Document:

Document

Exhibit 4.4

Description of the Company’s Securities
Registered Pursuant to Section 12 
of the Securities Exchange Act of 1934

The following summary of the rights of The Middleby Corporation’s (the “Company”) Common Stock and Preferred Stock (each as defined below) does not purport to be complete. This description is based upon, and is qualified in its entirety by reference to, the Company’s Restated Certificate of Incorporation, as amended (the “Certificate”) and the Fourth Amended and Restated Bylaws (the “Bylaws”), each as filed with the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2021, and the applicable provisions of the Delaware General Corporation Law (“DGCL”). 

General 

The Company’s authorized capital stock consists of 2,000,000 shares of preferred stock, par value $0.01 per share (“Preferred Stock”) and 95,000,000 shares of common stock, par value $0.01 per share (“Common Stock”). 

As of March 1, 2021, 55,638,477 Common Stock shares were issued and outstanding. No Preferred Stock has been issued. 

Common Stock 

Dividends. Payment of dividends on Common Stock may be made at the discretion of the Company’s Board of Directors (the “Board”) out of legally available funds, subject to any preferential dividend rights of any then outstanding shares of Preferred Stock. 

Voting Rights. Holders of Common Stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders. With certain exceptions, a majority of votes cast at a duly called stockholder meeting at which a quorum is present shall decide all stockholder matters. Except with respect to vacancies and newly created directorships, the Bylaws provide that the Board’s directors are elected by the vote of a majority of the votes cast with respect to that director (meaning the number of shares voted “for” a director must exceed the number of shares voted “against” that director) at any meeting for the election of directors at which a quorum is present. However, if there are more nominees for election than the number of directors to be elected, directors will be elected by a plurality of votes cast on the election of directors. The Certificate does not provide for cumulative voting. 

Other Rights. In the event of the Company’s liquidation, dissolution or winding up, the holders of Common Stock are entitled to share ratably in all assets remaining after satisfaction of liabilities and the liquidation preference of any then outstanding shares of Preferred Stock. Holders of Common Stock have no preemptive rights and no right to convert their common stock into any other securities. There are no redemption or sinking fund provisions applicable to the Common Stock. The rights, preferences and privileges of holders of Common Stock are subject to, and could be adversely affected by, the rights of holders of shares of any series of Preferred Stock which the Company may designate and issue in the future without further stockholder approval. 

Listing. The Common Stock is listed on The NASDAQ Global Select Market under the symbol “MIDD.” 

Preferred Stock 

The Board is expressly authorized to provide for the issuance from time to time, without further stockholder approval, of up to an aggregate of 2,000,000 shares of Preferred Stock in one or more classes or series, and to fix each such class or series such voting powers, fully or limited, or no voting powers, and such designations, preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions of the shares of each class or series, including the dividend rights, dividend rates, conversion rights, voting rights, terms of redemption, redemption price or prices, liquidation preferences and the number of shares constituting any series or designations of any series.

Anti-Takeover Provisions in the Certificate; Bylaws and DGCL

Certain provisions of the Certificate, Bylaws and the DGCL could have the effect of delaying, deferring or discouraging another party from acquiring the Company. These provisions encourage persons considering unsolicited tender offers or other unilateral takeover proposals to negotiate with the Board rather than pursue non-negotiated takeover attempts. These provisions include the below summarized items. 

DGCL Section 203. The Company is subject to the provisions of Section 203 of the DGCL (“Section 203”). In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years following the date of the transaction in which such person becomes 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 662/3% of the outstanding voting stock which is not owned by the interested stockholder. 
In general, Section 203 defines an interested stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the Company and any entity or person affiliated with or controlling or controlled by the entity or person. 

Special Stockholder Approval for Certain Transactions. Pursuant to the Certificate, no agreement or plan providing for the dissolution, liquidation, merger or consolidation of the Company or the sale, lease, or transfer of substantially all of its assets, shall be effective, unless approved by the affirmative vote of not less than two-thirds of the votes of all the shares of stock outstanding and entitled to vote thereon. 

