Document:

skyw_Ex4_2

		
			Exhibit 4.2
		

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

		
			SkyWest, Inc. (“we,” “us” or “our”) has one class of securities registered under Section 12 of the Securities Exchange Act, as amended: our common stock.
		

		
			Description of Common Stock
		

		
			The following is a summary of the general terms of our common stock. This description is not complete and is subject to, and qualified in its entirety by reference to, our Restated Articles of Incorporation (“Restated Articles”) and Amended and Restated Bylaws (“Bylaws”), copies of which are exhibits to this Annual Report on Form 10-K.
		

		
			General
		

		
			As of December 31, 2019, our authorized capital stock consisted of 120,000,000 shares of common stock, no par value, and 5,000,000 shares of preferred stock, no par value.
		

		
			Listing
		

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

		
			Voting Rights
		

		
			Holders of our common stock are entitled to one vote per share on all matters that shareholders may vote on at all meetings of our shareholders. The holders of our common stock do not have cumulative voting rights.
		

		
			Dividends
		

		
			Subject to the rights of the holders of any outstanding shares of our preferred stock, each holder of our common stock has equal ratable rights to dividends from funds legally available therefor, if, as and when declared by our board of directors. The declaration and payment of all dividends, however, is subject to the discretion of our board of directors.
		

		
			Liquidation Rights
		

		
			In the event of our liquidation or dissolution or the winding up of our affairs, the holders of our common stock are entitled to share ratably in all assets remaining after payment of liabilities and amounts, if any, due to holders of our preferred stock.
		

		
			Other Rights
		

		
			The holders of our common stock do not have preemptive, subscription or conversion rights, and there are no redemption or sinking fund provisions applicable thereto.
		

		
			Fully Paid
		

		
			All the outstanding shares of our common stock are fully paid and nonassessable.
		

		
			Anti-Takeover Effects of Utah Law and the Restated Articles and Bylaws
		

		
			Utah Control Shares Acquisitions Act
		

		
			
		

		
			

		 

		

		
			The Utah Control Shares Acquisitions Act (the “Control Shares Act”) provides that any person or entity that acquires “control shares” of an “issuing public corporation” in a “control share acquisition” is denied voting rights with respect to the acquired shares, unless a majority of the disinterested shareholders of the issuing public corporation elects to restore such voting rights. The Control Shares Act provides that a person or entity acquires “control shares” whenever it acquires shares that, but for the operation for the Control Shares Act, would bring its voting power following such acquisition within any of the following three ranges of all voting power of the issuing public corporation: (i) 1/5 or more but less than  1/3; (ii) 1/3 or more but less than a majority; or (iii) a majority or more. An “issuing public corporation” is any Utah corporation that (a) has 100 or more shareholders, (b) has its principal place of business, principal office or substantial assets within the State of Utah and (c) has more than 10% of its shareholders resident in the State of Utah, more than 10% of its shares owned by Utah residents, or 10,000 shareholders resident in the State of Utah. A “control share acquisition” is generally defined as the direct or indirect acquisition (including through a series of acquisitions) of either ownership or voting power associated with issued and outstanding control shares.
		

		
			Under the Control Shares Act, a person or entity that acquires control shares pursuant to a control share acquisition acquires voting rights with respect to those shares only to the extent granted by resolution approved by each voting group entitled to vote separately on the proposal by a majority of all the votes entitled to be cast by that group, excluding all interested shares. The acquiring person may file an “acquiring person statement” with the issuing public corporation setting forth the number of shares of the issuing public corporation owned (directly or indirectly) by the acquiring person and each other member of the group and certain other specified information. Upon delivering the statement together with an undertaking to pay the issuing public corporation’s expenses of a special shareholders’ meeting, the issuing public corporation is required to call a special shareholders’ meeting for the purpose of considering the voting rights to be accorded the shares acquired or to be acquired in the control shares acquisition. If no request for a special meeting is made, the voting rights to be accorded the control shares are to be presented at the issuing public corporation’s next special or annual meeting of shareholders. If either (i) the acquiring person does not file an acquiring person statement with the issuing public corporation or (ii) the shareholders do not vote to restore voting rights to the control shares, the issuing public corporation may, if its articles of incorporation or bylaws so provide, redeem the control shares from the acquiring person at fair market value. Our Restated Articles and Bylaws do not currently provide for such a redemption right. Unless otherwise provided in the articles of incorporation or bylaws of an issuing public corporation, all shareholders are entitled to dissenters’ rights if the control shares are accorded full voting rights and the acquiring person has obtained majority or more control shares. Our Restated Articles and Bylaws do not currently deny such dissenters’ rights.
		

		
			The directors or shareholders of a corporation may elect to exempt the stock of the corporation from the provisions of the Control Shares Act through adoption of a provision to that effect in the corporation’s articles of incorporation or bylaws. To be effective, such an exemption must be adopted prior to the control shares acquisition. We have not yet taken any such action.
		

		
			The provisions of the Control Shares Act may discourage individuals or entities interested in acquiring a significant interest in or control of us.
		

		
			Undesignated Preferred Stock
		

		
			The ability of our board of directors, without action by the shareholders, to issue up to 5,000,000 shares of undesignated preferred stock with preferences as designated by our board of directors could impede the success of any attempt to change control of us.
		

		
			Shareholder Meetings
		

		
			The Bylaws provide that a special meeting of shareholders may be called only by our chief executive officer, president or board of directors, or by the holders of not less than one-tenth (1/10) of all of the shares entitled to vote on any issue to be considered at the proposed special meeting .
		

