Amendment No. 1”), is by and among PIEDMONT OPERATING PARTNERSHIP, LP, a Delaware limited partnership (“Borrower”), TRUIST BANK, as administrative agent (the “Agent”) and as Lender, and JPMORGAN CHASE BANK, N.A. (“JPMorgan”) and U.S. BANK NATIONAL ASSOCIATION (“US Bank”), as new Lenders (JPMorgan and US Bank, collectively, the “New Lenders”).  Reference is made to that certain Term Loan Agreement, dated as of February 10, 2020 (the “Loan Agreement”), by and among the Borrower, the Lenders referenced therein and the Agent. Capitalized terms used herein without definition shall have the same meanings as set forth in the Loan Agreement, as amended hereby.
RECITALS
WHEREAS, the Borrower has requested that the Lenders increase the size of the term loan facility to $300,000,000 and make certain amendments to the Loan Agreement, and the Lenders are willing to make such changes as set forth herein; 
NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:
SECTION 1.  AMENDMENTS TO LOAN Agreement.  As of the Amendment Effective Date (as defined in Section 3 hereof), the Loan Agreement is hereby amended as follows:
1.1Amendment to Recitals.  The first recital to the Loan Agreement is amended by deleting the amount “$150,000,000” on the second line thereof and substituting the amount “$300,000,000” in place thereof.
1.2Amendment to Section 1.1.  Section 1.1 of the Loan Agreement is amended by deleting the pricing grid at the end of the definition of “Applicable Margin” and substituting the following pricing grid in place thereof:
												
	Level	Credit Rating
(S&P/Moody’s)	Applicable Margin for
LIBOR Loans	Applicable Margin for
Base Rate Loans
	1	A-/A3 or higher	1.00%	0.00%
	2	BBB+/Baal	1.20%	0.20%
	3	BBB/Baa2	1.40%	0.40%
	4	BBB-/Baa3	1.65%	0.65%
	5	< BBB-/Baa3	2.00%	1.00%

1.3Further Amendments to Section 1.1.  Section 1.1 of the Loan Agreement is amended by amending and restating each of the following definitions in their entirety to read as follows:

