Document:

Exhibit 4.1

     

      

    DESCRIPTION OF THE REGISTRANT’S SECURITIES

    REGISTERED PURSUANT TO SECTION 12 OF THE

    SECURITIES EXCHANGE ACT OF 1934

     

      

    As of December 31, 2021, Broadway Financial Corporation (the “Company”, “we”, “our” or “us”) had two classes of securities registered under Section 12 of the
      Securities Exchange Act of 1934, as amended (the “Exchange Act”): (1) shares of our voting Class A Common Stock, par value $0.01 per share ( “Common Stock”), and (2) the preferred stock purchase rights described below with respect to Series B Junior
      Participating Preferred Stock that might be issued by us upon the occurrence of certain events.

     

      

    Common Stock

     

      

    We are authorized under our certificate of incorporation to issue an aggregate of 50,000,000 shares of Common Stock, par value $0.01 per share, an aggregate of
      15,000,000 shares of non-voting Class B Common Stock, par value $0.01 per share, and 25,000,000 shares of non-voting Class C Common Stock, par value $0.01 per share (the Class B and Class C Common Stock collectively referred to as “Non-Voting Common
      Stock”).   The shares of Non-Voting Common Stock have all the attributes and rights of our Common Stock, other than with respect to voting rights.  The shares of Class C Common Stock convert to shares of Common Stock having voting rights in the event
      of certain transfers from the holders to whom such shares of Non-Voting Common Stock were originally issued.  The Non-Voting Common Stock is not registered under the Exchange Act.

     

      

    The following is a summary of the material terms of our common stock.  The rights of holders of our Common Stock and our Non-Voting Common Stock, are subject
      to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock which we may designate and issue in the future. This description does not purport to be complete and is qualified in its entirety by
      reference to our certificate of incorporation and amended and restated bylaws, which are filed as exhibits to the registration statement of which this prospectus forms a part.

     

      

    Dividend Rights

     

      

    Subject to the rights of holders of preferred stock of any series that may be issued and outstanding from time to time, holders of our common stock are
      entitled to receive such dividends and other distributions in cash, securities or other assets as may be declared by our board of directors from time to time out of our funds or assets that are legally available for dividends and other distributions,
      and are entitled to share equally on a per share basis in all such dividends and other distributions.

     

    

    
      
        

    

    Voting Rights

     

      

    Each outstanding share of our Common Stock is entitled to one vote on all matters submitted to a vote of stockholders generally.  In the event we issue one or
      more series of preferred or other securities in the future such preferred stock or other securities may be given rights to vote, either together with the Common Stock or as a separate class on one or more types of matters.

     

      

    Liquidation Rights

     

      

    In the event of any liquidation, dissolution or winding up of the Company, the holders of our common stock will be entitled, subject to the prior rights of any
      outstanding series of our preferred stock, to share in our net assets, if any, that are available after the payment of all of our debts and other liabilities.

     

      

    Preemptive Rights

     

      

    The holders of our common stock have no preemptive rights in their capacities as such holders.

     

      

    Board of Directors

     

      

    Holders of Common Stock do not have cumulative voting rights with respect to the election of directors.  At any meeting to elect directors by holders of our
      Common Stock, the presence, in person or by proxy, of the holders of a majority of the voting power of shares of our Common Stock then outstanding will constitute a quorum for such election.  Directors may be elected by a plurality of the votes of
      the shares present and entitled to vote on the election of directors, except for directors whom the holders of any then outstanding preferred stock have the right to elect, if any.

     

      

    Certain Anti-Takeover Effects of Our Certificate of Incorporation, Bylaws and Applicable Law

     

    Provisions of Delaware Law. We are a Delaware corporation and Section 203 of the Delaware General Corporate Law (“DGCL”) applies to us.  It is an anti-takeover statute that is designed to protect
        stockholders against coercive, unfair or inadequate tender offers and other abusive tactics and to encourage any person contemplating a business combination with us to negotiate with our board of directors for the fair and equitable treatment of
        all stockholders.

     

    
      
        

    

    Under Section 203 of the DGCL, a Delaware corporation is not permitted to engage in a “business combination” with an “interested stockholder” for a period of
      three years following the date that the stockholder became an interested stockholder.  As defined for this purpose, the term “business combination” includes a merger, consolidation, asset sale or other transaction resulting in a financial benefit to
      the interested stockholder.  The term “interested stockholder” is defined to mean a person who, together with affiliates and associates, owns, or within three years did own, 15% or more of the corporation’s outstanding voting stock.  This prohibition
      does not apply if:

     

    	

          	•	
            prior to the time that the stockholder became an interested stockholder, the board of directors of the corporation approved either the business combination or the transaction resulting in the stockholder
              becoming an interested stockholder;

          

    	

          	•	
            upon completion of the transaction resulting in the stockholder becoming an interested stockholder, the stockholder owns at least 85% of the outstanding voting stock of the corporation, excluding voting stock
              owned by directors who are also officers and by certain employee stock plans; or

          

    	

          	•	
            at or subsequent to the time that the stockholder became an interested stockholder, the business combination is approved by the board and authorized at an annual or special meeting of stockholders, and not by
              written consent, by the affirmative vote of at least two-thirds of the outstanding voting stock that the interested stockholder does not own.

