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Exhibit 4.3

 

DESCRIPTION OF CAPITAL STOCK

 

The
following is a description of the capital stock of Crexendo, Inc.
(the “Company”) and certain provisions of the
Company’s Articles of Incorporation, as amended
(“Articles”), Bylaws, as amended
(“Bylaws”), and certain provisions of applicable law.
The following is only a summary and is qualified by applicable law
and by the provisions of the Company’s Articles and Bylaws,
copies of which have been filed with the Securities and Exchange
Commission (“SEC”) and are also available upon request
from the Company.

 

General

 

Under
our Articles of Incorporation, as amended, we have authority to
issue up to 30,000,000, par value $0.001 per share, of which
25,000,000 shares shall be designated as Common Shares and
5,000,000 shall be designated as Preferred Stock. Each share of our
common stock has the same relative rights as, and is identical in
all respects to, each other share of our common stock.

 

Authority
to issue shares is expressly granted to the Board of Directors of
Crexendo, Inc. (or a committee thereof designated by the Board of
Directors pursuant to the Bylaws of Crexendo, Inc. as amended from
time to time) to issue the Preferred Shares from time to time as
Preferred Shares of any series and declare and pay dividends
thereon in accordance with the terms thereof in connection with the
creation of each such series, to fix by resolution or resolutions
providing for the issuance of shares thereof, the number of such
shares, the designations, powers, preferences, and rights
(including voting rights) and the qualifications, limitations, and
restrictions of such series, subject to the full extent and not or
hereafter permitted by the laws of the state of
Nevada.

 

As of December 31, 2019, 14,884,755 shares of our
common stock were issued and outstanding, and 5,001,214 shares of
common stock were reserved for issuance pursuant to the
Company’s incentive stock-based compensation
plan. Our common stock is listed on
the OTCQX Marketplace. The outstanding shares of our common stock
are validly issued, fully paid and
non-assessable.

 

As
of December 31, 2019, no shares of our preferred stock were issued
and outstanding. The Company has no present plans to issue any
shares of its preferred stock.

 

Certain Provisions of the Articles and Bylaws

 

Annual
Meeting. A meeting of the
shareholders for the election of directors and for the transaction
of such other business as may properly come before the meeting
shall be held at such date, time and place, if any, as shall be
determined by the Board of Directors and stated in the notice of
the meeting.

 

Notice
of Meetings. Notice of the place, if any, date, hour, the
record date for determining the shareholders entitled to vote at
the meeting (if such date is different from the record date for
shareholders entitled to notice of the meeting) and means of remote
communication, if any, of every meeting of shareholders shall be
given by the Corporation not less than ten days nor more than 60
days before the meeting (unless a different time is specified by
law) to every stockholder entitled to vote at the meeting as of the
record date for determining the shareholders entitled to notice of
the meeting. Notices of special meetings shall also specify the
purpose or purposes for which the meeting has been called. Except
as otherwise provided herein or permitted by applicable law, notice
to shareholders shall be in writing and delivered personally or
mailed to the shareholders at their address appearing on the books
of the Corporation. Without limiting the manner by which notice
otherwise may be given effectively to shareholders, notice of
meetings may be given to shareholders by means of electronic
transmission in accordance with applicable law. Notice of any
meeting need not be given to any stockholder who shall, either
before or after the meeting, submit a waiver of notice or who shall
attend such meeting, except when the stockholder attends for the
express purpose of objecting, at the beginning of the meeting, to
the transaction of any business because the meeting is not lawfully
called or convened. Any stockholder so waiving notice of the
meeting shall be bound by the proceedings of the meeting in all
respects as if due notice thereof had been given.

 

Voting;
Proxies. Unless otherwise
required by law or the Certificate of Incorporation the election of
directors shall be by decided by a plurality of the votes cast at a
meeting of the shareholders by the holders of stock entitled to
vote in the election. Unless otherwise required by law, the
Certificate of Incorporation or these by-laws, any matter, other
than the election of directors, brought before any meeting of
shareholders shall be decided by the affirmative vote of the
majority of shares present in person or represented by proxy at the
meeting and entitled to vote on the matter. Each stockholder
entitled to vote at a meeting of shareholders or to express consent
to corporate action in writing without a meeting may authorize
another person or persons to act for such stockholder by proxy, but
no such proxy shall be voted or acted upon after three years from
its date, unless the proxy provides for a longer period. A proxy
shall be irrevocable if it states that it is irrevocable and if,
and only as long as, it is coupled with an interest sufficient in
law to support an irrevocable power. A stockholder may revoke any
proxy which is not irrevocable by attending the meeting and voting
in person or by delivering to the secretary of the Corporation a
revocation of the proxy or a new proxy bearing a later date. Voting
at meetings of shareholders need not be by written
ballot.