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.
“Bail-In Legislation” means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).
“Commitment” means, as to each Lender, such Lender’s obligation to make Loans pursuant to Section 2.1, in an amount up to, but not exceeding, the amount set forth for such Lender on Schedule I as such Lender’s “Commitment”, or as set forth in the applicable Assignment and Assumption, as the same may be reduced from time to time pursuant to Section 2.10 or adjusted to reflect any assignments to or by such Lender effected in accordance with Section 12.5.
“Loan” the loan made pursuant to and defined  in Section 2.1(a).
“Mandatory Prepayment Event” means (a) the issuance of common or preferred equity securities by the Parent or the Borrower or (b) the incurrence of (i) any Indebtedness secured by a mortgage lien on any Property owned or ground-leased by the Borrower or a Subsidiary of the Borrower or (ii) any unsecured Indebtedness (excluding Indebtedness under the Existing Revolving Credit Facility pursuant to existing commitments (whether or not such existing commitments have been funded as of the Agreement Date) and including an issuance or private placement of unsecured notes or debt securities or the borrowing of incremental loans under a revolving credit or term loan facility pursuant to new commitments provided after the Agreement Date) of the Parent, the Borrower or any Subsidiary of the Borrower.  For the avoidance of doubt, Indebtedness under the Existing Revolving Credit Facility in an aggregate amount of up to $500,000,000 at any time outstanding shall not constitute a “Mandatory Prepayment Event” hereunder.
“Termination Date” means March 12, 2021, subject to extension as set forth in Section 2.11.
“Write-Down and Conversion Powers” means (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom,  any powers of the applicable Resolution Authority  under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution  or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised 
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under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.
1.4Additional Definitions for Section 1.1.  The following new definitions are added to Section 1.1 of the Loan Agreement in the appropriate alphabetical order:
“Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.
“Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a voluntary or involuntary bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment or has had any order for relief in such proceeding entered in respect thereof; provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a Governmental Authority or instrumentality thereof, unless such ownership interest results in or provides such Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permits such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.
“Defaulting Lender” means any Lender that (a) has failed, within two Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans or (ii) pay over to any Credit Party any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Agent in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Borrower or any Credit Party in writing, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified and including the particular default, if any) to funding a loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within three Business Days after request by a Credit Party, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations (and is financially able to meet such obligations as of the date of certification) to fund prospective Loans under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Credit Party’s receipt of such certification in form and substance satisfactory to it and the Agent, or (d) has become the subject of (A) a Bankruptcy Event or (B) a Bail-In Action.
“Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority. 
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“UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.
“UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.
1.5Amendment to Article I.  Article I of the Loan Agreement is amended by adding the following new Section 1.4 immediately after Section 1.3:
“Section 1.4.  Divisions.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its Equity Interests at such time.”
1.6Amendment to Section 2.1(a).  Section 2.1(a) of the Loan Agreement is amended by inserting the following new sentence at the end of such Section:
“Notwithstanding the foregoing, the Borrower agrees that it will deliver a Notice of Borrowing in an amount equal to all of the Commitments on March 24, 2020 and that the Commitment Period will therefore expire on such date immediately following the funding of such Loan Borrowing in accordance with the Notice of Borrowing.”
1.7Amendment to Section 2.11.  Section 2.11 of the Loan Agreement is amended by restating such Section 2.11 in its entirety to read as follows:
“Section 2.11. Extension of Termination Date.
If any Loans have been borrowed hereunder and are outstanding, the Borrower shall have the right, exercisable twice, to extend the Termination Date by six (6) months per extension (for a maximum total extension to March 11, 2022).  The Borrower may exercise each such right by executing and delivering to the Agent at least 15 days but not more than 30 days prior to the then current Termination Date, a written request for such extension (an “Extension Request”).  The Agent shall forward to each Lender a copy of the Extension Request delivered to the Agent promptly upon receipt thereof.  Subject to satisfaction of the following conditions, the Termination Date shall be extended for six (6) months effective upon receipt of the Extension Request and payment of the fee referred to in the following clause (b): (a) immediately prior to such extension and immediately after giving effect thereto, (i) no Default or Event of Default shall exist and (ii) the representations and warranties made or deemed made by the Borrower and each 
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other Loan Party in the Loan Documents to which any of them is a party, shall be true and correct in all material respects on and as of the date of such extension with the same force and effect as if made on and as of such date except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date) and except for changes in factual circumstances not prohibited under the Loan Documents and (b) the Borrower shall have paid to the Agent for the account of each Lender an extension fee equal to 0.0625% (i.e., 6.25 basis points) of the outstanding principal amount of such Lender’s Loans at the time of such extension.”
1.8Amendment to Article III.  Article III of the Loan Agreement is amended by inserting the following new Section 3.11 immediately after Section 3.10:
“Section 3.11.  Defaulting Lenders.  Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:
(a) any payment of principal, interest, fees or other amounts received by the Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article X or otherwise) or received by the Agent from a Defaulting Lender pursuant to Section 12.3 shall be applied at such time or times as may be determined by the Agent as follows:  first, to the payment of any amounts owing by such Defaulting Lender to the Agent hereunder; second, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Agent; third, if so determined by the Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement; fourth, to the payment of any amounts owing to the Lenders, as a result of any judgment of a court of competent jurisdiction obtained by any Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; fifth, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement or under any other Loan Document; and sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 5.2 were satisfied or waived, such payment shall be applied solely to pay the Loans of, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with 
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the Commitments.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this Section shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto; and
(b) the Commitment and Loans of such Defaulting Lender shall not be included in determining whether the Requisite Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or other modification pursuant to Section 12.6); provided that this clause (b) shall not apply to the vote of a Defaulting Lender in the case of an amendment, waiver or other modification requiring the consent of such Lender or each Lender affected thereby.
In the event that each of the Agent and the Borrower agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then such Lender shall purchase at par such of the Loans of the other Lenders as the Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Commitment Percentage.
1.9Amendment to Section 6.1.  Section 6.1(aa) of the Loan Agreement is restated in its entirety to read as follows:
“(aa) Affected Financial Institution.  No Loan Party is an Affected Financial Institution.”
1.10Amendment to Section 12.5(b)(vi).  Section 12.5(b)(vi) of the Loan Agreement is amended by adding the words “or a Defaulting Lender” after the words “natural person” at the end of such subsection.
1.11Amendment to Section 12.19.  Section 12.19 of the Loan Agreement is restated in its entirety to read as follows:
“Section 12.19  Acknowledgement and Consent to Bail-In of Affected Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(a) the application of any Write-Down and Conversion Powers by an the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and
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(b) the effects of any Bail-In Action on any such liability, including, if applicable:
(i) a reduction in full or in part or cancellation of any such liability;
(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.”
1.12Amendment to Article XII.  Article XII of the Loan Agreement is amended by adding the following new Section 12.20 immediately after Section 12.19:
“Section 12.20.  Acknowledgement Regarding Any Supported QFCs.
To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Derivatives Contracts or any other agreement or instrument that is a QFC (such support “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):