		
			Requirements for Advance Notification of Shareholder Nominations and Proposals
		

		
			
		

		
			

		 

		

		
			The Bylaws establish advance notice procedures with respect to shareholder proposals to be brought before a shareholder meeting and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or the chairman of the board of directors.
		

		
			Shareholders Not Entitled to Cumulative Voting
		

		
			The Restated Articles do not permit shareholders to cumulate their votes in the election of directors. Accordingly, the holders of a majority of the outstanding shares of our common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they choose, other than any directors that holders of our preferred stock may be entitled to elect.
		

		
			Transfer Agent and Registrar
		

		
			The transfer agent and registrar for our common stock is Zions First National Bank, N.A., Salt Lake City, Utah.Exhibit

Exhibit 10.1

Form of Executive Employment Agreement Amendment (Named Executive Officers)
NANOSTRING TECHNOLOGIES, INC.
AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT
This Amendment to Executive Employment Agreement (this “Amendment”) is made by and between [NAME] (“Executive”) and NanoString Technologies, Inc., a Delaware corporation (the “Company” and together with Executive, the “Parties”) on the dates set forth below.
WHEREAS, the Parties previously entered into an employment agreement effective [DATE][, as amended]1  (the “Employment Agreement”);
WHEREAS, the Company and Executive desire to amend certain provisions of the Employment Agreement related to severance benefits [and potential parachute payments]2, as set forth below.
NOW, THEREFORE, for good and valuable consideration, the Parties agree that the Agreement is hereby amended as follows:
1.The Employment Agreement is hereby amended as follows:
A.The semicolon in the first sentence of Section [__]3 is replaced by the following:
“and if Executive elects continuation coverage pursuant to COBRA (as defined below) within the time period prescribed pursuant to COBRA for Executive and Executive’s eligible dependents, the Company will reimburse Executive for the premiums necessary to continue group health insurance benefits for Executive and Executive’s eligible dependents for a period of [___]4 months, except that the right to future COBRA payments shall terminate the date upon which Executive ceases to be eligible for coverage under COBRA;”
B.[[For R. Bradley Gray only: Section 13 is hereby replaced in its entirety as follows:] [For Joseph Beechem and David Ghesquiere: The following is hereby added to the Employment Agreement as Section [___]5:]
“Limitation on Payments. In the event that the benefits provided for in this Agreement or otherwise payable to Executive (x) constitute “parachute payments” within the meaning of Section 280G of the Code and (y) but for this Section would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s benefits will be either (i) delivered in full, or (ii) delivered as to such lesser extent which would result in no portion of such benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable 
	
						
	 	 
	 
	 
	 
	 

	 	1 Included for R. Bradley Gray, Joseph Beechem, and David Ghesquiere.

	 	2 Included R. Bradley Gray, Joseph Beechem, and David Ghesquiere.

	 	3 To be filled in as follows:  “8(a)” for R. Bradley Gray; “7(b)” for K. Thomas Bailey; “5(a)” for Joseph Beechem and David Ghesquiere; and “6(b)” for J. Chad Brown.

	 
	 	4  To be filled in as follows:  : “twelve (12)” for R. Bradley Gray, and “six (6)” for K. Thomas Bailey, Joseph Beechem, J. Chad Brown, and David Ghesquiere.

	 
	 	5 To be filled in as follows:  : “19” for Joseph Beechem and “20” for David Ghesquiere.

federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code. If a reduction in amounts to be paid must be made, reduction shall occur in the following order: first, reduction of cash payments, which shall occur in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event triggering such excise tax will be the first cash payment to be reduced; second, cancellation of accelerated vesting of equity awards, which shall occur in the reverse order of the date of grant for such stock awards (i.e., the vesting of the most recently granted stock awards will be reduced first); and third, reduction of employee benefits, which shall occur in reverse chronological order such that the benefit owed on the latest date following the occurrence of the event triggering such excise tax will be the first benefit to be reduced. If two or more equity awards are granted on the same date, each award will be reduced on a pro-rata basis. In no event shall Executive have any discretion with respect to the ordering of payment reductions. Unless the Company and Executive otherwise agree in writing, any determination required under this Section will be made in writing by a well-recognized independent public accounting firm chosen by the Company (the “Accountants”), whose determination will be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this Section, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section. The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section.”
2.Full Force and Effect. To the extent not expressly amended hereby, the Agreement shall remain in full force and effect.
3.Entire Agreement. This Amendment and the Agreement (and any other documents referenced therein) constitute the full and entire understanding and agreement between the Parties with regard to the subjects hereof and thereof.
4.Successors and Assigns. This Amendment and the rights and obligations of the parties hereunder shall inure to the benefit of, and be binding upon, their respective successors, assigns, and legal representatives.
5.Governing Law. This Amendment will be governed by the laws of the State of Washington (with the exception of its conflict of laws provisions).
(signature page follows)

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IN WITNESS WHEREOF, each of the Parties has executed this Amendment as of the date set forth below.
	
					
	EXECUTIVE
	 
	NANOSTRING TECHNOLOGIES, INC.

	 
	 
	 
	 
	 

	By:
	 
	 
	By:
	 

	 
	 
	 
	 
	 

	Name:
	 
	 
	Name:
	 

	 
	 
	 
	 
	 

	Date:
	 
	 
	Title:
	 

	 
	 
	 
	 
	 

	 
	 
	 
	Date:
	 

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