Document:

Exhibit
4.2

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

As
of March 17, 2020, MBC Funding II Corp. (the “Company”, “we”, “us” or “our”)
has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), consisting of 6% Senior Secured Notes, due April 22, 2026 (the “Notes”). The following description of
the Notes is a summary only. This summary is not complete and is qualified in its entirety by reference to the Indenture, dated
April 25, 2016 (the “Indenture”), between the Company, as issuer, Manhattan Bridge Capital, Inc., as guarantor (the
“Guarantor”), and Worldwide Stock Transfer LLC, as trustee (the “Indenture Trustee”), as note register
and as paying agent. The Indenture is filed as an exhibit to this Annual Report on Form 10-K of which this Exhibit 4.2 forms a
part.

 

General

 

We
issued an aggregate principal amount of $6,000,000 of the Notes on April 25, 2016. The Notes have a principal amount of $1,000
each. Unless redeemed earlier as set forth in the Indenture, the entire outstanding principal balance of the Notes and all accrued
but unpaid interest thereon will become due and payable on April 22, 2026. As of March 17, 2020, we had an aggregate principal
amount of $6,000,000 of the Notes outstanding.

 

Interest

 

Interest
accrues on the Notes commencing on May 16, 2016. The accrued interest is payable monthly in cash, in arrears, on the 15th day
of each calendar month commencing June 2016.

 

Ranking

 

The
Notes are our senior secured obligations. The payment of principal and interest on the Notes is structurally senior to all present
and future claims of our creditors.

 

Security

 

The
Notes are secured by all of our assets, which consist primarily of a pool of mortgage loans, each of which is secured by first
priority liens on real estate, and cash.

 

Redemption

 

Optional
Redemption

 

We
may redeem the Notes, in whole or in part, at any time after April 22, 2019 upon at least 30 days prior written notice to any
party holding a Note (each referred to as a “Noteholder” and collectively the “Noteholders”). The redemption
price will be equal to the outstanding principal amount of the Notes redeemed plus the accrued but unpaid interest thereon up
to, but not including, the date of redemption, without penalty or premium; provided that (i) if the Notes are redeemed on or after
April 22, 2019 but prior to April 22, 2020, the redemption price will be 103% of the principal amount of the Notes redeemed and
(ii) if the Notes are redeemed on or after April 22, 2020 but prior to April 22, 2021, the redemption price will be 101.5% of
the principal amount of the Notes redeemed plus, in either case, the accrued but unpaid interest on the Notes redeemed up to,
but not including, the date of redemption.

 

Each
Noteholder has the right to cause us to redeem his, her or its Notes on April 22, 2021. The redemption price will be equal to
the outstanding principal amount of the Notes redeemed plus the accrued but unpaid interest up to, but not including, the date
of redemption, without penalty or premium. In order to exercise this right, the Noteholder must notify us, in writing, no earlier
than November 22, 2020 and no later than January 22, 2021. All Notes that are subject to a proper and timely notice will be redeemed
on April 22, 2021. Any Noteholder who fails to make a proper and timely election will be deemed to have waived his, her or its
right to have his, her or its Notes redeemed prior to the maturity date.

 

    	 

    	 

    

 

Obligation
to Redeem

 

We
are obligated to offer to redeem the Notes in the event of a “change of control” (as defined in the Indenture), with
respect to us or the Guarantor or if we or the Guarantor sell any assets, unless, in the case of an asset sale, the proceeds are
reinvested in the business of the seller. The redemption price in connection with a “change of control” will be 101%
of the principal amount of the Notes redeemed plus accrued but unpaid interest thereon up to, but not including, the date of redemption.
The redemption price in connection with an asset sale will be the outstanding principal amount of the Notes redeemed plus accrued
but unpaid interest thereon up to, but not including, the date of redemption.

 

Listing

 

The
Notes are listed on the NYSE American and traded under the symbol “LOAN/26”.

 

Sinking
Fund

 

The
Notes are not associated with any sinking fund.