In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if 
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the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.
As used in this Section 12.20, the following terms have the following meanings:
“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
“Covered Entity” means any of the following:
(i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
(ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
(iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).”
1.13Commitments.  The aggregate Commitments are hereby increased from $150,000,000 to $300,000,000.
1.14Amendment to Schedule I.  Schedule I to the Loan Agreement is deleted in its entirety and the Schedule I attached hereto is substituted in place thereof.
1.15New Commitments by New Lenders; Reduction of Truist Bank’s Commitment  Each of the New Lenders shall have a Commitment in the amount set forth opposite its name on Schedule I attached to this Amendment No. 1.  The Commitment of Truist Bank is reduced to the amount set forth opposite its name on Schedule I attached to this Amendment No. 1.
1.16New Lenders.  From and after the date hereof, each of the New Lenders shall be deemed to be a Lender for all purposes of the Loan Agreement, and each reference to the Lenders in the Loan Agreement shall be deemed to include each of the New Lenders.  Without limiting the generality of the foregoing, each of the New Lenders confirms its appointment of  Truist Bank as the Agent in accordance with Article XI of the Loan Agreement.
1.17Representations, Warranties and Agreements of New Lenders.  Each of the New Lenders (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Amendment No. 1 and to consummate the 
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transactions contemplated hereby and to become a Lender under the Loan Agreement, (ii) it satisfies the requirements, if any, specified in the Loan Agreement and under applicable law that are required to be satisfied by it in order to become a Lender, (iii) from and after the Amendment Effective Date, it shall be bound by the provisions of the Loan Agreement as a Lender thereunder and, to the extent of its Commitments, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Loan Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.1 of the Loan Agreement, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Amendment No. 1, and (v) it has, independently and without reliance upon the Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Amendment No. 1; and (b) agrees that (i) it will, independently and without reliance upon the Agent or any other Lender and their Related Parties, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.
SECTION 2.  REPRESENTATIONS AND WARRANTIES OF THE PARENT AND THE BORROWER
In order to induce the Lenders (including the New Lenders) and the Agent to enter into this Amendment No. 1, each of the Parent and the Borrower represents and warrants to each Lender (including the New Lenders) and the Agent that the following statements are true, correct and complete:
(i) The Borrower and each other Loan Party has the right and power, and has taken all necessary action to authorize it, to execute, deliver and perform each of this Amendment No. 1, the Loan Agreement as amended by this Amendment No. 1 (the “Amended Agreement”) and the replacement Notes and new Notes described in Section 3D below (the “Replacement and New Notes”, and together with this Amendment No. 1 and the Amended Agreement, the “Amendment Documents”) to which it is a party in accordance with their respective terms and to consummate the transactions contemplated hereby and thereby.  Each of Amendment Documents has been duly executed and delivered by the duly authorized officers or other representatives of the Borrower and Parent and is a legal, valid and binding obligation of such Persons enforceable against such Persons in accordance with its terms except as the same may be limited by bankruptcy, insolvency, and other similar laws affecting the rights of creditors generally and the availability of equitable remedies for the enforcement of certain obligations (other than the payment of principal) contained herein or therein may be limited by equitable principles generally;
(ii) The execution, delivery and performance of each of the Amendment Documents in accordance with its terms do not and will not, by the passage of time, the giving of notice, or both: (i) require any Governmental Approval or violate any Applicable Law (including all Environmental Laws) relating to the Borrower or Parent; (ii) conflict with, result in a breach of or constitute a default under the organizational documents of the Borrower or Parent, or any 
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indenture, agreement or other instrument to which the Borrower or Parent is a party or by which it or any of its respective properties may be bound; or (iii) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by the Borrower or Parent;
(iii) the representations and warranties of the Parent and the Borrower contained in Article VI of the Loan Agreement are and will be true and correct in all material respects (or, in the case of any such representation or warranty already qualified by materiality, in all respects) on and as of the date hereof and the Amendment Effective Date to the same extent as though made on and as of such dates, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true and correct in all material respects (or, in the case of any such representation or warranty already qualified by materiality, in all respects) on and as of such earlier date and except for changes in factual circumstances not prohibited by the Loan Agreement; and
(iv) no event has occurred and is continuing or will result from the consummation of the transactions contemplated by this Amendment No. 1 that would constitute a Default or Event of Default.
SECTION 3.  CONDITIONS TO EFFECTIVENESS
This Amendment No. 1 shall become effective only upon the satisfaction of the following conditions precedent (the date of satisfaction of such conditions being referred to as the “Amendment Effective Date”):
A.The Borrower, the Parent, the Agent, and all of the Lenders (including the New Lenders) shall have indicated their consent hereto by the execution and delivery of the signature pages hereof to the Agent, including, in the case of Parent, the signature page to the Reaffirmation of Facility Guaranty attached to this Amendment No. 1.
B.The Agent shall have received, for the account of each Lender executing this Amendment No. 1, the agreed-upon fees owed to such Lender on the Amendment Effective Date.  
C.The Agent shall have received a secretary’s certificate of the Parent and the Borrower (i) either confirming that there have been no changes to its organizational documents since February 10, 2020, or if there have been changes to the Parent’s or the Borrower’s organizational documents since such date, certifying as to such changes, and (ii) certifying as to resolutions of the Parent and the Borrower, the good standing of the Parent and the Borrower and the incumbency of officers with respect to this Amendment No. 1 and the transactions contemplated hereby.
D.Execution and delivery to the Agent by the Borrower of a replacement Note in favor of Truist Bank and a new Note in favor of each New Lender, in each case in the amount of its Commitment set forth on Schedule I attached hereto.
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E.Delivery to the Agent by King & Spalding LLP and Venable LLP, as counsel to the Parent and the Borrower, of opinions addressed to the Lenders and the Agent in form and substance reasonably satisfactory to the Agent.
F.The Agent shall have received all reasonable out-of-pocket costs and expenses for which invoices have been presented (including the reasonable fees and expenses of legal counsel for which the Borrower agrees it is responsible pursuant to Section 12.2 of the Loan Agreement), incurred in connection with this Amendment No. 1.
SECTION 4.  MISCELLANEOUS
A. Reference to and Effect on the Loan Agreement and the Other Loan Documents.
(i) On and after the effective date of this Amendment No. 1, each reference in the Loan Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Loan Agreement and each reference in the other Loan Documents to the “Loan Agreement”, “thereunder”, “thereof” or words of like import referring to the Loan Agreement shall mean and be a reference to the Loan Agreement as amended hereby.  This Amendment No. 1 shall constitute a “Loan Document” under the Loan Agreement.
(ii) Except as specifically amended by this Amendment No. 1, the Loan Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.
(iii) The execution, delivery and performance of this Amendment No. 1 shall not, except as expressly provided herein, constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of the Agent or any Lender under the Loan Agreement or any of the other Loan Documents.
B.Headings.  Section and subsection headings in this Amendment No. 1 are included herein for convenience of reference only and shall not constitute a part of this Amendment No. 1 for any other purpose or be given any substantive effect.
C.Applicable Law.  THIS AMENDMENT NO. 1 AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, WITHOUT REGARD FOR PRINCIPLES OF CONFLICTS OF LAW.
D.Counterparts; Effectiveness.  This Amendment No. 1 may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document.  Delivery of an executed counterpart of a signature page of this Amendment No. 1 by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment No. 1.  Unless set forth in writing to the contrary, execution of this Amendment No. 1 by a Lender shall be deemed conclusive evidence that the conditions precedent to effectiveness set forth in Section 3 shall have been satisfied or waived to the satisfaction of such Lender.
[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly executed and delivered by their respective officers thereunto duly authorized as of the date first written above.
BORROWER:
PIEDMONT OPERATING PARTNERSHIP, LP
By: Piedmont Office Realty Trust, Inc., its General Partner
By:     
Name: 
Title: 

