Document:

bkti_ex4-1

 

Exhibit 4.1

 

DESCRIPTION OF THE COMMON STOCK OF

BK TECHNOLOGIES CORPORATION

REGISTERED PURSUANT TO SECTION 12 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

The following summarizes the terms and provisions of the common
stock of BK Technologies Corporation, a Nevada 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 and
Bylaws, each as amended, which the Company has previously filed
with the Securities and Exchange Commission, and applicable Nevada
law.

 

Authorized Capital Stock

 

The
Company’s authorized capital stock consists of 20,000,000
common shares, par value $0.60 per share (the “Common
Stock”), and 1,000,000 shares of preferred stock, par value
$1.00 per share.

 

Under
Nevada law, stockholders generally are not personally liable for a
corporation’s debts or liabilities.

 

Common Stock

 

Exchange and Trading Symbol

 

The
Common Stock is listed for trading on the NYSE American under the
trading symbol “BKTI.”

 

Rights, Preferences and Privileges

 

All outstanding shares of Common Stock are duly
authorized, fully paid and nonassessable. Holders of Common
Stock have no preemptive, conversion, redemption, subscription or
similar rights, and there are no sinking fund provisions applicable
to the Common Stock. 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 may designate and issue in the
future.

 

Voting Rights

 

Holders
of Common Stock are entitled to one vote for each share held of
record on all matters properly submitted to a vote of the
Company’s stockholders, including the election of directors,
and do not have any cumulative voting rights. Directors are elected by a plurality of the votes
cast by the holders of Common Stock. Except as otherwise required
by law, all other matters brought to a vote of the holders of
Common Stock are determined by a majority of the votes cast and,
except as may be provided with respect to any other outstanding
class or series of the Company’s stock, the holders of shares
of Common Stock possess the exclusive voting
power.

 

Dividends

 

Subject
to preferences that may be applicable to any then outstanding
preferred stock, holders of Common Stock are entitled to receive
dividends, if any, as may be declared from time to time by the
Company’s Board of Directors out of legally available
funds.

 

Liquidation

 

In the
event of the Company’s liquidation, dissolution or winding
up, holders of Common Stock are entitled to share ratably in the
net assets legally available for distribution to the
Company’s stockholders, if any, remaining after the payment
or provision for the payment of all debts and other liabilities of
the Company, subject to the satisfaction of any liquidation
preference granted to the holders of any then outstanding shares of
preferred stock.

 

 

1

 

 

Preferred Stock

 

The
Company’s Articles of Incorporation authorize the
Company’s Board of Directors, subject to certain limitations
prescribed by law and without further stockholder approval, to
issue from time to time up to an aggregate of 1,000,000 shares of
preferred stock, par value $1.00 per share. The preferred stock may
be issued in one or more series. Each series of preferred stock may
have different designations, rights and preferences and
qualifications, limitations and restrictions that may be
established by the Board of Directors without approval from the
Company’s stockholders, including, without limitation, the
number of shares to be issued in a series, dividend rights and
rates, conversion rights, voting rights, liquidation preferences
and redemption terms.

 

Anti-Takeover Provisions

 

Nevada Law

 

Nevada Business Combination Statute.
The “business combination” provisions of Sections
78.411 to 78.444, inclusive, of the Nevada Revised Statutes
generally prohibit a Nevada corporation with at least 200
stockholders of record from engaging in various “business
combination” transactions with any interested stockholder for
a period of two years after the date that the person first become
an interested stockholder, unless the business combination or the
transaction by which the person first became an interested
stockholder is approved by the corporation’s board of
directors before the person first became an interested stockholder,
or the business combination is approved by the board of directors
and thereafter is approved at a meeting of the corporation’s
stockholders by the affirmative vote of at least 60% of the
outstanding voting power of the corporation held by disinterested
stockholders.

