Document:

Exhibit

Exhibit 4.7

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED UNDER SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2019, Cedar Fair, L.P., a Delaware limited partnership (the “Partnership,” “our,” “us” or “we”), managed by Cedar Fair Management, Inc., an Ohio corporation (the “General Partner”), had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended, our Depositary Units (Representing Limited Partner Interests) (the “Units”).

The following description of our Units is a summary and does not purport to be complete. It is subject to and qualified in its entirety by provisions of Delaware law and by reference to the terms and provisions of our Certificate of Limited Partnership and our Sixth Amended and Restated Agreement of Limited Partnership, as further amended (the “Partnership Agreement”), which are filed with the Securities and Exchange Commission and are exhibits to our Annual Report on Form 10-K to which this description is an Exhibit.

General

Our Units are equity securities entitled to participate in cash distributions made by us from time to time in accordance with the provisions of our Partnership Agreement and, in the event of our liquidation, in any of our assets remaining after satisfaction of our liabilities and reserve requirements. The percentage interest represented by a Unit is equal to the ratio it bears at the time of determination to the total number of Units outstanding, multiplied by 99.999%, which is the aggregate percentage interest in the Partnership represented by all of the limited partnership Units. The Units are not subject to preemptive rights.

Each Unit evidences entitlement to participate in our profits, losses and cash distributions in accordance with the provisions of our Partnership Agreement and the percentage interest represented by that Unit. The percentage interest represented by any outstanding Unit will be subject to dilution if we issue additional Units or other securities.

As of December 31, 2019, 56,666,418 Units (excluding treasury Units) were issued and outstanding. Our Units are listed on the New York Stock Exchange under the symbol “FUN.”

Additional Issuances of Units and Securities

Our Partnership Agreement allows the General Partner to cause the Partnership to issue up to Seven Hundred Fifty Million (750,000,000) Units, options or other rights to acquire Units for any price, including a price that is more than or less than the fair market price of the Units at the time of issuance or exercise, without the consent of our limited partners. Such Units, options or other rights to acquire Units may be issued from time to time in one or more classes, or one or more series of such classes, with such designations, preferences and relative, participating, optional or other special rights, powers and duties, including rights, powers and duties senior or subordinate to existing classes and series of limited partners. The General Partner shall have sole and complete discretion in determining the consideration and terms and conditions with respect to any future issuance of Units, options or other rights to acquire Units. Because the rights and preferences set by the General Partner for additional issuances of Units and securities could be superior to the rights and preferences of the Units, the issuance of additional Units could adversely affect the rights of the limited partner unitholders and would have a dilutive effect on the Units then outstanding.

Voting Rights

Each holder of a Unit is entitled to one vote for each Unit held of record on the applicable record date on all matters presented to a vote of the unitholders.

Limited partner unitholders shall be entitled to vote on, consent to or approve only certain matters as described in our Partnership Agreement, including electing the board of directors of the General Partner, approving the transfer of interests of the General Partner, approving the withdrawal or removal of the General Partner, approving of matters related to the dissolution and liquidation of the Partnership, approving a transaction which results in a change of control of the Partnership and certain amendments to the Partnership Agreement.

1

Limited Partner Nominations of Directors of Our General Partner

Any limited partner of record may nominate one or more persons for election or reelection to the board of directors of our General Partner at an annual meeting of limited partners in accordance with our Partnership Agreement if the limited partner meets and complies with the notice, procedural, informational, and other requirements of the Partnership Agreement. Limited partners must give timely notice in writing to the secretary of the Partnership of any such nominations. To be timely, a limited partner’s notice must be delivered to or received by the Partnership not less than 60 days nor more than 90 days prior to the first anniversary of the preceding year’s annual meeting of limited partners. However, if the annual meeting is advanced more than 30 days prior to the anniversary or delayed more than 60 days after such anniversary, then to be timely such notice must be received by the Partnership no later than the later of 70 days prior to the date of the annual meeting or the 10th day following the day on which public announcement of the date of the annual meeting was made. In order for a unitholder’s notice to be proper, such notice must include all the necessary information prescribed in the Partnership Agreement and the nominating person and the unitholder-nominated director candidate must provide and timely supplement certain relevant background, biographical, security ownership and other information. In addition, the nominating person must be entitled to vote at and hold units as of the annual meeting. The Partnership and General Partner are not required to include in its proxy materials any person nominated by a unitholder.