 

Transfers

 

The
Notes are transferable in accordance with the terms and conditions set forth in the Indenture. For Notes that are represented
by a global certificate held by a depositary or its nominee, transfers of beneficial interests in such certificate must be effected
in accordance with the procedures and rules of the depositary. Upon transfer of a Note, we will provide the new registered Noteholder
with a purchase confirmation that will evidence the transfer of the account on our records. If applicable (e.g., if transferred
to a custodial account), a new certificate will be issued. Nevertheless, no written confirmations will be provided with respect
to transfers of beneficial interests in a global certificate held by a depositary or its nominee.

 

Restrictive
Covenants

 

The
Indenture contains covenants that restrict us from certain actions. In particular, the Indenture provides that:

 

	●	the
    Company will not declare or pay any dividends or other payments of cash or other property solely in respect of its capital
    stock to its shareholders unless no default and no event of default with respect to the Notes exists or would exist immediately
    following the declaration or payment of the dividend or other payment;
	 	 
	●	to
    the extent legally permissible, the Company will not at any time insist upon, plead, or in any manner whatsoever claim or
    take the benefit or advantage of, any stay, extension or usury law wherever enacted, which may affect the covenants or the
    performance of the Indenture;
	 	 
	●	the
    aggregate principal amount of the mortgage loans owned by the Company plus its cash on hand always must be equal to at least
    120% of the outstanding principal amount of the Notes;
	 	 
	●	neither
    the Company’s board of directors nor the Guarantor’s board of directors will adopt a plan of liquidation that
    provides for, contemplates or the effectuation of which is preceded by (a) the sale, lease, conveyance or other disposition
    of all or substantially all of the Company’s or the Guarantor’s assets, as the case may be, otherwise than (i)
    substantially as an entirety, or (ii) in a qualified sales and financing transaction, and (b) the distribution of all or substantially
    all of the proceeds of such sale, lease, conveyance or other disposition and of the Guarantor’s remaining assets to
    the holders of its capital stock, unless, prior to making any liquidating distribution pursuant to such plan, the Company
    makes provision for the satisfaction of its obligations under the Notes; and
	 	 
	●	the
    Company may not incur any additional indebtednesss.

 

    	 

    	 

    

 

Consolidation,
Mergers or Sales

 

The
Indenture generally permits a consolidation or merger between us and another entity. It also permits the sale or transfer by us
of all or substantially all of our property and assets. These transactions are permitted if:

 

	●	the
    resulting or acquiring entity, if other than us, is a United States corporation, limited liability company or limited partnership
    and assumes all of our responsibilities and liabilities under the Indenture, including the payment of all amounts due on the
    Notes and performance of the covenants in the Indenture; and
	 	 
	●	immediately
    after the transaction, and after giving effect to the transaction, no event of default exists under the Indenture.

 

If
the Company consolidates or merges with or into any other entity or sells or leases all or substantially all of its assets, according
to the terms and conditions of the Indenture, the resulting or acquiring entity will be substituted for the Company in the Indenture
with the same effect as if it had been an original party to the Indenture. As a result, the successor entity may exercise the
Company’s rights and powers under the Indenture in the Company’s name, and the Company (as an entity) will be released
from all its liabilities and obligations under the Indenture and under the Notes. Nevertheless, no such transaction will by itself
eliminate or modify the collateral that the Company has provided as security for its obligations under the Indenture.

