Document:

Exhibit

EXHIBIT 4.4

DESCRIPTION OF REGISTRANT’S SECURITIES REGISTERED PURSUANT TO 
SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

The following is a brief description of the common stock (“Common Stock”) of Mercury General Corporation (the “Company”) registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). This description of the terms of the Company’s stock does not purport to be complete and is subject to and qualified in its entirety by reference to the applicable provisions of the California General Corporation Law (“CGCL”), and the full text of the Company’s articles of incorporation, as amended to date (the “Articles of Incorporation”), and the Company’s amended and restated bylaws (“bylaws”), copies of which are incorporated by reference to this Annual Report on Form 10-K.
General
The authorized capital stock of the Company consists of 70,000,000 shares of Common Stock, without par value. The principal stock exchange on which the Company’s Common Stock is listed is the New York Stock Exchange under the symbol “MCY.” All outstanding shares of Common Stock are validly issued, fully paid and nonassessable. 
Common Stock
Voting Rights. The holders of Common Stock are entitled to one vote for each share held of record on each matter submitted to a vote of shareholders and, upon giving the notice required by law, may cumulate their votes in an election of directors. 
Dividend Rights. Holders of Common Stock are entitled to receive ratably such dividends as may be declared by the Board of Directors out of funds legally available therefor.
Right to Receive Liquidation Distributions. In the event of the liquidation or dissolution of the Company, holders of Common Stock are entitled to share ratably in all assets remaining after payment of liabilities. 
No Preemptive or Similar Rights. Holders of Common Stock have no preemptive rights and have no rights to convert their Common Stock into any other securities. The Company’s Common Stock is not subject to redemption provisions. 
Anti-Takeover Provisions
The Company currently has provisions in its Articles of Incorporation, as amended, and bylaws which could have an “anti-takeover” effect. The affirmative vote or consent of the holders of two-thirds (66 2/3%) of the Company’s securities entitled to vote is required for (a) any amendment of the Articles of Incorporation, (b) the merger or consolidation of the Company with any other corporation except for the merger or a wholly-owned subsidiary of the Company into the Company or (c) the sale, lease, conveyance, exchange, transfer or other disposition of all or substantially all of the assets of the Company. The agreement among the Company, Mr. George Joseph and Mrs. Gloria Joseph regarding Mr. and Mrs. Joseph’s ownership of the Company’s Common Stock could also have an “anti-takeover” effect. 
In addition, as a California corporation, the Company is subject to the provisions of Section 1203 of the CGCL, which requires it to provide a fairness opinion to its shareholders in connection with their considerations of any proposed “interested party” reorganization transaction.
Ownership Restrictions
The Company is subject to the Holding Company Act which generally restricts the ability of any one person to acquire 10% or more of the Company’s voting securities without prior regulatory approval.Exhibit 10.1 

EXCHANGE AGREEMENT

 

 

THIS EXCHANGE AGREEMENT
(“Agreement”) is entered into as of January 17, 2020, by and between CloudCommerce, Inc., a Nevada corporation (the
“Company”), and Bountiful Capital, LLC, a Nevada limited liability company, (the “Investor”), with respect
to the following facts:

 

R E C I T A L S

 

A.       The
Company entered into loan transactions with the Investor in the aggregate principal amount of $240,500.00, as described
below, which were evidenced by certain promissory Demand Notes (the “Notes”), copies of which are attached hereto as
Exhibit A.

 

	Effective Date	 	Annual Interest	 	Outstanding Principal Balance
	November 30, 2017	 	 	5	%		$	30,000.00
	January 30, 2018	 	 	5	%	 		72,000.00	 
	February 2, 2018	 	 	5	%	 		85,000.00	 
	July 23, 2019	 	 	5	%	 		25,000.00	 
	August 20, 2019	 	 	5	%	 		10,000.00	 
	August 28, 2019	 	 	5	%	 		18,500.00	 
	 	 	 	 	 	 	$	240,500.00	 

 

B.       The
Notes are demand notes, which allow the Investor to demand immediate and full payment at any time. The total accrued interest on
the Notes is $19,198.00. The Investor desires to tender the Notes to the Company for cancellation, including all outstanding principal,
in exchange for the issuance by the Company to the Investor 2,597 shares of Series G preferred stock, which may, at the option
of the Investor, be converted into shares of the Company’s common stock pursuant to the certificate of designation of the
Series G preferred stock (the “Convertible Preferred Stock”).