 

Following the
expiration of the two-year period, the corporation is prohibited
from engaging in a “business combination” transaction
with the interested stockholder, unless:

 

●

the business
combination or the transaction by which the person first became an
interested stockholder is approved by the corporation’s board
of directors before the person first became an interested
stockholder;

 

●

the business
combination is approved by a majority of the outstanding voting
power of the corporation held by disinterested stockholders;
or

 

●

the aggregate
amount of the consideration to be received in the business
combination by all of the holders of outstanding common shares of
the corporation not beneficially owned by the interested
stockholder is at least equal to the higher of: (a) the highest
price per share paid by the interested stockholder for any common
shares acquired by the interested stockholder within two years
immediately before the date of the announcement of the business
combination or within two years immediately before, or in the
transaction in which the person became an interested stockholder,
whichever is higher, and (b) the market value per common share on
the date of the announcement of the business combination or on the
date that the person first became an interested stockholder,
whichever is higher.

 

In
general, an “interested stockholder” is any person who
is (i) the direct or indirect beneficial owner of 10% or more of
the voting power of the outstanding voting shares of the
corporation, or (ii) an affiliate or associate of the corporation
and at any time within two years immediately before the date in
question was the direct or indirect beneficial owner of 10% or more
of the voting power of the then outstanding shares of the
corporation.

 

A
“combination” is generally defined to include mergers
or consolidations or any sale, lease exchange, mortgage, pledge,
transfer, or other disposition, in one transaction or a series of
transactions, with an interested stockholder: (a) having an
aggregate market value equal to more than five percent of the
aggregate market value of the consolidated assets of the
corporation, (b) having an aggregate market value equal to more
than five percent of the aggregate market value of all outstanding
shares of the corporation, (c) representing more than ten percent
of the consolidated earning power or net income of the corporation,
and (d) certain other transactions with an interested stockholder
or an affiliate or associate of an interested
stockholder.

 

 

2

 

 

The
business combination statute could prohibit or delay mergers or
other takeover or change in control attempts and, accordingly, may
discourage attempts to acquire the Company even though such a
transaction may offer the Company’s stockholders the
opportunity to sell their stock at a price above the prevailing
market price.

 

Nevada Control Share Acquisition
Statute. Sections 78.378 to 78.3793, inclusive, of the
Nevada Revised Statutes limit the voting rights of certain acquired
shares in a corporation. This “control share” statute
applies to any acquisition of outstanding voting securities of a
Nevada corporation that has 200 or more stockholders of record (at
least 100 of which are Nevada residents) and conducts business in
Nevada resulting in ownership of the corporation’s then
outstanding voting securities in excess of one of the following
thresholds: (i) one-fifth or more but less than one-third, (ii)
one-third or more but less than a majority, (iii) and a majority or
more. Once an acquirer crosses one of these thresholds by acquiring
a controlling interest in the corporation, the shares which the
acquirer acquired in the transaction taking it over the threshold
and within the 90 days immediately preceding the date when the
acquiring person acquired or offered to acquire a controlling
interest in the corporation become “control shares.”
The acquirer is denied voting rights with respect to the control
shares, unless stockholders representing a majority of the voting
power of the corporation approve the granting of full voting rights
to the control shares.

 

As
permitted under Nevada law, the Company has elected to “opt
out” of the control share statute pursuant to a provision in
its Bylaws.

 

Articles of Incorporation and Bylaws

 

The
Company’s Articles of Incorporation and Bylaws include
anti-takeover provisions that:

 

●

authorize the Board
of Directors, without further action by stockholders, to issue
shares of preferred stock in one or more series, and with respect
to each series, to fix the number of shares constituting that
series and establish the rights and terms of that
series;

 

●

require at least
one-fifth of the outstanding shares of the Company’s stock to
call special meetings;

 

●

establish advance
notice procedures for stockholders to submit nominations of
candidates for election to the board of directors to be brought
before a stockholder meeting;

 

●

allow the
Company’s directors to establish the size of the Board of
Directors and fill vacancies on the Board created by an increase in
the number of directors; and

 

●

provide that the
Bylaws may be amended by the Board of Directors without stockholder
approval.