 

Events
of Default and Remedies

 

The
Indenture provides that each of the following constitutes an event of default (“Event of Default”):

 

	●	the
    failure to pay principal on any Note after it becomes due and payable;
	 	 
	●	the
    failure to pay interest on any Note or any other fees for a period of 30 days after they become due and payable;
	 	 
	●	a
    failure to observe or perform certain material covenants, conditions or agreements in the Indenture immediately upon such
    failure, and a failure to observe or perform certain other material covenants, conditions or agreements in the Indenture but
    only after notice of failure from the Indenture Trustee or from the holders of 25% in aggregate principal amount of the then
    outstanding Notes and such failure is not cured within 30 days;
	 	 
	●	any
    judgment is rendered or filed against the Company or the Guarantor or with respect to any of its respective assets or which
    could reasonably be expected to have a material adverse effect (as defined in the Indenture);
	 	 
	●	any
    representation or warranty made by the Company or the Guarantor in the Indenture or any related agreement, document or financial
    or other statement shall prove to have been incorrect or misleading in any material respect on the date when made or deemed
    to have been made;
	 	 
	●	any
    default, termination or material breach of the Indenture or any other agreement entered into in connection with this offering,
    including any agreement creating or granting a lien or other security interest in the collateral, as well as any guaranty
    entered into in connection with the Notes or if any guarantor attempts to terminate, challenge the validity of or its liability
    under the related guaranty agreement or guarantor pledge agreement;
	 	 
	●	certain
    events of bankruptcy, insolvency or reorganization with respect to the Company or the Guarantor;
	 	 
	●	any
    transfer of collateral other than as explicitly permitted under the Indenture;
	 	 
	●	any
    default under the Indenture;
	 	 
	●	the
    Guarantor fails to make a payment on any material indebtedness when due or any default or event of default has occurred under
    the Webster Credit Agreement or any extension or replacement thereof or successor thereto; or
	 	 
	●	the
    cessation of our or the Guarantor’s business.

 

    	 

    	 

    

 

The
Indenture requires that we give immediate notice to the Indenture Trustee upon the occurrence of an event of default, unless it
has been cured or waived. The Indenture Trustee may then provide notice to the Noteholders or withhold the notice if the Indenture
Trustee determines in good faith that withholding the notice is in the Noteholder’s best interest, unless the default is
a failure to pay principal or interest on any Note.

 

If
an event of default occurs, the Indenture Trustee, at the written direction of the holders of at least 30% in principal amount
of the outstanding Notes, must declare the unpaid principal and all accrued but unpaid interest on the Notes to be immediately
due and payable unless Noteholders holding Notes representing a majority of the outstanding principal amount of Notes rescind
that direction in writing.

 

Amendment,
Supplement and Waiver

 

Except
as provided in the Indenture, the terms of the Indenture or the Notes then outstanding may be amended, supplemented or waived
with the consent of the holders of at least a majority in principal amount of the Notes then outstanding (which consent will be
presumed if a Noteholder does not object within 30 days of a request for consent), and any existing default or compliance with
any provision of the Indenture or the Notes may be waived with the affirmative consent of the holders of a majority in principal
amount of the then outstanding Notes.

 

Notwithstanding
the foregoing, an amendment or waiver will not be effective with respect to the Notes held by a Noteholder who has not consented
if such amendment or waiver:

 

	●	reduces
    the principal of, or changes the fixed maturity of, any Note;
	 	 
	●	reduces
    the rate of or changes the time for payment of interest, including default interest, on any Note;
	 	 
	●	reduces
    the premium payable upon the redemption of any Note or changes the time at which any Note may be redeemed as described in
    the Indenture and the Notes;
	 	 
	●	waives
    a default or event of default in the payment of principal or interest on the Notes, except for a rescission or withdrawal
    of acceleration of the Notes made by the holders of at least a majority in aggregate principal amount of the then outstanding
    Notes and a waiver of the payment default that resulted from such acceleration;
	 	 
	●	changes
    the currency of principal or interest payments on the Notes;
	 	 
	●	impairs
    the rights of Noteholders to receive any payments when due pursuant to the terms of the Indenture;
	 	 
	●	releases
    any guarantors of their obligations in connection with the Notes or releases any collateral that secures the obligations under
    the Notes;
	 	 
	●	modifies
    any “change of control offer” or “net proceeds offer” (as defined in the Indenture); 
	 	 
	●	causes
    the Notes or the Guarantor’s guaranty or any subsequent guarantors to become contractually subordinate to any other
    indebtedness;
	 	 
	●	reduces
    the percentage of the principal amount of outstanding Notes necessary to effectuate any amendments or waivers to the Indenture
    or the Notes; or
	 	 
	●	makes
    any change in the provisions of the Indenture relating to amendments or waivers or the rights of Noteholders to receive payments
    of principal of or interest on the Notes.