Distributions

Our Partnership Agreement requires the General Partner to make regular cash distributions on a quarterly basis of all of the Partnership’s available cash to the partners of record in accordance with their respective percentage interests, where “available cash” means the operating revenues of the Partnership less the sum of (i) operating costs of the Partnership, (ii) payments of principal and interest on debt, (iii) provisions for reserves and taxes, and (iv) capital expenditures.

Rights to Information

Our Partnership Agreement provides that a limited partner can, for a purpose reasonably related to his or her interest as a limited partner, upon reasonable written demand stating the purpose of such demand and at his or her own expense, have furnished to him or her:

		
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	a current list of the name and last known address of each partner;

		
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	copies of our Partnership Agreement and our Certificate of Limited Partnership and all amendments thereto; and

		
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	certain information regarding the status of our business and financial condition.

The General Partner may, and intends to, keep confidential from the limited partners trade secrets or other information the disclosure of which the General Partner determines is not in our best interests or that we are required by law or by agreements with third parties to keep confidential.

Indemnification

Our Partnership Agreement provides that we will indemnify our General Partner and its affiliates to the fullest extent permitted by law against liabilities and expenses (including legal fees and expenses) incurred by the indemnified persons in connection with litigation or threatened litigation in which such persons may be involved by reason of their management of our affairs. Any indemnification under these provisions will be limited to our assets.

We are authorized to purchase insurance, to the extent and in such amounts as are considered reasonable and commercially available, against liabilities asserted against and expenses incurred by any persons in connection with our activities, whether or not we would have the power to indemnify such persons against such liabilities under the provisions described above. Our Partnership Agreement provides that we may enter into contracts with indemnified persons or adopt written procedures pursuant to which arrangements are made for the advancement of expenses and the funding of our indemnity obligations and containing such other procedures regarding indemnification as are appropriate.

Limited Liability

Assuming that a limited partner does not take part in the control of our business and otherwise acts in conformity with the provisions of our Partnership Agreement, his, her or its liability generally will be limited to the amount he, she or it (or his, her or its predecessor) contributed to our capital. 

2

Liquidation Rights

Upon the Partnership’s dissolution, each partner shall receive the proceeds of the liquidation in accordance with the positive balances of their respective capital accounts after payments to creditors of the Partnership and the funding of any reserves for contingent liabilities in amounts determined by the liquidator to be appropriate for such purposes.

Amendment of Our Partnership Agreement

Our General Partner may make amendments to our Partnership Agreement without the consent of the unitholders, if, among other things, such amendments do not adversely affect the unitholders in any material respect, are necessary or desirable to satisfy any requirement, condition or guideline contained in any opinion, directive, order, ruling or regulation of any federal or state agency or contained in any federal or state statute, are necessary or desirable to implement certain tax-related provisions of our Partnership Agreement, are necessary or desirable to facilitate the trading of the Units (or the classification of outstanding Units) or to comply with certain rules, regulations, guidelines or requirements of any securities exchange on which the Units are or will be listed for trading.

          Amendments to our Partnership Agreement may be proposed only by our General Partner or by holders of at least 10% of the outstanding Units (subject to approval by our General Partner). Our General Partner is not required to submit any proposed amendment to the unitholders for consideration if our General Partner has received written consent to such amendment from the holders of the requisite percentage of Units required to approve the proposed amendment. Proposed amendments must be approved by the holders of more than 50% of the Units, unless a greater percentage interest is required by the Partnership Agreement.

          The approval by the holders of at least 85% of the Units must be obtained in respect of any amendment unless we have received an opinion of counsel that the amendment will not result in the loss of limited liability of any limited partner or cause us to be treated as an association taxable as a corporation for federal income tax purposes (unless we are already so treated in all material respects). Any provision of our Partnership Agreement providing for a vote of the holders of a specified percentage of the Units may be amended only with the consent of the holders of such percentage. The provisions of the Partnership Agreement providing for the limited partners to elect the board of directors of the General Partner shall not be amended without the affirmative vote of partners whose percentage interest constitutes at least 80% of the aggregate percentage interest of partners.

Transfer Agent

American Stock Transfer & Trust Company is the transfer agent for our Units. Each holder of Units as reflected on the records of the transfer agent is entitled to receive cash distributions declared and federal tax information and other reports distributed to unitholders.

