Document:

Exhibit 4.7

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES

REGISTERED
PURSUANT TO SECTION 12 OF THE SECURITIES

EXCHANGE
ACT OF 1934, AS AMENDED 

 

As
of December 31, 2019, Legacy Acquisition Corp. (the “Company”) had the following three classes of securities registered
under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (i) its Class A common stock,
$0.001 par value per share (“Class A common stock”), (ii) its warrants, exercisable for one-half of one share of class
A common stock for $5.75 per half share, or $11.50 per whole share, and (iii) its units, consisting of one share of Class A common
stock and one warrant to purchase one-half of one share of Class A common stock. In addition, this Description of Securities also
contains a description of Legacy’s Class F common stock, par value $0.001 per share (the “Class F common stock”
or “Founder Shares”), which is not registered pursuant to Section 12 of the Exchange Act but is convertible into shares
of the Class A common stock. The description of the Class F common stock is necessary to understand the material terms of the
Class A common stock.

 

References
in the following discussion to “Legacy,” the “Company,” “we,” “our” and “us”
and similar references mean Legacy Acquisition Corp.

 

DESCRIPTION
OF SECURITIES

 

The
following is a description of some of the terms of our Class A common stock and, to the extent relevant to the Class A common
stock, the Class F common stock, our warrants, our amended and restated certificate of incorporation (the “Charter”),
our amended and restated bylaws (the “Bylaws”) and certain provisions of the Delaware General Corporation Law (the
“DGCL”). The following description is not complete and is subject to, and qualified in its entirety by reference to,
our Charter and Bylaws, each of which is filed or incorporated by reference as an exhibit to our Annual Report on Form 10-K of
which this Exhibit is a part, and the DGCL. In addition, the description of our warrants is not complete and is subject to, and
qualified in its entirety by reference to, our Warrant Agreement, dated November 16, 2017 (“Warrant Agreement”), by
and between Legacy and Continental Stock Transfer & Trust Company, a New York corporation, as warrant agent, which is incorporated
by reference as an exhibit to our Annual Report on Form 10-K of which this Exhibit is a part. You should read our Charter and
Bylaws, our Warrant Agreement and the applicable provisions of the DGCL for a complete statement of the provisions described under
this caption “Description of Securities” and for other provisions that may be important to you.

 

Class
A Common Stock

 

General.
Under our Charter, the Company is authorized to issue 100,000,000 shares of Class A common stock, 10,000,000 shares of Class F
common stock, and 1,000,000 shares of undesignated preferred stock, $0.0001 par value. Our shares of Class A common stock trade
on The New York Stock Exchange (“NYSE”) under the symbol “LGC” The Company has also issued unregistered
Class F common stock, of which 7,500,000 shares are currently outstanding. Upon the closing of the Company’s initial business
combination, the shares of Class F common stock shall automatically convert into shares of Class A common stock on a one-for-one
basis.

 

     

     

    

 

Voting.
The holders of the shares of our Class A common stock and Class F common stock (together, the “common stock”)
hold exclusive voting power with respect to the Company and vote together as a single class on all matters submitted to a vote
of our stockholders except as required by law. Common stockholders of record are entitled to one vote for each share held on all
matters to be voted on by stockholders. Unless specified in our Charter or Bylaws, or as required by applicable provisions of
the DGCL or applicable stock exchange rules, the affirmative vote of a majority of our common stock that are voted is required
to approve any such matter voted on by our stockholders. Additionally, at any annual or special meeting of the stockholders of
the Company, holders of the Common Stock, voting together as a single class, shall have the exclusive right to vote for the election
of directors and on all other matters properly submitted to a vote of the stockholders. However, holders of shares of Common Stock
shall not be entitled to vote on any amendment to the Charter (including any amendment to a preferred stock designation) that
relates solely to the terms of one or more outstanding series of preferred stock or other series of common stock, if the holders
of such affected series of preferred stock or common stock, as applicable, are entitled exclusively, either separately or together
with the holders of one or more other such series, to vote thereon pursuant to the Charter or the DGCL. The Company has not issued
any preferred stock or other series of common stock aside from the Common Stock.

 

Board
of Directors. Our board of directors is divided into two classes, each of which generally serve for a term of two years with
only one class of directors being elected in each year. There is no cumulative voting with respect to the election of directors,
with the result that the holders of more than 50% of the shares voted for the election of directors can elect all of the directors.

 

Dividends.
Our stockholders are entitled to receive ratable dividends when, as and if declared by the board of directors out of funds
legally available therefor. We have not paid any cash dividends on our Class A common stock to date and do not intend to pay cash
dividends prior to the completion of the business combination. The payment of cash dividends in the future will be dependent upon
our revenues and earnings, if any, capital requirements and general financial condition subsequent to completion of the business
combination.

 

Redemption. We
will provide holders of our Class A common stock with the opportunity to redeem all or a portion of their shares of Class A
common stock that were issued in our initial public offering (“public shares”) upon the completion of our
business combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust
account as of two business days prior to the consummation of our business combination, including interest (which interest
shall be net of taxes payable and any amounts released to us to fund working capital requirements) divided by the number of
then outstanding public shares, subject to the limitations described herein. The per-share amount we will distribute to the
holders of public shares will not be reduced by the deferred underwriting commissions we will pay to the underwriters of the
initial public offering. Notwithstanding the foregoing redemption rights, a holder of Class A common stock, together with any
affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group”
(as defined under Section 13 of the Securities Exchange Act of 1934, as amended), will be restricted from redeeming its
shares with respect to more than an aggregate of 15% of the outstanding public shares, which we refer to as the “15%
threshold.” Accordingly, all public shares in excess of the 15% threshold beneficially owned by
a holder of Class A common stock or a group will not be redeemed for cash.

