Document:

EX-4.2

 Exhibit 4.2 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND, EXCEPT IN SUCH
LIMITED CIRCUMSTANCES, MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR OF THE DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

SOUTHWEST AIRLINES CO. 

3.450% Notes Due 2027 
  

			
	No. GS-1	 	CUSIP # 844741 BE7

 Southwest Airlines Co., a corporation duly organized and existing under the laws of Texas (herein called the
“Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of THREE HUNDRED MILLION
DOLLARS on November 16, 2027, and to pay interest thereon from November 16, 2017 or from the most recent Interest Payment Date (as hereinafter defined) to which interest has been paid or duly provided for, semi-annually in arrears on
May 16 and November 16 (each, an “Interest Payment Date”) in each year, commencing May 16, 2018, at the rate of 3.450% per annum, until the principal hereof is fully paid or made available for full payment. Interest on this
Security shall be computed on the basis of a 360-day year of twelve 30-day months. The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, subject to certain exceptions provided in such Indenture, be paid to the person in whose name this Security is registered on the Security register or registers of the Company at the close of business on May 1 or
November 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. 

 Payment of the principal of and interest on this Security will be made in such immediately
available funds of the United States of America as at the time of payment are legal tender for payment of public and private debts. 

Reference is hereby made to the further provisions of this Security set forth below, which further provisions shall for all purposes have the
same effect as if set forth in this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred to
below by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal. 

Dated: November 16, 2017 
  

			
	SOUTHWEST AIRLINES CO.
		
	By:	 	  

		 	 Tammy Romo
 Executive Vice President and

Chief Financial Officer

 ATTEST: 
  

	
	  

	David Christopher Monroe
	Senior Vice President Finance and Treasurer

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein referred to in the within-mentioned Indenture. 

WELLS FARGO BANK, NATIONAL ASSOCIATION 
 as Trustee 

 

			
	By:	 	  

		 	Authorized Signatory

 This Security is one of a duly authorized issue of debt securities of the Company, issued and to
be issued in one or more series under an Indenture, dated as of September 17, 2004 (herein called the “Indenture”), between the Company and Wells Fargo Bank, National Association, as Trustee (herein called the
“Trustee”, which term includes any successor trustee under the Indenture), to which Indenture, all indentures supplemental thereto, and the Officers’ Certificate dated November 16, 2017, setting forth the terms of the debt
securities of this series, reference is hereby made for a statement of the respective rights, limitation of rights, duties, and immunities thereunder of the Company, the Trustee, and the holders of the Securities (as defined below) and of the terms
upon which the Securities are, and are to be, authenticated and delivered. This Security is one of a series designated as 3.450% Notes Due 2027 (the “Securities”). This Security is a Global Security representing the entire principal
amount of Securities, initially limited in aggregate principal amount to $300,000,000, but subject to the right of the Company to issue and sell additional Securities in the future without the consent of the holders thereof. Any additional
securities of this series, together with this Security, shall constitute a single series under the Indenture. 
 Redemption 

The Securities shall be redeemable, at the option of the Company, in whole or in part, at any time, on at least 20 days but not more than 60
days’ prior notice sent to the registered address of each holder of Securities to be so redeemed. If the Securities are redeemed at any time prior to the Par Call Date, the Securities will be redeemed at a redemption price equal to the greater
of (i) 100% of the principal amount of the Securities to be so redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on such Securities that would have been made if the Securities matured
on the Par Call Date (exclusive of interest accrued to the redemption date) discounted to the redemption date, on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months), at the Treasury Rate (as defined herein) plus 20 basis points, plus, in either case, accrued and unpaid interest on the principal amount being redeemed to such redemption date. If the Securities are
redeemed on or after the Par Call Date, the Securities will be redeemed at a redemption price equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest thereon to the redemption date. In either case,
the redemption is subject to the right of holders of record on the relevant record date to receive interest due on an Interest Payment Date that is on or before the date of redemption. 

If fewer than all of the Securities are to be redeemed at any time, selection of Securities for redemption will be made by the Trustee in such
manner as the trustee deems appropriate and fair (or, in the case of Securities issued in global form, by such other method as the DTC may require); provided, however, that the Securities will be redeemed only in the minimum denominations of $2,000
and integral multiples thereof of $1,000. 
 For purposes of determining the redemption price, the following definitions shall apply: 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having an actual or
interpolated maturity comparable to the remaining term of the Securities to be redeemed, calculated as if the maturity date of the Securities were the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection
and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life. 

 “Comparable Treasury Price” means, with respect to any redemption date, the average of
the Reference Treasury Dealer Quotations for such redemption date. 
 “Par Call Date” means August 16, 2027 (three months
prior to the maturity date). 
 “Quotation Agent” means one of the Reference Treasury Dealers appointed by the Company. 

“Reference Treasury Dealer” means each of Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and Morgan
Stanley & Co. LLC and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company will
substitute therefor another Primary Treasury Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the
Company and the Trustee by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such redemption date. 

“Treasury Rate” means, with respect to any redemption date, the rate per year equal to the semi-annual equivalent yield to maturity
or interpolated yield (on a day count basis) of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption
date. The Treasury Rate shall be calculated by the Quotation Agent on the third Business Day preceding such redemption date. 
 Any such
redemption may, at the Company’s discretion, be conditioned upon (i) the occurrence of a Change of Control (as defined below) or (ii) the closing of another transaction, including a sale of securities or other financing, in each case
as specified in the notice in reasonable detail. A notice of conditional redemption will be of no effect unless all conditions to the redemption have occurred on or before the redemption date or have been waived by the Company on or before the
redemption date. The Company will provide notice of the satisfaction of all conditions as soon as practicable following occurrence of the conditions. The Company will provide notice of any waiver of a condition or failure to meet such conditions no
later than the redemption date. 
 Change of Control 

Upon the occurrence of a Change of Control Triggering Event, unless the Company has otherwise exercised its right to redeem the Securities,
each holder of such Securities will have the right to require the Company to purchase all or a portion of such holder’s Securities pursuant to the offer described below (the “Change of Control Offer”), at a purchase price equal to
101% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the date of purchase, subject to the rights of holders of Securities on the relevant record date to receive interest due on the relevant Interest Payment
Date. 

 Within 30 days following the date upon which the Change of Control Triggering Event occurred, or
at the Company’s option, prior to any Change of Control but after the public announcement of the Change of Control, unless the Company has otherwise exercised the Company’s right to redeem the Securities, the Company shall deliver a notice
to each holder of Securities, with a copy to the Trustee, which notice will govern the terms of the Change of Control Offer. Such notice will state, among other things, the purchase date, which must be no earlier than 30 days nor later than 60 days
from the date such notice is sent, other than as may be required by law (the “Change of Control Payment Date”). The notice, if sent prior to the date of consummation of the Change of Control, will state that the Change of Control Offer is
conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date. Holders of Securities electing to have Securities purchased pursuant to a Change of Control Offer must surrender their Securities,
with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Security completed, to the Paying Agent at the address specified in the notice, or transfer their Securities to the Paying Agent by book-entry transfer
pursuant to the applicable procedures of DTC, before the close of business on the third Business Day prior to the Change of Control Payment Date. 

The Company will not be required to make a Change of Control Offer if a third party makes such an offer in the manner, at the times and
otherwise in compliance with the requirements for such an offer made by the Company and such third party purchases all Securities properly tendered and not withdrawn under its offer. 

If holders of not less than 90% in aggregate principal amount of the outstanding Securities validly tender and do not withdraw the Securities
in a Change of Control Offer and the Company, or any third party making a Change of Control Offer in lieu of the Company, purchases all of the Securities validly tendered and not withdrawn by such holders, the Company will have the right, upon not
less than 20 nor more than 60 days’ prior notice, given not more than 30 days following such purchase pursuant to the Change of Control Offer described above, to redeem all Securities that remain outstanding following such purchase at a
redemption price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the date of redemption (subject to the right of holders of record on the relevant record date to receive interest on the
relevant Interest Payment Date). 
 The Company will comply with the requirements of Rule 14e-1
under the Securities Exchange Act of 1934 (the “Exchange Act”) and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Securities
as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the change of control offer provisions of the Securities, the Company will comply with those securities
laws and regulations and will not be deemed to have breached its obligations under the change of control offer provisions of the Securities by virtue of any such conflict. 

 Except as described above with respect to a Change of Control Triggering Event, the holders of
the Securities shall not have any right to require the Company to repurchase or redeem the Securities in the event of a takeover, recapitalization, or similar transaction. 