PARENT:
PIEDMONT OFFICE REALTY TRUST, INC.
By:     
Name: 
Title: 

TRUIST BANK, as Agent and as a Lender

By:      
Name: 
Title: 

JPMORGAN CHASE BANK. N.A., AS A NEW LENDER

By:      
Name:  
Title:    

U.S. BANK NATIONAL ASSOCIATION, AS A NEW LENDER

By:       
Name: 
Title:   

Reaffirmation of Facility Guaranty

        The undersigned Guarantor hereby (a) acknowledges the foregoing Amendment No. 1, (b) reaffirms its guaranty of the Guarantied Obligations (as defined in the Facility Guaranty executed and delivered by such Guarantor) under or in connection with the Loan Agreement, as modified by this Amendment No. 1, in accordance with the Facility Guaranty executed and delivered by such Guarantor, and (c) confirms that its Facility Guaranty shall remain in full force and effect after giving effect to this Amendment No. 1.

						
	

	PIEDMONT OFFICE REALTY TRUST, INC. 

By:  _______________________
Name:  
Title:  

Schedule I

Commitments

						
	Lender

	Commitment
	TRUIST BANK

	$125,000,000.00
	JPMORGAN CHASE BANK, N.A.

	$75,000,000.00
	U.S. BANK NATIONAL ASSOCIATION

	$100,000,000.00
	TOTAL	$300,000,000.00Exhibit
4.4

 

DESCRIPTION
OF THE SECURITIES OF 

1347
PROPERTY INSURANCE HOLDINGS, INC.

REGISTERED
PURSUANT TO SECTION 12 OF 

THE
SECURITIES EXCHANGE ACT OF 1934

 

The
following summarizes the terms and provisions of the Common Stock and 8.00% Cumulative Preferred Stock, Series A, of 1347 Property
Insurance Holdings, Inc., a Delaware corporation (the “Company”). The Common Stock and 8.00% Cumulative Preferred
Stock, Series A, are both registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). The following summary does not purport to be complete and is qualified in its entirety by reference to the Company’s
Certificate of Incorporation and Bylaws, each as amended, and the Certificate of Designations of 8.00% Cumulative Preferred Stock,
Series A, which the Company has previously filed with the Securities and Exchange Commission, and applicable Delaware law. 

 

Authorized
Capital 

 

The
Company’s authorized capital stock consists of 10,000,000 shares of common stock, par value $0.001 per share (the “Common
Stock”), and 1,000,000 shares of preferred stock, par value $25.00 per share, of which 736,000 shares have been designated
as a single series of 8.00% Cumulative Preferred Stock, Series A (the “Series A Preferred Stock”).

 

Under
Delaware law, stockholders generally are not personally liable for a corporation’s acts or debts.

 

Common
Stock

 

Exchange
and Trading Symbol

 

The
Common Stock is listed for trading on the Nasdaq Global Market tier of the Nasdaq Stock Market under the trading symbol “PIH.”

 

Rights,
Preferences and Privileges 

 

All
outstanding shares of Common Stock are duly authorized, fully paid and nonassessable. Holders of shares of Common Stock have no
conversion, preemptive or subscription rights, and there are no redemption or sinking fund provisions applicable to the Common
Stock. The rights, preferences and privileges of the holders of Common Stock are subject to, and may be adversely affected by,
the rights of the holders of shares of the Series A Preferred Stock and any series of preferred stock that the Company may designate
and issue in the future.

 

Voting
Rights 

 

Holders
of Common Stock are entitled to one vote for each share held of record on all matters to be voted on by the stockholders. There
is no cumulative voting with respect to the election of directors. Directors are elected annually by a plurality of the votes
cast by the holders of Common Stock. Except for the approval required to amend the Company’s Certificate of Incorporation
or the Bylaws and except as otherwise required by law, all other matters brought to a vote of the holders of Common Stock are
determined by a majority of the votes cast, and, except as may be provided with respect to any other outstanding class or series
of the Company’s stock, the holders of shares of Common Stock possess the exclusive voting power.

 

Dividends

 

Subject
to preferences that may be applicable to any outstanding shares of preferred Stock (including the Series A Preferred Stock), the
holders of Common Stock are entitled to receive dividends, if any, as may be declared from time to time by the Company’s
Board of Directors out of legally available funds.

 

    	 

    	 

    

 

Liquidation

 

In
the event of the Company’s liquidation, dissolution or winding up, the holders of Common Stock are entitled to share ratably
in the assets legally available for distribution to stockholders after the payment of all of the Company’s known debts and
liabilities and after adequate provision has been made for each class of stock having preference over the Common Stock, if any.

 

Preferred
Stock

 

The
Board of Directors of the Company is permitted, subject to any limitations prescribed by applicable law and without further approval
or action by the holders of Common Stock, to issue up to 1,000,000 shares of preferred stock in one or more series.

 

The
Board of Directors may fix the designation, powers, preferences and rights of the shares of each such series and any qualifications,
limitations or restrictions thereof, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation
preferences and sinking fund terms. The rights of the holders of Common Stock are generally be subject to the prior rights of
the holders of any outstanding shares of preferred stock with respect to dividends, liquidation preferences and other matters.

 

8.00%
Cumulative Preferred Stock, Series A

 

The
Board of Directors has designated 736,000 shares of preferred stock as a single series of 8.00% Cumulative Preferred Stock, Series
A, or Series A Preferred Stock. The Company filed a Certificate of Designations to its Third Amended and Restated Certificate
of Incorporation with the Secretary of State of the State of Delaware on February 23, 2018, establishing the rights, preferences,
privileges, qualifications, restrictions, limitations and other terms of the Series A Preferred Stock (the “Certificate
of Designations”). The original issue date of the Series A Preferred Stock is February 28, 2018. Other than the Series A
Preferred Stock, the Company does not have any other series or shares of preferred stock outstanding.

 

Exchange
and Trading Symbol

 

The
Series A Preferred Stock is listed for trading on the Nasdaq Global Market tier of the Nasdaq Stock Market under the trading symbol
“PIHPP.”