 

    2

     

    

 

Initial
Business Combination. We will seek stockholder approval of our business combination and complete the business combination
only if a majority of the outstanding shares of common stock voted are voted in favor of the business combination. A quorum for
such meeting will consist of the holders of Common Stock present in person or by proxy of shares of outstanding Common Stock representing
a majority of the voting power of all outstanding shares of Common Stock entitled to vote at such meeting. The holders of our
Class F common stock have agreed to vote all of their Class F common stock in favor of the business combination. Therefore, there
is a possibility that the business combination could be approved even if a majority of holders of Class A common stock vote against
the business combination. For purposes of seeking approval of the majority of the outstanding shares of Common Stock, non-votes
will have no effect on the approval of the business combination once a quorum is obtained.

 

At
a special meeting held on October 22, 2019, the stockholders of the Company voted to amend the Charter to extend the date by which
the Company has to consummate a business combination (the “Extension”) from November 21, 2019, to December 21, 2019,
plus an option for the Company to further extend such date up to five times, initially to January 21, 2020, and thereafter by
additional 30 day periods each to May 20, 2020 (the “Outside Extended Date”). Pursuant to this amendment to the Charter,
if we are unable to complete the business combination by the Outside Extended Date, we will (i) cease all operations except for
the purpose of winding up, (ii) as promptly as reasonably possible but no more than ten business days thereafter, subject to lawfully
available funds therefor, redeem the shares of Class A common stock, at a per-share price, payable in cash, equal to the aggregate
amount then on deposit in the trust account, including interest (which interest shall be net of taxes payable and any amounts
release to us to fund working capital requirements and less up to $50,000 of interest to pay dissolution expenses) divided by
the number of then outstanding shares of Class A common stock, which redemption will completely extinguish Class A common stockholders’
rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law,
and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders
and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for
claims of creditors and the requirements of other applicable law.

 

Liquidation,
Dissolution or Winding up. In the event of a liquidation, dissolution or winding up of the company after a business combination,
our Class A common stockholders are entitled to share ratably in all assets remaining available for distribution to them after
payment of liabilities and after provision is made for each class of stock, if any, having preference over the Common Stock (as
of the date of the filing of this Form 10-K, no preferred stock has been issued). Our Class A common stockholders have no preemptive
or other subscription rights. There are no sinking fund provisions applicable to the Class A common stock, except that we will
provide our holders of Class A common stock with the opportunity to redeem their shares for cash equal to their pro rata share
of the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of taxes payable
and any amounts released to us to fund working capital requirements) upon the completion of our business combination, subject
to the limitations described herein.

 

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Preferred
Stock. Our Charter provides that shares of preferred stock may be issued from time to time in one or more series. Our board
of directors will be authorized to fix the voting rights, if any, designations, powers, preferences, the relative, participating,
optional or other special rights and any qualifications, limitations and restrictions thereof, applicable to the shares of each
series. Our board of directors will be able to, without stockholder approval, issue preferred stock with voting and other rights
that could adversely affect the voting power and other rights of the holders of the Class A common stock and could have anti-takeover
effects. The ability of our board of directors to issue preferred stock without stockholder approval could have the effect of
delaying, deferring or preventing a change of control of us or the removal of existing management. We have no preferred stock
outstanding as of the date hereof. Although we do not currently intend to issue any shares of preferred stock, we cannot assure
you that we will not do so in the future.

 

Founder
Shares. The founder shares, or Class F common stock, are identical to the shares of Class A common stock, and holders of founder
shares have the same stockholder rights as holders of Class A common stock, except that (i) the founder shares are subject to
certain transfer restrictions, as described in more detail below, (ii) our initial stockholders have entered into a letter agreement
with us, pursuant to which they have agreed (A) to waive their redemption rights with respect to their founder shares and public
shares in connection with the completion of our business combination and (B) to waive their rights to liquidating distributions
from the trust account with respect to their founder shares if we fail to complete our business combination by the Outside Extended
Date, although it will be entitled to liquidating distributions from the trust account with respect to any public shares they
hold if we fail to complete our business combination within such time period; (iii) the founder shares will automatically convert
into shares of our Class A common stock at the time of our initial business combination on a one-for-one basis, subject to adjustment
pursuant to certain anti-dilution rights; and (iv) the founder shares are subject to registration rights. If we submit our business
combination to our stockholders for a vote, our initial stockholders have agreed to vote their founder shares and any shares of
Class A common stock purchased during or after this offering in favor of our initial business combination.

 

With
certain limited exceptions, the founder shares are not transferable, assignable or salable (except to our officers and directors
and other persons or entities affiliated with our sponsor, each of whom will be subject to the same transfer restrictions) until
the earlier of one year after the completion of our initial business combination or earlier if, (x) subsequent to our business
combination, the last sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits,
stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing
at least 150 days after our initial business combination, or (y) the date following the completion of our initial business combination
on which we complete a liquidation, merger, stock exchange or other similar transaction that results in all of our public stockholders
having the right to exchange their shares of Class A common stock for cash, securities or other property.

 

Registration
Rights. Our Legacy Acquisition Sponsor I LLC, a Delaware limited liability company, an entity affiliated with members of our
management team and other members of the Legacy Team (the “Sponsor”), is entitled to registration rights (in the case
of the Founder Shares, only after conversion to shares of Class A common stock) pursuant to a registration rights agreement dated
November 16, 2017. The Sponsor is entitled to make up to three demands, excluding short form registration demands, that Legacy
register such securities for sale under the Securities Act. In addition, the Sponsor has “piggy-back” registration
rights to include its securities in other registration statements filed by Legacy. Legacy will bear the expenses incurred in connection
with the filing of any such registration statements.