  

 

 

  

Written Consent of Shareholders Without a Meeting.
The Bylaws provide
that any action to be taken at any annual or special meeting of
shareholders may be taken without a meeting, without prior notice
and without a vote, if a consent or consents in writing, setting
forth the action to be so taken, shall be signed by the holders of
outstanding stock having not less than the minimum number of votes
that would be necessary to authorize or take such action at a
meeting at which all shares entitled to vote thereon were present
and voted and shall be delivered (by hand or by certified or
registered mail, return receipt requested) to the Corporation by
delivery to its registered office in the State of Nevada, its
principal place of business or an officer or agent of the
Corporation having custody of the book in which proceedings of
meetings of shareholders are recorded. Every written consent shall
bear the date of signature of each stockholder who signs the
consent, and no written consent shall be effective to take the
corporate action referred to therein unless, within 60 days of the
earliest dated consent delivered in the manner required by the
By-laws, written consents signed by a sufficient number of holders
to take action are delivered to the Corporation as aforesaid.
Prompt notice of the taking of the corporate action without a
meeting by less than unanimous written consent shall, to the extent
required by applicable law, be given to those shareholders who have
not consented in writing, and who, if the action had been taken at
a meeting, would have been entitled to notice of the meeting if the
record date for notice of such meeting had been the date that
written consents signed by a sufficient number of holders to take
the action were delivered to the Corporation. 

 

Right of
Indemnification. The Bylaws
provide that Each director or officer of the corporation, whether
or not then in office, and any person whose testator or intestate
was such a director or officer, shall be indemnified by the
corporation for the defense of, or in connection with, any
threatened, pending or completed actions or proceedings and appeals
therein, whether civil, criminal, administrative or investigative,
in accordance with and to the fullest extent permitted by the
Business Corporation Law of the State of Nevada or other applicable
law, as such law now exists or may hereafter be adopted or amended,
against, without limitation, all judgments, fines, amounts paid in
settlements, and all expenses, including attorneys' and other
experts' fees, costs and disbursements, actually and reasonably
incurred by such person as a result of such action or proceeding,
or actually and reasonably incurred by such
person.

 

Dividends.
Subject to applicable law and the
Certificate of Incorporation, dividends upon the shares of capital
stock of the Corporation may be declared by the Board of Directors
at any regular or special meeting of the Board of Directors.
Dividends may be paid in cash, in property or in shares of the
Corporation's capital stock, unless otherwise provided by
applicable law or the Certificate of
Incorporation.

 

Transfer Agent.
The transfer agent and registrar for
our common stock is Direct Transfer,
LLC, One Glenwood Ave, Suite
1001, Raleigh, NC 27603.Exhibit

Exhibit 4.4

DESCRIPTION OF SECURITIES REGISTERED 
UNDER SECTION 12 OF THE EXCHANGE ACT OF 1934

The following summary of Sterling Construction Company, Inc.’s common stock is based on and qualified by our certificate of incorporation and amended and restated bylaws. For a complete description of the terms and provisions of the our equity securities, including our common stock, refer to our certificate of incorporation and amended and restated bylaws, both of which are incorporated by reference as exhibits to this Annual Report on Form 10-K.
Our authorized capital stock consists of 38,000,000 shares of common stock, par value $0.01 per share, and 1,000,000 shares of preferred stock, par value $0.01 per share, the rights and preferences of which may be established from time to time by our board of directors.
Common Stock
Holders of shares of our common stock are entitled to one vote for each share on all matters voted upon by our stockholders, including the election of directors, and do not have cumulative voting rights. Unless otherwise required by law, our certificate of incorporation or amended and restated bylaws, any matter brought before any meeting of stockholders, other than the election of directors, is decided by the affirmative vote of a majority of the total voting power of common stock present in person or represented by proxy and entitled to vote thereon, a quorum being present. Except as otherwise provided by our amended and restated bylaws, each of our directors is elected by the vote of a majority of the votes cast with respect to such director at any meeting of stockholders held for the election of directors at which a quorum is present; provided, however, that if the number of nominees exceeds the number of directors to be elected, the directors shall be elected by the vote of a plurality of the votes cast at any such meeting. Subject to the rights, preferences and privileges of holders of any shares of preferred stock we may issue, holders of shares of our common stock are entitled to participate equally and ratably in (i) any dividends that may be declared by our board of directors and (ii) our net assets upon our dissolution or liquidation. Holders of shares of our common stock do not have preemptive rights to purchase shares of our common stock. The shares of our common stock are not subject to any redemption provisions and are not convertible into any other shares of our capital stock. The rights, preferences and privileges of holders of our common stock will be subject to those of the holders of any shares of our preferred stock that we may issue in the future.
Provisions of Our Certificate of Incorporation, Bylaws and Delaware Law
Under the Delaware General Corporation Law, or DGCL, the power to adopt, amend or repeal any provision of our bylaws is conferred upon the stockholders. A corporation may, however, in its certificate of incorporation also confer upon the board of directors the power to adopt, amend or repeal its bylaws. Our certificate of incorporation and amended and restated bylaws grant our board the power to adopt, amend and repeal our bylaws by the affirmative vote of a majority of the directors constituting the entire board. Our stockholders may adopt, amend or repeal our bylaws, with the affirmative vote of a majority of total voting power of common stock present in person or represented by proxy and entitled to vote thereon.
Our certificate of incorporation and amended and restated bylaws provide that special meetings of our stockholders may be called only by our board of directors. Stockholders are not able to call special meetings. The inability of our stockholders to call special meetings may delay proxy contests until our annual stockholders meeting, which might impact a person's decision to purchase our voting securities in an attempt to cause a change in control of us.
Our certificate of incorporation and amended and restated bylaws provide that stockholders may take action only at an annual or special meeting of the stockholders. Stockholders may not act by written consent. The inability of our stockholders to act by written consent could lengthen the amount of time required for our stock holders to take actions, which could discourage, delay or prevent a potential effort to cause a change in control of us.

