Document:

Exhibit 4.2 

 

Description
of Capital Stock of Iradimed Corporation

 

The following
is a description of the capital stock of Iradimed Corporation. Our common stock, par value $0.0001 per share, is registered
under Section 12 of the Securities Exchange Act of 1934, as amended; while our preferred stock, par value $0.0001 per share,
is not so registered. This description does not describe every aspect of our capital stock and is subject to, and qualified
in its entirety by reference to, the provisions of our Amended and Restated Certificate of Incorporation and our Amended and Restated Bylaws, each
as currently in effect, each of which is incorporated by reference as an exhibit to our Annual Report on Form 10-K for
the fiscal year ended December 31, 2019, to which this Description of Capital Stock is filed as an exhibit.  References to
 “we,” “our,” and “us” refer to Iradimed Corporation. 

 

Authorized Capital Stock

 

Our authorized
capital stock consists of 31,500,000 shares of common stock, par value $0.0001 per share, and 3,500,000 shares of preferred stock,
of which 800,000 shares of preferred stock have been designated as Series A preferred stock, par value $0.0001 per share.

 

Common Stock

 

Our common stock
is traded on the Nasdaq Capital Market under the trading symbol “IRMD.” The transfer agent and registrar for our common
stock is EQ by Equiniti, which acquired our former transfer agent, Corporate Stock Transfer, Inc., in November 2019.

 

The following summarizes
the rights of holders of our common stock:

Voting

 

The holders of our common
stock are entitled to one vote per share. The number of authorized shares of common stock may be increased or decreased (but not
below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the voting power of
our capital stock entitled to vote, irrespective of the provisions of Section 242(b)(2) of the Delaware General Corporation Law
(“DGCL”).

 

Dividends

 

Subject to preferences that
may be applicable to the holders of outstanding shares of preferred stock and subject to applicable law, dividends may be declared
and paid on of our common stock when and as determined by our board of directors out of assets legally available for dividends.

 

As a Delaware corporation,
we are subject to certain restrictions on dividends under the DGCL. Generally, a Delaware corporation may only pay dividends either
out of “surplus” or out of the current or the immediately preceding year’s net profits. Surplus is defined as
the excess, if any, at any given time, of the total assets of a corporation over its total liabilities and statutory capital. The
value of a corporation’s assets can be measured in a number of ways and may not necessarily equal their book value.

 

Liquidation Rights

 

Upon our voluntary or involuntary
liquidation, dissolution or winding up, after satisfaction of all our liabilities and the payment of any liquidation preference
of any outstanding preferred stock, the holders of shares of common stock will be entitled to share in all of our assets legally
remaining for distribution after payment of all debt and other liabilities, subject to preferences that may be applicable to the
holders of outstanding shares of preferred stock.

 

    	 	1	 

     

    

 

Redemption Rights

 

There are no redemption
or sinking fund provisions applicable to our common stock.

 

Preemptive Rights and Conversion Rights

 

There are no preemptive
or conversion rights applicable to our common stock.

 

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

 

Delaware Anti-Takeover Law

 

We are subject to Section
203 of the DGCL (“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 following the time that such stockholder
became an interested stockholder, unless:

 

	 	•	prior to such time 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 voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (i) by 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.

 

In general, Section 203
defines a business combination to include:

	 	 	 
	 	•	any merger or consolidation involving the corporation and the interested stockholder;
	 		 
	 	•	any sale, transfer, pledge or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;  
	 	 	 
	 	•	subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;  
	 	 	 
	 	•	subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or  

 

    	 	2	 

     

    

 

	 	•	the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

 

In general, Section 203
defines an interested stockholder as any entity (other than the corporation and any direct or indirect majority-owned subsidiary
of the corporation) or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity
or person affiliated with, associated with or controlling or controlled by such entity or person.

 

Certificate of Incorporation and Bylaws

 

The following provisions
of our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws may make a change in control of our company
more difficult and could delay, defer or prevent a tender offer or other takeover attempt that a stockholder might consider to
be in its best interest, including takeover attempts that might result in the payment of a premium to stockholders over the market
price for their shares. These provisions also may promote the continuity of our management by making it more difficult for a person
to remove or change the incumbent members of our board of directors.

 

Authorized but Unissued
Shares; Undesignated Preferred Stock. The authorized but unissued shares of our common stock will be available for future issuance
without stockholder approval, subject to applicable law and the Nasdaq Marketplace Rules. These additional shares may be used for
a variety of corporate purposes, including future public offerings to raise additional capital, acquisitions, and employee benefit
plans. In addition, our board of directors may authorize, without stockholder approval, the issuance of undesignated preferred
stock with voting rights or other rights or preferences designated from time to time by our board of directors (including the right
to approve an acquisition or other change in our control). The existence of authorized but unissued shares of common stock or preferred
stock may enable our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of
a merger, tender offer, proxy contest or otherwise.

