Document:

EX-4.3

 EXHIBIT 4.3 

DATED [●], 2020 
  

 
 AMENDED AND
RESTATED WARRANT INSTRUMENT 
 APi Group Corporation 

 
  

 

 TABLE OF CONTENTS 

 

							
	 1.
	 	DEFINITIONS AND INTERPRETATION	  	 	1	 
	 2.
	 	CONSTITUTION AND FORM OF WARRANTS	  	 	5	 
	 3.
	 	WARRANT CERTIFICATES	  	 	5	 
	 4.
	 	EXERCISE OF WARRANTS	  	 	6	 
	 5.
	 	UNDERTAKINGS	  	 	9	 
	 6.
	 	ADJUSTMENT OF SUBSCRIPTION RIGHTS	  	 	9	 
	 7.
	 	MANDATORY REDEMPTION	  	 	10	 
	 8.
	 	GENERAL OFFERS AND LIQUIDATION	  	 	10	 
	 9.
	 	TRANSFER AND TITLE	  	 	11	 
	 10.
	 	MEETINGS OF WARRANTHOLDERS	  	 	11	 
	 11.
	 	MODIFICATIONS	  	 	12	 
	 12.
	 	PURCHASE, SURRENDER AND CANCELLATION	  	 	12	 
	 13.
	 	AVAILABILITY OF INSTRUMENT AND NOTICES	  	 	13	 
	 14.
	 	PURCHASE OF ORDINARY SHARES BY THE COMPANY	  	 	13	 
	 15.
	 	ENFORCEMENT	  	 	13	 
	 16.
	 	GOVERNING LAW	  	 	13	 
	 SCHEDULE 1 FORM OF WARRANT CERTIFICATE
	  			
	 SCHEDULE 2 REGISTRATION, TRANSFER AND TRANSMISSION
	  			
	 SCHEDULE 3 CONCERNING THE RIGHTS AGENT; MERGER, CONSOLIDATION OR CHANGE OF RECEIVING
AGENT
	  			

  

 THIS AMENDED AND RESTATED WARRANT INSTRUMENT IS EXECUTED ON [•], 2020 BY 

APi Group Corporation, a Delaware corporation (together with its successors and assigns, the “Company”). 

BACKGROUND 
  

	(A)	 By a resolution of the board of directors of the Company (the “Board”) passed on
September 19, 2017 the Board authorized the issuance by the Company of up to 125,032,500 Warrants (as defined in the Original Warrant Instrument (as defined below)) on the terms and subject to the conditions set out in the original Warrant
Instrument executed by way of deed poll on October 5, 2017, as supplemented by the Supplement dated September 2, 2019 (the “Original Warrant Instrument”), of which [•] are outstanding; 

 

	(B)	 As contemplated by the Business Combination Agreement entered into as of September 2, 2019, by and among
the Company, APi Group, Inc., the shareholders of APi Group, Inc., all of which are listed on the signature page thereto, Lee R. Anderson, Sr. and Shareholder Representative Services LLC, as shareholder representative, the Company changed its
jurisdiction of incorporation from the British Virgin Islands to the State of Delaware pursuant to Section 388 of the General Corporation Law of the State of Delaware (the “Domestication”) and, upon the effectiveness of such
Domestication pursuant to the DGCL (as defined below), the Company, as a domesticated Delaware corporation, is, for all purposes of the laws of the State of Delaware, deemed to be the same entity as the Company, as a domesticating British Virgin
Islands company; 

  

	(C)	 In connection with the Domestication, the shares of common stock into which the Ordinary Shares (as defined in
the Original Warrant Instrument) were exchanged and converted pursuant to the Domestication will be listed on the New York Stock Exchange (or any successor national securities exchange, the “NYSE”); 

 

	(D)	 By a resolution of the Board passed immediately following the effectiveness of the Domestication pursuant to
the DGCL (the “Domestication Effective Time”), the Board authorized this Amended and Restated Warrant Instrument, which amends and restates the Original Warrant Instrument, to (i) make clear that from and after the
Domestication Effective Time, references herein to the Company shall be deemed to be to the Company, as a Delaware corporation, (ii) reflect that from and after the Domestication Effective Time, the Company and its securities will be governed
by Delaware law, including the DGCL (rather than the BVI Companies Act, 2004 (as amended)), and the applicable provisions of the certificate of incorporation and bylaws of the Company, (iii) make certain changes in order to comply with
applicable Delaware law and (iv) reference the NYSE (rather than the London Stock Exchange (as defined in the Original Warrant Instrument)), in each case, pursuant to the power and authority granted to the Board by Clause 11.1 of the Original
Warrant Instrument; and 

  

	(E)	 The Company has accordingly determined to execute this Amended and Restated Warrant Instrument (as modified,
supplemented, amended or amended and restated from time to time, this “Instrument”) to set out the rights and interests of the Warrantholders (as defined below) and to incorporate the duties, obligations and immunities of the
Receiving Agent appointed under this Instrument. 

 OPERATIVE PROVISIONS 

 

	1.	 DEFINITIONS AND INTERPRETATION 

 

	1.1	 In this Instrument: 

 “Acquisition” means the initial acquisition by the Company or by any
subsidiary thereof (which may be in the form of a merger, capital stock exchange, asset acquisition, stock purchase, scheme of arrangement, reorganisation or similar business combination) of an interest in an operating company or business as will be
further described in the Prospectus (and, in the context of the Acquisition, references to a company without reference to a business and references to a business without reference to a company shall in both cases be construed to mean both a company
or a business); 
 “Adjustment Percentage” has the meaning given in Clause 6.1; 

“Admission” means admission of the Ordinary Shares and Warrants to the Official List and to trading on the London Stock
Exchange’s main market for listed securities; 
 “Articles” means the certificate of incorporation and bylaws of the
Company, in each case, as amended or amended and restated from time to time; 
 “Average Price” means for any security, as
of any date or relevant period (as applicable): (i) in respect of Ordinary Shares or any other security, the volume weighted average price for such security on the NYSE as reported by Bloomberg through its “Volume at Price” functions;
(ii) if the NYSE is not the principal securities exchange or trading market for that security, the volume weighted average price of that security on the principal securities exchange or trading market on which that security is listed or traded
as reported by Bloomberg through its “Volume at Price” functions; (iii) if the foregoing do not apply, the last closing trade price of that security in the over the counter market on the electronic bulletin board for that security as
reported by Bloomberg; or (iv) if no last closing trade price is reported for that security by Bloomberg, the last closing ask price of that security as reported by Bloomberg. If the Average Price cannot be calculated for that security on that
date on any of the foregoing bases, the Average Price of that security on such date shall be the fair market value as mutually determined by the Company and the Warrantholders representing a majority of the Ordinary Shares outstanding under the
Warrants (acting reasonably); 
 “business day” means any day (excluding a Saturday or a Sunday) on which banks in New York,
New York are open for business; 
 “DGCL” means the General Corporation Law of the State of Delaware (as amended); 

“Directors” means the directors of the Company from time to time; 

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended; 

“Exercise Price” means $11.50 per Ordinary Share (or such adjusted price as may be determined from to time in accordance with
the provisions of Clause 6 (Adjustment of Subscription Rights)), which is the aggregate amount payable for each Minimum Exercise Amount; 

“Extraordinary Resolution” means either: (a) a resolution passed at a meeting of the Warrantholders duly convened and
held and carried by not less than three-fourths of the votes cast; or (b) a resolution consented to in writing by or on behalf of Warrantholders representing not less than three-fourths of the aggregate number of outstanding Warrants in issue
and who then are entitled to receive notice of and vote at a meeting of Warrantholders; 
 “FCA” means the UK Financial
Conduct Authority; 
 “Form of Nomination” means in relation to any Warrant the form of nomination attached to the Warrant
Certificate; 
 “FSMA” means the UK Financial Services and Markets Act 2000, as amended; 

  
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 “Listing Rules” means the listing rules made by the UK Listing Authority
under section 73A of FSMA, as amended from time to time; 
 “London Stock Exchange” means London Stock Exchange plc; 

“Minimum Exercise Amount” means, as of the applicable time of determination, with respect to each exercise of Warrants, the
number of Warrants necessary for a Warrantholder to exercise to receive one whole Ordinary Share upon such exercise as determined by the Board, which number of Warrants shall have a value (as determined by the Board) of not less than the par value
of any such whole Ordinary Share; 
 “Official List” means the official list maintained by the UK Listing Authority; 

“Ordinary Shares” means shares of common stock, par value $0.0001 per share, of the Company, which shall include any
capital shares into which such shares of common stock shall have been changed (including, for the avoidance of doubt, following any continuation, merger, consolidation or similar action) or any share capital resulting from a reclassification of such
shares of common stock; 
 “Person” shall mean any individual, partnership, joint venture, limited liability company, firm,
corporation, unincorporated association or organization, trust or other entity, and shall include any successor (by merger or otherwise) of any such Person. 

“Portion” means, as of the applicable time of determination (as applicable) (i) from and after the date hereof through
the time immediately preceding the first adjustment (if any) under Clause 6, one third (1/3rd), (ii) from and after the time of the first adjustment (if any) under Clause 6 until the next
adjustment thereunder, the product of (x) one third (1/3rd) multiplied by (y) the applicable Adjustment Percentage that is calculated in respect of such first adjustment or
(iii) from and after the time of each successive adjustment (if any) under Clause 6, the product of (x) the fraction then in effect as previously determined pursuant to the immediately preceding clause (ii) or this clause (iii) (as
the case may be) multiplied by (y) the applicable Adjustment Percentage that is calculated in respect of such applicable adjustment, subject to adjustment in accordance with Clause 6.3; 

“Prospectus” means the prospectus published by the Company in connection with Admission on or around October 5, 2017;

 “Receiving Agent” means Computershare Inc., or such other receiving agent as the Registrar may appoint from time to time;

 “Redemption Event” has the meaning given in Clause 7.2; 

“Redemption Notice” means the notice to Warrantholders notifying the occurrence of a Redemption Event to be given pursuant to
Clause 7.3; 
 “Redemption Trigger Price” means $18 (subject to adjustment pursuant to Clause 7.5); 

“Register” means the register of Warrantholders required to be maintained pursuant to Clause 9.1; 

“Registrar” means Computershare Inc., or such other Person or Persons appointed by the Company from time to time to maintain
the Register; 
 “Regulation D” means Regulation D under the Securities Act; 

“Regulation S” means Regulation S under the Securities Act; 

  
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 “Rule 144” has the meaning set forth in Clause 4.13; 

“Rule 144A” means Rule 144A promulgated by the U.S. Securities and Exchange Commission under the Securities Act; 

“Securities Act” means the U.S. Securities Act of 1933, as amended; 

“Subscription Notice” means in relation to any Warrant the notice of subscription attached to the Warrant Certificate; 

“Subscription Period” means, in relation to any Warrant, the period commencing on the date of Admission and ending on the
earlier to occur of (i) 5:00 p.m. (New York, New York time) on the third anniversary of the completion of the Acquisition and (ii) such earlier date as is set forth in this Instrument, provided that if such day is not a Trading Day, the Trading
Day immediately following such day; 
 “Subscription Rights” means the rights to subscribe for Ordinary Shares granted by
the Company to Warrantholders pursuant to this Instrument; 
 “Trading Day” means a day on which the NYSE (or such other
applicable securities exchange or quotation system on which the Ordinary Shares or Warrants are listed) is open for business (other than a day on which the NYSE (or such other applicable securities exchange or quotation system) is scheduled to or
does close prior to its regular weekday closing time); 
 “UK Listing Authority” means the FCA in its capacity as the
competent authority for listing in the UK pursuant to Part VI of FSMA; 
 “U.S. Person” has the meaning given to the term
“U.S. Person” in Regulation S; 
 “Warrant Certificate” means a certificate evidencing a holding of Warrants in
certificated form, such certificate being in or substantially in the form set out in Schedule 1 (Form of Warrant Certificate) to this Instrument; 

“Warrantholder” means in relation to any Warrant, the Person or Persons who is or are then the registered holder or joint
holders of such Warrant in the Register; and 
 “Warrants” means each of the warrants to acquire Ordinary Shares constituted
by this Instrument and all rights conferred by this Instrument. 
  

