Document:

Exhibit 4.2

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

The common stock, par value $0.001 per share (the “common stock”) of Global Clean Energy Holdings, Inc. (“GCEH,” “we,” “our,” and “us”) is registered under Section 12 of the Securities Exchange Act of 1934, as amended.  The following description of our common stock and preferred stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Certificate of Incorporation (the “Certificate of Incorporation”) and our Bylaws (the “Bylaws”), each of which is filed as an exhibit to our Annual Report on Form 10-K of which this Exhibit 4.3 is a part. We encourage you to read the Certificate of Incorporation and the Bylaws, as well as the applicable provisions of the Delaware General Corporation Law (the “DGCL”), for additional information.

Authorized Capital Stock

Our authorized capital stock consists of 500,000,000 shares of common stock and 50,000,000 shares of preferred stock, par value $0.001 per share (the “preferred stock”). As of October 10, 2020, 358,499,606 shares of our common stock were issued and outstanding, and 13,000 shares of Series B Convertible Preferred Stock were issued and outstanding, which shares were convertible into 11,818,181 shares of common stock

Common Stock

 

Voting Rights

Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. An election of directors by our stockholders will be determined by a plurality of the votes cast by the stockholders entitled to vote on the election. 

Dividend Rights

Holders of common stock are entitled to receive proportionately any dividends that may be declared by our Board of Directors, subject to any preferential dividend rights of any series of preferred stock that may be outstanding.

Liquidation Rights

In the event of our liquidation or dissolution, the holders of common stock are entitled to receive proportionately our net assets available for distribution to stockholders after the payment of all debts and other liabilities and subject to the preferential rights of any outstanding preferred stock. 

Absence of Other Rights

Holders of common stock have no preemptive, subscription, redemption, or conversion rights. The rights, preferences, and privileges of 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 we may designate and issue.

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Trading Symbol and Transfer Agent

Our common stock is traded on the OTC.PK pink marketplace under the symbol “GCEH.” The transfer agent and registrar for our common stock is Colonial Stock Transfer Co, Inc.  The address of our transfer agent and registrar is 66 Exchange Place, Ste 100 Salt Lake City, UT 84111, and its telephone number is (801) 355-5740. 

Preferred Stock

Under our Certificate of Incorporation, our Board of Directors has the authority, without further action by stockholders, to designate one or more series of preferred stock and to fix the voting powers, designations, preferences, limitations, restrictions, and relative rights granted to or imposed upon the preferred stock, including dividend rights, conversion rights, voting rights, rights and terms of redemption, liquidation preference, and sinking fund terms, any or all of which may be preferential to or greater than the rights of the common stock.

The authority possessed by our Board of Directors to issue preferred stock could potentially be used to discourage attempts by third parties to obtain control of our company through a merger, tender offer, proxy contest, or otherwise by making such attempts more difficult or more costly. Our Board of Directors may issue preferred stock with voting rights, conversion rights, and other rights that, if exercised, could adversely affect the voting power of the holders of common stock.  

Series B Convertible Preferred Stock

In 2007, we created a new class of preferred stock, the Series B Convertible Preferred Stock, designated as “Series B Convertible Preferred Stock.” The shares of Series B Convertible Preferred Stock have a stated value of $100 per share for the purpose of calculating amounts payable upon liquidation, dissolution or winding up, and adjustments to the conversion price.  The rights of the Series B Convertible Preferred Stock are set forth in the Certificate of Incorporation, which gives the holders of the Series B Convertible Preferred Stock the rights, preferences and privileges described in the following paragraphs.

The Series B Convertible Preferred Stock shall, with respect to the rights of the stockholders upon liquidation, dissolution or winding up of the affairs of the corporation, rank senior and prior to the common stock.  In case of the voluntary or involuntary liquidation, dissolution or winding-up of the affairs of GCEH, each share of Series B Convertible Preferred Stok shall be entitled to $100 per share, plus an amount equal to the dividends declared and unpaid with respect to each such share.

No dividends are required to be paid to the holders of Series B Convertible Preferred Stock.  However, no dividend shall be declared or paid on the common stock, other than dividends payable solely in capital stock, unless an equivalent dividend (computed in proportion to the number of shares of common stock into which each share of Series B Convertible Preferred Stock is then convertible) is paid and declared for all outstanding shares of Series B Convertible Preferred Stock.