          

     

    A Delaware corporation may elect not to be governed by these restrictions. We have not made such election.

     

    Classified Board of Directors; Removal of
        Directors for Cause. Our certificate of incorporation and bylaws provide for our board of directors to be divided into three classes, as nearly equal in number as
        possible, serving staggered terms.  Approximately one-third of our board will be elected each year.  At each annual meeting of stockholders, directors elected to succeed those directors whose terms expire will be elected for a three-year term of
        office.  All directors elected to our classified board of directors will serve until the election and qualification of their respective successors or their earlier resignation or removal.  The board of directors is authorized to create new
        directorships and to fill such positions so created and is permitted to specify the class to which any such new position is assigned.  The person filling such position would serve for the term applicable to that class.  The board of directors (or
        its remaining members, even if less than a quorum) is also empowered to fill vacancies on the board of directors occurring for any reason for the remainder of the term of the class of directors in which the vacancy occurred.  Members of the board
        of directors may only be removed for cause by the affirmative vote, taken at a stockholders meeting, of a majority of our outstanding voting stock.  Cause is defined for this purpose to mean conviction of a felony, or gross negligence or misconduct
        in the performance of a director’s duty to the Company as determined by a court of competent jurisdiction, which adjudication is no longer subject to direct appeal.  These provisions are likely to increase the time required for stockholders to
        change the composition of the board of directors.  For example, in general, at least two annual meetings will be necessary for stockholders to effect a change in a majority of the members of the board of directors.  The provision for a classified
        board could prevent a party who acquires control of a majority of our outstanding Common Stock from obtaining control of our board of directors until our second annual stockholders meeting following the date the acquirer obtains the controlling
        stock interest.  The classified board provision could have the effect of discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control of us and could increase the likelihood that incumbent directors will
        retain their positions.

     

    
      
        

    

    Advance Notice Procedures. Our bylaws establish an advance notice procedure for stockholder nominations of persons for election to our board of directors and for any proposals to be presented by
        stockholders at an annual meeting.  Stockholders at an annual meeting will only be able to consider nominations and other proposals specified in the notice of meeting or brought before the meeting by or at the direction of our board of directors or
        by a stockholder who was a stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has given our corporate secretary timely written notice, in proper form, of the stockholder’s intention to nominate
        a person for election as a director or to bring a proposal for action at the meeting.

     

    Unanimity Required For Stockholder Action
        Without Meeting.  Our certificate of incorporation provides that stockholder actions may be taken without a meeting only by written consent signed by all stockholders.

     

    Supermajority Stockholder Vote Required for
        Certain Actions.  The Delaware General Corporation Law provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is
        required to amend a corporation’s certificate of incorporation or bylaws, unless the corporation’s certificate of incorporation or bylaws, as the case may be, requires a greater percentage.  Our certificate of incorporation requires the affirmative
        vote of the holders of at least 66-2/3% of our outstanding voting stock to amend or repeal certain provisions of the certificate of incorporation.  This “super-majority” stockholder vote would be in addition to any separate class vote that might be
        required pursuant to the terms of any preferred stock that might then be outstanding.  In addition, our amended and restated bylaws may only be amended by the directors then in office.

     

    The affirmative vote of the holders of two-thirds of our outstanding voting stock is also required by our certificate of incorporation, in addition to any
      other approval that may be required by law, for approval of a business combination with or upon a proposal by an interested stockholder, unless the business combination (1) has been approved by a majority of disinterested directors, or (2) will occur
      at least three years after the proposing stockholder became an interested stockholder and certain criteria relating to the price to be paid in the business combination are satisfied, or (3) is solely with one of our subsidiaries and certain criteria
      are satisfied.  For purposes of the foregoing provisions, the term “interested stockholder” is defined as a direct or indirect beneficial owner of more than 10% of our outstanding voting stock.

     

    
      
        

    

    Effects of Authorized but Unissued Shares. We have shares of Common Stock and “blank check” preferred stock available for future issuance and our Board may establish the terms of separate series of such preferred stock,
        without stockholder approval, subject to the limitations imposed by the listing standards of the NASDAQ Capital Market or any securities market or exchange on which our securities may be listed or traded.  These additional shares may be utilized
        for a variety of corporate purposes, including future private sales or public offerings to raise additional capital, acquisitions of other companies and grants of stock options or other stock-based compensation awards pursuant to employee incentive
        compensation plans.  The existence of authorized but unissued shares of Common Stock and “blank check” preferred stock could render more difficult or discourage an attempt to obtain control of a majority of our Common Stock by means of a proxy
        contest, tender offer, merger, or otherwise.