	1.2	 The Clause headings are inserted for guidance only and shall not affect the meaning or interpretation of any
part of this Instrument. 

  

	1.3	 Reference to Clauses, sub-Clauses and Schedules in this Instrument are
references to the Clauses, sub-Clauses and Schedules of and to this Instrument. 

  

	1.4	 References to any statute or statutory provision include references to that statute or statutory provision as
from time to time amended, extended or re-enacted and to any rules, orders, regulations and delegated legislation made thereunder. 

 

	1.5	 Words importing the singular shall include the plural and vice versa; words importing the masculine shall
include the feminine and neuter and vice versa; words importing Persons shall include bodies corporate and partnerships. 

  

	1.6	 Any register, index, minute book or book of account required to be kept by this Instrument shall be kept, and
inspection thereof shall be allowed and copies shall be supplied, in such form and manner and subject to such precautions as would from time to time be permissible or required if it were a register, index, minute book or book of account required to
be kept by the DGCL and references to such records in the Instrument shall be construed accordingly. 

  
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	1.7	 A Warrant is “outstanding” unless the Subscription Rights attached to such Warrant have been
exercised in full or have lapsed in accordance with the provisions of this Instrument. 

  

	1.8	 Any reference to “writing” or “written” includes any method of reproducing words or text in
a legible and non-transitory form but, for the avoidance of doubt, shall not include e-mail. 

 

	1.9	 References to “$” are to the lawful currency of the United States as at the date of this Instrument.

  

	1.10	 References to times of the day are to that time in New York, New York and references to a day are to a period
of 24 hours running from midnight to midnight. 

  

	1.11	 Any reference to “Company” means the Company as a corporation incorporated under the laws of the
State of Delaware. 

  

	1.12	 References to “shares in the capital of” or “share capital” or similar terms in this
Instrument shall be construed so as to include shares in a corporation incorporated in the State of Delaware. 

  

	2.	 CONSTITUTION AND FORM OF WARRANTS 

 

	2.1	 The Company previously created and constituted, pursuant to a resolution of the Board passed on October 4,
2017, 125,032,500 warrants to subscribe for Ordinary Shares on the terms and subject to the conditions of the Original Warrant Instrument, of which [•] are outstanding. 

 

	2.2	 Each Warrant confers the right (but not the obligation) on the Warrantholder to subscribe for the applicable
Portion of an Ordinary Share during the Subscription Period on the terms and subject to the conditions set out in this Instrument. 

  

	2.3	 The Company undertakes to comply with the terms and conditions of this Instrument and specifically, but without
limitation, to do all such things and execute all such documents to the extent necessary in order to give effect to the exercise of any Subscription Rights in accordance with this Instrument. 

 

	2.4	 Upon the issue of any Warrant, the Company shall, or shall cause the Registrar to, enter the Person or Persons
to whom the Warrant is issued into the Register in respect of such Warrant. The Warrants registered in a Warrantholder’s name will be held in certificated form and will be evidenced by a Warrant Certificate issued by the Company.

  

	2.5	 The Company shall, upon exercise of all or any of the Warrants in accordance with Clause 4 (Exercise of
Warrants) from time to time during the Subscription Period, including, without limitation, the payment, in full, of the Exercise Price with respect thereto, forthwith issue the number of Ordinary Shares required to be issued in accordance with
the terms of this Instrument. 

  

	2.6	 The Warrants are issued subject to the Articles and otherwise on the terms and conditions of this Instrument,
which are binding upon the Company and each Warrantholder and all Persons claiming through them. 

  

	3.	 WARRANT CERTIFICATES 

 

	3.1	 Every Warrant Certificate shall be in the form or substantially in the form set out in Schedule 1 (Form of
Warrant Certificate) to this Instrument and shall have endorsed thereon a Subscription Notice and Form of Nomination, each in the form or substantially in the form set out in Schedule 1 (Form of Warrant Certificate) to this Instrument.

  
 5 

	3.2	 Every Warrantholder shall be entitled without charge to one Warrant Certificate for the Warrants held by him
save that joint holders shall be entitled to one certificate only in respect of the Warrants held by them jointly which certificate shall be delivered to the holder whose name stands first in the Register in respect of such joint holding. The
Company shall not be bound to register more than four Persons as joint holders of any Warrants. 

  

	3.3	 Where some but not all of the Warrants represented by any Warrant Certificate are transferred or exercised the
Company shall issue, free of charge, to the relevant Warrantholder a new Warrant Certificate in accordance with the other provisions of this Instrument for the balance of the Warrants retained by such Warrantholder. 

 

	3.4	 All Warrant Certificates shall be executed by or on behalf of the Company by such officers of the Company as
the Board may designate, either manually or by facsimile signature. Upon written request by the Company, the Warrant Certificates shall be countersigned, either manually or by facsimile signature, by an authorized signatory of the Receiving Agent,
but it shall not be necessary for the same signatory to countersign all of the Warrant Certificates hereunder. 

  

	3.5	 If a Warrant Certificate is mutilated, defaced, lost, stolen or destroyed, it shall, at the discretion of the
Company, be replaced at the office of the Registrar on payment of such expenses as may reasonably be incurred by the Company in connection therewith and on such terms as to evidence, indemnity and/or security as the Company may reasonably require.
Mutilated or defaced Warrant Certificates must be surrendered before replacements will be issued. 

  

	4.	 EXERCISE OF WARRANTS 

 

	4.1	 Subject to this Clause 4 and the terms and conditions of this Instrument, a Warrantholder may exercise all or
any portion of its Subscription Rights for all or any whole number of Ordinary Shares for which he is entitled to subscribe at any time during the Subscription Period. The exercise of Subscription Rights must be made subject to, and in compliance
with, any laws and regulations then in force and upon payment of any taxes, duties and other governmental charges payable by reason of the exercise (other than taxes and duties imposed on the Company). Each of the Registrar or the Receiving Agent
shall not have any duty or obligation to take any action under any section of this Instrument that requires the payment of taxes and/or charges unless and until it is satisfied that all such payments have been made. 

 

	4.2	 No fractions of an Ordinary Share will be issued to a Warrantholder upon exercise of any Warrants pursuant to
this Instrument. Where a Warrantholder purports to exercise Warrants for an aggregate amount (a “Purported Exercise Amount”) that is not equal to a multiple of the Minimum Exercise Amount, such purported exercise will only be valid
in respect of the amount of Warrants which are equal to the largest multiple of the Minimum Exercise Amount which is less than the Purported Exercise Amount (the “Largest Multiple Amount”), and the number of Warrants equal to the
Purported Exercise Amount less the Largest Multiple Amount shall lapse and be cancelled, and such Warrantholder will have no further Subscription Rights in respect of such Warrants. 

 

	4.3	 In order to exercise Subscription Rights, whether in whole or in part, Warrantholders must deliver or cause to
be delivered the relevant Warrant Certificate(s) to the Receiving Agent at the address of the Receiving Agent designated for such purposes, together with the Subscription Notice properly completed and duly signed, together with a remittance in
cleared funds for the Exercise Price in respect of the whole number of Ordinary Shares being acquired with respect to the Warrants being exercised. Once so delivered, a Subscription Notice shall be irrevocable unless consented to by the Board.

  
 6 

	4.4	 Warrants will be deemed to be exercised on the business day upon which the Receiving Agent (or such other
Person as shall have been notified to Warrantholders in accordance with Clause 13.2) shall have received the relevant documentation and remittance in cleared funds referred to in this Clause 4 (Exercise of Warrants). Subject to Subscription
Rights being validly exercised and value having been received by the Company in respect of the relevant remittance, and subject to Clause 4.6, the Company shall deliver the Ordinary Shares to be issued pursuant to the exercise of Subscription Rights
and enter (or cause to be entered into) the holder of such Ordinary Shares in the Company’s register of shareholders not later than 10 days after the date on which such Subscription Rights are exercised. If an adjustment is made pursuant to
Clause 6 after the exercise date but before the relevant Ordinary Shares have been issued, the Warrantholder will receive such number of Ordinary Shares as it would have received had the exercise taken place following the adjustment taking effect.

  

	4.5	 Subject to Clause 4.6, as soon as practicable following the exercise of Subscription Rights in accordance with
the terms of this Instrument and, in any event, not later than 28 days after the date on which such Subscription Rights are exercised, the Company shall issue (or shall cause to be issued): 

 

	 	4.5.1	 a certificate for the Ordinary Shares in the name of such Warrantholder or such other Person as may be named on
the Form of Nomination set out in the Warrant Certificate (subject to applicable law and to payment of stamp duty, stamp duty reserve tax or any similar tax as may be applicable); and 

 

	 	4.5.2	 in the event of a partial exercise of Subscription Rights by any Warrantholder, a Warrant Certificate in the
name of such Warrantholder in respect of the balance of the Warrants represented by the relevant Warrant Certificate that remain outstanding. 

The certificate for the Ordinary Shares arising on the exercise of Warrants (together with any balancing Warrant Certificate) will be delivered
at the risk of the Person entitled thereto to the address of such Person or (in the case of a joint holding) to that one of them whose name stands first in the Register or relevant Form of Nomination and will be sent by ordinary mail. 

 

	4.6	 At any time when the Ordinary Shares are capable of electronic settlement in uncertificated form, whether on
any securities exchange or quotation system on which the Ordinary Shares are traded or quoted or otherwise, the Ordinary Shares to be issued upon the exercise of Subscription Rights may, at the absolute discretion of the Board and subject to the
adoption by the Board of a resolution or resolutions providing for uncertificated shares to the extent required by the DGCL, be issued in uncertificated form (whether in the form of depositary interests or otherwise) in such manner as the Company
may notify the Warrantholders, the Registrar and the Receiving Agent. 

  

	4.7	 Every Warrant in respect of which Subscription Rights: 

 

	 	4.7.1	 have been exercised in full; or 

 

	 	4.7.2	 have not been exercised (whether in whole or in part) during the Subscription Period, 

shall lapse and be cancelled and Warrantholders will have no further Subscription Rights in respect of such Warrants and such Warrants may not
be re-issued or re-sold. 

  
 7 

	4.8	 Ordinary Shares issued pursuant to the exercise of Warrants in accordance with the terms of this Instrument
shall be issued fully paid and free from any liens, charges or encumbrances and pre-emptive rights but shall not rank for any dividends or other distributions declared, made or paid on the Ordinary Shares for
which the record date is prior to the relevant day on which the Warrants are exercised but, subject thereto, shall rank in full for all dividends and other distributions declared, made or paid on the Ordinary Shares on or after the relevant day on
which the Warrants are exercised and otherwise pari passu in all respects with the Ordinary Shares in issue at that date. 

  

	4.9	 At any time when the Ordinary Shares are listed on the NYSE or any other securities exchange or quotation
system, it is the intention of the Company to apply to the NYSE or relevant authority for any other securities exchange or quotation system, for the Ordinary Shares issued pursuant to any exercise of Warrants to be admitted to the NYSE or such other
securities exchange or quotation system on which the Ordinary Shares are traded or quoted. 

  

	4.10	 The exercise of Subscription Rights by any holder or beneficial owner of Warrants who is a U.S. Person will be
subject to such requirements, conditions, restrictions, limitations and/or prohibitions as the Company may at any time impose, in its absolute discretion, for the purpose of complying with the securities laws of the United States (including, without
limitation, the Securities Act, the Exchange Act, the U.S. Investment Company Act, and any rules or regulations promulgated under such acts). 

