Document:

Exhibit
4.1

 

DESCRIPTION
OF SQL TECHNOLOGIES CORP. COMMON STOCK

 

The
following summarizes the terms and provisions of the common stock of SQL Technologies Corp., a Florida corporation (the “Company”),
which common stock 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 Articles of
Incorporation, as amended (the “Articles of Incorporation”), and First Amended and Restated By-Laws (the “By-Laws”),
which the Company has previously filed with the Securities and Exchange Commission, and applicable Florida law. 

 

Authorized
Capital

 

The
Company’s authorized capital stock consists of 500,000,000 shares of common stock, no par value per share (the “Common Stock”),
and 20,000,000 shares of preferred stock, no par value per share (the “Preferred Stock”).

 

Common
Stock

 

Dividend
Rights

 

The
holders of Common Stock are entitled to any dividends that may be declared by the board of directors of the Company out of funds legally
available for payment of dividends, subject to the prior rights of holders of Preferred Stock (including the Series A Preferred Stock
(defined below)) and any contractual restrictions the Company has against the payment of dividends on Common Stock.

 

Voting
Rights 

 

Holders
of Common Stock are entitled to one vote for each share on all matters to be voted on by the stockholders, including the election of
directors. 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 or the Company’s Articles of Incorporation or By-Laws,
all other matters brought to a vote of the holders of Common Stock are approved if the votes cast in favor of the action exceed the votes
cast against the action.

 

Liquidation

 

In
the event of the Company’s liquidation or dissolution, holders of Common Stock are entitled to share ratably in all assets remaining
after payment of liabilities and the liquidation preferences of any outstanding shares of Preferred Stock.

 

Rights
and Preferences

 

All
outstanding shares of Common Stock are duly authorized, fully paid and non-assessable. The Common Stock has no preemptive rights, conversion
rights or other subscription rights or redemption or sinking fund provisions. 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 has designated, including the Series A Preferred Stock, or may designate in the future.

 

Stock
Exchange Listing

 

The
Common Stock is listed on The Nasdaq Stock Market LLC under the symbol “SKYX.”

 

Registration
Rights and Anti-Dilution Provisions

 

Certain
of the Company’s outstanding shares of Common Stock and securities convertible into Common Stock have registration rights or are
subject to a form of antidilution protection provisions.

 

    	 

     

    

 

Preferred
Stock

 

All
of the authorized shares of Preferred Stock under the Articles of Incorporation have been designated as Series A Convertible Preferred
Stock, no par value (“Series A Preferred Stock”). Holders of the Series A Preferred Stock receive interest payments quarterly,
at a rate of 6% per year, in cash. The Series A Preferred Stock ranks senior to the Common Stock with respect to dividends, redemption
rights and distributions (subject to certain exceptions) and payments upon the liquidation, dissolution and winding up of the Company.
Holders of the Series A Preferred Stock may elect to convert such shares into shares of Common Stock on a one-to-one basis at any time.
Shares of the Series A Preferred Stock may be repurchased by the Company upon 30 days’ prior written notice, in whole or in part,
for $3.50 per share, provided that, during such notice period, the holder will continue to have the option and right to convert its shares
of Series A Preferred Stock into shares of Common Stock. Holders of Series A Preferred Stock also have a put option, which allows them
to require the Company to purchase some or all of the holder’s Series A Preferred Shares a purchase price of $0.25 per share. The
Series A Preferred Stock has no voting rights. The number of shares of Series A Preferred Stock is subject to adjustment upon the declaration
of a dividend on the Common Stock payable in shares of Common Stock, any split of the Common Stock or any combination or recapitalization
of the outstanding Common Stock into a different number of shares.

 

Anti-Takeover
Provisions

 

Certain
provisions of Florida law, the Articles of Incorporation and the By-Laws, summarized below, may have the effect of delaying, deferring
or discouraging another person from acquiring control of the Company. It is possible that these provisions could make it more difficult
to accomplish or could deter transactions that stockholders may otherwise consider to be in their best interest or in the Company’s
best interests, including transactions that might result in a premium over the market price for our shares.