 

Rights
and Preferences

 

The
Series A Preferred Stock is fully paid and non-assessable. Holders of the Series A Preferred Stock do not have preemptive or similar
rights to acquire any of the Company’s capital stock. Holders do not have the right to convert Series A Preferred Stock
into, or exchange Series A Preferred Stock for, shares of any other class or series of shares or other securities of the Company.
The Series A Preferred Stock has no stated maturity and is not subject to any sinking fund, retirement fund or purchase fund or
other obligation of the Company to redeem or purchase the Series A Preferred Stock. The rights, preferences and privileges of
the holders of Series A Preferred Stock are subject to, and may be adversely affected by, the rights of the holders of shares
of any other series of preferred stock that the Company may designate and issue in the future that ranks senior to the Series
A Preferred Stock.

 

Ranking

 

The
Series A Preferred Stock ranks senior to the Common Stock and any other junior stock (as defined in the Certificate of Designations)
with respect to the payment of dividends and distributions of assets upon liquidation, dissolution or winding up, equally with
any parity stock (as defined in the Certificate of Designations) of the Company, including other series of preferred stock that
the Company may issue the terms of which provide that they rank equally with the Series A Preferred Stock with respect to the
payment of dividends and distributions of assets upon liquidation, dissolution or winding-up, and junior to any series of preferred
stock that the Company may issue in the future the terms of which provide that they rank senior to the Series A Preferred Stock
with respect to the payment of dividends and distributions of assets upon the Company’s liquidation, dissolution or winding-up.

 

    	 

    	 

    

 

Dividends

 

Holders
of Series A Preferred Stock are entitled to receive, when, as and if declared by the Board of Directors of the Company or a duly
authorized committee thereof, out of lawfully available funds for the payment of dividends, cumulative cash dividends from the
original issue date at the rate of 8.00% of the $25.00 per share liquidation preference per annum (equivalent to $2.00 per annum
per share). Dividends on the Series A Preferred Stock are payable quarterly on the 15th day of March, June, September and December
of each year, commencing on June 15, 2018 (each, a “dividend payment date”). In the event that the Company issues
additional shares of Series A Preferred Stock after the original issue date, dividends on such additional shares may accrue from
the original issue date or any other date that the Company specifies at the time such additional shares are issued.

 

Dividends,
if so declared, are payable to holders of record of the Series A Preferred Stock as they appear on the Company’s books on
the applicable record date, which is March 1, June 1, September 1 and December 1, as applicable, immediately preceding the applicable
dividend payment date (each, a “dividend record date”). These dividend record dates apply regardless of whether a
particular dividend record date is a business day (as defined in the Certificate of Designations). As a result, holders of shares
of Series A Preferred Stock are not entitled to receive dividends on a dividend payment date if such shares were not issued and
outstanding on the applicable dividend record date.

 

A
dividend period is the period from and including a dividend payment date to but excluding the next dividend payment date, except
that the initial dividend period commenced on and included the original issue date of the Series A Preferred Stock and ended on
and excluded the June 15, 2018 dividend payment date. Dividends payable on the Series A Preferred Stock are computed on the basis
of a 360-day year consisting of twelve 30-day months. If any date on which dividends would otherwise be payable is not a business
day, then the dividend payment date will be the next succeeding business day with the same force and effect as if made on the
original dividend payment date, and no additional dividends shall accrue on the amount so payable from such date to such next
succeeding business day.

 

No
dividends on shares of Series A Preferred Stock shall be authorized by the Board of Directors (or a duly authorized committee
thereof) or paid or set apart for payment by the Company at any time when the terms and provisions of any agreement of the Company,
including any agreement relating to the Company’s indebtedness, prohibit the authorization, payment or setting apart for
payment thereof or provide that the authorization, payment or setting apart for payment thereof would constitute a breach of the
agreement or a default under the agreement, or if the authorization, payment or setting apart for payment shall be restricted
or prohibited by law.

 

Notwithstanding
the foregoing, dividends on the Series A Preferred Stock accrue whether or not the Company has earnings, whether or not there
are funds legally available for the payment of those dividends and whether or not those dividends are declared by the Board of
Directors. No interest, or sum in lieu of interest, is payable in respect of any dividend payment or payments on the Series A
Preferred Stock that may be in arrears, and holders of the Series A Preferred Stock are not entitled to any dividends in excess
of full cumulative dividends described above. Any dividend payment made on the Series A Preferred Stock is first credited against
the earliest accumulated but unpaid dividend due with respect to those shares.

 

Unless
full cumulative dividends on all shares of Series A Preferred Stock have been or contemporaneously are declared and paid (or declared
and a sum sufficient for the payment thereof has been set aside or contemporaneously is set apart for payment for all past dividend
periods):

 

	 	●	no
    dividend shall be declared or paid or set aside for payment upon the Common Stock, or any other junior stock (other than a
    dividend payable solely in Common Stock or other junior stock), nor shall any distribution be declared or made upon the Common
    Stock or any other junior stock;
	 	 	 
	 	●	no
    Common Stock or other junior stock shall be purchased, redeemed or otherwise acquired for consideration by the Company, directly
    or indirectly (other than (1) as a result of a reclassification of junior stock for or into other junior stock, or the exchange
    or conversion of one share of junior stock for or into another share of junior stock, or (2) through the use of the proceeds
    of a substantially contemporaneous sale of junior stock) nor shall any monies be paid to or made available for a sinking fund
    for the redemption of such stock (it being understood that the provisions of this bullet point shall not apply to grants or
    settlements of grants pursuant to any equity compensation plan adopted by the Company); and

 

    	 

    	 

    

 

	 	●	no
    shares of Series A Preferred Stock or parity stock shall be repurchased, redeemed or otherwise acquired for consideration
    by the Company other than pursuant to pro rata offers to purchase all, or a pro rata portion, of the Series A Preferred Stock
    and such parity stock except by conversion into or exchange for junior stock.