  

	4.11	 Intentionally Omitted. 

 

	4.12	 The Registrar, the Receiving Agent and the Company reserve the right to delay taking any action on any
particular instructions from the Warrantholder if any of them considers that it needs to do so to obtain further information from the Warrantholder or to comply with any legal or regulatory requirement binding on it (including the obtaining of
evidence of identity to comply with money laundering regulations), or to investigate any concerns they may have about the validity of or any other matter relating to the instruction. 

 

	4.13	 The Company shall not be obliged to issue and deliver Ordinary Shares pursuant to the exercise of a Warrant
unless: (i) such Ordinary Shares have been registered or qualified or deemed to be exempt under the securities laws of the jurisdiction of state of residence of the Warrantholder; (ii) a registration statement under the Securities Act with
respect to the Ordinary Shares is effective; (iii) the Warrantholder provides the Company with reasonable assurance that such Ordinary Shares can be sold, novated or transferred pursuant to Rule 144 promulgated under the Securities Act (or a
successor rule thereto) (“Rule 144”) or Rule 144A (or any successor rule thereto) and the applicable sale of the Ordinary Shares to be made in reliance on Rule 144 is made in accordance with the terms of Rule 144; or (iv) in
the opinion of legal counsel to the Company, the exercise of the Warrants is exempt from the registration requirements of the Securities Act and such Ordinary Shares are qualified for sale or exempt from qualification under applicable securities
laws of jurisdictions in which the Warrantholder resides. Warrants may not be exercised by, or Ordinary Shares issued or delivered to, any Warrantholder in any state or other jurisdiction in which such exercise or issue and delivery of Ordinary
Shares would be unlawful. 

  

	4.14	 At any time during the Subscription Period, the Board will have the discretion to refuse to accept a notice of
exercise of Subscription Rights to the extent such exercise may affect the Company’s ability to meet the requirements in Listing Rule 14.3.2 (or similar rule of any other securities exchange or quotation system on which the Ordinary Shares or
Warrants are traded or quoted). 

  
 8 

	5.	 UNDERTAKINGS 

Subject to the provisions of Clause 6 and, unless otherwise authorized by an Extraordinary Resolution, while any Subscription Rights remain
outstanding, the Company shall, to the fullest extent permitted by applicable law, at all times maintain all requisite Board and shareholder or other authorizations necessary to enable the issue of Ordinary Shares (free from any pre-emptive rights) pursuant to the exercise of all the Warrants outstanding from time to time. 
  

	6.	 ADJUSTMENT OF SUBSCRIPTION RIGHTS 

 

	6.1	 If the Company, at any time while Subscription Rights are outstanding, (i) issues any Ordinary Shares by
way of dividend or distribution to holders of Ordinary Shares (solely in their capacity as holders of Ordinary Shares), (ii) subdivides (by any share split, recapitalization or otherwise) the number of Ordinary Shares outstanding into a larger
number of Ordinary Shares or (iii) consolidates (by consolidation, combination, reverse share split or otherwise) the number of outstanding Ordinary Shares into a smaller number of Ordinary Shares, then in each such case the Exercise Price
shall be divided by the quotient of (x) the number of Ordinary Shares outstanding immediately after such event divided by (y) number of Ordinary Shares outstanding immediately before such event (the result of such quotient is referred to
herein the “Adjustment Percentage”). Any adjustment made pursuant to sub clause (i) shall become effective immediately after the record date for the determination of shareholders entitled to receive such dividend or
distribution, and any adjustment pursuant to sub clause (ii) or (iii) shall become effective immediately after the effective date of such subdivision or consolidation. Following each adjustment to the Exercise Price pursuant to the
immediately preceding sub clauses (i), (ii) or (iii), the Portion shall also be adjusted in accordance with the definition thereof so that after such adjustment the aggregate Exercise Price payable hereunder shall be the same as the aggregate
Exercise Price in effect immediately prior to such adjustment. 

  

	6.2	 On any adjustment to the Exercise Price pursuant to this Clause 6, the resultant Exercise Price, if not an
integral multiple of one cent, will be rounded to the nearest cent (0.5 cents being rounded upwards); provided, however, that in no event shall the Exercise Price be reduced to below the par value of an Ordinary Share. 

 

	6.3	 If: 

  

	 	(i)	 the Board determines that an adjustment should be made to the Exercise Price and/or the Portion to which each
Warrant relates as a result of one or more events or circumstances not referred to in Clause 6.1; or 

  

	 	(ii)	 an event which gives or may give rise to an adjustment under Clause 6.1 occurs in circumstances such that the
Board, in its absolute discretion, determines that the adjustment provisions of Clause 6.1 need to be operated subject to some modification in order to give a result which is fair and reasonable in all the circumstances, 

then the Board may make any adjustment to the Exercise Price and/or Portion or modification to the operation of Clause 6.1 as it determines in
good faith to be fair and reasonable to take account of the relevant event or circumstance and upon determination the adjustment (if any) will be made and will take effect in accordance with the determination. 

Whenever an adjustment is made or any event affecting the Warrants or their exercisability, the Company shall (i) promptly prepare a
certificate setting forth such adjustment or describing such event, and a brief, reasonably detailed statement of the facts, computation and methodology accounting for such adjustment, and (ii) promptly file with the Receiving Agent and with
each transfer agent for the Ordinary Shares a copy of such certificate. The Receiving Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein contained and shall have no duty or liability with
respect to and shall not be deemed to have knowledge of any such adjustment or any such event unless and until it shall have received such certificate. 

  
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	7.	 MANDATORY REDEMPTION 

 

	7.1	 Upon the occurrence of the Redemption Event, each Warrant, unless previously exercised or cancelled before the
date set for redemption in accordance with Clause 7.3, will be mandatorily redeemed by the Company for $0.01 per Warrant. 

  

	7.2	 The “Redemption Event” occurs if the Average Price of an Ordinary Share for any ten consecutive
Trading Days is equal to or greater than the Redemption Trigger Price (the “Redemption Event”). 

  

	7.3	 The Company will give Warrantholders notice of the Redemption Event having occurred within 20 days of its
occurrence in accordance with the terms of this Instrument and will redeem all Warrants to be redeemed on the date set by the Redemption Notice, being a date no longer than 30 days following the occurrence of the Redemption Event. Any Warrant which
is exercised before the date set for redemption by the Redemption Notice will not be redeemed. 

  

	7.4	 On the date set for redemption by the Redemption Notice, the Company shall pay to each holder of Warrants to be
redeemed the amount due in respect of such redemption and upon making such payment the relevant Warrant will be cancelled. 

  

	7.5	 If the Board determines that an adjustment should be made to the Redemption Trigger Price as a result of
matters such as any subsequent consolidation or subdivision of the Ordinary Shares or issue of Ordinary Shares to shareholders by way of dividend or distribution, the Board shall determine in good faith as soon as practicable what adjustment (if
any) to the Redemption Trigger Price is fair and reasonable and upon determination the adjustment (if any) will be made and will take effect in accordance with the determination. 

 

	8.	 GENERAL OFFERS AND LIQUIDATION 

 

	8.1	 While any Subscription Rights remain outstanding, if at any time an offer is made to all holders of Ordinary
Shares (or all such holders other than the offeror and/or any company controlled by the offeror and/or Persons acting in concert with the offeror) to acquire all or some of the issued Ordinary Shares and the Company becomes aware on or before the
end of the Subscription Period that as a result of such offer (or as a result of such offer and any other offer made by the offeror) the right to cast a majority of the votes which may ordinarily be cast generally at a meeting of shareholders of the
Company has or will become vested in the offeror and/or such companies or Persons as aforesaid, the Company will give notice to the Warrantholders of such vesting within 14 days of it occurring, and each such Warrantholder will be entitled, at any
time within the period of 30 days immediately following the date of such notice, to exercise his Subscription Rights on the terms on which the same could have been exercised if they had been exercisable and had been exercised on the date of such
notice after which time all Subscription Rights will lapse. If any part of such period falls after the end of the Subscription Period, the end of the Subscription Period will be deemed to be the last business day of that 30 day period.

  

	8.2	 Intentionally Omitted. 

 

	8.3	 If the Company shall be dissolved, all Subscription Rights will lapse on the date of the dissolution.

  
 10 

	9.	 TRANSFER AND TITLE 

 

	9.1	 Warrants shall be transferable individually and in integral multiples by way of novation by an instrument of
transfer in any usual or common form or such other form as may be approved by or on behalf of the Company. The Registrar shall maintain a register of Warrantholders in registered form and the provisions of Schedule 2 (Registration, Transfer and
Transmission) relating to the transfer, transmission and registration of Warrants shall have full effect as if the same had been incorporated in this Instrument. 

 

	9.2	 The Company shall be entitled to appoint such Person or Persons as the Company thinks fit as the Registrar and
to remove any such Person or Persons and make a new appointment in their place. The Company shall forthwith give a notice of any change in the identity or address of the Registrar in accordance with Clause 13.2. 

 

	9.3	 The registered holder of a Warrant shall be treated as its absolute owner for all purposes notwithstanding any
notice of ownership or notice of previous loss or theft or of trust or other interest therein (except as ordered by a court of competent jurisdiction or required by applicable law). The Company and the Receiving Agent shall not (except as stated
above) be bound to recognize any other claim to or interest in any Warrant. 

  

	9.4	 Intentionally Omitted. 

 

	9.5	 Subject to compliance with all applicable laws and regulations then in force, the Company may make arrangements
to enable Warrants to be held in uncertificated form (whether in the form of depositary interests or otherwise) in such manner as the Board may determine from time to time. 

 

	10.	 MEETINGS OF WARRANTHOLDERS 

 

	10.1	 All the provisions of the Articles as to general meetings apply mutatis mutandis to meetings of
Warrantholders as though the Warrants were a class of shares forming part of the capital of the Company, but: 

  

	 	10.1.1	 the necessary quorum is the requisite number of Warrantholders (present in person or by proxy) entitled to
subscribe for two-tenths in number of the Ordinary Shares attributable to such outstanding Warrants; 

  

	 	10.1.2	 every Warrantholder present in person or by proxy at any such meeting is entitled to one vote for each Ordinary
Share for which he is entitled to subscribe; and 

  

	 	10.1.3	 if at any adjourned or postponed meeting a quorum as above defined is not present, the Warrantholder or
Warrantholders then present in person or by proxy are a quorum. 

  

	10.2	 Without prejudice to the generality of the foregoing, the Warrantholders, by way of Extraordinary Resolution,
shall have power to: 

  

	 	10.2.1	 sanction any compromise or arrangement proposed to be made between the Company and the Warrantholders or any of
them; 

  

	 	10.2.2	 sanction any proposal by the Company for modification, abrogation, variation or compromise of, or arrangement
in respect of the rights of the Warrantholders against the Company whether such rights shall arise under this Instrument or otherwise; 

  
 11 

	 	10.2.3	 sanction any proposal by the Company for the exchange or substitution for the Warrants of, or the conversion of
the Warrants into, shares, stock, bonds, debentures, debenture stock, warrants or other obligations or securities of the Company or any other body corporate formed or to be formed; 

 

	 	10.2.4	 assent to any modification of the conditions to which the Warrants are subject and/or the provisions contained
in this Instrument which shall be proposed by the Company; 

  

	 	10.2.5	 authorize any Person to concur in and execute and do all such documents, acts and things as may be necessary to
carry out and give effect to any Extraordinary Resolution; 

  

	 	10.2.6	 discharge or exonerate any Person from any liability in respect of any act or omission for which such Person
may have become responsible under this Instrument; and 

  

	 	10.2.7	 give any authority, direction or sanction which under the provisions of this Instrument is required to be given
by Extraordinary Resolution. 

  

	10.3	 An Extraordinary Resolution consented to in writing may be contained in one document or several documents in
the same form, each signed by or on behalf of one or more Warrantholders. 