 

Election and Removal
of Directors. Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws contain provisions that
establish specific procedures for appointing and removing members of our board of directors. Under our Amended and Restated Certificate
of Incorporation and Amended and Restated Bylaws, vacancies and newly created directorships on our board of directors may be filled
by our stockholders or a majority of the directors then serving on the board of directors.

 

No Cumulative Voting.
Stockholders do not have the right to cumulate votes in the election of directors under our Amended and Restated Certificate of
Incorporation (therefore allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors
to elect all of the directors standing for election, if they should so choose).

 

Special Meetings of Stockholders.
Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws provide that special meetings of our stockholders
may only be called by the Chair of the board, our Chief Executive Officer or by our board of directors pursuant to a resolution
adopted by a majority of the total number of authorized directors, whether or not there exist any vacancies in previously authorized
directorships.

 

Advance Notice Procedures
for Director Nominations. Our Amended and Restated Bylaws establish advance notice procedures for stockholders seeking to nominate
candidates for election as directors at an annual or special meeting of stockholders. Although our Amended and Restated Bylaws
do not give the board of directors the power to approve or disapprove stockholder nominations of candidates to be elected at an
annual meeting, our Amended and Restated Bylaws may have the effect of precluding the conduct of certain business at a meeting
if the proper procedures are not followed or may discourage or deter a potential acquiror from conducting a solicitation of proxies
to elect its own slate of directors or otherwise attempting to obtain control of us.

 

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Action by Written Consent.
Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws provide that any action required or permitted
to be taken by the stockholders must be effected at a duly called annual or special meeting of stockholders and may not be effected
by any consent in writing in lieu of a meeting of such stockholders, subject to the rights of the holders of any series of preferred
stock.

 

Amending Our Certificate
of Incorporation and Bylaws. Our Amended and Restated Certificate of Incorporation may be amended by the affirmative vote of
the holders of at least majority of the voting power of our then-outstanding capital stock entitled to vote thereon. Our Amended
and Restated Bylaws may be amended by the affirmative vote of a majority of our board of directors or by the affirmative vote of
the holders of at least majority of the voting power of our then-outstanding capital stock entitled to vote thereon.

 

Exclusive Jurisdiction.
Our Amended and Restated Certificate of Incorporation provides that, unless we consent in writing to the selection of an alternative
forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for any derivative action or proceeding
brought on our behalf, any action asserting a claim of breach of duty by any of our current or former directors or officers, or
our stockholders in such capacity, any action asserting a claim arising pursuant to the DGCL, or any action asserting a claim governed
by the internal affairs doctrine. In addition, our Amended and Restated Certificate of Incorporation provides that, unless we consent
in writing to the selection of an alternative forum, the U.S. District Court for the District of Delaware shall be the exclusive
forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. However, in light of the
decision issued by the Court of Chancery in Sciabacucchi v. Salzberg, C.A. No. 2017-0931-JTL, invalidating provisions in the certificates
of incorporation of Delaware corporations that purport to limit to federal court the forum in which a stockholder may bring a claim
under the Securities Act, we do not currently intend to enforce the foregoing federal forum selection provision unless the Sciabacucchi decision
is appealed and the Delaware Supreme Court reverses the Chancery Court’s decision. If the decision is not appealed or if
the Delaware Supreme Court affirms the Chancery Court’s decision, then we will seek approval by our stockholders to amend
our Amended and Restated Certificate of Incorporation at our next regularly scheduled annual meeting of stockholders to remove
the federal forum selection provision.

 

    	 	4Exhibit_43

		

			Exhibit 4.3

		

		
			DESCRIPTION OF THE REGISTRANT’S SECURITIES
		

		
			REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
		

		
			 
		

		
			The following is a brief description of the common stock, $0.0001 par value per share (the “Common Stock”), of MobileIron, Inc. (the “Company”), which is the only security of the Company registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.
		

		
			 
		

		
			Description of Common Stock
		

		
			 
		

		
			General
		

		
			 
		

		
			The following summary of the material features of our Common Stock and certain provisions of Delaware law do not purport to be complete and is subject to, and qualified in its entirety by, the provisions of our Amended and Restated Certificate of Incorporation, our Amended and Restated Bylaws, the Delaware General Corporation Law (“DGCL”) and other applicable law. Copies of our Amended and Restated Certificate of Incorporation and our Amended and Restated Bylaws have been filed with the Securities and Exchange Commission (the “SEC”) as Exhibit 3.1 and Exhibit 3.2, respectively, to our Annual Report on Form 10-K. All of our outstanding Common Stock are validly issued, fully paid and non-assessable.  Our Common Stock is listed on the Nasdaq Global Select Market and trades under the symbol “MOBL.”
		

		
			Common Stock 
		

		
			Dividend rights
		

		
			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.    We are subject to certain limitations regarding the payment of dividends, such as restricted distributions, contained in our revolving line of credit.
		

