Document:

PKY-2014.04.07-8K-EX10.2

EXHIBIT 10.2

AMENDED, RESTATED AND CONSOLIDATED GUARANTY

THIS AMENDED, RESTATED AND CONSOLIDATED GUARANTY dated as of April 1, 2014 (this “Guaranty”), executed and delivered by each of the undersigned and the other Persons from time to time party hereto pursuant to the execution and delivery of an Accession Agreement in the form of Annex I hereto (all of the undersigned, together with such other Persons each a “Guarantor” and collectively, the “Guarantors”) in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent (the “Administrative Agent”) for the Lenders under that certain Amended, Restated & Consolidated Credit Agreement dated as of April 1, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among PARKWAY PROPERTIES LP (the “Borrower”), PARKWAY PROPERTIES, INC. (the “Parent”), the financial institutions party thereto and their assignees under Section 12.5. thereof (the “Lenders”), the Administrative Agent, and the other parties thereto, for its benefit and the benefit of the Lenders, the Issuing Bank and the Specified Derivatives Providers (the Administrative Agent, the Lenders, the Swingline Lender, the Issuing Bank, and the Specified Derivatives Providers, each individually a “Guarantied Party” and collectively, the “Guarantied Parties”).

WHEREAS, certain of the Lenders and other financial institutions have made available to the Borrower (a) a $215,000,000 revolving credit facility on the terms and conditions contained in that certain Amended and Restated Credit Agreement dated as of March 30, 2012 (as amended and in effect immediately prior to the date hereof, the “Existing Credit Agreement”) by and among the Borrower, the Parent, the Lenders party thereto, certain other financial institutions party thereto, Wells Fargo, as administrative agent, and the other parties thereto, (b) a $125,000,000 term loan facility on the terms and conditions contained in that certain Term Loan Agreement dated as of September 28, 2012 (as amended and in effect immediately prior to the date hereof, the “Existing Term Loan Agreement”), by and among the Borrower, the Parent, the Lenders party thereto, certain other financial institutions party thereto, KeyBank National Association, as administrative agent (the “Existing Term Loan Agent”), and the other parties thereto, and (c) a $120,000,000 term loan facility on the terms and conditions contained in that certain Term Loan Agreement dated as of June 12, 2013 (as amended and in effect immediately prior to the date hereof, the “Wells Fargo Term Loan Agreement”; together with the Existing Credit Agreement and the Existing Term Loan Agreement, the “Existing Credit Facilities”), by and among the Borrower, the Parent, the Lenders party thereto, certain other financial institutions party thereto, Wells Fargo, as administrative agent, and the other parties thereto; and

WHEREAS, in connection with the Existing Credit Facilities, certain Guarantors previously entered into (i) that certain Guaranty dated as of March 30, 2012 (as amended and in effect immediately prior to the date hereof, the “Existing Revolver Guaranty”) in favor of Wells Fargo, as administrative agent under the Existing Credit Agreement, (ii) that certain Guaranty dated as of September 28, 2012 (as amended and in effect immediately prior to the date hereof, the “Existing Term Loan Guaranty”) in favor of KeyBank National Association, as administrative agent under the Existing Term Loan Agreement, and (iii) that certain Guaranty dated as of June 12, 2013 (as amended and in effect immediately prior to the date hereof, the “Wells Fargo Term Loan Guaranty”; together with the Existing Revolver Guaranty and the Existing Term Loan Guaranty, the “Existing Guaranties”) in favor of Wells Fargo, as administrative agent under the Wells Fargo Term Loan Agreement; 

WHEREAS, pursuant to the Credit Agreement, the Administrative Agent and the Lenders have agreed, among other things, (a) to amend and restate the terms of, and consolidate the Indebtedness owing by the Borrower under and in connection with, the Existing Credit Facilities, (b) to make available to the Borrower certain financial accommodations and (c) to replace the Existing Term Loan Agent with the Administrative Agent with respect to the Existing Term Loan Agreement, in each case, on the terms and conditions set forth in the Credit Agreement;

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WHEREAS, the Specified Derivatives Providers may from time to time enter into Specified Derivatives Contracts with the Borrower and/or its Subsidiaries;

WHEREAS, the Borrower and each of the Guarantors, though separate legal entities, are mutually dependent on each other in the conduct of their respective businesses as an integrated operation and have determined it to be in their mutual best interests to obtain financing from the Administrative Agent, the Lenders, the Swingline Lender, and the Issuing Bank, and to enter into Specified Derivatives Contracts, through their collective efforts;

WHEREAS, each Guarantor acknowledges that it will receive direct and indirect benefits from the Administrative Agent, the Lenders, the Swingline Lender and the Issuing Bank making such financial accommodations available to the Borrower under the Credit Agreement and from the Specified Derivatives Providers entering into Specified Derivatives Contracts, and, accordingly, each Guarantor is willing to guarantee the Borrower’s obligations to the Administrative Agent, the Lenders, the Swingline Lender and the Issuing Bank, and the Borrower’s and/or any Subsidiary’s Obligations to the Specified Derivatives Providers on the terms and conditions contained herein; and

WHEREAS, the execution and delivery of this Guaranty, and the amendment, restatement and consolidation of the Existing Guaranties, are conditions to the Administrative Agent’s and the other Guarantied Parties’ making, and continuing to make, such financial accommodations to the Borrower.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each Guarantor, each Guarantor agrees that the Existing Guaranties are amended, restated and consolidated in their entireties as follows:

Section 1.  Guaranty.  Each Guarantor hereby absolutely, irrevocably and unconditionally guaranties the due and punctual payment and performance when due, whether at stated maturity, by acceleration or otherwise, of all of the following (collectively referred to as the “Guarantied Obligations”):  (a) all indebtedness, liabilities, obligations, covenants and duties owing by the Borrower or any other Loan Party to any Lender, the Issuing Bank or the Administrative Agent under or in connection with the Credit Agreement and any other Loan Document, including without limitation, the repayment of all principal of the Loans, the Reimbursement Obligations and all other Letter of Credit Liabilities, and the payment of all interest, Fees, charges, reasonable attorneys’ fees and other amounts payable to any Lender or the Administrative Agent thereunder or in connection therewith (including, to the extent permitted by Applicable Law, interest, Fees and other amounts that would accrue and become due after the filing of a case or other proceeding under the Bankruptcy Code (as defined below) or other similar Applicable Law but for the commencement of such case or proceeding, whether or not such amounts are allowed or allowable in whole or in part in such case or proceeding); (b) all Specified Derivatives Obligations that do not constitute Excluded Swap Obligations; (c) any and all extensions, renewals, modifications, amendments or substitutions of the foregoing; (d) all other Obligations; and (e) all expenses, including, without limitation, reasonable attorneys’ fees and disbursements, that are incurred by the Administrative Agent or any other Guarantied Party in the enforcement of any of the foregoing or any obligation of such Guarantor hereunder.