  

	11.	 MODIFICATIONS 

 

	11.1	 Any modification to this Instrument and any of the rights attached to the Warrants may be effected only by an
instrument in writing, executed by the Company and expressed to be supplemental to this Instrument and, save in the case of a modification which is of a formal, minor or technical nature or made to correct a manifest error or a modification deemed
necessary or desirable by the Board in its absolute discretion (acting in good faith) and which the Board determines in its absolute discretion (acting in good faith) does not adversely affect the interests of Warrantholders, only if it shall first
have been sanctioned by an Extraordinary Resolution of the Warrantholders. Notwithstanding the foregoing, the Company may lower the Exercise Price (permanently or for limited duration) or extend the duration of the Subscription Period without the
prior sanction, consent or approval of Warrantholders. Upon the delivery of a certificate from an authorized officer of the Company and which states that the proposed modification is in compliance with the terms of this Section 11.1, the
Receiving Agent shall execute such modification. Notwithstanding anything in this Instrument to the contrary, the Receiving Agent shall not be required to execute any modification to this Instrument that it has determined would adversely affect its
own rights, duties, obligations or immunities under this Instrument. No modification to this Instrument shall be effective unless duly executed by the Receiving Agent. 

 

	11.2	 Notice of every modification to this Instrument shall be given by the Company to the Warrantholders in
accordance with Clause 13.2. 

  

	12.	 PURCHASE, SURRENDER AND CANCELLATION 

 

	12.1	 The Company may at any time purchase, from one or more Warrantholders, Warrants, whether:

  

	 	12.1.1	 by tender at any price; or 

 

	 	12.1.2	 on or through the market; or 

 

	 	12.1.3	 by private treaty at any price, 

  
 12 

 or otherwise, on such terms as the Board, in its absolute discretion (acting in good faith)
determines; provided that such purchases are made in accordance with applicable laws and regulations and the rules of any stock exchange or trading platform on which Warrants are listed or traded. 

 

	12.2	 The Company shall accept the surrender (for no consideration) of Warrants at any time. 

 

	12.3	 All Warrants purchased pursuant to Clause 12.1 or surrendered shall be cancelled forthwith and may not be
reissued or sold. 

  

	13.	 AVAILABILITY OF INSTRUMENT AND NOTICES 

 

	13.1	 Every Warrantholder shall be entitled to inspect a copy of this Instrument at the offices of the Receiving
Agent designated for such purposes (which initially shall be or such other Registrar’s agent and address as the Registrar may appoint), during normal business hours, and shall be entitled to receive a copy of this Instrument against payment of
such charges as the Board may impose in its absolute discretion. 

  

	13.2	 Notices to be given pursuant to the provisions of this Instrument shall be given in accordance with paragraph 4
of Schedule 2 (Registration, Transfer and Transmission). 

  

	13.3	 The Company will use reasonable efforts to give written notice to each Warrantholder at least fifteen calendar
days prior to the date on which the Company closes its books or takes a record (A) with respect to any distribution on the Ordinary Shares or (B) for determining rights to vote with respect to any voluntary dissolution or voluntary
liquidation of the Company. 

  

	14.	 PURCHASE OF ORDINARY SHARES BY THE COMPANY 

The Company may at any time purchase Ordinary Shares, or arrange for the purchase of Ordinary Shares on its behalf or by any other member of
its group, and whether by way of tender offer, without requiring, in each case, the consent of Warrantholders for such purchase. 
  

	15.	 ENFORCEMENT 

  

	15.1	 The Company acknowledges and covenants that the benefit of the covenants, obligations and conditions on the
part of or binding upon it contained in this Instrument and the Schedules hereto shall inure to the benefit of each and every Warrantholder and the Registrar and Receiving Agent and each of its successors and assigns. 

 

	15.2	 Each Warrantholder shall be entitled to enforce the said covenants, obligations and conditions against the
Company insofar as such Warrantholder’s Warrant is concerned, without the need to join the beneficiary of any such Warrant or any intervening or other Warrantholder in the proceedings for such enforcement. 

 

	16.	 GOVERNING LAW 

 

	16.1	 This Instrument and the Warrants and any dispute or claim arising out of or in connection with any of them or
their subject matter or formation (including non-contractual disputes or claims) shall be governed by, and construed in accordance with, the laws of the State of Delaware (without regard to conflict of laws
principles), all rights and remedies being governed by said laws. 

  

	16.2	 A state or federal court located within the State of Delaware shall have exclusive jurisdiction to settle any
dispute or claim arising out of or in connection with this Instrument or any Warrant or their subject matter or formation (including non-contractual disputes or claims). 

  
 13 

	17.	 SEVERABILITY 

  

	17.1	 If any term, provision, covenant or restriction of this Instrument is held by a court of competent jurisdiction
or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Instrument shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided,
however, that if such excluded provision shall affect the rights, immunities, liabilities, duties or obligations of the Receiving Agent, the Receiving Agent shall be entitled to resign immediately upon written notice to the Company.

  

	18.	 FORCE MAJEURE 

 

	18.1	 Notwithstanding anything to the contrary contained herein, the Receiving Agent shall not be liable for any
delays or failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, epidemics, pandemics, terrorist acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunctions of
any utilities, communications, or computer facilities, or loss of data due to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war or civil unrest. 

 

	19.	 CONCERNING THE RECEIVING AGENT 

The rights, duties and immunities of the Receiving Agent are set forth on Schedule 3 attached hereto and incorporated herein by reference. The
parties hereto acknowledge and agree that all references to the Receiving Agent shall include Computershare Inc. in its capacity as Registrar, as applicable. 

[Signature Page Follows] 

  
 14 

 IN WITNESS THEREOF this Instrument has been executed by the Company on the date first written above.

  

	
	API GROUP CORPORATION
	
	   

	Name:
	Title:

 IN WITNESS THEREOF this Instrument has been executed by Computershare Inc. on the date first written
above. 
  

	
	COMPUTERSHARE INC.
	
	   

	Name:
	Title:

 SCHEDULE 1 

FORM OF WARRANT CERTIFICATE 
 THE
SECURITIES REPRESENTED BY THIS WARRANT CERTIFICATE (INCLUDING THE SECURITIES ISSUABLE UPON THE EXERCISE OF ANY WARRANT) ARE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE AMENDED AND RESTATED WARRANT INSTRUMENT DATED [•], 2020, EXECUTED
BY THE COMPANY (AS MODIFIED, SUPPLEMENTED, AMENDED OR AMENDED AND RESTATED FROM TIME TO TIME, THE “WARRANT INSTRUMENT”), WHICH WARRANT INSTRUMENT IS INCORPORATED HEREIN BY REFERENCE. COPIES OF THE WARRANT INSTRUMENT MAY BE OBTAINED
BY THE HOLDER HEREOF AT THE OFFICES OF THE REGISTRAR’S AGENT, WHO INITIALLY IS COMPUTERSHARE INC. WITH OFFICES AT THE ADDRESS BELOW (OR SUCH OTHER REGISTRAR’S AGENT AND ADDRESS AS THE REGISTRAR MAY APPOINT).  
 SEE ANNEX A TO THIS WARRANT CERTIFICATE FOR ADDITIONAL RESTRICTIVE LEGENDS APPLICABLE TO
THIS WARRANT 
  

			
	No. of Certificate:	  	[•]
		
	Number of Warrants:	  	[•]
		
	Date of issue:	  	[•]

 Warrants to subscribe for Ordinary Share(s) in 

APi Group Corporation 
 This is to certify that
[•] 
 of [•] 
 is/are the registered holder(s) of
[•] Warrants in APi Group Corporation (the “Company”) issued pursuant to and in accordance with the terms of the Warrant Instrument (the “Warrant Instrument”) executed by the Company and the Receiving Agent
thereunder. 
 Words and expressions used in this Warrant Certificate, the Subscription Notice and the Form of Nomination incorporated into this Warrant
Certificate by reference shall have the same meanings as in the Warrant Instrument. 
 The registered holder is entitled in respect of every one Warrant
held to subscribe for the applicable Portion of an Ordinary Share during the Subscription Period on the terms and conditions set forth in the Warrant Instrument. At the date of issue of this certificate, the applicable Portion is [one-third] [insert applicable Portion if there has been a prior adjustment] of an Ordinary Share. 
 Warrants are
exercisable only as specified in Clause 4 of the Warrant Instrument. 
 Transfer of any of the Warrants comprised herein will not be registered without
production of this Warrant Certificate. 
 The Warrant Instrument is enforceable severally by each Warrantholder and is available for inspection at the
offices of the Receiving Agent designated for such purposes (which initially shall be at 150 Royal Street, Canton, MA 02021, U.S.) or such other Registrar’s agent and address as the Registrar may appoint, until the end of the Subscription
Period. 

  
 1 

 This Warrant Certificate is subject to all of the terms, provisions and conditions of the Warrant
Instrument, which terms, provisions and conditions are hereby incorporated herein by reference and made a part hereof and to which Warrant Instrument reference is hereby made for a full description of the rights, limitations of rights, obligations,
duties and immunities hereunder of the Company and the holders of the Warrant Certificates. 
  

	
	API GROUP CORPORATION
	
	   

	Name:
	Title:
	COMPUTERSHARE INC.
	
	   

	Name:
	Title:

  
 2 

 ANNEX A 

PRIOR TO INVESTING IN THE SECURITIES OR CONDUCTING ANY TRANSACTIONS IN THE SECURITIES, INVESTORS ARE ADVISED TO CONSULT PROFESSIONAL ADVISERS REGARDING THE
RESTRICTIONS ON TRANSFER SUMMARIZED BELOW AND ANY OTHER RESTRICTIONS. 

 SUBSCRIPTION NOTICE 

In order to exercise all or any of the Warrants represented by this Warrant Certificate, this Warrant Certificate must be submitted with this Subscription
Notice duly completed and signed, together with the payment in cleared funds referred to below, to the Registrar’s Receiving Agent, who is initially Computershare Inc. located at 150 Royal Street, Canton, MA 02021, U.S. (or such other Receiving
Agent and address as the Registrar may appoint). 
  

	To:	 The Board of Directors of APi Group Corporation (the “Company”) 

I/We the undersigned, being the registered holder(s) of the Warrants comprised in this Warrant Certificate (and the several Warrant Certificates (if any)
enclosed with this Subscription Notice) hereby give(s) notice of his/their wish to exercise                      Warrant(s) to subscribe for Ordinary
Share(s) in accordance with the provisions of the Warrant Instrument. 
 I/We enclose payment for
$             in favor of the Company being the aggregate payment of the full subscription price for the total number of such Warrants.* 

* Please contact the Receiving Agent if you wish to pay by way of electronic transfer. 

I/We direct you to deliver the registered Ordinary Share(s) issued pursuant hereto to the Person(s) whose name(s) and address(es) is/are set out in the Form
of Nomination set out below and who has signed the acceptance set out therein or, if none is set out, to me/us in which event I/we agree to accept such shares subject to the Articles. I/We authorize and request the entry of the name(s) of such
Persons in the register of shareholders of the Company in respect thereof. 
 I/We require the delivery of: 

 

	(a)	 certificates in respect of the Ordinary Share(s) to be issued to such Persons; and 

 

	(b)	 a Warrant Certificate in the name(s) of such Persons for any balance of my/our Warrants remaining exercisable,

 at the risk of such Persons to such address as is set out in the Form of Nomination or, if none is set out, to my/our address set out
in the Register of Warrantholders or (in the case of joint holders) to the address of that one whose name stands first in such form of Nomination or (if applicable) Register in respect of the Warrants represented by this Warrant Certificate by
ordinary mail. 
  