As used herein: 
 “Below
Investment Grade Rating Event” means the rating on the Securities is lowered by each of the Rating Agencies and the Securities are rated below Investment Grade by each of the Rating Agencies on any day within the
60-day period (which 60-day period will be extended so long as the rating of the Securities is under publicly announced consideration for a possible downgrade by any of
the Rating Agencies) after the earlier of (1) the occurrence of a Change of Control or (2) public notice of the occurrence of a Change of Control or the Company’s intention to effect a Change of Control; provided that a Below
Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for
purposes of the definition of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Company and the Trustee in
writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control
shall have occurred at the time of the Below Investment Grade Rating Event). 
 “Change of Control” means the consummation of any
transaction (including without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), other than the Company or its subsidiaries, becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the combined voting power of the
Company’s Voting Stock or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged, or changed measured by voting power rather than number of shares, other than any such transaction where: 

(a) the Company’s outstanding Voting Stock is reclassified, consolidated, exchanged, or changed for other Voting Stock of
the Company or for Voting Stock of the surviving corporation, and 
 (b) the holders of the Company’s Voting Stock
immediately before that transaction own, directly or indirectly, not less than a majority of the Company’s Voting Stock or the Voting Stock of the surviving parent corporation immediately after such transaction and in substantially the same
proportion as their ownership in the Company before the transaction. 
 “Change of Control Triggering Event” means the occurrence
of both a Change of Control and a Below Investment Grade Rating Event. 
 “Fitch” means Fitch Ratings, Inc. and its successors.

 “Investment Grade” means a rating of BBB- or better by Fitch (or its equivalent under
any successor rating category of Fitch); a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating category of Moody’s); and a rating of BBB- or better by S&P (or its
equivalent under any successor rating category of S&P). 

 “Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s
Corporation, and its successors. 
 “Rating Agency” means (1) each of Fitch, Moody’s, and S&P, and (2) if any
of Fitch, Moody’s, or S&P ceases to rate the Securities or fails to make a rating of the Securities publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” as
defined in Section 3(a)(62) of the Exchange Act, selected by the Company (as certified by a resolution of the Company’s board of directors) as a replacement agency for Fitch, Moody’s, or S&P, or all of them, as the case may be.

 “S&P” means S&P Global Ratings, a division of S&P Global Inc., and its successors. 

“Voting Stock” of any specified person as of any date means the capital stock of such person that is at the time entitled to vote
generally in the election of the board of directors of such person. 
 Supplemental Indentures 

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in
aggregate principal amount of the Securities at the time outstanding of all series to be affected (voting as one class), evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the holders of the Securities of each such series; provided, however, that no such supplemental indenture shall
(i) extend the stated maturity of any Security, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of any interest thereon, or reduce any amount payable on redemption thereof or impair or affect the right
of any holder of Securities to institute suit for payment thereof or right of repayment, if any, at the option of a holder of the Securities, without the consent of the holder of each Security so affected, or (ii) reduce the percentage of
aggregate principal amount of Securities of any series or of all series (voting as one class), as the case may be, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of all outstanding
Securities of each such series so affected. 
 Denominations 

The Securities are in registered form without coupons in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 Exchange 
 This Global
Security shall be exchangeable for Securities registered in the names of persons other than the Depositary for such Global Security or its nominee only as provided in this paragraph. This Global Security shall be so exchangeable if (x) the
Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Global Security or if at 

 
any time such Depositary ceases to be a clearing agency registered as such under the Exchange Act, and the Company fails to appoint a successor Depositary for this Global Security within 90 days
after the Company receives such notice or becomes aware of such event, (y) the Company executes and delivers to the Trustee written instructions that this Global Security shall be so exchangeable, or (z) there shall have occurred and be
continuing an Event of Default or an event which, with the giving of notice or lapse of time, or both, would constitute an Event of Default with respect to the Securities. Securities so issued in exchange for this Global Security shall be of the
same series and of like tenor, in authorized denominations and in the aggregate having the same principal amount as this Global Security and registered in such names as the Depositary for such Global Security shall direct. 

Transfer 
 As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security register or registers of the Company, upon surrender of this Security for registration of transfer at the office or agency
of the Company in any place where the principal of and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security registrar, duly executed by the
registered holder hereof or its attorney duly authorized in writing, and thereupon on or more new Securities, and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or
transferees. At the date of the Indenture, such agency of the Company is located at the office of Wells Fargo Bank, National Association, at 1445 Ross Avenue, Suite 4300, Dallas, Texas 75202. 

No service charge shall be made for any such exchange or registration of transfer, but the Company or the Securities registrar may require
payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of
this Security for registration of transfer, the Company, the Trustee, and any agent of the Company or the Trustee may treat the person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. All payments made to or upon the order of such registered holder shall, to the extent of the sum or sums paid, effectually satisfy and
discharge liability for moneys payable on this Security. 
 Miscellaneous 

The Securities are not subject to any sinking fund. 

The Indenture contains provisions for defeasance of the entire indebtedness of the Securities upon compliance by the Company with certain
conditions set forth therein. 
 If an Event of Default with respect to the Securities shall occur and be continuing, the principal of the
Securities may be declared due and payable in the manner and with the effect provided in the Indenture. 

 All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture. 
 The Indenture and the Securities shall be governed by and construed in accordance with the laws of the
State of Texas. 

 Option of Holder to Elect Purchase 

If you want to elect to have this Security purchased by the Company pursuant to the Change of Control Offer of the Indenture, check the box
below: 
  

	
	                    ☐ Yes

 If you want to elect to have only part of the Security purchased by the Company pursuant to Change of Control
Offer of the Indenture, state the amount you elect to have purchased (in minimum denominations of $2,000 and integral multiples thereof of $1,000, except if you have elected to have all of your Securities purchased): $ 

 

					
	Date:	  	Your Signature:	  	
		  	(Sign exactly as your name appears on the Security)	  	
		  	Tax Identification No.:	  	

 Signature Guarantee* 

 

	*	NOTICE: The Signature must be guaranteed by an institution which is a member of one of the following recognized signature Guarantee Programs: (i) the Securities Transfer Agents Medallion Program (STAMP); (ii) the
New York Stock Exchange Medallion Signature Program (MSP); (iii) the Stock Exchanges Medallion Program (SEMP); or (iv) such other guarantee program acceptable to the Trustee.Exhibit 10.1

 

PLAN AND AGREEMENT OF MERGER

 

PLAN AND AGREEMENT
OF MERGER, dated as of September 30, 2016, by and between ADVANTAGE INSURANCE HOLDINGS LTD., a Cayman Islands limited
stock company, with its registered office located at 5th floor, Windward 3, Regatta Office Park, West Bay Road, PO Box 2185, Grand
Cayman KY1-1105, Cayman Islands (“AIH”), and ADVANTAGE INSURANCE INC., a Puerto Rico stock corporation, with
its registered office located at 254 Munoz Rivera Avenue, Oriental Plaza, P-1 floor, San Juan, Puerto Rico 00918 (“AII”).

 

Recitals

 

WHEREAS, AII is a stock corporation
duly organized and existing under the laws of the Commonwealth of Puerto Rico, having been incorporated on May 20, 2015 and having
an authorized capital stock consisting of ONE HUNDRED THOUSAND (100,000) shares of common stock with a par value of $0.01 per share,
of which 1,560 shares are issued and outstanding;

 

WHEREAS, AIH is a company limited
by shares duly organized and existing under the laws of the Cayman Islands, having been incorporated on October 22, 2012 and having
an authorized capital stock of ONE MILLION U.S. DOLLARS (U.S. $1,000,000) divided into SEVENTY THREE MILLION TWO HUNDRED FIFTY-THREE
THOUSAND ONE HUNDRED FIFTY-EIGHT (73,253,158) ordinary shares with a par value of U.S. $0.00682565 per share, and FIFTY MILLION
(50,000,000) preference shares with a par value of U.S. $ 0.01 per share, of which 365,199 ordinary shares are issued and outstanding,
and 7,701,721 preference shares are issued and outstanding and warrants to purchase 1,520,000 preference shares are issued and
outstanding;

 

WHEREAS, the Boards of Directors
of AII and AIH deem it advisable and in the best interest of their respective corporations to consummate, and have adopted and
approved, the merger of AIH with and into AII (the “Merger”) and other transactions contemplated hereby, upon the terms
and subject to the conditions set forth herein;

 

WHEREAS, the parties hereto intend
that for Puerto Rico income tax purposes, the Merger constitutes a tax free reorganization within the meaning of Section 1034.04(g)(1)(A)
and a tax free exchange pursuant to Section 1034.04(b)(3),(4) of the Puerto Rico Internal Revenue Code of 2011, as amended (the
“Code”); and

 

WHEREAS, the laws of the Cayman
Islands and of the Commonwealth of Puerto Rico permit such a merger, and the Constituent Corporations (as defined in Section 1
hereof) desire to merge under and pursuant to the provisions of Article 10.02 of the Puerto Rico General Corporation Law of 2009
(the “Law”).

 

NOW, THEREFORE, in consideration
of the foregoing and the respective representations, warranties, covenants and agreements set forth herein, the parties hereto
agree as follows:

 

    	Page 1 of 7

     

    

 

PLAN AND AGREEMENT OF MERGER

 (continued)

 

1.            The
Merger. Upon the terms and subject to the conditions hereof, as of the Effective Date (as defined in Section 3 hereof), AIH
shall be merged with and into AII, with AII continuing as the surviving corporation under the name Advantage Insurance Inc., and
the separate existence of AIH shall cease (AIH and AII are sometimes referred to herein as the “Constituent Corporations”;
AIH is sometimes referred to herein as the “Merged Corporation” and AII is sometimes referred to herein as the “Surviving
Corporation”).