Section 2.  Guaranty of Payment and Not of Collection.  This Guaranty is a guaranty of payment, and not of collection, and a debt of each Guarantor for its own account.  Accordingly, the Guarantied Parties shall not be obligated or required before enforcing this Guaranty against any Guarantor:  (a) to pursue any right or remedy the Guarantied Parties may have against the Borrower, any other Guarantor or any other Person or commence any suit or other proceeding against the Borrower, any other Guarantor or any other Person in any court or other tribunal; (b) to make any claim in a liquidation or bankruptcy of the Borrower, any other Guarantor or any other Person; or (c) to make demand of the Borrower, any other Guarantor or any other Person. 

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Section 3.  Guaranty Absolute.  Each Guarantor guarantees that the Guarantied Obligations will be paid strictly in accordance with the terms of the documents evidencing the same, regardless of any Applicable Law now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Guarantied Parties with respect thereto.  The liability of each Guarantor under this Guaranty shall be absolute, irrevocable and unconditional in accordance with its terms and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever, including without limitation, the following (whether or not such Guarantor consents thereto or has notice thereof):

(a)    (i) any change in the amount, interest rate or due date or other term of any of the Guarantied Obligations, (ii) any change in the time, place or manner of payment of all or any portion of the Guarantied Obligations, (iii) any amendment or waiver of, or consent to the departure from or other indulgence with respect to, the Credit Agreement, any other Loan Document, or any other document or instrument evidencing or relating to any Guarantied Obligations, or (iv) any waiver, renewal, extension, addition, or supplement to, or deletion from, or any other action or inaction under or in respect of, the Credit Agreement, any of the other Loan Documents, or any other documents, instruments or agreements relating to the Guarantied Obligations or any other instrument or agreement referred to therein or evidencing any Guarantied Obligations or any assignment or transfer of any of the foregoing;

(b)    any lack of validity or enforceability of the Credit Agreement, any of the other Loan Documents, or any other document, instrument or agreement referred to therein or evidencing any Guarantied Obligations or any assignment or transfer of any of the foregoing;

(c)    any furnishing to the Guarantied Parties of any security for the Guarantied Obligations;

(d)    any settlement or compromise of any of the Guarantied Obligations or any liability of any other party with respect to the Guarantied Obligations, or any subordination of the payment of the Guarantied Obligations to the payment of any other liability of the Borrower or any other Loan Party;

(e)    any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to such Guarantor, the Borrower, any other Loan Party or any other Person, or any action taken with respect to this Guaranty by any trustee or receiver, or by any court, in any such proceeding;

(f)    any act or failure to act by the Borrower, any other Loan Party or any other Person which may adversely affect such Guarantor’s subrogation rights, if any, against the Borrower to recover payments made under this Guaranty;

(g)    any application of sums paid by the Borrower, any other Guarantor or any other Person with respect to the liabilities of the Borrower to the Guarantied Parties, regardless of what liabilities of the Borrower remain unpaid;

(h)    any defect, limitation or insufficiency in the borrowing powers of the Borrower or in the exercise thereof;

(i)    any defense, set-off, claim or counterclaim (other than indefeasible payment and performance in full) which may at any time be available to or be asserted by the Borrower, any other Loan Party or any other Person against the Administrative Agent or any Lender;

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(j)    any change in the corporate existence, structure or ownership of the Borrower or any other Loan Party;

(k)    any statement, representation or warranty made or deemed made by or on behalf of the Borrower, any Guarantor or any other Loan Party under any Loan Document, or any amendment hereto or thereto, proves to have been incorrect or misleading in any respect; or

(l)    any other circumstance which might otherwise constitute a defense available to, or a discharge of, a Guarantor hereunder (other than indefeasible payment and performance in full).

Section 4.  Action with Respect to Guarantied Obligations.  The Guaranteed Parties may, at any time and from time to time, without the consent of, or notice to, any Guarantor, and without discharging any Guarantor from its obligations hereunder, take any and all actions described in Section 3 and may otherwise:  (a) amend, modify, alter or supplement the terms of any of the Guarantied Obligations, including, but not limited to, extending or shortening the time of payment of any of the Guarantied Obligations or changing the interest rate that may accrue on any of the Guarantied Obligations; (b) amend, modify, alter or supplement the Credit Agreement or any other Loan Document; (c) release any other Loan Party or other Person liable in any manner for the payment or collection of the Guarantied Obligations; (d) exercise, or refrain from exercising, any rights against the Borrower, any other Guarantor or any other Person; and (e) apply any sum, by whomsoever paid or however realized, to the Guarantied Obligations in such order as the Guarantied Parties shall elect.

Section 5.  Representations and Warranties.  Each Guarantor hereby makes to the Administrative Agent and the other Guarantied Parties all of the representations and warranties made by the Borrower with respect to or in any way relating to such Guarantor in the Credit Agreement and the other Loan Documents, as if the same were set forth herein in full.

Section 6.  Covenants.  Each Guarantor will comply with all covenants which the Borrower is to cause such Guarantor to comply with under the terms of the Credit Agreement or any of the other Loan Documents.

Section 7.  Waiver.  Each Guarantor, to the fullest extent permitted by Applicable Law, hereby waives notice of acceptance hereof or any presentment, demand, protest or notice of any kind, and any other act or thing, or omission or delay to do any other act or thing, which in any manner or to any extent might vary the risk of such Guarantor or which otherwise might operate to discharge such Guarantor from its obligations hereunder.

Section 8.  Inability to Accelerate Loan.  If the Guarantied Parties or any of them are prevented under Applicable Law or otherwise from demanding or accelerating payment of any of the Guarantied Obligations by reason of any automatic stay or otherwise, the Administrative Agent and/or the other Guarantied Parties shall be entitled to receive from each Guarantor, upon demand therefor, the sums which otherwise would have been due had such demand or acceleration occurred.

Section 9.  Reinstatement of Guarantied Obligations.  If claim is ever made on the Administrative Agent or any other Guarantied Party for repayment or recovery of any amount or amounts received in payment or on account of any of the Guarantied Obligations, and the Administrative Agent or such other Guarantied Party repays all or part of said amount by reason of (a) any judgment, decree or order of any court or administrative body of competent jurisdiction, or (b) any settlement or compromise of any such claim effected by the Administrative Agent or such other Guarantied Party with any such claimant (including the Borrower or a trustee in bankruptcy for the Borrower), then and in such event each Guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding on it, notwithstanding any revocation hereof or the cancellation of the Credit Agreement, any of the other Loan Documents, or any other instrument evidencing any liability of the Borrower, and such Guarantor shall be and remain liable to the Administrative Agent or such other Guarantied Party for the amounts so repaid or recovered to the same extent as if such amount had never originally been paid to the Administrative Agent or such other Guarantied Party.