 

When
dividends are not paid in full (or a sum sufficient for such full payment is not so set apart) upon the Series A Preferred Stock
and any parity stock, all dividends declared upon the Series A Preferred Stock and any party stock shall be declared pro rata
so that the amount of dividends declared per share of Series A Preferred Stock and such parity stock shall in all cases bear to
each other the same ratio that accrued dividends per share on the Series A Preferred Stock and such parity stock (which shall
not include any accrual in respect of unpaid dividends for prior dividend periods if such preferred stock does not have a cumulative
dividend) bear to each other. No interest, or sum of money in lieu of interest, shall be payable in respect of any dividend payment
or payments on the Series A Preferred Stock that may be in arrears.

 

Liquidation
Rights

 

Upon
the Company’s voluntary or involuntary liquidation, dissolution or winding up, holders of the Series A Preferred Stock and
any parity stock are entitled to receive out of the Company’s assets available for distribution to stockholders, after satisfaction
of liabilities to creditors, if any, and subject to the preferential rights of the holders of any class or series of capital stock
that the Company may issue ranking senior to the Series A Preferred Stock with respect to the distribution of assets upon liquidation,
dissolution or winding up, a liquidating distribution in the amount equal to the liquidation preference of $25.00 per share of
Series A Preferred Stock, plus an amount equal to any accumulated and unpaid dividends to, but not including, the date of payment,
but before any distribution of assets is made to holders of Common Stock or any class or series of the Company’s capital
stock it may issue that ranks junior to the Series A Preferred Stock as to liquidation rights.

 

In
any such distribution, if the Company’s assets are not sufficient to pay the liquidation distributions in full to all holders
of the Series A Preferred Stock and all holders of any parity stock, the amounts paid to the holders of Series A Preferred Stock
and to the holders of any parity stock will be paid pro rata in accordance with the respective aggregate liquidation distributions
of those holders. In any such distribution, the liquidation distribution to any holder of preferred stock means the amount payable
to such holder in such distribution, including any declared but unpaid dividends (and any unpaid, accrued cumulative dividends
in the case of any holder of shares on which dividends accrue on a cumulative basis). If the liquidation distributions have been
paid in full to all holders of shares of the Series A Preferred Stock and any holders of shares of parity stock and shares ranking
senior to the Series A Preferred Stock with respect to the distribution of assets upon liquidation, dissolution or winding-up,
the holders of the Company’s other classes of capital stock will be entitled to receive all of the Company’s remaining
assets according to their respective rights and preferences.

 

A
consolidation or merger involving the Company with any other entity, including the consolidation or merger in which the holders
of Series A Preferred Stock receive cash, securities or other property for their shares, or the sale or transfer of all or substantially
all of the property and assets of the Company for cash, securities or other property, will not be deemed to constitute a liquidation,
dissolution or winding-up.

 

Redemption

 

The
Series A Preferred Stock is not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or other similar
provisions.

 

The
Series A Preferred Stock is not redeemable prior to February 28, 2023. On and after that date, the Series A Preferred Stock will
be redeemable at the Company’s option, in whole or in part, upon not less than 30 days nor more than 60 days’ written
notice, at a redemption price equal to $25.00 per share, plus any accumulated and unpaid dividends thereon to, but not including,
the redemption date. Holders of the Series A Preferred Stock have no right to require the redemption of the Series A Preferred
Stock.

 

In
connection with any redemption of Series A Preferred Stock, the Company shall pay, in cash, any accumulated and unpaid dividends
to, but not including, the redemption date, unless a redemption date falls after a dividend record date and prior to the corresponding
dividend payment date, in which case each holder of Series A Preferred Stock at the close of business on such dividend record
date shall be entitled to the dividend payable on such shares on the corresponding dividend payment date notwithstanding the redemption
of such shares before such dividend payment date.

 

    	 

    	 

    

 

If
shares of the Series A Preferred Stock are to be redeemed, the notice of redemption shall be given by first class mail to the
holders of record of the Series A Preferred Stock to be redeemed, mailed not less than 30 days nor more than 60 days prior to
the date fixed for redemption thereof (provided that, if the Series A Preferred Stock is held in book-entry form through The Depository
Trust Company, or “DTC,” the Company may give such notice in any manner permitted by DTC). Each notice of redemption
will include a statement setting forth:

 

	 	●	the
    redemption date;
	 	 	 
	 	●	the
    number of shares of Series A Preferred Stock to be redeemed and, if less than all the shares of Series A Preferred Stock held
    by such holder are to be redeemed, the number of such shares of Series A Preferred Stock to be redeemed from such holder;
	 	 	 
	 	●	the
    redemption price;
	 	 	 
	 	●	that
    the shares should be delivered via book entry transfer or the place or places where holders may surrender certificates evidencing
    the Series A Preferred Stock for payment of the redemption price; and
	 	 	 
	 	●	if
    applicable, that such redemption is being made in connection with a change of control and, in that case, a brief description
    of the transaction or transactions constituting such change of control.

 

In
case of any redemption of only part of the shares of Series A Preferred Stock at the time outstanding, the shares of Series A
Preferred Stock to be redeemed shall be selected either pro rata or in such other manner as the Company may determine to be fair
and equitable.

 

If
notice of redemption of any shares of Series A Preferred Stock has been given and if the Company has irrevocably set aside the
funds necessary for such redemption, then, from and after the redemption date (unless the Company shall default in providing for
the payment of the redemption price plus accumulated and unpaid dividends, if any), dividends will cease to accumulate on such
shares of Series A Preferred Stock, such shares of Series A Preferred Stock shall no longer be deemed outstanding and all rights
of the holders of such shares of Series A Preferred Stock will terminate, except the right to receive the redemption price plus
accumulated and unpaid dividends, if any, payable upon redemption.