					
	Dated	  		  	
			
	Signature(s)        	  	  
	  	
			
		  	  
	  	
			
		  	  
	  	

 GUIDANCE NOTES: 
 Exercise of the
Warrants represented by this Warrant Certificate may be consolidated with the exercise of Warrants represented by other Warrant Certificates by the use of only one Subscription Notice, provided that the other Warrant Certificates are attached to the
Subscription Notice. 
 In the case of joint holdings, all joint holders must sign. 

  
 1 

 FORM OF NOMINATION 

Please insert in BLOCK CAPITALS in the box below the full name(s) of the Person(s) to whom you wish the Ordinary Share(s) arising on the exercise of
your Warrants to be issued and the address to which any certificate for such Ordinary Share(s) together with any balance certificate for Warrants should be sent and the address of the sole or first-named Warrantholder. 

 

	
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 I/We agree to accept all the fully
paid Ordinary Share(s) to be issued to me/us subject to the Articles.
  

Signed                         
                                         
   
  

Dated                         
                                         
     

	 

 If the above box is left blank in the case of Warrants held in certificated form, the Ordinary Share(s) will be issued to the
Warrantholder(s) named in the attached Warrant Certificate and any certificate for such Ordinary Share(s) together with any balance Warrant Certificate will be sent to the registered address of the sole or first-named Warrantholder. 

  
 2 

 SCHEDULE 2 

REGISTRATION, TRANSFER AND TRANSMISSION 
  

	1.	 REGISTRATION AND TITLE 

 

	1.1	 An accurate register of the Warrants (the “Register”) will be kept by the Registrar and there
shall be entered in the Register: 

  

	 	1.1.1	 the names and addresses of the Warrantholders; 

 

	 	1.1.2	 the amount of Warrants held by every registered holder; and 

 

	 	1.1.3	 the date upon which the name of every such registered holder is entered in respect of the Warrants standing in
his name. 

  

	1.2	 Any change of name or address on the part of a Warrantholder shall forthwith be notified to the Registrar at
the office of its agent, who is initially Computershare Inc. with offices at 150 Royal Street, Canton, MA 02021, U.S. (or such other Registrar’s agent and address as the Registrar may appoint), who shall cause the Register to be altered
accordingly. The Register may be closed by the Company for such period or periods and at such times as it may think fit provided that it shall not be closed for more than thirty days in any calendar year. Any transfer made while the Register is so
closed shall, as between the Company and the Person claiming under the transfer (but not otherwise), be considered as made immediately after the reopening of the Register. The Warrantholders or any of them, and any Person duly authorized by any such
holder, shall be permitted at all reasonable times during office hours to inspect the Register and to take copies of or extracts from the same or any part thereof. 

 

	1.3	 The Company, the Registrar and the Receiving Agent shall be entitled to treat the registered holder of any
Warrant as the absolute owner thereof for all purposes notwithstanding any notice of ownership or writing thereon or notice of previous loss or theft or of trust (whether express or implied) or other interest therein (except as ordered by a court of
competent jurisdiction or required by applicable law) and shall not (except as aforesaid) be bound to recognize any equitable or other claim to or interest in such Warrant. 

 

	1.4	 Every Warrantholder will be recognized by the Company as entitled to his Warrants free from any equity, set-off or cross-claim on the part of the Company against the original or any intermediate holder of the Warrants. 

  

	2.	 TRANSFER 

  

	2.1	 Warrants shall be transferable individually and in integral multiples by way of novation by an instrument of
transfer in any usual or common form or such other form as may be approved by or on behalf of the Board. The instrument of transfer of a Warrant shall be duly signed by or on behalf of the transferor and by or on behalf of the transferee. Entry in
the Register of a transferee’s name and/or details of Warrants transferred shall be the Company’s and transferor’s agreement in respect of each novation and upon registration all the rights of the transferor in respect of Warrants
transferred shall cease. In consideration of (inter alia) the transferee agreeing to be registered as the holder of Warrants the Company shall assume such obligations towards the transferee and the transferee shall have such rights in respect
of such Warrants as are set out under the terms of this Instrument. The transferor shall be deemed to remain the holder of the Warrant until the name of the transferee is entered in the Register in respect thereof. The Company shall not be obliged
to give effect to any such instrument which purports to transfer any Warrants in respect of which a Subscription Notice shall have been received. 

  
 1 

	2.2	 The Company, the Registrar and the Receiving Agent may decline to recognize any instrument of transfer unless
such instrument is duly executed properly completed and deposited at the office of the Receiving Agent designated for such purposes (which initially shall be 150 Royal Street, Canton, MA 02021, U.S.) or such other Registrar’s agent and address
as the Registrar may appoint, accompanied by the Warrant Certificate to which it relates and by a signature guarantee, and such other evidence as the Registrar or Receiving Agent may reasonably require to show the right of the transferor to make the
transfer and, if the instrument of transfer is executed by some other Person on behalf of the transferor, the authority of that Person so to do. The Registrar or Receiving Agent may waive production of any Warrant Certificate upon evidence
satisfactory to the Registrar of its loss or destruction or upon execution of an indemnity reasonably satisfactory to the Registrar. All instruments of transfer which are registered may be retained by the Company for so long as it thinks fit
together with the cancelled Warrant Certificates 

  

	2.3	 No fee shall be charged by the Company in respect of the registration of any instrument of transfer or probate
or letters of administration or certificate of marriage or death, or power of attorney or other document relating to or affecting the title to any Warrants or otherwise for making any entry in the Register affecting the title to any Warrants.

  

	2.4	 The registration of a transfer shall be conclusive evidence of the approval by the Company and the Registrar of
the transfer and the Company shall, on registration, issue the transferee with a Warrant Certificate in respect of the Warrants transferred. 

  

	3.	 TRANSMISSION 

  

	3.1	 In the case of the death of a Warrantholder the survivors or survivor where the deceased was a joint holder,
and the executors or administrators of the deceased where he was a sole or only surviving holder, shall be the only Persons recognized by the Company and the Registrar as having any title to his Warrants, but nothing herein contained shall release
the estate of a deceased Warrantholder (whether sole or joint) from any liability in respect of any Warrant solely or jointly held by him. 

  

	3.2	 Subject to any other provision herein contained, any Person becoming entitled to a Warrant in consequence of
the death or bankruptcy of a Warrantholder or otherwise than by transfer may, upon producing such evidence of title as the Company shall reasonably require, and subject as hereinafter provided, be registered himself as holder of the Warrant.

  

	3.3	 Subject to any other provision herein contained, if any Person becoming entitled to a Warrant in consequence of
the death or bankruptcy of a Warrantholder or otherwise than by transfer shall elect to be registered himself, he shall deliver or send to the Company and the Receiving Agent at its office designated for such purposes (which initially shall be 150
Royal Street, Canton, MA 02021, U.S.) or such other Registrar’s agent and address as the Registrar may appoint, a notice in writing signed by him stating that he so elects. All the limitations, restrictions and provisions herein contained
relating to the right to transfer and the registration of transfers of Warrants shall be applicable to any such notice of transfer as aforesaid as if the death or bankruptcy of the Warrantholder had not occurred and the notice of transfer were a
transfer executed by such Warrantholder. 

  

	3.4	 A Person becoming entitled to a Warrant in consequence of the death or bankruptcy of a Warrantholder shall be
entitled to receive and may give good discharge for any monies payable in respect thereof, but shall not be entitled to receive notices of or to attend or vote at meetings of the Warrantholders or, save as aforesaid, to any of the rights or
privileges of a Warrantholder until he shall have become a Warrantholder in respect of the Warrant. 

  
 2 

	4.	 NOTICES 

  

	4.1	 Every Warrantholder shall register with the Company and the Registrar an address to which copies of notices can
be sent. Any notice or document may be given or served by the Company, the Registrar or the Receiving Agent on any Warrantholder either personally or by sending it by mail in a prepaid letter addressed to such Warrantholder at his registered address
as appearing in the register or by facsimile transmission to any facsimile number notified by such Warrantholder to the Company. Any notices given pursuant to the provisions of this Schedule with respect to Warrants standing in the names of joint
holders shall be given to whichever of such Persons is named first in the Register and such notice so given shall be sufficient notice to all the holders of such Warrants. 

 

	4.2	 Notices or demands authorized by this Instrument to be given by the Receiving Agent or Warrant Holder to the
Company shall be sufficiently given if sent in writing by mail prepaid and addressed (until another address is filed in writing with the Receiving Agent) as follows: 

c/o APi Group, Inc. 
 1100 Old
Highway 8 NW 
 New Brighton, MN 55112 
  

	4.3	 Any notice or demand authorized by this Instrument to be given by the Company or by a Warrantholder to the
Receiving Agent shall be sufficiently given if sent in writing by first class mail, prepaid and addressed (until another address is filed in writing with the Company) as follows: 

Computershare Inc. 
 150 Royal
Street 
 Canton, MA 02021 

Attention: Client Services 
  

	4.4	 Proof that an envelope containing a notice was properly addressed, prepaid and mailed shall be conclusive
evidence that the notice was given. A notice shall be deemed to be given at the expiration of forty-eight hours after the envelope containing it was mailed. Any notice given by facsimile transmission shall be deemed to have been served at the time
of transmission by the sender in the absence of an indication of failure of transmission when transmitted. 

  

	4.5	 When a given number of days’ notice or notice extending over any other period is required to be given, the
day of service shall, but the day upon which such notice shall expire shall not, be included in calculating such number of days or other period. The signature to any notice to be given by the Company may be written or printed. 

 

	4.6	 Every Person who by operation of law, transfer or other means whatsoever becomes entitled to a Warrant shall be
bound by any notice in respect of such Warrant which, before his name is entered in the Register, has been duly given to the Person from whom he derives his title. 

 

	4.7	 If at any time by reason of the suspension or curtailment of mail services the Company is unable effectively to
convene a meeting of the Warrantholders by notices sent through the mail, such a meeting may be convened by a notice advertised in at least two national daily newspapers with appropriate circulations and, where there is a suspension or curtailment
of mail services, within the United States, at least one of which shall be published in New York City, and such notice shall be deemed to have been duly served on all Warrantholders entitled thereto at noon on the day when the advertisement appears.
In any such case the Company shall send confirmatory copies of the notice by mail if prior to the meeting the mailing of notices to addresses again becomes practicable. 

  
 3 

	4.8	 Any Warrantholder present, either personally or by proxy, at any meeting of the Warrantholders shall for all
purposes be deemed to have received due notice of such meeting, and, where required, of the purposes for which such meeting was called. 

  

	4.9	 Any notice or document delivered or sent by mail to or left at the registered address of any Warrantholder or
sent by facsimile transmission to any facsimile number notified by such Warrantholder to the Company in pursuance of this Instrument shall, notwithstanding that such Warrantholder is then dead, bankrupt, of unsound mind or (being a corporation) in
liquidation, and whether or not the Company has notice of the death, bankruptcy, insanity or liquidation of such Warrantholder, be deemed to have been duly served in respect of any Warrant registered in the name of such Warrantholder as sole or
joint holder unless his name has at the time of the service of the notice or document been removed from the Register as the holder of the Warrant, and such service shall for all purposes be deemed a sufficient service of such notice or document on
all Persons interested (whether jointly with or as claiming through or under him) in the Warrant. 

  

	5.	 Payment of Redemption or Other Moneys 

Any redemption amount or other moneys payable to a Warrantholder may be paid by electronic transfer or check sent by mail to the registered
address of the Person entitled or, if two or more Persons are the holders of the Warrant or are jointly entitled to it by reason of the death or bankruptcy of the holder, to the registered address of the one of those Persons who is first named in
the Register or to such Person and to such address as the Person or Persons entitled may in writing direct (and in default of such direction to that one of the Persons jointly so entitled as the Directors shall in their absolute discretion
determine). Every check shall be made payable to the order of the Person or Persons entitled or to such other Person as the Person or Persons entitled may in writing direct and payment of the check shall be a good discharge to the Company. Any joint
holder or other Person jointly entitled to a Warrant as aforesaid may give receipts for any dividend or other moneys payable in respect of the Warrant. Every check is sent at the risk of the Person entitled to the payment. If payment is made by
electronic transfer, the Company is not responsible for amounts lost or delayed in the course of making that payment. 