		
			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. Pursuant to our Amended and Restated Certificate of Incorporation and our Amended and Restated Bylaws, our board is divided into three classes of directors. Directors of each class serve for three-year terms and each year one class of directors are be elected by the stockholders. Under our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws, our stockholders will 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 at that annual meeting, if they should so choose.    
		

		
			Liquidation 
		

		
			In the event of our liquidation, dissolution or winding up, holders of 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.  
		

		
			No preemptive or similar rights 
		

		
			Holders of Common Stock have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable to the Common Stock. 
		

		
			Limitation on Rights of Holders of Common Stock – Preferred 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.
		

		
			

		 

		

		
			Our Amended and Restated Certificate of Incorporation authorizes our Board of Directors, without further stockholder action, to provide for the issuance of up to 10,000,000 shares of preferred stock. Our board of directors may, without further action by our stockholders, fix the rights, preferences, privileges and restrictions of up to an aggregate of shares of preferred stock in one or more series and authorize their issuance. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of our Common Stock. The issuance of our preferred stock could adversely affect the voting power of holders of our Common Stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of preferred stock could have the effect of delaying, deferring or preventing a change of control or other corporate action. 
		

		
			Certain Anti-Takeover Matters 
		

		
			Amended and Restated Certificate of Incorporation and Amended and Restated Bylaw Provisions 
		

		
			Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of our board of directors and in the policies formulated by our board of directors and to discourage an unsolicited takeover of our company if our board of directors determines that such a takeover is not in the best interests of our company and stockholders. However, these provisions could have the effect of discouraging certain attempts to acquire us or remove incumbent management even if some or a majority of our stockholders deemed such an attempt to be in their best interests, including those attempts that might result in a premium over the market price for the shares of our Common Stock held by stockholders. 
		

		
			Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws provide that our board of directors is classified into three classes of directors. A third party may be discouraged from making a tender offer or otherwise attempting to obtain control of us as it is more difficult and time consuming for stockholders to replace a majority of the directors on a classified board of directors
		

		
			Our Amended and Restated Bylaws establish advance notice procedures with regard to stockholder proposals and the nomination, other than by or at the direction of the board of directors or a committee thereof, of candidates for election as directors. We may reject a stockholder proposal or nomination that is not made in accordance with such procedures. In addition, our Amended and Restated Bylaws provide that: 
		

			
	
			
				 ·
			

			
	
			
			special meetings of the stockholders of the Company may be called, for any purpose as is a proper matter for stockholder action under Delaware law, by only (i) the Chairperson of the board of directors, (ii) the Chief Executive Officer, or (iii) the Board of Directors pursuant to a resolution adopted by a majority of the total number of authorized directors (whether or not there exist any vacancies in previously authorized directorships at the time any such resolution is presented to the Board of Directors for adoption);

			
	
			
				 ·
			

			
	
			
			a director may not be removed from office without cause unless by the vote of the holders of 66 2/3% or more of the outstanding shares of our Common Stock entitled to vote; and

			
	
			
				 ·
			

			
	
			
			our Amended and Restated Bylaws may be altered, amended or repealed at any regular meeting of the stockholders (or at any special meeting thereof duly called for such purpose) by the affirmative vote of holders of at least 66 2/3% of our entire capital stock that is issued, outstanding and entitled to vote.

		
			Section 203 of the Delaware General Corporation Law 
		

		
			We are subject to the provisions of Section 203 of the DGCL. Under Section 203, we would generally be prohibited from engaging in any business combination with any interested stockholder for a period of three years following the time that this stockholder became an interested stockholder unless: 
		

			
	
			
				 ·
			

			
	
			
			prior to this time, 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 consummation of the transaction that resulted in the stockholder’s 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 shares owned by persons who are directors and also officers, and by 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 that is not owned by the interested stockholder.

		
			Under Section 203, a “business combination” includes: 
		

			
	
			
				 ·
			

			
	
			
			any merger or consolidation involving the corporation and the interested stockholder;

			
	
			
				 ·
			

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

			
	
			
				 ·
			

			
	
			
			any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder, subject to limited exceptions; 

			
	
			
				 ·
			

			
	
			
			any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of 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 provided by or through the corporation

		
			 In general, Section 203 defines an interested stockholder as an entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by such entity or person. 
		

		
			Limitation of Liability and Indemnification Matters 
		

		
			Article VI of our Amended and Restated Certificate of Incorporation and Article XI of our Amended and Restated Bylaws provide for indemnification of our directors, officers, employees and other agents to the maximum extent permitted by applicable law. We also have entered into indemnification agreements with our executive officers and directors and provide indemnity insurance pursuant to which directors and officers are indemnified or insured against liability or loss under certain circumstances which may include liability or related loss under the Securities Act and the Exchange Act.

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