 

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On
August 23, 2019, the Company entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with Blue Valor
Limited, a company incorporated in Hong Kong and an indirect, wholly-owned subsidiary of Blue Focus Intelligent Communications
Group (“Blue Valor” or the “Seller”), which was subsequently amended by that First Amendment to Share
Exchange Agreement dated as of September 27, 2019, and further amended and restated on December 2, 2019. At the closing of the
business combination under the Share Exchange Agreement, we will enter into an Amended and Restated Registration Rights Agreement,
which provides certain registration rights to the Sponsor and Blue Impact Target with respect to certain shares of their Blue
Impact common stock. The registrable shares will be comprised of Sponsor’s shares of common stock issued or issuable upon
conversion of the Founder’s Shares, private placement warrants, and working capital loans (if any), the Seller’s shares
of common stock issued or issuable pursuant to the Share Exchange Agreement, and any other shares of common stock held respectively
by the Sponsor or the Seller as of the date of Amended and Restated Registration Rights Agreement or issued or issuable in respect
of such shares of the Sponsor the Seller pursuant to a stock split, stock dividend or in connection with a combination, merger,
share exchange, consolidation, recapitalization or reorganization. Pursuant to the terms of the Amended and Restated Registration
Rights Agreement, the Sponsor and the Seller will be entitled to make up to three demands, excluding short form registration demands,
“piggy-back” registration rights and Form S-3 registration rights, subject to certain minimum requirements and customary
conditions. However, the registration rights agreement provides that we will not permit any registration statement filed under
the Securities Act to become effective until termination of the applicable lock-up period under the Investor Rights Agreement.
In addition, Blue Impact will be obligated to file, after it becomes eligible to use Form S-3 or its successor form, a shelf registration
statement to register the resale by the Sponsor or the Seller of their registrable shares. The Sponsor and the Seller will be
entitled to assign their registration rights under the Amended and Restated Registration Rights Agreement to transferees who acquire
at least 1% of the outstanding registrable shares or to Founder Investors or Non-Founder Investors under the Investor Rights Agreement.

 

Warrants

 

Each
of our public stockholders’ warrants entitles the registered holder to purchase one-half of one share of our Class A common
stock at a price of $5.75 per half share, subject to adjustment as discussed below. For example, if a warrant holder holds two
warrants, such warrants will be exercisable for one share of the Company’s Class A common stock. Warrants must be exercised
for a whole share, and will expire five years after the completion of our business combination, at 5:00 p.m., New York City time,
or earlier upon redemption or liquidation.

 

We
will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation
to settle such warrant exercise unless a registration statement under the Securities Act with respect to the shares of Class A
common stock underlying the warrants is then effective and a prospectus relating thereto is current, subject to our satisfying
our obligations described below with respect to registration. No warrant will be exercisable for cash or on a cashless basis,
and we will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares
upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption
is available. In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to a
warrant, the holder of such warrant will not be entitled to exercise such warrant and such warrant may have no value and expire
worthless. In the event that a registration statement is not effective for the exercised warrants, the purchaser of a unit containing
such warrant will have paid the full purchase price for the unit solely for the share of Class A common stock underlying such
unit.

 

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We
have agreed that as soon as practicable, but in no event later than fifteen business days, after the closing of our business combination,
we will use our reasonable best efforts to file, and within sixty business days after the closing of our business combination,
to have declared effective, a registration statement relating to the shares of Class A common stock issuable upon exercise of
the warrants and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until
the expiration of the warrants in accordance with the provisions of the warrant agreement. Notwithstanding the above, if our Class
A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies
the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require
holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9)
of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement,
but will use our best efforts to qualify the shares under applicable blue sky laws to the extent an exemption is not available.

 

Once
the warrants become exercisable, we may call the warrants for redemption:

 

		●	in
                                         whole and not in part;

		●	at
                                         a price of $0.01 per warrant;

		●	upon
                                         not less than 30 days’ prior written notice of redemption (the “30-day redemption
                                         period”) to each warrant holder; and

		●	if,
                                         and only if, the reported last sale price of the Class A common stock equals or exceeds
                                         $18.00 per share for any 20 trading days within a 30-trading day period ending on the
                                         third trading day prior to the date we send to the notice of redemption to the warrant
                                         holders.

 

We
may not redeem the warrants when a holder may not exercise such warrants.

 

We
have established the last of the redemption criterion discussed above to prevent a redemption call unless there is at the time
of the call a significant premium to the warrant exercise price. If the foregoing conditions are satisfied and we issue a notice
of redemption of the warrants, each warrant holder will be entitled to exercise his, her or its warrant prior to the scheduled
redemption date. However, the price of the Class A common stock may fall below the $18.00 redemption trigger price as well as
the $11.50 warrant exercise price (for whole shares) after the redemption notice is issued.

 

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If
we call the warrants for redemption as described above, our management will have the option to require any holder that wishes
to exercise his, her or its warrant to do so on a “cashless basis.” In determining whether to require all holders
to exercise their warrants on a “cashless basis,” our management will consider, among other factors, our cash position,
the number of warrants that are outstanding and the dilutive effect on our stockholders of issuing the maximum number of shares
of Class A common stock issuable upon the exercise of our warrants. If our management takes advantage of this option, all holders
of warrants would pay the exercise price by surrendering their warrants for that number of shares of Class A common stock equal
to the quotient obtained by dividing (x) the product of the number of shares of Class A common stock underlying the warrants,
multiplied by the difference between the exercise price of the warrants and the “fair market value” (defined below)
by (y) the fair market value. The “fair market value’ shall mean the average reported last sale price of the Class
A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is
sent to the holders of warrants. If our management takes advantage of this option, the notice of redemption will contain the information
necessary to calculate the number of shares of Class A common stock to be received upon exercise of the warrants, including the
“fair market value” in such case. Requiring a cashless exercise in this manner will reduce the number of shares to
be issued and thereby lessen the dilutive effect of a warrant redemption. We believe this feature is an attractive option to us
if we do not need the cash from the exercise of the warrants after our business combination. If we call our warrants for redemption
and our management does not take advantage of this option, our sponsor and its permitted transferees would still be entitled to
exercise their private placement warrants for cash or on a cashless basis using the same formula described above that other warrant
holders would have been required to use had all warrant holders been required to exercise their warrants on a cashless basis,
as described in more detail below.

