Document:

Exhibit 4(ii)

 

DESCRIPTION OF NATIONAL BANKSHARES, INC.’S SECURITIES

 

As of December 31, 2021, the common stock of National Bankshares, Inc. (“NBI”) was the only class of its securities registered under Section 12 of the Securities Exchange Act of 1934. The following summary description of the material features of the common stock of NBI does not purport to be complete and is subject to, and qualified in its entirety by reference to, NBI’s articles of incorporation and bylaws, each as amended. For more information, refer to NBI’s articles of incorporation and bylaws and any applicable provisions of relevant law, including the Virginia Stock Corporation Act and federal laws governing banks and bank holding companies.

 

General

 

NBI is authorized to issue 10,000,000 shares of common stock, par value $1.25 per share. Each share of NBI common stock has the same relative rights as, and is identical in all respects to, each other share of its common stock. NBI’s common stock is listed on the Nasdaq Capital Market under the symbol “NKSH.” The transfer agent for NBI’s common stock is Computershare, Inc., 250 Royall Street, Canton, Massachusetts 02021.

 

Dividends

 

NBI’s shareholders are entitled to receive dividends or distributions that its board of directors may declare out of funds legally available for those payments. The payment of distributions by NBI is subject to the restrictions of Virginia law applicable to the declaration of distributions by a corporation. A Virginia corporation generally may not authorize and make distributions if, after giving effect to the distribution, it would be unable to meet its debts as they become due in the usual course of business or if the corporation’s total assets would be less than the sum of its total liabilities plus the amount that would be needed, if it were dissolved at that time, to satisfy the preferential rights of shareholders whose rights are superior to the rights of those receiving the distribution. In addition, the payment of distributions to shareholders is subject to any prior rights of outstanding preferred stock.

 

As a bank holding company, NBI’s ability to pay dividends is affected by the ability of the National Bank of Blacksburg (“National Bank”), its bank subsidiary, to pay dividends to the holding company. The ability of National Bank, as well as NBI, to pay dividends is influenced by bank regulatory requirements and capital guidelines.

 

Liquidation Rights

 

In the event of any liquidation, dissolution or winding up of NBI, the holders of shares of its common stock will be entitled to receive, after payment of all debts and liabilities of NBI and after satisfaction of all liquidation preferences applicable to any preferred stock, all remaining assets of NBI available for distribution in cash or in kind.

 

Voting Rights

 

The holders of NBI common stock are entitled to one vote per share and, in general, a majority of votes cast with respect to a matter is sufficient to authorize action upon routine matters. Directors are elected by a plurality of the votes cast, and shareholders do not have the right to accumulate their votes in the election of directors.

 

Classes of Directors

 

NBI’s board of directors is divided into three classes, apportioned as evenly as possible, with directors serving staggered three-year terms.

 

No Preemptive Rights; Redemption and Assessment

 

Holders of shares of NBI common stock are not entitled to preemptive rights with respect to any shares that may be issued. NBI common stock is not subject to redemption or any sinking fund and the outstanding shares are fully paid and nonassessable.

 

 

 

 

Preferred Stock

 

NBI’s board of directors is empowered to authorize the issuance of shares of preferred stock, in one or more series, at such times, for such purposes and for such consideration as it may deem advisable without shareholder approval. NBI’s board may fix and determine the relative rights, preferences, privileges and limitations of the shares of any series, including dividend rights and dividend rates, voting rights, liquidation price, redemption rights and redemption prices, sinking fund requirements and conversion rights. Each series of preferred stock will rank on a parity as to dividends and assets with all other series according to the respective dividend rates and amounts attributable upon voluntary or involuntary liquidation, dissolution or winding up of NBI fixed for each series and without preference or priority of any series over any other series. All shares of preferred stock will rank, with respect to dividends and liquidation rights, senior to the common stock. The creation and issuance of any class or series of preferred stock, and the relative rights, designations and preferences of such class or series, if and when established, will depend upon, among other things, the future capital needs of NBI, then existing market conditions and other factors that, in the judgment of NBI’s board, might warrant the issuance of preferred stock.