 

2.           Certificate
of Merger. If this Agreement is duly adopted in compliance with the legal requirements for the Merger, as provided in Section
8 hereof, a Certificate of Merger, substantially in the form of Exhibit A, attached hereto and made a part hereof, executed in
accordance with Article 10.02 of the Law shall be filed with the Secretary of State of the Commonwealth of Puerto Rico.

 

3.            Effective
Date of the Merger. The merger shall become effective upon the filing of the Certificate of Merger with the Secretary of State
of Puerto Rico (the “Effective Date”).

 

4.           Certificate
of Incorporation; Bylaws: Rights and Restrictions attaching to Stock in Surviving Corporation.

 

(a)          On
the Effective Date, the certificate of incorporation of AII, the surviving corporation, shall be amended by deleting Paragraph
“Fourth” in its entirety and replacing the same with a new Paragraph “Fourth” to read as set forth in Exhibit
B annexed hereto and made a part hereof, and said certificate of incorporation of AII, as herein amended by deleting Paragraph
“Fourth” in its entirety and replacing the same with a new Paragraph “Fourth” to read as set forth in Exhibit
B annexed hereto and made a part hereof, may be separately certified as, the Certificate of Incorporation of the Surviving Corporation.

 

(b)          On
the Effective Date, the Bylaws of AII, the surviving corporation, shall be, and may be separately certified as, the Bylaws of the
Surviving Corporation.

 

5.            Directors and Officers of the Surviving Corporation.

 

(a)          The
Directors of AIH whose names appear below shall act as the Directors of the Surviving Corporation and shall serve in such
capacity until their successors shall have been duly elected and qualified. The address of each director is c/o
Advantage Insurance Inc., 254 Munoz Rivera Avenue, Oriental Plaza, 6th floor, San Juan, Puerto Rico, 00918.

 

Walter C. Keenan

 

Mark Moffat

 

Bruce W. Shewmaker

 

David A. Whitefield

 

Gary D. Witherspoon

 

(b)          The
following Director of AII shall resign as a Director of AII upon completion of the Merger. The address of this Director and Officer is c/o Advantage Insurance Inc., 254 Munoz Rivera Avenue, Oriental
Plaza, 6th floor, San Juan, Puerto Rico, 00918:

 

Matthew I. Lawson

 

    	Page 2 of 7

     

    

 

PLAN AND AGREEMENT OF MERGER

 (continued)

 

(c)          The following individuals shall be
appointed and elected Officers of AII, to the office indicated next to his or her name to serve until his or her successor shall
be duly elected or appointed, unless he or she resigns, is removed from office, or is otherwise disqualified from serving as an
officer of the Surviving Corporation, to take his or her respective office immediately upon completion of the Merger:

 

Walter C. Keenan - President and Chief Executive Officer

 

Matthew I. Lawson - Vice President and Treasurer

 

Eric A. Miller - Vice President and Secretary

 

Luz M. del Valle - Assistant Secretary

 

6.            Shares
of Constituent Corporations; Conversion. As of the Effective Date:

 

(a)          AIH
Shares. By virtue of the Merger and without any action on the part of the Shareholders of AIH, as of the Effective Date immediately
after the Merger: (i) the THREE HUNDRED SIXTY FIVE THOUSAND ONE HUNDRED NINETY-NINE (365,199) ordinary shares of AIH, par value
of U.S. $0.00682565 which are issued and outstanding on the Effective Date (the “AIH Ordinary Shares”), shall be converted
into THREE HUNDRED SIXTY FIVE THOUSAND ONE HUNDRED NINETY-NINE (365,199) shares of fully paid and nonassessable shares of common
stock of AII, each without par value (“AII Common Stock”); (ii) the SEVEN MILLION SEVEN HUNDRED ONE THOUSAND SEVEN
HUNDRED TWENTY- ONE (7,701,721) AIH preference shares, par value of U.S. $0.01 which are issued and outstanding on the Effective
Date (the “AIH Preference Shares”), shall be converted into SEVEN MILLION SEVEN HUNDRED ONE THOUSAND SEVEN HUNDRED
TWENTY-ONE (7,701,721) shares of fully paid and non-assessable shares of preferred stock of AII, par value $0.01 each (the “AII
Preferred Stock”).

 

(b)          Accrued
Dividends. By virtue of the Merger, each share of AII Common Stock and AII Preferred Stock shall be treated by AII for all
purposes with respect to any dividend accrual as if such share shall have been issued on the date originally issued by AIH. For
the avoidance of doubt, all dividends accrued but unpaid on shares of AIH Preference Shares prior to the Effective Date shall be
carried forward to the corresponding share of AII Preferred Stock on and following the Effective Date.

 

(c)          Existing
AII Stock Canceled. By virtue of the Merger, each share of common stock of AII, as the Surviving Corporation, which was issued
and outstanding on the Effective Date, shall be automatically canceled after the Effective Date.

 

    	Page 3 of 7

     

    

 

PLAN AND AGREEMENT OF MERGER

 (continued)

 

7.            Exchange
of Certificates. To the extent in physical format, each holder of a stock certificate or certificates representing outstanding
shares of AIH Ordinary Shares or AIH Preference Shares, immediately prior to the Effective Date shall, upon surrender of such certificate
or certificates to the Surviving Corporation after the Effective Date, be entitled to receive an AII Warrant, stock certificate
or certificates representing the number of shares of AII Common Stock and AII Preferred Stock, into which such shares of AIH Ordinary
Shares and AIH Preference Shares, have been converted as provided in Section 6 (a) above. Until so surrendered, each stock certificate
which prior to the Effective Date, represented either shares of AIH Ordinary Shares or AIH Preference Shares shall be deemed for
all purposes to evidence ownership of the number of shares of AII Common Stock and AII Preferred Stock, into which those shares
of AIH Ordinary Shares or AIH Preference Shares have been converted, regardless of whether physical certificates or warrants are
actually surrendered.

 

8.            Legal
Requirements to Merger; Further Assurances.

 

(a)          Subject to the terms and provisions
of this Plan and Agreement of Merger, each of AII and AIH has taken, all reasonable actions necessary to comply promptly with all
legal requirements which may be imposed on them with respect to the Merger and have promptly cooperated with and furnished information
to each other in connection with any such requirements imposed upon any of them in connection with the Merger. Each of AII and
AIH have taken all reasonable actions necessary to obtain (and will cooperate with each other in obtaining) any consent, authorization,
order or approval of, or any exemption by, any governmental entity or other public or private third party, required to be obtained
or granted in connection with the Merger or the taking of any action contemplated by this Plan and Agreement of Merger.

 

(b)          After
the Effective Date, each of AII and AIH will take all appropriate action and execute all documents, instruments or conveyances
which may be reasonably necessary to carry out the provisions hereof, including, without limitation, vesting in the Surviving Corporation
its right, title and interest in and to the properties and assets of the Constituent Corporations acquired by AII as the Surviving
Corporation.

 

(c)          AIH
and AII acknowledge and manifest that no amount or benefit is payable or otherwise due by either AIH or AII to a director or officer
of each respective entity as a result or in respect to the Merger.

 

9.            Effect of Merger. As of the Effective Date:

 

(a)          The
Surviving Corporation shall possess all of the rights, privileges, powers and franchises of a public as well as of a private nature,
and shall be subject to all the restrictions, disabilities, obligations and duties of each of the Constituent Corporations, except
as otherwise herein provided, and except as otherwise provided by law;

 

(b)          The
Surviving Corporation shall be vested, without further action, with all property, be it real, personal, or mixed, and all debts
due to the Constituent Corporations on whatever account as well as all other things in action or belonging to the Constituent Corporations;
and

 

    	Page 4 of 7

     

    

 

PLAN AND AGREEMENT OF MERGER

(continued)

 

(c)          All
property, rights, privileges, powers and franchises of the Constituent Corporations shall be thereafter effectively the property
of the Surviving Corporation as they originally were of the Constituent Corporations, but all rights of creditors and all liens
upon any property of any of the Constituent Corporations shall be preserved unimpaired, and all debts, liabilities, obligations,
and duties of the Constituent Corporations shall thenceforth attach to, and may be enforced against the Surviving Corporation to
the same extent as if such debts, liabilities, obligations and duties had been incurred or contracted by it.

 

10.          Dissenters’
Rights.

 

(a)         AII as the Surviving Corporation accepts
the obligations of AIH set out under Section 238 of the Companies Law (2013 Revision) of the Cayman Islands with respect to the
rights of shareholders who have provided written notice to AIH dissenting from the Plan and Agreement of Merger prior to the commencement
of the meeting of shareholders of AIH to which the Plan and Agreement of Merger has been submitted for a vote.

 

11.          Business
Purpose.

 

(a)          AIH
and AII have entered into this Plan and Agreement of Merger for the purpose of (i) simplifying its overall corporate structure;
(ii) maximizing the use of its assets and maximizing its operating efficiencies; (iii) relocating its corporate headquarters in
the location of its fastest-growing subsidiaries; and (iv) reducing corporate overhead costs.