The holders of Series B Convertible Preferred Stock shall be entitled to vote upon all matters presented to GCEH’s stockholders, together with the holders of the common stock as one class.  Each share of Series B Convertible Preferred Stock shall entitle the holder thereof to that 

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number of votes equal to the number of shares of common stock into which each such share of Series B Convertible Preferred Stock would have been convertible.

The Series B Convertible Preferred Stock may, at the option of the holder, be converted at any time or from time to time into fully paid and non-assessable shares of common stock at the conversion price in effect at the time of conversion.  Each share of Series B Convertible Preferred Stock may be converted into a number of shares of common stock determined by dividing (i) $100 by (ii) the conversion price of such shares as in effect on the date of conversion.  The conversion price currently is $0.11 per share.  The initial conversion price shall be subject to adjustment upon stock dividends, subdivisions, reclassification and combinations of our stock.

Anti-Takeover Effects of Our Certificate of Incorporation and Bylaws

Certain provisions of our Certificate of Incorporation and Bylaws contain provisions that could have the effect of delaying or discouraging another party from acquiring control of us. These provisions, which are summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids. These provisions are also designed in part to encourage anyone seeking to acquire control of us to first negotiate with our Board of Directors. We believe that the advantages gained by protecting our ability to negotiate with any unsolicited and potentially unfriendly acquirer outweigh the disadvantages of discouraging such proposals, including those priced above the then-current market value of our common stock because, among other reasons, the negotiation of such proposals could improve their terms.  However, these provisions may have the effect of preventing changes in our management. It is also possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests.

Our Certificate of Incorporation and Bylaws include provisions that:

•authorize our Board of Directors to issue, without further action by the stockholders, up to 50,000,000 shares of preferred stock in one or more series designated by the Board of Directors; 

•provide that our board of directors will establish the authorized number of directors from time to time within the limits specified in the bylaws; 

•specify that special meetings of our stockholders can be called only by our Board of Directors, the Chairman of the Board, the Chief Executive Officer, or the President; 

•establish an advance notice procedure for stockholder approvals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to our Board of Directors; and 

•provide that vacancies on our Board of Directors may be filled only by a majority of directors then in office, even though less than a quorum. 

 

Delaware Anti-Takeover Statute

 

We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, Section 203 prohibits a publicly-held Delaware corporation such as GCEH from engaging in a “business combination” with an “interested stockholder” for a period of three years following the date the person became an interested stockholder unless:

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•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 completion of the transaction that 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 voting stock outstanding, but not for determining the outstanding voting stock owned by the interested stockholder, (1) shares owned by persons who are directors and also officers of the corporation and (2) shares owned by 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 the date of the transaction, the business combination is approved by the board of directors of the corporation 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. 

In this context, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. An “interested stockholder” is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of a corporation’s outstanding voting stock. We expect the existence of this provision to have an anti-takeover effect with respect to transactions our Board of Directors does not approve in advance. We also anticipate that Section 203 may discourage business combinations or other attempts that might result in a premium over the market price for the shares of common stock held by our stockholders.

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Exhibit 10.2

 

FIRST AMENDMENT TO STANDARD MULTI-TENANT OFFICE LEASE - GROSS

 

This FIRST Amendment to Lease (this “Agreement”)
dated as of January 15, 2019 is entered into by and between Skypark Atrium, LLC (“Lessor”) and Global Clean
Energy Holdings, Inc. a Deleware Corporation (“Lessee”), with reference to the following:

 

RECITALS

 

A.Lessor and Lessee have entered into that certain Lease dated January 7, 2014 collectively refered to as (the “Lease”), with reference to Suite 105 (the “Premises”) of the building located at 2790 Skypark Dr., Torrance, California (the “Building”). 

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, upon execution of this Agreement, the Parties hereby agree as follows:

 

1.Capitalized Terms:  All capitalized terms when used herein shall have the same meanings given such terms in the Lease unless expressly superseded by the terms of this Agreement.  All references in the Lease and in this Agreement to “the Lease” or “this Lease” shall be construed to mean the Lease referenced above as amended and supplemented by this Agreement.   