 

Provisions of the
Articles of Incorporation and Bylaws may delay or discourage
transactions involving an actual or potential change in control of
the Company or change in the Company’s Board of Directors or
management, including transactions in which stockholders might
otherwise receive a premium for their shares or transactions that
stockholders might otherwise deem to be in their best
interests.

 

Authorized and Unissued Shares

 

The
Company’s authorized and unissued shares of Common Stock will
be available for future issuance without stockholder approval. The
Company may use additional shares for a variety of purposes,
including future offerings to raise capital, to fund acquisitions
and as employee and consultant compensation. The existence of
authorized but unissued Common Stock could render more difficult,
or discourage, an attempt to obtain control of the Company by means
of a proxy contest, tender offer, merger or otherwise.

 

The
Company’s Articles of Incorporation authorize the issuance of
1,000,000 shares of “blank check” preferred stock with
such designations, rights and preferences as may be determined from
time to time by the Company’s Board of Directors.
Accordingly, the Board of Directors is empowered, without
stockholder approval, to issue shares of preferred stock with
dividend, liquidation, conversion, voting or other rights that
could adversely affect the value, voting power or other rights of
holders of Common Stock. In addition, the Board of Directors may,
under certain circumstances, issue preferred stock in order to
delay, defer, prevent or make more difficult a change of control
transaction such as a merger, tender offer, business combination or
proxy contest, assumption of control by a holder of a large block
of the Company’s securities or the removal of incumbent
management of the Company, even if those events were favorable to
the interests of the Company’s stockholders. Although the
Company’s Board of Directors has no present intention to
issue any shares of preferred stock, there can be no assurance that
it will not do so in the future.

 

 

 

3vrm-ex43_991.htm

 

Exhibit 4.3

 

DESCRIPTION OF REGISTRANT’S SECURITIES

The following summary describes the material provisions of the common stock of Vroom, Inc. (“we”, “our”, the “Company”) that is registered under Section 12 of the Securities and Exchange Act of 1934, as amended, and does not purport to be complete. For a complete description of the terms and provisions of our common stock, we urge you to read our amended and restated certificate of incorporation and amended and restated bylaws.

General 

Our amended and restated certificate of incorporation authorizes capital stock consisting of: 

	
 
	
•
	
500,000,000 shares of common stock, par value $0.001 per share; and 

	
 
	
•
	
10,000,000 shares of preferred stock, par value $0.001 per share. 

Certain provisions of our amended and restated certificate of incorporation and our amended and restated bylaws summarized below may be deemed to have an anti-takeover effect and may delay or prevent a tender offer or takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the market price for the shares of common stock. 

Common Stock 

Voting Rights 

Holders of shares of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. The holders of our common stock do not have cumulative voting rights in the election of directors. 

Dividends 

Holders of shares of our common stock are entitled to receive ratably those dividends, if any, as may be declared by our board of directors out of funds legally available therefor, subject to any statutory or contractual restrictions on the payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding preferred stock. 

Liquidation 

In the event of our dissolution or liquidation, after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of shares of our common stock are entitled to share ratably in the remaining assets legally available for distribution. 

Rights and Preferences 

Holders of our common stock do not have preemptive, subscription, redemption or conversion rights. There are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to and may be adversely affected by the rights of the holders of shares of any series of our preferred stock that we may designate in the future. 

 

 

Fully Paid and Nonassessable 

All shares of our common stock outstanding upon consummation of this offering will be fully paid and non-assessable. 

Preferred Stock 

Pursuant to our amended and restated certificate of incorporation, the total number of authorized shares of preferred stock is 10,000,000 shares. We have no shares of preferred stock outstanding. 

Under the terms of our amended and restated certificate of incorporation, our board of directors is authorized to direct us to issue shares of preferred stock in one or more series without stockholder approval. Our board of directors has the discretion to determine the rights, powers, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, of each series of preferred stock. 