 

(b)          The
parties hereto intend that for Puerto Rico income tax purposes, the Merger constitutes a tax free reorganization and the exchanges
thereof pursuant to Section 1034.04(g)(1)(A) and Section 1034.04(b)(3),(4) of the Code.

 

12.          Miscellaneous.

 

(a)          Headings.
When a reference is made in this Plan and Agreement of Merger to a Section, such reference shall be to a Section of this Plan and
Agreement of Merger unless otherwise indicated. The headings contained in this Plan and Agreement of Merger are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Plan and Agreement of Merger.

 

(b)          Entire
Agreement; No Third Party Beneficiaries; Rights of Ownership. This Plan and Agreement of Merger (including the documents, exhibits
and instruments referred to herein) (i) constitutes the entire agreement and supersedes all prior agreements, and understandings
and communications, both written and oral, among the parties with respect to the subject matter hereof, and (ii) is not intended
to confer upon any person other than the parties hereto any rights or remedies hereunder.

 

(c)          Governing
Law. This Plan and Agreement of Merger shall be governed and construed in accordance with the laws of the Commonwealth of Puerto
Rico, without regard to any applicable principles of conflicts of law.

 

(d)         Assignment.
Neither this Plan and Agreement of Merger nor any of the rights, interests or obligations hereunder shall be assigned by any of
the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other party. Subject to
the preceding sentence, this Plan and Agreement of Merger will be binding upon, inure to the benefit of and be enforceable by the
parties and their respective successors and assigns.

 

    	Page 5 of 7

     

    

 

PLAN AND AGREEMENT OF MERGER

(continued)

 

(e)          Severability.
If any term or other provision of this Plan and Agreement of Merger is invalid, illegal or incapable of being enforced by reason
of any rule of law or public policy, all other conditions and provisions of this Plan and Agreement of Merger shall nevertheless
remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected
in any adverse manner to either party. Upon such determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify this Plan and Agreement of Merger so as to effect
the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated
hereby are fulfilled to the extent possible, and in any case such term or provision shall be deemed amended to the extent necessary
to make it no longer invalid, illegal or unenforceable.

 

(f)          Counterparts.
This Plan and Agreement of Merger may be executed in multiple counterparts, each of which shall be deemed an original and all of
which taken together shall constitute one and the same document.

 

(g)         Secured
Creditors. Neither of the Constituent Corporations has any secured creditors.

 

(h)         Regulatory
Approvals. Notwithstanding any other provision of the Plan and Agreement of Merger, the Merger shall be subject to
and conditional upon the approval of the Merger by the Cayman Islands Monetary Authority and the Office of the
Commissioner of Insurance of Puerto Rico. If such approvals shall not be obtained by December 31,2016, this Plan and
Agreement of Merger shall be deemed to have lapsed.

 

[SIGNATURE PAGE TO FOLLOW]

 

    	Page 6 of 7

     

    

 

PLAN AND AGREEMENT OF MERGER

 

SIGNATURE PAGE

 

THE ABOVE PLAN AND AGREEMENT OF MERGER,
having been adopted and approved by a majority of the Board of Directors of each constituent corporate party thereto, in accordance
with the provisions of Section 10.02 of the General Corporation Law of 2009, the President and the Secretary or other duly authorized
Officer of each constituent corporate party thereto do now hereby execute the said Plan and Agreement of Merger under the corporate
seals of their respective Constituent Corporations, by authority of the Directors as the respective act, deed and agreement of
each of said Constituent Corporations, all as of the date first above written.

 

	(CORPORATE SEAL)	ADVANTAGE INSURANCE INC.
	 	(The Surviving Corporation)
	 	 	 
	 	/s/ Walter C. Keenan
	ATTEST:	BY:	Walter C. Keenan
		 	President
	 	 	 
	 	/s/
    Matthew I. Lawson
	 	BY:	Matthew I. Lawson
	 	 	Senior Vice President
	 	 	 
	(CORPORATE SEAL)	ADVANTAGE INSURANCE HOLDINGS LTD.
	 	(The Merged Corporation)
	 	 	 
	 	/s/ Walter C. Keenan
	ATTEST:	BY:	Walter C. Keenan
		 	President
	 	 	 
	 	/s/ Matthew I. Lawson
	 	BY:	Matthew I. Lawson
	 	 	Senior Vice President

 

    	Page 7 of 7

     

    

 

CERTIFICATE OF THE SENIOR VICE PRESIDENT
OF

ADVANTAGE INSURANCE HOLDINGS LTD.

 

I, Matthew Lawson, Senior Vice President
of ADVANTAGE INSURANCE HOLDINGS LTD. (“AIH”) a limited company organized and existing under the laws of the Cayman
Islands, hereby CERTIFY, as such Senior Vice President and under the seal of AIH that the Plan and Agreement of Merger to which
this Certificate is attached, after having been first duly adopted on behalf of AIH by a majority of the directors thereof, and
having been signed by its Director, was duly approved by the shareholders in accordance with the requirements of AIH’s Articles
of Association, which Plan and Agreement of Merger was thereby adopted as the Act of the shareholders of said limited company,
and the duly adopted Plan and Agreement of Merger and Act of AIH.

 

WITNESS, my hand and seal of said
ADVANTAGE INSURANCE HOLDINGS LTD., on this 30th the day of September, 2016.

 

	ADVANTAGE INSURANCE HOLDINGS LTD.
	 	 
	By:	/s/ Matthew Lawson
	 	Matthew Lawson
	 	Senior Vice President

 

     

     

    

 

CERTIFICATE OF THE SENIOR VICE PRESIDENT
OF

ADVANTAGE INSURANCE INC.

 

I, Matthew Lawson, Senior Vice President
of ADVANTAGE INSURANCE INC. (“AII”) a corporation organized and existing under the laws of the Commonwealth of Puerto
Rico, hereby CERTIFY, as such Senior Vice President and under the seal of AII, that the Plan and Agreement of Merger to which this
Certificate is attached, after having been first duly adopted on behalf of AII by a majority of the directors thereof, and having
been signed by its PRESIDENT, was duly adopted pursuant to Article 7.17 of the Puerto Rico General Corporation Law of 2009, by
the unanimous written consent of its sole shareholder, ADVANTAGE INSURANCE HOLDINGS LTD., which Plan and Agreement of Merger was
thereby adopted as the Act of the stockholder of said corporation, and the duly adopted Plan and Agreement of Merger and Act of
AII.

 

WITNESS my hand and seal of said
ADVANTAGE INSURANCE INC., on this 30th day of September, 2016.

 

	ADVANTAGE INSURANCE INC.
	 	 
	By:	/s/ Matthew Lawson
	 	Matthew Lawson
	 	Senior Vice President

 

     

     

    

 

[SEAL]

 

 

CERTIFICATE OF MERGER

OF A DOMESTIC CORPORATION

AND A

FOREIGN LIMITED COMPANY

 

CERTIFICATE OF MERGER

OF

ADVANTAGE INSURANCE HOLDINGS LTD.

INTO

ADVANTAGE INSURANCE INC.

 

The undersigned corporation organized and
existing under the laws of the Commonwealth of Puerto Rico, by virtue Article 10.02 of the General Corporation Law of 2009 of the
Commonwealth of Puerto Rico.

 

DOES HEREBY CERTIFY:

 

FIRST: That the name and jurisdiction
of incorporation of each of the constituent corporations of the merger is as follows:

 

	Name	 	Place of Incorporation	 	Registration No.
	ADVANTAGE INSURANCE HOLDINGS LTD.	 	Cayman Islands	 	SC 272628
	ADVANTAGE INSURANCE INC.	 	Puerto Rico	 	354004

 

SECOND: That a plan and agreement
of merger between the parties to the merger has been approved, adopted, certified, executed and acknowledged by each of the constituent
corporations in accordance with the requirements of Part XVI of the Companies Law (2013 Revision) of the Cayman Islands, and Article
10.02 of the Puerto Rico General Corporation Law of 2009.

 

THIRD: That the name of the surviving
corporation of the merger is ADVANTAGE INSURANCE INC., Puerto Rico Department of State Registration Number 354004.

 

FOURTH: On the Effective Date, the
certificate of incorporation of ADVANTAGE INSURANCE INC., the surviving corporation, shall be amended by deleting
Paragraph “Fourth” in its entirety and replacing the same with a new Paragraph “Fourth” to read as set
forth in Exhibit A annexed hereto and made a part hereof, and said certificate of incorporation of ADVANTAGE INSURANCE INC., as
herein amended by deleting Paragraph “Fourth” in its entirety and replacing the same with a new Paragraph “Fourth”
to read as set forth in Exhibit A annexed hereto and made a part hereof, may he separately certified as the Certificate of Incorporation
of the Surviving Corporation.

 

     

     

    

 

FIFTH: That the executed plan and
agreement of merger is on file at the registered office of the surviving corporation. The registered address of the surviving corporation,
is located at Oriental Center, 254 Muñoz Rivera Ave., Sixth Floor; San Juan, Puerto Rico, 00918.

 

SIXTH: That the effective date of
the Merger shall be upon the filing of the Certificate of Merger with the Secretary of State of Puerto Rico (the “Effective
Date”).

