Document:

Exhibit 10.1

 

Print
Name of Investor:_________________________

 

SUBSCRIPTION
AGREEMENT

 

This
Subscription Agreement (“Subscription Agreement”) is being used by Capitol Investment Corp. IV, currently a Cayman
Islands company (the “Company”), for a private placement of shares of common stock of the Company, par value $0.0001
per share (the “Shares”), on the terms and subject to the conditions contained in this Subscription Agreement.

 

The
above-named investor (“Investor”) hereby agrees as follows:

 

1.
Subscription for Securities. Investor hereby subscribes for and agrees to purchase ________ Shares (the “Purchased
Shares”) at a purchase price of $10.00 per share, subject to the terms and conditions set forth in this Subscription Agreement.

 

2.
Offering; Conversion of Company to Delaware Corporation. The Shares are being offered to Investor in a private placement
in accordance with the terms set forth in this Subscription Agreement. The Shares are being offered in connection with the Company’s
proposed business combination (the “Business Combination”) with NESCO Holdings I, Inc. (“Nesco”) pursuant
to the Agreement and Plan of Merger, dated as of April 7, 2019, by and among the Company, Capitol Investment Merger Sub 1, LLC,
Capitol Intermediate Holdings, LLC, Capitol Investment Merger Sub 2, LLC, NESCO Holdings, LP and Nesco (the “Merger Agreement”).
In connection with the Business Combination, the Company will convert into a Delaware corporation and the Shares issued hereunder
will be shares of common stock of a Delaware corporation.

 

3.
Investor Delivery of Documents and Payment. On the date of the closing of the Mergers (as defined in the Merger
Agreement), the Investor will wire the subscription amount in accordance with the directions provided to Investor by the Company
at least two business days prior to Closing (as defined below).

 

4.
Closing. The closing (“Closing”) on the Investor’s investment will occur immediately following
the consummation of the Business Combination. There will be no Closing if the Business Combination is not consummated. At Closing,
the Shares will be delivered promptly to Investor in book-entry form.

 

5.
Company Representations and Warranties.

 

5.1.
Company Organization. As of the date hereof, the Company is a Cayman Islands company duly organized, validly existing and
in good standing under the laws of the Cayman Islands. Immediately following the Closing, the Company will be a Delaware corporation,
validly existing and in good standing under the laws of the State of Delaware. The Company has the corporate power and authority
to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform
its obligations under this Subscription Agreement.

 

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5.2.
Due Authorization.

 

(a)
This Subscription Agreement has been duly authorized, executed and delivered by the Company and is enforceable against the Company
in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles of equity,
whether considered at law or equity.

 

(b)
The Shares have been duly authorized and, when issued and delivered to the undersigned against full payment therefor in accordance
with the terms of this Subscription Agreement, the Shares will be validly issued, fully paid and non-assessable and will not have
been issued in violation of or subject to any preemptive or similar rights created under the Company’s organizational documents,
as amended, or under the laws of the State of Delaware.

 

5.3.
Compliance. The issuance and sale of the Shares and the compliance by the Company with all of the provisions of this Subscription
Agreement and the consummation of the transactions herein will be done in accordance with the New York Stock Exchange rules and
will not conflict with or result in a material breach or material violation of any of the terms or provisions of, or constitute
a material default under, or result in the creation or imposition of any lien, charge or encumbrance upon any of the property
or assets of the Company or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan
agreement, license, lease or any other agreement or instrument to which the Company or any of its subsidiaries is a party or by
which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company is subject, which
would have a material adverse effect on the business, properties, financial condition, stockholders’ equity or results of
operations of the Company (a “Material Adverse Effect”) or materially affect the validity of the Shares or the legal
authority of the Company to comply in all material respects with the terms of this Subscription Agreement; (ii) result in any
material violation of the provisions of the organizational documents of the Company; or (iii) result in any violation of any statute
or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction
over the Company or any of its properties that would have a Material Adverse Effect or materially affect the validity of the Shares
or the legal authority of the Company to comply with this Subscription Agreement.

 

5.4.
Reliance on Representations. The Company understands that the foregoing representations and warranties shall be deemed
material and to have been relied upon by the Investor.

 

6.
Investor Representations and Warranties.

 

6.1.
Accredited Investor Status. Investor is an accredited investor within the meaning of Section 2(a)(15) of the Securities
Act of 1933, as amended, and Rule 501 promulgated thereunder.

