Document:

Exhibit
4.1

 

DESCRIPTION
OF THE SECURITIES OF BALLANTYNE STRONG, INC.

REGISTERED
PURSUANT TO SECTION 12 OF 

THE SECURITIES EXCHANGE ACT OF 1934

 

The
following summarizes the terms and provisions of the securities of Ballantyne Strong, Inc., a Delaware corporation (the “Company”).
The common stock of the Company is registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). The following summary does not purport to be complete and is qualified in its entirety by reference to the Company’s
Certificate of Incorporation and Bylaws, each as amended, which the Company has previously filed with the Securities and Exchange Commission,
and applicable Delaware law.

 

Authorized
Capital

 

The
Company’s authorized capital stock consists of 50,000,000 shares of common stock, $0.01 par value per share (the “Common
Stock”), and 1,000,000 shares of preferred stock, $0.01 par value per share (the “Preferred Stock”).

 

Under
Delaware law, stockholders generally are not personally liable for a corporation’s acts or debts.

 

Exchange
and Trading Symbol

 

The
Common Stock is listed for trading on the NYSE American under the trading symbol “BTN.”

 

Rights
and Preferences

 

All
outstanding shares of Common Stock are duly authorized, fully paid and nonassessable. Holders of shares of Common Stock have no conversion,
preemptive or subscription rights, and there are no redemption or sinking fund provisions applicable to the Common Stock. The rights,
preferences and privileges of the holders of Common Stock are subject to, and may be adversely affected by, the rights of the holders
of shares of any series of Preferred Stock that the Company may designate and issue in the future.

 

In
the event of the Company’s liquidation, dissolution or winding up, the holders of Common Stock are entitled to share ratably in
the assets legally available for distribution to stockholders after the payment of all of the Company’s known debts and liabilities
and after adequate provision has been made for each class of stock having preference over the Common Stock, if any.

 

Voting
Rights

 

Holders
of Common Stock are entitled to one vote for each share held of record on all matters to be voted on by the stockholders. There is no
cumulative voting with respect to the election of directors. Directors are elected by a plurality of the votes cast by the holders of
Common Stock. Except as otherwise required by law, all other matters brought to a vote of the holders of Common Stock are determined
by a majority of the votes cast and, except as may be provided with respect to any other outstanding class or series of the Company’s
stock, the holders of shares of Common Stock possess the exclusive voting power.

 

Dividends

 

Subject
to preferences that may be applicable to any then outstanding shares of Preferred Stock, the holders of Common Stock are entitled to
receive dividends, if any, as may be declared from time to time by the Company’s Board of Directors out of legally available funds.

 

Preferred
Stock

 

The
Board of Directors of the Company is authorized, subject to any limitations prescribed by applicable law and without further approval
or action by the holders of Common Stock, to issue shares of Preferred Stock in one or more series. The Board of Directors may fix the
designation, powers, preferences and rights of the shares of each such series and any qualifications, limitations or restrictions thereof,
including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences and sinking fund terms. The
Company has no outstanding shares of Preferred Stock.

 

The
rights of the holders of Common Stock will generally be subject to the prior rights of the holders of any outstanding shares of Preferred
Stock with respect to dividends, liquidation preferences and other matters.

 

    	 

    	 

    

 

Anti-Takeover
Effects of Provisions of Delaware Law and the Company’s Certificate of Incorporation and Bylaws

 

Delaware
Anti-Takeover Law

 

The
Company is subject to Section 203 of the Delaware General Corporation Law (“Section 203”). Section 203 generally prohibits
a public Delaware corporation from engaging in a “business combination” with an “interested stockholder” for
a period of three years after the date of the transaction in which the person became an interested stockholder unless:

 

	 	●	prior
    to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction
    which resulted in the stockholder becoming an interested stockholder;
	 	●	upon
    consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder
    owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes
    of determining the number of shares outstanding (but not the outstanding voting stock owned by the interested stockholder) those
    shares owned by (i) persons who are directors and also officers and (ii) employee stock plans in which employee participants do not
    have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer;
    or
	 	●	at
    or subsequent to such time the business combination is approved by the board of directors and authorized at an annual or special
    meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock
    which is not owned by the interested stockholder.