     

      

    Regulatory Requirements.  The Change in Bank Control Act prohibits a person or group of persons acting in concert from acquiring control of a bank holding company unless the Federal Reserve Board has been
        given 60 days prior written notice of such proposed acquisition and within that time period the Federal Reserve Board has not issued a notice disapproving the proposed acquisition or extending for up to another 30 days the period during which such
        a disapproval may be issued.  The term “control” is defined for this purpose to include ownership or control of, or holding with power to vote, 25% or more of any class of a bank holding company’s voting securities.  Under a rebuttable presumption
        contained in the regulations of the Federal Reserve Board, ownership or control of, or holding with power to vote, 10% or more of any class of voting securities of a savings and loan holding company having a class of securities registered under
        Section 12 of the Exchange Act would also be deemed to constitute the acquisition of control.  In addition, any company would be required to obtain the approval of the Federal Reserve Board under the Bank Holding Company Act before acquiring
        control of a bank holding company.  For this purpose, a company is deemed to have control of a bank holding company if the company owns, controls, holds with power to vote, or holds proxies representing, 25% or more of any class of voting shares of
        the bank holding company or controls in any manner the election of a majority of the holding company’s directors, and may also be deemed to acquire control of a bank holding company based on a consideration of all relevant facts by the Federal
        Reserve Board.

     

    Transfer Agent and Registrar

     

    Computershare Investor Services is the transfer agent and registrar for our Common Stock.  The transfer agent and registrar’s address is 250 Royall Street,
      Canton, MA 02021.

     

    Listing of our Common Stock

     

    Our Common Stock is listed on the NASDAQ Capital Market under the symbol “BYFC.”

     

    
      
        

    

    Rights to Purchase Series B Junior Participating Preferred Stock

     

    

    On September 10, 2019, our board of directors declared a dividend of one preferred share purchase right (each a “Right”) for each share of Common Stock and
      Non-Voting Common Stock outstanding on September 23, 2019 to the stockholders of record as of the close of business on that date.  In connection with the distribution of the Rights, the Company entered into a Rights Agreement (the “Rights
      Agreement”), dated as of September 10, 2019, between the Company and Computershare Trust Company, N.A., as rights agent.   The Rights are attached to and will not be transferrable separately from the shares of Common Stock and Non-Voting Common Stock
      in respect of which the Rights were issued except upon the occurrence of certain events specified in the Rights Agreement.  The Rights are registered under the Exchange Act.

     

    Each Right entitles the registered holder thereof, upon the occurrence of certain events, to purchase from the Company one one-thousandth of a share of Series
      B Junior Participating Preferred Stock, par value $0.01 per share, of the Company (the “Series B Preferred Shares”) at a price of $3.60 per each one-thousandth of a Preferred Share represented by a Right, subject to adjustment in certain events as
      provided in the Rights Agreement.  No shares of Series B Preferred Shares are outstanding, and the Series B Preferred Shares are not registered under the Exchange Act at this time.

     

    The Rights are in all respects subject to and governed by the provisions of the Rights Agreement, which is incorporated herein by reference to Exhibit 4.1 to
      the Company’s Current Report on Form 8-K filed on September 11, 2019.  A description of the Rights is incorporated herein by reference to the description thereof set forth under Items 1.01 and 5.03 of the Company’s Current Report on Form 8-K filed on
      September 11, 2019, which description is qualified in its entirety by reference to the full text of the Rights Agreement.Exhibit 4.1

 

DESCRIPTION OF SECURITIES

REGISTERED UNDER SECTION 12 OF THE SECURITIES
EXCHANGE ACT OF 1934

 

Capital Stock

 

The total number of shares of stock AmeriCrew
Inc. (the “Company”) is authorized to issue consists of 75,000,000 shares of common stock, par value $0.001 per share, and
10,000,000 shares of “blank check” preferred stock, par value $0.001 per share.

 

Common Stock  

 

Voting Rights

 

The holders of our common stock are entitled to
one vote for each share held of record on all matters submitted to a vote of the stockholders, including the election of directors, and
do not have cumulative voting rights. Accordingly, the holders of a majority of the shares of the common stock entitled to vote in any
election of directors can elect all of the directors standing for election.

 

Dividend Rights

 

Subject to preferences that may be applicable
to any then outstanding preferred stock, the holders of common stock are entitled to receive dividends, if any, as may be declared from
time to time by our Board of Directors (the “Board”) out of legally available funds.