 

Notwithstanding
the foregoing, the following kinds of amendments or supplements to the Indenture may be effected by the Company and the Indenture
Trustee without the consent of any Noteholder:

 

	●	to
    cure any ambiguity, defect or inconsistency;
	 	 
	●	to
    provide for assumption of the Company’s obligations to the Noteholders in the event of a merger, consolidation or sale
    of all or substantially all of the Company’s assets;
	 	 
	●	to
    provide for additional uncertificated or certificated Notes;
	 	 
	●	to
    make any change that does not materially and adversely affect the legal rights under the Indenture of any Noteholder;
	 	 
	●	to
    comply with requirements of the SEC in order to comply with applicable federal or state laws or regulations; or
	 	 
	●	to
    comply with the rules or policies of a depositary of the Notes.

 

    	 

    	 

    

 

Rights
of Noteholders

 

The
Noteholders have limited rights to vote on our actions as set forth in the Indenture. In general, the Noteholders have the right
to vote on whether or not to approve some amendments to the Indenture. The Noteholders also have the right to direct some actions
that the Indenture Trustee takes if there is an event of default with respect to the Notes.

 

Subject
to certain exceptions, the holders of a majority in principal amount of the then outstanding Notes will have the right to direct
the time, method and place of conducting any proceeding for some of the remedies available, except as otherwise provided in the
Indenture. The Indenture Trustee may require reasonable indemnity, satisfactory to the Indenture Trustee, from Noteholders before
acting at their direction.

 

The
Indenture Trustee

 

General

 

The
duties of the Indenture Trustee include the following:

 

	●	confirm
    that the Notes have been duly executed by an authorized officer of the Company;
	 	 
	●	receive,
    possess, hold, preserve and maintain the collateral for the benefit of the Noteholders;
	 	 
	●	make,
    or cause to be made, all filings it deems required or necessary to preserve the liens created by the Indenture;
	 	 
	●	provide
    exception reports in the event there is any “defect” in the collateral;
	 	 
	●	transfer,
    exchange or replace all or any specific item included in the “collateral pool” as appropriate or necessary;
	 	 
	●	maintain
    a current register for the Notes for the purpose of registering the Notes and transfers and exchanges of Notes;
	 	 
	●	collect
    payments of interest and principal due and with respect to the Notes from the Company;
	 	 
	●	make
    payments of interest and principal due and payable with respect to the Notes to the registered holders thereof ; and
	 	 
	●	upon
    the occurrence of an Event of Default, exercise the rights and remedies of the Noteholders on their behalf.

 

Under
the terms of the Indenture, the Indenture Trustee is required to use the same degree of care with respect to the collateral that
a reasonable person would use with respect to its own property. Barring an Event of Default, the Indenture Trustee is not required
to service the mortgage loans included in the collateral or to make any determination regarding the quality of the collateral
or the security interest therein. Upon the occurrence of an Event of Default, the Indenture Trustee is responsible for preserving
the collateral, which may include in case of the mortgage loans, servicing the mortgage loans and/or disposing of the collateral
for the benefit of the Noteholders.

 

    	 

    	 

    

 

The
Indenture contains certain limitations on the rights of the Indenture Trustee, should it become one of the Company’s creditors,
to obtain payment of claims in certain cases, or to realize on certain property received in respect of any claim as security or
otherwise. The Indenture Trustee will be permitted to engage in other transactions with the Company or the Guarantor.

