Exhibit
4.1


 


DESCRIPTION
OF THE COMPANY’S SECURITIES


REGISTERED
PURSUANT TO SECTION 12 OF THE SECURITIES


EXCHANGE
ACT OF 1934


 


Harrow
Health, Inc. has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common
stock, par value $0.001 per share.


 


In
this exhibit, when we refer to “Company”, “Harrow”, “we”, “us” and “our”
or when we otherwise refer to ourselves, we mean Harrow Health, Inc., excluding, unless otherwise expressly stated or the context
requires, our subsidiaries.


 


The
following is a summary of the rights of our common and preferred stock and of certain provisions of our Amended and Restated Certificate
of Incorporation and Amended and Restated Bylaws. For more detailed information, please see our Amended and Restated Certificate
of Incorporation and Amended and Restated Bylaws, which are incorporated by reference as exhibits to the Annual Report on Form
10-K to which this description is an exhibit.


 


Authorized
Capital Stock


 


Our
authorized capital stock consists of 55,000,000 shares, 50,000,000 of which are designated as common stock, par value $0.001 per
share, and 5,000,000 of which are designated as preferred stock, par value $0.001 per share. As of March 5, 2021, there were 25,983,364
shares of our common stock and no shares of our preferred stock issued and outstanding.


 


Capital
Stock Issued and Outstanding


 


As
of March 1, 2021, there were approximately 96 stockholders of record (excluding an indeterminable number of stockholders whose
shares are held in street or “nominee” name) of our common stock. In addition, as of December 31, 2019, there are
outstanding (i) options to acquire 2,656,683 shares of our common stock with a weighted average exercise price of $5.31 per share,
(ii) warrants to purchase 780,386 shares of common stock with a weighted average exercise price of $2.12 per share, (iii) 1,411,930
unvested restricted stock units and (iv) 324,303 restricted stock units award to directors that had vested, but issuance and delivery
of the shares are deferred until the director resigns or otherwise leaves the Board of Directors.


 


Description
of Common Stock


 


We
are authorized to issue 50,000,000 shares of common stock, par value $0.001 per share. The holders of our common stock are entitled
to one vote per share on all matters submitted to a vote of the stockholders, including the election of directors. Our Amended
and Restated Certificate of Incorporation does not provide for cumulative voting in the election of directors. Subject to any
preferential rights of any outstanding series of preferred stock created by our Board of Directors from time to time the holders
of our common stock will be entitled to cash dividends as may be declared, if any, by our Board of Directors from funds available.
Subject to any preferential rights of any outstanding series of preferred stock that we may issue, upon liquidation, dissolution
or winding up of our company, the holders of our common stock will be entitled to receive pro rata all assets available for distribution
to the holders.


 


Description
of Preferred Stock


 


Our
Board of Directors has the authority, without further action by our stockholders, to issue up to 5,000,000 shares of preferred
stock, par value $0.001 per share, in one or more series. Our Board of Directors may designate the rights, preferences, privileges
and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation
preference, sinking fund terms, and number of shares constituting any series and the designation of any series. The issuance of
preferred stock could have the effect of restricting dividends on our common stock, diluting the voting power of our common stock,
impairing the liquidation rights of our common stock, or delaying or preventing a change in control. The ability to issue preferred
stock could delay or impede a change in control.


 




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Anti-Takeover
Provisions


 


We
are subject to the provisions of Section 203 of the Delaware General Corporation Law, or DGCL, an anti-takeover law. In general,
Section 203 prohibits a publicly held Delaware corporation from engaging in a “business combination’’ with an
“interested stockholder’’ for a period of three years after the date of the transaction in which such stockholder
became an interested stockholder, unless the business combination is approved in a prescribed manner. For purposes of Section
203, a “business combination’’ includes a merger, asset sale or other transaction resulting in a financial benefit
to the interested stockholder, and an “interested stockholder’’ is a stockholder who, together with affiliates
and associates, owns, or within three years prior, did own, 15% or more of the voting stock.


 


Liability
and Indemnification of Directors and Officers


 


Section
145 of the DGCL provides, in general, that a corporation incorporated under the laws of the State of Delaware, such as us, may
indemnify 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 (other than a derivative action by or in the right of the corporation) by reason of the fact that such person
is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as
a director, officer, employee or agent of another enterprise, against expenses (including attorneys’ fees), judgments, fines
and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding
if such person acted in good faith and in a manner such person 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 such person’s
conduct was unlawful. In the case of a derivative action, a Delaware corporation may indemnify any such person against expenses
(including attorneys’ fees) actually and reasonably incurred by such person in connection with the defense or settlement
of such action or suit if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed
to the best interests of the corporation, except that no indemnification will be made in respect of any claim, issue or matter
as to which such person will have been adjudged to be liable to the corporation unless and only to the extent that the Court of
Chancery of the State of Delaware or any other court in which such action was brought determines such person is fairly and reasonably
entitled to indemnity for such expenses.


 


Our
Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws provide that we will indemnify our directors,
officers, employees and agents to the extent and in the manner permitted by the provisions of the DGCL, as amended from time to
time, subject to any permissible expansion or limitation of such indemnification, as may be set forth in any stockholders’
or directors’ resolution or by contract.


 


We
also have director and officer indemnification agreements with each of our executive officers and directors that provide, among
other things, for the indemnification to the fullest extent permitted or required by Delaware law, provided that such indemnitee
shall not be entitled to indemnification in connection with any proceedings or claims initiated or brought voluntarily by the
indemnitee and not by way of defense, unless (i) such indemnification is expressly required to be made by law, (ii) the proceeding
was authorized by our Board of Directors, (iii) indemnification is provided by us, in our sole discretion, pursuant to powers
vested in us under the DGCL, or (iv) the proceeding is brought to establish or enforce a right to indemnification under the indemnification
agreement or any other statute or law or otherwise as required under Section 145 of the DGCL. We are not required to indemnify
the indemnitee for any amounts paid in settlement of a proceeding unless we consent to such settlement.


 


Any
repeal or modification of these provisions approved by our stockholders shall be prospective only, and shall not adversely affect
any limitation on the liability of a director or officer existing as of the time of such repeal or modification.


 


We
have purchased and intend to maintain insurance on our behalf and on behalf of any person who is or was a director or officer
against any loss arising from any claim asserted against him or her and incurred by him or her in that capacity, subject to certain
exclusions and limits of the amount of coverage.


 


Listing;
Transfer Agent


 


Our
common stock is listed on The NASDAQ Global Market under the symbol “HROW”. The transfer agent and registrar for our
common stock is Action Stock Transfer Corporation, 2469 E. Fort Union Blvd., Suite 214, Salt Lake City, UT 84121.


 




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