Document:

ex_234371.htm

 

Exhibit 4.3

 

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

 

LiqTech International, Inc. (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: the Company’s common stock, par value $0.001 per share (the “Common Stock”)

 

Description of Common Stock

 

The following description of our common stock is based upon our amended and restated articles of incorporation, as amended, our bylaws and applicable provisions of law, in each case as currently in effect. This discussion does not purport to be complete and is qualified in its entirety by reference to our amended and restated articles of incorporation, as amended, and our bylaws, copies of which are filed as exhibits to the Annual Report on Form 10-K to which this description is an exhibit.

 

Authorized Shares

 

We are authorized to issue 25,000,000 shares of common stock, par value $0.001 per share.

 

Common Stock

 

Voting -- Holders of our common stock are entitled to one vote for each share held of record on each matter submitted to a vote of stockholders, including the election of directors, and do not have any right to cumulate votes in the election of directors.

 

Dividends -- Subject to the rights and preferences of the holders of any series of preferred stock which may at the time be outstanding, holders of our common stock are entitled to receive ratably such dividends as our Board of Directors from time to time may declare out of funds legally available.

 

Liquidation Rights -- In the event of any liquidation, dissolution or winding-up of affairs of the Company, after payment of all of our debts and liabilities and subject to the rights and preferences of the holders of any outstanding shares of any series of our preferred stock, the holders of our common stock will be entitled to share ratably in the distribution of any of our remaining assets.

 

Other Matters -- Holders of our common stock have no conversion, preemptive or other subscription rights, and there are no redemption rights or sinking fund provisions with respect to the common stock. All of the issued and outstanding shares of common stock on the date of this report are validly issued, fully paid and non-assessable.

 

 

Transfer Agent

 

The transfer agent and registrar for our common stock is Action Stock Transfer, Inc. The transfer agent’s telephone number is (801) 274-1088.

 

Indemnification of Directors and Executive Officers and Limitation on Liability

 

The Company’s Articles of Incorporation provide that no director or officer of the Corporation shall be personally liable to the Corporation or any of its stockholders for damages for breach of fiduciary duty as a director or officer; provided, however, that the foregoing provision shall not eliminate or limit the liability of a director or officer (i) for acts or omissions which involve intentional misconduct, fraud or knowing violation of law, or (ii) the payment of dividends in violation of Section 78.300 of the Nevada Revised Statutes. 

 

The Bylaws provide that any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such person is or was a director, officer, employee or agent of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) shall be indemnified and held harmless by the Company to the fullest extent permitted by Nevada law against expenses including attorneys’ fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such proceeding.

 

The Bylaws provide that the Company must pay the costs incurred by any person entitled to indemnification in defending a proceeding as such costs are incurred and in advance of the final disposition of a proceeding; provided however, that the Company must pay such costs only upon receipt of an undertaking by or on behalf of such person to repay the amount if it is ultimately determined by a court of competent jurisdiction that such person is not entitled to be indemnified by the Company.

 

 

 

 

The Bylaws provide that the Company may purchase and maintain insurance or make other financial arrangements on behalf of any person who is or was a director or officer of the Company, or is or was serving at the request of the Company as a director or officer.

 

Nevada Revised Statutes 78.751 and 78.7502 have provisions that provide for discretionary and mandatory indemnification of officers, directors, employees, and agents of a corporation. Under these provisions, such persons may be indemnified by a corporation against expenses, including attorney’s fees, judgment, fines and amounts paid in settlement, actually and reasonably incurred by him in connection with the action, suit or proceeding, if he acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation and with respect to any criminal action or proceeding had no reasonable cause to believe his conduct was unlawful.

 

To the extent that a director, officer, employee or agent has been successful on the merits or otherwise in defense of any action, suit or proceeding, or in defense of any claim, issue or matter, the Nevada Revised Statues provide that he must be indemnified by the Company against expenses, including attorney’s fees, actually and reasonably incurred by him in connection with the defense.