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Section 10.  Subrogation.  Upon the making by any Guarantor of any payment hereunder for the account of the Borrower, such Guarantor shall be subrogated to the rights of the payee against the Borrower; provided, however, that such Guarantor shall not enforce any right or receive any payment by way of subrogation or otherwise take any action in respect of any other claim or cause of action such Guarantor may have against the Borrower arising by reason of any payment or performance by such Guarantor pursuant to this Guaranty, unless and until all of the Guarantied Obligations have been indefeasibly paid and performed in full.  If any amount shall be paid to such Guarantor on account of or in respect of such subrogation rights or other claims or causes of action, such Guarantor shall hold such amount in trust for the benefit of the Guarantied Parties and shall forthwith pay such amount to the Administrative Agent to be credited and applied against the Guarantied Obligations, whether matured or unmatured, in accordance with the terms of the Credit Agreement or to be held by the Administrative Agent as collateral security for any Guarantied Obligations existing.

Section 11.  Payments Free and Clear.  All sums payable by each Guarantor hereunder, whether of principal, interest, Fees, expenses, premiums or otherwise, shall be paid in full, without set‐off or counterclaim or any deduction or withholding whatsoever (including any Taxes), and if any Guarantor is required by Applicable Law or by a Governmental Authority to make any such deduction or withholding, such Guarantor shall pay to the Guarantied Parties such additional amount as will result in the receipt by the Guarantied Parties of the full amount payable hereunder had such deduction or withholding not occurred or been required.

Section 12.  Set-off.  In addition to any rights now or hereafter granted under any of the other Loan Documents or Applicable Law and not by way of limitation of any such rights, each Guarantor hereby authorizes each Guarantied Party, each Affiliate of a Guarantied Party, and each Participant, at any time while an Event of Default exists, without any prior notice to such Guarantor or to any other Person, any such notice being hereby expressly waived, but in the case of a Lender, a Specified Derivatives Provider, the Issuing Bank, an Affiliate of a Lender or the Issuing Bank, or a Participant subject to receipt of the prior written consent of the Requisite Lenders exercised in their sole discretion, to set off and to appropriate and to apply any and all deposits (general or special, including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured or unmatured) and any other indebtedness at any time held or owing by the Administrative Agent, the Issuing Bank, such Lender, such Specified Derivatives Provider or such Participant or any affiliate of the Administrative Agent, the Issuing Bank, or such Lender to or for the credit or the account of such Guarantor against and on account of any of the Guarantied Obligations, although such obligations shall be contingent or unmatured.

Section 13.  Subordination.  Each Guarantor hereby expressly covenants and agrees for the benefit of the Guarantied Parties that all obligations and liabilities of the Borrower to such Guarantor of whatever description, including without limitation, all intercompany receivables of such Guarantor from the Borrower (collectively, the “Junior Claims”) shall be subordinate and junior in right of payment to all Guarantied Obligations.  If an Event of Default shall exist, then no Guarantor shall accept any direct or indirect payment (in cash, property or securities, by setoff or otherwise) from the Borrower on account of or in any manner in respect of any Junior Claim until all of the Guarantied Obligations have been indefeasibly paid in full.

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Section 14.  Avoidance Provisions.  It is the intent of each Guarantor, the Administrative Agent and the other Guarantied Parties that in any Proceeding, such Guarantor’s maximum obligation hereunder shall equal, but not exceed, the maximum amount which would not otherwise cause the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Guarantied Parties) to be avoidable or unenforceable against such Guarantor in such Proceeding as a result of Applicable Law, including without limitation, (a) Section 548 of the Bankruptcy Code and (b) any state fraudulent transfer or fraudulent conveyance act or statute applied in such Proceeding, whether by virtue of Section 544 of the Bankruptcy Code or otherwise.  The Applicable Laws under which the possible avoidance or unenforceability of the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Guarantied Parties) shall be determined in any such Proceeding are referred to as the “Avoidance Provisions”.  Accordingly, to the extent that the obligations of any Guarantor hereunder would otherwise be subject to avoidance under the Avoidance Provisions, the maximum Guarantied Obligations for which such Guarantor shall be liable hereunder shall be reduced to that amount which, as of the time any of the Guarantied Obligations are deemed to have been incurred under the Avoidance Provisions, would not cause the obligations of such Guarantor hereunder (or any other obligations of such Guarantor to the Guarantied Parties), to be subject to avoidance under the Avoidance Provisions.  This Section is intended solely to preserve the rights of the Administrative Agent and the other Guarantied Parties hereunder to the maximum extent that would not cause the obligations of any Guarantor hereunder to be subject to avoidance under the Avoidance Provisions, and no Guarantor or any other Person shall have any right or claim under this Section as against the Guarantied Parties that would not otherwise be available to such Person under the Avoidance Provisions.

Section 15.  Information.  Each Guarantor assumes all responsibility for being and keeping itself informed of the financial condition of the Borrower and the other Guarantors, and of all other circumstances bearing upon the risk of nonpayment of any of the Guarantied Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that neither of the Administrative Agent nor any other Guarantied Party shall have any duty whatsoever to advise any Guarantor of information regarding such circumstances or risks.

Section 16.  Governing Law.  THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

Section 17.  Waiver of jury trial.

(a)    EACH GUARANTOR, AND EACH OF THE Administrative Agent AND THE OTHER GUARANTIED PARTIES BY ACCEPTING THE BENEFITS HEREOF, ACKNOWLEDGES THAT ANY DISPUTE OR CONTROVERSY BETWEEN SUCH GUARANTOR, THE Administrative Agent OR ANY OF THE OTHER GUARANTIED PARTIES WOULD BE BASED ON DIFFICULT AND COMPLEX ISSUES OF LAW AND FACT AND WOULD RESULT IN DELAY AND EXPENSE TO THE PARTIES.  ACCORDINGLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE GUARANTORS, AND THE Administrative Agent AND THE OTHER GUARANTIED PARTIES BY ACCEPTING THE BENEFITS HEREOF HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT OR TRIBUNAL IN WHICH AN ACTION MAY BE COMMENCED BY OR AGAINST ANY PARTY HERETO ARISING OUT OF THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR BY REASON OF ANY OTHER SUIT, CAUSE OF ACTION OR DISPUTE WHATSOEVER BETWEEN OR AMONG ANY GUARANTOR, THE ADMINISTRATIVE AGENT OR ANY OF THE OTHER GUARANTIED PARTIES OF ANY KIND OR NATURE RELATING TO ANY OF THE LOAN DOCUMENTS.