 

A
holder of a warrant may notify us in writing in the event it elects to be subject to a requirement that such holder will not have
the right to exercise such warrant, to the extent that after giving effect to such exercise, such person and any of its affiliates
or any other person subject to aggregation with such person for purposes of the “beneficial ownership” test under
Section 13 of the Exchange Act, or any “group” (within the meaning of Section 13 of the Exchange Act) of which such
person is or may be deemed to be a part, would beneficially own (within the meaning of Section 13 of the Exchange Act) (or to
the extent that for any reason the equivalent calculation under Section 16 of the Exchange Act and the rules and regulations thereunder
would result in a higher ownership percentage, such higher percentage would be) in excess of 4.9% or 9.9% of the shares of Class
A common stock outstanding immediately after giving effect to such exercise.

 

If
the number of outstanding shares of Class A common stock is increased by a stock dividend payable in shares of Class A common
stock, or by a split-up of shares of Class A common stock or other similar event, then, on the effective date of such stock dividend,
split-up or similar event, the number of shares of Class A common stock issuable on exercise of each warrant will be increased
in proportion to such increase in the outstanding shares of Class A common stock. A rights offering to holders of Class A common
stock entitling holders to purchase shares of Class A common stock at a price less than the fair market value will be deemed a
stock dividend of a number of shares of Class A common stock equal to the product of (i) the number of shares of Class A common
stock actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are
convertible into or exercisable for Class A common stock) multiplied by (ii) one (1) minus the quotient of (x) the price per share
of Class A common stock paid in such rights offering divided by (y) the fair market value. For these purposes (i) if the rights
offering is for securities convertible into or exercisable for Class A common stock, in determining the price payable for Class
A common stock, there will be taken into account any consideration received for such rights, as well as any additional amount
payable upon exercise or conversion and (ii) fair market value means the volume weighted average price of Class A common stock
as reported during the ten (10) trading day period ending on the trading day prior to the first date on which the shares of Class
A common stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.

 

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In
addition, if we, at any time while the warrants are outstanding and unexpired, pay a dividend or make a distribution in cash,
securities or other assets to the holders of Class A common stock on account of such shares of Class A common stock (or other
shares of our capital stock into which the warrants are convertible), other than (a) as described above, (b) certain ordinary
cash dividends, (c) to satisfy the redemption rights of the holders of Class A common stock in connection with the business combination,
(d) as a result of the repurchase of shares of Class A common stock by the company if the business combination is presented to
the stockholders of the company for approval, or (e) in connection with the redemption of our public shares upon our failure to
complete our initial business combination, then the warrant exercise price will be decreased, effective immediately after the
effective date of such event, by the amount of cash and/or the fair market value of any securities or other assets paid on each
share of Class A common stock in respect of such event.

 

If
the number of outstanding shares of our Class A common stock is decreased by a consolidation, combination, reverse stock split
or reclassification of shares of Class A common stock or other similar event, then, on the effective date of such consolidation,
combination, reverse stock split, reclassification or similar event, the number of shares of Class A common stock issuable on
exercise of each warrant will be decreased in proportion to such decrease in outstanding shares of Class A common stock.

 

Whenever
the number of shares of Class A common stock purchasable upon the exercise of the warrants is adjusted, as described above, the
warrant exercise price will be adjusted by multiplying the warrant exercise price immediately prior to such adjustment by a fraction
(x) the numerator of which will be the number of shares of Class A common stock purchasable upon the exercise of the warrants
immediately prior to such adjustment, and (y) the denominator of which will be the number of shares of Class A common stock so
purchasable immediately thereafter.

 

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In
case of any reclassification or reorganization of the outstanding shares of Class A common stock (other than those described above
or that solely affects the par value of such shares of Class A common stock), or in the case of any merger or consolidation of
us with or into another corporation (other than a consolidation or merger in which we are the continuing corporation and that
does not result in any reclassification or reorganization of our outstanding shares of Class A common stock), or in the case of
any sale or conveyance to another corporation or entity of the assets or other property of us as an entirety or substantially
as an entirety in connection with which we are dissolved, the holders of the warrants will thereafter have the right to purchase
and receive, upon the basis and upon the terms and conditions specified in the warrants and in lieu of the shares of our Class
A common stock immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind
and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization,
merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the warrants would have
received if such holder had exercised their warrants immediately prior to such event. However, if such holders were entitled to
exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon such consolidation or
merger, then the kind and amount of securities, cash or other assets for which each warrant will become exercisable will be deemed
to be the weighted average of the kind and amount received per share by such holders in such consolidation or merger that affirmatively
make such election, and if a tender, exchange or redemption offer has been made to and accepted by such holders (other than a
tender, exchange or redemption offer made by the company in connection with redemption rights held by stockholders of the company
as provided for in the company’s amended and restated certificate of incorporation or as a result of the repurchase of shares
of Class A common stock by the company if a proposed initial business combination is presented to the stockholders of the company
for approval) under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with
members of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part, and together
with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members of any
such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange
Act) more than 50% of the outstanding shares of Class A common stock, the holder of a warrant will be entitled to receive the
highest amount of cash, securities or other property to which such holder would actually have been entitled as a stockholder if
such warrant holder had exercised the warrant prior to the expiration of such tender or exchange offer, accepted such offer and
all of the Class A common stock held by such holder had been purchased pursuant to such tender or exchange offer, subject to adjustments
(from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided
for in the warrant agreement. Additionally, if less than 70% of the consideration receivable by the holders of Class A common
stock in such a transaction is payable in the form of Class A common stock in the successor entity that is listed for trading
on a national securities exchange or is quoted in an established over-the-counter market, or is to be so listed for trading or
quoted immediately following such event, and if the registered holder of the warrant properly exercises the warrant within thirty
days following public disclosure of such transaction, the warrant exercise price will be reduced as specified in the warrant agreement
based on the per share consideration minus Black-Scholes Warrant Value (as defined in the warrant agreement) of the warrant in
order to determine and realize the option value component of the warrant. This formula is to compensate the warrant holder for
the loss of the option value portion of the warrant value due to the requirement that the warrant holder exercise the warrant
within 30 days of the event. The Black-Scholes model is an accepted pricing model for estimating fair market value where no quoted
market price for an instrument is available.