 

6.2.
Information About the Company, Nesco and the Shares.

 

(a)
The Company has made available to Investor a copy of the Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2018, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 and its Registration Statement on Form S-4 (SEC File No. 333-230817) originally filed with the SEC on April 11, 2019, as amended, including the proxy statement/prospectus
and supplements included therein (collectively, the “Disclosure Documents”). Investor has read the Disclosure Documents
together with this Subscription Agreement, and fully understands the information set forth therein and herein, including the risk
factors described in the Disclosure Documents.

 

(b)
Investor has been given access to full and complete information regarding the Company and Nesco as Investor has requested and
has utilized such access to Investor’s satisfaction for the purpose of verifying the information included herein and therein,
and Investor has either met with or been given reasonable opportunity to meet with the officers of the Company or Nesco for the
purpose of asking reasonable questions of such officers concerning the terms and conditions of this subscription and the business
of the Company and Nesco and all such questions have been answered to Investor’s full satisfaction. Investor has also been
given an opportunity to obtain any additional relevant information to the extent reasonably available to the Company and Nesco.
After reading of such information and materials, Investor understands that there is no assurance as to the future performance
of the Shares and of the Company and Nesco following the Business Combination.

 

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(c)
Investor is not purchasing the Shares as a result of or subsequent to: (i) any advertisement, article, notice or other communication
published in any newspaper, magazine or similar media or broadcast over television, radio or the Internet or (ii) any seminar
or meeting whose attendees have been invited by any general solicitation or general advertising.

 

6.3.
Speculative Investment. Investor is aware that the Shares are a speculative investment that involve a high degree of risk
and Investor may suffer the total loss of its investment. Investor has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of an investment in the Shares and have obtained, in Investor’s
judgment, sufficient information to evaluate the merits and risks of an investment in the Shares. Investor has not utilized any
person as its purchaser representative (as defined in Regulation D) in connection with evaluating such merits and risks and has
relied solely upon its own investigation in making a decision to invest in the Shares. Investor has been urged to seek independent
advice from its professional advisors relating to the suitability of an investment in the Shares in view of its overall financial
needs and with respect to the legal and tax implications of such investment. Investor believes that the investment in the Shares
is suitable for it based upon its investment objectives and financial needs, and Investor has adequate means for providing for
its current financial needs and contingencies and has no need for liquidity with respect to its investment in the Shares. The
investment in the Shares does not constitute a significant portion of Investor’s investment portfolio.

 

6.4.
Restrictions on Transfer. Investor understands that (i) the Shares have not been registered under the Securities Act or
the securities laws of certain states in reliance on specific exemptions from registration and (ii) the Shares cannot be resold,
pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and under applicable
securities laws of certain states, or an exemption from such registration is available. The book-entry position representing the
Shares will bear a restrictive legend relating to such restrictions. In addition, Investor understands that (i) no securities
administrator of any state or the federal government has recommended or endorsed the Shares or made any finding or determination
relating to the fairness of an investment in the Shares and (ii) the Company is relying on Investor’s representations and
agreements for the purpose of determining whether this transaction meets the requirements of the exemptions afforded by the Securities
Act and certain state securities laws.

 

6.5.
Investment Representation. Investor is purchasing the Shares for its own account for investment and not with a view to,
or for sale in connection with, any subsequent distribution of the securities, nor with any present intention of selling or otherwise
disposing of all or any part of the Shares in violation of the Federal securities laws. Investor understands that, although there
is a public market for the Shares, there is no assurance that such market will continue in the future.

 

6.6.
Disqualifying Events. Investor is not subject to any of the “Bad Actor” disqualifications described in Rule
506(d)(1)(i) to (viii) under Regulation D of the Securities Act (a “Disqualification Event”), except for a Disqualification
Event covered by Rule 506(d)(2) or (d)(3)

 

6.7.
Entity Authority. Investor is authorized and qualified to purchase the Shares and the person signing this Subscription
Agreement on behalf of the Investor has been duly authorized by Investor to do so.