Board Composition and Powers. The Bylaws provide that a majority of the Board may remove any officer or member of any Board committee with or without cause. The Board has the power to fix the number of directors by resolution, subject to the Certificate’s requirement that the Board be not fewer than three nor more than 11. Vacancies and newly created directorships resulting from any increase in the authorized number of directors may be filled by a majority of the directors then in office, even though less than a quorum, and the directors chosen in this manner will hold office until a successor is chosen and qualified. 

Advance Notice Requirements for Stockholder Proposals and Director Nominations. The Bylaws provide that in order for a stockholder to make a nomination or propose business at an annual meeting of stockholders, a stockholder’s notice must be received at the principal executive offices of the Company not less than 90 days nor more than 120 days prior to the anniversary date of the immediately preceding annual meeting of stockholders; provided, however, that if the annual meeting is called for a date that is not within 30 days before or after such anniversary date, notice by the stockholder in order to be timely must be so received not later than the close of business on the tenth day following the day on which such notice of the date of the annual meeting was mailed or public disclosure of the date of the annual meeting was made, whichever occurs first. 

Special Meetings of Stockholders. The Bylaws prohibit the ability of stockholders to call special meetings of stockholders. Special meetings of stockholders may be called for any purpose at any time upon the call of only the Chairman of the Board, the President or a majority of the Board. 

Undesignated Preferred Stock. Pursuant to the Certificate, the Company may issue Preferred Stock in ways which may delay, defer or prevent a change of control of the Company without further action by the Company’s stockholders.Exhibit
10.1

 

Binding
Term Sheet

 

This
Binding Term Sheet (the “Term Sheet”) constitutes a commitment by the Parties hereto to negotiate in good faith and
to enter into one or more definitive agreements as set forth herein. The terms and conditions of the potential transaction described
below are not limited to those set forth herein. Matters that are not covered by the provisions hereof are subject to the approval
and mutual agreement of the parties.

 

	Effective
    Date:	February
    25, 2021
	 	 
	Parties:	Motorsport
    Games Inc. (“MSG”) and Luminis International BV (“Luminis”), Studio397 BV (“S397” or the
    “Target Company”)
	 	 
	Subject
    Matter:	MSG
    desires to purchase from Luminis one hundred percent (100%) of the shares of S397 (the “Shares”) (including all
    related assets) subject to the terms to be determined as stated herein and further negotiated, and Luminis agrees to sell
    the Shares for such purchase price and in accordance with such terms (the “Transaction”). The Parties intend to
    close this transaction on or before March 15, 2021 or such other date as mutually agreed by the parties in writing.
	 	 
	Definitive
    Agreements:	The
    Transaction will be subject to negotiation of definitive documentation customary for a transaction of this nature (“Definitive
    Documents”), including but not limited to a Share Purchase Agreement. The Definitive Documents will contain representations,
    warranties and covenants that are customary for transactions of this nature. The Definitive Documents will require that the
    consummation of the Transaction will be subject to the satisfaction of various conditions required prior to closing as are
    customary for transactions of this nature.

 

	 	I.	Consideration
    and Payment Terms:

 

	 	a.	MSG
    to purchase from Luminis all of the outstanding shares in S397 for a total purchase price of Sixteen Million United States
    Dollars ($16,000,000) (the “Purchase Price”).
	 	b.	MSG
    to pay the Purchase Price in two installments, as follows:
	 	 	i.	Eighty
    percent (80%), equal to Twelve Million Eight Hundred Thousand United States Dollars ($12,800,000), of the Purchase Price to
    be paid at closing (the “Initial Payment”).
	 	 	ii.	Twenty
    percent (20%), equal to Three Million Two Hundred Thousand United States Dollars ($3,200,000) of the Purchase Price to be
    paid on the first anniversary of the closing date (the “Instalment Payment”).
	 	c.	On
    closing, MSG will grant a right of pledge on the number of shares making up twenty percent (20%) of the total outstanding
    shares in the Company (the “Pledged Shares”) (which pledge shall be first in rank) to secure the Instalment Payment,
    by means of the execution of a deed of pledge. Voting rights under the Pledged Shares will be transferred to Seller if and
    as long as Buyer does not pay the Instalment Payment when it comes due, subject to a reasonable cure period to be defined
    in the SPA.