 

Unless
full cumulative dividends on all shares of Series A Preferred Stock shall have been or contemporaneously are declared and paid
or declared and a sum sufficient for the payment thereof has been or contemporaneously is set apart for payment for all past dividend
periods, no shares of Series A Preferred Stock shall be redeemed unless all outstanding shares of Series A Preferred Stock are
simultaneously redeemed, and the Company shall not purchase or otherwise acquire directly or indirectly any shares of Series A
Preferred Stock (except by exchanging it for its junior stock); provided, however, that the Company may purchase or acquire shares
of Series A Preferred Stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding shares
of Series A Preferred Stock.

 

The
Company’s ability to redeem the Series A Preferred Stock as described above may be limited by the terms of agreements governing
the Company’s existing and future indebtedness and by the provisions of other existing and future agreements.

 

Voting
Rights

 

Holders
of Series A Preferred Stock do not have any voting rights, except as set forth below or as otherwise from time to time provided
by law, nor do the holders of the Series A Preferred Stock receive any notice of a meeting or vote by the Company’s common
stockholders.

 

In
any matter on which holders of Series A Preferred Stock are entitled to vote, each share of Series A Preferred Stock is entitled
to one vote for each $25.00 of liquidation preference.

 

    	 

    	 

    

 

So
long as any shares of Series A Preferred Stock remain outstanding, the Company will not, without the affirmative vote or consent
of the holders of at least two-thirds of the votes entitled to be cast by the holders of the Series A Preferred Stock and each
other class or series of voting parity stock outstanding at the time, given in person or by proxy, either in writing or at a meeting
(voting together as a single class) (a) authorize, create, or issue, or increase the authorized or issued amount of, any class
or series of stock ranking senior to the Series A Preferred Stock with respect to payment of dividends or the distribution of
assets upon liquidation, dissolution or winding up of the affairs of the Company or reclassify any authorized shares of capital
stock of the Company into such stock, or create, authorize or issue any obligation or security convertible into or evidencing
the right to purchase any such stock; or (b) amend, alter or repeal the Certificate of Incorporation, whether by way of a merger,
consolidation, transfer or conveyance of all or substantially all of the Company’s assets or otherwise (an “Event”),
so as to materially and adversely affect any right, preference, privilege or voting power of the Series A Preferred Stock or the
holders thereof; provided, however, with respect to the occurrence of any of the Events set forth in (b) above, so long as any
shares of Series A Preferred Stock remain outstanding with the terms thereof unchanged or the holders of shares of Series A Preferred
Stock receive capital stock of the successor with substantially identical rights (taken as a whole), taking into account that,
upon the occurrence of an Event, we may not be the surviving entity, the occurrence of such Event shall not be deemed to adversely
affect such rights, preferences, privileges or voting power of holders of Series A Preferred Stock, and in such case such holders
shall not have any voting rights with respect to the occurrence of any of the Events set forth in (b) above. In addition, if the
holders of the Series A Preferred Stock receive the greater of the full trading price of the Series A Preferred Stock on the date
of an Event set forth in (b) above or the $25.00 liquidation preference per share of the Series A Preferred Stock pursuant to
the occurrence of any of the Events set forth in (b) above, then such holders will not have any voting rights with respect to
the Events set forth in (b) above. Moreover, if any Event set forth in (b) above would adversely affect any right, preference,
privilege or voting power of the Series A Preferred Stock disproportionately relative to other classes or series of parity stock,
the affirmative vote of the holders of at least two-thirds of the outstanding shares of Series A Preferred Stock, voting separately
as a class, will also be required.

 

Holders
of the Series A Preferred Stock are not entitled to vote with respect to (x) any increase in the total number of authorized shares
of parity stock or junior stock of the Company, or (y) any increase in the amount of the authorized Series A Preferred Stock or
the creation or issuance of any other class or series of parity stock or junior stock, and any such authorization, creation or
issuances will not be deemed to adversely affect the rights of the holders of the Series A Preferred Stock.

 

The
foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise
be required shall be effected, all outstanding shares of Series A Preferred Stock shall have been redeemed or called for redemption
upon proper notice and sufficient funds, in cash, shall have been deposited in trust to effect such redemption and irrevocable
instructions have been given to the paying agent to pay the redemption price and all accrued and unpaid distributions on the Series
A Preferred Stock.

 

Book
Entry

 

The
Series A Preferred Stock is represented by a global security deposited with and registered in the name of Cede & Co. as DTC’s
nominee. DTC is the depository for the Series A Preferred Stock. Unless exchanged in whole or in part for a certificated security,
a global security may not be transferred. However, DTC, its nominees, and their successors may transfer a global security as a
whole to one another. Beneficial interests in the global securities are shown on, and transfers of the global securities are made
only through, records maintained by DTC and its participants.

 

Transfer
Agent, Registrar, Dividend Disbursing Agent and Redemption Agent

 

VStock
Transfer, LLC is the transfer agent and registrar for the Common Stock and Series A Preferred Stock and the dividend disbursing
agent and redemption agent for the Series A Preferred Stock.