 

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6.8.
OFAC; BSA; Patriot Act. The Investor is not (i) a person or entity named on the List of Specially Designated Nationals
and Blocked Persons administered by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”)
or in any Executive Order issued by the President of the United States and administered by OFAC (“OFAC List”), or
a person or entity prohibited by any OFAC sanctions program, (ii) a Designated National as defined in the Cuban Assets Control
Regulations, 31 C.F.R. Part 515, or (iii) a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell bank
(collectively, a “Prohibited Investor”). The Investor agrees to provide law enforcement agencies, if requested thereby,
such records as required by applicable law, provided that the undersigned is permitted to do so under applicable law. If the Investor
is a financial institution subject to the Bank Secrecy Act (31 U.S.C. Section 5311 et seq.) (the “BSA”), as amended
by the USA PATRIOT Act of 2001 (the “PATRIOT Act”), and its implementing regulations (collectively, the “BSA/PATRIOT
Act”), the Investor maintains policies and procedures reasonably designed to comply with applicable obligations under the
BSA/PATRIOT Act. To the extent required, it maintains policies and procedures reasonably designed for the screening of its investors
against the OFAC sanctions programs, including the OFAC List. To the extent required, it maintains policies and procedures reasonably
designed to ensure that the funds held by the Investor and used to purchase the Shares were legally derived.

 

7.
Trust Fund Waiver. The Investor understands that the Company has established a trust fund, currently in an amount
of approximately $402 million, for the benefit of the Company’s public shareholders and that, except for certain limited
distributions of interest earned on the funds held in the trust fund, the Company may disburse monies from the trust fund only
(i) to the public shareholders in the event they elect to have their shares redeemed in connection with a business combination,
(ii) to the public shareholders upon the liquidation of the Company if the Company fails to consummate a business combination
within the required time period or (iii) to the Company after, or concurrently with, the consummation of a business combination.
For and in consideration of the Company agreeing to the terms contained in this Subscription Agreement and for other valuable
consideration the receipt of which is duly acknowledged, the Investor agrees that, as a result of its execution and delivery of
this Subscription Agreement, it does not have any right, title, interest or claim of any kind in or to any monies in the trust
fund (“Claim”) and waives any Claim it may have in the future as a result of, or arising out of, this Subscription
Agreement. This section shall survive the termination of this Subscription Agreement for any reason.

 

8.
Severability; Remedies. In the event any part or parts of this Subscription Agreement are found to be void, the
remaining provisions of this Subscription Agreement are nevertheless binding with the same effect as though the void part or parts
were deleted.

 

9.
Governing Law. This Agreement shall be governed by and construed in accordance with the law of the State of Delaware
regardless of the law that might otherwise govern under applicable principles of conflicts of law thereof.

 

10.
Counterparts. This Subscription Agreement may be executed in one or more counterparts, each of which will be deemed
an original but all of which together will constitute one and the same instrument. The execution of this Subscription Agreement
may be by actual or facsimile signature.

 

11.
Benefit. Except as otherwise set forth herein, this Subscription Agreement is binding upon and inures to the benefit
of the parties hereto and their respective heirs, executors, personal representatives, successors and assigns. This Subscription
Agreement may be assigned by Investor at any time.

 

12.
Notices. All notices, offers, acceptance and any other acts under this Subscription Agreement (except payment) must
be in writing, and is sufficiently given if delivered to the addressees in person, by overnight courier service, electronic transmission
(including via email) or, if mailed, postage prepaid, by certified mail (return receipt requested), and will be effective three
days after being placed in the mail if mailed, or upon receipt or refusal of receipt, if delivered personally or by courier or
confirmed telecopy or other electronic transmission (including via email), in each case addressed to a party. All communications
to Investor should be sent to Investor’s address on the signature page hereto. All communications to the Company should
be sent to:

 

Capitol
Investment Corp. IV

1300
17th Street, Suite 820

Arlington,
VA 22209

Attention:
Mark D. Ein

Telephone:
(202) 654–7060

Email:
mark@venturehousegroup.com

 

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13.
Oral Evidence. This Subscription Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof and supersedes all prior oral and written agreements between the parties hereto with respect to the
subject matter hereof. This Subscription Agreement may not be changed, waived, discharged, or terminated orally, but rather, only
by a statement in writing signed by the party or parties against which enforcement or the change, waiver, discharge or termination
is sought.

 

14.
Paragraph Headings. Paragraph headings herein have been inserted for reference only and will not be deemed to limit
or otherwise affect, in any matter, or be deemed to interpret in whole or in part, any of the terms or provisions of this Subscription
Agreement.

 

15.
Survival of Representations, Warranties and Agreements. The representations, warranties and agreements contained
herein will survive the delivery of, and the payment for, the Shares.