  
 4 

 SCHEDULE 3 

CONCERNING THE RIGHTS AGENT; MERGER, CONSOLIDATION OR 

CHANGE OF RECEIVING AGENT 
  

	1.	 CONCERNING THE RECEIVING AGENT 

As mutually agreed between the Company and the Receiving Agent, the Company agrees to pay to the Receiving Agent compensation for all services
rendered by it hereunder, and, from time to time, on demand of the Receiving Agent, its reasonable expenses and counsel fees and other disbursements incurred in the preparation, negotiation, delivery, amendment, administration and execution of this
Instrument and the exercise and performance of its duties hereunder. The Company also agrees to indemnify the Receiving Agent (including employees, directors, officers and agents of the Receiving Agent) for, and to hold it harmless against, any
loss, liability, damage, judgment, fine, penalty, claim, demand, settlement or expense (including the reasonable fees and expenses of legal counsel) that may be paid, incurred or suffered by it, or which it may become subject, without gross
negligence, bad faith or wilful misconduct on the part of the Receiving Agent (which gross negligence, bad faith or wilful misconduct must be each as determined by a final, non-appealable judgment of a court
of competent jurisdiction) for any action taken, suffered or omitted to be taken by the Receiving Agent (including employees, directors, officers and agents of the Receiving Agent), for anything done or omitted by the Receiving Agent in connection
with the acceptance, administration, exercise and performance of its duties under this Instrument, including the costs and expenses of defending against any claim of liability in connection herewith. The reasonable costs and expenses incurred in
enforcing this right of indemnification shall be paid by the Company. 
 The Receiving Agent shall be fully authorized and protected and
shall incur no liability for, or in respect of any action taken, suffered or omitted by it in connection with, its acceptance and administration of this Instrument and the exercise and performance of its duties hereunder, in reliance upon any
Warrant Certificate or certificate for other securities of the Company (including in the case of uncertificated securities, by notation in book entry accounts reflecting ownership), instrument of assignment or transfer, power of attorney,
endorsement, affidavit, letter, notice, instruction, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper
Persons, or otherwise upon the advice of counsel. 
 Notwithstanding anything in this Instrument to the contrary, in no event will the
Receiving Agent be liable for special, punitive, indirect, incidental or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Receiving Agent has been advised of the likelihood of such loss or
damage and regardless of the form of action. The Receiving Agent shall not be deemed to have knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Receiving Agent shall be fully protected and shall incur no
liability for failing to take any action in connection therewith, unless and until it has received such notice in writing, and all notices or other instruments required by this Instrument to be delivered to the Receiving Agent must, in order to be
effective, be received by the Receiving Agent as specified in Section 4.3 of Schedule 2. The provisions of this Schedule 3 shall survive the termination of this Instrument, the exercise or expiration of the Warrants and the resignation,
replacement or removal of the Receiving Agent. 
  

	2.	 MERGER OR CONSOLIDATION OR CHANGE OF NAME OF RECEIVING AGENT 

Any Person into which the Receiving Agent or any successor Receiving Agent may be merged or with which it may effect a share exchange, be
consolidated, or otherwise combined, or any Person resulting from any merger, share exchange, consolidation, or combination to which the Receiving Agent or any successor Receiving Agent shall be a party, or any Person succeeding to the stock
transfer or other shareholder services of the Receiving Agent or any successor Receiving Agent, shall be the successor to the Receiving Agent under this Instrument without the execution or filing of any paper or document or any further act on the
part of any of the 

  
 1 

 
parties hereto; provided that such Person would be eligible for appointment as a successor Receiving Agent under the provisions this Schedule 2. The purchase of all or substantially all of the
Receiving Agent’s assets employed in the performance of transfer agent activities shall be deemed a merger or consolidation for purposes of this Section 2.1. In case at the time such successor Receiving Agent shall succeed to the agency
created by this Instrument, any of the Warrant Certificates shall have been countersigned but not delivered, any such successor Receiving Agent may adopt the countersignature of the predecessor Receiving Agent and deliver such Warrant Certificates
so countersigned; and, in case at that time any of the Warrant Certificates shall not have been countersigned, any successor Receiving Agent may countersign such Warrant Certificates either in the name of the predecessor Receiving Agent or in the
name of the successor Receiving Agent; and, in all such cases, such Warrant Certificates shall have the full force provided in the Warrant Certificates and in this Instrument. In case at any time the name of the Receiving Agent shall be changed and
at such time any of the Warrant Certificates shall have been countersigned but not delivered, the Receiving Agent may adopt the countersignature under its prior name and deliver Warrant Certificates so countersigned; and, in case at that time any of
the Warrant Certificates shall not have been countersigned, the Receiving Agent may countersign such Warrant Certificates either in its prior name or in its changed name; and, in all such cases, such Warrant Certificates shall have the full force
provided in the Warrant Certificates and in this Instrument. 
  

	3.	 RIGHTS AND DUTIES OF RECEIVING AGENT 

The Receiving Agent undertakes to perform only the duties and obligations expressly set forth in this Instrument and no implied duties or
obligations shall be read into this Instrument against the Receiving Agent. The Receiving Agent shall perform those duties and obligations upon the following terms and conditions, by all of which the Company and the Warrantholders, by their
acceptance thereof, shall be bound: 
  

	 	3.1.1	 The Receiving Agent may consult with legal counsel selected by it (who may be legal counsel for the Company or
an employee or legal counsel of the Receiving Agent), and the advice or opinion of such counsel shall be full and complete authorization and protection to the Receiving Agent and the Receiving Agent shall incur no liability for or in respect of any
action taken, suffered or omitted to be taken by it in accordance with such advice or opinion. Whenever in the performance of its duties under this Instrument the Receiving Agent shall deem it necessary or desirable that any fact or matter be proved
or established by the Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a
certificate signed by any authorized officer of the Company and delivered to the Receiving Agent; and such certificate shall be full and complete authorization and protection to the Receiving Agent and the Receiving Agent shall incur no liability
for or in respect of any action taken, suffered, or omitted to be taken, in each case, in the absence of bad faith, by it under the provisions of this Instrument in reliance upon such a certificate. The Receiving Agent shall have no duty to act
without such a certificate as set forth in this Section 3.1.2. 

  

	 	3.1.2	 The Receiving Agent shall be liable hereunder to the Company and any other Person only for its own gross
negligence, bad faith or wilful misconduct (which gross negligence, bad faith or wilful misconduct must be determined by a final, non-appealable judgment of a court of competent jurisdiction). Any liability of
the Receiving Agent under this Instrument shall be limited to the amount of the annual fees paid (excluding reimbursed charges and expenses) by the Company to the Receiving Agent during the twelve (12) months immediately preceding the event for
which recovery from the Receiving Agent is being sought. The Receiving Agent shall not be liable for or by reason of any of the statements of fact or recitals contained in this Instrument or in the Warrant Certificates (except its countersignature
thereof) or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by the Company only. 

  
 2 

	 	3.1.3	 The Receiving Agent shall not have any liability or be under any responsibility in respect of the validity of
this Instrument or the execution and delivery hereof (except the due execution hereof by the Receiving Agent) or in respect of the legality or validity or execution of any Warrant Certificate (except its countersignature thereof); nor shall it be
responsible for any breach by the Company of any covenant or failure by the Company to satisfy any condition contained in this Instrument or in any Warrant Certificate; nor shall it be liable or responsible for modification by or order of any court,
tribunal, or governmental authority in connection with the foregoing, any change in the exercisability of the Warrants or any adjustment in the terms of the Warrants (including but not limited to the manner, method or amount thereof) provided for in
this Instrument, or responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such change or adjustment (except with respect to the exercise of Warrants evidenced by
Warrant Certificates after receipt of a certificate furnished pursuant to this Instrument describing such change or adjustment upon which the Receiving Agent may rely); nor shall it by any act hereunder be deemed to make any representation or
warranty as to the authorization or reservation of any Ordinary Shares or other securities to be issued pursuant to this Instrument or any Warrant Certificate or as to whether any Ordinary Shares or other securities will, when so issued, be validly
authorized and issued, fully paid and nonassessable. The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances
as may reasonably be required by the Receiving Agent for the carrying out or performing by the Receiving Agent of the provisions of this Instrument. 

  

	 	3.1.4	 The Receiving Agent is hereby authorized and directed to accept written instructions with respect to the
performance of its duties hereunder and certificates delivered pursuant to any provision hereof from any Person reasonably believe by the Receiving Agent to be one of the authorized officers of the Company, and to apply to such officers for advice
or instructions in connection with its duties under this Instrument, and such advice or instructions shall provide full authorization and protection to the Receiving Agent, and it shall not be liable for any action taken or suffered by it in
accordance with the written advice or instructions of any such officer or for any delay in acting while waiting for those instructions. The Receiving Agent shall be fully authorized and protected in relying upon the most recent advice or
instructions received in writing from any such officer. Any application by the Receiving Agent for written instructions from the Company may, at the option of the Receiving Agent, set forth in writing any action proposed to be taken, suffered or
omitted to be taken by the Receiving Agent with respect to its duties and obligations under this Instrument and the date on and/or after which such action shall be taken, suffered or such omission shall be effective. The Receiving Agent and any
stockholder, affiliate, member, director, officer, agent, representative, or employee of the Receiving Agent may buy, sell or deal in any of the Warrants or other securities of the Company or become pecuniarily interested in any transaction in which
the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not the Receiving Agent under this Instrument. Nothing herein shall preclude the Receiving Agent or any such
stockholder, affiliate, director, member, officer, agent, representative or employee from acting in any other capacity for the Company or for any other Person. 

  
 3 

	 	3.1.5	 The Receiving Agent may execute and exercise any of the rights or powers hereby vested in it or perform any
duty hereunder either itself (through its directors, officers and employees) or by or through its attorneys or agents, and the Receiving Agent shall not be answerable or accountable for any act, omission, default, neglect or misconduct of any such
attorneys or agents or for any loss to the Company, to the holders of the Warrants or any other Person, resulting from any such act, omission, default, neglect or misconduct, absent gross negligence or bad faith in the selection and continued
employment thereof (which gross negligence or bad faith must be determined by a final, non-appealable judgment of a court of competent jurisdiction).No provision of this Instrument shall require the Receiving
Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise any of its rights or powers if it believes that repayment of such funds or adequate indemnification
against such risk or liability is not reasonably assured to it. 

  

	 	3.1.6	 The Receiving Agent shall have no responsibility to the Company, any Warrantholders or any holders of Common
Shares for interest or earnings on any monies held by the Receiving Agent pursuant to this Instrument. 

  

	4.	 CHANGE OF RECEIVING AGENT 

The Receiving Agent or any successor Receiving Agent may resign and be discharged from its duties under this Instrument upon 30 days’
notice in writing mailed to the Company. In the event the transfer agency relationship in effect between the Company and the Receiving Agent terminates, the Receiving Agent will be deemed to have resigned automatically and be discharged from its
duties as Receiving Agent under this Instrument as of the effective date of such termination, and the Company shall be responsible for sending any required notice. The Company may remove the Receiving Agent or any successor Receiving Agent (with or
without cause) upon 30 days’ notice in writing, mailed to the Receiving Agent or successor Receiving Agent, as the case may be, and to each transfer agent of the Ordinary Shares by registered or certified mail, and to the holders of the Warrant
Certificates by first-class mail. If the Receiving Agent shall resign or be removed or shall otherwise become incapable of acting, the Company or the Registrar shall appoint a successor to the Receiving Agent. 