 

SEVENTH: That a copy of the plan
and agreement of merger will be furnished by the surviving corporation, on request and without cost to any stockholder of any Constituent
Corporation.

 

I, WALTER C. KEENAN, President of ADVANTAGE
INSURANCE INC., the surviving corporation, hereby swear that the statements contained herein are true.

 

Given as of the 30th day of
September 2016.

 

	 	ADVANTAGE INSURANCE INC.
	 	 	 
	 	By:	/s/ WALTER C. KEENAN
	 	 	WALTER C. KEENAN
	 	 	President

 

     

     

    

 

EXHIBIT A

 

FOURTH:

 

1.            The
total number of shares of stock of all classes which the Corporation has authority to issue is 123,253,158 shares of stock, which
shall be divided into 73,253,158 shares of Common Stock with a par value of U.S. $0.01 each, and 50,000,000 shares of Preferred
Stock with a par value of U.S. $0.01 each.

 

2.            Subject
to any applicable provisions in the Certificate of Incorporation of the Corporation and Sub-paragraph 3, below, and without prejudice
to any special rights previously conferred on the holders of existing shares, any share may be issued with such preferred, deferred,
or other special rights, or such restrictions, whether in regard to dividend, voting, return of stock capital or otherwise, as
the Corporation may from time to time by Special Resolution determine, and subject to the provisions of Article 5.01 of
the General Corporation Law, any share may, with the sanction of a Special Resolution, be issued on the terms that it is, or at
the option of the Corporation or the holder is liable, to be redeemed.

 

3.             Except
as otherwise provided in this Certificate of Incorporation, all shares for the time being and from time to time unissued shall
be under the control of the Directors, and may be redesignated, allotted, issued or otherwise disposed of in such manner and on
such terms as the Directors, in their absolute discretion, may think fit. The Directors may issue shares in separate classes and
may issue shares of any class in different series. The Directors may in their sole and absolute discretion accept subscriptions
for shares of any class or series either in cash, in kind or part in cash and part in kind. If any subscription is made wholly
or partly in kind it shall be made in such manner and upon such terms as the Directors in their sole and absolute discretion shall
determine. Nothing contained in this Paragraph Fourth shall permit the Directors, except with Preferred Stockholder Consent, to
issue preferred shares, or shares with other special rights, which rank in priority to the Preferred Stock.

 

4.             The
Corporation shall not issue Stock to bearer.

 

5.             The
Corporation may, in so far as may be permitted by law, pay a commission to any person in consideration of his subscribing or agreeing
to subscribe whether absolutely or conditionally for any shares. Such commissions may be satisfied by the payment of cash or the
lodgement of fully or partly paid-up shares or partly in one way and partly in the other. The Corporation may also on any issue
of shares pay such brokerage as may be lawful.

 

6.             The Directors shall keep or cause
to be kept a stock ledger as provided in Article 7.09 of the General Corporation Law at such place or places (outside the United
States) as the Directors may from time to time determine, and in the absence of any such determination, the stock ledger shall
be kept at the registered office of the Corporation. The Corporation shall not be bound to register more than four persons as the
joint holders of any share or shares.

 

7.             The Directors may at any time create Units and any such Units shall be under the control of the Directors, and may be issued
or otherwise disposed of in such manner and on such terms (including, without limitation, with regard to voting, distribution,
transfer, repurchase or the exercise of any warrant component of the Unit) as the Directors, in their absolute discretion, may
think fit. The Directors may issue Units in separate classes and may issue Units of any class in different series.

 

     

     

    

 

EXHIBIT A

 

PREFERRED STOCK

 

8.             The rights and restrictions attaching to the Preferred
Stock are as follows:

 

8.1          Dividends
on Preferred Stock.

 

Each share of Preferred Stock confers on
its holder the right to a fixed cumulative preferential dividend (the “Preferred Dividend”) at an annual rate equal
to 8.0% of the aggregate of the Subscription Price and accrued but unpaid dividends on each share of Preferred Stock. Subject to
the right of the Directors to declare and pay a Preferred Dividend at any time, the Preferred Dividend shall accrue calendar quarterly
in arrears commencing on the expiry of the first calendar quarter after the Issue Date of the relevant Preferred Stock and accruing
as from the first day of the next month after the Issue Date rather than as from the Issue Date itself and shall compound annually
and shall be paid upon the Repurchase Date in respect of the period from the Issue Date of the relevant Preferred Stock up to and
including the Repurchase Date. The right to the Preferred Dividend has priority over the dividend rights of the holders of any
other class of shares and no dividend may be declared and paid upon any of the Common Stock or any shares of any other class whilst
any Preferred Stock is outstanding and if a dividend is so declared or paid in breach of this restriction, holders of Preferred
Stock will participate in such dividend on an as-converted basis.

 

8.2          Voting
on Preferred Stock.

 

Holders
of Preferred Stock have the right to receive notice of, attend and speak at general meetings of the Corporation. On any vote
at a general meeting the votes held by holders of Preferred Stock may only be cast as a single block of all votes held and
not individually by a holder of Preferred Shares and the decision as to how such single block of votes shall be cast and by
which holder of Preferred Stock on behalf of all holders of Preferred Stock shall be determined by holders of Preferred Stock
prior to the relevant general meeting by means of a Preferred Stockholder Consent. Following such determination the holder of
Preferred Stock elected to cast the votes at the general meeting shall appoint the chairman of the general meeting as proxy
for all holders of Preferred Stock and shall direct the chairman on each vote at the general meeting to cast all votes held
by the holders of Preferred Stock in accordance with the determination made by the Preferred Stockholder Consent. The total
votes held by the holders of (Preferred Stock at a general meeting shall be such number of votes as if each and every
holder of Preferred Stock had converted his Preferred Stock into Common Stock on the day immediately prior to such general
meeting provided that if such a conversion would mean that the number of votes held by any Preferred Stockholder together
with persons whose shares would be attributable to such Preferred Stockholder pursuant to the rules of beneficial ownership
under the United States Securities Exchange Act of 1934, as amended (the “1934 Act”) would constitute more than
9.9% of the total votes capable of being cast by all Stockholders at a general meeting of the Corporation, the number of votes
held by such holder and all other holders of Preferred Stock shall be automatically reduced on a pro rata basis so that no
holder of Preferred Stock, together with persons whose shares would be attributable to such Preferred Stockholder as
aforesaid, holds more than 9.9% of such total votes. Under no circumstances shall any Stockholder, whether a holder of Common
Stock, a holder of Preferred Stock or a holder of both Common Stock and Preferred Stock, together with persons whose shares
would be attributable to such holder pursuant to the rules of beneficial ownership under the 1934 Act, be capable of casting
more than 9.9% of the total votes capable of being cast by all Stockholders at a general meeting of the Corporation.

 

     

     

    

 

EXHIBIT A

 

8.3           Return
of Capital on Liquidation.

 

On a return of assets on the making of
a winding-up order against the Corporation or the passing of valid resolution that the Corporation be wound up (a “Liquidation”),
reduction of capital or otherwise (other than on a repurchase of shares), the assets of the Corporation available for distribution
among the Stockholders shall be applied in paying to the Preferred Stockholders, in priority to any payment to the holders of any
other class of shares, the greater of:

 

(i)            the
Subscription Price in respect of each share of Preferred Stock plus a sum equal to any accrued and/or unpaid Preferred Dividend
calculated up to and including the date of return of capital; and

 

(ii)           the
amount a holder of Preferred Stock would have been entitled to had his/its Preferred Stock been converted to Common Stock, immediately
prior to the commencement of a Liquidation.

 

8.4          Further
Participation.

 

The Preferred Stock do not confer any further
right of participation in the profits or assets of the Corporation.

 

8.5          Annual
Repurchase of Preferred Stock.

 

Subject to the General Corporation Law,
the Corporation may repurchase from time to time Preferred Stock at a price per share equal to 100% of the as-converted book value
per Preferred Stock as shown in the latest available quarterly or annual financial statements of the Corporation and in the event
of competition between the Preferred Stockholders such that the Corporation is not able to repurchase all Preferred Stock offered
by Preferred Stockholders for repurchase, the Corporation shall repurchase such Preferred Stock on a pro-rata basis.

 

8.6          Mandatory
Repurchase offer of Preferred Stock.

 

If neither (i) a sale of a controlling
interest in the Corporation, or (ii) a listing of the Corporation’s Common Stock for trading on a regulated securities exchange
as the Directors shall approve (such sale or listing, a “Liquidity Event”) shall have occurred by May 31, 2018, the
Corporation shall, subject to the General Corporation Law, commence a tender offer for all outstanding Preferred Stock. The lender
offer price per share will be equal to 100% of the as-converted book value per Preferred Stock as shown in the financial statements
of the Corporation for the year ended December 31, 2017. The Corporation shall commence the tender offer not later than October
1, 2018 and the tender offer shall be completed on or before December 1, 2018.