 

[SIGNATURE
PAGES FOLLOW]

 

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SIGNATURE
PAGE

 

I/We
am(are) affirming that all the information contained herein is true and correct to the best of my/our knowledge and belief, including
the attached schedule. If I am signing on behalf of an entity or trust I represent I have the authority to make investment decisions
for the entity. I also understand that a background/credit check maybe conducted for the purposes of detecting and deterring money
laundering.

 

	 	 	 
	Signature	 	Date
	 	 	 
	 	 	 
	Print Name	 	 
	 	 	 
	 	 	 
	Title (if applicable)	 	 
	 	 	 
	 	 	 
	Signature	 	Date
	 	 	 
	 	 	 
	Print Name	 	 
	 	 	 
	 	 	 
	Title (if applicable)	 	 

 

The
foregoing subscription is accepted and the Company hereby agrees to be bound by its terms.

 

CAPITOL
INVESTMENT CORP. IV

 

	 	 	 
	Signature	 	Date:
	 	 	 
	 	 	 
	Print Name	 	 
	 	 	 
	 	 	 
	Title (if applicable)	 	 

 

 

6Exhibit

Exhibit 4.1
To Annual Report on Form 10-K for Fiscal 2019
Of Cal-Maine Foods, Inc.

DESCRIPTION OF CAPITAL STOCK

The amount of capital stock which Cal-Maine Foods, Inc. (the “Company” or “Corporation”) is authorized to issue (the “Capital Stock”) is 124,800,000 shares, consisting of (a) 120,000,000 shares of Common Stock with a par value of One Cent ($.01) per share and (b) 4,800,000 shares of Class A Common Stock with a par value of One Cent ($.01) per share.

As of July 19, 2019, there were outstanding 43,894,478 shares of Common Stock and 4,800,000 shares of Class A Common Stock.

The following summary describes the Capital Stock under the Company’s Second Amended and Restated Certificate of Incorporation (the “Restated Charter”). The summary may not be complete and is subject to, and qualified in its entirety by, the applicable provisions of Delaware law and the terms and provisions of our Restated Charter. You should refer to, and read this summary together with, our Restated Charter to review all provisions applicable to our Capital Stock that may be important to you.

Equal Treatment

Except as otherwise provided in the Restated Charter as described below, or required by applicable law, shares of Common Stock and Class A Common Stock shall have the same rights and powers, rank equally (including as to dividends and distributions, and upon any liquidation, dissolution or winding up of the Corporation), share ratably and be identical in all respects and as to all matters.

Voting Rights

Holders of shares of Capital Stock vote as a single class on all matters submitted to a vote of the stockholders, with each share of Common Stock entitled to one vote and each share of Class A Common Stock entitled to ten votes.  Holders of Capital Stock have the right of cumulative voting in the election of directors.  Cumulative voting means that each stockholder is entitled to cast as many votes as he or she has the right to cast (before cumulating votes), multiplied by the number of directors to be elected, and such stockholder may cast all of such votes for a single director or may distribute them among the number to be voted for, or for any two or more of them as such stockholder may see fit.

Under Delaware law, the affirmative vote of the holders of a majority of the outstanding shares of any class of Capital Stock is required to approve, among other things, any amendment to the certificate of incorporation that would alter or change the powers, preferences or special rights of such class so as to affect such class adversely.
In addition, as long as any of the shares of the Class A Common Stock are outstanding, the consent of not less than 66 2/3 % of the total shares of Class A Common Stock outstanding is required to (1) alter or change the rights and privileges of Class A Common Stock; (2) to amend any provision of Paragraph 4 of the Restated Charter affecting the Class A Common Stock or (3) effect any re-classification or re-capitalization of the Company’s Capital Stock.

Dividends

Holders of shares of Capital Stock are entitled to receive such dividends as may be declared by our Board of Directors out of funds legally available for such purpose.

Shares of Common Stock and Class A Common Stock are required to be treated equally, identically and ratably, on a per share basis, with respect to any dividends or distributions as may be declared and paid from time to time by the Board of Directors out of any assets of the Company legally available therefor.

However, in the event a dividend is paid in the form of shares of Capital Stock (or rights to acquire such shares), then holders of Common Stock shall receive shares of Common Stock (or rights) and holders of Class A Common Stock shall receive shares of Class A Common Stock (or rights), with holders of shares of Common Stock and Class A Common Stock receiving, on a per share basis, an identical number of shares of Common Stock or Class A Common Stock, as applicable.