  
 4seac-ex42_269.htm

 

 

Exhibit 4.2

 

DESCRIPTION OF SECURITIES 

REGISTERED UNDER SECTION 12 

OF THE EXCHANGE ACT

 

The following information describes the common stock, par value $0.01 per share (“Common Stock”) and Series A Participating Preferred Stock Purchase Rights of SeaChange International, Inc. (the “Company”), as well as certain provisions of our amended and restated certificate of incorporation (as amended, our “Certificate of Incorporation”) and our amended and restated bylaws (“Bylaws”). This description is only a summary. You should also refer to our Certificate of Incorporation and Bylaws, which have been filed with the Securities and Exchange Commission as exhibits to the Annual Report on Form 10-K of which this Exhibit 4.2 is a part.

 

Authorized and Outstanding Capital Stock

Our authorized capital stock consists of 100,000,000 shares of Common Stock and 5,000,000 shares of preferred stock, par value $0.01 per share (the “Preferred Stock”), issuable in one or more series designated by the board of directors of the Company (the “Board”), of which 1,000,000 shares have been designated as Series A Participating Preferred Stock. As of the close of business on April 5, 2020, there were 37,208,434 shares of Common Stock outstanding and no shares of Preferred Stock issued and outstanding.

 

Common Stock

Holders of Common Stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. Except in the case of a contested election, directors are elected if the votes cast “for” a nominee exceed the votes cast “against” the nominee’s election. Holders of Common Stock are entitled to receive ratably dividends, if any, as may be declared by the Board out of funds legally available therefor, after provision has been made for any preferential dividend rights of outstanding Preferred Stock. Upon our liquidation, dissolution or winding up, the holders of Common Stock are entitled to receive an equal portion of the net assets of the Company available for distribution to the holders of Common Stock, subject to any preferential rights of any then outstanding Preferred Stock. Holders of the Common Stock have no preemptive, subscription, redemption or conversion rights, nor are they entitled to the benefit of any sinking fund. The outstanding shares of Common Stock are, when issued and paid for, validly issued, fully paid and nonassessable. The rights, powers, preferences and privileges of holders of Common Stock are subordinate to, and may be adversely affected by, the rights of the holders of shares of any series of Preferred Stock which we may designate and issue in the future.

Each share of Common Stock includes Series A Participating Preferred Stock purchase rights (the “Rights”) pursuant to the Tax Benefits Preservation Plan, dated as of March 4, 2019, by and between the Company and Computershare Inc., as Rights Agent, as amended (the “Rights Agreement”). Prior to the occurrence of certain events, the Rights will not be exercisable or evidenced separately from the Common Stock. The Rights have no value except as reflected in the market price of the shares of the Common Stock to which they are attached, and can be transferred only with the shares of Common Stock to which they are attached.

Our Common Stock and the related rights to purchase Series A Participating Preferred Stock are traded on the NASDAQ Global Select Market under the symbol “SEAC”.

The transfer agent and registrar for our Common Stock and related rights to purchase Series A Participating Preferred Stock is Computershare, Inc. Its address is 250 Royall Street, Canton, MA 02021.

 

 

 

Preferred Stock

The Board generally will be authorized, without further stockholder approval, to issue from time to time up to an aggregate of 5,000,000 shares of Preferred Stock, in one or more series. Each series of Preferred Stock will have the number of shares, designations, preferences, voting powers (or special, preferential or no voting powers), relative, participating, optional or other special rights and privileges and such qualifications, limitations or restrictions as is determined by the Board, which may include, among others, the right to provide that the shares of each such series may be: (i) subject to redemption at such time or times and at such price or prices; (ii) entitled to receive dividends (which may be cumulative or non-cumulative) at such rates, on such conditions, and at such times, and payable in preference to, or in such relation to, the dividends payable on any other class or classes or any other series; (iii) entitled to such rights upon the dissolution of, or upon any distribution of the assets of, the Company; (iv) convertible into, or exchangeable for, shares of any other class or classes of stock, or of any other series of the same or any other class or classes of stock of the Company at such price or prices or at such rates of exchange and with such adjustments, if any; or (v) entitled to the benefit of such limitations, if any, on the issuance of additional shares of such series or shares of any other series of Preferred Stock.

Our stockholders have granted the Board authority to issue the Preferred Stock and to determine the rights and preferences of the Preferred Stock in order to eliminate delays associated with a stockholder vote on specific issuances. The rights of the holders of Common Stock will be subordinate to the rights of holders of any Preferred Stock issued in the future. The issuance of Preferred Stock, while providing desirable flexibility in connection with possible acquisitions and other corporate purposes, could adversely affect the voting power or other rights of the holders of Common Stock, and could make it more difficult for a third party to acquire, or discourage a third party from attempting to acquire, a majority of our outstanding voting stock. 

 

Series A Participating Preferred Stock Purchase Rights

The Rights; Exercise Period. We do not have any shares of Preferred Stock outstanding, but have designated shares of Series A Participating Preferred Stock in connection with our Rights Agreement. The Rights Agreement imposes a significant penalty upon any person or group which acquires 4.9% or more of the outstanding Common Stock (such event, a “Triggering Event”) without the approval of the Board as described in Section 11(a)(ii) of the Rights Agreement. Stockholders who own 4.9% or more of the outstanding Common Stock as of the open of business on March 5, 2019, will not constitute a Triggering Event so long as such stockholders do not change their ownership of Common Stock in a transaction or series of transactions to an amount equal to or greater than the greater of (i) 4.9% or (ii) the sum of (x) the lowest beneficial ownership of such person as a percentage of the outstanding Common Stock as of any date on or after March 5, 2019 plus (y) 0.5%.   Upon a Triggering Event, each Right entitles the registered holder thereof to purchase from the Company one one-hundredth of a share of Series A Participating Preferred Stock, par value $0.01 per share (the “Series A Participating Preferred Stock”), of the Company, at a price of $8.00 per one one-hundredth of a Preferred Share (the “Purchase Price”), subject to adjustment. Because of the nature of the Series A Participating Preferred Stock’s dividend, liquidation and voting rights, the value of the one one-hundredth interest in a Preferred Share purchasable upon exercise of each Right should approximate the value of one Common Share (as such term is defined in the Rights Agreement). From and after the occurrence of a Triggering Event if the Rights evidenced by the Right Certificate (as defined below) are or were acquired or beneficially owned by an Acquiring Person or an Associate or Affiliate of an Acquiring Person (as such terms are defined in the Rights Agreement), such Rights shall become null and void, and any holder of such Rights shall thereafter have no right to exercise such Rights. However, Rights are not exercisable following the 

 

 

occurrence of a Triggering Event until such time as the Rights are no longer redeemable by the Company as set forth below. A copy of the Certificate of Designations, Preferences and Rights of the Series A Participating Preferred Stock of SeaChange International, Inc. filed by the Company with the Secretary of State of the State of Delaware to designate the Series A Participating Preferred Stock was filed as Exhibit 3.3 to the Registration Statement on Form 8-A filed by the Company on March 5, 2019.  We subsequently amended the Rights Agreement (i) on June 28, 2019 to provide that the Final Expiration Date in no event would be later than the close of business on March 4, 2022 and (ii) on August 8, 2019 to provide that certain stockholders shall not be considered Acquiring Persons. 

Until the earlier to occur of (i) ten (10) business days following a public announcement that a person or group of affiliated or associated persons has acquired beneficial ownership of 4.9% or more of the outstanding Common Stock (or if already the beneficial owner of at least 4.9% of the outstanding Common Stock, by acquiring additional Common Stock in a transaction or series of transactions representing 0.5% or more of the Common Stock then outstanding) (an “Acquiring Person”) or (ii) ten (10) business days (or such later date as may be determined by action of the Board prior to such time as any Person becomes an Acquiring Person) following the commencement of, or announcement of an intention to commence, a tender offer or exchange offer the consummation of which would result in the beneficial ownership by a person or group of 4.9% or more of such outstanding Common Stock (the earlier of such dates being called the “Distribution Date”), the Rights will be evidenced, with respect to any of the Common Share certificates outstanding as of the Record Date (as such term is defined in the Rights Agreement) and book entry accounts reflecting ownership of Common Stock outstanding as of the Record Date, by such Common Share certificate or book entry account position, as applicable. For these purposes, beneficial ownership is determined based on the number of Common Stock that a person is deemed to directly, indirectly or constructively own pursuant to Section 382 of the Internal Revenue Code of 1986, as amended (“Section 382”), including any shares owned by any other person treated as one entity under applicable treasury regulations. 

Each of the following persons will not be deemed to be an Acquiring Person, even if they have acquired, or obtained the right to acquire, beneficial ownership of 4.9% or more of the outstanding Common Stock: (i) the Company; (ii) any subsidiary of the Company; (iii) any employee benefit plan of the Company or any subsidiary of the Company, or any person holding outstanding Common Stock for or pursuant to the terms of any such plan; (iv) any person who would otherwise be an Acquiring Person upon the first public announcement by the Company of the adoption of the Rights Agreement, unless and until such person, or any Affiliate of such person, changes their beneficial ownership of Common Stock in a transaction or series of transactions to an amount equal to or greater than the greater of (1) 4.9% or (2) the sum of (x) the lowest beneficial ownership of such person as a percentage of the outstanding Common Stock as of any date on or after March 5, 2019, plus (y) 0.5% (other than as a result of an acquisition by the Company or any of its Subsidiaries of Common Stock); or (v) any person who as the result of an acquisition of Common Stock by the Company which, by reducing the number of Common Stock outstanding, increases the proportionate number of Common Stock beneficially owned by the person to 4.9% or more of the Common Stock then outstanding, or a stock dividend, rights dividend, stock split or similar transaction effected by the Company unless and until such person, or any Associate or Affiliate of such person, following the first public announcement by the Company of such share acquisition, acquires beneficial ownership of an additional 0.5% or more of the then-outstanding Common Stock (other than pursuant to a stock split, reverse stock split, stock dividend, reclassification or similar transaction effected by the Company). If the Board determines in good faith that a person who would otherwise be an Acquiring Person, has become such inadvertently, and such person, within ten (10) business days of being requested by the Company to do so, certifies that such person became an Acquiring Person inadvertently or without knowledge of the terms of the Rights and who thereafter, within ten (10) business days following such certification, divests as promptly as practicable a sufficient number of Common Stock that such person would no longer be an Acquiring Person, then such person shall 

 

 

not be deemed to be an Acquiring Person for any purpose of the Rights Agreement; provided that, if such person requested to so certify or divest Common Stock fails to do so within ten (10) business days, such person shall be deemed to be an Acquiring Person. Additionally, any person that has become an Acquiring Person shall not be treated as an Acquiring Person for any purpose of the Rights Agreement if the Board, in its sole discretion, determines that such person’s acquisition of beneficial ownership of Common Stock does not jeopardize or endanger the Company’s ability to utilize the NOLs (as such term is defined in the Rights Agreement). A person (other than any “direct public group” within the meaning of treasury regulations Section 1.382-2T(j)(2)(ii)) will be treated as the beneficial owner of 4.9% or more of the Common Stock if, in the determination of the Board, that person (individually, or together with other persons) would be treated as a “5-percent stockholder” for purposes of Section 382 (substituting “4.9” for “5” each time “five” or “5” is used in or for purposes of Section 382). 

The Rights Agreement provides that, until the Distribution Date, the Rights will be transferred by, and only in connection with, the transfer of Common Stock. Until the Distribution Date (or earlier redemption or expiration of the Rights), new Common Share certificates and book entry accounts reflecting ownership of Common Stock issued after the Record Date or upon transfer or new issuance of Common Stock will contain a notation incorporating the Rights Agreement by reference. Until the Distribution Date (or earlier redemption or expiration of the Rights), the surrender for transfer of any certificates for Common Stock outstanding as of the Record Date or book entry accounts reflecting ownership of Common Stock outstanding as of the Record Date, even without such notation, will also constitute the transfer of the Rights associated with the Common Stock represented by such certificate or book entry position, as applicable. As soon as practicable following the Distribution Date, separate certificates evidencing the Rights (“Right Certificates”) will be mailed to holders of record of the Common Stock as of the close of business on the Distribution Date and such separate Right Certificates alone will evidence the Rights. 

