Document:

Exhibit 10.2

 

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT
(as amended from time to time, the “Agreement”) dated as of March 19, 2019, by and between Piedmont Office Realty Trust,
Inc. (the “Company”), with its principal place of business at 5565 Glenridge Connector, Suite 450, Atlanta, GA 30342
and C. Brent Smith, residing at the address set forth on the signature page hereof (the “Executive”).

 

WHEREAS, the
Company desires to secure the Executive’s continued employment with the Company by entering into this Agreement, effective
as of January 1, 2019 (the “Effective Date”), and the Executive wishes to continue his employment on the terms set
forth below.

 

Accordingly, the parties
hereto agree as follows:

 

1.           Term.
The Company hereby employs the Executive, and the Executive hereby accepts such employment, for an initial term commencing as of
Effective Date and continuing for a period ending on December 31, 2019, unless sooner terminated in accordance with the provisions
of Section 4 (the period during which the Executive is employed pursuant to this Agreement being hereinafter referred to as the
“Term”). The Term shall automatically be extended for successive one-year periods in accordance with the terms of this
Agreement (subject to termination as aforesaid) unless either party notifies the other party of non-renewal in writing, in accordance
with Section 6.4, at least ninety (90) days prior to the expiration of the initial Term or any subsequent renewal period. The delivery
by the Company to Executive of written notice indicating that it intends not to extend the Term as provided in this Section 1 prior
to the expiration of the then operative Term shall not be deemed a termination of Executive’s employment by the Company without
Cause for purposes of this Agreement, except as set forth in Section 4.5. If the Term expires, and Executive and Company agree
that Executive will remain employed by the Company, but do not enter into a new employment agreement, then such employment shall
be “at-will” and this Agreement will be of no further force and effect other than with respect to the provisions of
this Agreement that are expressly intended to survive the expiration of the Term.

 

2.           Duties.
From the date of this Agreement through June 30, 2019, the Executive shall be employed by the Company as President and Chief Investment
Officer of the Company (the “CIO”). From July 1, 2019 through the remainder of the Term the Executive shall be employed
by the Company as President and Chief Executive Officer of the Company (the “CEO”). In both capacities,, the Executive
shall faithfully perform for the Company the duties of such offices and shall perform such other duties of an executive, managerial
or administrative nature, which are consistent with such offices, as shall be specified and designated from time to time by the
Board of Directors of the Company (the “Board”), including also serving as an officer, manager, agent, trustee or other
representative with respect to any subsidiary, affiliate or joint venture of the Company (each a “Subsidiary”). If
requested by the Board, Executive shall serve as a member of the board of directors (or equivalent) of the Company or any Subsidiary
without additional compensation. The Executive shall devote substantially all of his business time and effort to the performance
of his duties hereunder. Notwithstanding the foregoing, nothing herein shall prohibit Executive from (i) engaging in personal investment
activities for the Executive and his family that do not give rise to any conflict of interests with the Company or its affiliates,
(ii) subject to prior approval of the Board, accepting directorships unrelated to the Company that do not give rise to any conflict
of interests with the Company or its affiliates and (iii) engaging in charitable and civic activities, so long as such activities
and outside interests described in clauses (i), (ii) and (iii) hereof do not interfere, in any material respect, with the performance
of the Executive’s duties hereunder. The Executive shall be based in the Atlanta, Georgia metropolitan area.

 

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		3.	Compensation.

 

3.1.           Salary.
The Company shall pay the Executive during the Term a base salary at a level to be determined by the Compensation Committee of
the Board (the “Compensation Committee”), which shall not be less the Executive’s current base salary, in accordance
with the customary payroll practices of the Company applicable to senior executives (the “Base Salary”). The Compensation
Committee may provide for such increases in Base Salary as it may in its discretion deem appropriate; provided that in no event
shall the Base Salary be decreased during the Term without the written consent of Executive.

 

3.2.           Bonus.
During the Term, in addition to the Base Salary, for each fiscal year of the Company ending during the Term, the Executive shall
be eligible to earn an annual target cash bonus of 50% (after meeting threshold performance criteria), 100% (after meeting target
performance criteria) and up to 150% (after meeting maximum performance criteria) of the Base Salary (the “Target Bonus Amount”)
payable during such fiscal year based upon criteria to be reasonably established not later than the first sixty (60) days of that
fiscal year by the Compensation Committee in consultation with Executive (the “Annual Bonus”), which bonus shall be
pursuant to the OIP (as defined below). The Compensation Committee may also increase the Target Bonus Amount at any time during
the Term. The Annual Bonus actually earned for any fiscal year shall be determined by the Compensation Committee in good faith
and paid to Executive within thirty (30) days following completion of the Company’s financial statement audit for the applicable
fiscal year, but in no event later than December 31 of the year following the end of the relevant fiscal year (the “Outside
Payment Date”). Notwithstanding the foregoing, if the Company’s financial statement audit has not been completed within
three months after the end of the fiscal year, the Company will pay the portion of Executive’s bonus that the Compensation
Committee is able to determine that Executive is entitled to (if any) no later than the 120 days after the end of the fiscal year
and the remaining portion, if any, of Executive’s Annual Bonus shall be paid no later than the Outside Payment Date.

 

3.3.           Incentive
Award. During the Term, in addition to the Base Salary and Annual Bonus, the Executive shall be eligible to participate
in the Company’s 2007 Omnibus Incentive Plan or other incentive plan as in effect from time to time (as such plan is approved
by the Stockholders) (the “OIP”), and awards which may be granted to Executive thereunder shall vest on a basis specified
by the Compensation Committee and may be subject to the achievement of pre-established performance-related goals determined by
the Compensation Committee, and otherwise shall be subject to such plan and definitive documentation governing the award. Grants
during the Term under the OIP shall be made at such times and in such amounts as the Compensation Committee shall determine in
its discretion.

 

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3.4.           Employee
Benefits. Except with respect to benefits specifically provided for otherwise in this Agreement, the Executive shall be
entitled during the Term to participate in any group life, hospitalization or disability insurance plans, health programs, retirement
plans, fringe benefit programs and similar benefits that are available to other senior executives of the Company generally, on
the same terms as such other executives, in each case to the extent that the Executive is eligible under the terms of such plans
or programs.

 

3.5.           Vacation.
The Executive shall be entitled to the number of vacation days per fiscal year based upon tenure with the Company, as set forth
in the Company’s employee handbook, which number shall be pro-rated in the case of any partial fiscal year during the Term
and which vacation days shall otherwise be taken consistent with the Company’s vacation policies. Vacation and other paid
time-off (PTO) shall be taken and provided in accordance with the Company’s vacation and PTO policies and plans.

 

3.6.           Expenses.
During the Term, the Company shall reimburse Executive for all reasonable business expenses incurred by Executive in the performance
of Executive’s duties hereunder in accordance with the Company’s policies as in effect from time to time.

 

3.7.           Forfeiture.
If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of
misconduct, with any financial reporting requirement under the securities laws, Executive shall reimburse in like-kind the Company
to the extent required by Section 304 of the Sarbanes-Oxley Act of 2002 for any bonus or other incentive-based or equity-based
compensation received by Executive from the Company during the 12-month period following the first public issuance or filing with
the Securities and Exchange Commission (whichever occurs first) of the financial document embodying such financial reporting requirement
and shall reimburse the Company for any profits realized from the sale of securities of the Company during that 12-month period.

 

4.           Termination.
Notwithstanding any other provision of this Agreement, the provisions of this Section 4 shall exclusively govern Executive’s
rights (except as otherwise expressly set forth herein) upon termination of employment with the Company. Following Executive’s
termination of employment, except as set forth in this Section 4, Executive (and Executive’s legal representative and estate)
shall have no further rights to any compensation or any other benefits under this Agreement.

 

4.1.           Definitions.

 

(a)           “Accrued
Rights” means the sum of the following: (i) any accrued but unpaid Base Salary through the date of termination; (ii)
a payment in respect of all unpaid, but accrued and unused vacation/PTO through the date of termination; (iii) any Annual Bonus
earned but unpaid as of the date of termination for any previously completed fiscal year (i.e., not for the year of employment
termination); (iv) reimbursement for any unreimbursed business expenses properly incurred by Executive in accordance with Company
policy through the date of termination; and (v) such rights, if any, under any award granted to Executive pursuant to the OIP and
other compensation programs and employee benefits to which Executive may be entitled upon termination of employment according to
the documents governing such benefits.

 

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(b)           “Cause”
means any of the following: (i) any material act or material omission by Executive which constitutes intentional misconduct in
connection with the Company’s or any Subsidiary’s business or relating to Executive’s duties hereunder or a willful
violation of law in connection with the Company’s or any Subsidiary’s business or relating to Executive’s duties
hereunder; (ii) an act of fraud, conversion, misappropriation or embezzlement by Executive with respect to the Company’s
or any Subsidiary’s assets or business or assets in the possession or control of the Company or any Subsidiary or conviction
of, indictment for (or its procedural equivalent) or entering a guilty plea or plea of no contest with respect to a felony, the
equivalent thereof or any crime involving any moral turpitude with respect to which imprisonment is a common punishment; (iii)
any act of dishonesty committed by Executive in connection with the Company’s or any Subsidiary’s business or relating
to Executive’s duties hereunder; (iv) the willful neglect of material duties of Executive or gross misconduct by Executive,
(v) the use of illegal drugs or excessive use of alcohol to the extent that any of such uses, in the Board’s good faith determination,
materially interferes with the performance of Executive’s duties to the Company or any Subsidiary; (vi) any other failure
(other than any failure resulting from incapacity due to physical or mental illness) by Executive to perform his material and reasonable
duties and responsibilities as an employee, director or consultant of the Company or any Subsidiary; or (vii) any breach of the
provisions of Section 5; any of which continues without cure, if curable, reasonably satisfactory to the Board within ten (10)
days following written notice from the Company or any Subsidiary (except in the case of a willful failure to perform his duties
or a willful breach, which shall require no notice or allow no such cure right). For purposes of the foregoing sentence, no act,
or failure to act, on Executive’s part shall be considered “willful” unless the Executive acted, or failed to
act, in bad faith or without reasonable belief that his act or failure to act was in the best interest of the Company or any Subsidiary.

 

(c)           “Disability”
means physical or mental incapacity whereby Executive is unable with or without reasonable accommodation for a period of six (6)
consecutive months or for an aggregate of nine (9) months in any twenty-four (24) consecutive month period to perform the essential
functions of Executive’s duties.

 

(d)           “Good
Reason” shall be present where Executive gives notice to the Board of his voluntary resignation (unless the following
occur with Executive’s written consent specifically referring to this Section 4) following either: (i) the failure of the
Company to pay or cause to be paid Base Salary or Annual Bonus when due hereunder; (ii) a material diminution in Executive’s
status, including, title, position, duties, authority or responsibility; (iii) a material adverse change in the criteria to be
applied by the Company with respect to Executive’s Target Bonus Amount (unless Executive has consented to such criteria);
(iv) the relocation of the Company’s executive offices to a location outside of the Atlanta, Georgia metropolitan area without
the consent of Executive; or (v) the failure to provide Executive with awards under the OIP (or another incentive plan then in
effect) that are reasonably and generally comparable to awards granted to other executive officers (other than the CEO) of the
Company under the OIP (after taking into account all awards granted to Executive and such other executives under the OIP, unless
Executive has consented to the awards or the CEO has recommended to the Compensation Committee that another executive officer receive
a disproportionate award). Notwithstanding the foregoing, (1) Good Reason (A) shall not be deemed to exist unless the Executive
gives to the Company a written notice identifying the event or condition purportedly giving rise to Good Reason expressly referencing
this Section 4.1(e) within 90 days after the time at which Executive first becomes aware of the event or condition and (B) shall
not be deemed to exist at any time after the Board has determined that there exists an event or condition which could serve as
the basis of a termination of the Executive’s employment for Cause so long as the Board gives notice to Executive of such
determination within thirty (30) days of such determination and such notice is given within 120 days after the time at which the
Board first becomes aware of the event or conditions constituting Cause; and (2) if there exists an event or condition that constitutes
Good Reason, the Company shall have 30 days from the date notice of Good Reason is given to cure such event or condition and, if
the Company does so, such event or condition shall not constitute Good Reason hereunder; and if the Company does not cure such
event or condition within such 30-day period, the Executive shall have ten (10) business days thereafter to give the Company notice
of termination of employment on account thereof (specifying a termination date no later than ten (10) days from the date of such
notice of termination).