 

Liquidation Rights

 

In the event of our liquidation, dissolution or
winding up, holders of the 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, subject to the satisfaction of any liquidation preference granted to the
holders of any then outstanding shares of preferred stock.

 

Other Rights and Preferences

 

The holders of the common stock have no preemptive,
conversion or subscription rights, and there are no redemption or sinking fund provisions applicable to the common stock. The rights,
preferences and privileges of the holders of the common stock are subject to, and may be adversely affected by, the rights of the holders
of shares of any series of our preferred stock that the Board may designate and issue in the future.

 

Fully Paid and Nonassessable

 

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

 

Anti-Takeover Effects of Certain Provisions
of our Certificate of Incorporation and Bylaws

 

Our Certificate of Incorporation and Bylaws contain
certain provisions that may have anti-takeover effects, making it more difficult for or preventing a third party from acquiring control
of the Company or changing our Board and management. Set forth below is a summary of certain of these provisions.

 

Classified Board of Directors

 

The Company’s Certificate of Incorporation
provides for a classified Board, with the Board divided into three classes, with each class consisting as nearly as possible of one third
of the number of directors constituting the full Board. Subject to the rights of holders of any preferred stock, each director shall serve
for a term ending on the third annual meeting of stockholders following the annual meeting at which such director was elected. The initial
terms of each class of directors are as follows: (i) Class I shall serve for a term expiring at the Company’s first annual
stockholder’s meeting after the effectiveness of the Certificate of Incorporation (October 2021), (ii) Class II shall
serve for a term expiring at the second stockholder’s meeting after October 2021, and (iii) Class III shall serve
for a term expiring at the third stockholder’s meeting after October 2021.

 

     

     

    

 

“Blank Check” Preferred Stock

 

Under our Certificate of Incorporation the Board
may authorize the issuance of one or more series of preferred stock with such rights, preferences and limitations as the Board may determine,
including voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock.
The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes could,
under some circumstances, have the effect of delaying, deferring or preventing a change in control of the Company.

 

Certain Enhanced Voting Requirements and Limitations

 

Our Certificate of Incorporation requires approval
by at least 66 and 2/3% of the outstanding voting power to (i) remove a director, and only for cause at a meeting duly called for
that purpose, or (ii) to adopt, repeal, alter, amend or rescind the Company’s Bylaws. Additionally, according to our Certificate
of Incorporation and Bylaws, the holders of the common stock do not have cumulative voting rights in the election of our directors.

 

Advance Notice of Stockholder’s Proposals

 

Our Bylaws contain advance notice requirements
for stockholder proposals. To be timely, such stockholder’s notice must be delivered to the Company not less than 90 days,
nor more than 120 days prior to the meeting; provided that in the event that less than 100 days’ notice of prior public
disclosure of the date of the meeting is made to stockholders, notice by the stockholder to be timely must be delivered not later than
the close of business on the 10th day following the day on which such notice of the date of the meeting was mailed
or such public disclosure was made.

 

Special Meeting Limitations

 

Pursuant to our Certificate of Incorporation,
a special meeting of our stockholders can only be called by (i) an officer authorized by resolution of our Board, or (ii) the
Chairman of the Board.

 

Jurisdiction and Venue

 

Our Certificate of Incorporation provides that
lawsuits involving the Company and its internal affairs, including derivative actions brought on behalf of the Company by its stockholders
under state corporate law, be governed by the laws of Delaware and providing that resulting proceedings be heard exclusively in state
courts located within Delaware, which may make actions against or on behalf of the Company more difficult to litigate by stockholders.
Similarly, our Certificate of Incorporation provides that actions brought under the Securities Act of 1933 (the “Securities Act”)
or the Securities Exchange Act of 1934 be brought exclusively in federal court in Delaware, and that federal courts have exclusive
jurisdiction over Securities Act litigation relating to the Company

 

These provisions, together with provisions of
the Delaware General Corporate Law, could have the effect of delaying, deferring or preventing an attempted takeover or change of control
of the Company, or making such an attempt more difficult. Additionally, while a Delaware court has upheld a similar provision, in most
jurisdictions it remains unclear how a court would interpret and whether it would enforce some of these provisions, resulting in added
uncertainty. Section 22 of the Securities Act creates concurrent jurisdiction for federal and state courts over all suits brought
to enforce any duty or liability created by the Securities Act or the rules and regulations thereunder.

 

Transfer Agent and Registrar

 

The transfer agent and registrar for the common
stock is Worldwide Stock Transfer. Its address is One University Plaza, Suite 505, Hackensack, NJ 07601 and its telephone number
is (201) 820-2008.

 

Pursuant to Item 202(a), the information regarding
the Common Stock contained herein does not constitute a complete legal description of the Common Stock and is qualified in all material
respects by the provisions of the Company’s Certificate of Incorporation and bylaws, as filed with the Securities and Exchange Commission.

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