 

C.       The
Company desires to issue the Convertible Preferred Stock to the Investor in exchange for the cancellation of the Notes.

 

D.       The
closing of the transactions contemplated by this Agreement (the “Closing”) will be deemed to have occurred upon the
completion of the deliveries by each Party to this Agreement described in Section 2 of this Agreement.

 

NOW, THEREFORE,
for good and valuable consideration the receipt and sufficiency of which are hereby acknowledged by the parties to this Agreement,
and in light of the recitals stated above, the parties to this Agreement hereby agree as follows:

 

Section 1.EXCHANGE OF THE
NOTES FOR THE CONVERTIBLE PREFERRED STOCK

 

The Investor agrees
to tender the Demand Notes to the Company for cancellation in exchange for which the Company agrees to issue the Convertible
Preferred Stock to the Investor. The Investor agrees that upon delivery of the Convertible Preferred Stock to the Investor,
the Notes shall be deemed

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fully paid and satisfied, null and void
and no interest, fees or principal shall be due thereon. In the event the Notes are lost or destroyed, the Investor hereby warrants
that the Notes are lost or destroyed and agrees to immediately surrender to the Company said Notes should it later be found and
the Investor shall provide the Company with an affidavit of loss of said Notes. The Investor hereby agrees to indemnify and hold
harmless the Company and its affiliates against all liability, costs, damages, claims or expenses which may be incurred by any
of them as a result of any claim to ownership of the lost Notes asserted by the Investor or by anyone other than Investor.

 

Section 2.DELIVERIES

 

2.1       The
Company. The Company will issue the Convertible Preferred Stock upon the execution of this Agreement.

 

2.2       The
Investor. The Investor will deliver the Notes or an affidavit that said Notes are lost upon the execution of this Agreement.
The Investor also agrees to deliver any other document reasonably requested by the Company that it deems necessary for the consummation
of the transactions contemplated by this Agreement.

 

Section 3.EQUITABLE
Relief.

 

3.1       Damages
Inadequate. Each party acknowledges that it would be impossible to measure in money the damages to the other party if there
is a failure to comply with any covenants or provisions of this Agreement, and agrees that in the event of any breach of any covenant
or provision, the other party to this Agreement will not have an adequate remedy at law.

 

3.2        Equitable
Relief. It is therefore agreed that the other party to this Agreement who is entitled to the benefit of the covenants or provisions
of this Agreement which have been breached, in addition to any other rights or remedies which they may have, shall be entitled
to immediate equitable relief to enforce such covenants and provisions, and that in the event that any such action or proceeding
is brought in equity to enforce them, the defaulting or breaching party will not urge a defense that there is an adequate remedy
at law.

 

Section 4.Investor Representation
and Warranty

 

4.1       Investor’s
Representations and Warranties. As a material inducement to the Company to enter into this Agreement and consummate the exchange,
Investor represents warrants and covenants with and to the Company as follows:

 

		i.	Authorization and Binding Obligation. The Investor has the
requisite legal capacity, power and authority to enter into, and perform under, this Agreement, including with respect to canceling
the note and receiving the Convertible Preferred Stock. The execution, delivery and performance of this Agreement and performance
by such Investor and the consummation by such Investor of the transactions contemplated hereby and thereby have been duly authorized
by all requisite corporate, partnership or similar action on the part of such Investor and no further consent or authorization
is required. This Agreement has been duly authorized, executed and delivered by the Investor. This Agreement has been duly executed
and delivered

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by the Investor, and constitute
the legal, valid and binding obligations of the Investor, enforceable against the Investor in accordance with their respective
terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and
remedies and except as rights to indemnification and to contribution may be limited by federal or state securities laws.

		ii.	Beneficial Owner. With respect to the Note (i) the Investor
owns, beneficially and of record, good and marketable title to the Note, free and clear of any taxes or encumbrances; (ii) the
Note is not subject to any transfer restriction, other than the restriction that the Note not been registered under the Securities
Act of 1933, as amended (the “1933 Act”) and, therefore, cannot be resold unless registered under the 1933 Act or in
a transaction exempt from or not subject to the registration requirements of the 1933 Act; (iii) the Note has not entered into
any agreement or understanding with any person or entity to dispose of the Note; and (iv) at the Closing, the Investor will convey
to the Company good and marketable title to the Note, free and clear of any security interests, liens, adverse claims, encumbrances,
taxes or encumbrances.

		iii.	Accredited Investor. Such Investor is an accredited investor
as defined in Rule 501(a) of Regulation D, as amended, under the 1933 Act.