 

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4.2.           Termination
by the Company for Cause or by Executive’s Resignation without Good Reason. The Term and Executive’s employment
hereunder may be terminated by the Company for Cause and shall terminate upon Executive’s resignation without Good Reason,
and in either case Executive shall be entitled to receive only his Accrued Rights.

 

4.3.           Death/Disability.
The Term and Executive’s employment hereunder shall terminate upon Executive’s death or Disability. Upon termination
of Executive’s employment hereunder due to death or Disability, Executive or Executive’s legal representative or estate
(as the case may be) shall be entitled to receive (i) the Accrued Rights, plus (ii) an amount equal to a pro-rated portion of the
Annual Bonus Executive otherwise would have been paid for the fiscal year in which such termination of employment occurs, payable
when the Annual Bonus would otherwise have been paid to Executive pursuant to Section 3.2, based upon (a) actual performance for
such fiscal year, as determined at the end of such fiscal year and (b) the percentage of such fiscal year that shall have elapsed
through the date of Executive’s termination of employment, plus (iii) provided that Executive or Executive’s legal
representative or estate (as the case may be) first executes and returns to the Company (and does not revoke within any applicable
waiting period relevant thereto) a release of all claims arising out of or relating to this Agreement or Executive’s employment
by the Company or any Subsidiary (other than any claims for indemnification to which Executive may be entitled as a result of his
serving as an officer or Director of the Company or any Subsidiary) that is in form and substance reasonable satisfactory to the
Company:

 

(a)           an
amount, payable in a lump sum without discount 30 days after the date of termination as a result of Executive’s death or
Disability (subject to Section 6.20) equal to two (2) times the sum of Executive’s (i) annual Base Salary at the time of
termination and (ii) the average Annual Bonus actually earned and paid with respect to the last three full calendar years of the
Term completed prior to the date of termination. In the event that there are less than three full calendar years of the Term completed
by the date of termination, such average shall be based on the average Annual Bonus(es) actually earned and paid (or, if no Annual
Bonus has been earned or paid by such termination date, the amount of the maximum Target Bonus Amount for the year of termination
shall replace the average Annual Bonus in clause (ii) above) during the Term through the date of termination. In addition, any
calculation pursuant to clause (ii) above will be based only on Annual Bonus amounts (or Target Bonus Amounts, as applicable) for
Executive in Executive’s employment capacity at the time of termination (i.e., CIO or CEO, as applicable) without reference
to amounts earned and paid with respect to any prior capacity Executive served for the Company.

 

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(b)           continued
medical benefits for Executive, Executive’s spouse and Executive’s eligible dependents, who at the time of Executive’s
termination are enrolled in the Company’s benefits plan provided for a period of twelve (12) months following the Executive’s
termination of employment. Such benefits shall be substantially identical to benefits maintained for other senior executives of
the Company, and shall be contingent upon Executive’s eligible dependents continuing to fund any applicable “employee
portion” of any premiums of other co-pay or employee funded amounts. Executive acknowledges that such benefit continuation
is intended, and shall be deemed, to satisfy the obligations of the Company and any of its subsidiaries and affiliates to provide
continuation of benefits under COBRA for such period and that the Company may satisfy such obligation by paying any applicable
COBRA premiums or causing such premiums to be paid. Executive’s entitlement to benefits pursuant to this Section 4.3 (b)
shall cease if, during such period, Executive is employed by or otherwise is rendering services to a third party for which Executive
is entitled to receive medical benefits.

 

(c)           In
the event of a termination of employment pursuant to this Section 4.3, each grant made to Executive pursuant to the OIP or any
similar plan that is subject to a time based vesting condition shall become vested (i) in accordance with the terms of the grant
or award, or (ii) as though such grant or award had vested in equal quarterly amounts over the applicable vesting period specified
in the grant or award, whichever results in highest number of vested securities or other rights. Executive or his estate shall
have (i) thirty days or (ii) the period specified in the grant or award whichever is greater, in which to exercise those rights;
provided that in no event shall such exercise period be extended past the date the grant or award expires by its terms.

 

4.4.           Termination
by the Company without Cause or Resignation by Executive for Good Reason. The Term and Executive’s employment hereunder
may be terminated by the Company without Cause at any time and for any reason or by Executive’s resignation for Good Reason
at any time upon ten (10) days written notice by the terminating party, although the Company may waive services during that period.
If Executive’s employment is terminated by the Company without Cause (other than by reason of death or Disability) or if
Executive resigns for Good Reason, Executive shall be entitled to receive (i) the Accrued Rights, plus (ii) an amount equal to
a pro-rated portion of the Annual Bonus Executive otherwise would have been paid for the fiscal year in which such termination
of employment occurs, payable when the Annual Bonus would otherwise have been paid to Executive pursuant to Section 3.2 based upon
(A) actual performance for such fiscal year, as determined at the end of such fiscal year and (B) the percentage of such fiscal
year that shall have elapsed through the date of Executive’s termination of employment, plus (iii) provided that Executive
first executes and returns to the Company (and does not revoke within any applicable waiting period relevant thereto) a release
of all claims arising out of or relating to this Agreement or Executive’s employment by the Company or any Subsidiary (other
than any claims for indemnification to which Executive may be entitled as a result of his serving as an officer or director of
the Company or any Subsidiary) that is in form and substance reasonably satisfactory to the Company, and subject to Executive’s
continued compliance with the provisions of Section 5 of this Agreement (to the extent expressly applicable after the Term):

 

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(a)           an
amount, payable in a lump sum without discount 30 days after the Executive’s date of termination (subject to Section 6.20),
equal to two (2) times the sum of Executive’s (i) annual Base Salary at the time of termination and (ii) the average Annual
Bonus actually earned and paid with respect to the last three full calendar years of the Term completed prior to the date of termination.
In the event that there are less than three full calendar years of the Term completed by the date of termination, such average
shall be based on the average Annual Bonus(es) actually earned and paid (or, if no Annual Bonus has been earned or paid by such
termination date, the amount of the maximum Target Bonus Amount for the year of termination shall replace the average Annual Bonus
in clause (ii) above) during the Term through the date of termination. In addition, any calculation pursuant to clause (ii) above
will be based only on Annual Bonus amounts (or Target Bonus Amounts, as applicable) for Executive in Executive’s employment
capacity at the time of termination (i.e., CIO or CEO, as applicable) without reference to amounts earned and paid with respect
to any prior capacity Executive served for the Company.

 

(b)           continued
medical benefits for Executive, Executive’s spouse and Executive’s eligible dependents, who at the time of Executive’s
termination are enrolled in the Company’s benefits plans, for a period of twenty-four (24) months following Executive’s
termination of employment. Such benefits shall be substantially identical to the benefits maintained for other senior executives
of the Company, and shall be contingent upon Executive or the Executive’s eligible dependents continuing to fund any applicable
“employee portion” of any premiums or other co-pay or employee-funded amounts. Executive acknowledges that such benefit
continuation is intended, and shall be deemed, to satisfy the obligations of the Company and any of its subsidiaries and affiliates
to provide continuation of benefits under COBRA for such period and that the Company may satisfy such obligation by paying any
applicable COBRA premiums or causing such premiums to be paid. Executive’s entitlement to benefits pursuant to this Section
4.4(b) shall cease if, during such period, Executive is employed by or otherwise is rendering services to a third party for which
Executive is entitled to receive medical benefits.

 

(c)           In
the event of a termination of employment pursuant to this Section 4.4, each grant made to Executive pursuant to the OIP or any
similar plan that is subject to a time based vesting condition shall become 100% vested. Executive shall have (i) thirty days or
(ii) the period specified in the grant or award whichever is greater, in which to exercise those rights; provided that in no event
shall such exercise period be extended past the date the grant or award expires by its terms.

 

4.5.           Termination
of Employment by Expiration of the Term. If the Company notifies Executive that it is not renewing the initial Term or
any renewal period in accordance with Section 1 hereof, and thereafter the Executive terminates his or her employment with the
Company not later than the end of the initial Term or the renewal period, as applicable, then Executive shall be entitled to receive
(i) the Accrued Rights, plus (ii) an amount equal to a pro-rated portion of the Annual Bonus that Executive otherwise would have
been paid for the fiscal year in which such termination of employment occurs, payable when the Annual Bonus would otherwise have
been paid to Executive pursuant to Section 3.2, based upon (a) actual performance for such fiscal year, as determined at the end
of such fiscal year and (b) the percentage of such fiscal year that shall have elapsed through the date of Executive’s termination
of employment, plus (iii) provided that Executive first executes and returns to the Company (and does not revoke within any applicable
waiting period relevant thereto) a release of all claims arising out of or relating to the Agreement or Executive’s employment
by the Company or any Subsidiary (other than any claims for indemnification to which Executive may be entitled as a result of his
serving as an officer or director of the Company or any Subsidiary) that is in form and substance reasonable satisfactory to the
Company, and subject to Executive’s continued compliance with the provisions of Section 5 of this Agreement (to the extent
expressly applicable after the Term):

 

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(a)           an
amount, payable in a lump sum without discount 30 days after the Executive’s date of termination (subject to Section 6.20),
equal to two (2) times the sum of Executive’s (i) annual Base Salary at the time of termination and (ii) the average Annual
Bonus actually earned and paid with respect to the last three full calendar years of the Term completed prior to the date of termination.
In the event that there are less than three full calendar years of the Term completed by the date of termination, such average
shall be based on the average Annual Bonus(es) actually earned and paid (or, if no Annual Bonus has been earned or paid by such
termination date, the amount of the maximum Target Bonus Amount for the year of termination shall replace the average Annual Bonus
in clause (ii) above) during the Term through the date of termination. In addition, any calculation pursuant to clause (ii) above
will be based only on Annual Bonus amounts (or Target Bonus Amounts, as applicable) for Executive in Executive’s employment
capacity at the time of termination (i.e., CIO or CEO, as applicable) without reference to amounts earned and paid with respect
to any prior capacity Executive served for the Company.

 

(b)           continued
medical benefits for Executive, Executive’s spouse and Executive’s eligible dependents, who at the time of Executive’s
termination are enrolled in Company’s benefits plans provided for a period of twelve (12) months following Executives termination
of employment. Such benefits shall be substantially identical to the benefits maintained for other senior executives of the Company,
and shall be contingent upon Executive or Executive’s eligible dependents continuing to fund any applicable “employee
portion” of any premiums or other co-pay or employee funded amounts. Executive acknowledges that such benefit continuation
is intended, and shall be deemed, to satisfy the obligations of the Company and any of its subsidiaries and affiliates to provide
continuation of benefits under COBRA for such period and the Company may satisfy such obligation by paying any applicable COBRA
premiums or causing such premiums to be paid. Executive’s entitlement to benefits pursuant to this Section 4.5 (b) shall
cease if, during such period, Executive is employed by or otherwise is rendering services to a third party for which Executive
is entitled to receive medical benefits.

