Document:

ex_157689.htm

Exhibit 4.2

DESCRIPTION OF SECURITIES

 

References to the “Company” herein are, unless the context otherwise indicates, only to 1-800-FLOWERS.COM, Inc. and not to any of its subsidiaries.

 

Description of Capital Stock

 

General

 

The following is a summary of information concerning capital stock of the Company. The summaries and descriptions below do not purport to be complete statements of the relevant provisions of the Company’s Third Amended and Restated Certificate of Incorporation (“Charter”) and Second Amended and Restated By-laws, amended as of April 25, 2019 (the “By-laws”), and are entirely qualified by these documents.

 

Common Stock

 

Shares Outstanding. The Company is authorized to issue up to 200 million shares of Class A common stock, par value $.01 per share (the “Class A Common Stock”) and 200 million shares of Class B common stock, par value $.01 per share (the “Class B Common Stock” and together with Class A Common Stock, the “Common Stock”).

The Class A Common Stock is registered under Section 12 of the Securities Exchange Act of 1934 and listed on the Nasdaq Global Select Market under the ticker symbol “FLWS.”

 

Dividends. Subject to prior dividend rights of the holders of any shares of Series A preferred stock of the Company (“Preferred Stock”), holders of shares of Class A Common Stock are entitled to receive dividends when, as and if declared by the Company’s Board of Directors (the “Board”) out of assets or funds legally available for that purpose. Delaware law allows a corporation to pay dividends only out of surplus, as determined under Delaware law.

 

Voting Rights. Each share of Class A Common Stock is entitled to one vote, and each share of Class B Common Stock is entitled to ten votes, on all matters submitted to a vote of stockholders. Holders of Class A Common Stock and Class B Common Stock generally vote together as a single class on all matters presented to the stockholders for their vote or approval. Holders of shares of Common Stock do not have cumulative voting rights. This means a holder of a single share of Class A Common Stock cannot cast more than one vote (or ten votes, in the case of Class B Common Stock) for each position to be filled on the Board.

 

Other Rights. In the event of any liquidation, dissolution or winding up of the Company, after the satisfaction in full of the payment or provision for liabilities and liquidation preferences of holders of any shares of Preferred Stock, holders of shares of Class A Common Stock are entitled to ratable distribution of the remaining assets available for distribution to stockholders. The shares of Class A Common Stock are not subject to redemption by operation of a sinking fund or otherwise. Holders of shares of Class A Common Stock are not currently entitled to pre-emptive rights.

 

Fully Paid. The issued and outstanding shares of Class A Common Stock are fully paid and non-assessable. This means the full purchase price for the outstanding shares of Class A Common Stock has been paid and the holders of such shares will not be assessed any additional amounts for such shares. Any additional shares of Class A Common Stock that the Company may issue in the future will also be fully paid and non-assessable.

 

Anti-takeover Effects of Our Certificate of Incorporation and By-laws and Delaware Law

 

Some provisions of Delaware law, the Charter and By-laws could make the following more difficult:

	
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			acquisition of the Company by means of a tender offer,

			
	
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			acquisition of the Company by means of a proxy contest or otherwise, or

			
	
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			removal of the Company’s incumbent officers and directors.

			

 

These provisions, summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of the Company to first negotiate with the Board. The Company believes that the benefits of increased protection give it the potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us and outweigh the disadvantages of discouraging those proposals because negotiation of them could result in an improvement of their terms.

 

Size of Board and Vacancies

The By-laws provide that the Board will have one or more members, which number will be determined by resolution of the Board or by stockholders at the annual meeting of the stockholders. Directors are elected at each annual meeting of stockholders by the vote of majority shares present. Any director may be removed at any time, with or without cause, upon the affirmative vote of holders of a majority of the outstanding shares of Common Stock. Newly created directorships resulting from any increase in the Company’s authorized number of directors or any vacancies in the Board resulting from death, resignation, retirement, removal from office or other cause may be filled by the majority vote of the Company’s remaining directors in office, or by the sole remaining director.

 

Elimination of Stockholder Action by Written Consent

The Charter eliminates the right of the Company’s stockholders to act by written consent without a meeting. Stockholder action must take place at the annual or a special meeting of the Company’s stockholders.

 

Stockholder Meetings

Under the By-laws, only the Company’s Chairman of the Board, Chief Executive Officer, and the President or Secretary may call special meetings of the Company’s stockholders at the request in writing of two-thirds of the Board.

 

Requirements for Advance Notification of Stockholder Nominations and Proposals

The By-laws establish advance notice procedures with respect to stockholder proposals and nomination of candidates for election as directors other than nominations made by or at the direction of the Board or a committee of the Board.

 

Delaware Anti-takeover Law

The Company is subject to Section 203 of the Delaware General Corporation Law (“Section 203”), an anti-takeover law. 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 such person became an interested stockholder, unless the business combination or the transaction in which such person became an interested stockholder is approved in a prescribed manner. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. Generally, an “interested stockholder” is a person that, together with affiliates and associates, owns, or within three years prior to the determination of interested stockholder status did own, 15% or more of a corporation’s voting stock. The existence of this provision may have an anti-takeover effect with respect to transactions not approved in advance by the Board, including discouraging attempts that might result in a premium over the market price for the shares of Class A Common Stock.