 

Section 78.751 of the Nevada Revised Statues also provides that any discretionary indemnification, unless ordered by a court or advanced by the Company, may be made only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances. The determination must be made:

 

	 	
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			By the stockholders;

			
	 	
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			By the Company’s Board of Directors by majority vote of a quorum consisting of directors who were not parties to that act, suit or proceeding;

			
	 	
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			If a majority vote of a quorum consisting of directors who were not parties to the act, suit or proceeding cannot be obtained, by independent legal counsel in a written opinion; or

			
	 	
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			If a quorum consisting of directors who were not parties to the act, suit or proceeding cannot be obtained, by independent legal counsel in a written opinion.Exhibit
4.1

 

Description
of Securities Registered Pursuant to

Section
12 of the Securities Exchange Act of 1934, as amended

 

General

 

Our
authorized capital stock consists of 200,000,000 shares of common stock, $0.02 par value per share, 62,086,099 of which were issued
and outstanding as of March 20, 2020.

 

The
following description of our common stock summarizes the material terms and provisions of the common stock that we may offer under
this prospectus but is not complete. For the complete terms of our common stock, please refer to our certificate of incorporation,
as amended, (the “Certificate of Incorporation”) which may be further amended from time to time, and our fifth amended
and restated by-laws, as further amended from time to time (the “By-laws”). The New York Business Corporation Law
(“NYBCL”) may also affect the terms of these securities.

 

Holders
of our common stock: (i) have equal rights to dividends from funds legally available therefore, ratably when as and if declared
by the Company’s board of directors; (ii) are entitled to share ratably in all assets of the Company available for distribution
to holders of common stock upon liquidation, dissolution, or winding up of the affairs of the Company; (iii) do not have preemptive,
subscription or conversion rights and there are no redemption or sinking fund provisions applicable thereto; (iv) are entitled
to one non-cumulative vote per share of common stock, on all matters which stockholders may vote on at all meetings of stockholders;
and (v) the holders of common stock have no conversion, preemptive or other subscription rights. There is no cumulative voting
for the election of directors. Each holder of our common stock is entitled to one vote for each share of our common stock held
on all matters submitted to a vote of stockholders.

 

Anti-Takeover
Effects of Certain Provisions of our Certificate of Incorporation, By-laws and the NYBCL

 

Section
912 of the NYBCL generally provides that a New York corporation may not engage in a business combination with an interested stockholder
for a period of five years following the interested stockholder’s becoming such. Such a business combination would be permitted
where it is approved by the board of directors before the interested stockholder’s becoming such. Covered business combinations
include certain mergers and consolidations, dispositions of assets or stock, plans for liquidation or dissolution, reclassifications
of securities, recapitalizations and similar transactions. An interested stockholder is generally a stockholder owning at least
20% of a corporation’s outstanding voting stock. In addition, New York corporations may not engage at any time with any
interested stockholder in a business combination other than: (i) a business combination approved by the board of directors before
the stock acquisition, or where the acquisition of the stock had been approved by the board of directors before the stock acquisition;
(ii) a business combination approved by the affirmative vote of the holders of a majority of the outstanding voting stock not
beneficially owned by the interested stockholder at a meeting called for that purpose no earlier than five years after the stock
acquisition; or (iii) a business combination in which the interested stockholder pays a formula price designed to ensure that
all other stockholders receive at least the highest price per share that is paid by the interested stockholder and that meets
certain other requirements.

 

A
corporation may opt out of the interested stockholder provisions described in the preceding paragraph by expressly electing not
to be governed by such provisions in its by-laws, which must be approved by the affirmative vote of a majority of votes of the
outstanding voting stock of such corporation and is subject to further conditions. However, our By-laws do not contain any provisions
electing not to be governed by Section 912 NYBCL. Under our By-laws, any corporate action to be taken by vote of the shareholders,
shall be authorized by a majority of votes cast at a meeting of shareholders by the holders of shares entitled to vote thereon.

 

Transfer
Agent and Registrar

 

The
Transfer Agent and Registrar for our common stock is American Stock Transfer and Trust Company, LLC, 6201 15th Ave., Brooklyn,
NY 11219, USA, +1-800-937-5449 or +1-718-921-8124.

 

Listing

 

Our
Common Stock is listed on the New York Stock Exchange under the ticker symbols “DSS.”

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