 

	 	II.	Conditions
    to Closing: Execution of Definitive Agreements relating to the Transaction is subject to certain conditions precedent
    including: (i) the satisfaction of MSG, in its sole discretion, of a due diligence investigation into the Target Company,
    its operations and its assets, including but not limited to technical, intellectual property, financial, accounting and tax,
    and legal due diligence; (ii) the approval of MSG’s Board of Directors; and (iii) satisfaction of customary conditions
    to closing, including without limitation receipt of necessary government or third-party approvals. Additionally, the Definitive
    Documents shall be negotiated and include customary representations and warranties for a transaction of this nature, including,
    without limitation, regarding the ownership, free of all encumbrances, of the copyrights and other applicable rights in and
    to, or otherwise associated the rFactor2 (“rF2”) software (as related to racing simulation), the rF2 content and
    the rF2 brand.

 

    	1

    	 

    

 

	 	III.	Governing
    Law: This Term Sheet shall be governed by the laws of the State of Florida, without regard to the conflicts of law principles
    thereof. The Share Purchase Agreement shall be subject to the laws of the Netherlands and the exclusive jurisdiction of the
    Dutch courts.
	 	 	 
	 	IV.	Expenses:
    Each of the Parties will be responsible for its own fees, costs and expenses (including any fees and expenses of their
    legal or accounting representatives, bankers or brokers) incurred in connection with this Term Sheet, the discussions, the
    Definitive Documents or otherwise the proposed Transaction.
	 	 	 
	 	V.	Exclusivity:
    As of the date of execution of this Binding Term Sheet and until 31st of March 2021, Luminis agrees to enter
    an “Exclusivity Period” with respect to the Target Company and its assets. The Exclusivity Period shall continue
    through such date that the Definitive Documents are executed and the transaction contemplated in this Term Sheet and the Definitive
    Documents is completed or 31st of March 2021, whichever comes first. During this period Luminis shall not, and
    shall cause each of its directors, officers, employees, stockholders, affiliates, agents, advisors and other representatives
    not to, directly or indirectly, solicit, initiate, or encourage the submission of, or respond to, any expression of interest,
    inquiry, proposal or offer from any person or entity relating to the acquisition of any material part of the capital stock
    or assets of the Target Company or the merger, joint venture, exclusive license, liquidation, recapitalization, reorganization,
    or any similar transaction involving the Target Company or its assets, except as approved by MSG in writing in advance. Luminis
    agrees to notify MSG immediately if any person or entity makes any proposal, offer, inquiry, or contact with respect to any
    of the foregoing, and the details of such proposal, offer, inquiry or contact including the identity of the potential buyer
    and/or investor and terms of such proposal.
	 	 	 
	 	VI.	Disclosure:
    MSG shall have the right to disclose this Binding Term Sheet and the contents hereof in (i) MSG’s current report
    on Form 8-K filed with the U.S. Securities and Exchange Commission (the “SEC”) and other required SEC filings,
    such as Form 10-K annual reports and Form 10-Q quarterly reports, and (ii) MSG’s press release about the Binding Term
    Sheet and the transactions contemplated by the Binding Term Sheet.
	 	 	 
	 	VII.	Binding
    Agreement: The Parties hereto acknowledge the binding nature of this Term Sheet and agree to be bound by the obligations
    set forth herein from the Effective Date. This Term Sheet, including but not limited to the obligations of confidentiality
    and exclusivity, shall remain in effect until June 30, 2021 (the “Drop Dead Date”). If the Definitive Documents
    have not been executed by the Drop Dead Date, then this Term Sheet shall be considered void and the Parties shall each be
    released of their obligations set forth herein. Notwithstanding the foregoing, the Parties may extend the Drop Date at any
    time by mutual agreement in writing.

 

Signed:

 

	Luminis
    International BV	 	Motorsport
    Games Inc.
	 	 	 
	/s/
    H.C. Bossenbroek	 	/s/
    Dmitry Kozko
	Title:	CEO	 	Title:	CEO
	Name:	H.C.
    Bossenbroek	 	Name:	Dmitry
    Kozko\
	Date:	February
    24, 2021	 	Date:	02/25/2021

 

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