		iv.	Disclosure of Information. Such Investor has had an opportunity
to receive all information related to the Company requested by it and to ask questions of and receive answers from the Company
regarding the Company, its business and the terms and conditions of the offering of the Convertible Preferred Stock. Such Investor
acknowledges receipt of copies of the Company’s most recent Annual Report on Form 10-K for its last fiscal year and all other
reports filed by the Company pursuant to the 1934 Act since the filing of the 10-K and prior to the date hereof. 

		v.	Proceedings. No proceedings relating to the Note is pending
or, to the knowledge of the Investor, threatened before any court, arbitrator or administrative or governmental body that would
adversely affect the Investor’s right and ability to surrender and exchange the Note.

		vi.	Tax Consequences. The Investor acknowledges that the contents
this Agreement do not contain tax advice and Investor acknowledges that it has not relied and will not rely upon the Company with
respect to any tax consequences related to the exchange of the Note and receipt of the Convertible Preferred Stock. The Investor
assumes full responsibility for all such consequences and for the preparation and filing of any tax returns and elections which
may or must be filed in connection with such Note and/or the exchange of the Note for the Convertible Preferred Stock.

		vii.	Reliance on Exemptions. The Investor understands that the
Convertible Preferred Stock is being offered and exchanged in reliance on specific exemptions from the registration requirements
of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and
the Investor’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Investor
set forth herein

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and in order to determine
the availability of such exemptions and the eligibility of the Investor to acquire the Securities.

		viii.	Neither the Investor
nor its agent or representative has engaged any broker or finder or incurred any liability for any brokerage fees, commissions
or finders’ fees in connection with the Transactions contemplated herein.

 

Section 5.MISCELLANEOUS

 

5.1       Further
Assurances. The parties to this Agreement hereby agree to execute any other documents and take any further actions, which are
reasonably necessary or appropriate in order to implement the transactions contemplated by this Agreement.

 

5.2       Counterparts.
This Agreement may be executed in several counterparts, each of which shall constitute an original and all of which, when taken
together, shall constitute one agreement.

 

5.3       Governing
Law. This Agreement shall be construed in accordance with, and governed in all respects by, the laws of the State of Nevada.
The federal and state courts located in Clark County, Nevada shall have sole and exclusive subject matter jurisdiction over this
Agreement and the parties expressly consent to personal jurisdiction in Nevada for the purpose of resolving any dispute related
to the making or interpretation of this Agreement.

 

5.4       Successors
and Assigns. This Agreement shall be binding upon the parties hereto and their respective heirs, successors and assigns, if
any, and shall inure to the benefit of the parties hereto and their respective heirs, successors and assigns, if any.

 

5.5       Severability.
The provisions of this Agreement are severable and in the event that one or more of its provisions are deemed to be unenforceable
or invalid for any reason, such finding will not affect the enforceability or validity of any other provision of this Agreement,
which shall remain in full force and effect.

 

5.6       Public
Disclosure. The Company and the Investor agree not to issue any public statement with respect to the Investor’s investment
or proposed investment in the Company or the terms of any agreement or covenant without the other party’s prior written consent,
except such disclosures as may be required under applicable law or under any applicable order, rule or regulation.

 

5.7       Waiver.
No failure or delay on the part of either party hereto in the exercise of any power, right or privilege hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude any other or further
exercise thereof or of any other power, right or privilege.

 

5.8        Entire
Agreement. This Agreement sets forth the entire understanding of the parties hereto and supersedes all prior agreements and
understandings between the parties relating to the subject matter hereof.

 

5.9        Parties
in Interest. None of the provisions of this Agreement or of any other document

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relating hereto is intended to provide
any rights or remedies to any person (including, without limitation, any employees or creditors of the Company) other than the
parties hereto and their respective heirs, successors and assigns, if any.

 

5.10       Authorized
Signatures. Each party to this Agreement hereby represents that the persons signing below are duly authorized to execute this
Agreement on behalf of their respective party.

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be executed as of the date first above written.

 

	COMPANY:	CLOUDCOMMERCE, INC.

 

 

By:
/s/ Andrew Van Noy

Andrew Van Noy, Chief
Executive Officer

 

 

 

 

	INVESTOR:	BOUNTIFUL CAPITAL, LLC

 

 

 

By:/s/
Greg Boden

Greg Boden, President

 

 

 

 

 

 

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EXHIBIT A

 

NOTES

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