 

2.Effective Date:  Effective Februry 1, 2019  (the “Effective Date”), the parties hereto desire to modify the Lease in the respects hereinafter set forth. 

 

3.Termination Date:  The Termination Date shall be amended to be July 31, 2019 

 

4.Term:  Lessor and Lessee agree that the term of the Lease is hereby extended for an additional six  (6) months commencing Febuary 1, 2019 and ending July 31, 2019. 

 

5.Base Rent:  Notwithstanding anything to the contrary contained in the Lease, Lessor and Lessee agree that commencing on the Effective Date the Base Rent shall be amended as follows: 

 

 

Period:                                                            Monthly Base Rent: 

Febuary 1, 2019 – July 31, 2019$2,851.20 

 

 

6.Prior Tenancy:  Lessee is the current Lessee in the Premises under the Lease.  Accordingly, notwithstanding anything to the contrary in the Lease, the following shall apply: 

6.1 Lessee accepts the Premises in its existing "as is" condition, without representation or warranty of any kind.

 

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6.2 To the extent that Lessee is obligated or would be obligated upon the passage of time or the giving of notice, or both, under the Lease to remove any addition, improvement, alteration or fixture existing in the Premises or to restore the Premises to the condition that would exist except for such addition, improvement, alteration or fixture, Lessee shall also be obligated under this lease to perform such removal and restoration as if such additions, improvements, alterations or fixtures had been made or installed by Lessee under this Lease, and Lessee shall have been obligated to remove the same and restore the Premises with respect to the same in accordance with this Lease.

6.3 Lessor has no obligation to improve or modify the Premises pursuant to the terms of the lease.

6.4 Lessee has accepted full and complete possession of the Premises and is the actual occupant in possession and has not sublet, assigned or hypothecated or otherwise transferred all or any portion of Lessee's leasehold interest.

 

7.California Mandatory Disclosures regarding the Nature of A Real Estate Agency Relationship and Indemnity:  When entering into a discussion with a real estate agent regarding a real estate transaction, a Lessee or Lessor should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction.  Lessee and Lessor acknowledge being advised by the Brokers in this transaction as follows: 

 

A real estate agent, either acting directly or through one or more associate licenses, can legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee.  In a dual agency situation, the agent has the following affirmative obligations to both the Lessor and the Lessee:  A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealing with the Lessor and Lessee.  A diligent exercise of reasonable skills and care in performance of the agent’s duties.  A duty of honest and fair dealing and good faith.  A duty to disclose all facts, known to the agent, materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties.  An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth above.   

In representing both Lessor and Lessee, the agent may not without the express written permission of the respective party, disclose to the other party that the Lessor will accept rent in an mount less than indicated in the listing or that the Lessee is willing to pay a higher rent than that offered.  The above duties of the agent in the real estate transaction do not relieve Lessor or Lessee from the responsibility to protect their own interests.  Lessor and Lessee should carefully read all agreements to assure that they adequately express their understanding of the transaction.  A real estate agent is a person qualified to advise about real estate.  If legal or tax advice is desired, consult a competent professional.   

Brokers have no responsibility with respect to any default or breach hereof by either Party.  The Parties agree that no lawsuit or other legal proceeding involving any breach of duty, error or omission relating to the proposed Lease may be brought against Broker, except where Broker is found liable for gross negligence or wrongful misconduct.  The liability (including court costs and attorney’s fees), shall not exceed the fee received by such Broker pursuant to the proposed Lease.   

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Lessee acknowledges that Medical Asset Management has made no representations, oral, written, or implied as to whether or not the Lease contains the terms as agreed upon between Lessor and Lessee and Lessee is not relying upon any statement or fact or opinion from Medical Asset Management as to the contents of the lease documents and/or the legal effects. 

Medical Asset Management is hereby advising Lessee to have the Lease documents reviewed by your attorney, accountant(s), and/or insurance agents for professional advice.  Lessee agrees to indemnify, defend and hold harmless Medical Asset Management its representatives, contractors, agents, and employees for any liability or loss, including without limitations, attorney fees and cost that may be occasioned as a result of the execution of this Lease. 

