Document:

Exhibit

Exhibit 4.2
DESCRIPTION OF COMMON STOCK
The following is a description of common stock of Lancaster Colony Corporation (the “Company”), which is the only security of the Company registered pursuant to Section 12 of the Securities and Exchange Act of 1934. The following description is based on the related provisions of the Company’s Amended and Restated Articles of Incorporation (the “Articles”), Amended and Restated Regulations (the “Regulations”), and applicable Ohio law. This description is intended as a summary and is qualified in its entirety by, and should be read in conjunction with, the Articles, Regulations and applicable Ohio law. The Articles and Regulations are filed as exhibits to our most recent Annual Report on Form 10-K and are incorporated herein by reference. 
Authorized Common Stock
The Company is authorized to issue up to 75,000,000 shares of common stock, without par value (the “Common Stock”). 
In addition to the Common Stock, the Company is also authorized to issue up to 750,000 shares of Class A Participating Preferred Stock, with $1.00 par value, 1,150,000 shares of Class B Voting Preferring Stock, without par value, and 1,150,000 shares of Class C Nonvoting Preferring Stock, without par value (collectively, the “Preferred Stock”). The issuance of Preferred Stock may adversely affect the rights of holders of the Company’s Common Stock by, among other things: 
		
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	restricting dividends on the Common Stock;

		
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	diluting the voting power of the Common Stock;

		
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	impairing the liquidation rights of the Common Stock; or

		
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	delaying or preventing a change in control without further action by the Company’s board of directors or stockholders.

Common Stock
Fully Paid and Nonassessable
All of the outstanding shares of the Company’s Common Stock are fully paid and nonassessable.
Voting Rights
The holders of shares of Common Stock are entitled to one vote per share on all matters to be voted on by such holders.  The election of director nominees requires the favorable vote of a plurality of all votes cast by the holders of the Common Stock at a meeting at which a quorum is present.  Holders of shares of Common Stock are not entitled to cumulative voting of their shares in elections of directors.
Board Classification
The Company’s board of directors is divided into three classes serving staggered three-year terms.
Dividends
Subject to the rights of the holders of any class of Preferred Stock outstanding at any time, the holders of shares of Common Stock are entitled to receive such dividends, if any, as may be declared from time to time by the Company’s board of directors in its discretion from funds legally available therefor.
Right to Receive Liquidation Distributions
Upon liquidation, dissolution or winding-up, and after the Company pays or makes adequate provision for all of its known debts and liabilities, and subject to any rights that are granted to the holders of any class of Preferred Stock, the holders of shares of Common Stock are entitled to receive pro rata all assets remaining available for distribution to holders of such shares.
No Preemptive or Similar Rights
The Common Stock has no preemptive or other subscription rights, and there are no conversion rights or redemption or sinking fund provisions with respect to such shares of Common Stock.

Anti-Takeover Provisions of the Articles, Regulations and Ohio Law
The following provisions of our Articles, Regulations, and Ohio law may delay or discourage transactions involving an actual or potential change in the Company’s control or change in its management, including transactions in which shareholders might otherwise receive a premium for their shares, or transactions that our shareholders might otherwise deem to be in their best interests.
Articles and Regulations:
Among other things, the Articles and Regulations:
		
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	permit the issuance of Preferred Stock by action of the board of directors;

		
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	provide that, except for a vacancy caused by the removal of a director as provided by law or in the Regulations, a vacancy may be filled by a person selected by a majority of the remaining directors then in office;

		
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	require that prospective nominees to the board of directors make certain certifications to the Company, including, without limitation, concerning arrangements with third parties relating to voting as a director, and concerning the nominating shareholder’s ownership position in the Company’s securities;

		
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	require that shareholders seeking to present proposals before a meeting of shareholders or to nominate candidates for election as directors at a meeting of shareholders must provide notice in writing in a timely manner, and also specify requirements as to the form and content of such notice;

		
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	divide the board of directors into three classes serving staggered three-year terms;

		
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	provide that directors may be removed from office only for cause; 

		
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	provide that the Company shall, to the fullest extent permitted by Ohio law, indemnify, defend and hold harmless the Company’s directors, officers and certain other covered persons against certain liabilities and losses incurred in connection with their positions or services; and

		
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	do not provide for cumulative voting rights for the election of directors.

Ohio Business Combination Statute:
Additionally, we are subject to Chapter 1704 of the Ohio Revised Code, which prohibits certain business combinations and transactions between an “issuing public corporation” and an “interested shareholder” for at least three years after the interested shareholder attains 10% ownership of the issuing public corporation, unless the board of directors of the issuing public corporation approves the transaction prior to the interested shareholder attaining such 10% ownership. An “issuing public corporation” is an Ohio corporation with 50 or more shareholders that has its principal place of business, principal executive offices, or substantial assets within the State of Ohio, and as to which no close corporation agreement exists. An “interested shareholder” is a person who, at any time within the three-year period immediately prior to the date on which it is sought to be determined whether the person is an interested shareholder, was the beneficial owner of 10% or more of the shares of a corporation. Examples of transactions regulated by Chapter 1704 include the disposition of assets, mergers and consolidations, voluntary dissolutions, and the transfer of shares.
Subsequent to the three-year period, a transaction subject to Chapter 1704 may take place provided that certain conditions are satisfied, including at least one of the following:
		