 

Florida
Law

 

As
a Florida corporation, the Company is subject to certain anti-takeover provisions that apply to public corporations under the Florida
Business Corporation Act (“FBCA”). Pursuant to Section 607.0901 of the FBCA, a publicly held Florida corporation may not
engage in a broad range of business combinations or other extraordinary corporate transactions with an interested stockholder for a period
of three years following the time that such stockholder became an interested stockholder, unless:

 

	 	●	prior
    to the time that such stockholder became an interested stockholder, the board of directors approved either the affiliated transaction
    or the transaction that resulted in the stockholder becoming an interested stockholder;
	 	 	 
	 	●	upon
    consummation of such a business combination or extraordinary corporate transaction that resulted in the subject stockholder becoming
    an interested stockholder, such stockholder owned at least 85% of the outstanding voting shares of the corporation at the time such
    transaction commenced, exclusive of shares owned by directors who are also officers and certain employee stock plans; or
	 	 	 
	 	●	at
    or subsequent to the time the subject stockholder became an interested stockholder, such business combination or other extraordinary
    corporate transaction is approved by the board of directors and authorized by an affirmative vote of the holders of at least two-thirds
    of the voting shares of the corporation (excluding shares held by the interested stockholder) at an annual or special meeting of
    stockholders, and not by written consent.

 

    	2

     

    

 

Notwithstanding
the above, the voting requirements set forth above do not apply to a particular affiliated transaction if one or more conditions are
met, including, but not limited to, the following: the affiliated transaction has been approved by a majority of the disinterested directors
of the corporation; the corporation has not had more than 300 stockholders of record at any time during the three years preceding the
announcement date; the interested stockholder has been the beneficial owner of at least 80% of the corporation’s outstanding voting
shares for at least three years preceding the announcement date; or the consideration to be paid to the holders of each class or series
of voting shares in the affiliated transaction meets certain minimum conditions.

 

An
interested stockholder is generally defined as a person who, together with affiliates and associates, beneficially owns more than 15%
of a corporation’s outstanding voting shares. The Company has not made an election in the Articles of Incorporation to opt out
of Section 607.0901.

 

In
addition, Section 607.0902 of the FBCA contains certain prohibitions relating to “control share acquisitions.” The Articles
of Incorporation include a provision that opts the Company out of the “control share acquisition” statute under the FBCA.

 

Articles
of Incorporation and By-Laws

 

The
board of directors has the power to issue any or all of the shares of the Company’s capital stock, including the authority to establish
one or more series of Preferred Stock and to fix the designations, powers, preferences, rights and limitations of such class or series,
without seeking stockholder approval, which could delay, defer or prevent any attempt to acquire or control the Company or could make
removal of management more difficult. A majority vote of the stockholders is required to remove directors from office, with or without
cause; a majority of the board of directors may remove a director for cause. The By-Laws provide that a special meeting of stockholders
may be called only by the order of the chairman of the board of directors or upon the written request of stockholders owning at least
a majority of the outstanding shares of the Company entitled to vote for directors as of the date of such request.

 

    	3Document

EXHIBIT 10.1

March 4, 2022

Peter Hawkes 
 

Dear Peter:

Oblong, Inc. (the “Company”) has decided to end your employment. Although the  Company has no obligation to provide you with any kind of separation pay, it is prepared to assist you with your transition to new employment. This letter sets forth the terms of the Separation Agreement (the “Agreement”) that the Company is offering to you to aid in your employment transition.

1.Separation. Your last day of work with the Company and your employment termination date will be March 4, 2022 (the “Separation Date”).

2.Accrued Salary. On the Separation Date, the Company will pay you all accrued wages earned through the Separation Date, subject to all required payroll deductions and withholdings. You are entitled to these payments regardless of whether or not you sign this Agreement.

3.Separation Pay. If you sign this Agreement, return it by the deadline specified below, and comply with its terms, the Company will pay you, as separation pay, $47,639, less standard payroll deductions and withholdings. Such amount will be paid in a lump sum within one week of the Effective Date (as defined below).

4.Health Insurance. Your group health insurance will cease on the last day of the month in which your employment ends. At that time, you will be eligible to continue your group health insurance benefits at your own expense, subject to the terms and conditions of the benefit plan, federal COBRA law, and, as applicable, state insurance laws. You will receive additional information regarding your right to elect continued coverage under COBRA in a separate communication.

5.Tax Matters. The Company will withhold required federal, state, and local taxes from any and all payments contemplated by this Agreement. Other than the Company’s obligation and right to withhold, you will be responsible for any and all taxes, interest, and penalties that may be imposed with respect to the payments contemplated by this Agreement (including, but not limited to, those imposed under Internal Revenue Code Section 409A).