The purpose of authorizing our board of directors to issue preferred stock and determine its rights and preferences is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions, future financings and other corporate purposes, could have the effect of making it more difficult for a third party to acquire, or could discourage a third party from seeking to acquire, a majority of our outstanding voting stock. Additionally, the issuance of preferred stock may adversely affect the holders of our common stock by restricting dividends on the common stock, diluting the voting power of the common stock or subordinating the liquidation rights of the common 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. 

Forum Selection 

Our amended and restated certificate of incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will, to the fullest extent permitted by applicable law, be the sole and exclusive forum for: (1) any derivative action or proceeding brought on our behalf; (2) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees or stockholders to us or our stockholders; (3) any action asserting a claim against us, any director or our officers and employees arising pursuant to any provision of the DGCL, our amended and restated certificate of incorporation or our amended and restated bylaws, or as to which the DGCL confers exclusive jurisdiction on the Court of Chancery; or (4) any action asserting a claim against us, any director or our officers or employees that is governed by the internal affairs doctrine; provided that the exclusive forum provisions will not apply to suits brought to enforce any liability or duty created by the Exchange Act, or to any claim for which the federal courts have exclusive jurisdiction. Our amended and restated certificate of incorporation further provides that, unless we consent in writing to the selections of an alternative forum, the federal district courts are the sole and exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended. 

 

Dividends 

Declaration and payment of any dividend will be subject to the discretion of our board of directors. The time and amount of dividends will be dependent upon, among other things, our business prospects, results of operations, financial condition, cash requirements and availability, debt repayment obligations, capital expenditure needs, contractual restrictions, covenants in the agreements governing our current and future indebtedness, industry trends, the provisions of Delaware law affecting the payment of dividends and distributions to stockholders and any other factors or considerations our board of directors may regard as relevant. 

 

 

Anti-Takeover Provisions

Our amended and restated certificate of incorporation, our amended and restated bylaws and the Delaware General Corporation Law (“DGCL”) contain provisions that may delay, defer or discourage another party from acquiring control of us. We expect that these provisions, which are summarized below, will discourage coercive takeover practices or inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our board of directors, which we believe may result in an improvement of the terms of any such acquisition in favor of our stockholders. However, they also give our board of directors the power to discourage acquisitions that some stockholders may favor. 

Stockholder Action; Special Meetings of Stockholders 

Our amended and restated certificate of incorporation and amended and restated bylaws provide that our stockholders may not take action by written consent, but may only take action at annual or special meetings of our stockholders. As a result, a holder controlling a majority of our capital stock would not be able to amend our amended and restated bylaws or remove directors without holding a meeting of our stockholders called in accordance with our amended and restated bylaws. Further, our amended and restated bylaws provide that only our board of directors, the chairperson of our board of directors or our chief executive officer may call special meetings of our stockholders, thus prohibiting a stockholder from calling a special meeting. These provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders controlling a majority of our capital stock to take any action, including the removal of directors. 

Advance Notice Requirements for Stockholder Proposals and Director Nominations 

In addition, our amended and restated bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting or special meeting of stockholders, including proposed nominations of candidates for election to our board of directors. Generally, in order for any matter to be “properly brought” before a meeting, the matter must be (a) specified in a notice of meeting given by or at the direction of our board of directors, (b) if not specified in a notice of meeting, otherwise brought before the meeting by our board of directors or the chairperson of the meeting, or (c) otherwise properly brought before the meeting by a stockholder present in person who (1) was a stockholder both at the time of giving the notice and at the time of the meeting, (2) is entitled to vote at the meeting, and (3) has complied with the advance notice procedures specified in the amended and restated bylaws or properly made such proposal in accordance with Rule 14a-8 under the Exchange Act and the rules and regulations thereunder, which proposal has been included in the proxy statement for the annual meeting. Further, for business to be properly brought before an annual meeting by a stockholder, the stockholder must (a) provide Timely Notice (as defined below) thereof in writing and in proper form to the secretary and (b) provide any updates or supplements to such notice at the times and in the forms required by our amended and restated bylaws. To be timely, a stockholder’s notice must be delivered to, or mailed and received at, our principal executive offices not less than 90 days nor more than 120 days prior to the one-year anniversary of the preceding year’s annual meeting; provided, however, that if the date of the annual meeting is more than 30 days before or more than 60 days after such anniversary date, to be timely, notice by the stockholder must be so delivered, or mailed and received, not later than the 10th day following the day on which public disclosure of the date of such annual meeting was first made (such notice within such time periods, “Timely Notice”). 