 

Certain Anti-Takeover Provisions of NBI’s Articles and Bylaws and Virginia Law

 

Certain provisions of NBI’s articles of incorporation and bylaws contain provisions that may have the effect of discouraging, delaying, or preventing a change in control of NBI by means of a tender offer, a proxy fight, open market purchases of shares of its common stock, or otherwise in a transaction not approved by NBI’s board of directors. These provisions are designed to reduce, or have the effect of reducing, NBI’s vulnerability to coercive takeover practices and inadequate takeover bids. However, the existence of these provisions could prevent NBI shareholders from receiving a premium over the then prevailing market price of NBI common stock or a transaction that may otherwise be in the best interest of NBI shareholders. In addition, these provisions make it more difficult for NBI shareholders, should they choose to do so, to remove NBI’s board of directors or management. These provisions include the following:

 

Authorized Preferred Stock. NBI’s articles of incorporation authorize NBI’s board of directors to establish one or more series of preferred stock and to determine, with respect to any series of preferred stock, the rights, preferences and other terms of such series. Under this authority, NBI’s board could create and issue a series of preferred stock with rights, preferences or restrictions that have the effect of discriminating against an existing or prospective holder of NBI’s common stock as a result of such holder beneficially owning or commencing a tender offer for a substantial amount of common stock. One of the effects of authorized but unissued and unreserved shares of preferred stock may be to render it more difficult for, or to discourage an attempt by, a potential acquirer to obtain control of NBI by means of a merger, tender offer, proxy contest, or otherwise, and thereby protect the continuity of NBI’s management.

 

Classified Board of Directors. NBI’s articles of incorporation and bylaws divide its board of directors into three classes, apportioned as evenly as possible, with directors serving staggered three-year terms. As a result, at least two annual meetings of shareholders may be required for the shareholders to replace a majority of NBI’s directors, subject to the shareholders’ ability to remove directors with or without cause by vote of the holders of a majority of NBI’s outstanding common shares. The classification of NBI’s board makes it more difficult and time consuming to gain control of the board.

 

Board Vacancies. Virginia law and NBI’s articles of incorporation and bylaws provide that any vacancy occurring on NBI’s board may be filled by the remaining members of the board. These provisions may discourage, delay, or prevent a third party from voting to remove incumbent directors and simultaneously gaining control of NBI’s board by filling the vacancies created by that removal with its own nominees.

 

Supermajority Voting Provisions. NBI’s articles of incorporation require the approval of the holders of at least 80% of each class of NBI’s outstanding voting stock for certain mergers and other business combinations involving NBI and beneficial owners of 5% or more of NBI’s outstanding capital stock entitled to vote for the election of directors (a “significant shareholder”), unless (i) the proposed business combination has been approved by a majority of the members of the board of directors who are not affiliated with the significant shareholder and who were directors before the corporation, person or entity became a significant shareholder, or (ii) certain conditions regarding the nature and amount of consideration to be received in the proposed business combination by holders of NBI’s capital stock have been satisfied. If such an action does not involve a significant shareholder, it must be approved by the affirmative vote of the holders of more than two-thirds of the outstanding capital stock of NBI entitled to vote on the transaction. The affirmative vote of the holders of at least 80% of each class of NBI’s outstanding voting stock is required to amend such provision or to adopt any provision inconsistent with such requirement.

 

No Cumulative Voting. NBI’s articles of incorporation do not provide for cumulative voting for any purpose. The absence of cumulative voting may afford anti-takeover protection by making it more difficult for NBI’s shareholders to elect nominees opposed by the board of directors.

 

Inability of Shareholders to Call Special Meetings. Pursuant to NBI’s bylaws, special meetings of shareholders may only be called by NBI’s chairman of the board of directors, the president or by a majority of the board of directors. As a result, shareholders are not able to act on matters other than at annual shareholders meetings unless they are able to persuade NBI’s chairman of the board of directors, the president or a majority of directors to call a special meeting.

 

 

 

 

Advance Notification Requirements. NBI’s bylaws establish advance notice procedures with respect to the raising of business or the nomination of persons for election as directors at an annual shareholders meeting, other than business presented or nominations made by or at the direction of NBI’s board. Pursuant to NBI’s bylaws, a shareholder must give timely notice in writing not less than 60 days nor more than 90 days prior to the meeting; provided, however, in the event that less than 70 days’ notice or prior public disclosure of the date of the meeting is given or made to shareholders, notice by the shareholder to be timely must be so received not later than the close of business on the tenth day following the day on which public announcement of the date of such meeting is first made. The bylaws further condition the presentation of shareholder nominations for director or proposals for business on compliance with a number of conditions. In addition, a shareholder must also comply with applicable rules of the Securities and Exchange Commission in order for his or her shareholder proposal to be included in NBI’s proxy statement relating to the annual meeting.

 

Virginia Anti-takeover Statutes. Virginia has two antitakeover statutes: the Affiliated Transactions Statute and the Control Share Acquisitions Statute.