6.Other Compensation or Benefits. You acknowledge that, except as expressly provided in this Agreement, you will not receive any additional compensation, benefits, or separation pay after the Separation Date. Thus, for any employee benefits sponsored by the Company not specifically referenced in this Agreement, you will be treated as a terminated employee effective on your Separation Date. This includes but is not limited

to a 401(k) plan, life insurance, accidental death and dismemberment insurance, and short and long-term disability insurance.

7.Expense Reimbursement. You agree that, within ten (10) days of the Separation Date, you will submit your final documented expense reimbursement statement reflecting all business expenses you incurred through the Separation Date, if any, for which you seek reimbursement. The Company will reimburse you for these expenses pursuant to its regular business practice.

8.Return of Company Property. By 3 days after the Separation Date, you agree to return to the Company all hard copy and electronic documents (and all copies thereof) and other Company property that you have had in your possession at any time, including, but not limited to, files, notes, drawings, records, business plans and forecasts, financial information, specifications, computer-recorded information (including email), tangible property (laptop computer, cell phone, PDA, etc.), credit cards, entry cards, identification badges and keys, and any materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof). If you discover after the Separation Date that you have retained any Company proprietary or confidential information, you agree immediately upon discovery to contact the Company and make arrangements for returning the information.

9.Post Employment Restrictions. You acknowledge your continuing obligations under your Proprietary Information and Inventions Agreement (the “Proprietary Agreement”) which prohibits disclosure of any confidential or proprietary information of the Company and solicitation of Company employees. A copy of your Proprietary Agreement is attached hereto as Exhibit A.

10.Confidentiality. The existence of this Agreement and its provisions will be held in strictest confidence by you and will not be publicized or disclosed in any manner whatsoever; provided, however, that you may disclose this Agreement in confidence: (a) to your spouse or partner; (b) to your attorney, accountant, auditor, tax preparer, and financial advisor, provided that such individuals first agree that they will treat such information as strictly confidential and that you agree to be responsible for any disclosure by any such individual as if you had made the disclosure; and (c) as necessary to enforce its terms or as otherwise required by law. You agree not to disclose the terms of this Agreement to any current or former Company employee.

11.Nondisparagement. You agree not to disparage the Company, and its officers, directors, employees, or agents, in any manner likely to be harmful to them or their business, business reputation or personal reputation; provided, however, that statements which are made in good faith in response to any question, inquiry, or request for information required by legal process shall not violate this paragraph. Nothing in this restriction is intended to limit you from giving honest statements before an administrative agency investigating an alleged violation of discrimination laws.

12.Release of All Claims. Except as otherwise set forth in this Agreement, you hereby release, acquit and forever discharge the Company, and it’s affiliates, officers, agents, administrators, servants, employees, attorneys, successors, parent, subsidiaries, assigns, and affiliates (the “Released Party” or “Released Parties”), of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys’ fees, damages, indemnities, and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way related to agreements, events, acts, omissions, or conduct at any time prior to and including the date you sign this Agreement.  This
general release includes, but is not limited to: (i) claims and demands arising out of or in any way connected with your employment with the Company, or the termination of that employment; (ii) claims or demands related to your compensation or benefits with the Company, including but not limited to, wages, salary, bonuses, commissions, vacation pay, fringe benefits, expense reimbursements, incentive pay, severance pay, or any other form of compensation; (iii) claims pursuant to any federal, state or local law, statute, or cause of action including, but not limited to, claims for discrimination, harassment,
retaliation, attorneys’ fees or other claim arising under the federal Civil Rights Act of 1964, as amended; the federal Americans with Disabilities Act of 1990, as amended; the federal Age Discrimination in Employment Act of 1967, as amended (the “ADEA”); the federal Family Medical Leave Act, as amended; the federal Worker Adjustment and Retraining Notification Act, as amended; the Employee Retirement Income Security Act of 1974, as amended; California Fair Employment and Housing Act (Cal. Gov’t Code
§12900 et seq.); California Family Rights Act (Cal. Gov. Code §12945.2); California Spousal Military Leave Law (Cal. Mil. & Vet. Code §395.10); California WARN Act (Cal. Lab. Code §1400 et seq.) as amended; (iv) all tort claims, including without limitation, claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (v) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing, including claims arising out of an Employment Agreement, sales commission plan or incentive compensation plan applicable to your employment with the Company. To the extent permitted by law, you also promise never directly or indirectly to bring or participate in an action against any Released Party under California Business & Professions Code Section 17200 or any unfair competition law of any jurisdiction.