 

Subject
to certain exceptions, the holders of a majority in principal amount of the then outstanding Notes will have the right to direct
the time, method and place of conducting any proceeding for exercising any remedy available to the Indenture Trustee. The Indenture
provides that if an event of default specified in the Indenture shall occur and not be cured, the Indenture Trustee will be required,
in the exercise of its power, to use the degree of care of a reasonable person in the conduct of his own affairs. Subject to such
provisions, the Indenture Trustee will be under no obligation to exercise any of its rights or powers under the Indenture at the
request of any Noteholder, unless the Noteholder shall have offered to the Indenture Trustee security and indemnity satisfactory
to it against any loss, liability or expense.

 

Resignation
or Removal of the Indenture Trustee

 

The
Indenture Trustee may resign at any time or may be removed by the holders of a majority of the aggregate principal amount of the
outstanding Notes. In addition, we may remove the Indenture Trustee for certain failures in its duties, including the insolvency
of the Indenture Trustee. Nevertheless, no resignation or removal of the Indenture Trustee may become effective until a successor
has accepted the appointment as provided in the Indenture.

 

Reports
to the Indenture Trustee

 

We
will provide the Indenture Trustee with (i) a calculation date report by the 15th day of each calendar quarter containing a calculation
of the debt coverage ratio that includes a summary of all cash, mortgage receivables serving as collateral, as well as the Company’s
total outstanding indebtedness including outstanding principal balances, interest credited and paid, transfers made, any redemption
or repayment and interest rate paid; (ii) copies of the Guarantor’s unaudited quarterly consolidated financial statements,
no earlier than when the same become a matter of public record; (iii) copies of the Guarantor’s audited consolidated annual
financial statements no earlier than when the same becomes a matter of public record; and (iv) any additional information reasonably
requested by the Indenture Trustee.

 

Certain
Charges

 

The
Company and its servicing agents, if any, may assess service charges for changing the registration of any Note to reflect a change
in name of the holder, multiple changes in interest payment dates or transfers (whether by operation of law or otherwise) of a
Note by the holder to another person. The Indenture permits us to set off, against amounts otherwise payable under the Notes,
the amount of these charges.

 

Satisfaction
and Discharge of Indenture

 

The
Indenture shall cease to be of further effect upon the payment in full of all of the outstanding Notes and the delivery of an
officer’s certificate to the Indenture Trustee stating that the Company does not intend to issue additional Notes under
the Indenture or, with certain limitations, upon deposit with the Indenture Trustee of funds sufficient for the payment in full
of all of the outstanding Notes.atec-ex415_493.htm

Exhibit 4.15

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

The following description sets forth certain material terms and provisions of the securities of Alphatec Holdings, Inc. (the “Company”) that are registered under Section 12 of the Securities Exchange Act of 1934 (the “Exchange Act”). This description also summarizes relevant provisions of the Delaware General Corporation Law (the “DGCL”) applicable to such securities. The following description is a summary and does not purport to be complete. It is subject to, and qualified in its entirety by reference to, the applicable provisions of the DGCL and our Amended and Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”) and our Amended and Restated Bylaws, as amended (the “Bylaws”), each of which is incorporated by reference as an exhibit to the Annual Report on Form 10-K to which this Exhibit 4.19 is filed as an exhibit. We encourage you to read the Certificate of Incorporation and Bylaws and the applicable provisions of the DGCL for additional information.

The Company’s authorized capital stock consists of 220,000,000 shares, of which 200,000,000 shares are common stock, par value $0.0001 per share (“common stock”), and 20,000,000 shares are preferred stock, par value $0.0001 per share. By resolution of the Board of Directors (the “Board”), the Company may, without any further vote by its stockholders, issue shares of preferred stock. The Board may by resolution fix the voting rights, if any, designations, powers, preferences and the relative, participation, optional or other rights, if any, and the qualification, limitations or restrictions thereof, of any unissued series and/or class of preferred stock, and may fix the number of shares constituting such series and/or class, and may increase or decrease the number of shares of any such series and/or class (but not below the number of shares thereof then outstanding). The rights of the holders of common stock are subject to the rights and preferences of any series of preferred stock currently outstanding or that the Company may issue. 