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	prior to the interested shareholder’s share acquisition date, the board of directors of the issuing public corporation approved the purchase of shares by the interested shareholder;

		
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	the transaction is approved by the holders of shares with at least 66 2/3% of the voting power of the corporation (or a different proportion set forth in the articles of incorporation), including at least a majority of the outstanding shares after excluding shares controlled by the interested shareholder; or

		
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	the business combination results in shareholders, other than the interested shareholder, receiving a fair price plus interest for their shares.

Ohio Control Bids Statute:
Section 1707.041 of the Ohio Revised Code regulates certain “control bids” for corporations in Ohio with certain concentrations of Ohio shareholders and permits the Ohio Division of Securities to suspend a control bid if certain information is not provided to offerees, the subject corporation and the Ohio Division of Securities. Control bids include the purchase or offer to purchase any equity security of such a corporation from a resident of Ohio if, after the purchase of that security, the offeror would be directly or indirectly the beneficial owner of more than 10% of any class of issued and outstanding equity securities of the corporation. Information that must be provided in connection with a control bid includes, among other things, a statement of any plans or proposals that the offeror, upon gaining control, may have to liquidate the subject corporation, sell its assets, effect a merger or consolidation of the corporation, establish, terminate, convert, or amend employee benefit plans, close any plant or facility of the subject corporation or of any of its subsidiaries or affiliates, change or reduce its work force or the 

work force of any of its subsidiaries or affiliates, or make any other major change in the corporation’s business, corporate structure, management personnel or policies of employment. A “control bid” does not include an offer to acquire any equity security, or the acquisition of any equity security pursuant to an offer, for the sole account of the offeror, from not more than fifty persons, made in good faith and not for the purpose of avoiding the provisions of Chapter 1707 of the Ohio Revised Code.
Listing
The Common Stock is listed on the NASDAQ Global Select Market under the trading symbol “LANC.”
Transfer Agent and Registrar
 Broadridge Financial Solutions is the transfer agent and registrar of the Common Stock, but this may change from time to time.EXHIBIT 4.2

 

DESCRIPTION OF THE REGISTRANT’S
SECURITIES 

REGISTERED PURSUANT TO SECTION 12 OF
THE 

SECURITIES EXCHANGE ACT OF 1934 

 

Description of Class A common stock

 

The following summary of Phibro Animal Health
Corporation’s Class A common stock does not purport to be complete and is subject to our amended and restated certificate
of incorporation, our amended and restated bylaws and the provisions of applicable law. Copies of our amended and restated certificate
of incorporation and amended and restated bylaws are filed as exhibits to the Annual Report on Form 10-K, of which this Exhibit
4.2 is a part.

 

Authorized Capitalization 

 

General 

 

Our authorized capital stock consists of
300,000,000 shares of Class A common stock, par value $0.0001 per share, 30,000,000 shares of Class B common stock, par value $0.0001
per share, and 16,000,000 shares of undesignated preferred stock.

 

Common Stock 

 

Class A Common Stock 

 

Holders of shares of our Class A common stock
are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. Except as otherwise
provided by our amended and restated certificate of incorporation or applicable law, the holders of our Class A common stock
and Class B common stock shall vote together as a single class. Our amended and restated bylaws provide that the presence,
in person or by proxy, of holders of shares representing a majority of the outstanding shares of common stock entitled to vote
at a stockholders’ meeting shall constitute a quorum. When a quorum is present, the affirmative vote of a majority in voting
power of the shares of common stock present in person or represented by proxy at the meeting and entitled to vote on the subject
matter is required to take action, unless otherwise specified by law or our certificate of incorporation, and except for the election
of directors, which is determined by a plurality vote. There are no cumulative voting rights.

 

Holders of shares of our Class A common stock
are entitled to receive dividends when and if declared by our board of directors (“Board”) out of funds legally available
therefor and pro rata with holders of shares of our Class B common stock, subject to any statutory or contractual restrictions
on the payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any outstanding preferred
stock.

 

Upon our dissolution or liquidation or the
sale of all or substantially all of our assets, after payment in full of all amounts required to be paid to creditors and to the
holders of preferred stock having liquidation preferences, if any, the holders of shares of our Class A common stock will be entitled
to receive pro rata with holders of shares of our Class B common stock our remaining assets available for distribution.

 

Holders of shares of our Class A common stock
do not have preemptive, subscription or conversion rights. Our Class A common stock is not convertible and there are no redemption
or sinking fund provisions applicable to our Class A common stock. Unless our Board determines otherwise, we will issue all of
our capital stock in uncertificated form.

