Document:

Exhibit
4.1

 

DESCRIPTION
OF THE SECURITIES OF BALLANTYNE STRONG, INC.

REGISTERED
PURSUANT TO SECTION 12 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

The
following summarizes the terms and provisions of the securities of Ballantyne Strong, Inc., a Delaware corporation (the “Company”).
The common stock of the Company 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
Certificate of Incorporation and Bylaws, each as amended, which the Company has previously filed with the Securities and Exchange
Commission, and applicable Delaware law.

 

Authorized
Capital

 

The
Company’s authorized capital stock consists of 25,000,000 shares of common stock, $0.01 par value per share (the “Common
Stock”), and 1,000,000 shares of preferred stock, $0.01 par value per share (the “Preferred Stock”).

 

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

 

Exchange
and Trading Symbol

 

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

 

Rights
and Preferences

 

All
outstanding shares of Common Stock are duly authorized, fully paid and nonassessable. Holders of shares of Common Stock have no
conversion, preemptive or subscription rights, and there are no redemption or 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.

 

In
the event of the Company’s liquidation, dissolution or winding up, the holders of Common Stock are entitled to share ratably
in the assets legally available for distribution to stockholders after the payment of all of the Company’s known debts and
liabilities and after adequate provision has been made for each class of stock having preference over the Common Stock, if any.

 

Voting
Rights

 

Holders
of Common Stock are entitled to one vote for each share held of record on all matters to be voted on by the stockholders. There
is no cumulative voting with respect to the election of directors. 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 shares of Preferred Stock, the 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.

 

    	 

    	 

    

 

Preferred
Stock

 

The
Board of Directors of the Company is authorized, subject to any limitations prescribed by applicable law and without further approval
or action by the holders of Common Stock, to issue shares of Preferred Stock in one or more series. The Board of Directors may
fix the designation, powers, preferences and rights of the shares of each such series and any qualifications, limitations or restrictions
thereof, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences and sinking
fund terms. The Company has no outstanding shares of Preferred Stock.

 

The
rights of the holders of Common Stock will generally be subject to the prior rights of the holders of any outstanding shares of
Preferred Stock with respect to dividends, liquidation preferences and other matters.

 

Anti-Takeover
Effects of Provisions of Delaware Law and the Company’s Certificate of Incorporation and Bylaws

 

Delaware
Anti-Takeover Law

 

The
Company is subject to Section 203 of the Delaware General Corporation Law (“Section 203”). Section 203 generally prohibits
a public 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 the person became an interested stockholder unless:

 

	 	●	prior
    to the date of the transaction, the board of directors of the corporation approved either the business combination or the
    transaction which resulted in the stockholder becoming 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 for
    purposes of determining the number of shares outstanding (but not the outstanding voting stock owned by the interested stockholder)
    those shares owned by (i) persons who are directors and also officers and (ii) 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 such time the business combination is approved by the board of directors and authorized at an annual or special
    meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting
    stock which is not owned by the interested stockholder.

 

Section
203 defines a “business combination” to generally include:

 

	 	●	any
    merger or consolidation of the corporation or any direct or indirect majority-owned subsidiary of the corporation with the
    interested stockholder;
	 	 	 
	 	●	any
    sale, lease, exchange, mortgage, pledge, transfer or other disposition (in one transaction or a series of transactions), except
    proportionately as a stockholder of such corporation, to or with the interested stockholder of assets of the corporation or
    of any direct or indirect majority-owned subsidiary of the corporation which assets have an aggregate market value equal to
    10% or more of either the aggregate market value of all the assets of the corporation determined on a consolidated basis or
    the aggregate market value of all the outstanding stock of the corporation;
	 	 	 
	 	●	subject
    to certain exceptions, any transaction which results in the issuance or transfer by the corporation or by any direct or indirect
    majority-owned subsidiary of the corporation of any stock of the corporation or of such subsidiary to the interested stockholder;

 

    	 

    	 

    

 

	 	●	subject
    to certain exceptions, any transaction involving the corporation or any direct or indirect majority-owned subsidiary of the
    corporation that has the effect, directly or indirectly, of increasing the interested stockholder’s proportionate share
    of the stock of any class or series of securities, or securities convertible into the stock of any class or series, of the
    corporation or of any such subsidiary; and
	 	 	 
	 	●	any
    receipt by the interested stockholder of the benefit, directly or indirectly (except proportionately as a stockholder of such
    corporation), of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation
    or any direct or indirect majority-owned subsidiary.