 

Section
203 defines a “business combination” to generally include:

 

	 	●	any
    merger or consolidation of the corporation or any direct or indirect majority-owned subsidiary of the corporation with the interested
    stockholder;
	 	●	any
                                                                              sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions), except
                                                                              proportionately as a stockholder of such corporation, to or with the interested stockholder of assets of the corporation or of any
                                                                              direct or indirect majority-owned subsidiary of the corporation which assets have an aggregate market value equal to 10% or more of
                                                                              either the aggregate market value of all the assets of the corporation determined on a consolidated basis or the aggregate market
                                                                              value of all the outstanding stock of the corporation;

	 	●	subject
                                                                              to certain exceptions, any transaction which results in the issuance or transfer by the corporation or by any direct or indirect
                                                                              majority-owned subsidiary of the corporation of any stock of the corporation or of such subsidiary to the interested
                                                                              stockholder;

	 	●	subject
                                                                              to certain exceptions, any transaction involving the corporation or any direct or indirect majority- owned subsidiary of the
                                                                              corporation that has the effect, directly or indirectly, of increasing the interested stockholder’s proportionate share of the
                                                                              stock of any class or series of securities, or securities convertible into the stock of any class or series, of the corporation or
                                                                              of any such subsidiary; and

	 	●	any
                                                                              receipt by the interested stockholder of the benefit, directly or indirectly (except proportionately as a stockholder of such
                                                                              corporation), of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation or any
                                                                              direct or indirect majority-owned subsidiary.

 

In
general, Section 203 defines an interested stockholder as any entity or person that (i) is the owner of 15% or more of the outstanding
voting stock of the corporation, or (ii) is an affiliate or associate of the corporation and was the owner of 15% or more of the outstanding
voting stock of the corporation at any time within the three-year period immediately prior to the date on which it is sought to be determined
whether such person is an interested stockholder, and the affiliates and associates of such person.

 

Certificate
of Incorporation and Bylaws

 

The
Company’s Certificate of Incorporation and Bylaws include anti-takeover provisions that:

 

	 	●	authorize
    the Board of Directors, without further action by the stockholders, to issue shares of Preferred Stock in one or more series, and
    with respect to each series, to fix the number of shares constituting that series, and establish the rights and terms of that series;
	 	●	establish
    advance notice procedures for stockholders to submit nominations of candidates for election to the Board of Directors to be brought
    before a stockholders meeting;
	 	●	allow
    the Company’s directors to establish the size of the Board of Directors and fill vacancies on the Board created by an increase
    in the number of directors (subject to the rights of the holders of any series of Preferred Stock to elect additional directors under
    specified circumstances);

 

    	 

    	 

    

 

	 	●	require
    the affirmative vote of the holders of at least 66 2/3% of the voting power of all of the then- outstanding shares of capital stock
    of the Company entitled to vote generally in the election of directors in order to remove a director or the entire Board of Directors
    for cause;
	 	●	do
    not provide stockholders cumulative voting rights with respect to director elections; and
	 	●	provide
    that the Company’s Bylaws may be amended by the Board of Directors without stockholder approval; provided, however, that the
    stockholders may amend the Bylaws only with the affirmative vote of the holders of at least 66 2/3% of the voting power of all of
    the then-outstanding shares of capital stock of the Company entitled to vote generally in the election of directors.

 

Provisions
of the Company’s Certificate of Incorporation and Bylaws may delay or discourage transactions involving an actual or potential
change in the Company’s control or change in the Company’s Board of Directors or management, including transactions in which
stockholders might otherwise receive a premium for their shares or transactions that the Company’s stockholders might otherwise
deem to be in their best interests. Therefore, these provisions could adversely affect the price of the Common Stock.

