Document:

Exhibit

Exhibit 4.4

Description of Securities

Registered Pursuant to Section 12 of the Securities Exchange Act of 1934

As of  June 30, 2020, Wheeler Real Estate Investment Trust, Inc. (“WHLR”, the “Company” or “our”) had four classes of securities: our common stock, par value $0.01 per share (“Common Stock”), Series A Preferred Stock, no par value per share (“Series A Preferred”); Series B Convertible Preferred Stock, no par value per share (“Series B Preferred”) and Series D Cumulative Convertible Preferred Stock, no par value per share (“Series D Preferred”). Series A Preferred, Series B Preferred and Series D Preferred are collectively referred to “Preferred Stock” hereinafter.  As of June 30, 2020, the Company had authority to issue 33,750,000 shares of stock consisting of the following:
•18,750,000 Common Stock authorized, 9,695,899 of which were issued and outstanding; 
•4,500 Series A Preferred authorized, 562 of which were issued and outstanding; 
•5,000,000 Series B Preferred authorized, 1,875,748 of which were issued and outstanding; and 
•4,000,000 Series D Preferred authorized, 3,600,636 of which were issued and outstanding.

Our Common Stock, Series B Preferred, and Series D Preferred are registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Act”) on the Nasdaq Capital Market exchange.  The following is a summary of each class of our securities registered under the Act and is subject to, and qualified in its entirety by reference to the provisions of our Amended and Restated Articles of Incorporation (the “Charter”), Supplementary Articles, as amended and restated and our by-laws, as amended and restated (the “By-Laws”), copies of which are incorporated by reference within the Exhibits to our Quarterly Report on Form 10-Q for the six months ended June 30, 2020 of which this Exhibit 4.4 is a part.  Our Series A Preferred stock is not registered on an exchange for trading and is not included in the following description.

Common Stock

Pursuant to Article V of our Charter, each share of Common Stock shall entitle the holder thereof to one vote. The Board of Directors of the Company (the “Board”) may reclassify any unissued shares of Common Stock from time to time in one or more classes or series of stock.

With respect to dividend payments and distribution of the Company’s assets upon redemption and upon the voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of shares of our Common Stock are subject to the prior rights of the holders of any shares of our Preferred Stock.

When and if declared by the Board, the holders of shares of Common Stock are subject to prior rights of the holders of any shares of our Preferred Stock for any dividends declared, paid upon or set aside for the Common Stock in any such year, dividends in cash, stock or otherwise. Any dividends declared but not paid shall be cumulative. No deposit, payment, dividend or distribution of any kind shall be made with respect to the Common Stock unless all dividends payable on the Preferred Stock have been paid.

Preferred Stock

In the event of (i) any voluntary or involuntary liquidation, winding up or dissolution of the Company or (ii) any sale or transfer by the Company of all or substantially all of its assets, the holders of Preferred Stock shall be entitled to receive, prior to and in preference of any distribution or payment upon the Common Stock, an amount per 

share of Preferred Stock equal to the sum of the Preferred Stock purchase price plus any accrued but unpaid dividends thereon. To the extent the assets and funds available for distribution after payment of all required obligations of the Company are insufficient to make such payment, then the entire assets and funds available for distribution shall be distributed ratably among the holders of the Preferred Stock. Any amounts remaining after payment in full of the holders of the Preferred Stock shall be distributed ratably among the holders of the Common Stock.

Series B Preferred

Holders of Series B Preferred shares have the right to cumulative cash dividends at a rate of 9% per annum of the $25 liquidation preference per share.  The Series B Preferred has no redemption rights. However, the Series B Preferred is subject to a mandatory conversion once the 20-trading day volume-weighted average closing price of our Common Stock, $0.01 par value per share, exceeds $58 per share; once this weighted average closing price is met, each share of our Series B Preferred will automatically convert into shares of our Common Stock at a conversion price equal to $40.00 per share. In addition, holders of our Series B Preferred also have the option, at any time, to convert shares of our Series B Preferred into shares of our Common Stock at a conversion price of $40.00 per share of Common Stock. Upon any voluntary or involuntary liquidation, dissolution or winding up of our company, the holders of shares of our Series B Preferred shall be entitled to be paid out of our assets a liquidation preference of $25.00 per share, plus an amount equal to all accumulated, accrued and unpaid dividends to and including the date of payment. The Series Preferred B has no maturity date and will remain outstanding indefinitely unless subject to a mandatory or voluntary conversion as described above. Holders of Series B Preferred Stock have no voting rights except as provided by law.