8.Limitation of Liability:  To the maximum extent permitted by law, in no event will either party be responsible for any incidental damages, consequential damages, exemplary damages of any kind, lost goodwill, lost profits, lost business and/or any indirect economic damages whatsoever regardless of whether such damages arise from claims based upon contract, negligence, tort (including strict liability or other legal theory), a breach of any warranty or term of this Agreement, and regardless of whether a party was advised or had reason to know of the possibility of incurring such damages in advance. 

 

Lessee acknowledges that Skypark Atrium, LLC. has made no representations, oral, written, or implied as to whether or not the Lease documents contain the terms as agreed upon between Lessor and Lessee and Lessee is not relying upon any statement or fact or opinion from Skypark Atrium, LLC as to the contents of this Agreement and/or the legal effects.  Skypark Atrium, LLC is hereby advising Lessee to have this Agreement reviewed by its attorney, accountant(s), and/or insurance agents for professional advice.  Lessee agrees to indemnify and hold harmless Skypark Atrium, LLC., its representatives, contractors, agents, and employees for any liability or loss, including without limitations, attorney fees and cost that may be occasioned as a result of the execution of this Agreement. 

 

9.No CASP Inspection:  Pursuant to California Civil Code Section 1938, Lessee is hereby notified that, as of the date hereof, the Property has not undergone an inspection by a "Certified Access Specialist" and except to the extent expressly set forth in this Lease, Lessor shall have no liability or responsibility to make any repairs or modifications to the Premises or the Property in order to comply with accessibility standards. The following disclosure is hereby made pursuant to applicable California law: "A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises."   Tenant acknowledges that Lessor has made no representation regarding compliance of the Premises or the Property with accessibility standards. Any CASp inspection shall be conducted in compliance with reasonable rules in effect at the Building with regard to such inspections and shall be subject to Lessor’s prior written consent. 

 

10.Airport Proximity Disclosure:  Lessee acknowledges that the Building is located adjacent to an airport and is subject to occasional noise pollution from helicopters, planes and other airport activates  

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that can be a nuisance. Lessee and Lessor herby indemnify and hold harmless the other party from any claims, liability or damages related to the noise pollution or mitigation thereof.

 

11.Broker:  Lessor hereby represents and warrants to Lessee that it has dealt with no broker; finder or similar person in connection with this Agreement other than Medical Asset Management., and Lessee hereby represents and warrants to Lessor that it has dealt with no broker, finder or similar person in connection with this Agreement.  Lessor and Lessee shall each defend, indemnify and hold the other harmless with respect to all claims, causes of action, liabilities, losses, costs and expenses (including without limitation attorneys' fees) arising from a breach of the foregoing representation and warranty. 

 

12.Ratification:  This Agreement shall supplement and amend the Lease and the provisions set forth below shall supersede any inconsistent provisions set forth in the Lease.  Except as otherwise specifically herein amended all of the terms, covenants, conditions, provisions and agreements of the Lease shall remain in full force and effect.  This Agreement shall be construed to be part of the Lease and shall be deemed incorporated into the Lease by this reference. 

 

13.Counterparts:  This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. 

 

14.Confidentiality:  Lessor and Lessee agree that all terms and conditions of this Agreement are personal and confidential.  The Agreement terms are not to be discussed with person or persons outside the parties to this Agreement. 

IN WITNESS WHEREOF, Lessor and Lessee have caused this Agreement to be duly executed and delivered on the date shown below, their respective signatures to memorialize the agreement of the Parties, as of the date first above written.

 

LESSOR:

SKYPARK ATRIUM, LLC, a California limited liability company

BY: SKYPARK ATRIUM I, LLC, a California limited liability company,

ITS: Managing Member

 

 

	By:

	/s/ STEVEN LOO

	Name:

	Steven Loo, Executive Manager

 

LESSEE:

Global Clean Energy Holdings, Inc. a Deleware Corporation 

 

 

 

	By:

	/s/ RICHARD PALMER

	Name:

	Richard Palmer

	Title:

	President & CEO

 

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