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(b)    EACH OF THE GUARANTORS, THE Administrative Agent AND THE OTHER GUARANTIED PARTIES HEREBY AGREES THAT ANY FEDERAL DISTRICT COURT AND ANY STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN NEW YORK, NEW YORK SHALL HAVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN OR AMONG ANY GUARANTOR, THE ADMINISTRATIVE AGENT OR ANY OF THE OTHER GUARANTIED PARTIES, PERTAINING DIRECTLY OR INDIRECTLY TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR TO ANY MATTER ARISING HEREFROM OR THEREFROM.  EACH GUARANTOR AND EACH OF THE GUARANTIED PARTIES EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN SUCH COURTS WITH RESPECT TO SUCH CLAIMS OR DISPUTES.  EACH PARTY FURTHER WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM AND EACH AGREES NOT TO PLEAD OR CLAIM THE SAME.  THE CHOICE OF FORUM SET FORTH IN THIS SECTION SHALL NOT BE DEEMED TO PRECLUDE THE BRINGING OF ANY ACTION BY ANY PARTY OR THE ENFORCEMENT BY ANY PARTY OF ANY JUDGMENT OBTAINED IN SUCH FORUM IN ANY OTHER APPROPRIATE JURISDICTION.
(c)    THE PROVISIONS OF THIS SECTION HAVE BEEN CONSIDERED BY EACH PARTY WITH THE ADVICE OF COUNSEL AND WITH A FULL UNDERSTANDING OF THE LEGAL CONSEQUENCES THEREOF, AND SHALL SURVIVE THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER OR UNDER THE OTHER LOAN DOCUMENTS, THE TERMINATION OR EXPIRATION OF ALL LETTERS OF CREDIT AND THE TERMINATION OF THIS GUARANTY.
Section 18.  Loan Accounts.  The Administrative Agent and each other Guarantied Party may maintain books and accounts setting forth the amounts of principal, interest and other sums paid and payable with respect to the Guarantied Obligations, and in the case of any dispute relating to any of the outstanding amount, payment or receipt of any of the Guarantied Obligations or otherwise, the entries in such books and accounts shall be deemed conclusive evidence of the amounts and other matters set forth herein, absent manifest error.  The failure of the Administrative Agent or any other Guarantied Party to maintain such books and accounts shall not in any way relieve or discharge any Guarantor of any of its obligations hereunder.

Section 19.  Waiver of Remedies.  No delay or failure on the part of the Administrative Agent or any other Guarantied Party in the exercise of any right or remedy it may have against any Guarantor hereunder or otherwise shall operate as a waiver thereof, and no single or partial exercise by the Administrative Agent or any other Guarantied Party of any such right or remedy shall preclude any other or further exercise thereof or the exercise of any other such right or remedy.

Section 20.  Termination.  This Guaranty shall remain in full force and effect until indefeasible payment in full of the Guarantied Obligations and the other Obligations and the termination or cancellation of the Credit Agreement in accordance with its terms.

Section 21.  Successors and Assigns.  Each reference herein to the Administrative Agent or any other Guarantied Party shall be deemed to include such Person’s respective successors and assigns (including, but not limited to, any holder of the Guarantied Obligations) in whose favor the provisions of this Guaranty also shall inure, and each reference herein to each Guarantor shall be deemed to include such Guarantor’s successors and assigns, upon whom this Guaranty also shall be binding.  

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The Guarantied Parties may, in accordance with the applicable provisions of the Credit Agreement, assign, transfer or sell any Guarantied Obligation, or grant or sell participations in any Guarantied Obligations, to any Person without the consent of, or notice to, any Guarantor and without releasing, discharging or modifying any Guarantor’s obligations hereunder.  Subject to Section 12.8. of the Credit Agreement, each Guarantor hereby consents to the delivery by the Administrative Agent and any other Guarantied Party to any Assignee or Participant (or any prospective Assignee or Participant) of any financial or other information regarding the Borrower or any Guarantor.  No Guarantor may assign or transfer its rights or obligations hereunder to any Person without the prior written consent of the Administrative Agent and the Lenders and any such assignment or other transfer to which the Administrative Agent and the Lenders have not so consented shall be null and void.

Section 22.  Joint and Several Obligations.  the obligationS of the Guarantors HEREUNDER SHALL BE joint and several, and ACCORDINGLY, each Guarantor CONFIRMS THAT IT is liable for the full amount of the “GUARANTiED Obligations” AND ALL OF THE OBLIGATIONS AND LIABILITIES OF EACH OF THE OTHER gUARANTORS HEREUNDER.

Section 23.  Amendments.  This Guaranty may not be amended except in a writing signed by the Requisite Lenders (or all of the Lenders if required under the terms of the Credit Agreement), the Administrative Agent and each Guarantor.

Section 24.  Payments.  All payments to be made by any Guarantor pursuant to this Guaranty shall be made in Dollars, in immediately available funds to the Administrative Agent at the Principal Office, not later than 2:00 p.m. on the date of demand therefor.

Section 25.  Notices.  All notices, requests and other communications hereunder shall be in writing (including facsimile transmission or similar writing) and shall be given (a) to each Guarantor at its address set forth below its signature hereto, (b) to the Administrative Agent or any other Guarantied Party at its respective address for notices provided for in the Credit Agreement, or (c) as to each such party at such other address as such party shall designate in a written notice to the other parties.  Each such notice, request or other communication shall be effective (i) if mailed, when received; (ii) if telecopied, when transmitted; or (iii) if hand delivered, when delivered; provided, however, that any notice of a change of address for notices shall not be effective until received.

Section 26.  Severability.  In case any provision of this Guaranty shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 27.  Headings.  Section headings used in this Guaranty are for convenience only and shall not affect the construction of this Guaranty.

Section 28.  Limitation of Liability.  Neither the Administrative Agent nor any other Guarantied Party, nor any Affiliate, officer, director, employee, attorney, or agent of the Administrative Agent or any other Guarantied Party, shall have any liability with respect to, and each Guarantor hereby waives, releases, and agrees not to sue any of them upon, any claim for any special, indirect, incidental, or consequential damages suffered or incurred by a Guarantor in connection with, arising out of, or in any way related to, this Guaranty or any of the other Loan Documents, or any of the transactions contemplated by this Guaranty, the Credit Agreement or any of the other Loan Documents.  Each Guarantor hereby waives, releases, and agrees not to sue the Administrative Agent or any other Guarantied Party or any of the Administrative Agent’s or any other Guarantied Party’s affiliates, officers, directors, employees, attorneys, or agents for punitive damages in respect of any claim in connection with, arising out of, or in any way related to, this Guaranty, the Credit Agreement or any of the other Loan Documents, or any of the transactions contemplated by Credit Agreement or financed thereby.

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Section 29. Electronic Delivery of Certain Information.  Each Guarantor acknowledges and agrees that information regarding the Guarantor may be delivered electronically pursuant to Section 9.5 of the Credit Agreement. 