Notwithstanding the foregoing, the Board of Directors may pay or make a disparate dividend or distribution per share of Common Stock or Class A Common Stock (whether in the amount of such dividend or distribution payable per share, the 

Exhibit 4.1
To Annual Report on Form 10-K for Fiscal 2019
Of Cal-Maine Foods, Inc.

form in which such dividend or distribution is payable, the timing of the payment, or otherwise) if such disparate dividend or distribution is approved in advance by the affirmative vote of the holders of a majority of the outstanding shares of Common Stock and Class A Common Stock, each voting separately as a class.

Ownership of Class A Common Stock

The Class A Common Stock may only be issued to Immediate Family Members and Permitted Transferees (each as defined in the Restated Charter, and as summarized below).  In the event any share of Class A Common Stock, by operation of law or otherwise is, or shall be deemed to be owned by any person other than an Immediate Family Member or Permitted Transferee, such share of Class A Common Stock shall automatically convert into Common Stock, whereby the voting power of such stock would be reduced from ten votes per share to one vote per share.  
The term “Immediate Family Member” includes: our founder and Chairman Emeritus Fred R. Adams, Jr., his spouse (Mrs. Jean Adams), his natural children (the “Daughters”), his sons-in-law (including our Chairman and Chief Executive Officer Adolphus B. Baker), and his grandchildren, including the estates of all of such persons.

The term “Permitted Transferee” includes:

(i)  an Immediate Family Member;

(ii)  a trust held for the sole or primary benefit of one or more Immediate Family Members or Permitted Transferees, including any trustee in such trustee’s capacity as such, provided that if a trust is not for the sole benefit of one or more Immediate Family Members or Permitted Transferees, an Immediate Family Member or Permitted Transferee must retain sole dispositive and exclusive power to direct the voting of the shares of Class A Common Stock held by such trust;

(iii)  a corporation, limited liability company or partnership, including but not limited to, a family limited partnership or similar limited liability company or corporation, or a single member limited liability company, provided that all of the equity interest in such entity is owned, directly or indirectly, by one or more Immediate Family Members or Permitted Transferees and an Immediate Family Member or Permitted Transferee retains sole dispositive and exclusive power to direct the voting of the shares of Class A Common Stock held by such entity; 

(iv)  a qualified Individual Retirement Account, pension, profit sharing, stock bonus or other type of plan or trust of which an Immediate Family Member or Permitted Transferee is a participant or beneficiary, provided that in each case an Immediate Family Member or Permitted Transferee retains sole dispositive and exclusive power to direct the voting of the shares of Class A Common Stock held by such account, plan or trust; or

(v)   any guardianship, conservatorship or custodianship for the benefit of an Immediate Family Member who has been adjudged disabled, incapacitated, incompetent or otherwise unable to manage his or her own affairs by a court of competent jurisdiction, including any guardian, conservator or custodian in such guardian’s, conservator’s or custodian’s capacity as such.

Other Provisions

The holders of Common Stock and Class A Common Stock are not entitled to preemptive or subscription rights.

Unless approved in advance by the affirmative vote of the holders of a majority of the outstanding shares of Common Stock and Class A Common Stock, each voting separately as a class, shares of Common Stock or Class A Common Stock may not be subdivided, combined or reclassified unless the shares of the other class are concurrently therewith proportionately subdivided, combined or reclassified in a manner that maintains the same proportionate equity ownership between the holders of the outstanding Common Stock and Class A Common Stock on the record date for such subdivision, combination or reclassification.

Unless approved in advance by the affirmative vote of the holders of a majority of the outstanding shares of Common Stock and Class A Common Stock, each voting separately as a class, upon the dissolution, liquidation or winding up of the 

Exhibit 4.1
To Annual Report on Form 10-K for Fiscal 2019
Of Cal-Maine Foods, Inc.

corporation, whether voluntary or involuntary, holders of Common Stock and Class A Common Stock will be entitled to receive ratably all assets of the Corporation available for distribution to its stockholders.

In the event of (i) a merger, consolidation or other business combination requiring the approval of the holders of the Corporation’s capital stock entitled to vote thereon, (ii) a tender or exchange offer to acquire any shares of Common Stock or Class A Common Stock by an third party pursuant to an agreement to which the Corporation is a party, or (iii) a tender or exchange offer to acquire any shares of Common Stock or Class A Common Stock by the Corporation, holders of the Common Stock and the Class A Common Stock shall have the right to receive, or the right to elect to receive, the same form and amount of consideration on a per share basis. 