 

No Cumulative Voting

Neither the Charter nor By-laws provide for cumulative voting in the election of directors.

 

Undesignated Preferred Stock

The authorization of the Company’s undesignated Preferred Stock makes it possible for the Board to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of the Company.EXHIBIT 4(g)

 

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES

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

 

As
of June 30, 2019, EVI Industries, Inc. (the “Company,” “we,” “us” or “our") had
one class of securities registered under Section 12 of the Securities Exchange Act of 1934: our common stock. 

 

DESCRIPTION
OF CAPITAL STOCK

 

The
following summary of the terms of our capital stock is based upon our Certificate of Incorporation and Bylaws, in each case, as
amended, and applicable provisions of Delaware law. The summary is not complete, and is qualified by reference to our Certificate
of Incorporation and Bylaws, in each case, as amended, which are filed as exhibits to this Annual Report on Form 10-K and are incorporated
by reference herein.

 

Authorized Capital Stock 

 

Our authorized capital stock consists of 20,000,000
shares of common stock, par value $0.025 per share, and 200,000 shares of preferred stock, par value $1.00 per share.

 

Common Stock

 

Voting Rights

 

The holders of our common stock are entitled
to one vote per share on all matters to be voted upon by our stockholders. As of the date of filing of this Annual Report on Form
10-K, our common stock is the only capital stock entitled to vote on the election of directors or any other matter submitted to
a vote of our stockholders. Our stockholders do not have cumulative voting rights with respect to the election of directors.

 

Dividends and Other Distribution; Liquidation Rights 

 

Subject to preferences that may be applicable
to any of series of preferred stock outstanding from time to time, the holders of our common stock are entitled to receive ratably
such dividends, if any, as may be declared from time to time by our Board of Directors out of funds legally available for that
purpose.

 

In the event of a liquidation, dissolution or
winding up of the Company, the holders of our common stock are entitled to share ratably in all assets remaining after payment
of liabilities, subject to prior distribution rights of our preferred stock, if any, then outstanding.

 

Fully Paid and Nonassessable

 

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

 

No Preemptive, Conversion or Subscription Rights; No Redemption
or Sinking Fund Provisions

 

Holders of our common stock have no preemptive
or conversion rights, and there are no sinking fund or redemption provisions relating to any shares of our common stock. In addition,
holders of our common stock do not have any subscription or other similar rights to purchase shares of any class of our capital
stock.

     

     

    

Additional Shares of Common Stock

 

We may issue additional authorized shares of
our common stock as authorized by our Board of Directors from time to time, without stockholder approval, except as may be required
by applicable stock exchange requirements.

 

Stock Exchange Listing 

 

Our common stock is listed on the NYSE American
under the ticker symbol “EVI.”

 

Transfer Agent and Registrar 

 

Computershare Trust Company, N.A. is the transfer
agent and registrar for our common stock.

 

Preferred Stock

 

As of the date of filing of this Annual Report
on Form 10-K, no shares of preferred stock of any series or class is outstanding.

 

Our Board of Directors, without further stockholder
authorization, is authorized to approve the issuance, from time to time, of shares of our preferred stock in one or more series,
to establish the number of shares to be included in any such series, and to fix the designations, powers, preferences and rights
of the shares of each such series and any qualifications, limitations or restrictions thereof, including the following:

 

		·	the title and stated value;

		·	the number of shares of the series;

		·	the liquidation preference per share;

		·	the dividend rate, period and payment date and method of calculation for dividends;

		·	whether dividends will be cumulative or non-cumulative and, if cumulative, the date from which dividends will accumulate;

		·	the procedures for any auction and remarketing, if any;

		·	the provisions for a sinking fund, if any;

		·	the provisions for redemption or repurchase, if applicable, and any restrictions on our ability to exercise those redemption
and repurchase rights;

		·	any listing or trading of the preferred stock on any securities exchange or interdealer quotation system;

		·	voting rights, if any;

		·	preemptive rights, if any;

		·	restrictions on transfer, sale or other assignment, if any;

		·	whether interests in the preferred stock will be represented by depositary shares;

		·	the relative ranking and preferences of the preferred stock as to dividend rights and rights if we liquidate, dissolve or wind
up our affairs;

		·	any limitations on the issuance of any class or series of preferred stock ranking senior to or on a parity with the series
of preferred stock as to dividend rights and rights if we liquidate, dissolve or wind up our affairs; and

		·	whether the preferred stock may be convertible into or exchangeable for our common stock or other securities, including, if
applicable, whether conversion or exchange is mandatory, at the option of the holder, or at our option, and any provisions relating
to the adjustment of the number of shares of our common stock or other securities that the holders of preferred stock would receive
upon conversion or exchange of the preferred stock under certain circumstances.