 

The
warrants will be issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as
warrant agent, and us. You should review a copy of the warrant agreement, which will be filed as an exhibit to the registration
statement of which this prospectus is a part, for a complete description of the terms and conditions applicable to the warrants.
The warrant agreement provides that the terms of the warrants may be amended without the consent of any holder to cure any ambiguity
or correct any defective provision, but requires the approval by the holders of at least 65% of the then outstanding public warrants
to make any change that adversely affects the interests of the registered holders of public warrants.

 

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The
warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant
agent, with the exercise form on the reverse side of the warrant certificate completed and executed as indicated, accompanied
by full payment of the exercise price (or on a cashless basis, if applicable), by certified or official bank check payable to
us, for the number of warrants being exercised. The warrant holders do not have the rights or privileges of holders of Class A
common stock and any voting rights until they exercise their warrants and receive shares of Class A common stock. After the issuance
of shares of Class A common stock upon exercise of the warrants, each holder will be entitled to one vote for each share held
of record on all matters to be voted on by stockholders.

 

Warrants
may be exercised only for a whole number of shares of Class A common stock. No fractional shares will be issued upon exercise
of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share, we
will, upon exercise, round down to the nearest whole number the number of shares of Class A common stock to be issued to the warrant
holder.

 

As
a result, warrant holders not purchasing an even number of warrants must sell any odd number of warrants in order to obtain full
value from the fractional interest that will not be issued.

 

Units

 

Each
unit consists of one share of Class A common stock and one warrant, each as described herein. Because Class A common stock and
warrants trade separately from the units, holders of units have the option to continue to hold units or separate their units into
the component securities. Unit holders will need to have their brokers contact our transfer agent in order to separate the units
into shares of Class A common stock and warrants.

 

Our
Transfer Agent and Warrant Agent

 

The
transfer agent for our common stock and warrant agent for our warrants is Continental Stock Transfer & Trust Company. We have
agreed to indemnify Continental Stock Transfer & Trust Company in its roles as transfer agent and warrant agent, its agents
and each of its stockholders, directors, officers and employees against all liabilities, including judgments, costs and reasonable
counsel fees that may arise out of acts performed or omitted for its activities in that capacity, except for any liability due
to any gross negligence, willful misconduct or bad faith of the indemnified person or entity.

 

    10

     

    

 

Certain
Anti-Takeover Provisions of Delaware Law and our Amended and Restated Certificate of Incorporation and Bylaws

 

We
are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. This statute prevents certain Delaware
corporations, under certain circumstances, from engaging in a “business combination” with:

 

		●	a
                                         stockholder who owns 15% or more of our outstanding voting stock (otherwise known as
                                         an “interested stockholder”);

		●	an
                                         affiliate of an interested stockholder; or

		●	an
                                         associate of an interested stockholder, for three years following the date that the stockholder
                                         became an interested stockholder.

 

A
“business combination” includes a merger or sale of more than 15% of our assets. However, the above provisions of
Section 203 do not apply if:

 

		●	our
                                         board of directors approves the transaction that made the stockholder an “interested
                                         stockholder,” prior to the date of the transaction;

		●	after
                                         the completion of the transaction that resulted in the stockholder becoming an interested
                                         stockholder, that stockholder owned at least 85% of our voting stock outstanding at the
                                         time the transaction commenced, other than statutorily excluded shares of common stock;
                                         or

		●	on
                                         or subsequent to the date of the transaction, the business combination is approved by
                                         our board of directors and authorized at a meeting of our stockholders, and not by written
                                         consent, by an affirmative vote of at least two-thirds of the outstanding voting stock
                                         not owned by the interested stockholder.

 

Our
amended and restated certificate of incorporation provides that our board of directors is classified into two classes of directors.
As a result, in most circumstances, a person can gain control of our board only by successfully engaging in a proxy contest at
two or more annual meetings.

 

Our
authorized but unissued common stock and preferred stock are available for future issuances without stockholder approval and could
be utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee
benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock could render more difficult
or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

 

Exclusive
forum for certain lawsuits

 

Our
amended and restated certificate of incorporation requires, to the fullest extent permitted by law, that derivative actions brought
in our name, actions against directors, officers and employees for breach of fiduciary duty and other similar actions may be brought
only in the Court of Chancery in the State of Delaware and, if brought outside of Delaware, the stockholder bringing such suit
will be deemed to have consented to service of process on such stockholder’s counsel. Although we believe this provision
benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies,
the provision may have the effect of discouraging lawsuits against our directors and officers.

 

Special
meeting of stockholders

 

Our
bylaws provide that special meetings of our stockholders may be called only by a majority vote of our board of directors, by our
Chief Executive Officer or by our Chairman.

 

    11

     

    

 

Advance
notice requirements for stockholder proposals and director nominations

 

Our
bylaws provide that stockholders seeking to bring business before our annual meeting of stockholders, or to nominate candidates
for election as directors at our annual meeting of stockholders must provide timely notice of their intent in writing. To be timely,
a stockholder’s notice will need to be received by the company secretary at our principal executive offices not later than
the close of business on the 90th day nor earlier than the opening of business on the 120th day prior to
the anniversary of the immediately preceding annual meeting of stockholders. Pursuant to Rule 14a-8 of the Securities Act, proposals
seeking inclusion in our annual proxy statement must comply with the notice periods contained therein. Our bylaws also specify
certain requirements as to the form and content of a stockholders’ meeting. These provisions may preclude our stockholders
from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting
of stockholders.

 

Action
by written consent

 

Any
action required or permitted to be taken by our common stockholders must be effected by a duly called annual or special meeting
of such stockholders and may not be effected by written consent of the stockholders other than with respect to our Class F Common
stock.