The following description of our common stock and of certain provisions of Delaware law are summaries, do not purport to be complete and are subject to and qualified in their entirety by reference to our Certificate of Incorporation and Bylaws. Please also refer to the applicable provisions of the DGCL for additional information.

Market Listing

Our common stock trades on the Nasdaq Global Select Market under the symbol “ATEC.”

Dividends; Liquidation

The DGCL permits a corporation to declare and pay dividends upon its shares out of (i) surplus or, (ii) if there is no surplus, out of net profits for the fiscal year in which the dividend is declared and/or for the preceding fiscal year as long as the amount of capital of the corporation following the declaration and payment of the dividend is not less than the aggregate amount of the capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets. Subject to the preferences of any outstanding shares of preferred stock, holders of common stock have equal ratable rights to dividends (payable in cash, stock or property) out of funds legally available for that purpose, when, as and if dividends are declared by the Board. Holders of common stock are entitled to share ratably, as a single class, in all of the assets of the Company available for distribution to holders of shares of common stock upon the liquidation or dissolution of the Company or the winding up of the affairs of the Company, after payment of the Company’s liabilities and any amounts to holders of outstanding shares of preferred stock.

Voting Rights

Generally, holders of our common stock will vote together as a single class on every matter acted upon by the stockholders. Holders of common stock are entitled to one vote per share on all matters submitted to a vote of stockholders. Stockholders are not be entitled to cumulate votes in voting for directors. The holders of a majority in voting power of the outstanding shares of stock entitled to vote on a matter, represented in person or by proxy, will constitute a quorum at any meeting of stockholders. If a quorum is present, the affirmative vote of the majority of the votes cast on a matter will be the act of the stockholders, unless the vote of a minimum or other number or 

 

 

amount is provided for such matter by the DGCL, the Certificate of Incorporation or the Bylaws or the rules and regulations of any stock exchange or other regulatory body, in which case such minimum or other vote will be the required vote of stockholders on such matter. Except as otherwise provided by law, or the Certificate of Incorporation or by the resolution or resolutions adopted by the Board designating the rights, powers and preferences of any series and/or class of preferred stock, the holders of common stock have the exclusive right to vote for the election of directors and for all matters presented to the stockholders.

Absence of Other Rights.

The holders of common stock have no preferences or rights of conversion, exchange, pre-emption or other subscription rights. There are no redemption or sinking fund provisions applicable to the common stock. Stockholders do not have the right of cumulative voting in the election of directors.

Anti-Takeover Effects of our Certificate of Incorporation and Bylaws and of Delaware Law

Authorized Preferred Shares

Under the Certificate of Incorporation, the Board is authorized to issue 20,000,000 preferred shares. In each case, the Board may issue these preferred shares in one or more series and may establish the designations, preferences and rights, including voting rights, of each series. These preferred shares are available for issuance from time to time to any person for such consideration as the Board may determine without the requirement of further action by our stockholders, except as required by the Nasdaq Stock Market or other exchange on which Company shares are then listed. The Board may decide to issue such preferred stock for a variety of reasons including but not limited to the issuance in a public or private sale for cash as a means of obtaining additional capital for use in the Company’s business and operations, issuance as part or all of the consideration required to be paid for acquisitions of other business properties and issuance as a share dividend to equity holders. Depending on its terms, the issuance of preferred stock may or may not have a dilutive effect on the equity interest or voting power of the then current stockholders of the Company. Although our Board has no present intention to do so, authorized but unissued and undesignated preferred shares may also be issued as a defense to an attempted takeover.

Special Meetings of Stockholders

Limits on the rights of stockholders to call special meetings of stockholders could have an anti-takeover effect as a potential acquirer may wish to call a special meeting of stockholders for the purpose of considering the removal of directors or an acquisition offer. The Bylaws provide that only the Board can call special meetings of stockholders.

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