Our amended and restated bylaws provide advance notice procedures for stockholders seeking to bring business before the annual meeting of stockholders or to nominate candidates for election as directors at the annual meeting of stockholders. Our amended and restated bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions may preclude stockholders from bringing matters before the annual meeting of stockholders or from making nominations for directors at the annual meeting of stockholders if the proper procedures are not followed. 
We are subject to Section 203 of the DGCL, an anti-takeover law. In general, this section  prohibits a publicly held Delaware corporation from engaging in a business combination with an interested stockholder for a period of three years following the date such person became an interested stockholder, unless the business combination or the transaction in which such person became an interested stockholder is approved in a prescribed manner. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. Generally, an “interested stockholder” is a person that, 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 voting stock. The existence of this provision may have an anti-takeover effect with respect to transactions not approved in advance by our board, including discouraging attempts that might result in a premium over the market price for the shares of our common stock.
Preferred Stock
Our board of directors may, from time to time, authorize the issuance of one or more classes or series of preferred stock by adopting resolutions that establish the number of shares being authorized and describing the designations, powers, preferences and rights, qualifications, limitations or restrictions on shares of that preferred stock, including dividend rights, terms of redemption, conversion rights and liquidation preferences.
The issuance of preferred stock may adversely affect the rights of our common stockholders by, among other things:
		
	•
	restricting dividends on the common stock;

		
	•
	diluting the voting power of the common stock;

		
	•
	impairing the liquidation rights of the common stock; or

		
	•
	delaying or preventing a change in control without further action by holders of the preferred stock.

As a result of these or other factors, the issuance of preferred stock could have an adverse impact on the market price of our common stock. 
Warrants
Each warrant currently entitles the registered holder to purchase one share of our common stock at a price of $10.25 per share, subject to adjustment as discussed below. The warrants will expire on April 3, 2022, unless early exercised. The warrants are not redeemable by us.
The exercise price and number of shares of common stock issuable on exercise of the warrants may be adjusted in certain circumstances, including in the event of a share dividend or our recapitalization, reorganization, merger or consolidation. In addition, the warrants will be adjusted for issuances of shares of common stock at a price below the exercise price, other than certain shares issued under our stock incentive plan.
The warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at our offices, along with a duly completed and executed exercise agreement, accompanied by full payment of the exercise price, by wire transfer or check payable to us, for the number of warrants being exercised, unless being exercised on a net basis, in which case we will issue a lesser number of shares of common stock. The warrant holders do not have the rights or privileges of holders of shares of common stock, including voting rights, until 

they exercise their warrants and receive shares of common stock. After the issuance of shares of common stock upon exercise of the warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by stockholders.
Unless a warrant holder shall have received the prior approval of our stockholders, such warrant holder shall only be permitted to purchase up to a number of shares of our common stock pursuant to the warrants such that the beneficial ownership of our common stock by the warrant holder and its affiliates, on a pro forma basis, would represent no greater than 19.99% of the shares of our common stock outstanding after giving effect to the exercise of the warrant and any other transactions that would occur concurrently therewith, after giving effect to all applicable adjustments under the warrants. If the number of shares of common stock that may be purchased pursuant to a warrant is limited as described in the immediately preceding sentence, then we are required to make an additional cash payment to the warrant holder, within three business days of such exercise, in an amount equal to the product of the number of shares that were not able to be issued upon such exercise as a result thereof, multiplied by the absolute value of the difference between the closing price per share of our common stock on the domestic securities exchange on which our common stock is listed on the date of such exercise request and the exercise price.
In connection with the issuance of the warrants, on April 3, 2017, we entered into a registration rights agreement with the holders of the warrants pursuant to which we granted to the holders certain registration rights related to the warrants and warrant shares. Pursuant to the registration rights agreement, we filed a registration statement on Form S-3 with respect to the resale of the warrants and the warrant shares on May 26, 2017.
Transfer Agent and Registrar
The transfer agent and registrar for our common stock is American Stock Transfer & Trust Company.

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