 

Classified
Board of Directors

 

Our
board of directors will initially be divided into two classes, Class I and Class II, with members of each class serving staggered
two-year terms. Our amended and restated certificate of incorporation will provide that the authorized number of directors may
be changed only by resolution of the board of directors. Subject to the terms of any preferred stock, any or all of the directors
may be removed from office at any time, but only for cause and only by the affirmative vote of holders of a majority of the voting
power of all then outstanding shares of our capital stock entitled to vote generally in the election of directors, voting together
as a single class. Any vacancy on our board of directors, including a vacancy resulting from an enlargement of our board of directors,
may be filled only by vote of a majority of our directors then in office.

 

Class
F Common Stock Consent Right

 

For
so long as any shares of Class F common stock remain outstanding, we may not, without the prior vote or written consent of the
holders of a majority of the shares of Class F common stock then outstanding, voting separately as a single class, amend, alter
or repeal any provision our certificate of incorporation, whether by merger, consolidation or otherwise, if such amendment, alteration
or repeal would alter or change the powers, preferences or relative, participating, optional or other or special rights of the
Class F common stock. Any action required or permitted to be taken at any meeting of the holders of Class F common stock may be
taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action
so taken, shall be signed by the holders of the outstanding Class F common stock having not less than the minimum number of votes
that would be necessary to authorize or take such action at a meeting at which all shares of Class F common stock were present
and voted.

 

 

12pjt-ex41_1201.htm

Exhibit 4.1

DESCRIPTION OF SECURITIES REGISTERED PURSUANT TO

SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

PJT Partners Inc. has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our Class A common stock.

Unless otherwise indicated or the context requires otherwise, references to “we,” “us,” “our,” and “our company” refer to PJT Partners Inc. and not to any of its subsidiaries.

Description of Capital Stock

The following is a description of the material terms of, and is qualified in its entirety by, our amended and restated certificate of incorporation and amended and restated bylaws, each of which are on file with the Securities and Exchange Commission as exhibits to our periodic reports and are incorporated herein by reference. 

General 

Our purpose is to engage in any lawful act or activity for which corporations may now or hereafter be organized under the Delaware General Corporation Law (the “DGCL”). Our authorized capital stock consists of 3,000,000,000 shares of Class A common stock, par value $0.01 per share, 1,000,000 shares of Class B common stock, par value $0.01 per share, and 300,000,000 shares of preferred stock, par value $0.01 per share. Unless our board of directors determines otherwise, we will issue all shares of our capital stock in uncertificated form.

Common Stock

Class A common stock

Holders of shares of our Class A common stock are entitled to one vote for each share held of record on all matters on which stockholders are entitled to vote generally, including the election or removal of directors. The holders of our Class A common stock do not have cumulative voting rights in the election of directors.

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

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

All shares of our Class A common stock that will be outstanding at the time of the completion of the spin-off were fully paid and non-assessable. The Class A common stock is not be subject to further calls or assessments by us. Holders of shares of our Class A common stock do not have preemptive, subscription, redemption or conversion rights. There are no redemption or sinking fund provisions applicable to the Class A common stock. The rights, powers and privileges of our Class A common stock are subject to those of the holders of any shares of our preferred stock or any other series or class of stock we may authorize and issue in the future.

Class B common stock

With respect to all matters presented to stockholders of PJT Partners Inc. other than director elections and removals, each holder of Class B common stock shall be entitled, without regard to the number of shares of Class B common stock held by such holder, to one vote for each Class A Unit (including for this purpose, the number of Partnership Units that would be held by such holder assuming the conversion on such date of all vested and unvested LTIP Units held of record by such holder) in PJT Partners Holdings LP held by such holder. Shares of Class B common stock will initially entitle holders to only one vote per share in the election and removal of directors of PJT Partners Inc. However, all or a portion of the voting power of Class B common stock with respect to the election of 

 

 

directors of PJT Partners Inc. may be increased to up to the number of votes to which a holder is then entitled on all other matters presented to stockholders as described below.

By written notice to PJT Partners Inc., each holder of Class B common stock may, at any time, request that such holder become entitled to a number of votes in the election and removal of directors of PJT Partners Inc. not to exceed at any time the number of votes to which such holder is then entitled on all other matters presented to stockholders, or such lesser number of votes as may be specified in such holder’s request. Our board of directors, in its sole discretion, may approve or decline any such request, and no such holder shall become entitled to such requested voting power in respect of such shares of Class B common stock unless and until the board of directors approves such request. Pursuant to the Tax Matters Agreement, we agreed to certain limitations on our ability to take certain actions or to enter into certain transactions that could cause any portion of the spin-off to be taxable to one of the two corporate subsidiaries that will distribute their interest in our business to other Blackstone entities, including with respect to equity issuances or other actions that result in the acquisition by holders of our stock of the power to vote in the election and removal of directors (or the increase in such voting power).

If at any time the ratio at which Partnership Units are exchangeable for shares of our Class A common stock changes from one-for-one, the number of votes to which Class B common stockholders are entitled will be adjusted accordingly. Holders of shares of our Class B common stock will vote together with holders of our Class A common stock as a single class on matters on which stockholders are entitled to vote generally, except as otherwise required by law.

Holders of our Class B common stock do not have any right to receive dividends or to receive a distribution upon a liquidation or winding up of PJT Partners Inc.