 

     

     

    

 

EXHIBIT A

 

8.7          Compulsory Repurchase.

 

If the Directors
in their absolute discretion determine that the ownership of Preferred Stock by any Preferred Stockholder may result in adverse
tax, regulatory or legal consequences to the Corporation, any of its subsidiaries or any
other Stockholder the Corporation shall, subject to the provisions of this Certificate of Incorporation and the General Corporation
Law have the option, but not the obligation, to repurchase all or any part of the Preferred Stock held by such Preferred Stockholder
to the extent that the Directors determine it is necessary or advisable to avoid or cure any adverse or potential adverse consequences
at a price per share at a price equal to 100% of the as-converted book value per Preferred Stock as shown in the financial statements
of the Corporation for the year ended on the December 3lst immediately preceding the Repurchase Date.

 

8.8          Provisions applying to Annual
Repurchase, Mandatory Repurchase and Compulsory Repurchase

 

a)           On
the relevant date on which any Preferred Stock are repurchased by the Corporation pursuant to Sub-paragraphs 8.5, 8.6, or 8.7 (the
“Repurchase Date”) or reasonably promptly thereafter, the Corporation shall in any manner permitted by the Companies
Law, including out of capital, pay in cash in respect of each share of Preferred Stock to be repurchased the purchase price as
determined in accordance with Sub-paragraphs 8.5, 8.6 or 8.7, as the case may be. The amount payable in respect of all the Preferred
Stock to be repurchased is referred to hereinafter as the “repurchase monies”.

 

b)           On
the Repurchase Date, the repurchase monies shall become a debt due and payable by the Corporation to each Preferred Stockholder,
whether or not the Corporation has enough profits available for distribution or other requisite funds to pay the repurchase monies.

 

c)           On the Repurchase Date, the repurchase
monies shall be paid to each Preferred Stockholder in respect of those Preferred Stock which are to be repurchased against receipt
of the relevant stock certificate (if issued) or an indemnity in a form reasonably satisfactory to the Corporation in respect of
a stock certificate which cannot be produced. If a Preferred Stockholder produces neither the stock certificate nor an indemnity,
the Corporation may retain his repurchase monies until delivery of the certificate or such an indemnity.

 

d)           The Corporation shall cancel stock certificates
(if issued) in respect of repurchased Preferred Stock and issue new certificates without charge in respect of any Preferred Stock
represented by those certificates that remain outstanding.

 

e)           As from the relevant Repurchase Date,
the Preferred Dividend shall cease to accrue on the Preferred Stock to be repurchased.

 

(f)           Notwithstanding
that the repurchase monies in respect of any repurchase of Preferred Stock is not paid in full on the Repurchase Date, such
Preferred Stock shall be deemed to be repurchased on the Repurchase Date, the relevant Preferred Stockholder shall as from
the Repurchase Date cease to be a holder of such Preferred Stock and shall have no continuing rights in relation to such
Preferred Stock and the relevant Preferred Stockholder’s name shall be removed from the register of members of the Corporation
with respect thereto as of the Repurchase Date. Notwithstanding that the relevant Preferred Stockholder’s name shall
not be removed from the register of members of the Corporation with respect thereto until after the Repurchase Date, he shall
still be deemed to have ceased to be a member of the Corporation with respect thereto on the Repurchase Date and the register
of members of the Corporation shall reflect that accordingly.

 

     

     

    

 

EXHIBIT A

 

8.9            Conversion
of Preferred Stock

 

Each share of Preferred Stock shall be convertible and re-designable
as follows:

 

a)           all Preferred Stock shall automatically
convert into Common Stock upon the earlier of a Liquidity Event and December 31, 2018 (a “Mandatory Conversion”);

 

b)           any
Preferred Stockholder may elect at any time to convert all but not some only of his Preferred Stock into Common Stock of the Corporation
(a “Voluntary Conversion”);

 

c)           The number of shares of Common Stock
into which the Preferred Stock shall convert pursuant to a Mandatory Conversion or a Voluntary Conversion shall be based upon the
following formula:

 

Subscription Price of Preferred Stock
+ Accrued but Unpaid Preferred Dividends

Subscription Price of Preferred Stock

 

provided that such conversion methodology
shall be equitably adjusted in such manner as the Directors shall determine in the event of any Recapitalization of the Corporation
or any amalgamation or other reorganization of the Corporation with another company;

 

d)           in order to effect a Voluntary Conversion,
a Preferred Stockholder shall serve the Corporation with written notice (a “Voluntary Conversion Notice”) specifying
the number of shares of Preferred Stock to be converted pursuant to the Voluntary Conversion and a date no less than 14 days later
(the “Voluntary Conversion Date”) on which the Voluntary Conversion is to take place;

 

e)           as
from the relevant Mandatory Conversion Date or Voluntary Conversion Date (as applicable), the Preferred Dividend shall cease to
accrue, the already accrued Preferred Dividend up to the relevant Mandatory Conversion Date or Voluntary Conversion Date shall
fall away and no Preferred Dividend shall under any circumstances be payable in respect of the Preferred Stock to be converted.

 

f)            in the case of a Mandatory Conversion
or Voluntary Conversion, the relevant Preferred Stockholder, shall be required to deliver up the relevant stock certificate
(if issued) or an indemnity in a form reasonably satisfactory to the Corporation in respect of a stock certificate which cannot
be produced. If a Preferred Stockholder produces neither the stock certificate nor an indemnity, the Corporation may retain the
certificate for the Common Stock into which such Preferred Stock are to be converted (if a certificate is to be issued) until delivery
of the certificate or an indemnity; and

 

     

     

    

 

EXHIBIT A

 

g)           the Corporation shall cancel stock certificates
(if issued)  in respect of the Preferred Stock which have converted into Common Stock and, where relevant, issue new certificates
without charge in respect of any Preferred Stock represented by those certificates that remain outstanding.

 

8.10        Restrictions on Transfer

 

Without prejudice to any other restrictions
on the transfer of Preferred Stock set out in this Certificate of Incorporation, no transfer of Preferred Stock shall be permitted
if the Directors are of the opinion that such transfer may give rise to any adverse tax, regulatory or legal consequences to the
Corporation, any of its subsidiaries or any of the Stockholders. Any purported transfer of Preferred Stock in breach of this Sub-paragraph
8.10 shall be void and of no effect and shall not be registered in the Register of Members.

 

COMMON STOCK

 

9.            The rights and restrictions attaching to the Common
Stock are as follows:

 

9.1          Dividends on Common
Stock

 

Holders of Common Stock of any particular
class or series shall, subject to the Preferred Dividend, be entitled to such dividends as the Directors may in their absolute
discretion lawfully declare and/or otherwise determine to be due provided that no dividend shall be declared or paid for so long
as there shall be any outstanding Preferred Stock and if a dividend is so declared or paid in breach of this restriction, holders
of Preferred Stock will participate in such dividend on an as-converted basis. Save where a particular class or series ranks pari
passu in respect of dividends, the Directors may declare a dividend payable in respect of any class or series of Common Stock without
declaring a dividend payable in respect of any other class or series of Common Stock.

 

9.2          Voting on Common Stock

 

Holders of Common Stock have the right
to receive notice of, attend, speak and vote at general meetings of the Corporation and every holder of Common Stock and every
person representing a holder of Common Stock by proxy shall have one vote for each share of Common Stock of which be or the person
represented by the proxy is the holder provided that irrespective of the number of Common Stock held by any Common Stockholder,
no Common Stockholder shall together with persons whose shares would be attributable to such Common Stockholder pursuant to the
rules of beneficial ownership under the 1934 Act hold in aggregate more than such number of votes as shall be equal to 9.9% of
the total votes capable of being cast by all Stockholders at a general meeting of the Corporation. Under no circumstances shall
any Stockholder, whether a holder of Common Stock, a holder of Preferred Stock or a holder of both Common Stock and Preferred Stock,
together with persons whose shares would be attributable to such holder pursuant to the rules of beneficial ownership under the
1934 Act, be capable of casting more than 9.9% of the total votes capable of being cast by all Stockholders at a general
meeting of the Corporation.

 

     

     

    

 

EXHIBIT A

 

9.3           Return
of Capital on Liquidation

 

Subject to the rights of the Preferred
Stockholders, on a return of capital on a Liquidation, reduction of capital or otherwise (other than on a repurchase of shares),
the balance of any assets available for distribution among the Stockholders, subject to any special rights which may be attached
to any other class of stock, shall be distributed among the Common Stockholders rateably according to the numbers of Common Stock
held by them respectively pro rata to their nominal amount.

 

9.4           Restrictions
on Transfer

 

Without prejudice
to any other restrictions on the transfer of Common Stock set out in these Articles, no transfer of Common Stock shall be permitted
if the Directors are of the opinion that such transfer may give rise to any adverse tax, regulatory or legal consequences to the
Corporation, any of its subsidiaries or any of the Stockholders. Any purported transfer of Common Stock in breach of this Sub-paragraph
9.4 shall be void and of no effect and shall not be registered in the Register of Members.

 

9.5          Compulsory Repurchase

 

a)           If the Directors in their absolute discretion
determine that the ownership of Common Stock by any Common Stockholder may result in adverse tax, regulatory or legal consequences
to the Corporation, any of its subsidiaries or any other Stockholder, the Corporation shall, subject to the provisions of this
Certificate of Incorporation and the General Corporation Law have the option, but not the obligation, to repurchase all or any
part of the Common Stock held by such Common Stockholder to the extent that the Directors determine it is necessary or
advisable to avoid or cure any adverse or potential adverse consequences at a price per share equal to the fair value of the Common
Stock as determined by the Directors (the “Fair Value”). The amount payable in respect of all the Common Stock to be
repurchased is referred hereinafter to as the “repurchase monies”.