 

(c)           If
Executive notifies the Company that he is not renewing the initial Term or any renewal period not for Good Reason in accordance
with Section 1 and this Section 4.5 hereof and, thereafter, Executive’s employment with the Company terminates as a result
of the expiration of the Term, then Executive shall not be entitled to any severance pay or benefits under Section 4 hereof.

 

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4.6.           Notice
of Termination. Any purported termination of employment by the Company or by Executive (other than due to Executive’s
death) shall be communicated by written notice to the other party, which indicates the specific termination provision in this Agreement
relied upon and sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of employment
under the provision so indicated and the date of employment termination.

 

4.7.           Employee
Termination and Board/Committee/Officer Resignation. Upon termination of Executive’s employment for any reason, Executive’s
employment with each of the Company and each Subsidiary shall be terminated and Executive shall be deemed to resign, as of the
date of such termination and to the extent applicable, from the boards of directors (and any committees thereof) of the Company
and any Subsidiary and affiliates and as an officer of the Company and any Subsidiary. Executive shall confirm such resignation(s)
in writing to the Company.

 

4.8.           Excess
Parachute Payments.

 

(a)           In
the event that it shall be determined, based upon the advice of the independent public accountants for the Company (the “Accountants”),
that any payment, benefit or distribution by the Company or any of its subsidiaries or affiliates (a “Payment”) constitute
“parachute payments” under Section 280G(b)(2) of the Code, as amended, then, if the aggregate present value of all
such Payments (collectively, the “Parachute Amount”) exceeds 2.99 times the Executive’s “base amount”,
as defined in Section 2800(b)(3) of the Code (the “Executive Base Amount”), the amounts constituting “parachute
payments” which would otherwise be payable to or for the benefit of Executive shall be reduced to the extent necessary so
that the Parachute Amount is equal to 2.99 times the Executive Base Amount (the “Reduced Amount”); provided that such
amounts shall not be so reduced if the Executive determines, based upon the advice of the Accountants, that without such reduction
Executive would be entitled to receive and retain, on a net after tax basis (including, without limitation, any excise taxes payable
under Section 4999 of the Code), an amount which is greater than the amount, on a net after tax basis, that the Executive would
be entitled to retain upon his receipt of the Reduced Amount.

 

(b)           If
the determination made pursuant to clause (a) of this Section 4.8 results in a reduction of the Payments, such Payments shall be
reduced in the order that would provide the Executive with the largest amount of after-tax proceeds (with such order determined
by the Accountants in a manner that is both consistent with, and avoids imposition of excise taxes under, Code Sections 280G and
409A). The Executive shall at any time have the unilateral right to forfeit any equity award in whole or in part, except to the
extent such forfeiture would result in an impermissible substitution under Code Section 409A.

 

(c)           As
a result of the uncertainty in the application of Section 280G of the Code at the time of a determination hereunder, it is possible
that payments will be made by the Company which should not have been made under clause (a) of this Section 4.8 (“Overpayment”)
or that additional payments which are not made by the Company pursuant to clause (a) of this Section 4.8 should have been made
(“Underpayment”). In the event that there is a final determination by the Internal Revenue Service, or a final determination
by a court of competent jurisdiction, that an Overpayment has been made, any such Overpayment shall be repaid by Executive to the
Company together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code. In the event that
there is a final determination by the Internal Revenue Service, a final determination by a court of competent jurisdiction or a
change in the provisions of the Code or regulations pursuant to which an Underpayment arises, any such Underpayment shall be promptly
paid by the Company to or for the benefit of Executive, together with interest at the applicable Federal rate provided for in Section
7872(f)(2) of the Code.

 

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		5.	Covenants.

 

5.1.           Confidentiality.

 

(a)           For
purposes of this Agreement, “Confidential Information” means confidential information relating to the business
of the Company or its Subsidiaries that (i) has been made known to Executive through his relationship with the Company or its Subsidiaries,
(ii) has value to the Company or its Subsidiaries and (iii) is not generally known to the public. Confidential Information includes,
without limitation, information relating to business strategies, investment and disposition strategies, information regarding current
or prospective deals and transactions, terms of transaction documents (including but not limited to purchase and sale agreements,
operating agreements, lease agreements and employment agreements), financial information, client information, research activities,
marketing plans and strategies, and non-public personnel information, regardless of whether such information is marked “confidential.”
Confidential Information includes trade secrets (as defined under applicable law) as well as information that does not rise to
the level of a trade secret, and includes information that has been entrusted to the Company by a third party under an obligation
of confidentiality. Confidential Information does not include any information that has been voluntarily disclosed to the public
by the Company or its Subsidiaries (except where such public disclosure has been made by Executive without authorization) or that
has been independently developed and disclosed by others, or that otherwise enters the public domain through lawful means.

 

(b)           Executive
acknowledges that, in his employment hereunder, he will occupy a position of trust and confidence with the Company and its Subsidiaries.
Executive agrees that Executive shall not, except (i) as may be required to perform his duties hereunder, (ii) as provided in Section
6.19 or as otherwise required by applicable law or (iii) with the prior written consent of the Company, use, disclose or disseminate
any Confidential Information. This provision shall be in addition to all requirements of applicable law with respect to maintaining
the secrecy and confidentiality of confidential information and trade secrets, and Executive’s obligations hereunder will
continue for so long as the information in question continues to constitute Confidential Information.

 

5.2.           Non-solicitation.

 

(a)           During
the Executive’s employment with the Company and a period of one-year following Executive’s termination for any reason,
(the “Restricted Period”), the Executive shall not, except on behalf of the Company or one of its Subsidiaries or with
the Company’s prior written consent, directly or by assisting others, (i) solicit or encourage to leave the employment or
other service of the Company or any of its Subsidiaries, any Consultant or managerial-level employee of the Company or its Subsidiaries,
or (ii) solicit for employment (on behalf of the Executive or any other person or entity) any former Consultant or former managerial-level
employee of the Company or its Subsidiaries if that person has left the employment of or discontinued providing services to the
Company or any of its Subsidiaries within the then prior one-year period.

 

    	 	10	 

     

    

 

(b)           During
the Restricted Period, the Executive will not, whether for his own account or for the account of any other person or entity, intentionally
interfere with the Company’s or any of its Subsidiaries’ relationship with, or, directly or by assisting others, endeavor
to entice away from the Company or any of its Subsidiaries, any existing or actively sought tenant, co-investor, co-developer,
joint venturer or other customer (together, “Customer”) of the Company or any of its Subsidiaries, and with whom Executive
had Material Contact during the last twelve (12) months of the Executive’s employment with the Company.

 

(c)           For
purposes of this Agreement, (x) Consultant means an independent contractor who provides managerial-level services and who performs
(or in the last year has performed) a substantial portion of his or her services for the Company or a Subsidiary, and (y) Material
Contact means contact between Executive and each Customer or potential Customer (i) with whom Executive dealt on behalf of the
Company or its Subsidiaries, (ii) whose dealings with the Company or its Subsidiaries were coordinated or supervised by Executive,
(iii) about whom Executive obtained Confidential Information in the ordinary course of business as a result of Executive’s
association with the Company or its Subsidiaries, or (iv) who receives products or services authorized by the Company or its Subsidiaries,
the sale or possession of which results or resulted in possible compensation, commissions, or earnings for Executive.

 

5.3.           Non-competition.
During the Restricted Period, unless Employee has obtained the Board’s prior written approval, Executive shall not, directly
or by assisting others, render executive services which are the same or substantially similar to the services which Executive provided
to the Company during the last twelve (12) months of Executive’s employment by the Company, to any person or entity engaged
in a Competing Business that has a Concentrated Holding in a submarket in which the Company also has a Concentrated Holding as
of the date on which Executive ceases to be employed by the Company. “Competing Business” shall mean the business of
owning or managing commercial office buildings. “Concentrated Holding” shall mean the ownership of both two or more
properties and 500,000 square feet of office space in a particular submarket.

 

5.4.           Company
Policies. During the Term, Executive shall also be subject to and shall abide by all written reasonable policies and procedures
of the Company provided to him, including regarding the protection of confidential information and intellectual property and potential
conflicts of interest, except to the extent that such policies and procedures conflict with the other provisions of this Agreement,
in which case this Agreement shall control. Executive acknowledges that the Company may amend any such policies and guidelines
from, time to time, and that Executive remains at all times bound by their most current version to the extent made known to him
and reasonable in scope.

 

    	 	11	 

     

    

 

5.5.           Intellectual
Property. As between Executive and the Company, the Company shall be the sole owner of all the products and proceeds of
Executive’s services hereunder including, without limitation, all inventions, innovations, improvements, technical information,
systems, software developments, methods, designs, formulas, analyses, drawings, reports, service marks, trademarks, trade names,
logos and all similar or related information (whether patentable or unpatentable) that relate to the Company’s actual business,
research and development or existing products or services and that were conceived, developed or made by Executive (whether or not
during usual business hours or on the premises of the Company and whether or not alone or in conjunction with any other person)
during Executive’s employment with the Company, together with all patent applications, letters patent, trademarks, trade
names and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the
foregoing (collectively referred to as “Work Product”). Executive hereby assigns to the Company all of Executive’s
right, title and interest in and to any and all such Work Product, and Executive agrees to perform all actions reasonably requested
by the Company to establish and confirm the Company’s ownership of such Work Product, whether during or after the Term, without
any additional compensation.

 

5.6.           General;
Continuing Effect of Section 5. Executive and the Company intend that: (i) this Section 5 concerning (among other things)
the exclusive services of Executive to the Company and/or its Subsidiaries shall be construed as a series of separate covenants;
(ii) if any portion of the restrictions set forth in this Section 5 should, for any reason whatsoever, be declared invalid by an
arbitrator or a court of competent jurisdiction, the validity or enforceability of the remainder of such restrictions shall not
thereby be adversely affected; and (iii) Executive declares that the territorial, time and other limitations set forth in this
Section 5 are reasonable and properly required for the adequate protection of the business of the Company and/or its Subsidiaries.
In the event that any such limitation is deemed to be unreasonable by an arbitrator or a court of competent jurisdiction, Executive
agrees to the reduction which such arbitrator or court shall have deemed reasonable. All of the provisions of this Section 5 are
in addition to any other written agreements on the subjects covered herein that Executive may have with the Company and/or any
of its Subsidiaries and are not meant to and do not excuse any additional obligations that Executive may have under such agreements.

 

5.7.           Specific
Performance. Executive acknowledges and agrees that the confidential information, non-competition, non-solicitation, intellectual
property rights and other rights of the Company referred to in Section 5 of this Agreement are each of substantial value to the
Company and/or its Subsidiaries and that any breach of Section 5 by Executive would cause irreparable harm to the Company and/or
its Subsidiaries, for which the Company and/or its Subsidiaries would have no adequate remedy at law. Therefore, in addition to
any other remedies that may be available to the Company and/or any of its Subsidiaries under this Agreement or otherwise, the Company
and/or its Subsidiaries shall be entitled to obtain temporary restraining orders, preliminary and permanent injunctions and/or
other equitable relief to specifically enforce Executive’s duties and obligations under this Agreement, or to enjoin any
breach of this Agreement, without the need to post a bond or other security and without the need to demonstrate special damages.