Section 30.  Right of Contribution.  The Guarantors hereby agree as among themselves that, if any Guarantor shall make an Excess Payment, such Guarantor shall have a right of contribution from each other Guarantor in an amount equal to such other Guarantor’s Contribution Share of such Excess Payment.  The payment obligations of any Guarantor under this Section shall be subordinate and subject in right of payment to the Obligations until such time as the Obligations have been indefeasibly paid and performed in full and the Commitments have expired or terminated, and none of the Guarantors shall exercise any right or remedy under this Section against any other Guarantor until such Obligations have been indefeasibly paid and performed in full and the Commitments have expired or terminated.  Subject to Section 10 of this Guaranty, this Section shall not be deemed to affect any right of subrogation, indemnity, reimbursement or contribution that any Guarantor may have under Applicable Law against any other Guarantor in respect of any payment of Guarantied Obligations.  Notwithstanding the foregoing, all rights of contribution against any Guarantor shall terminate from and after such time, if ever, that such Guarantor shall cease to be a Guarantor in accordance with the applicable provisions of the Loan Documents.

Section 31.    Keepwell.  Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Loan Party to honor all of its obligations under this Guaranty in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section, or otherwise under this Guaranty, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor under this Section shall remain in full force and effect until termination of this Guaranty in accordance with Section 20 hereof.  Each Qualified ECP Guarantor intends that this Section constitute, and this Section shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

Section 32.    NO NOVATION.  THE PARTIES HERETO HAVE ENTERED INTO THIS GUARANTY SOLELY TO AMEND, RESTATE AND CONSOLIDATE THE TERMS OF, AND THE OBLIGATIONS OWING UNDER AND IN CONNECTION WITH, THE EXISTING GUARANTIES.  THE PARTIES DO NOT INTEND THIS GUARANTY NOR THE TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS GUARANTY AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE GUARANTORS UNDER OR IN CONNECTION WITH THE EXISTING GUARANTIES.

Section 33.  Definitions.  (a) For the purposes of this Guaranty:

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or creditors’ rights.

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“Contribution Share” means, for any Guarantor in respect of any Excess Payment made by any other Guarantor, the ratio (expressed as a percentage) as of the date of such Excess Payment of (i) the amount by which the aggregate present fair salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate present fair salable value of all assets and other properties of the Loan Parties other than the maker of such Excess Payment exceeds the amount of all of the debts and liabilities (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Loan Parties) of the Loan Parties other than the maker of such Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the Guarantors in respect of any Excess Payment, any Guarantor that became a Guarantor subsequent to the date of any such Excess Payment shall be deemed to have been a Guarantor on the date of such Excess Payment and the financial information for such Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such Excess Payment.

“Excess Payment” means the amount paid by any Guarantor in excess of its Ratable Share of any Guarantied Obligations.

“Proceeding” means any of the following:  (i) a voluntary or involuntary case concerning any Guarantor shall be commenced under the Bankruptcy Code; (ii) a custodian (as defined in such Bankruptcy Code or any other applicable bankruptcy laws) is appointed for, or takes charge of, all or any substantial part of the property of any Guarantor; (iii) any other proceeding under any Applicable Law, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding‐up or composition for adjustment of debts, whether now or hereafter in effect, is commenced relating to any Guarantor; (iv) any Guarantor is adjudicated insolvent or bankrupt; (v) any order of relief or other order approving any such case or proceeding is entered by a court of competent jurisdiction; (vi) any Guarantor makes a general assignment for the benefit of creditors; (vii) any Guarantor shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; (viii) any Guarantor shall call a meeting of its creditors with a view to arranging a composition or adjustment of its debts; (ix) any Guarantor shall by any act or failure to act indicate its consent to, approval of or acquiescence in any of the foregoing; or (x) any corporate action shall be taken by any Guarantor for the purpose of effecting any of the foregoing.

“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party (including the Borrower) that has total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

“Ratable Share” means, for any Guarantor in respect of any payment of Guarantied Obligations, the ratio (expressed as a percentage) as of the date of such payment of Guarantied Obligations of (i) the amount by which the aggregate present fair salable value of all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate present fair salable value of all assets and other properties of all of the Loan Parties exceeds the amount of all of the debts and liabilities (including contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Loan Parties hereunder) of the Loan Parties; provided, however, that, for purposes of calculating the Ratable Shares of the Guarantors in respect of any payment of Guarantied Obligations, any Guarantor that became a Guarantor subsequent to the date of any such payment shall be deemed to have been a Guarantor on the date of such payment and the financial information for such Guarantor as of the date such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such payment.

10

(b)    As used herein, “Guarantors” shall mean, as the context requires, collectively, (a) each Subsidiary identified as a “Guarantor” on the signature pages hereto, (b) each Person that joins this Guaranty as a Guarantor pursuant to Section 7.14 of the Credit Agreement, (c) with respect to (i) any Specified Derivatives Obligations between any Loan Party (other than the Borrower) and any Specified Derivatives Provider, the Borrower and (ii) the payment and performance by each other Loan Party of its obligations under the Guaranty with respect to all Swap Obligations, the Borrower, and (d) the successors and permitted assigns of the foregoing.

(c)    Terms not otherwise defined herein are used herein with the respective meanings given them in the Credit Agreement.

[Signature on Next Page]

11

IN WITNESS WHEREOF, each Guarantor has duly executed and delivered this Guaranty as of the date and year first written above.

GUARANTORS:

PARKWAY PROPERTIES, INC.

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

PARKWAY PROPERTIES GENERAL PARTNERS, INC.

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

PARKWAY JHLIC LP

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

[Signatures Continued on Next Page]

12

PARKWAY REALTY SERVICES, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

PARKWAY LAMAR LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

[Signatures continued on next page]

[Signature Page to Guaranty]

13

PARKWAY 214 N. TRYON, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

PARKWAY 525 N. TRYON, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

[Signatures continued on next page]

[Signature Page to Guaranty]

14

PARKWAY TOWER PLACE 200, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

PKY 222 S. MILL, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

[Signatures continued on next page]

[Signature Page to Guaranty]

15

PKY 400 NORTH BELT, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

PKY 1300 RIVERPLACE, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

[Signatures continued on next page] 

[Signature Page to Guaranty]

16

PKY 1250 SAM HOUSTON, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

PKY 1325 DAIRY ASHFORD, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

[Signatures continued on next page]

[Signature Page to Guaranty]

17

PKY SQUAW PEAK, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

PKY WOODBRANCH, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

[Signatures continued on next page]

[Signature Page to Guaranty]

18

PARKWAY 550 SOUTH CALDWELL, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

PKY FUND II TAMPA I, LLC

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

[Signatures continued on next page]

[Signature Page to Guaranty]

19

EOLA CAPITAL LLC

		
	By: 
	Eola Office Partners LLC, its sole member

		
	By: 
	Parkway Properties LP, its sole member

		
	By:
	Parkway Properties General Partners, Inc., its sole general partner

By: /s/ Jeremy Dorsett    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly    
     Name: David R. O’Reilly
     Title: Chief Financial Officer