 

     

     

    

 

Class B Common Stock 

 

Holders of shares of Class B common stock
are entitled to 10 votes for each share of record on all matters submitted to a vote of stockholders. Each share of Class B common
stock is convertible at any time at the option of the holder into one share of Class A common stock. In addition, each share of
Class B common stock will convert automatically into one share of Class A common stock upon any transfer, whether or not for value,
except for certain transfers by and among BFI Co., LLC, a Delaware limited liability company (“BFI”), its affiliates
and certain Bendheim family members, as described in the amended and restated certificate of incorporation. Once transferred and
converted into Class A common stock, the Class B common stock will not be reissued. In addition, all shares of Class B common stock
will automatically convert to shares of Class A common stock when the outstanding shares of Class B common stock and Class A common
stock held by BFI, its affiliates and certain Bendheim family members, together, is less than 15% of the total outstanding shares
of Class A common stock and Class B common stock, taken as a single class.

 

Dividend Rights 

 

Each holder of shares of our capital stock
is entitled to receive such dividends and other distributions in cash, stock or property as may be declared by our Board from time
to time out of our assets or funds legally available for dividends or other distributions. These rights are subject to the preferential
rights of any other class or series of our preferred stock.

 

Other Rights 

 

Each holder of common stock is subject to,
and may be adversely affected by, the rights of the holders of any series of preferred stock that we may designate and issue in
the future.

 

Liquidation Rights 

 

If our company is involved in a consolidation,
merger, recapitalization, reorganization, or similar event, each holder of common stock will participate pro rata in all assets
remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding.

 

Anti-takeover Effects of our Amended and Restated Certificate
of Incorporation and Amended and Restated Bylaws 

 

Action by Written Consent, Special Meeting of Stockholders
and Advance Notice Requirements for Stockholder Proposals 

 

Our amended and restated certificate of incorporation
provides that stockholder action can be taken only at an annual or special meeting of stockholders and cannot be taken by written
consent in lieu of a meeting once BFI and its affiliates cease to beneficially own more than 50% of the voting power of our outstanding
shares of common stock. Our amended and restated certificate of incorporation and bylaws will also provide that, except as otherwise
required by law, special meetings of the stockholders can be called only pursuant to a resolution adopted by a majority of the
total number of directors that we would have if there were no vacancies or, until the date that BFI and its affiliates ceases to
beneficially own more than 50% of the voting power of our outstanding shares of common stock, at the request of holders of 50%
or more of the voting power of our outstanding shares. Except as described above, stockholders will not be permitted to call a
special meeting or to require the Board to call a special meeting.

 

In addition, our amended and restated bylaws
require advance notice procedures for stockholder proposals to be brought before an annual meeting of the stockholders, including
the nomination of directors. Stockholders at an annual meeting may only consider the proposals specified in the notice of meeting
or brought before the meeting by or at the direction of the Board, or by a stockholder of record on the record date for the meeting,
who is entitled to vote at the meeting and who has delivered a timely written notice in proper form to our secretary, of the stockholder’s
intention to bring such business before the meeting.

 

     

     

    

 

Classified Board

 

Our amended and restated certificate of incorporation
provides that our Board will be divided into three classes of directors, with the classes as nearly equal in number as possible.
As a result, approximately one-third of our Board is elected each year.

 

Dual Class Stock

 

Our amended and restated certificate of incorporation
provides for a dual class common stock structure, which provides BFI and its affiliates with the ability to control the outcome
of matters requiring stockholder approval, even if BFI and its affiliates own significantly less than a majority of the shares
of our Class A common stock and Class B common stock voting together on a combined basis, including the election of directors and
significant corporate transactions, such as a merger or other sale of our company or its assets.

 

Amendment to Certificate of Incorporation and Bylaws 

 

The Delaware General Corporation Law provides
generally that the affirmative vote of a majority of the outstanding stock entitled to vote on amendments to a corporation’s
certificate of incorporation or bylaws is required to approve such amendment, unless a corporation’s certificate of incorporation
or bylaws, as the case may be, requires a greater percentage. Our amended and restated bylaws may be amended, altered, changed
or repealed by a majority vote of our Board, provided that, in addition to any other vote otherwise required by law, after the
date on which BFI and its affiliates cease to beneficially own more than 50% of the voting power of our outstanding shares, the
affirmative vote of at least 75% of the voting power of our outstanding shares of common stock will be required to amend, alter,
change or repeal our amended and restated bylaws. Additionally, after the date on which BFI and its affiliates cease to beneficially
own more than 50% of the voting power of our outstanding shares, the affirmative vote of at least 75% of the voting power of the
outstanding shares of common stock entitled to vote on the adoption, alteration, amendment or repeal of our amended and restated
certificate of incorporation, voting as a single class, will be required to amend or repeal or to adopt any provision inconsistent
with specified provisions of our amended and restated certificate of incorporation.

 

Transfer Agent and Registrar 

 

The transfer agent and registrar for our
Class A common stock is American Stock Transfer & Trust Company, LLC. Its address is 6201 15​th Avenue, Brooklyn,
New York 11219.

 

Listing 

 

Our Class A common stock is listed on The
Nasdaq Stock Market under the trading symbol “PAHC.”

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