 

		6.	Other Provisions.

 

6.1.           Severability.
Any provision of this Agreement which is deemed invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction
and subject to this paragraph be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting
in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid,
illegal, or unenforceable in any other jurisdiction. If any covenant should be deemed invalid, illegal or unenforceable because
its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum
extent necessary to render the modified covenant valid, legal and enforceable.

 

    	 	12	 

     

    

 

6.2.           Construction.
The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties, each
afforded representation by legal counsel. Each and every provision of this Agreement shall be construed as though both parties
participated equally in the drafting of the same, and any rule of construction that a document shall be construed against the drafting
party shall not be applicable to this Agreement.

 

6.3.           Arbitration.
Except as necessary for the Company and its Subsidiaries, affiliates, successors or assigns or Executive to specifically enforce
or enjoin a breach of this Agreement (to the extent such remedies are otherwise available), the parties agree that any and all
disputes that may arise in connection with, arising out of or relating to this Agreement, or any dispute that relates in any way,
in whole or in part, to Executive’s employment by the Company or any Subsidiary, the termination of such employment or any
other dispute by and between the parties or their subsidiaries, affiliates, successors or assigns related thereto, shall be submitted
to binding arbitration in Atlanta, Georgia according to Georgia law and the rules and procedures of the American Arbitration Association.
The parties agree that each party shall bear its or his own expenses incurred in connection with any such dispute.

 

6.4.           Notices.
Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally, by nationally-recognized
overnight courier service or sent by certified, registered or express mail, postage prepaid. Any such notice shall be deemed given
when so delivered personally, when delivered by nationally-recognized overnight courier service or, if mailed, five days after
the date of deposit in the United States mails as follows:

 

If to the
Company, to:

 

Piedmont
Office Realty Trust, Inc.

5565 Glenridge
Connector, Suite 450

Atlanta,
GA 30342

Attention:
Chairman of the Board

 

with a copy
to:

 

King &
Spalding

1180 Peachtree
Street

Atlanta,
Georgia 30309

Attention:
Keith Townsend

 

 

If to the
Executive, to:

 

C. Brent
Smith

at the address
set forth on the signature page hereof

 

Any such person may by notice given in
accordance with this Section 6.4 to the other parties hereto designate another address or person for receipt by such person of
notices hereunder.

 

    	 	13	 

     

    

 

6.5.           Entire
Agreement. This Agreement contains the entire agreement between the parties and their predecessors with respect to the
subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto.

 

6.6.           Waivers
and Amendments. Except as set forth in Sections 5.6 and 6.1, this Agreement may be amended, superseded, canceled, renewed
or extended, and the terms hereof may be waived, only by a written instrument signed by the parties or, in the case of a waiver,
by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or privilege nor any single
or partial exercise of any such right, power or privilege, preclude any other or further exercise thereof or the exercise of any
other such right, power or privilege.

 

6.7.           GOVERNING
LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA WITHOUT REGARD
TO ANY PRINCIPLES OF CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF
GEORGIA. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL
BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY TRANSACTIONS CONTEMPLATED HEREBY.

 

6.8.           Assignment.
This Agreement, and the Executive’s rights and obligations hereunder, may not be assigned by the Executive; any purported
assignment by the Executive in violation hereof shall be null and void. This Agreement, and the Company’s rights and obligations
hereunder, may not be assigned by the Company except that the Company may assign its rights and obligations to any Subsidiary of
the Company, provided that any such assignment shall not relieve the Company of any obligations hereunder that are not performed
by such Subsidiary; any purported assignment by the Company in violation hereof shall be null and void. Notwithstanding the foregoing,
in the event of any sale, transfer or other disposition of all or substantially all of the Company’s assets or business,
whether by merger, consolidation or otherwise, the Company may assign this Agreement and its rights hereunder to a successor in
interest to substantially all of the business operations of the Company. It is anticipated that the Executive’s employer
of record and salary and bonus payor may be a Subsidiary, but in that case the Company and such Subsidiary will be jointly and
severally liable for all amounts payable to Executive hereunder.

 

6.9.           Withholding.
The Company shall be entitled to withhold from any payments or deemed payments any amount of tax withholding it determines to be
required by law.

 

    	 	14	 

     

    

 

6.10.          Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, permitted
assigns, heirs, executors and legal representatives.

 

6.11.          Counterparts.
This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall
be an original but all such counterparts together shall constitute one and the same instrument. Each counterpart may consist of
two copies hereof each signed by one of the parties hereto.

 

6.12.          Survival.
Anything contained in this Agreement to the contrary notwithstanding, the provisions of Sections 3.7, 4, 5, and 6 shall survive
termination of this Agreement and any termination of Executive’s employment hereunder.

 

6.13.          Existing
Agreements. The Executive represents to the Company that he is not subject or a party to any employment or consulting agreement,
non-competition covenant or other agreement, covenant or understanding which might prohibit him from executing this Agreement or
limit his ability to fulfill his responsibilities hereunder.

 

6.14.          Set
Off. The Company’s obligation to pay Executive the amounts provided and to make the arrangements provided hereunder
shall be subject to set-off, counterclaim or recoupment of amounts owed by Executive to the Company or its Subsidiaries to the
extent permitted by applicable law; provided, however, that the Company may not exercise its right of set-off except
to the extent that the Board (with Executive recused) determines in good faith that Executive has failed to pay to the Company
or any of its Subsidiaries any amount owed to them and the amount of any such set-off shall be limited to the amount the Board
(with Executive recused) determines in good faith is owed to the Company or any of its Subsidiaries.

 

6.15.          Executive’s
Representations. Executive hereby represents to the Company that the execution and delivery of this Agreement by Executive
and the Company and the performance by Executive of Executive’s duties hereunder shall not constitute a breach of, or otherwise
contravene, the terms of any employment agreement or other agreement or policy to which Executive is a party or otherwise bound.
Executive represents and warrants that he is not subject to any employment agreement, nondisclosure agreement, common law nondisclosure
obligation, fiduciary duty, noncompetition agreement, restrictive covenant or any other obligation to any former employer or to
any other person or entity in any way relating to the right or ability of Executive to be employed by and/or perform services for
the Company and its Subsidiaries. Executive further represents and warrants that he has not brought to or disclosed to the Company
or to its Subsidiaries, and covenants that he will not bring to or disclose to the Company or to its Subsidiaries or use in connection
with his employment with the Company, any trade secrets or proprietary information from any of his prior employers or from any
other person or entity.

 

    	 	15	 

     

    

 

6.16.         Cooperation
in Third-Party Disputes. During the Term and for a period of two years thereafter, at the request of the Company, Executive
shall cooperate with the Company and/or its Subsidiaries and each of their respective attorneys or other legal representatives
(collectively referred to as “Attorneys”) in connection with any claim, litigation, or judicial or arbitral proceeding
which is now pending or may hereinafter be brought against the Company and/or any of its Subsidiaries or affiliates by any third
party. Executive’s duty of cooperation shall include, but shall not be limited to, (a) meeting with the Company’s and/or
its Subsidiaries’ Attorneys by telephone or in person at mutually convenient times and places in order to state truthfully
Executive’s knowledge of the matters at issue and recollection of events; (b) appearing at the Company’s and/or its
Subsidiaries’ and/or their Attorneys’ request (and, to the extent possible, at a time convenient to Executive that
does not conflict with the needs or requirements of Executive’s then-current employer or personal commitments) as a witness
at depositions, trials or other proceedings, without the necessity of a subpoena, in order to state truthfully Executive’s
knowledge of the matters at issue; and (c) signing at the Company’s request declarations or affidavits that truthfully state
the matters of which Executive has knowledge. The Company shall promptly reimburse Executive for Executive’s actual and reasonable
travel or other out-of-pocket expenses (including reasonable attorneys’ fees) that Executive may incur in cooperating with
the Company and/or its Subsidiaries under this Section 6.16.

 

6.17.         Compensation
Committee. All discretionary and other actions and authority granted to the Compensation Committee by this Agreement may
be taken by the full Board or any other committee of the Board it designates if the Board does not have a Compensation Committee.

 

6.18.         Indemnification.
Executive shall be entitled to the same rights to indemnification in connection with his service, if any, as a director of the
Company or any of its Subsidiaries as the other Board members and the same rights to indemnification in connection with his service
as an executive officer of the Company or any of its Subsidiaries as the other executive officers and such indemnification rights
shall survive the termination of his employment hereunder. Executive’s rights to indemnification specifically include all
such rights arising pursuant to (i) the Company’s Articles of Incorporation and Bylaws; (ii) any written agreements between
the Company and its directors or officers; (iii) insurance policies (including any extended reporting periods available to directors
thereunder) providing coverage to the Company’s directors, officers and employees, including any directors and officers indemnification
insurance.

 

6.19.         Permitted
Disclosures. Nothing contained in this Agreement limits Executive’s ability to file a charge or complaint with the
Equal Employment Opportunity Commission or any other federal, state or local governmental agency or commission (collectively, “Government
Agencies”), or prevents Executive from providing truthful testimony in response to a lawfully issued subpoena or court order.
Further, this Agreement does not limit Executive’s ability to communicate with any Government Agencies or otherwise participate
in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information,
without notice to the Company. Executive is hereby notified that under the Defend Trade Secrets Act: (a) no individual will be
held criminally or civilly liable under federal or state trade secret law for disclosure of a trade secret (as defined in the Economic
Espionage Act) that is: (i) made in confidence to a federal, state, or local government official, either directly or indirectly,
or to an attorney, and made solely for the purpose of reporting or investigating a suspected violation of law; or (ii) made in
a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made
public; and (b) an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law
may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if
the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted
by court order.

 

    	 	16	 

     

    

 

6.20.         Section
409A.

 

(a)           The
intent of the parties is that payments and benefits under this Agreement comply with or be exempt from Section 409A of the Code
and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and the Company shall have
complete discretion to interpret and construe this Agreement and any associated documents in any manner that establishes an exemption
from (or compliance with) the requirements of Code Section 409A. If for any reason, such as imprecision in drafting any provision
of this Agreement (or of any award of compensation, including, without limitation, equity compensation or benefits) does not accurately
reflect its intended establishment of an exemption from (or compliance with) Code Section 409A, as demonstrated by consistent interpretations
or other evidence of intent, such provision shall be considered ambiguous as to its exemption from (or compliance with) Code Section
409A and shall be interpreted by the Company in a manner consistent with such intent, as determined in the discretion of the Company.

 

(b)           A
termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the
payment of any amounts or benefits that are considered nonqualified deferred compensation under Code Section 409A upon or following
a termination of employment unless such termination is also a “separation from service” within the meaning of Code
Section 409A, and, for purposes of any such provision of this Agreement, references to a “termination,” “termination
of employment” or like terms shall mean “such a separation from service.” The determination of whether and when
a separation from service has occurred for proposes of this Agreement shall be made in accordance with the presumptions set forth
in Section 1.409A-1(h) of the Treasury Regulations.