Address for Notices:
c/o Parkway Properties, Inc.
390 North Orange Avenue, Suite 2400
Orlando, FL 32801 
Attention:  Chief Financial Officer
Telecopy Number:  (407) 650-0597
Telephone Number:  (407) 650-0593

[Borrower Signature Page Follows]

20

BORROWER:

PARKWAY PROPERTIES LP,
a Delaware limited partnership
By:    Parkway Properties General Partners, Inc., 
its sole general partner

By: /s/ Jeremy Dorsett_______________    
     Name: Jeremy Dorsett
     Title: Executive Vice President

By: /s/ David R. O’Reilly_____________    
     Name: David R. O’Reilly
                  Title: Chief Financial Officer

21

Accepted:

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent

By:  /s/ Andrew W. Hussion            
Name:      Andrew W. Hussion
Title: Vice President

22Letter Agreement

Exhibit 10.1
Glowpoint, Inc. 
1776 Lincoln Street, Suite 1300 
Denver, Colorado 80203
April 4, 2014
GP Investment Holdings, LLC 
1300 Post Oak Boulevard 
Houston, Texas 77056
Ladies and Gentlemen:
This letter constitutes the agreement (the “Agreement”) among GP Investment Holdings, LLC, a Delaware limited liability company (“GP Investment”), and each of Main Street Capital Corporation (“MSCC”), Brian Pessin, Sandra Pessin and Norman Pessin (collectively with GP Investment, the “Investor Group”), and Glowpoint, Inc., a Delaware corporation (the “Company”).
WHEREAS, Jon DeLuca and Grant Dawson (the “Resigning Directors”) have decided to resign from the board of directors of the Company (the “Board”);
WHEREAS, James H. Cohen and Patrick Lombardi (together, the “New Directors,” and each individually, a “New Director”) have agreed to fill two (2) vacancies on the Board that will result from the resignation of the Resigning Directors; and
WHEREAS, the Company and the Investor Group have agreed that it is in their mutual interests to enter into this Agreement, among other things, to set forth certain agreements concerning the composition of the Board, as hereinafter described.
NOW, THEREFORE, in consideration of the promises and the representations, warranties and agreements contained herein, and other good and valuable consideration, the parties hereto agree as follows:
1.Subject to the terms hereof and effective contemporaneously herewith, the Company has taken all requisite action to:
(a)    accept the resignations of the Resigning Directors as directors of the Company effective concurrently with the execution and delivery of this Agreement, as evidenced by the executed resignation letters attached hereto as Exhibit A; and
(b)    appoint each of the New Directors to the Board effective concurrently with the execution and delivery of this Agreement, thereby filling the two (2) vacancies thus created.  
2.    The Company agrees to nominate the New Directors as two (2) of five (5) total nominees (the “Company Slate”) to stand for election as directors of the Company at the 2014 annual meeting of stockholders of the Company (the “2014 Annual Meeting”), for terms that expire at the 2015 annual meeting of stockholders of the Company (the “2015 Annual Meeting”) or until their successors are duly elected and qualified.  

April 4, 2014
Page 2

3.    The Company agrees to publicly recommend and support the election to the Board of each of the New Directors at the 2014 Annual Meeting, including, without limitation, soliciting proxies in favor of their election, in the same manner as it does for all the other incumbent members of the Company Slate and accordingly, such New Directors shall be deemed to be “Continuing Directors” as defined under the Company’s equity incentive plans and employment agreements with the Company’s named executive officers.  
4.    Each member of the Investor Group shall (a) in the case of all shares of the Company’s Common Stock, $0.0001 par value per share (the “Common Stock”), owned of record by it, him or her as of the record date for the 2014 Annual Meeting (the “Record Date”), and (b) in the case of all shares of the Common Stock beneficially owned by any member of the Investor Group as of the Record Date (whether held in street name or by some other arrangement), instruct the record holder to, in each case at the 2014 Annual Meeting, vote for the election of the Company Slate at the 2014 Annual Meeting.
5.    At all times while serving as a director of the Company, each of the New Directors will receive the same benefits of directors’ and officers’ insurance and any indemnity and exculpation arrangements available generally to the other independent Board members and the same compensation and other benefits for his service as a director as the compensation and other benefits received by the other independent Board members.
6.    The Company agrees that during the period commencing on the date hereof until the 2015 Annual Meeting, the size of the Board shall be fixed at five (5) members.  
7.    The Company agrees to hold the 2014 Annual Meeting no later than June 30, 2014.
8.      If James H. Cohen (or any director appointed to replace Mr. Cohen or any subsequent replacements in accordance with this Section 8) is unable or ceases to serve on the Board for any reason then the Investor Group shall have the right to recommend a substitute person(s) who (a) is knowledgeable about the industry in which the Company operates and (b) qualifies as an “independent director” in accordance with Section 803A of the NYSE MKT Company Guide and satisfies the independence standards specified in Rule 10A-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to fill the resulting vacancy, subject to the approval of the Board, in its good faith business judgment, after exercising its fiduciary duties, and the Board shall appoint such replacement director to the Board promptly after the giving of such approval.  If Patrick Lombardi (or any director appointed to replace Mr. Lombardi or any subsequent replacements in accordance with this Section 8) is unable or ceases to serve on the Board for any reason then the Board shall, in its good faith business judgment, after exercising its fiduciary duties, promptly identify and appoint to the Board a substitute person who meets the conditions set forth in clauses (a) and (b) of this Section 8 to fill the resulting vacancy.  Any replacement director(s) appointed in accordance with this Section 8 shall hereinafter be deemed a “New Director” under this Agreement.