Stockholders at a special meeting may only consider proposals or nominations specified in the notice of meeting or, in the case of our annual meetings, brought before the meeting by or at the direction of our board of directors or by a qualified stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has delivered Timely Notice as discussed above. These provisions could have the effect of delaying stockholder actions that are favored by the holders of a majority of our outstanding voting securities until the next stockholder meeting. 

 

 

Amendment of Certificate of Incorporation or Bylaws 

Our amended and restated bylaws may be amended or repealed by a majority vote of our board of directors or by the affirmative vote of two-thirds of the voting power of the outstanding shares of capital stock entitled to vote thereon. The affirmative vote of a majority of our board of directors and two-thirds in voting power of the outstanding shares entitled to vote thereon would be required to amend our amended and restated certificate of incorporation. 

Section 203 of the DGCL 

We are governed by the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a public Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years after the time of the transaction in which the person became an interested stockholder, unless: 

	
 
	
•
	
the business combination or transaction which resulted in the stockholder becoming an interested stockholder was approved by the board of directors prior to the time that the stockholder became an interested stockholder; 

	
 
	
•
	
upon consummation of the transaction which 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 shares owned by directors who are also officers of the corporation and 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 time the stockholder became an interested stockholder, the business combination was approved by the board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least 662/3% of the outstanding voting stock which is not owned by the interested stockholder. 

In general, Section 203 defines a “business combination” to include mergers, asset sales and other transactions resulting in financial benefit to a stockholder and an “interested stockholder” as a person who, together with affiliates and associates, owns, or, if such person is an affiliate or associate of the corporation, within three years did own, 15% or more of the corporation’s outstanding voting stock. These provisions may have the effect of delaying, deferring or preventing changes in control of our company. 

 

Limitations on Liability and Indemnification of Officers and Directors 

Our amended and restated certificate of incorporation and amended and restated bylaws provide indemnification and advancement of expenses for our directors and officers to the fullest extent permitted by the DGCL, subject to certain limited exceptions. We have entered into separate indemnification agreements with each of our directors and our executive officers. In some cases, the provisions of our indemnification agreements with our directors and executive officers may be broader than the specific indemnification provisions contained under Delaware law. In addition, as permitted by Delaware law, our amended and restated certificate of incorporation includes provisions that eliminate the personal liability of our directors for monetary damages resulting from breaches of certain fiduciary duties as a director. The effect of this provision is to restrict our rights and the rights of our stockholders in derivative suits to recover monetary damages against a director for breach of fiduciary duties as a director. This provision does not, however, eliminate the personal liability of our directors for monetary damages resulting from: (1) breach of the director’s duty of loyalty, (2) acts or omissions not in good faith that involve intentional misconduct or knowing violation of law, (3) an unlawful payment of dividends or an unlawful stock purchase or redemption, or (4) any transaction from which the director derived an improper personal benefit. 

 

 

These provisions may be held not to be enforceable for violations of the federal securities laws of the United States. 

Dissenters’ Rights of Appraisal and Payment 

Under the DGCL, with certain exceptions, our stockholders have appraisal rights in connection with a merger or consolidation of Vroom, Inc. Pursuant to Section 262 of the DGCL, stockholders who properly demand and perfect appraisal rights in connection with such merger or consolidation will have the right to receive payment of the fair value of their shares as determined by the Delaware Court of Chancery. 

Stockholders’ Derivative Actions 

Under the DGCL, any of our stockholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of our shares at the time of the transaction to which the action relates. 

Trading Symbol and Market 

Our common stock is listed on The Nasdaq Global Select Market under the symbol “VRM.”

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