 

In
general, Section 203 defines an interested stockholder as any entity or person that (i) is the owner of 15% or more of the outstanding
voting stock of the corporation, or (ii) is an affiliate or associate of the corporation and was the owner of 15% or more of the
outstanding voting stock of the corporation at any time within the three-year period immediately prior to the date on which it
is sought to be determined whether such person is an interested stockholder, and the affiliates and associates of such person.

 

Certificate
of Incorporation and Bylaws

 

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

 

	 	●	authorize
    the Board of Directors, without further action by the 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;
	 	 	 
	 	●	establish
    advance notice procedures for stockholders to submit nominations of candidates for election to the Board of Directors to be
    brought before a stockholders 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 (subject to the rights of the holders of any series of Preferred Stock to elect additional
    directors under specified circumstances);
	 	 	 
	 	●	require
    the affirmative vote of the holders of at least 66 2/3% of the voting power of all of the then-outstanding shares of capital
    stock of the Company entitled to vote generally in the election of directors in order to remove a director or the entire Board
    of Directors for cause;
	 	 	 
	 	●	do
    not provide stockholders cumulative voting rights with respect to director elections; and
	 	 	 
	 	●	provide
    that the Company’s Bylaws may be amended by the Board of Directors without stockholder approval; provided, however,
    that the stockholders may amend the Bylaws only with the affirmative vote of the holders of at least 66 2/3% of the voting
    power of all of the then-outstanding shares of capital stock of the Company entitled to vote generally in the election of
    directors.

 

Provisions
of the Company’s Certificate of Incorporation and Bylaws may delay or discourage transactions involving an actual or potential
change in the Company’s control 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 the Company’s stockholders
might otherwise deem to be in their best interests. Therefore, these provisions could adversely affect the price of the Common
Stock.

 

Authorized
and Unissued Shares

 

The
Company’s authorized and unissued shares of Common Stock are available for future issuance without stockholder approval
except as may otherwise be required by applicable stock exchange rules or Delaware law. The Company may issue additional shares
for a variety of purposes, including future offerings to raise additional capital, to fund acquisitions and as employee and consultant
compensation. The existence of authorized but unissued shares of 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
issuance of shares of Preferred Stock by the Company could have certain anti-takeover effects under certain circumstances, and
could enable the Board of Directors to render more difficult or discourage an attempt to obtain control of the Company by means
of a merger, tender offer, or other business combination transaction directed at the Company by, among other things, placing shares
of Preferred Stock with investors who might align themselves with the Board of Directors.Document

EXHIBIT 4.2

DESCRIPTION OF TELARIA, INC. COMMON STOCK
 
The following description of our common stock is a summary and does not purport to be complete. This summary is qualified in its entirety by reference to the provisions of the Delaware General Corporation Law and the complete text of our amended and restated certificate of incorporation, as amended to date, and amended and restated bylaws, as amended to date, which are incorporated by reference as Exhibits 3.1 and 3.2, respectively, to our Annual Report on Form 10-K to which this description is also an exhibit. We encourage you to read that law and those documents carefully.
 
Authorized Capital Stock
 
Our authorized capital stock consists of 250,000,000 shares of common stock, par value $0.0001 per share, and 10,000,000 shares of preferred stock, par value $0.0001 per share, all of which are undesignated. Our board of directors may establish the rights and preferences of the preferred stock from time to time.
 
Common Stock
 
Voting Rights
 
Each holder of our common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. Under our certificate of incorporation and bylaws, our stockholders do not have cumulative voting rights. Because of this, the holders of a majority of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they should so choose.
 
Dividends
 
Subject to preferences that may be applicable to any then-outstanding preferred stock, holders of common stock are entitled to receive ratably those dividends, if any, as may be declared from time to time by the board of directors out of legally available funds.
 