Preferred Stock

No shares of preferred stock is presently issued or outstanding. Our amended and restated certificate of incorporation authorizes our board of directors to establish one or more series of preferred stock (including convertible preferred stock). Unless required by law or any stock exchange, the authorized shares of preferred stock will be available for issuance without further action by holders of our Class A or Class B common stock. Our board of directors is able to determine, with respect to any series of preferred stock, the powers (including voting powers), preferences and relative, participating, optional or other special rights, and the qualifications, limitations or restrictions thereof, including, without limitation:

	
 
	
•
	
the designation of the series;

	
 
	
•
	
the number of shares of the series, which our board of directors may, except where otherwise provided in the preferred stock designation, increase (but not above the total number of authorized share of the class) or decrease (but not below the number of shares then outstanding);

	
 
	
•
	
whether dividends, if any, will be cumulative or non-cumulative and the dividend rate of the series;

	
 
	
•
	
the dates at which dividends, if any, will be payable;

	
 
	
•
	
the redemption rights and price or prices, if any, for shares of the series;

	
 
	
•
	
the terms and amounts of any sinking fund provided for the purchase or redemption of shares of the series;

	
 
	
•
	
the amounts payable on shares of the series in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the affairs of our company;

	
 
	
•
	
whether the shares of the series will be convertible into shares of any other class or series, or any other security, of our company or any other entity, and, if so, the specification of the other class or series or other security, the conversion price or prices or rate or rates, any rate adjustments, the date or dates as of which the shares will be convertible and all other terms and conditions upon which the conversion may be made;

	
 
	
•
	
restrictions on the issuance of shares of the same series or of any other class or series; and

	
 
	
•
	
the voting rights, if any, of the holders of the series.

We could issue a series of preferred stock that could, depending on the terms of the series, impede or discourage an acquisition attempt or other transaction that some, or a majority, of the holders of our Class A common stock might believe to be in their best interests or in which the holders of our Class A common stock might 

 

 

receive a premium over the market price of the shares of Class A common stock. Additionally, the issuance of preferred stock may adversely affect the holders of our Class A common stock by restricting dividends on the Class A common stock, diluting the voting power of the Class A common stock or subordinating the liquidation rights of the Class A common stock. As a result of these or other factors, the issuance of preferred stock could have an adverse impact on the market price of our Class A common stock.

Authorized but Unissued Capital Stock

Delaware law does not require stockholder approval for any issuance of authorized shares. However, the listing requirements of NYSE, which would apply so long as the shares of Class A common stock remains listed on NYSE, require stockholder approval of certain issuances equal to or exceeding 20% of the then outstanding voting power or the then outstanding number of shares of Class A common stock (we believe the position of NYSE is that the calculation in this latter case treats shares issuable upon exchange of outstanding Partnership Units not held by PJT Partners Inc. as outstanding). These additional shares may be used for a variety of corporate purposes, including future public offerings, to raise additional capital or to facilitate acquisitions.

One of the effects of the existence of unissued and unreserved common stock or preferred stock may be to enable our board of directors to issue shares to persons friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of our company by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity of our management and possibly deprive the stockholders of opportunities to sell their shares at prices higher than prevailing market prices.

Dividends

The DGCL permits a corporation to declare and pay dividends out of “surplus” or, if there is no “surplus,” out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. “Surplus” is defined as the excess of the net assets of the corporation over the amount determined to be the capital of the corporation by its board of directors. The capital of the corporation is typically calculated to be (and cannot be less than) the aggregate par value of all issued shares of capital stock. Net assets equals the fair value of the total assets minus total liabilities. The DGCL also provides that dividends may not be paid out of net profits if, after the payment of the dividend, remaining capital would be less than the capital represented by the outstanding stock of all classes having a preference upon the distribution of assets. Declaration and payment of any dividend will be subject to the discretion of our board of directors.

We intend to cause PJT Partners Holdings LP to make pro rata cash distributions, to the extent of available cash, to the holders of partnership interests in PJT Partners Holdings LP in amounts equal to 50% of the taxable income allocated to such holders for purposes of funding their tax obligations in respect of the income of PJT Partners Holdings LP that is allocated to them.

Stockholder Meetings

Our amended and restated certificate of incorporation and our amended and restated bylaws provide that annual stockholder meetings will be held at a date, time and place, if any, as exclusively selected by the chairman of our board of directors. Our amended and restated bylaws provide that special meetings of the stockholders may be called only by or at the direction of the board of directors, the chairman of our board or the chief executive officer. To the extent permitted under applicable law, we may conduct meetings by remote communications, including by webcast.

Anti-Takeover Effects of Our Amended and Restated Certificate of Incorporation, Our Amended and Restated Bylaws, Our Stockholder Rights Agreement and Certain Provisions of Delaware Law

Undesignated Preferred Stock

The ability to authorize undesignated preferred stock will make it possible for our board of directors to issue preferred stock with super majority voting, special approval, dividend or other rights or preferences on a discriminatory basis that could impede the success of any attempt to acquire us or otherwise effect a change in 

 

 

control of us. These and other provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control or management of our company.

Classified Board of Directors

Our board of directors is divided into three classes that is, as nearly as possible, of equal size with members of each class serving staggered three-year terms. The Class I directors include Paul J. Taubman and Emily K. Rafferty, the Class II directors include Dennis S. Hersch and Thomas M. Ryan, and the Class III directors include James Costos and Kenneth C. Whitney.

Requirements for Advance Notification of Stockholder Meetings, Nominations and Proposals

Our amended and restated bylaws establish advance notice procedures for stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. For any matter to be “properly brought” before a meeting, a stockholder will have to comply with advance notice requirements and provide us with certain information. Our board of directors may increase or decrease the size of the board of directors, and vacancies and newly created directorships may be filled only by a vote of a majority of the directors then in office, even though less than a quorum, and not by the stockholders. Our amended and restated bylaws allow the presiding officer at a meeting of the stockholders to adopt rules and regulations for the conduct of meetings which may have the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed.

These provisions may also defer, delay or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to influence or obtain control of our company.

Supermajority Provisions

Our amended and restated certificate of incorporation provides that the board of directors is expressly authorized to make, alter or repeal our bylaws and that our stockholders may only amend our bylaws with the approval of 75% or more of the voting power of all of the outstanding shares of our capital stock entitled to vote.

In addition, certain provisions of our amended and restated certificate of incorporation, including those providing for a classified board of directors, may be amended, altered, repealed or rescinded, in whole or in part, or any provision inconsistent therewith may be adopted, only with the approval of 75% or more of the voting power of all of the outstanding shares of our capital stock entitled to vote.