Anti-Takeover Provisions In Our Partnership Agreement

The Partnership Agreement contains two supermajority voting provisions that have an anti-takeover effect. Both of these supermajority provisions make it more difficult to remove board members and management and could prevent consummation of a change in control transaction even if a majority of the unitholders favored the transaction. First, a transaction resulting in a change in control, as defined in our Partnership Agreement, or the sale of all or substantially all of the assets of Cedar Point, requires approval by the affirmative vote of at least two-thirds of the outstanding Units. In contrast, Delaware limited partnership law only requires an affirmative vote of a majority of outstanding units to approve a merger or consolidation. Second, our Partnership Agreement includes a provision whereby directors of our General Partner can only be removed, with or without cause, by an affirmative vote of 80% of the outstanding Units.

In addition to the supermajority provisions, the board of directors of the General Partner is divided into three classes, with directors in each class serving for a term of three years and the term of one class expiring at each annual meeting of unitholders. This could delay a holder of Units representing a majority of the voting power from obtaining control of the board of directors because the holder would not be able to replace a majority of the directors prior to at least the second annual meeting of unitholders after it acquired a majority position.

Under our Partnership Agreement, the General Partner has the right to cause the issuance of Units or rights to acquire Units at a price that is more or less than the fair market price of the Units at the time of issuance, and amend the Partnership Agreement to implement the terms and conditions of any such rights issued. See “Additional Issuances of Units and Securities.”

3Exhibit

Exhibit 10.20 

TRANSITION AGREEMENT

This Transition Agreement (this “Agreement”), dated December 18, 2019, is made by and among Cedar Fair, L.P., a publicly traded Delaware limited partnership, Cedar Fair Management, Inc., an Ohio corporation (“Cedar Fair Management”), Magnum Management Corporation, an Ohio corporation (“Magnum”), and Matthew A. Ouimet (the “Executive”).

WHEREAS, Cedar Fair, L.P. is affiliated with several corporations and partnerships including, without limitation, Cedar Fair Management and Magnum (collectively, “Cedar Fair” or the “Company”);

WHEREAS, Cedar Fair Management manages the day-to-day activities of, and establishes the long-term objectives for, Cedar Fair;

WHEREAS, the Company has successfully completed its Chief Executive Officer transition, and the Board of Directors of Cedar Fair Management (the “Board”) has determined that it is in the best interests of all stakeholders to effectuate an orderly and seamless transition from the outgoing Executive Chairman of the Board (“Executive Chairman”), Executive, to the newly appointed non-employee Chairman of the Board, Daniel J. Hanrahan;

WHEREAS, the Board has further determined that this objective can best be achieved by Executive continuing to remain on the Board as a non-employee director through the expiration of Executive’s current director’s term and until Executive’s respective successor is duly elected and qualified, and the Board and Executive desire to move forward with a mutually agreed upon structural transition;

WHEREAS, Cedar Fair, L.P., Cedar Fair Management, Magnum and Executive are parties to that certain Employment Agreement, dated October 4, 2017 (the “Employment Agreement”), and Section 12.3 of the Employment Agreement requires any amendment of the Employment Agreement to be in writing and signed by the parties thereto; and

WHEREAS, the Board and Executive intend and agree that, effective 11:59 P.M. Eastern on December 31, 2019 (the “Effective Time”), this Agreement shall amend the Employment Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive agree as follows:

1.Definitions.  Capitalized terms used and not defined in this Agreement have the respective meanings assigned to them in the Employment Agreement.

2.Transition of Board Chair Role and End Date for Executive’s Employment.  As of the Effective Time, Executive shall cease to be employed by the Company, and shall cease to serve as the Chairman of the Board and as an officer of the Company and any of its Affiliates, but Executive will continue to remain in service on the Board as a non-employee director through the expiration of Executive’s current director term and until Executive’s respective successor is duly elected and qualified (the “Transition”). The Company and Executive hereby waive any rights to prior notification of the Transition and acknowledge that the Employment Period will end as of the Effective Time and that Executive shall not be entitled to receive Base Salary, benefits or other compensation as an employee or officer of the Company from and after the Effective Time.  Notwithstanding anything to the contrary in the Employment Agreement, including Section 8.5 thereof, the termination of Executive’s employment in connection with the Transition shall not be considered a resignation by Executive or a termination of Executive’s employment without Cause, and Executive shall not be required to resign from the Board.