 

Authorized
and Unissued Shares

 

The
Company’s authorized and unissued shares of Common Stock are available for future issuance without stockholder approval except
as may otherwise be required by applicable stock exchange rules or Delaware law. The Company may issue additional shares for a variety
of purposes, including future offerings to raise additional capital, to fund acquisitions and as employee and consultant compensation.
The existence of authorized but unissued shares of Common Stock could render more difficult, or discourage an attempt, to obtain control
of the Company by means of a proxy contest, tender offer, merger or otherwise.

 

The
issuance of shares of Preferred Stock by the Company could have certain anti-takeover effects under certain circumstances, and could
enable the Board of Directors to render more difficult or discourage an attempt to obtain control of the Company by means of a merger,
tender offer, or other business combination transaction directed at the Company by, among other things, placing shares of Preferred Stock
with investors who might align themselves with the Board of Directors.ex_350451.htm

Exhibit 10.3

 

BioLargo, Inc.

2022 Engagement Extension Agreement

 

This Engagement Extension Agreement (the “Extension”) references the Engagement Agreement and Scope Letter dated February 1, 2008 (“2008 Agreement”) by and between CFO 911 (Charles K. Dargan II) (the “Advisor)” and BioLargo, Inc. (the “Company”), and written extensions to the Agreement (the “Prior Extensions”), pursuant to which Charles K. Dargan II has been serving as the Company’s Chief Financial Officer. The parties desire to extend the terms of the prior agreements for a period of one year, pursuant to the terms of this Extension. The 2008 Agreement, the Prior Extensions and this Extension are collectively referred to herein as the “Agreement”.

 

Except as expressly amended or modified herein, all terms and conditions set forth in the 2008 Agreement and Prior Extensions are incorporated herein by this reference and continue to be in full force and effect. The parties acknowledge and confirm that Mr. Dargan has been serving as the Company’s Chief Financial Officer since February 1, 2008, and that he continues to do so through today’s date. The prior extension expired on January 31, 2022. The Advisor and the Company hereby agree to extend the Term of the engagement as set forth in the 2008 Agreement for one year, to expire January 31, 2023 (the “Extended Term”). Notwithstanding the foregoing, either party may terminate this Agreement upon 30 days’ written notice. At the end of the Extended Term, unless this Agreement has been terminated, Advisor shall continue to serve as the Company’s Chief Financial Officer until new terms are agreed upon, or until one of the parties gives notice to terminate the relationship.

 

During the Extended Term, the Advisor shall receive the compensation as set forth in this Extension. The Company shall issue to Charles K. Dargan II an option (the “Option”) to purchase 25,000 shares of the Company’s common stock for each month during the Extended Term (thus, an option to purchase 300,000 shares, representing 12 months). The Option shall vest over the period of the Extended Term, with 25,000 shares having vested as of March 22, 2022, and the remaining shares to vest 25,000 shares monthly beginning March 31, 2022, and each month thereafter, so long as this Agreement is in full force and effect. The Option shall be exercisable at the closing price of the Company’s common stock ($0.24) as of March 22, 2022 (the “Grant Date”), and shall expire ten years from the grant date. The Option shall be issued pursuant to the Company’s 2018 Equity Incentive Plan.

 

AGREED TO AND ACCEPTED AS OF THE DATE LAST SIGNED BELOW

 

	
			CFO 911

				 	
			BioLargo, Inc.

			
	
			18851 NE 29TH Avenue, Suite 700

				 	
			14921 Chestnut Street

			
	
			Aventura, FL 33180

				 	
			Westminster, CA 92683

			
	 	 	 
	
			/s/Charles K Dargan II

				 	
			/s/Dennis P Calvert

			
	
			By:

				 	
			By:

			
	
			Name: Charles K. Dargan II

				 	
			Name: Dennis P. Calvert

			
	
			Title:   Chief Executive Officer

				 	
			Title:   President/CEO

			
	
			Date signed: March 22, 2022

				 	
			Date signed: March 22, 2022

			
	
			Stock price on date signed: ______

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