 

(c)           
Any provision of this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service,
the Company determines that the Executive is a “specified employee,” within the meaning of Code Section 409A, then
to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of such separation
from service would be considered nonqualified deferred compensation under Code Section 409A such payment or benefit shall be paid
or provided at the date which is the earlier of (i) six (6) months and one day after such separation from service and (ii) the
date of the Executive’s death (the “Delay Period”). Upon the expiration of the Delay Period, all payments and
benefits delayed pursuant to this Section 6.19 (whether they would have otherwise been payable in a single sum or in installments
in the absence of such delay) shall be paid or provided to the Executive in a lump-sum, and any remaining payments and benefits
due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

 

    	 	17	 

     

    

 

(d)           Any
reimbursements and in-kind benefits provided under this Agreement that constitute deferred compensation within the meaning of Code
Section 409A shall be made or provided in accordance with the requirements of Code Section 409A, including, without limitation,
that (i) in no event shall any fees, expenses or other amounts eligible to be reimbursed by the Company under this Agreement be
paid later than the last day of the calendar year next following the calendar year in which the applicable fees, expenses or other
amounts were incurred; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits that the Company is obligated
to pay or provide, in any given calendar year shall not affect the expenses that the Company is obligated to reimburse, or the
in-kind benefits that the Company is obligated to pay or provide, in any other calendar year; (iii) the Executive’s right
to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit;
and (iv) in no event shall the Company’s obligations to make such reimbursements or to provide such in-kind benefits apply
later than the Executive’s remaining lifetime (or if longer, through the second (2nd) anniversary of the Executive’s
termination of employment).

 

(e)           For
purposes of Code Section 409A, the Executive’s right to receive any installment payments shall be treated as a right to receive
a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to
a number of days (for example, “payment shall be made within thirty (30) days following the date of termination”),
the actual date of payment within the specified period shall be within the sole discretion of the Company. In no event may the
Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement, to the extent such
payment is subject to Code Section 409A.

 

(f)           The
Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions
of this Agreement are determined to constitute deferred compensation subject to Code Section 409A but do not satisfy an exemption
from, or the conditions of, Code Section 409A.

 

6.21.         Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

[Signature Page Follows]

    	 	18	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have signed their names as of the day and year first above written.

 

	 	PIEDMONT OFFICE REALTY TRUST, INC.
	 	 
	 	 
	 	By:	/s/ Frank McDowell	 
	 	Name:	Frank McDowell	 
	 	Title:	Chairman of the Board	 
	 	 
	 	 
	 	C. BRENT SMITH
	 	 
	 	/s/ C. Brent Smith	 
	 	Address: [Redacted Address]
	 	

 

 

 

 

 

 

 

 

 

 

    	 	19EX-4.1

 Exhibit 4.1 

AMENDED AND RESTATED GUARANTY 

Dated as of March 19, 2019 

between 
 PETRÓLEO
BRASILEIRO S.A.—PETROBRAS, 
 as Guarantor, 

and 
 THE BANK OF NEW YORK MELLON,
as 
 Trustee for the Noteholders 

Referred to Herein 

 Table of Contents 

 

							
	 SECTION 1.
	 	Definitions	  	 	2	 
			
	 SECTION 2.
	 	Guaranty	  	 	5	 
			
	 SECTION 3.
	 	Guaranty Absolute	  	 	6	 
			
	 SECTION 4.
	 	Independent Obligation	  	 	8	 
			
	 SECTION 5.
	 	Waivers and Acknowledgments	  	 	8	 
			
	 SECTION 6.
	 	Claims Against the Issuer	  	 	9	 
			
	 SECTION 7.
	 	Covenants	  	 	9	 
			
	 SECTION 8.
	 	Amendments, Etc.	  	 	13	 
			
	 SECTION 9.
	 	Indemnity	  	 	13	 
			
	 SECTION 10.
	 	Notices, Etc.	  	 	13	 
			
	 SECTION 11.
	 	Survival	  	 	13	 
			
	 SECTION 12.
	 	No Waiver; Remedies	  	 	13	 
			
	 SECTION 13.
	 	Continuing Agreement; Assignment of Rights Under the Indenture and the Notes	  	 	14	 
			
	 SECTION 14.
	 	Currency Rate Indemnity	  	 	14	 
			
	 SECTION 15.
	 	Governing Law; Jurisdiction; Waiver of Immunity, Etc.	  	 	15	 
			
	 SECTION 16.
	 	Execution in Counterparts	  	 	16	 
			
	 SECTION 17.
	 	Entire Agreement	  	 	16	 
			
	 SECTION 18.
	 	The Trustee	  	 	16	 

 AMENDED AND RESTATED GUARANTY 

AMENDED AND RESTATED GUARANTY (this “Guaranty”), dated as of March 19, 2019 between PETRÓLEO BRASILEIRO
S.A.—PETROBRAS (the “Guarantor”), a sociedade de economia mista organized and existing under the laws of the Federative Republic of Brazil (“Brazil”), and THE BANK OF NEW YORK MELLON, a New York banking
corporation, as trustee under the Indenture (as defined below) (the “Trustee”). 
 WITNESSETH: 

WHEREAS, Petrobras Global Finance B.V., a private company incorporated with limited liability under the laws of The Netherlands and a
wholly-owned Subsidiary of the Guarantor (the “Issuer”), has entered into an Indenture dated as of August 29, 2012 (the “Original Indenture”) with the Trustee, as supplemented by the Amended and Restated
Twenty-Fifth Supplemental Indenture among the Issuer, the Guarantor and the Trustee, dated as of the date hereof (the “Amended and Restated Twenty-Fifth Supplemental Indenture”). The Original Indenture, as supplemented by the
Amended and Restated Twenty-Fifth Supplemental Indenture and as amended or supplemented from time to time with respect to the Notes, is hereinafter referred to as the “Indenture”; 

WHEREAS, the Issuer has duly authorized the issuance of its notes in such principal amount or amounts as may from time to time be authorized
in accordance with the Indenture and is, on the date hereof, issuing U.S.$750,000,000 aggregate principal amount of its 5.750% Global Notes due 2029 under the Indenture (the “Reopening Notes”); 

WHEREAS, the Issuer, the Guarantor and the Trustee intend the Reopening Notes to be consolidated, form a single series and be fully fungible
with the Company’s existing 5.750% Global Notes due 2029 originally issued on February 1, 2018 under the Original Indenture as supplemented by the Twenty-Fifth Supplemental Indenture, dated as of February 1, 2018, by and among the
Issuer, the Guarantor and the Trustee (the “Twenty-Fifth Supplemental Indenture”), in the aggregate principal amount of U.S.$2,000,000,000 (the “Original Notes” and, together with the Reopening Notes, the
“Notes”). 
 WHEREAS, the Guarantor is willing to enter into this Guaranty in order to provide the holders of the Notes
(the “Noteholders”) with an irrevocable and unconditional guaranty that, if the Issuer shall fail to make any required payments of principal, interest or other amounts due in respect of the Notes and the Indenture, the Guarantor
will pay any such amounts whether at stated maturity, or earlier or later by acceleration or otherwise; 
 WHEREAS, the Guarantor agrees
that it will derive substantial direct and indirect benefits from the issuance of the Notes by the Issuer; 
 WHEREAS, it is a condition
precedent to the issuance of the Reopening Notes that the Guarantor shall have executed this Guaranty. 
 WHEREAS, each of the parties
hereto is entering into this Guaranty for the benefit of the other party and for the equal and ratable benefit of the Noteholders. 
  

 NOW, THEREFORE, the Guarantor and the Trustee hereby agree as follows: 

SECTION 1. Definitions. (a) All capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the
Original Indenture, as supplemented and amended by the Amended and Restated Twenty-Fifth Supplemental Indenture. All such definitions shall be read in a manner consistent with the terms of this Guaranty. 

(b) As used herein, the following capitalized terms shall have the following meanings: 

“Affiliate” with respect to any Person, means any other Person that, directly or indirectly, controls, is controlled by or is
under common control with such Person; it being understood that for purposes of this definition, the term “control” (including the terms “controlling,” “controlled by” and “under common
control with”) of a Person shall mean the possession, direct or indirect, of the power to vote 25% or more of the equity or similar voting interests of such Person or to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities, by contract or otherwise. 
 “Authorized Representative” of the
Guarantor or any other Person means the person or persons authorized to act on behalf of such entity by its chief executive officer, president, chief operating officer, chief financial officer or any vice president or its Board of Directors or any
other governing body of such entity. 
 “Board of Directors” when used with respect to a corporation, means either the
board of directors of such corporation or any committee of that board duly authorized to act for it, and when used with respect to a limited liability company, partnership or other entity other than a corporation, any Person or body authorized by
the organizational documents or by the voting equity owners of such entity to act for them. 
 “Denomination
Currency” has the meaning specified in Section 14(b). 
 “Guaranteed Obligations” has the meaning specified
in Section 2. 
 “Indebtedness” means any obligation (whether present or future, actual or contingent and including,
without limitation, any Guarantee) for the payment or repayment of money which has been borrowed or raised (including money raised by acceptances and all leases which, under generally accepted accounting principles in the country of incorporation of
the relevant obligor, would constitute a capital lease obligation). 
 “Judgment Currency” has the meaning specified in
Section 14(b). 
 “Material Adverse Effect” means a material adverse effect on (a) the business, operations,
assets, property, condition (financial or otherwise) or, results of operation, of the Guarantor together with its consolidated Subsidiaries, taken as a whole, (b) the validity or enforceability of this Guaranty or any other Transaction Document
or (c) the ability of the Guarantor to perform its obligations under this Guaranty or any other Transaction Document, or (d) the material rights or benefits available to the Noteholders or the Trustee, as representative of the Noteholders
under the Indenture, this Guaranty or any of the other Transaction Documents. 

  
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 “Material Subsidiary” means, as to any Person, any Subsidiary of such
Person which, on any given date of determination, accounts for more than 15% of Petrobras’ total consolidated assets, as such total assets are set forth on the most recent consolidated financial statements of Petrobras prepared in accordance
with Reporting GAAP (or if Petrobras does not prepare financial statements in Reporting GAAP, consolidated financial statements prepared in accordance with Brazilian generally accepted accounting principles). 

“Officer’s Certificate” means a certificate of an Authorized Representative of the Guarantor. 

“Opinion of Counsel” means a written opinion of counsel from any Person either expressly referred to herein or otherwise
reasonably satisfactory to the Trustee which may include, without limitation, counsel for the Guarantor, whether or not such counsel is an employee of the Guarantor. 

“Permitted Lien” means a: 

(i) Lien granted in respect of Indebtedness owed to the Brazilian government, Banco Nacional de Desenvolvimento Econômico e Social
or any official government agency or department of the government of Brazil or of any state or region thereof; 
 (ii) Lien arising by
operation of law, such as merchants’, maritime or other similar Liens arising in the Guarantor’s ordinary course of business or that of any Subsidiary or Lien in respect of taxes, assessments or other governmental charges that are not yet
delinquent or that are being contested in good faith by appropriate proceedings; 
 (iii) Lien arising from the Guarantor’s obligations
under performance bonds or surety bonds and appeal bonds or similar obligations incurred in the ordinary course of business and consistent with the Guarantor’s past practice; 

(iv) Lien arising in the ordinary course of business in connection with Indebtedness maturing not more than one year after the date on which
such Indebtedness was originally incurred and which is related to the financing of export, import or other trade transactions; 
 (v) Lien
granted upon or with respect to any assets hereafter acquired by the Guarantor or any Subsidiary to secure the acquisition costs of such assets or to secure Indebtedness incurred solely for the purpose of financing the acquisition of such assets,
including any Lien existing at the time of the acquisition of such assets as long as the maximum amount so secured shall not exceed the aggregate acquisition costs of all such assets or the aggregate Indebtedness incurred solely for the acquisition
of such assets, as the case may be; 
 (vi) Lien granted in connection with the Indebtedness of a Wholly-Owned Subsidiary owing to the
Guarantor or another Wholly-Owned Subsidiary; 
 (vii) Lien existing on any asset or on any stock of any Subsidiary prior to the acquisition
thereof by the Guarantor or any Subsidiary as long as such Lien is not created in anticipation of such acquisition; 

