Document:

Exhibit 4.2

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES

REGISTERED
PURSUANT TO SECTION 12 OF THE

SECURITIES
EXCHANGE ACT OF 1934

 

IntriCon
Corporation has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”): our common stock, par value $1.00 per share (the “common stock”). References
herein to “we,” “us” and “our company” refer to IntriCon Corporation and not to any of our
subsidiaries.

 

DESCRIPTION
of Common Stock

 

The following description of the common
stock of IntriCon Corporation is a summary and does not purport to be complete. It
is subject to and qualified in its entirety by reference to our Amended and Restated
Articles of Incorporation, as amended (the “Articles”) and our Amended and Restated By-Laws (the “By-Laws”),
each of which is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit is a part. We
encourage you to read our Articles, By-Laws and the applicable provisions of the Pennsylvania Business Corporation Law of 1988,
as amended for additional information. 

 

Authorized Capitalization

 

As of December
31, 2019, our authorized capital stock consisted of (i) 20,000,000 shares of common stock, par value $1.00 per share, of
which 8,781,311 shares were issued and outstanding, and (ii) 1,000,000 shares of preferred stock, par value $1.00 per share, of
which no shares were issued and outstanding. 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 then outstanding preferred stock.

 

Dividend Rights.

 

The holders of our common stock may receive
cash dividends, if and when declared by our board of directors out of funds legally available for that purpose, and subject to
preferential rights of the holders of preferred stock outstanding at the time.

 

Voting Rights.

 

Subject to the rights specifically granted
to holders of any then outstanding preferred stock, our common shareholders are entitled to vote together as a class on all matters
submitted to a vote of our shareholders, including the election of directors. Each share of common stock entitles the holder thereof
to one vote on each matter to come before the shareholders, except as otherwise provided in our Articles or By-Laws. Holders of
our common stock do not have cumulative voting rights with respect to the election of directors.

 

No Pre-emptive or Other Rights.

 

Holders of common stock are not entitled
to pre-emptive, subscription, conversion or redemption rights.

 

Right to Receive Liquidation Distributions.

 

Upon our dissolution or liquidation, holders
of our common stock are entitled to share ratably in our net assets after payment or provision for all liabilities and any preferential
liquidation rights of our preferred stock then outstanding.

 

Anti-Takeover Provisions 

 

Our Articles and By-Laws contain a number
of provisions relating to corporate governance and to the rights of shareholders. Certain of these provisions may be deemed to
have a potential “anti-takeover” effect by delaying, deferring or preventing a change of control of us.

 

Preferred Stock

 

Our ability to issue preferred shares in
the future having terms established by the board of directors without shareholder approval, while providing flexibility in connection
with possible acquisitions and other corporate purposes, could adversely affect the voting power of holders of common stock. One
of the effects of undesignated preferred stock whose terms may be set by the board of directors may be to enable our board of directors
to discourage an attempt to obtain control of our company by means of a tender offer, proxy contest, merger or otherwise.

 

     

     

    

 

Classified Board of Directors

 

Our By-Laws provide that our directors
be classified into three classes, as nearly equal in number as possible, with one class being elected each year. Each director
holds office for a term of three years and until his or her successor is duly elected and qualified unless his or her term ends
earlier due to death, resignation or removal. Any director or the entire board of directors may be removed only for cause and only
upon the affirmative vote of two-thirds of all of the shares outstanding and entitled to vote; provided that the board of directors
retains the right conferred by Pennsylvania corporate law to declare vacant the office of a director for reasons specified therein.

 

Under the classified board provisions described
above, it would take at least two elections of directors for any individual or group to gain control of our board of directors.
Accordingly, these provisions could discourage a third party from initiating a proxy contest, making a tender offer or otherwise
attempting to gain control of us.

 

Removal of Directors

 

Our directors may be removed only for cause
and only upon the affirmative vote of the holders of at least two-thirds of all of the shares of common stock outstanding and entitled
to vote. This provision could also discourage a third party from initiating a proxy contest, making a tender offer or otherwise
attempting to gain control of us.