April 4, 2014
Page 3

9.    Except as otherwise set forth in this Agreement, including the Investor Group’s agreement to support the Company Slate, for the Standstill Period, neither the Investor Group nor any of its Affiliates will, and it will cause each of its Affiliates not to:
(a)    make, or in any way participate, directly or indirectly, in any “solicitation” (as such term is used in the proxy rules of the Securities and Exchange Commission (the “SEC”)) of proxies or consents, conduct or suggest any binding or nonbinding referendum or resolution or seek to advise, encourage or influence any individual, partnership, corporation, limited liability company, group, association or entity (collectively, a “Person”) with respect to the voting of any of the Common Stock;
(b)    initiate, propose or otherwise “solicit” (as such term is used in the proxy rules of the SEC) stockholders of the Company for the approval of stockholder proposals, as amended, or otherwise, or cause or encourage any person to initiate any such stockholder proposal;
(c)    propose or nominate, or cause or encourage any Person to propose or nominate, any candidates to stand for election to the Board, or seek the removal of any member of the Board;
(d)    take any public action to act alone or in concert with others to control or seek to control, or to influence or seek to influence, the management, the Board or the policies of the Company;
(e)    form, join or otherwise participate in a “partnership, limited partnership, syndicate or other group” within the meaning of Section 13(d)(3) of the Exchange Act (other than the group already formed among the Investor Group) with respect to the Common Stock or deposit any shares of Common Stock in a voting trust or similar arrangement or subject any shares of Common Stock to any voting agreement or pooling arrangement, or grant any proxy with respect to any shares of Common Stock (other than to a designated representative of the Company pursuant to a proxy statement of the Company); provided, however, that nothing herein shall limit the ability of an Affiliate of any member of the Investor Group to join its existing group following the execution of this Agreement, so long as any such Affiliate agrees to be bound by the terms and conditions of this Agreement;
(f)    acquire, offer or propose to acquire, or agree to acquire (except by the way of stock dividends, stock splits, reverse stock splits or other distributions or offerings made available to holders of shares of Common Stock generally), whether by purchase, tender or exchange offer, through the acquisition of control of another Person, by joining a partnership, limited partnership, syndicate or other group (as defined under Section 13(d) of the Exchange Act) or otherwise, any shares of Common Stock if, as a result of such acquisition, the members of the Investor Group would beneficially own in the aggregate in excess of 45% of the then outstanding shares of Common Stock; 

April 4, 2014
Page 4

(g)    without the prior approval of the Board contained in a written resolution of the Board, (x) either directly or indirectly for the Investor Group, or in conjunction with any other Person in which it is or proposes to be either a principal, partner or financing source or is acting or proposes to act as broker or agent for compensation, effect or seek, offer or propose (whether publicly or otherwise) to effect, or cause or participate in, or (y) except as set forth in the next sentence, in any way knowingly support, assist or facilitate any other Person to effect or seek, offer or propose to effect, or cause or participate in, any (i) tender offer or exchange offer, merger, acquisition or other business combination involving the Company or any of its subsidiaries; provided, however, that this clause shall not preclude the tender by any member of the Investor Group or any of its Affiliates of any securities of the Company into any tender or exchange offer approved by the Board; (ii) form of business combination or acquisition or other transaction relating to a material amount of assets or securities of the Company or any of its subsidiaries or (iii) form of restructuring, recapitalization or similar transaction with respect to the Company or any of its subsidiaries. Notwithstanding the foregoing, nothing in this Section 9(g) shall prohibit the Investor Group from presenting any potential transaction to the Board on a private basis in circumstances that would not reasonably be expected to require public disclosure by the Company or the Investor Group at or around the time the proposal is made;
(h)    seek to call, or to request the call of, or call a special meeting of the stockholders of the Company, or make a request for a list of the Company’s stockholders or other Company records; or
(i)    otherwise take, or solicit, cause or encourage others to take, any action inconsistent with any of the foregoing.
For the avoidance of doubt, any actions of the New Directors taken in their capacity as members of the Board (including, without limitation, voting on any matter submitted for consideration by the Board, participating in deliberations or discussions of the Board and making suggestions or raising issues to the Board) shall not be deemed to violate the foregoing clauses (a) through (i).  For purposes of this Agreement, “Standstill Period” shall mean the period commencing on the date hereof until the conclusion of the 2014 Annual Meeting.  
For purposes of this Agreement, “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated by the SEC under the Exchange Act.  
10.    Nothing in this Agreement to the contrary shall prohibit MSCC, during the Standstill Period or otherwise, from exercising its rights and performing its obligations under that certain Loan Agreement dated as of October 17, 2013 by and among the Company, its subsidiaries and MSCC (as may be amended from time to time, the “Loan Agreement”) in its capacity as a lender, the administrative agent or the collateral agent under the Loan Agreement.
11.    Within ten (10) business days following receipt of reasonably satisfactory documentation thereof, the Company shall reimburse the Investor Group for its reasonable fees and expenses (including legal expenses) incurred in connection with the matters related 

April 4, 2014
Page 5

to the 2014 Annual Meeting and the negotiation and execution of this Agreement, provided that such reimbursement shall not exceed $40,000.  
12.    No later than the next business day following the execution of this Agreement, the Company shall issue the press release in the form attached hereto as Exhibit B (the “Press Release”) and file a Form 8-K reporting the entry into this Agreement and appending this Agreement as an exhibit thereto.  No later than the second business day following the execution of this Agreement, the Investor Group shall file an amendment to its Schedule 13D reporting the entry into this Agreement and appending this Agreement as an exhibit thereto.  During the Standstill Period, neither the Company nor the Investor Group shall make any public announcement or statement with respect to this Agreement or the actions contemplated hereby that is inconsistent with or contrary to the Press Release, except as required by law or the rules of any stock exchange or with the prior written consent of the other party.  
13.    The Company and the Investor Group each acknowledge and agree that (a) a breach or a threatened breach by any party hereto may give rise to irreparable injury inadequately compensable in damages and accordingly each party shall be entitled to injunctive relief, without proof of actual damages, to prevent a breach or threatened breach of the provisions hereof and to enforce specifically the terms and provisions hereof in any state or federal court having jurisdiction, (b) no party shall plead in defense for any such relief that there would be an adequate remedy at law, (c) any applicable right or requirement that a bond be posted by any party is waived and (d) such remedies shall not be the exclusive remedies for a breach of this Agreement, but will be in addition to all other remedies available at law or in equity.
14.    All notices and other communications under this Agreement shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person or by Federal Express or registered or certified mail, postage pre-paid, return receipt requested, as follows:
If to the Company: 
 
Glowpoint, Inc. 
1776 Lincoln Avenue, Suite 1300 
Denver, Colorado 80203 
Attn:  Chief Executive Officer
with a copy (which shall not constitute notice) to: 
 
Kristin L. Lentz 
Davis Graham & Stubbs LLP 
1550 17th Street, Suite 500 
Denver, Colorado  80202

April 4, 2014
Page 6

		
	If to the Investor Group: 
 
GP Investment Holdings, LLC 
1300 Post Oak Boulevard 
Houston, Texas 77056 
Attn:
	Robert M. Shuford 
    Brian Pessin

with a copy (which shall not constitute notice) to: 
 
Steve Wolosky 
Olshan Frome Wolosky LLP 
Park Avenue Tower 
65 East 55th Street 
New York, New York 10022
15.    This Agreement may be executed by the signatories hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument.
16.    This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its conflict of laws principles.  The parties hereto agree that any legal action or proceeding arising out of or relating to this Agreement brought by the other party or its successors or permitted assigns shall be brought and determined in the United States District Court for the District of Delaware or the courts of the State of Delaware located in the County of New Castle, Delaware, and each party hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts.
17.    This Agreement constitutes the only agreement between the Investor Group and the Company with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions with respect to the subject matter hereof, whether oral or written.  This Agreement shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.  This Agreement may not be assigned by any party without the express written consent of the other party.  No amendment, modification, supplement or waiver of any provision of this Agreement may in any event be effective unless in writing and signed by the party or parties affected thereby.
18.    The Company represents and warrants that (a) the Company has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby, and (b) this Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company and is enforceable against the Company in accordance with its terms.
19.    GP Investment represents and warrants that (a) it has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to 