 

Affiliated Transactions Statute. Under the Affiliated Transactions Statute, an affiliated transaction generally is defined as any of the following transactions: (i) a merger, a share exchange, material dispositions of corporate assets not in the ordinary course of business to or with an interested shareholder (defined as any holder of more than 10% of any class of outstanding voting shares), or any material guarantee of any indebtedness of any interested shareholder; (ii) certain sales or other dispositions of the corporation’s voting shares or any of the corporation’s subsidiaries having an aggregate fair market value greater than 5% of the aggregate fair market value of all outstanding voting shares; (iii) any dissolution of the corporation proposed by or on behalf of an interested shareholder; or (iv) any reclassification, including reverse stock splits, or recapitalization that increases the percentage of outstanding voting shares owned beneficially by any interested shareholder by more than 5%.

 

In general, these provisions prohibit a Virginia corporation from engaging in affiliated transactions with an interested shareholder for a period of three years following the date that such person became an interested shareholder unless: (i) the board of directors of the corporation and the holders of two-thirds of the voting shares, other than the shares beneficially owned by the interested shareholder, approve the affiliated transaction; or (ii) before the date the person became an interested shareholder, the board of directors approved the transaction that resulted in the shareholder becoming an interested shareholder.

 

After three years, any such transaction must be at a “fair price,” as statutorily defined, or must be approved by the holders of two-thirds of the voting shares, other than the shares beneficially owned by the interested shareholder.

 

The shareholders of a Virginia corporation may adopt an amendment to the corporation’s articles of incorporation or bylaws opting out of the Affiliated Transactions Statute. NBI’s articles of incorporation and bylaws do not contain a provision opting out of the Affiliated Transactions Statute.

 

Control Share Acquisitions Statute. Virginia law also contains provisions relating to control share acquisitions, which are transactions causing the voting strength of any person acquiring beneficial ownership of shares of a Virginia public corporation to meet or exceed certain threshold percentages (20%, 33 1/3% or 50%) of the total votes entitled to be cast for the election of directors. Shares acquired in a control share acquisition have no voting rights unless: (i) the voting rights are granted by a majority vote of all outstanding shares other than those held by the acquiring person or any officer or employee director of the corporation; or (ii) the articles of incorporation or bylaws of the corporation provide that these Virginia law provisions do not apply to acquisitions of its shares.

 

The acquiring person may require that a special meeting of the shareholders be held to consider the grant of voting rights to the shares acquired in the control share acquisition.

 

Under Virginia law, a corporation’s articles of incorporation or bylaws may contain a provision opting out of the Control Share Acquisitions Statute. NBI’s articles of incorporation and bylaws do not contain a provision opting out of the Control Share Acquisitions Statute.Exhibit
10.22

 

EXECUTION
VERSION

 

ASSET
AND INTEREST TRANSFER AGREEMENT

 

This
Asset and Interest Transfer Agreement (this “Agreement”) is entered into as of March [●], 2022, by and
between Series MRCS, a designated series of MDA, Series, LLC, a Delaware series limited liability company (“MRCS”),
and MSP Recovery, LLC, a Delaware limited liability company (the “Company”).

 

Recitals:

 

A.
         WHEREAS, MRCS is party to that certain Investment Agreement, dated as of October 23, 2020, by and among MRCS, Hazel Holdings I
LLC, a Delaware limited liability company, and MSP Recovery Holding Series 01, LLC, a Delaware limited liability company (the
“Investment Agreement”).

 

B.           WHEREAS,
MRCS owns all of the equity interests in each of the series set forth on Exhibit A hereto (such equity interests, collectively,
the “Equity Interests”).

 

C.
         WHEREAS, in anticipation of the transactions contemplated by that certain Membership Interest Purchase Agreement, dated July 11,
2021 (as it may be amended, supplemented or otherwise modified from time to time in accordance with its terms, the “MIPA”),
by and among Lionheart Acquisition Corporation II, a Delaware corporation (“LCAP”), Lionheart II Holdings,
LLC, a Delaware limited liability company and subsidiary of LCAP, each limited liability company set forth on Schedule 2.1(a)
thereto (the “MSP Purchased Companies”), the members of the MSP Purchased Companies listed on Schedule 2.1(b)
thereto (the “Members”), and John H. Ruiz, in his capacity as the representative of the Members, and the consideration
MRCS will receive as a designee of the Members of the MSP Purchased Companies, MRCS desires to assign and transfer to the Company,
and the Company desires to accept from MRCS, all right, title and interest of MRCS in, to and under the Investment Agreement and
the Equity Interests.