 

     

     

    

The full designations, powers, preferences and
rights of any preferred stock we may issue, as well as the qualifications, limitations or restrictions thereof, will be set forth
in a Certificate of Designation relating to such preferred stock.

 

Under Delaware law, holders of preferred stock
will have the right to vote separately as a class (or, in some cases, as a series) on an amendment to our Certificate of Incorporation
if the amendment would increase or decrease the par value of the shares of such class, alter or change the powers, preferences,
or special rights of the shares of such class so as to affect them adversely change or, unless the Certificate of Designation of
such class provides otherwise, increase or decrease the number of authorized shares of the class. This right is in addition to
any voting rights that may be provided for in the applicable Certificate of Designation.

 

The issuance of preferred stock, including in
a series with voting and/or conversion rights, may have the effect of delaying, deferring or preventing a change in control of
the Company and may adversely affect the voting and other rights of the holders of our common stock.

 

Certain Anti-Takeover Effects

 

Board Authority to Approve Preferred Stock Issuance

 

As described above, our Board of Directors,
without stockholder approval, has the authority under our Certificate of Incorporation to approve the issuance, from time to time,
of shares of our preferred stock in one or more series, to establish the number of shares to be included in any such series, and
to fix the designations, powers, preferences and rights of the shares of each such series and any qualifications, limitations or
restrictions thereof. Any such preferred stock could be issued quickly and easily, could adversely affect the rights of holders
of our common stock and, while it may not be issued as a defensive measure against takeovers, could have terms which may delay
or prevent a change of control of the Company or make removal of management more difficult.

 

Section 203 of the DGCL

 

In addition, as a Delaware corporation, we are
subject to the provisions of Section 203 of the Delaware General Corporation Law (the “DGCL”). Under Section 203 of
the DGCL, we would generally be prohibited from engaging in any business combination with any interested stockholder for a period
of three years following the time that such stockholder became an interested stockholder unless:

prior to such time, our Board of Directors approved either the business
combination or the transaction that resulted in the stockholder becoming an interested stockholder; upon consummation of the transaction
that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the our voting
stock outstanding at the time the transaction commenced, excluding shares owned by persons who are directors and also officers,
and by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held
subject to the plan will be tendered in a tender or exchange offer; or at or subsequent to such time, the business combination
is approved by our Board of Directors and authorized at an annual or special meeting of stockholders, and not by written consent,
by the affirmative vote of holders of at least 66 2/3% of our outstanding voting stock that is not owned by the interested stockholder.

 

Under Section 203 of the DGCL, a
“business combination” includes: any merger or consolidation involving the Delaware corporation, on the one hand,
and the interested stockholder, on the other hand; any sale, transfer, pledge or other disposition of 10% or more of the
assets of the Delaware corporation in a transaction involving the interested stockholder; subject to limited exceptions, any
transaction that results in the issuance or transfer by the Delaware corporation of any of its stock to the interested
stockholder; any transaction involving the Delaware corporation that has the effect of increasing the proportionate share of
any class of stock the corporation beneficially owned by the interested stockholder; or the receipt by the interested
stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the
Delaware corporation.

 

     

     

    

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

 

Indemnification of Directors and Officers 

 

As permitted by the DGCL, our Bylaws provide
for us to indemnify each of our current and former directors and officers who was or is a party or is threatened to be made a party
to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other
than a derivative action) by reason of the fact that he or she is or was a director or officer of the Company, or is or was serving
at our request as a director, officer, employee or agent of another entity, in each case, against expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such
action, suit or proceeding if he or she acted in good faith and in a manner that he or she reasonably believed to be in or not
opposed to our best interests and, with respect to any criminal action or proceeding, if he or she had no reasonable cause to believe
that his or her conduct was unlawful.

 

In addition, as permitted by the DGCL,
our Bylaws provide for us to indemnify each of our current and former directors and officers who was or is a party or is
threatened to be made a party to any threatened, pending or completed derivative action or suit (i.e., an action or suit
brought by or on behalf of the Company) by reason of the fact that he or she is or was a director or officer of the Company,
or is or was serving at our request as a director, officer, employee or agent of another entity, in each case, against
expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection with the defense or
settlement of such action or suit if he or she acted in good faith and in a manner that he or she reasonably believed to be
in or not opposed to our best interests; provided that no indemnification shall be made if such person shall have been
adjudged to be liable to us; provided further, however, that indemnification may be made to the extent that the court in
which the action or suit was brought determines that, despite the adjudication of liability but in view of all the
circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the court deems
proper. Our Bylaws also permit us to pay to our directors and officers expenses incurred in defending any action, suit or
proceeding in advance of its final disposition upon receipt by us of an undertaking, by or on behalf of the director or
officer, to repay the amounts so advanced if it is ultimately determined that such director or officer was not entitled to
indemnification.

 

The rights to indemnification and advancement
of expenses provided by our Bylaws are not exclusive of any other rights to which the person seeking indemnification or expense
advancement may be entitled.

 

As permitted by our Bylaws, we have also obtained
insurance policies insuring our directors and officers against certain liabilities which they may incur in such capacities.

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