 

Amendment to By-Laws

 

Our By-Laws provide that the affirmative
vote of the holders of at least two-thirds of our voting stock then outstanding, voting together as a single class, is required
to amend or repeal provisions of our By-Laws relating to a classified board or the removal of a director or the entire board of
directors. Except for such provision, our By-Laws generally may be amended by our board or by the affirmative vote of the holders
of a majority of the outstanding shares entitled to vote, present in person or represented by proxy, at a meeting at which a quorum
is present, though such a majority may be less than a majority of all of the shares entitled to vote thereon.

 

Advance Notice Procedures

 

Our By-Laws establish procedures for the
nomination of directors by shareholders and the proposal by shareholders of matters to be considered at meetings of the shareholders,
including the submission of certain information within the time periods prescribed in the By-Laws.Exhibit

Exhibit 4.2
DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE SECURITIES AND EXCHANGE ACT OF 1934

As of March 16, 2020, Venture Lending & Leasing VIII, Inc. (the “Fund”) has common stock (“Common Stock”) registered under Section 12(g) of the Securities and Exchange Act of 1934, as amended.
The following description of the Fund’s shares of Common Stock is a summary and does not purport to be complete.  It is subject to and qualified in its entirety by reference to the Fund’s Amended and Restated Articles of Incorporation (the “Articles of Incorporation”) and Amended and Restated Bylaws (the “Bylaws”), each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.2 is a part.  Please see the Articles of Incorporation and Bylaws for more detailed information. 
Description of the Stock
		
	A.
	The total number of shares of all classes of stock that the Fundy initially had authority to issue was ten million (10,000,000) shares of Common Stock, $.001 par value per share., having an aggregate par value of $10,000.

 
		
	B.
	The Board of Directors (the “Board”) may authorize the issuance from time to time of shares of Common Stock or securities or rights convertible into shares of Common Stock for such consideration as the Board may deem advisable.  The total number of shares of Common Stock that the Fund has outstanding is one hundred million (100,000,000).  The sole holder of the Fund’s shares of Common Stock is Venture Lending & Leasing VIII, LLC (the “Sole Shareholder”).  

		
	C.
	No shareholder of the Fund has any preemptive right to purchase or subscribe for any additional shares of stock, or any other security, of the Fund.  Shareholders are generally not be entitled to exercise any rights of an objecting shareholder, unless the Board determines such rights apply. 

		
	D.
	The Board may impose restrictions on transferability of the Fund’s Common Stock.

		
	E.
	No shares of the Fund’s Common Stock have any conversion or exchange rights or privileges or have cumulative voting rights.

		
	F.
	Except as otherwise required under the Investment Company Act of 1940 (the “1940 Act”), voting power for the election of directors and for all other purposes is vested exclusively in the holders of the Fund’s Common Stock.  Each holder of a full or fractional share of Common Stock is entitled, in the case of full shares, to one vote for each such share and, in the case of fractional shares, to a fraction of one vote corresponding to the fractional amount of each such fractional share.  The Operating Agreement of the Sole Shareholder (the “Operating Agreement”) grants the members of the Sole Shareholder (the “Members”) pass-through voting rights, meaning that the Sole Shareholder may take no action with respect to the Fund’s Common Stock without first securing the approval of the Members, with the same vote required of the Members as is required of holders of the Fund’s Common Stock.

		
	G.
	Any assets of the Fund distributed to its Sole Shareholder, in cash or in kind at the option of the Board, are distributed in proportion to the number of full and fractional outstanding shares of Common Stock held.  Assets of the Fund distributed to the Sole Shareholder, which are further distributed to the Members, will follow the Distribution Policy set forth in the Operating Agreement.

		
	H.
	Any action required or permitted to be taken by the shareholders at a meeting of shareholders may be taken without a meeting if (1) the Fund’s Sole Shareholder signs a written consent to the action, (2) all shareholders entitled to notice of the meeting but not entitled to vote at it sign a written waiver of any right to dissent, and (3) the consents and waivers are filed with the records of the meetings of shareholders. Such consent shall be treated for all purposes as a vote at the meeting.

		
	I.
	Each shareholder of the Fund must, upon demand, disclose to the Fund information about their Common Stock holdings that the Board or any officer or agent of the Fund designated by the Board deems necessary to comply with provisions of the Internal Revenue Code of 1986 applicable to the Fund, the requirements of any other appropriate taxing authority, the provisions of the 1940 Act, or the provisions of the Employee Retirement Income Security Act of 1974, as any of said laws may be amended from time to time.

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