Liquidation
 
In the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then-outstanding shares of preferred stock.
 
Rights and Preferences
 
Holders of our common stock have no preemptive, conversion or subscription rights and there are no redemption or 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 we may designate in the future.
 
Anti-Takeover Provisions
 
Anti-Takeover Statute
 
We are subject to Section 203 of the Delaware General Corporation Law, which generally prohibits a publicly held Delaware corporation from engaging in any business combination with any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder, with the following exceptions:
 
 
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· before such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

· upon completion of the transaction that 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 began, excluding for purposes of determining the voting stock outstanding, but not the outstanding voting stock owned by the interested stockholder, those shares owned (1) by persons who are directors and also officers and (2) 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

· on or after such date, the business combination is 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 that is not owned by the interested stockholder.
 
In general, Section 203 defines a “business combination” to include the following:
 
· any merger or consolidation involving the corporation and the interested stockholder;

· any sale, transfer, lease, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;

· subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; 
 
· any transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class or series of the corporation beneficially owned by the interested stockholder; or

· the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits by or through the corporation.
 
In general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s affiliates and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder status did own, 15% or more of the outstanding voting stock of the corporation.
 
Anti-Takeover Effects of Certain Provisions of our Certificate of Incorporation and Bylaws
 
Our certificate of incorporation provides for our board of directors to be divided into three classes with staggered three-year terms. Only one class of directors is elected at each annual meeting of our stockholders, with the other classes continuing for the remainder of their respective three-year terms. Because our stockholders do not have cumulative voting rights, stockholders holding a majority of the shares of common stock outstanding are able to elect all of our directors. Our certificate of incorporation and bylaws also provides that directors may be removed by the stockholders only for cause upon the vote of 662/3% or more of our outstanding common stock. Furthermore, the authorized number of directors may be changed only by resolution of the board of directors, and vacancies and newly created directorships on the board of directors may, except as otherwise required by law or determined by the board, only be filled by a majority vote of the directors then serving on the board, even though less than a quorum.
 
Our certificate of incorporation and bylaws also provide that all stockholder actions must be effected at a duly called meeting of stockholders and do not permit stockholders to act by written consent without a meeting. Our bylaws also provide that only our chairman of the board, chief executive officer or the board of directors pursuant to a resolution adopted by a majority of the total number of authorized directors may call a special meeting of stockholders.
 
Our bylaws also provide that stockholders seeking to present proposals before our annual meeting of stockholders or to nominate candidates for election as directors at a meeting of stockholders must provide timely 
 
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advance notice in writing, and, subject to applicable law, specifies requirements as to the form and content of a stockholder’s notice.
 
Our certificate of incorporation and bylaws provide that the stockholders cannot amend many of the provisions described above except by a vote of 662/3% or more of our outstanding common stock.
 
The combination of these provisions may make it more difficult for our existing stockholders to replace our board of directors as well as for another party to obtain control of us by replacing our board of directors. Since our board of directors has the power to retain and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect a change in management. In addition, the authorization of undesignated preferred stock makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change our control.
 
These provisions are intended to enhance the likelihood of continued stability in the composition of our board of directors and its policies and to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to reduce our vulnerability to hostile takeovers and to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our shares and may have the effect of delaying changes in our control or management. As a consequence, these provisions may also inhibit fluctuations in the market price of our stock that could result from actual or rumored takeover attempts. We believe that the benefits of these provisions, including increased protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure our company, outweigh the disadvantages of discouraging takeover proposals, because negotiation of takeover proposals could result in an improvement of their terms.
 
Choice of Forum
 
Our certificate of incorporation provides that the Court of Chancery of the State of Delaware is the exclusive forum for any derivative action or proceeding brought on our behalf; any action asserting a breach of fiduciary duty owed by and of our directors, officers or employees to us or our stockholders; any action asserting a claim against us arising pursuant to the Delaware General Corporation Law, our certificate of incorporation or our bylaws; or any action asserting a claim against us that is governed by the internal affairs doctrine. Several lawsuits have been filed in Delaware challenging the enforceability of similar choice of forum provisions and it is possible that a court determines such provisions are not enforceable.
 
 
 
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