The Rights are not exercisable until the Distribution Date. The Rights will expire on the earliest of (i) the date on which all of the Rights are redeemed as described below, (ii) the date on which the Rights are exchanged as described below, (iii) the consummation of a reorganization transaction entered into by the Company resulting in the imposition of stock transfer restrictions that the Board determines, in its sole discretion, will provide protection for the NOLs similar to that provided by the Rights Agreement, (iv) the close of business on the effective date of the repeal of Section 382, or any other change, if the Board determines, in its sole discretion, that the Rights Agreement is no longer necessary or desirable for the preservation of the NOLs, (v) the date on which the Board otherwise determines, in its sole discretion, that the Rights Agreement is no longer necessary to preserve the NOLs, (vi) the beginning of a taxable year of the Company to which the Board determines, in its sole discretion, that none of the NOLs may be carried forward, (vii) the fifth business day after the filing by the Company of a Current Report on Form 8-K reporting the results of the 2019 annual meeting of stockholders of the Company (including any postponement or adjournment thereof) should the Rights Agreement not be approved by a majority of the Common Stock present and voting at such meeting on such matter and (viii) the close of business on March 4, 2022 (the “Final Expiration Date”). 

Purchase Price; Adjustments. The Purchase Price payable, and the number of Series A Participating Preferred Stock or other securities or property issuable, upon exercise of the Rights are subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Series A Participating Preferred Stock, (ii) upon the grant to holders of the Series A Participating Preferred Stock of certain rights or warrants to subscribe for or purchase Series A Participating Preferred Stock at a price, or securities convertible into Series A Participating Preferred Stock with a conversion price, less than the then current market price of the Series A Participating Preferred Stock or (iii) upon the distribution to holders of the Series A Participating Preferred Stock of securities (including evidences of indebtedness) or assets (other than a regular quarterly cash dividend or a dividend payable in Series A Participating Preferred Stock) or of rights, options or 

 

 

warrants (other than those referred to above). With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments require an adjustment of at least 1% in such Purchase Price. 

The number of outstanding Rights and the number of one one-hundredths of a Preferred Share issuable upon exercise of each Right are also subject to adjustment in the event of a stock split of the Common Stock or a stock dividend on the Common Stock payable in Common Stock or subdivisions, consolidations or combinations of the Common Stock occurring, in any such case, prior to the Distribution Date. No fractional Series A Participating Preferred Stock will be issued (other than fractions which are integral multiples of one one-hundredth of a Preferred Share, which may, at the election of the Company, be evidenced by depository receipts) and in lieu thereof, an adjustment in cash will be made based on the market price of the Series A Participating Preferred Stock on the last trading day prior to the date of exercise. Until a Right is exercised, the holder thereof, as such, will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends. 

In the event that any person or group of affiliated or associated persons becomes an Acquiring Person, all holders of Rights except such person or group of affiliated or associated persons and their transferees may, upon exercise of a Right, purchase for the Purchase Price Common Stock with a market value of two times the Purchase Price, based on the market price of the Common Stock on the date such person or group of affiliated or associated persons became an Acquiring Person. If the Company does not have sufficient Common Stock to satisfy such obligation to issue Common Stock, the Company shall take all actions necessary to authorize additional Common Stock for issuance as soon as possible upon exercise of the Rights. In the event the Company shall, after reasonable best efforts, be unable to take all such actions as may be necessary to authorize such additional Common Stock, the Company shall deliver upon payment of the exercise price of a Right a number of Common Stock to the extent available and then units or other equity securities of the Company other than Common Stock, or cash, a reduction in the Purchase Price, debt securities of the Company, other assets or a combination of the foregoing in proportions determined by the Company, so that the aggregate value received is equal to twice the Purchase Price. 

Exchange; Redemption; Amendment. At any time after any Person becomes an Acquiring Person and prior to the acquisition by any person or group of a majority of the outstanding Common Stock, the Board may exchange the Rights (other than Rights owned by such person or group which have become null and void), in whole or in part, at an exchange ratio of one Common Share per Right (subject to adjustment). 

At any time prior to ten (10) business days after the time any Person becomes an Acquiring Person, the Board may redeem the Rights in whole, but not in part, at a price of $0.0001 per Right (the “Redemption Price”). The redemption of the Rights may be made effective at such time, on such basis and with such conditions as the Board in its sole discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the Rights will terminate and the only right of the holders of Rights will be to receive the Redemption Price. 

The terms of the Rights may be amended by the Board without the consent of the holders of the Rights, except that from and after such time as any person becomes an Acquiring Person no such amendment may adversely affect the interests of the holders of the Rights (other than the Acquiring Person and its Affiliates and Associates).

The foregoing description of the terms of the Rights Agreement is qualified in its entirety by reference to the complete text of the Rights Agreement. A copy of the Rights Agreement was attached as Exhibit 4.1 to the Current Report the Company filed on Form 8-K on March 5, 2019. 

 

Anti-Takeover Effects of Some Provisions of Delaware Law

Provisions of Delaware law and our Certificate of Incorporation and Bylaws could make the acquisition of the Company through a tender offer, a proxy contest or other means more difficult and could make the removal of incumbent officers and directors more difficult. We expect these provisions to discourage coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of the Company to first negotiate with our Board. We believe that the benefits provided by our ability to negotiate with the proponent of an unfriendly or unsolicited proposal outweigh the disadvantages of discouraging 

 

 

these proposals. We believe the negotiation of an unfriendly or unsolicited proposal could result in an improvement of its terms.

We are subject to Section 203 of the Delaware General Corporation Law, 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 the person became an interested stockholder, unless:

 

	
 

	
 
	
 
	
 
	
 

	
 
	
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the board of directors of the corporation approves either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder, prior to the time the interested stockholder attained that status;

 

	
 

	
 
	
 
	
 
	
 

	
 
	
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upon the closing of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding, for purposes of determining the number of shares outstanding, those 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

 

	
 

	
 
	
 
	
 
	
 

	
 
	
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at or subsequent to such time, the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66-2/3% of the outstanding voting stock that is not owned by the interested stockholder.

 

With certain exceptions, an “interested stockholder” is a person or group who or which owns 15% or more of the corporation’s outstanding voting stock (including any rights to acquire stock pursuant to an option, warrant, agreement, arrangement or understanding, or upon the exercise of conversion or exchange rights, and stock with respect to which the person has voting rights only), or is an affiliate or associate of the corporation and was the owner of 15% or more of such voting stock at any time within the previous three years.

In general, Section 203 defines a business combination to include:

 

	
 

	
 
	
 
	
 
	
 

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

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

	
 
	
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subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

	
 
	
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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

	
 
	
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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.

 

 

 

A Delaware corporation may “opt out” of this provision with an express provision in its original certificate of incorporation or an express provision in its amended and restated certificate of incorporation or bylaws resulting from a stockholders’ amendment approved by at least a majority of the outstanding voting shares. However, the Company has not “opted out” of this provision. Section 203 could prohibit or delay mergers or other takeover or change-in-control attempts and, accordingly, may discourage attempts to acquire the Company.

 

Anti-Takeover Effects of Our Charter Documents

Our Certificate of Incorporation empowers our Board, when considering a tender offer or merger or acquisition proposal, to take into account any factors that it determines to be relevant, including, without limitation:

	
 
	
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the interests of our stockholders, including the possibility that these interests might be best served by our continued independence;

	
 
	
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whether the proposed transaction might violate federal or state laws;

	
 
	
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not only the consideration being offered in the proposed transaction, in relation to the then current market price for our outstanding capital stock, but also to the market price for our capital stock over a period of years, the estimated price that might be achieved in a negotiated sale of our business as a whole or in part or through orderly liquidation, the premiums over market price for the securities of other corporations in similar transactions, current political, economic and other factors bearing on securities prices and our financial condition and future prospects; and

	
 
	
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the social, legal and economic effects upon employees, suppliers, customers, creditors and others having similar relationships with us, upon the communities in which we conduct our business and upon the economy of the state, region and nation.

 

These provisions may discourage a third party from making a tender offer for our Common Stock, as these provisions could decrease the likelihood that our Board would find such a transaction to be in the interests of our stockholders.

Our Certificate of Incorporation does not allow stockholders to act by written consent in lieu of a meeting. Without the availability of stockholder action by written consent, a holder of the requisite number of shares of our capital stock would not be able to amend our Bylaws or remove directors without holding a stockholders’ meeting. Our Certificate of Incorporation provides that only our President, Chairman of the Board (if any) or a majority of the Board may call a special meeting of stockholders and notice of any such meeting must satisfy the notice periods as set forth in the Bylaws. Additionally, business transacted at any special meeting of stockholders is limited to matters relating to the purpose or purposes stated in the notice of meeting. Because our stockholders do not have the right to call a special meeting, a stockholder could not force stockholder consideration of a proposal over the opposition of the Board by calling a special meeting of stockholders prior to such time as our President, Chairman of the Board or a majority of the Board believed the matter should be considered or until the next annual meeting provided that the requestor met the notice and other requirements. The restriction on the ability of stockholders to call a special meeting means that a proposal to replace the Board also could be delayed until the next annual meeting. 

Our Board is authorized to issue, without further action by the stockholders, additional shares of Preferred Stock with rights and preferences, including voting rights, designated from time to time by the Board. The existence of authorized but unissued shares of Preferred Stock enables our Board to render more difficult or to discourage an attempt to obtain control of the Company by means of a merger, tender offer, proxy contest or otherwise. 

 

 

The affirmative vote of the holders of at least 75% of the total voting power of all outstanding shares of our voting stock is generally required for stockholders to amend our Certificate of Incorporation. This provision makes it more difficult to circumvent the anti-takeover provisions of our Certificate of Incorporation.

Our Bylaws provide for our Board to be divided into three classes serving staggered terms. Approximately one-third of the Board will be elected each year. The provision for a classified board could prevent a party who acquires control of a majority of the outstanding voting stock from obtaining control of the Board until the second annual stockholders meeting following the date the acquirer obtains the controlling stock interest. The classified board provision could discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of the Company and could increase the likelihood that incumbent directors will retain their positions.

Our Bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual or special meeting of our stockholders, including proposed nominations of persons for election to the Board. Among other requirements, the advance notice provisions provide that (i) a stockholder must provide to the secretary of the Company timely notice (generally 120-150 days prior to the one-year anniversary of the previous year’s annual meeting of stockholders or 60-90 days prior to a special meeting) of any business, including director nominations, proposed to be brought before the annual or special meeting, which notice must conform to the substantive requirements set forth in the Bylaws, (ii) a stockholder must deliver certain information regarding the person(s) making the proposal, and in the case of any nominee for election to the Board, information regarding such nominee, in each case as set forth in the Bylaws, and (iii) any nominee for election to the Board must provide a completed written questionnaire regarding his or her  background, qualifications, stock ownership and independence. These provisions may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of the Company.

Our Board is expressly authorized to adopt, amend or repeal our Bylaws. Absent Board approval, the Bylaws may not be repealed, amended or altered in any respect without the affirmative vote of the holders of at least 75% of the voting power of all of the then-outstanding shares of our voting stock entitled to vote.

 

 Anti-Takeover Effects of Our Rights Agreement

The Tax Benefits Preservation Plan could render more difficult, or discourage a merger, tender offer, or assumption of control of the Company that is not approved by our Board. The Tax Benefits Preservation Plan, however, should not interfere with any merger, tender or exchange offer or other business combinations approved by our Board. Additionally, the Tax Benefits Preservation Plan does not prevent our Board from considering any offer that it considers to be in the best interests of the Company’ stockholders.

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