 

Agreements:

 

NOW,
THEREFORE, in consideration of the agreements set forth herein and in that certain MIPA, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, MRCS and the Company hereby agree as follows:

 

1.           
Assignment of Investment Agreement. MRCS hereby sells, conveys, assigns, transfers and delivers to the Company, free and
clear of all liens, encumbrances, rights of first refusal and liabilities of any kind or nature, and the Company hereby purchases,
acquires and accepts from MRCS, all of MRCS’s right, title and interest in, to and under the Investment Agreement.

 

2.
          Assignment of Equity Interests. MRCS hereby sells, conveys, assigns, transfers and delivers to the Company, free and clear
of all liens, encumbrances, rights of first refusal and liabilities of any kind or nature other than those that arise under applicable
securities laws or the organizational
documents of the LLC, and the Company hereby acquires and accepts from MRCS, all of such MRCS’s right, title and interest
in, to and under the Equity Interests.

 

 

 

3.            Representations
and Warranties of MRCS.

 

a)
          MRCS holds all right, title and interest (legal and beneficial) in and to the Equity Interests, and the Equity Interests and MRCS’s
right, title and interest in, to, and under the Investment Agreement are being transferred free and clear of all liens, encumbrances,
rights of first refusal and liabilities of any kind or nature (other than those described in Sections 1 and 2)

 

b)          
MRCS has full power and authority to enter into this Agreement and to perform its obligations hereunder. The execution, delivery
and performance by MRCS of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized
by MRCS. This Agreement, when executed and delivered by the Company, will constitute the valid and legally binding obligation
of MRCS, enforceable in accordance with its terms except as limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors’
rights generally and (ii) laws relating to the availability of specific performance, injunctive relief, or other equitable remedies
(the “Bankruptcy and Enforceability Exception”).

 

c)
         The execution, delivery and performance by MRCS of this Agreement and the consummation of the transactions contemplated hereby
will not, with or without the passage of time and giving of notice (i) violate any law applicable to MRCS, including any applicable
securities laws or (ii) conflict with or result in a breach or violation of, or constitute a default under, or result in a termination
of, or accelerate the performance required by, or require any action (including any authorization, consent or approval) or notice
to any person under (A) any governmental order applicable to or otherwise affecting either MRCS or its assets or properties, (B)
any contract of MRCS, or (C) the organizational documents of MRCS, except, in the case of clause (ii)(B), as would not be reasonably
expected to have a materially adverse effect on the ability of MRCS to perform its obligations under this Agreement.

 

d)        
 MRCS has not engaged any brokers, finders or agents, and has not and will not, incur, directly or indirectly, as a result of any
action taken by MRCS, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in
connection with this Agreement for which the Company will have any liability.

 

e)
         Other than the foregoing representations and warranties set forth in clauses (a) – (d) above, MRCS makes no other representation
or warranty in connection with this Agreement. The foregoing representations and warranties set forth in clauses (a) – (d)
above shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.

 

4.            Representations
and Warranties of the Company.

 

a)           The
Company has the legal capacity and full power and authority to enter into this Agreement and to perform its obligations
hereunder. The execution, delivery and performance by the
Company of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by the Company.
This Agreement, when executed and delivered by MRCS, will constitute valid and legally binding obligations of the Company, enforceable
in accordance with its terms except as limited by the Bankruptcy and Enforceability Exception.

 

2

 

b)          
The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions
contemplated hereby will not, with or without the passage of time and giving of notice (i) violate any law applicable to the
Company, including applicable securities laws, or (ii) conflict with or result in a breach or violation of, or constitute a
default under, or result in a termination of, or accelerate the performance required by, or require any action (including any
authorization, consent or approval) or notice to any person under (A) any governmental order applicable to or otherwise
affecting either the Company or its assets or properties, (B) any contract of the Company, or (C) any of the transfer
restrictions set forth in the Partnership Agreement, except in the case of clause (ii)(B), as would not be reasonably
expected to have a material adverse effect on the ability of the Company to perform its obligation under this
Agreement.

 

c)
         The Company has not engaged any brokers, finders or agents, and has not and will not, incur, directly or indirectly, as a result
of any action taken by the Company, any liability for brokerage or finders’ fees or agents’ commissions or any similar
charges in connection with this Agreement for which MRCS will have any liability.

 

d)          
Other than the foregoing representations and warranties set forth in clauses (a) – (c) above, the Company makes no other
representations or warranties in connection with this Agreement. The foregoing representations and warranties set forth in clauses
(a) – (c) above shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby.

 

5.          
Further Assurances. Each of the parties shall execute, acknowledge and deliver any such additional documents, instruments,
notices, assumptions, releases, conveyances and assurances and take such further actions as may be necessary or appropriate to
give effect to the transactions contemplated by this Agreement or may be reasonably requested by the other party hereto.