 

b)           On the relevant Repurchase Date, the
Corporation shall in any manner permitted by the General Corporation Law, including out of capital, pay the Fair Value in
cash in respect of the Common Stock to be repurchased.

 

c)           On the Repurchase Date, the repurchase monies shall become
a debt due and payable by the Corporation to the Common Stockholder, whether or not the Corporation has enough profits available
for distribution or other requisite funds to pay the repurchase monies.

 

d)           On the Repurchase Date or reasonably
thereafter, the repurchase monies shall be paid to the Common Stockholder in respect of those Common Stock which are to be repurchased
against receipt of the relevant stock certificate (if issued) or an indemnity in a form reasonably satisfactory to the Corporation
in respect of a stock certificate which cannot be produced. If the Common Stockholder produces neither the stock certificate nor
an indemnity, the Corporation may retain his repurchase monies until delivery of the certificate or such an indemnity.

 

     

     

    

 

EXHIBIT A

 

e)             The Corporation shall cancel stock certificates
in respect of repurchased Common Stock (if issued) and issue new certificates without charge in respect of any Common Stock represented
by those certificates that remain outstanding.

 

f)             Notwithstanding that the repurchase
monies in respect of any repurchase of Common Stock is not paid in full on the Repurchase Date, such Common Stock shall be deemed
to be repurchased on the Repurchase Date, the relevant Common Stockholder shall as from the Repurchase Date cease to be a holder
of such Common Stock and shall have no continuing rights in relation to such Common Stock and the relevant Common Stockholder’s
name shall be removed from the register of members of the Corporation with respect thereto as of the Repurchase Date. Notwithstanding
that the relevant Common Stockholder’s name shall not be removed from the register of members of the Corporation with respect
thereto until after the Repurchase Date, he shall still be deemed to have ceased to be a member of the Corporation with respect
thereto on the Repurchase Date and the register of members of the Corporation shall reflect that accordingly.

 

FRACTIONAL SHARES

 

10.         The
Directors may issue fractions of a share up to such number of decimal places as they shall determine of any class or series of
shares, and, if so issued, a fraction of a share shall be subject to and carry the corresponding fraction of liabilities
(whether with respect to any unpaid amount thereon, contribution, calls or otherwise), limitations, preferences, privileges, qualifications,
restrictions, rights (including, without limitation, voting and participation rights) and other attributes of a whole share of
the same class or series of shares.

 

REPURCHASE OF STOCK

 

11.         Subject
to the provisions of the General Corporation Law and this Certificate of Incorporation, the Corporation may purchase its own shares
and the Directors may determine the manner or any of the terms of, any such purchase. The Corporation may make a payment in respect
of the purchase of its own shares in any manner permitted by the General Corporation Law, including out of capital.

 

VARIATION OF RIGHTS ATTACHING TO STOCK

 

12.         The
rights attaching to any class or series of stock (unless otherwise provided by this Certificate of Incorporation or the terms
of issue of the stock of that class or series) may be varied or abrogated with the consent in writing of the holders of three-fourths
of the issued stock of that class or series, or with the sanction of a resolution passed by at least a three-fourths majority
of the holders of stock of the class or series present in person or by proxy and entitled to vote at a separate meeting of the
holders of the stock of the class or series. To every such separate general meeting the provisions of this Certificate of Incorporation
relating to general meetings of the Corporation shall mutatis mutandis apply, but so that the necessary quorum shall, unless otherwise
provided by this Certificate of Incorporation, be at least two persons holding or representing by proxy at least
one-third of the issued stock of the class or series and that any holder of stock of the class or series present in person or
by proxy may demand a poll.

 

     

     

    

 

EXHIBIT A

 

CERTIFICATES FOR STOCK

 

13.         A
Stockholder shall only be entitled to a stock certificate if the Directors resolve that stock certificates shall be issued. Stock
certificates representing shares, if any, shall be in such form as the Directors may determine. Stock certificates shall be signed
by one or more Directors or another person authorized by the Directors. The Directors may authorize certificates to be issued with
the authorized signature(s) affixed by mechanical process. All certificates for stock shall be consecutively numbered or otherwise
identified and shall specify the stock to which they relate.

 

14.         The
Corporation shall not be bound to issue more than one certificate for Stock held jointly by more than one person and delivery of
a certificate to one joint holder shall be a sufficient delivery to all of them.

 

15.         If
a stock certificate is defaced, worn out, lost or destroyed, it may be renewed on such terms (if any) as to evidence
and indemnity and on the payment of such expenses reasonably incurred by the Corporation in investigating evidence, as the Directors
may prescribe, and (in the case of defacement or wearing out) on delivery up of the old certificate.

 

LIEN

 

16.         The
Corporation shall have a first priority lien and charge on every partly paid share for all moneys (whether presently payable or
not) called or payable at a fixed time in respect of that share, and the Corporation shall also have a first priority lien and
charge on all partly paid shares standing registered in the name of a Stockholder (whether held solely or jointly with another
person) for all moneys presently payable by him or his estate to the Corporation, but the Directors may at any time declare
any share to be wholly or in part exempt from the provisions of this Subparagraph. The Corporation’s lien, if any, on a share
shall extend to all distributions payable thereon.

 

17.         The
Corporation may sell, in such manner as the Directors in their sole and
absolute discretion think fit, any shares on which the Corporation has a lien, but no sale shall be made unless an amount in respect
of which the lien exists is presently payable nor until the expiration of 14 days after a notice in writing, stating and demanding
payment of such part of the amount in respect of which the lien exists as is presently payable, has been given to the registered
holder for the time being of the share, or the persons entitled thereto by reason of his death or bankruptcy.

 

18.         For giving effect to any such
sale the Directors may authorize some person to transfer the shares sold to the purchaser thereof. The purchaser shall be registered
as the holder of the shares comprised in any such transfer and he shall not be bound to see to the application of the purchase
money, nor shall his title to the shares be affected by any irregularity or invalidity in the proceedings in reference to the sale.

 

19.         The proceeds of the sale after
deduction of expenses, fees and commission incurred by the Corporation shall be received by the Corporation and applied in payment
of such part of the amount in respect of which the lien exists as is presently payable, and the residue shall (subject to
a like lien for sums not presently payable as existed upon the shares prior to the sale) be paid to the person entitled to the
shares at the date of the sale.

 

     

     

    

 

EXHIBIT A

 

CALLS ON STOCK

 

20.         The
Directors may from time to time make calls upon the Stockholders in respect of any moneys unpaid on their partly paid stock, and
each Stockholder shall (subject to receiving at least 14 days’ notice specifying the time or times of payment) pay to the Corporation
at the time or times so specified the amount called on such stock.

 

21.         The
joint holders of a share of stock shall be jointly and severally liable to pay calls in respect thereof.

 

22.         If
a sum called in respect of a share is not paid before or on the day appointed for payment thereof, the person from whom the sum
is due shall pay interest upon the sum at such rate per annum as the Directors shall determine from the day appointed for the payment
thereof to the time of the actual payment, but the Directors shall be at liberty to waive payment of that interest wholly or in
part.

 

23.         The
provisions of this Certificate of Incorporation as to the liability of joint holders and as to payment of interest shall apply
in the ease of non-payment of any sum which, by the terms of issue of a share, becomes payable at a fixed time, whether on account
of the amount of the share, or by way of premium, as if the same had become payable by virtue of a call duly made and notified.

 

24.         The
Directors may make arrangements on the issue of partly paid stock for a difference between the Stockholders, or the particular
stock, in the amount of calls to be paid and in the times of payment.

 

25.         The
Directors may, if they think fit, receive from any Stockholder willing to advance the same all or any part of the moneys uncalled
and unpaid upon any partly paid stock held by him, and upon all or any of the moneys so advanced may (until the same would, but
for such advance, become presently payable) pay interest at such rate as may be agreed upon between the Stockholder paying the
sum in advance and the Directors.

 

FORFEITURE OF STOCK

 

26.         If
a Stockholders fails to pay any call or instalment of a call in respect of partly paid shares on the day appointed for payment,
the Directors may, at any time thereafter during such time as any part of such call or instalment remains unpaid, serve a
notice on him requiring payment of so much of the call or instalment as is unpaid, together with any interest which may have accrued.

 

27.         The
notice shall name a further day (not earlier than the expiration of 14 days from the date of the notice) on or before which the
payment required by the notice is to be made, and shall state that in the event of non-payment at or before the time appointed
the shares in respect of which the call was made will be liable to be forfeited.

 

     

     

    

 

EXHIBIT A

 

28.          If the requirements of any such
notice as aforesaid are not complied with, any share in respect of which the notice has been given may, at any time thereafter
before the payment required by notice has been made, be forfeited by a resolution of the Directors to that effect.