Series D Preferred

The Series D Preferred has a $25.00 liquidation preference per share. Until September 21, 2023, the holders of the Series D Preferred are entitled to receive cumulative cash dividends at a rate of 8.75% per annum of the $25.00 liquidation preference per share (equivalent to the fixed annual amount of $2.1875 per share) (the “Initial Rate”). Commencing September 21, 2023, the holder’s will be entitled to cumulative cash dividends at an annual dividend rate of the Initial Rate increased by 2% of the liquidation preference per annum on each subsequent anniversary thereafter, subject to a maximum annual dividend rate of 14%. Dividends are payable quarterly in arrears on or before January 15th, April 15th, July 15th and October 15th of each year. On or after September 21, 2021, the Company, may at its option, redeem the Series D Preferred, for cash at a redemption price of $25.00 per share, plus an amount equal to all accrued and unpaid dividends, if any, to and including the redemption date. The holder of the Series D Preferred may convert shares at any time into shares of the Company’s Common Stock at an initial conversion rate of $16.96 per share of Common Stock. On September 21, 2023, the holders of the Series D Preferred may, at their option, elect to cause the Company to redeem any or all of their shares at a redemption price of $25.00 per share, plus an amount equal to all accrued and unpaid dividends, if any, to and including the redemption date, payable in cash or in shares of Common Stock, or any combination thereof, at the holder’s option.

The Series D Preferred requires the Company maintain asset coverage of at least 200%.   If we fail to maintain asset coverage of at least 200% calculated by determining the percentage value of (i) our total assets plus accumulated depreciation and accumulated amortization minus our total liabilities and indebtedness as reported in our financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) (exclusive of the book value of any Redeemable and Term Preferred Stock (defined below)) over (ii) the 

aggregate liquidation preference, plus an amount equal to all accrued and unpaid dividends, of outstanding shares of our Series D Preferred Stock and any outstanding shares of term preferred stock or preferred stock providing for a fixed mandatory redemption date or maturity date (collectively referred to as “Redeemable and Term Preferred Stock”) on the last business day of any calendar quarter (“Asset Coverage Ratio”), and such failure is not cured by the close of business on the date that is 30 calendar days following the filing date of our Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as applicable, for that quarter, or the “Asset Coverage Cure Date,” then we will be required to redeem, within 90 calendar days of the Asset Coverage Cure Date, shares of Redeemable and Term Preferred Stock, which may include Series D Preferred Stock, at least equal to the lesser of (i) the minimum number of shares of Redeemable and Term Preferred Stock that will result in us having a coverage ratio of at least 200% and (ii) the maximum number of shares of Redeemable and Term Preferred Stock that can be redeemed solely out of funds legally available for such redemption. In connection with any redemption for failure to maintain the Asset Coverage Ratio, we may, in our sole option, redeem any shares of Redeemable and Term Preferred Stock we select, including on a non-pro rata basis. We may elect not to redeem any Series D Preferred Stock to cure such failure as long as we cure our failure to meet the Asset Coverage Ratio by or on the Asset Coverage Cure Date.  If shares of Series D Preferred Stock are to be redeemed for failure to maintain the Asset Coverage Ratio, such shares will be redeemed solely in cash at a redemption price equal to $25.00 per share plus an amount equal to all accrued but unpaid dividends, if any, on such shares (whether or not declared) to and including the redemption date.

Dividends on the Series D Preferred cumulate from the end of the most recent dividend period for which dividends have been paid. Dividends on the Series D Preferred cumulate whether or not (i) we have earnings, (ii) there are funds legally available for the payment of such dividends and (iii) such dividends are authorized by the Board or declared by us. Dividends on the Series D Preferred Stock do not bear interest. If the Company, fails to pay any dividend within three (3) business days after the payment date for such dividend, the then-current dividend rate increases following the payment date by an additional 2.0% of the $25.00 stated liquidation preference per share, or $0.50 per annum, until we pay the dividend, subject to our ability to cure the failure. On December 20, 2018, the Company suspended the Series D Preferred dividend. As such, the Series D Preferred shares began accumulating dividends at 10.75% beginning January 1, 2019 and will continue to accumulate dividends at this rate until all accumulated dividends have been paid.

Holders of shares of the Series D Preferred have no voting rights. However, if dividends on the Series D Preferred are in arrears for six or more consecutive quarterly periods, the number of directors on the Board will automatically be increased by two, and holders of shares of the Series D Preferred and the holders of shares of Parity Preferred Stock upon which like voting rights have been conferred and are exercisable (voting together as a single class) will be entitled to vote, at a special meeting called upon the written request of the holders of at least 20% of such stock or at our next annual meeting and at each subsequent annual meeting of stockholders, for the election of two additional directors to serve on the Board, until all unpaid dividends on such Series D Preferred and Parity Preferred Stock, if any, have been paid or declared and a sum sufficient for the payment thereof set apart for payment. The Series D Preferred Directors will be elected by a plurality of the votes cast in the election.  In addition, holders of shares of the Series D Preferred shall have the right to vote to approve any amendment to the terms of the Series D Preferred Stock.  Any such amendment of the terms of the Series D Preferred Stock requires the affirmative vote of two-thirds of the shares of Series D Preferred Stock issued and outstanding.Exhibit 10.4

 