Excluded from this Agreement are any claims which by law cannot be waived in a private agreement between an employer and employee. Moreover, this Release does not prohibit you from filing a charge with the Equal Employment Opportunity Commission (the “EEOC”) or equivalent state agency in your state or participating in an EEOC or state agency investigation. You do agree to waive your right to monetary or other recovery should any claim be pursued with the EEOC, state agency, or any other federal, state or local administrative agency your behalf arising out of or related to your employment with and/or separation from the Company.

13.ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under the ADEA, as amended. You also acknowledge that the consideration given for the waiver and release herein is in addition to anything of

value to which you were already entitled. You further acknowledge that you have been advised by this writing, as required by the ADEA, that: (a) your waiver and release do not apply to any rights or claims that may arise after the execution date of this Agreement;
(b) you have been advised hereby that you have the right to consult with an attorney prior to executing this Agreement; (c) you have up to forty-five (45) days from the date of this Agreement to execute this Agreement (although you may choose to voluntarily execute this Agreement earlier); (d) you have seven (7) days following the execution of this Agreement by the parties to revoke the Agreement; (e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth day after this Agreement is executed by you, provided that the Company has also executed this Agreement by that date (“Effective Date”); and (f) this Agreement does not affect your ability to test the knowing and voluntary nature of this Agreement. You further acknowledge that you have received a list of the job titles and ages of the employees in the decisional unit affected by this reduction in force. This list is attached as Exhibit B to this Agreement.

14.No Actions or Claims. You represent that you have not filed any charges, complaints, grievances, arbitrations, lawsuits, or claims against the Company, with any local, state or federal agency, union or court from the beginning of time to the date of execution of this Agreement and that you will not do so at any time hereafter, based upon events occurring prior to the date of execution of this Agreement. In the event any agency, union, or court ever assumes jurisdiction of any lawsuit, claim, charge, grievance, arbitration, or complaint, or purports to bring any legal proceeding on your behalf, you will ask any such agency, union, or court to withdraw from and/or dismiss any such action, grievance, or arbitration, with prejudice.

15.Waiver. In granting the release herein, you understand that this Agreement includes a release of all claims known or unknown. In giving this release, which includes claims which may be unknown to you at present, you acknowledge that you have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” You hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to the release of any unknown or unsuspected claims you may have against the Released Parties.

16.Employment Rights. You hereby waive any and all rights to employment or re- employment with the Company or any successor or affiliated organization (“Related Entity”). You agree that the Company and the Related Entities have no obligation,
contractual or otherwise, to employ or re-employ you, now or in the future, either directly or indirectly, on a full-time, part-time, or temporary basis, including, but not limited to, utilizing your services as a temporary employee, worker, or contractor through any temporary service providers, vendors, or agencies.

1.Acknowledgements and Representations. You acknowledge and represent that you have not suffered any discrimination or harassment by any of the Released Parties on account of your race, gender, national origin, religion, marital or registered domestic partner status, sexual orientation, age, disability, medical condition, or any other characteristic protected by law. You acknowledge and represent that you have not been denied any leave, benefits or rights to which you may have been entitled under the FMLA or any other federal or state law, and that you have not suffered any job-related wrongs or injuries for which you might still be entitled to compensation or relief. You further acknowledge and represent that, except as expressly provided in this Agreement, you have been paid all wages, bonuses, compensation, benefits and other amounts that any of the Released Parties have ever owed to you, and you understand that you will not receive any additional compensation, severance, or benefits after the Separation Date, with the exception of any vested right you may have under the terms of a written ERISA-qualified benefit plan.

2.Miscellaneous. This Agreement, including Exhibits A and B, constitutes the complete, final, and exclusive embodiment of the entire agreement between you and the Company with regard to this subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such promises, warranties, or representations. This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company. This Agreement will bind the heirs, personal representatives, successors, and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors, and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified by the court so as to be rendered enforceable. This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of California.

If this Agreement is acceptable to you, please sign below and return the original to me no sooner than the Separation Date and no later than April 19, 2022.

I wish you good luck in your future endeavors.

Sincerely,

/s/ Peter Holst                                         
Peter Holst
CEO

Agreed:

/s/ Peter Hawkes                                     
Peter Hawkes

Date:March 4, 2022                          

Exhibit A – Proprietary Information and Inventions Agreement Exhibit B - Disclosure Under Title 29 U.S. Code Section 626(f)(I)(H)

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