Company: WKSP
Filing Date: 2025-03-28
Form Type: S-1
Source: 0001641172-25-001309
Chunk: 59

Company: Worksport Ltd
Filing Date: 2025-03-28
Form: S-1
Chunk 59
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 (212) 828-8436.

Possible Anti-Takeover Effects of Nevada Law and our Articles of Incorporation and Bylaws

Nevada Anti-Takeover Statutes

Nevada’s anti-takeover laws are designed to
protect corporations from hostile takeovers and unsolicited acquisition attempts. These laws provide various mechanisms that could potentially
deter or complicate efforts by outsiders to gain control of a Nevada-incorporated company without the consent of its board of directors.

Key provisions include:

| 1. | Control Share Acquisitions (NRS 78.378-78.3793): This statute addresses acquisitions of a controlling interest in a corporation. It stipulates that unless otherwise provided in the articles of incorporation or bylaws, if an acquiring person obtains a controlling interest in a corporation, the acquired shares that exceed the threshold for a controlling interest may not have voting rights unless approved by a majority vote of disinterested shareholders.                                                                                                                                                                                                                 |
| 2. | Combinations with Interested Stockholders (NRS 78.411-78.444): This set of statutes regulates mergers and other combinations between a Nevada corporation and an “interested stockholder,” which is defined as a person or entity that owns 10% or more of the corporation’s outstanding voting shares. For a period of three years after the date on which the person becomes an interested stockholder, a combination between the corporation and the interested stockholder is prohibited unless the combination or the transaction by which the person became an interested stockholder is approved by the corporation’s Board of Directors before the person attained such status. |
| 3. | Acquisition of Controlling Interest (NRS 78.378-78.3793): These provisions govern the acquisition of a “controlling interest” in a Nevada corporation, defined as the ownership of outstanding voting shares sufficient to enable the acquiring person, directly or indirectly, to elect a majority of the board of directors. The statute allows the corporation, under certain conditions, to restrict the voting rights of shares acquired that result in a controlling interest, unless the acquisition is approved by a vote of the existing shareholders.                                                                                                                         |

These anti-takeover laws provide Nevada corporations
with tools to defend against hostile takeovers and ensure that any change of control happens in a manner that is fair and beneficial to
all shareholders. It’s important to note that these statutes allow flexibility in their application, as corporations can opt out
of or modify the default provisions through their articles of incorporation or bylaws.

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