  
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 (viii) Lien over any Qualifying Asset relating to a project financed by, and securing
Indebtedness incurred in connection with, the Project Financing of such project by the Guarantor, any of the Guarantor’s Subsidiaries or any consortium or other venture in which the Guarantor or any Subsidiary has any ownership or other similar
interest; 
 (ix) Lien existing as of the date of the Twenty-Fifth Supplemental Indenture; 

(x) Lien resulting from the Transaction Documents; 

(xi) Lien incurred in connection with the issuance of debt or similar securities of a type comparable to those already issued by the Guarantor,
on amounts of cash or cash equivalents on deposit in any reserve or similar account to pay interest on such securities for a period of up to 24 months as required by any Rating Agency as a condition to such Rating Agency rating such securities
investment grade or as is otherwise consistent with market conditions at such time; 
 (xii) Lien granted or incurred to secure any
extension, renewal, refinancing, refunding or exchange (or successive extensions, renewals, refinancings, refundings or exchanges), in whole or in part, of or for any Indebtedness secured by a Lien referred to in paragraphs (i) through (xi)
above (but not paragraph (iv)), provided that such Lien does not extend to any other property, the principal amount of the Indebtedness secured by such Lien is not increased, and in the case of paragraphs (i), (ii), (iii) and (vii), the obligees
meet the requirements of such paragraphs and in the case of paragraph (viii), the Indebtedness is incurred in connection with a Project Financing by the Guarantor, any of the Guarantor’s Subsidiaries or any consortium or other venture in which
the Guarantor or any Subsidiary have any ownership or other similar interests; and 
 (xiii) Lien in respect of Indebtedness the principal
amount of which in the aggregate, together with all Liens not otherwise qualifying as the Guarantor’s Permitted Liens pursuant to clauses (i) through (xii) of this definition, does not exceed 20% of the Guarantor’s consolidated total
assets (as determined in accordance with Reporting GAAP) at any date as at which the Guarantor’s balance sheet is prepared and published in accordance with applicable Law. 

“Process Agent” has the meaning specified in Section 15(c). 

“Project Financing” of any project means the incurrence of Indebtedness relating to the exploration, development, expansion,
renovation, upgrade or other modification or construction of such project pursuant to which the providers of such Indebtedness or any trustee or other intermediary on their behalf or beneficiaries designated by any such provider, trustee or other
intermediary are granted security over one or more Qualifying Assets relating to such project for repayment of principal, premium and interest or any other amount in respect of such Indebtedness. 

“Qualifying Asset” in relation to any Project Financing means: 

(i) any concession, authorization or other legal right granted by any Governmental Authority to the Guarantor or any of the Guarantor’s
Subsidiaries, or any consortium or other venture in which the Guarantor or any Subsidiary has any ownership or other similar interest; 

  
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 (ii) any drilling or other rig, any drilling or production platform, pipeline, marine
vessel, vehicle or other equipment or any refinery, oil or gas field, processing plant, real property (whether leased or owned), right of way or plant or other fixtures or equipment; 

(iv) any revenues or claims which arise from the operation, failure to meet specifications, failure to complete, exploitation, sale, loss or
damage to, such concession, authorization or other legal right or such drilling or other rig, drilling or production platform, pipeline, marine vessel, vehicle or other equipment or refinery, oil or gas field, processing plant, real property, right
of way, plant or other fixtures or equipment or any contract or agreement relating to any of the foregoing or the Project Financing of any of the foregoing (including insurance policies, credit support arrangements and other similar contracts) or
any rights under any performance bond, letter of credit or similar instrument issued in connection therewith; 
 (iv) any oil, gas,
petrochemical or other hydrocarbon-based products produced or processed by such project, including any receivables or contract rights arising therefrom or relating thereto and any such product (and such receivables or contract rights) produced or
processed by other projects, fields or assets to which the lenders providing the Project Financing required, as a condition therefor, recourse as security in addition to that produced or processed by such project; and 

(v) shares or other ownership interest in, and any subordinated debt rights owing to the Guarantor by, a special purpose company formed solely
for the development of a project, and whose principal assets and business are constituted by such project and whose liabilities solely relate to such project. 

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

“Successor Company” has the meaning specified in Section 7(e)(A). 

“Termination Date” has the meaning specified in Section 6. 

“Transaction Documents” means, collectively, the Indenture, the Notes and this Guaranty. 

(c) Construction. The parties agree that items (1) through (5) of Section 1.01 of the Original Indenture shall apply to this
Guaranty, except as otherwise expressly provided or unless the context otherwise requires. 
 SECTION 2. Guaranty. (a) The
Guarantor hereby unconditionally and irrevocably guarantees the full and punctual payment when due, as a guaranty of payment and not of collection, whether at the Stated Maturity, or earlier or later by acceleration or otherwise, of all obligations
of the Issuer now or hereafter existing under the Indenture and the Notes, whether for principal, interest, make-whole premium, Additional Amounts, fees, indemnities, costs, expenses or otherwise (such obligations being the “Guaranteed
Obligations”), and the 

  
 5 

 
Guarantor agrees to pay any and all expenses (including reasonable and documented counsel fees and expenses) incurred by the Trustee or any Noteholder in enforcing any rights under this Guaranty
with respect to such Guaranteed Obligations. Without limiting the generality of the foregoing, the Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by the Issuer to the
Trustee or any Noteholder under the Indenture and the Notes but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, insolvency, reorganization or similar proceeding involving the Issuer. 

(b) In the event that the Issuer does not make payments to the Trustee of all or any portion of the Guaranteed Obligations, upon receipt of
notice of such non-payment from the Trustee, the Guarantor will make immediate payment to the Trustee of any such amount or portion of the Guaranteed Obligations owing or payable under the Indenture and the
Notes. Such notice shall specify the amount or amounts under the Indenture and the Notes that were not paid on the date that such amounts were required to be paid under the terms of the Indenture and the Notes. 

(c) The obligation of the Guarantor under this Guaranty shall be absolute and unconditional upon receipt by it of the notice contemplated
herein absent manifest error. The Guarantor shall not be relieved of its obligations hereunder unless and until the Trustee shall have indefeasibly received all amounts required to be paid by the Guarantor hereunder (and any Event of Default under
the Indenture has been cured, it being understood that the Guarantor’s obligations hereunder shall terminate following payment by the Issuer and/or the Guarantor of the entire principal, all accrued interest and all other amounts due and owing
in respect of the Notes and the Indenture. All amounts payable by the Guarantor hereunder shall be payable in U.S. dollars and in immediately available funds to the Trustee. 

All payments actually received by the Trustee pursuant to this Section 2 after 12:00 p.m. (New York time) on any Business Day will be
deemed, for purposes of this Guaranty, to have been received by the Trustee on the next succeeding Business Day. 
 SECTION 3. Guaranty
Absolute. (a) The Guarantor’s obligations under this Guaranty are absolute and unconditional regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any
Noteholder under its Notes or the Indenture. The obligations of the Guarantor under or in respect of this Guaranty are independent of the Guaranteed Obligations or any other obligations of the Issuer, the Issuer’s Subsidiaries or the
Guarantor’s Subsidiaries under or in respect of the Indenture and the Notes or any other document or agreement, and a separate action or actions may be brought and prosecuted against the Guarantor to enforce this Guaranty, irrespective of
whether any action is brought against the Issuer or whether the Issuer is joined in any such action or actions. The liability of the Guarantor under this Guaranty shall be irrevocable, absolute and unconditional irrespective of, and the Guarantor
hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to, any or all of the following: 

(i) any lack of validity or enforceability of any of the Transaction Documents; 

  
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 (ii) any provision of applicable Law or regulation purporting to prohibit
the payment by the Issuer of any amount payable by it under the Indenture and the Notes; 
 (iii) any provision of applicable
Law or regulation purporting to prohibit the payment by the Guarantor of any amount payable by it under this Guaranty; 

(iv) any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations
or any other obligations of any other person or entity under or in respect of the Transaction Documents, or any other amendment or waiver of or any consent to departure from any Transaction Document, including, without limitation, any increase in
the obligations of the Issuer under the Indenture and the Notes as a result of further issuances, any rescheduling of the Issuer’s obligations under the Notes of the Indenture or otherwise; 

(v) any taking, release or amendment or waiver of, or consent to departure from, any other guaranty or agreement similar in
function to this Guaranty, for all or any of the obligations of the Issuer under the Indenture or the Notes; 
 (vi) any
manner of sale or other disposition of any assets of any Noteholder; 
 (vii) any change, restructuring or termination of the
corporate structure or existence of the Issuer or the Guarantor or any Subsidiary thereof or any change in the name, purposes, business, capital stock (including ownership thereof) or constitutive documents of the Issuer or the Guarantor; 

(viii) any failure of the Trustee to disclose to the Guarantor any information relating to the business, condition (financial
or otherwise), operations, performance, properties or prospects of the Issuer or any of its Subsidiaries (the Guarantor hereby waiving any duty on the part of the Trustee or any Noteholders to disclose such information); 

(ix) the failure of any other person or entity to execute or deliver any other guaranty or agreement or the release or
reduction of liability of any other guarantor or surety with respect to the Indenture; 
 (x) any other circumstance
(including, without limitation, any statute of limitations) or any existence of or reliance on any representation by the Trustee or any Noteholder that might otherwise constitute a defense available to, or a discharge of, the Issuer or the Guarantor
or any other party; or 
 (xi) any claim of set-off or other right which the
Guarantor may have at any time against the Issuer or the Trustee, whether in connection with this transaction or with any unrelated transaction. 

(b) This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed
Obligations is rescinded or must otherwise be returned by any Noteholder or any other person or entity upon the insolvency, bankruptcy or reorganization of the Issuer or the Guarantor or otherwise, all as though such payment had not been made. 

  
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 SECTION 4. Independent Obligation. The obligations of the Guarantor hereunder are
independent of the Issuer’s obligations under the Notes and the Indenture. The Trustee, on behalf of the Noteholders, may neglect or forbear to enforce payment under the Indenture and the Notes, without in any way affecting or impairing the
liability of the Guarantor hereunder. The Trustee shall not be obligated to exhaust recourse or remedies against the Issuer to recover payments required to be made under the Indenture nor take any other action against the Issuer before being
entitled to payment from the Guarantor of all amounts contemplated in Section 2 hereof owed hereunder or proceed against or have resort to any balance of any deposit account or credit on the books of the Trustee in favor of the Issuer or in
favor of the Guarantor. Without limiting the generality of the foregoing, the Trustee shall have the right to bring a suit directly against the Guarantor, either prior or subsequent to or concurrently with any lawsuit against, or without bringing
suit against, the Issuer. 
 SECTION 5. Waivers and Acknowledgments. (a) The Guarantor hereby unconditionally and irrevocably
waives promptness, diligence, notice of acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this Guaranty
and any requirement that the Trustee, on behalf of the Noteholders, protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any action against the Issuer or any other Person. 

(b) The Guarantor hereby unconditionally and irrevocably waives any right to revoke this Guaranty and acknowledges that this Guaranty is
continuing in nature and applies to the Guaranteed Obligations, whether the same are existing now or in the future. 
 (c) The Guarantor
hereby unconditionally and irrevocably waives (i) any defense arising by reason of any claim or defense based upon an election of remedies by any Noteholder or the Trustee on behalf of the Noteholders that in any manner impairs, reduces,
releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of the Guarantor or other rights of the Guarantor to proceed against the Issuer or any other person or entity and
(ii) any defense based on any right of set-off or counterclaim against or in respect of the Guaranteed Obligations of the Guarantor hereunder. 