 

6.           
Binding Effect. This Agreement shall be binding upon, shall inure to the benefit of, and shall be enforceable only by the
parties hereto and their permitted successors and assigns, and shall survive execution and delivery hereof. Nothing in this Agreement,
express or implied, is intended to confer upon any person other than the parties hereto any rights or remedies of any nature whatsoever
under or by reason of this Agreement.

 

7.          
Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Delaware,
without giving effect to the conflict of laws principles thereof.

 

 

3

 

8.           
Waiver; Modification. No waiver, modification or change of any of the provisions of this Agreement shall be valid unless
in writing and signed by the party against whom such claimed waiver, modification or change is sought to be enforced.

 

9.
          Counterparts. This Agreement may be executed in counterparts, each of which when executed shall be deemed to be an original
but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature
page to Agreement by facsimile or .pdf shall be as effective as delivery of a manually executed counterpart of this Agreement.

 

10.
        Headings. The headings contained in this Agreement are for convenience purposes only and will not in any way affect the
meaning or interpretation hereof.

 

[Remainder
of page intentionally left blank; signature page follows.]

 

4

 

IN
WITNESS WHEREOF, each of the undersigned has caused this Agreement to be executed as of the date first above written.

 

	 	SERIES MRCS
	 	 	 
	 	By:	              
	 	Name:
	 	Title:

 

[Signature
Page to Asset and Interest Transfer Agreement]

 

 

 

	 	[MSP RECOVERY, LLC] 
	 	 	 
	 	By:	              
	 	Name:
	 	Title:

 

[Signature
Page to Asset and Interest Transfer Agreement]

 

 

 

Exhibit
A

 

	Series
    15-09-32
	Series
    18-01-812
	Series
    17-12-674
	Series
    19-05-1023
	Series
    15-11-392
	Series
    15-12-404
	Series
    15-08-14
	Series
    15-08-17
	Series
    19-05-1042
	Series
    15-12-406
	Series
    17-02-565
	Series
    16-03-441
	Series
    16-03-444
	Series
    15-11-386
	Series
    16-02-437
	Series
    16-02-427
	Series
    17-03-584
	Series
    16-05-455
	Series
    15-11-378
	Series
    15-10-358
	Series
    16-02-438
	Series
    15-11-376
	Series
    15-12-397
	Series
    15-08-24
	Series
    18-104-859
	Series
    19-02-982
	Series-18-11-949
	Series-18-03-848
	Series
    15-12-407
	Series
    16-04-448
	Series
    15-08-26
	Series
    15-10-357
	Series
    17-03-620
	Series
    15-09-281
	Series
    15-09-284
	Series
    16-03-442
	Series
    15-08-15
	Series
    15-08-16
	Series
    15-11-373
	Series
    15-12-403
	Series
    15-11-372

 

 

 

	Series
    15-11-375
	Series
    15-11-377
	Series
    16-02-429
	Series
    16-02-428
	Series
    15-11-374
	Series
    15-08-27
	Series
    15-09-273
	Series
    16-02-426
	Series
    15-08-19
	Series-18-05-872
	Series
    15-09-242
	Series
    15-09-288
	Series
    15-12-402
	Series
    15-12-400
	Series-15-08-12
	Series
    17-08-647
	Series
    16-02-436
	Series
    16-02-433
	Series
    15-12-399
	Series
    15-09-330
	Series
    15-12-398
	Series
    15-12-401
	Series
    15-08-18
	Series
    16-11-524
	Series
    16-01-409
	Series-15-09-326
	Series
    15-10-362
	Series
    15-12-396
	Series
    16-10-504
	Series
    16-02-425
	Series
    16-05-457
	Series
    16-04-454
	Series
    16-02-435
	Series
    17-07-642
	Series
    15-08-21
	Series
    16-01-413
	Series
    18-01-811
	Series
    15-11-383
	Series
    16-03-440
	Series
    16-01-410
	Series
    16-02-439
	Series
    15-08-23
	Series
    15-11-380

 

 

 

	Series
    17-02-564
	Series
    16-07-481
	Series
    15-10-361
	Series
    16-01-420
	Series
    19-06-1058
	Series
    15-08-10
	Series
    15-11-387
	Series
    15-09-250
	Series
    15-09-250
	Series
    15-11-371
	Series
    15-09-30
	Series
    19-06-1054
	Series
    15-08-25
	Series
    15-09-108

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00341-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00341-of-00352.parquet"}]]