Nomination of CEO as Director; Rights of Chairman of the Board of Directors

Our amended and restated certificate of incorporation provides that our chief executive officer at the time of its adoption, to the extent such individual serves as chief executive officer and as a director, will (1) serve as chairman of the board of directors, (2) be assigned to Class I, (3) be nominated as a Class I director at the annual meeting of stockholders at which his initial term expires and (4) serve as the chairman of the nominating and governance committee of the board for so long as such service is permitted under the applicable rules of the NYSE and shall select the other members of the nominating and governance committee of the board. At such time as the chief executive officer and chairman of the board is not serving as the chairman of the nominating and governance committee, the chief executive officer and chairman of the board shall select the chairman and other members of the nominating and governance committee of the board, subject to the applicable rules of NYSE.

No Cumulative Voting

The DGCL provides that stockholders are not entitled to the right to cumulate votes in the election of directors unless our amended and restated certificate of incorporation provides otherwise. Our amended and restated certificate of incorporation does not provide for cumulative voting.

 

 

Stockholder Action by Written Consent

Pursuant to Section 228 of the DGCL, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, is signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of our stock entitled to vote thereon were present and voted, unless the company’s amended and restated certificate of incorporation provides otherwise. Our amended and restated certificate of incorporation does not permit our Class A common stockholders to act by consent in writing unless such action is recommended by all directors then in office, but does permit our Class B common stockholders to act by consent in writing without requiring any such recommendation by the directors then in office.

Delaware Anti-Takeover Statute

We are subject to Section 203 of the DGCL. Section 203 provides that, subject to certain exceptions specified in the law, a publicly-held Delaware corporation shall not engage in certain “business combinations” with any “interested stockholder” for a three-year period after the date of the transaction in which the person became an interested stockholder. These provisions generally prohibit or delay the accomplishment of mergers, assets or stock sales or other takeover or change-in-control attempts that are not approved by a company’s board of directors.

In general, Section 203 prohibits a publicly-held Delaware corporation from engaging, under certain circumstances, in a business combination with an interested stockholder for a period of three years following the date the person became an interested stockholder unless:

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

	
 
	
•
	
upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the 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 (1) shares owned by persons who are directors and also officers and (2) shares owned 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

	
 
	
•
	
on or subsequent to the date of the transaction, 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 which is not owned by the interested stockholder.

Generally, a business combination includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. An interested stockholder is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of a corporation’s outstanding voting stock.

Under certain circumstances, Section 203 makes it more difficult for a person who would be an “interested stockholder” to effect various business combinations with a corporation for a three-year period. Accordingly, Section 203 could have an anti-takeover effect with respect to certain transactions our board of directors does not approve in advance. The provisions of Section 203 may encourage companies interested in acquiring our company to negotiate in advance with our board of directors because the stockholder approval requirement would be avoided if our board of directors approves either the business combination or the transaction that results in the stockholder becoming an interested stockholder. However, Section 203 also could discourage attempts that might result in a premium over the market price for the shares held by stockholders. These provisions also may make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests.

Dissenters’ Rights of Appraisal and Payment

Under the DGCL, with certain exceptions, our stockholders will have appraisal rights in connection with a merger or consolidation of our company. Pursuant to the DGCL, stockholders who properly request and perfect 

 

 

appraisal rights in connection with such merger or consolidation will have the right to receive payment of the fair value of their shares as determined by the Delaware Court of Chancery.

Stockholders’ Derivative Actions

Under the DGCL, any of our stockholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of our shares at the time of the transaction to which the action relates or such stockholder’s stock thereafter devolved by operation of law.

Exclusive Forum

Our amended and restated certificate of incorporation provides that unless we consent to the selection of an alternative forum, the Delaware Court of Chancery shall be the sole and exclusive forum for any (1) derivative action or proceeding brought on behalf, to the fullest extent permitted by law, of our company, (2) action asserting a claim of breach of a fiduciary duty owed by any director or officer or stockholder of our company to our company or our company’s stockholders, creditors or other constituents, (3) action asserting a claim against our company or any director or officer of our company arising pursuant to any provision of the DGCL, or (4) action asserting a claim against our company or any director or officer of our company governed by the internal affairs doctrine. Any person or entity purchasing or otherwise acquiring or holding any interest in shares of capital stock of our company shall be deemed to have notice of and consented to the forum provisions in our amended and restated certificate of incorporation. However, it is possible that a court could find our forum selection provision to be inapplicable or unenforceable.

Limitations on Liability and Indemnification of Officers and Directors

The DGCL authorizes corporations to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for breaches of directors’ fiduciary duties, subject to certain exceptions. Our amended and restated certificate of incorporation includes a provision that eliminates the personal liability of directors for monetary damages for any breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL. The effect of these provisions is to eliminate the rights of us and our stockholders, through stockholders’ derivative suits on our behalf, to recover monetary damages from a director for breach of fiduciary duty as a director, including breaches resulting from grossly negligent behavior. However, exculpation does not apply to any director if the director has acted in bad faith, knowingly or intentionally violated the law, authorized illegal dividends or redemptions or derived an improper benefit from his or her actions as a director.

Our amended and restated bylaws provide that we must generally indemnify and advance expenses to our directors and officers to the fullest extent authorized by the DGCL. We also are expressly authorized to carry directors’ and officers’ liability insurance providing indemnification for our directors, officers and certain employees for some liabilities. We believe that these indemnification and advancement provisions and insurance are useful to attract and retain qualified directors and executive officers.

The limitation of liability, indemnification and advancement provisions in our amended and restated certificate of incorporation and amended and restated bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.

There is currently no pending material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought.

 

 

Transfer Agent and Registrar

The transfer agent and registrar for shares of our Class A common stock is American Stock Transfer & Trust Company, LLC.

Listing

Our Class A common stock is listed on NYSE under the ticker symbol “PJT.”

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