(d) The Guarantor hereby unconditionally and irrevocably waives any duty on the part of the Trustee or any Noteholder to disclose to the
Guarantor any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of the Issuer now or hereafter known by the Trustee or any Noteholder, as applicable. 

(e) The Guarantor acknowledges that it will receive substantial direct and indirect benefits from the financing arrangements contemplated by
the Transaction Documents and that the waivers set forth in this Section 5 are knowingly made in contemplation of such benefits. 

  
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 (f) The recitals contained in this Guaranty shall be taken as the statements of the Issuer
and the Guarantor, as applicable, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representation as to the validity or sufficiency of this Guaranty, of any offering materials, the Indenture or of the
Notes. 
 (g) The Guarantor unconditionally and irrevocably waives, to the fullest extent permitted under Brazilian law, any benefit it may
be entitled to under Articles 827, 834, 835, 838 and 839 of the Brazilian Civil Code, and under Article 595, caput, of the Brazilian Civil Procedure Code. 

SECTION 6. Claims Against the Issuer. The Guarantor hereby unconditionally and irrevocably agrees not to exercise any rights that it
may now have or hereafter acquire against the Issuer or any other guarantor that arise from the existence, payment, performance or enforcement of the Guarantor’s obligations under or in respect of this Guaranty or any other Transaction
Document, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification, or to participate in any claim or remedy of the Trustee, on behalf of the Noteholders, against the Issuer or any other
person, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from the Issuer or any other person, directly or indirectly, in cash or other
property or by set-off or in any other manner, payment or security on account of such claim, remedy or right, unless and until all of the Guaranteed Obligations and all other amounts payable under this
Guaranty shall have been paid in full in cash. If any amount shall be paid to the Guarantor in violation of the immediately preceding sentence at any time prior to the later of (a) the payment in full in cash of the Guaranteed Obligations and
all other amounts payable under this Guaranty and (b) the date on which all of the obligations of the Issuer under the Indenture and the Notes have been discharged in full (the later of such dates being the “Termination Date”),
such amount shall be paid over to and received and held by the Trustee in trust for the benefit of the Noteholders, shall be segregated from other property and funds of the Guarantor and shall forthwith be paid or delivered to the Trustee in the
same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of the
Indenture. If (i) the Guarantor shall make payment to any Noteholder or the Trustee, on behalf of the Noteholders, of all or any part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and all other amounts payable under
this Guaranty shall have been paid in full in cash and (iii) the Termination Date shall have occurred, then the Trustee, on behalf of the Noteholders, will, at the Guarantor’s written request and expense, execute and deliver to the
Guarantor appropriate documents, without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to the Guarantor of an interest in the Guaranteed Obligations resulting from such payment made by the
Guarantor pursuant to this Guaranty. 
 SECTION 7. Covenants. For so long as the Notes remain outstanding or any amount remains
unpaid on the Notes and the Indenture, the Guarantor will, and will cause each of its Subsidiaries, as applicable, to comply with the terms and covenants set forth below (except as otherwise provided in a duly authorized amendment to this Guaranty
as provided herein): 

  
 9 

 (a) Performance of Obligations. The Guarantor shall pay all amounts owed by it and comply
with all its other obligations under the terms of this Guaranty and the Indenture in accordance with the terms thereof. 
 (b) Maintenance of
Corporate Existence. The Guarantor will (i) maintain in effect its corporate existence and all registrations necessary therefor except as otherwise permitted by Section 7(e) and (ii) take all actions to maintain all rights,
privileges, titles to property, franchises, concessions and the like necessary or desirable in the normal conduct of its business, activities or operations; provided, however, that this Section 7(b) shall not require the Guarantor to
maintain any such right, privilege, title to property or franchise if the failure to do so does not, and will not, have a Material Adverse Effect. 

(c) Maintenance of Office or Agency. So long as any of the Notes are outstanding, the Guarantor will maintain in the Borough of Manhattan, The
City of New York, an office or agency where notices to and demands upon the Guarantor in respect of this Guaranty may be served, and the Guarantor will not change the designation of such office without prior written notice to the Trustee and
designation of a replacement office or agency in the same general location. 
 (d) Ranking. The Guarantor will ensure at all times
that its obligations under this Guaranty will constitute the general, senior, unsecured and unsubordinated obligations of the Guarantor and will rank pari passu, without any preferences among themselves, with all other present and future
senior unsecured and unsubordinated obligations of the Guarantor (other than obligations preferred by statute or by operation of law) that are not, by their terms, expressly subordinated in right of payment to the obligations of the Guarantor under
this Guaranty. 
 (e) Limitation on Consolidation, Merger, Sale or Conveyance. (i) The Guarantor will not, in one or a series of
transactions, consolidate or amalgamate with or merge into any corporation or convey, lease, spin-off or transfer substantially all of its properties, assets or revenues to any person or entity (other than a
direct or indirect Subsidiary of the Guarantor) or permit any person or entity (other than a direct or indirect Subsidiary of the Guarantor) to merge with or into it, unless: 

(A) either the Guarantor is the continuing entity or the person (the “Successor Company”) formed by such
consolidation or into which the Guarantor is merged or that acquired or leased such property or assets of the Guarantor will assume (jointly and severally with the Guarantor unless the Guarantor shall have ceased to exist as a result of such merger,
consolidation or amalgamation), by an amendment to this Guaranty (the form and substance of which shall be previously approved by the Trustee), all of the Guarantor’s obligations under this Guaranty; 

(B) the Successor Company (jointly and severally with the Guarantor unless the Guarantor shall have ceased to exist as part of
such merger, consolidation or amalgamation) agrees to indemnify each Noteholder against any tax, assessment or governmental charge thereafter imposed on such Noteholder solely as a consequence of such consolidation, merger, conveyance, transfer or
lease with respect to the payment of principal of, or interest on, the Notes pursuant to this Guaranty; 

  
 10 

 (C) immediately after giving effect to such transaction, no Event of
Default, and no Default has occurred and is continuing; and 
 (D) the Guarantor has delivered to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that such merger consolidation, sale, transfer or other conveyance or disposition and the amendment to this Guaranty comply with the terms of this Guaranty and that all conditions
precedent provided for herein and relating to such transaction have been complied with. 
 (ii) Notwithstanding anything to the contrary in
the foregoing, so long as no Default or Event of Default shall have occurred and be continuing at the time of such proposed transaction or would result therefrom and the Guarantor has delivered written notice of any such transaction to the Trustee
(which notice shall contain a description of such merger, consolidation or conveyance): 
 (A) the Guarantor may merge,
amalgamate or consolidate with or into, or convey, transfer, lease, spin-off or otherwise dispose of all or substantially all of its properties, assets or revenues to a direct or indirect Subsidiary of the
Guarantor in cases when the Guarantor is the surviving entity in such transaction and such transaction would not have a Material Adverse Effect on the Guarantor and its Subsidiaries taken as a whole, it being understood that if the Guarantor is not
the surviving entity, the Guarantor shall be required to comply with the requirements set forth in the previous paragraph; or 

(B) any direct or indirect Subsidiary of the Guarantor may merge or consolidate with or into, or convey, transfer, lease, spin-off or otherwise dispose of assets to, any person (other than the Guarantor or any of its Subsidiaries or Affiliates) in cases when such transaction would not have a Material Adverse Effect on the Guarantor and
its Subsidiaries taken as a whole; or 
 (C) any direct or indirect Subsidiary of the Guarantor may merge or consolidate with
or into, or convey, transfer, lease, spin-off or otherwise dispose of assets to, any direct or indirect Subsidiary of the Guarantor; or 

(D) any direct or indirect Subsidiary of the Guarantor may liquidate or dissolve if the Guarantor determines in good faith that
such liquidation or dissolution is in the best interests of the Guarantor, and would not result in a Material Adverse Effect on the Guarantor and its Subsidiaries taken as a whole and if such liquidation or dissolution is part of a corporate
reorganization of the Guarantor. 
 (f) Negative Pledge. So long as any Note remains outstanding, the Guarantor will not create or
permit any Lien, other than a Permitted Lien, on any of the Guarantor’s assets to secure (i) any of the Guarantor’s Indebtedness or (ii) the Indebtedness of any other person, unless the Guarantor contemporaneously creates or
permits such Lien to secure equally and ratably the Guarantor’s obligations under this Guaranty or the Guarantor provides such other security for the Notes as is duly approved by the Trustee, at the direction of the Noteholders, in accordance
with the Indenture. In addition, the Guarantor will not allow any of the Guarantor’s Material Subsidiaries to create or permit any Lien, other than a Permitted Lien, on any of the 

  
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Guarantor’s assets to secure (i) any of the Guarantor’s Indebtedness, (ii) any of the Indebtedness of the Guarantor’s Material Subsidiaries or (iii) the Indebtedness
of any other person, unless it contemporaneously creates or permits the Lien to secure equally and ratably the Guarantor’s obligations under this Guaranty or the Guarantor or such Material Subsidiary provides such other security for the Notes
as is duly approved by the Trustee, at the direction of the Noteholders, in accordance with the Indenture. 
 (g) Provision of Financial
Statements and Reports. (i) The Guarantor will provide to the Trustee, in English or accompanied by a certified English translation thereof, (A) within 90 calendar days after the end of each fiscal quarter (other than the fourth quarter),
its unaudited and consolidated balance sheet and statement of income calculated in accordance with Reporting GAAP and (B) within 120 calendar days after the end of each fiscal year, its audited and consolidated balance sheet and statement of
income calculated in accordance with Reporting GAAP. For purposes of this Section 7(g), as long as the financial statements or reports are publicly available and accessible electronically by the Trustee, the filing or electronic publication of
such financial statements or reports shall comply with the Guarantor’s obligation to deliver such statements and reports to the Trustee hereunder. The Guarantor shall provide the Trustee with prompt written notification at such time that the
Guarantor ceases to be a reporting company. The Trustee shall have no obligation to determine if and when the Guarantor’s financial statements or reports are publicly available and accessible electronically. 

(ii) The Guarantor will provide, together with each of the financial statements delivered pursuant to Sections 7(g)(i)(A) and (B), an
Officer’s Certificate stating that a review of the activities of the Guarantor and the Issuer has been made during the period covered by such financial statements with a view to determining whether the Guarantor and the Issuer have kept,
observed, performed and fulfilled their covenants and agreements under this Guaranty and that no Default or Event of Default has occurred during such period or, if one or more have actually occurred, specifying all such events and what actions have
been taken and will be taken with respect to such Default or Event of Default. 
 (iii) The Guarantor shall, whether or not it is required to
file reports with the SEC, file with the SEC and deliver to the Trustee (for redelivery to all Noteholders) all reports and other information as it would be required to file with the SEC under the Exchange Act if it were subject to those
regulations; provided, however, that if the SEC does not permit the filing described in the first sentence of this Section 7(h)(iii), the Guarantor will provide annual and interim reports and other information to the Trustee within the
same time periods that would be applicable if the Guarantor were required and permitted to file these reports with the SEC. 
 (iv) Delivery
of the above reports to the Trustee is for informational purposes only and the Trustee’s receipt of such reports shall not constitute constructive notice of any information contained therein or determinable from information contained therein,
including the Guarantor’s compliance with any of its covenants in the Indenture (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate). 