FIRST
AMENDMENT TO

TRXADE
GROUP, INC. 2019 EQUITY INCENTIVE PLAN 

RESTRICTED
STOCK GRANT AGREEMENT

 

This
First Amendment to Restricted Stock Grant Agreement (“Agreement”), dated as of July 23, 2020 (the “Effective
Date”), amends that certain Trxade Group, Inc. 2019 Equity Incentive Plan Restricted Stock Grant Agreement dated
April 14, 2020 (the “Award Agreement”, which term shall include the Notice of Restricted Stock Grant
which forms the first page thereof), entered into between [Grantee] (the “Grantee”) and
Trxade Group, Inc., a Delaware corporation (the “Company”), pursuant to which Grantee was issued [Shares]
shares of Restricted Stock of the Company. Certain capitalized terms used below but not otherwise defined shall have the
meanings given to such terms in the Award Agreement and the Company’s Amended and Restated 2019 Equity Incentive Plan, as
applicable.

 

WHEREAS,
the Company’s Board of Directors has approved amendments to the Award Agreement to provide that the Restricted Stock shall
vest immediately upon (a) the death of Grantee; (b) the Retirement of the Grantee; and (c) a Change of Control of the Company
(collectively, the “Board Approved Amendments”); and

 

WHEREAS,
the Company and Grantee desire to amend the Award Agreement on the terms and conditions set forth below, to reflect the Board
Approved Amendments.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, and
other good and valuable consideration, which consideration the parties hereby acknowledge and confirm the receipt and sufficiency
thereof, the parties hereto agree as follows:

 

1.
Amendments to Award Agreement.

 

(A)
For the sake of clarity, and in an abundance of caution, the Company and the Grantee confirm and acknowledge that all references
to ‘Restricted Stock’ in the Award Agreement shall refer to the ‘Shares’ referenced in the Notice of Restricted
Stock Grant which forms the first page of the Award Agreement.

 

(B)
Effective as of the Effective Date, Section 3(c) of the Award Agreement shall be amended and restated to read as follows:

 

“(c)
Any Nonvested Shares will automatically vest and become nonforfeitable if Grantee’s service with the Company ceases owing
to the Grantee’s (a) death; or (b) Retirement.”

 

(C)
Effective as of the Effective Date, Section 3(d) of the Award Agreement shall be amended and restated to read as follows:

 

    	First Amendment to Restricted Stock Grant Agreement
Page 1  of  3

     

    

 

“(d)
Any Nonvested Shares will vest and become nonforfeitable immediately prior to the date of a Change of Control, provided that the
Board (or an authorized committee thereof), in its discretion, may also accelerate the time at which all or any portion of Grantee’s
Nonvested Shares will vest prior to a contemplated Change of Control.”

 

(D)
Effective as of the Effective Date, Section 4 of the Award Agreement shall be amended and restated to read as follows:

 

“4.
Forfeiture of Nonvested Shares. Except as provided herein, if Grantee’s service with the Company ceases for
any reason (including Disability) other than Grantee’s (a) Retirement or (b) death, any Nonvested Shares will be automatically
forfeited to the Company for no consideration; unless the Board (or an authorized committee thereof) provides otherwise, and provided,
however, that the Board (or an authorized committee thereof) may cause any Nonvested Shares immediately to vest and become nonforfeitable
if Grantee’s service with the Company is terminated by the Company without Cause.”

 

2.
Effect of Agreement; Award Agreement to Continue in Full Force and Effect. Upon the effectiveness
of this Agreement, each reference in the Award Agreement to “Agreement,”
“hereunder,” “hereof,”
“herein” or words of like import shall mean and be a reference to
such Award Agreement as modified or amended hereby. Except as specifically modified or amended herein, the Award Agreement and
the terms and conditions thereof shall remain in full force and effect.

 

3.
Entire Agreement. This Agreement sets forth all of the promises, agreements, conditions, understandings, warranties
and representations among the parties with respect to the transactions contemplated hereby and thereby, and supersedes all prior
agreements, arrangements and understandings between the parties, whether written, oral or otherwise. This Agreement shall be read
in connection with the Award Agreement (as amended hereby).

 

4.
Counterparts and Signatures. This Agreement and any signed agreement or instrument entered into in connection with
this Agreement, and any amendments hereto or thereto, may be executed in one or more counterparts, all of which shall constitute
one and the same instrument. Any such counterpart, to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif,
..jpeg or similar attachment to electronic mail shall be treated in all manner and respects as an original executed counterpart
and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.

 

[Remainder
of page left intentionally blank. Signature page follows.]

 

    	First Amendment to Restricted Stock Grant Agreement
Page 2  of  3

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written to be effective
as of the Effective Date.

 

	Company:	 	Grantee:
	 	 	 
	Trxade
    Group, Inc.	 	 
	 	 	 
	 	 	 
	Suren
    Ajjarapu	 	[Grantee]
	Chief
    Executive Officer	 	 

 

    	First Amendment to Restricted Stock Grant Agreement
Page 3  of  3

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