 

    	 

    	 

    

 

Anti-Takeover
Effects of Provisions of Delaware Law and the Company’s Certificate of Incorporation and Bylaws

 

Delaware
Anti-Takeover Law

 

The
Company is subject to Section 203 of the Delaware General Corporation Law (“Section 203”). Section 203 generally prohibits
a public Delaware corporation from engaging in a “business combination” with an “interested stockholder”
for a period of three years after the date of the transaction in which the person became an interested stockholder unless:

 

	 	●	prior
    to the date of the transaction, the board of directors of the corporation approved either the business combination or the
    transaction which resulted in the stockholder becoming an interested stockholder;
	 	 	 
	 	●	upon
    consummation of the transaction which 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, excluding for
    purposes of determining the number of shares outstanding (but not the outstanding voting stock owned by the interested stockholder)
    those shares owned by (i) persons who are directors and also officers and (ii) employee stock plans in which employee participants
    do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or
    exchange offer; or
	 	 	 
	 	●	at
    or subsequent to such time the business combination is approved by the board of directors 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.

 

Section
203 defines a “business combination” to generally include:

 

	 	●	any
    merger or consolidation of the corporation or any direct or indirect majority-owned subsidiary of the corporation with the
    interested stockholder;
	 	 	 
	 	●	any
    sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions), except
    proportionately as a stockholder of such corporation, to or with the interested stockholder of assets of the corporation or
    of any direct or indirect majority-owned subsidiary of the corporation which assets have an aggregate market value equal to
    10% or more of either the aggregate market value of all the assets of the corporation determined on a consolidated basis or
    the aggregate market value of all the outstanding stock of the corporation;
	 	 	 
	 	●	subject
    to certain exceptions, any transaction which results in the issuance or transfer by the corporation or by any direct or indirect
    majority-owned subsidiary of the corporation of any stock of the corporation or of such subsidiary to the interested stockholder;
	 	 	 
	 	●	subject
    to certain exceptions, any transaction involving the corporation or any direct or indirect majority-owned subsidiary of the
    corporation which has the effect, directly or indirectly, of increasing the proportionate share of the stock of any class
    or securities, or securities convertible into the stock of any class or series, of the corporation or of any such subsidiary
    which is owned by the interested stockholder; and
	 	 	 
	 	●	any
    receipt by the interested stockholder of the benefit, directly or indirectly (except proportionately as a stockholder of such
    corporation), of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation
    or any direct or indirect majority-owned subsidiary.

 

In
general, Section 203 defines an interested stockholder as any entity or person that (i) is the owner of 15% or more of the outstanding
voting stock of the corporation, or (ii) is an affiliate or associate of the corporation and was the owner of 15% or more of the
outstanding voting stock of the corporation at any time within the three-year period immediately prior to the date on which it
is sought to be determined whether such person is an interested stockholder, and the affiliates and associates of such person.

 

    	 

    	 

    

 

Certificate
of Incorporation and Bylaws

 

The
Company’s Certificate of Incorporation and Bylaws include anti-takeover provisions that:

 

	 	●	authorize
    the Board of Directors, without further action by the stockholders, to issue shares of preferred stock in one or more series,
    and with respect to each series, to fix the number of shares constituting that series, and establish the rights and terms
    of that series;
	 	 	 
	 	●	establish
    advance notice procedures for stockholders to submit nominations of candidates for election to the Board of Directors to be
    brought before a stockholders meeting;
	 	 	 
	 	●	allow
    the Company’s directors to establish the size of the Board of Directors and fill vacancies on the Board created by an
    increase in the number of directors (subject to the rights of the holders of any series of preferred stock to elect additional
    directors under specified circumstances);
	 	 	 
	 	●	do
    not provide stockholders cumulative voting rights with respect to director elections;
	 	 	 
	 	●	do
    not permit stockholders to take action by written consent;
	 	 	 
	 	●	provide
    that special meetings of the stockholders may be called only by or at the direction of the Board of Directors or at the request
    of 50% or more of the voting power of all of the outstanding shares of the Company’s capital stock entitled to vote
    on any issue contemplated to be considered at such proposed special meeting;
	 	 	 
	 	●	require
    the approval of 66 2/3% or more of the voting power of all of the outstanding shares of the Company’s capital stock
    entitled to vote generally in the election of directors to amend the Certificate of Incorporation; and
	 	 	 
	 	●	allow
    the Board of Directors to make, alter or repeal the Company’s Bylaws but only allow stockholders to amend the Bylaws
    upon the approval of 66 2/3% or more of the voting power of all of the outstanding shares of the Company’s capital stock
    entitled to vote generally in the election of directors.

 

Provisions
of the Company’s Certificate of Incorporation and Bylaws may delay or discourage transactions involving an actual or potential
change in the Company’s control or change in the Company’s Board of Directors or management, including transactions
in which stockholders might otherwise receive a premium for their shares or transactions that the Company’s stockholders
might otherwise deem to be in their best interests. Therefore, these provisions could adversely affect the price of the Common
Stock.

 

Authorized
and Unissued Shares

 

The
Company’s authorized and unissued shares of Common Stock are available for future issuance without stockholder approval
except as may otherwise be required by applicable stock exchange rules or Delaware law. The Company may issue additional shares
for a variety of purposes, including future offerings to raise additional capital, to fund acquisitions and as employee and consultant
compensation. The existence of authorized but unissued shares of Common Stock could render more difficult, or discourage an attempt,
to obtain control of the Company by means of a proxy contest, tender offer, merger or otherwise.

 

The
Company’s Certificate of Incorporation authorizes the issuance of “blank check” preferred stock with such designations,
rights and preferences as may be determined from time to time by the Company’s Board of Directors. Accordingly, the Board
of Directors is empowered, without stockholder approval, to issue shares of preferred stock with dividend, liquidation, conversion,
voting or other rights that could adversely affect the value, voting power or other rights of holders of Common Stock. In addition,
the Board of Directors may, under certain circumstances, issue preferred stock in order to delay, defer, prevent or make more
difficult a change of control transaction such as a merger, tender offer, business combination or proxy contest, assumption of
control by a holder of a large block of the Company’s securities or the removal of incumbent management of the Company,
even if those events were favorable to the interests of the Company’s stockholders.

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