  
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 SECTION 8. Amendments, Etc. No amendment or waiver of any provision of this Guaranty
and no consent to any departure by the Guarantor therefrom shall in any event be effective unless the same shall be in writing and signed by the Trustee and the Guarantor, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given. For the avoidance of doubt, Article IX of the Indenture shall apply to an amendment to this Guaranty to determine whether the consent of Holders is required for an amendment and if so, the
required percentage of Holders of the Notes required to approve the amendment. 
 SECTION 9. Indemnity. The Guarantor agrees to fully
indemnify the Trustee and any predecessor Trustee and their agents for, and to hold it harmless against, any and all loss, liability, damages, claims or expense arising out of or in connection with the performance of its duties under this Guaranty,
including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder except to the extent that any such loss, liability or expense may be
attributable to its negligence or bad faith. 
 SECTION 10. Notices, Etc. (a) All notices and other communications provided for
hereunder shall be in writing (including telegraphic or telecopy) and mailed, telecopied or delivered by hand, if to the Guarantor, addressed to it at Avenida República do Chile 65,
13th Floor, 20031-912 Rio de Janeiro—RJ, Brazil, Telephone: +55 (21) 3224-1510/3224-9947, Telecopier: +55 (21) 3224-1401, Attention: Larry
Carris Cardoso, Finance Department, Loans and Financing Administration General Manager, if to the Trustee, at The Bank of New York Mellon, 240 Greenwich Street, Floor 7 East, New York, New York, 10286, USA, Telephone: +1 (212) 815-4259, Telecopier: +1 (212) 815-5603, Attention: Corporate Trust Department or, as to any party, at such other address as shall be designated by such party in a written
notice to each other party. All such notices and other communications shall, when telecopied, be effective when transmitted. Delivery by telecopier of an executed counterpart of a signature page to any amendment or waiver of any provision of this
Guaranty shall be effective as delivery of an original executed counterpart thereof. 
 (b) All payments made by the Guarantor to the Trustee
hereunder shall be made to the Payment Account (as defined in the Indenture). 
 SECTION 11. Survival. Without prejudice to the
survival of any of the other agreements of the Guarantor under this Guaranty or any of the other Transaction Documents, the agreements and obligations of the Guarantor contained in Section 2 (with respect to the payment of all other amounts
owed under the Indenture), Section 9 and Section 14 shall survive the payment in full of the Guaranteed Obligations and all of the other amounts payable under this Guaranty, the termination of this Guaranty and/or the resignation or
removal of the Trustee. 
 SECTION 12. No Waiver; Remedies. No failure on the part of the Trustee to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law. 

  
 13 

 SECTION 13. Continuing Agreement; Assignment of Rights Under the Indenture and the
Notes. This Guaranty is a continuing guaranty and shall (a) remain in full force and effect until the later of (i) the repayment in full by the Issuer of all amounts due and owing under the Indenture with respect to the Notes and
(ii) the repayment in full of all Guaranteed Obligations and all other amounts payable under this Guaranty, (b) be binding upon the Guarantor, its successors and assigns and (c) inure to the benefit of and be enforceable by the
Trustee, on behalf of Noteholders, and their successors, transferees and assigns. Without limiting the generality of clause (c) of the immediately preceding sentence, any Noteholder may assign or otherwise transfer its rights and obligations
under the Indenture (including, without limitation, the Note held by it) to any other person or entity, and such other person or entity shall thereupon become vested with all the benefits in respect thereof granted to such Noteholder herein or
otherwise, in each case as and to the extent provided in the Indenture. The Guarantor shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of all of the Noteholders. 

SECTION 14. Currency Rate Indemnity. (a) The Guarantor shall (to the extent lawful) indemnify the Trustee and the Noteholders and
keep them indemnified against: 
 (i) in the case of nonpayment by the Guarantor of any amount due to the Trustee, on behalf
of the Noteholders, under this Guaranty any loss or damage incurred by any of them arising by reason of any variation between the rates of exchange used for the purposes of calculating the amount due under a judgment or order in respect thereof and
those prevailing at the date of actual payment by the Guarantor; and 
 (ii) any deficiency arising or resulting from any
variation in rates of exchange between (a) the date as of which the local currency equivalent of the amounts due or contingently due under this Guaranty or in respect of the Notes is calculated for the purposes of any bankruptcy, insolvency or
liquidation of the Guarantor, and (b) the final date for ascertaining the amount of claims in such bankruptcy, insolvency or liquidation. The amount of such deficiency shall be deemed not to be increased or reduced by any variation in rates of
exchange occurring between the said final date and the date of any bankruptcy, insolvency or liquidation or any distribution of assets in connection therewith. 

(b) The Guarantor agrees that, if a judgment or order given or made by any court for the payment of any amount in respect of its obligations
hereunder is expressed in a currency (the “Judgment Currency”) other than U.S. dollars (the “Denomination Currency”), it will indemnify the relevant Holder and the Trustee against any deficiency arising or resulting
from any variation in rates of exchange between the date at which the amount in the Denomination Currency is notionally converted into the amount in the Judgment Currency for the purposes of such judgment or order and the date of actual payment
thereof. 
 (c) The above indemnities shall constitute separate and independent obligations of the Guarantor from its obligations hereunder,
will give rise to separate and independent causes of action, will apply irrespective of any indulgence granted from time to time and will continue in full force and effect notwithstanding any judgment or the filing of any proof or proofs in any
bankruptcy, insolvency or liquidation of the Guarantor for a liquidated sum or sums in respect of amounts due under this Guaranty, or under the Indenture or the Notes or under any judgment or order. 

  
 14 

 SECTION 15. Governing Law; Jurisdiction; Waiver of Immunity, Etc. 

(a) This Guaranty shall be governed by, and construed in accordance with, the laws of the State of New York. 

(b) The Guarantor hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York
State court or federal court of the United States of sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Guaranty or any of the other Transaction Documents to which it is
or is to be a party, or for recognition or enforcement of any judgment, and the Guarantor hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York
State court or, to the extent permitted by law, in such federal court. The Guarantor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Guaranty or any other Transaction Document shall affect any right that any party may otherwise have to bring any action or proceeding against the Issuer or the Guarantor, as the case may be, relating to this
Guaranty or any other Transaction Document in the courts of any jurisdiction. 
 (c) The Guarantor hereby irrevocably appoints and empowers
the New York office of Petróleo Brasileiro S.A., located at 570 Lexington Avenue, Suite 2401, New York, New York 10022 as its authorized agent (the “Process Agent”) to accept and acknowledge for and on its behalf and on
behalf of its property service of any and all legal process, summons, notices and documents which may be served in any such suit, action or proceedings in any New York State court or United States federal court sitting in the State of New York in
the Borough of Manhattan and any appellate court from any thereof, which service may be made on such designee, appointee and agent in accordance with legal procedures prescribed for such courts. The Guarantor will take any and all action necessary
to continue such designation in full force and effect and to advise the Trustee of any change of address of such Process Agent and; should such Process Agent become unavailable for this purpose for any reason, the Guarantor will promptly and
irrevocably designate a new Process Agent within New York, New York, which will agree to act as such, with the powers and for the purposes specified in this subsection (c). The Guarantor irrevocably consents and agrees to the service of any and all
legal process, summons, notices and documents out of any of the aforesaid courts in any such action, suit or proceeding by hand delivery, to it at its address set forth in Section 10 or to any other address of which it shall have given notice
pursuant to Section 10 or to its Process Agent. Service upon the Guarantor or the Process Agent as provided for herein will, to the fullest extent permitted by law, constitute valid and effective personal service upon it and the failure of the
Process Agent to give any notice of such service to the Guarantor shall not impair or affect in any way the validity of such service or any judgment rendered in any action or proceeding based thereon. 

 

  
 15 

 (d) The Guarantor irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Guaranty or any of the other Transaction Documents to which it is or is to be
a party in any New York State or federal court. The Guarantor hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such suit, action or proceeding in any such court. 

(e) THE GUARANTOR HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT,
TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS GUARANTY, ANY OF THE TRANSACTION DOCUMENTS, THE ADVANCES OR THE ACTIONS OF ANY NOTEHOLDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 

(f) This Guaranty and any other documents delivered pursuant hereto, and any actions taken hereunder, constitute commercial acts by the
Guarantor. The Guarantor irrevocably and unconditionally and to the fullest extent permitted by law, waives, and agrees not to plead or claim, any immunity from jurisdiction of any court or from any legal process (whether through service of notice,
attachment prior to judgment, attachment in aid of execution, execution or otherwise) for itself, the Issuer or any of their property, assets or revenues wherever located with respect to its obligations, liabilities or any other matter under or
arising out of or in connection with this Guaranty, any of the Transaction Documents or any document delivered pursuant hereto, in each case for the benefit of each assigns, it being intended that the foregoing waiver and agreement will be
effective, irrevocable and not subject to withdrawal in any and all jurisdictions, and, without limiting the generality of the foregoing, agrees that the waivers set forth in this subsection (f) shall have the fullest scope permitted under the
United States Foreign Sovereign Immunities Act of 1976 and are intended to be irrevocable for the purposes of such act. 
 SECTION 16.
Execution in Counterparts. This Guaranty and each amendment, waiver and consent with respect hereto may be executed in any number of counterparts and by different parties thereto in separate counterparts, each of which when so executed shall
be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Guaranty by telecopier shall be effective as delivery of an original executed
counterpart of this Guaranty. 
 SECTION 17. Entire Agreement. This Guaranty, together with the Indenture and the Notes, sets forth
the entire agreement of the parties hereto with respect to the subject matter hereof. 
 SECTION 18. The Trustee. In the performance
of its obligations hereunder, the Trustee shall be entitled to all the rights, benefits, protections, indemnities and immunities afforded to it under the Indenture. 

[Signature page follows] 

  
 16 

 IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed and delivered
by its officer thereunto duly authorized as of the day and year first above written. 
  

			
	PETRÒLEO BRASILEIRO S.A. – PETROBRAS
		
	By:	 	 /s/ Bianca Nasser Patrocínio

		 	Name: Bianca Nasser Patrocínio
		 	Title: Attorney in Fact

  

			
	WITNESSES:
		
	1.	 	 /s/ Renan Feuchard Pinto

		 	Name: Renan Feuchard Pinto
		
	2.	 	 /s/ Rodrigo Coimbra

		 	Name: Rodrigo Coimbra

  

  
 [Signature Page –
Amended and Restated Guaranty] 

			
	ACKNOWLEDGED:
	
	THE BANK OF NEW YORK MELLON, as Trustee and not in its individual capacity
		
	By:	 	 /s/ Teresa Wyszomierski

		 	Name: Teresa Wyszomierski
		 	Title: Vice President

  

			
	 WITNESSES:

		
	 1.
	 	 /s/ Wanda Camacho

		 	 Name: Wanda Camacho

		
	 2.
	 	 /s/ Elizabeth Stern

		 	 Name: Elizabeth Stern

  

  
 [Signature Page –
Amended and Restated Guaranty] 

					
	STATE OF NEW YORK	 	)	  	
		 	)	  	ss:
	COUNTY OF NEW YORK	 	)	  	

 On this 18th day of March, 2019, before me, a notary public within and for said county, personally appeared
Teresa H. Wyszomierski, to me personally known, who being duly sworn, did say that she is a Vice President of The Bank of New York Mellon, one of the persons described in and which executed the foregoing instrument, and acknowledges said instrument
to be the free act and deed of said entity. 
 On this 18th day of March, 2019, before me personally came Wanda Camacho and Elizabeth Stern
to me personally known, who being duly sworn, did say that they signed their names to the foregoing instrument as witnesses. 
 [Notarial Seal] 

 

	
	 /s/ Bret S. Derman

	Notary Public
	COMMISSION EXPIRES
	 Bret S. Derman
 Notary Public State of New
York
 Kings County
 LIC. # 02DE6196933

COMM EXP. 11/17/2020

  

  
 [Signature Page –
Amended and Restated Guaranty]

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