 

29.          A forfeited share may be sold
or otherwise disposed of on such terms and in such manner as the Directors think fit, and at any time before a sale or disposition
the forfeiture may be cancelled on such terms as the Directors think fit.

 

30.          A
person whose shares have been forfeited shall cease to be a Stockholder in respect of the forfeited shares, but shall,
notwithstanding, remain liable to pay to the Corporation all moneys which at the date of forfeiture were payable by him to
the Corporation in respect of the shares forfeited, but his liability shall cease if and when Corporation receives payment in
full the amount unpaid on the shares forfeited.

 

31.          A
statutory declaration in writing that the declarant is a Director, and that a share has been duly forfeited on a date stated in
the declaration, shall be conclusive evidence of the facts in the notice as against all persons claiming to be entitled to the
share.

 

32.          The
Corporation may receive the consideration, if any, given for a share on any sale or disposition thereof pursuant to the provisions
of this Certificate of Incorporation as to forfeiture and may execute a transfer of the share in favour of the person to whom the
share is sold or disposed of and that person shall be registered as the holder of the share, and shall not be bound to see to the
application of the purchase money, if any, nor shall his title to the share be affected by any irregularity or invalidity in the
proceedings in reference to the disposition or sale.

 

33.          The
provisions of this Certificate of Incorporation as to forfeiture shall apply in the case of non-payment of any sum which by
the terms of issue of a share becomes due and payable, whether on account of the amount of the share, or by way of premium,
as if the same had been payable by virtue of a call duly made and notified.

 

TRANSFER OF STOCK

 

34.          The
instrument of transfer of any share shall be in any usual or common form or such other form as the Directors may, in their absolute
discretion, approve and be executed by or on behalf of the transferor and if in respect of a nil or partly paid up share, or if
so required by the Directors, shall also be executed on behalf of the transferee and shall be accompanied by such evidence as the
Directors may reasonably require to show the right of the transferor to make the transfer. The transferor shall be deemed to remain
a holder of the share until the name of the transferee is entered in the stock ledger in respect thereof.

 

35.          The
Directors may, in their absolute discretion, decline to register any transfer of shares without assigning any reason therefor.
If the Directors refuse to register a transfer of any shares, they shall, within six weeks after the date on which the transfer
was lodged with the Corporation, send to the transferee notice of the refusal.

 

36.          The
registration of transfers may be suspended at such times and for such periods as the Directors may, in their absolute discretion,
from time to time determine, provided always that such registration shall not be suspended for more than 45 days in any year.

 

     

     

    

 

EXHIBIT A

 

37.          All instruments of transfer
which are registered shall be retained by the Corporation, but any instrument of transfer which the Directors decline to register
shall (except in any case of fraud) be returned to the person depositing the same.

 

TRANSMISSION OF STOCK

 

38.          The legal personal representative
of a deceased sole holder of a share shall be the only person recognized by the Corporation as having any title to the share. In
the case of a share registered in the name of two or more holders, the survivors or survivor, or the legal personal representatives
of the deceased survivor, shall be the only person recognized by the Corporation as having any title to the share.

 

39.
         Any person becoming entitled to a share in consequence of the death or bankruptcy of a Stockholder shall, upon such evidence being
produced as may from time to time be required by the Directors, have the right either to be registered as a Stockholder in respect
of the share or, instead of being registered himself, to make such transfer of the share as the deceased or bankrupt person could
have made; but the Directors shall, in either case, have the same right to decline or suspend
registration as they would have had in the case of a transfer of the share by the deceased or bankrupt person before the death
or bankruptcy.

 

40.          A person becoming entitled to
a share by reason of the death or bankruptcy of the holder shall be entitled to the same dividends and other advantages to which
he would be entitled if he were the registered holder of the share, except that he shall not, before being registered as a Stockholder
in respect of the share, be entitled, in respect of it, to exercise any right conferred by membership in relation to meetings of
the Corporation

 

ALTERATION OF STOCK CAPITAL

 

41.          Subject to the applicable requirements of the General Corporation Law, the Corporation may, from time to time, increase the stock
capital by such sum, to be divided into shares of such classes or series and amount,
as the resolution shall prescribe.

 

42.          Subject to the applicable requirements
of the General Corporation Law, the Corporation may by Ordinary Resolution:

 

42.1        consolidate
and divide all or any of its share capital into shares of a larger amount than its existing shares;

 

42.2        convert
all or any of its paid up shares into stock and reconvert that stock into paid up stock of any denomination;

 

42.3        subdivide
its existing shares, or any of them, into shares of a smaller amount provided that in the subdivision the proportion between
the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in case of the share from
which the reduced share is derived; and

 

     

     

    

 

EXHIBIT A

 

42.4          cancel any shares which, at
the date of the passing of the resolution, have not been taken or agreed to be taken by any person and diminish the amount of its
share capital by the amount of the shares so cancelled.

 

43.          As
contemplated in Sub-paragraph 42, above, Ordinary Resolution means a resolution (i) passed by a simple majority of
such Stockholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting of the
Corporation and regard shall be had in computing a majority to the number of votes to which each Stockholder is entitled; or (ii)
approved in writing by all of the Stockholders entitled to vote at a general meeting of the Corporation in one or more instruments
signed in the aggregate by all of the Stockholders and the effective date of the resolution so adopted shall be the date on which
the instrument, or the last of such instruments if more than one, is signed.

 

44.          Subject
to the applicable requirements of the General Corporation Law, the Corporation may by Special Resolution reduce its stock
capital and any capital redemption reserve in any manner authorised by law.

 

45.          As
contemplated in Sub-paragraph 44, above, Special Resolution means a resolution (i) passed by a majority of not less than two-thirds
of such Stockholders as, being entitled to do so, vote in person or, where proxies arc allowed, by proxy at a general meeting of
the Corporation of which notice specifying the intention to propose the resolution as a Special Resolution has been duly
given and regard shall be had in computing such a majority to the number of votes to which each Stockholder is entitled; or (ii)
approved in writing by all of the Stockholders entitled to vote at a general meeting of the Corporation in one of more instruments
signed in the aggregate by all of the Stockholders and the effective date of the Special Resolution so adopted shall be the date
on which the instrument, or the last of such instruments if more than one, is executed.

 

     

     

    

 

AMENDMENT

TO

PLAN AND AGREEMENT OF MERGER

 

This AMENDMENT AGREEMENT is made on this
30th day of September, 2016 to the Plan and Agreement of Merger (the “Agreement”) dated September 30, 2016
between Advantage Insurance Holdings Ltd., a Cayman Islands limited stock company, with its registered office located at 5th
Floor, Windward 3, Regatta Office Park, West Bay Road, PO Box 2185, Grand Cayman KY1-1105, Cayman Islands (“AIH”),
and Advantage Insurance Inc., a Puerto Rico stock corporation, with its registered office located at 254 Muňoz Rivera Avenue, Oriental
Plaza, P-1 floor, San Juan, Puerto Rico 00918 (“AII”).

 

WHEREAS, the parties hereto desire to amend the Agreement
as hereinafter set forth.

 

NOW, THEREFORE, in consideration
of the mutual representations, warranties, covenants and agreements contained in the Agreement, and for other good and valuable
consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree to amend the Agreement by changing Section
6(a) in its entirety so that it reads as follows:

 

		(a)	AIH Shares: By virtue of the Merger and without any action
on the part of the Shareholders of AIH, as of the Effective Date immediately after the Merger: (i) the THREE HUNDRED SIXTY FIVE
THOUSAND ONE HUNDRED NINETY-NINE (365,199) ordinary shares of AIH, par value of U.S. $0.00682565 which are issued and outstanding
on the Effective Date (the “AIH Ordinary Shares”), shall be converted into THREE HUNDRED SIXTY FIVE THOUSAND ONE HUNDRED
NINETY-NINE (365,199) shares of fully paid and non-assessable shares of common stock of AII, par value of U.S. $0.01 each (“AII
Common Stock”); (ii) the SEVEN MILLION SEVEN HUNDRED ONE THOUSAND SEVEN HUNDRED TWENTY-ONE (7,701,721) AIH preference shares,
par value of U.S. $0.01 which are issued and outstanding on the Effective Date (the “AIH Preference Shares”), shall
be converted into SEVEN MILLION SEVEN HUNDRED ONE THOUSAND SEVEN HUNDRED TWENTY-ONE (7,701,721) shares of fully paid and non-assessable
shares of preferred stock of AII, par value of U.S. $0.01 each (the “AII Preferred Stock”).

 

The Agreement, as amended by this Amendment,
contains the entire agreement between the parties hereto and there are no agreements, warranties or representations which are not
set forth therein or herein. All terms and provisions of the Agreement not amended hereby, either expressly or by necessary implication,
shall remain in full force and effect.

 

     

     

    

 

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

 

	 	ADVANTAGE INSURANCE INC.
	 	(The Surviving Corporation)
	 	 
	 	/s/ Walter C. Keenan 
	 	Walter C. Keenan
	 	President

 

	 	ADVANTAGE INSURANCE HOLDINGS LTD.
	 	(The Merged Corporation)
	 	 
	 	/s/ Walter C. Keenan
	 	Walter C. Keenan
	 	President

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