April 4, 2014
Page 7

consummate the transactions contemplated hereby, and (b) this Agreement has been duly and validly authorized, executed and delivered by GP Investment, constitutes a valid and binding obligation and agreement of GP Investment and is enforceable against GP Investment in accordance with its terms.
20.    MSCC represents and warrants that (a) it has the power and authority to execute, deliver and carry out the terms and provisions of this Agreement and to consummate the transactions contemplated hereby, and (b) this Agreement has been duly and validly authorized, executed and delivered by MSCC, constitutes a valid and binding obligation and agreement of MSCC and is enforceable against MSCC in accordance with its terms.
21.    Brian Pessin, Sandra Pessin and Norman Pessin each represents and warrants that this Agreement has been duly and validly executed and delivered by him or her, constitutes a valid and binding obligation and agreement of him or her and is enforceable against him or her in accordance with its terms.
[Remainder of page intentionally left blank.]

April 4, 2014
Page 8

If you agree with the foregoing, please sign and return a copy of this letter, which will constitute our agreement with respect to the subject matter of this letter.

	
				
	 
	Very truly yours,

	 
	 

	 
	GLOWPOINT, INC.

	 
	 

	 
	By:
	/s/ Peter Holst

	 
	 
	Name:
	Peter Holst

	 
	 
	Title:
	President and Chief Executive Officer

	
				
	Accepted and agreed to:
	 

	 
	 

	 
	 

	GP INVESTMENT HOLDINGS, LLC
	 

	 
	 

	By:
	/s/ Robert M. Shuford
	 

	 
	Name:
	Robert M. Shuford
	 

	 
	Title:

	Chief Executive Officer
	 

	By:
	/s/ Brian Pessin
	 

	 
	Name:
	Brian Pessin
	 

	 
	Title:
	President
	 

	
				
	MAIN STREET CAPITAL CORPORATION
	 

	 
	 

	By:
	/s/ Robert M. Shuford
	 

	 
	Name:
	Robert M. Shuford
	 

	 
	Title:
	Managing Director
	 

	
		
	 
	 

	/s/ Brian Pessin
	 

	Brian Pessin
	 

	
		
	 
	 

	/s/ Norman Pessin
	 

	Norman Pessin
	 

	
		
	 
	 

	/s/ Sandra Pessin
	 

	Sandra Pessin
	 

Exhibit A

Executed Resignation Letters

April 4, 2014

Glowpoint, Inc.
1776 Lincoln Street, Suite 1300
Denver, Colorado 80203
Attn:  Secretary

Re:    Resignation as Director

Dear Sir:

I hereby resign as a Director of Glowpoint, Inc., a Delaware corporation (the “Company”), conditional upon, and effective as of, the parties’ execution and delivery of that certain Letter Agreement, dated the date hereof, by and among the Company, GP Investment Holdings, LLC, Main Street Capital Corporation, Brian Pessin, Sandra Pessin and Norman Pessin, in the form presented to and approved by the Board of Directors of the Company.

Sincerely,

/s/ Jon A. DeLuca

Jon A. DeLuca

April 4, 2014

Glowpoint, Inc.
1776 Lincoln Street, Suite 1300
Denver, Colorado 80203
Attn:  Secretary

Re:    Resignation as Director

Dear Sir:

I hereby resign as a Director of Glowpoint, Inc., a Delaware corporation (the “Company”), conditional upon, and effective as of, the parties’ execution and delivery of that certain Letter Agreement, dated the date hereof, by and among the Company, GP Investment Holdings, LLC, Main Street Capital Corporation, Brian Pessin, Sandra Pessin and Norman Pessin, in the form presented to and approved by the Board of Directors of the Company.

Sincerely,

/s/ Grant Dawson

Grant Dawson

Exhibit B

Press Release

Glowpoint Announces Changes to its Board of Directors

DENVER, CO, April 7, 2014 - Glowpoint, Inc. (NYSE MKT: GLOW), a leading provider of video collaboration services and network solutions, today announced the resignation of Jon DeLuca and Grant Dawson as directors of the Company and the appointment of James H. Cohen and Patrick Lombardi to the Board of Directors.  
“On behalf of Glowpoint and the entire Board I want to express our appreciation for Jon’s and Grant’s service to the Company.  Their contributions have been highly valued, and I wish them the very best in future endeavors,” said Peter Holst, CEO and President of Glowpoint.  “I am pleased to welcome Jim and Pat to the Board of Directors and believe they bring a valuable perspective to both the Company and shareholders alike.”  
From 2005 until February 2014, Mr. Cohen served as Executive Vice President of Mergers & Acquisitions for Consolidated Graphics, Inc., which until its acquisition by RR Donnelly & Sons on January 31, 2014 was a public company traded on the NYSE with revenues of approximately $1.1 billion.  Prior to Consolidated Graphics, Mr. Cohen’s work experience includes investment banking (Morgan Stanley & Co.), private equity (Main Street Capital) and corporate law (Simpson Thacher & Bartlett and Baker Botts).

From 1996 until March 2013, Patrick Lombardi was the owner of PJL Associates, Inc., a consultancy company that provided strategic business, merger and acquisition, and financial consulting services to global communication service providers.  Mr. Lombardi has previously served on the Board of Directors of Jones Intercable Inc., Bell Cablemedia plc and as Chairman of the Audit Committee of Raindance Communications, Inc., prior to its sale to West Corporation in 2006.
In connection with the changes to its Board of Directors, the Company also announced that it had reached an agreement with GP Investment Holdings, LLC and certain related investors (the “GPI Investor Group”), who collectively own approximately 43% of the outstanding shares of the Company’s common stock.  Under the agreement, the Company appointed Messrs. Cohen and Lombardi to the Board and agreed to nominate them to stand for election as directors at the Company’s 2014 annual meeting of stockholders.  The GPI Investor Group agreed to vote for the Company’s director nominees, including Messrs. Cohen and Lombardi, at the 2014 annual meeting and to not take certain actions during a standstill period that expires at the conclusion of the 2014 annual meeting.

About Glowpoint

Glowpoint, Inc. (NYSE MKT: GLOW) provides video collaboration, network, and support services to large enterprises and mid-sized companies to support their unified communications (UC) strategies and business goals. More than 600 organizations in 96 countries rely on our unmatched experience, business-class support and cloud-based services to collaborate with colleagues, business partners, and customers more effectively. To learn more please visit www.glowpoint.com.

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