Each share of Class A Common Stock is convertible, at the option of its holder, into one share of Common Stock at any time.   Once shares of Class A Common Stock are converted into Common Stock, the shares of Class A Common Stock will be retired and may not be reissued.  The number of shares of Common Stock into which the shares of Class A Common Stock may be converted is subject to adjustment from time to time in the event of any capital reorganization, reclassification of stock of the Company or consolidation or merger of the Company with or into another corporation

The Restated Charter includes a sunset provision pursuant to which all of the outstanding Class A Common Stock will automatically convert to Common Stock if: (a) less than 4,300,000 shares of Class A Common Stock, in the aggregate, are beneficially owned by Immediate Family Members and/or Permitted Transferees, or (b) if less than 4,600,000 shares of Class A Common Stock and Common Stock, in the aggregate, are beneficially owned by Immediate Family Members and/or Permitted Transferees.

Control by Immediate Family Members, Anti-Takeover Considerations and Conflicts of Interest

General

Mr. Adams founded the Company and served as its CEO from the formation of the Company in 1969 until 2010, when his son-in-law, Mr. Baker, became CEO.    

As of July 19, 2019, Immediate Family Members beneficially own all of the 4.8 million outstanding shares of Class A Common Stock, representing 52.3% of the total voting power, and approximately 12.8 million shares of Common Stock, representing 13.3% of the total voting power.  Such persons possess in the aggregate 65.6% of the total voting power of the outstanding shares of our Common Stock and Class A Common Stock, based on shares held directly or through related entities.  Under arrangements in effect and known to the Company as of July 19, 2019, following the death of Mr. Adams, there will be a change in control of the Company from Mrs. Adams and Mr. Baker, acting jointly, to Mr. Baker, acting individually.

The Common Stock is listed on The Nasdaq Stock Market (“NASDAQ”).  Because Mr. Adams, Mrs. Adams, Mr. Baker and Mr. Baker’s spouse beneficially own in the aggregate capital stock of the Company entitling them to 65.6% of the total voting power, the Company is a “controlled company” under NASDAQ rules.   As a controlled company, the Company is not subject to certain NASDAQ listing standards, such as those that would otherwise require that a majority of a listed company’s directors be independent and that a compensation committee and nominating committee of the board of directors composed solely of independent directors be established.  The Company is, however, subject to NASDAQ listing standards requiring that the Audit Committee be composed solely of independent directors. Delaware law provides that the holders of a majority of the voting power of shares entitled to vote must approve certain fundamental corporate transactions such as a merger, consolidation and sale of all or substantially all of a corporation’s assets.  Immediate Family Members currently hold a majority of the voting power of all shares of capital stock of the Company and have indicated that they intend to retain ownership of a sufficient amount of Common Stock and Class A Common Stock to assure continued ownership of more than 50% of the voting power of our outstanding shares of capital stock.  Accordingly, a merger, consolidation, sale of all or substantially all of the assets or other business combination or transaction involving the Company, which requires a stockholder vote, cannot be effected without the approval of the Immediate Family Members.

As a result, majority control may make an unsolicited acquisition of the Company more difficult and discourage certain types of transactions involving a change of control of our Company, including transactions in which the holders of Common Stock might otherwise receive a premium for their shares over then current market prices.  Also, the controlling ownership 

Exhibit 4.1
To Annual Report on Form 10-K for Fiscal 2019
Of Cal-Maine Foods, Inc.

of our Capital Stock by Immediate Family Members may adversely affect the market price of our Common Stock, due in part to lack of speculation that there may be a change in control.

Delaware Anti-Takeover Law

We are subject to Section 203 (“Section 203”) of the Delaware General Corporation Law.  Under this provision, we may not engage in any “business combination” with any interested stockholder for a period of three years following the date the stockholder became an interested stockholder, unless:

i.    prior to that date our Board of Directors approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;

ii.    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 outstanding at the time the transaction began; or

iii.    on or following that date, the business combination is approved by our Board of Directors and authorized at an annual or special meeting of stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder.

Section 203 defines “business combination” to include, subject to limited exceptions:

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

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

iii.    any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

iv.    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

v.    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 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 the entity or person.

The restrictions of Section 203 of the Delaware General Corporation Law do not apply to corporations that have elected, in the manner provided therein, not to be subject to Section 203 of the Delaware General Corporation Law.  The Company has not made such an election.  Accordingly, the Company would be subject to Section 203 in the event of a business combination.  

Transfer Agent 

Computershare Trust Company of Louisville, Kentucky, is the Transfer Agent and Registrar for our Common Stock.

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