3.Treatment of Executive’s Outstanding Incentive Compensation. The Company and Executive agree that the following provisions shall replace and apply in lieu of Sections 6.1, 6.2 and 6.3 of the Employment Agreement:

3.1.Annual Cash Incentive Compensation.  Notwithstanding anything to the contrary contained in the Employment Agreement and the Company’s cash incentive compensation plans, including the Company’s Omnibus Plan and any award thereunder, any cash incentive compensation earned under Executive’s outstanding cash incentive award with respect to the 2019 calendar year (the “2019 Cash Incentive Award”), but unpaid as of the Effective Time, shall be payable to Executive at the same time that other senior executives of the Company receive bonus payments with respect to the 2019 calendar year as if Executive had continued to be employed by the Company. Executive shall be required to remain in continuous service to the Company as a 

non-employee director through the date of payment in order to be entitled to payment of the 2019 Cash Incentive Award. Except as expressly provided herein, the terms of the 2019 Cash Incentive Award that were previously approved by the Company’s compensation committee, including Executive’s performance objectives, payout levels as a percentage of the target award, and percentage of Base Salary that may be earned for the 2019 Cash Incentive Award, shall remain in full force and effect, and the final payout amount will be determined based on the actual level of performance achieved consistent with the Company’s standard payout calculation.

		
	3.2.
	Long-Term Equity Incentive Compensation.

3.2.1.Restricted Unit Awards. Notwithstanding anything to the contrary contained in the Employment Agreement, the Company’s Omnibus Plan and any applicable award agreements or declarations, Executive shall not forfeit any of Executive’s outstanding restricted units as a result of the Transition. Instead, the vesting of Executive’s outstanding restricted units shall be subject to the Executive maintaining continuous service as a non-employee director of the Board throughout the applicable restricted period, and any restrictions on the outstanding restricted units shall lapse upon Executive’s completion of such continuous service throughout the applicable restricted period.

3.2.2.Performance Unit Awards.  Notwithstanding anything to the contrary contained in the Employment Agreement, the Company’s Omnibus Plan and any applicable award agreement, Executive shall not forfeit any of Executive’s outstanding performance units under Executive’s 2017-2019 Performance Award (the “2017-2019 Performance Award”) as a result of the Transition. Instead, the vesting of Executive’s 2017-2019 Performance Award shall be subject to Executive’s continuous service as a non-employee director of the Board through the payment date of the 2017-2019 Performance Award, and such continuous service as a director through the payment date shall satisfy any continuous employment requirement of the 2017-2019 Performance Award. Except as expressly provided herein, the terms of the 2017-2019 Performance Award Agreement, including Executive’s performance objectives, target and maximum number of potential performance units, payout levels as a percentage of the target award and payment date provisions, shall remain in full force and effect, and the final payout amount will be determined based on the actual level of performance achieved consistent with the Company’s standard payout calculation.

3.3.Option Awards.  Notwithstanding anything to the contrary contained in the Employment Agreement, the Company’s incentive compensation plans, including the Company’s Omnibus Plan, and any applicable award agreement, the Transition shall not constitute a “Separation from Service” as defined under the applicable plan or award agreements. The option award agreements with respect to Executive’s outstanding option award agreements are hereby amended to provide that a “Separation from Service” as used therein shall mean termination of service on the Board as a non-employee director.

3.4.Accrued and Unpaid Amounts; No Other Severance.  Within thirty (30) days following the Effective Time, Executive shall be entitled to (i) payment of Executive’s accrued and unpaid Base Salary, (ii) reimbursement of expenses under Section 7 of the Employment Agreement, and (iii) all other accrued amounts or accrued benefits due to Executive in accordance with the Company’s benefit plans, programs or policies (other than severance), in each case accrued as of the Effective Time. Executive hereby acknowledges and agrees that, other than the payments and awards described in this Section 3, Executive shall not be entitled to any other payments or severance under any Company benefit plan or severance policy generally available to the Company’s employees or otherwise.

4.Condition to Payment.  All payments due to Executive under this Agreement which are not otherwise required by law shall be payable only if Executive delivers to the Company and does not revoke a general release of all claims in the form attached as Exhibit A hereto (the “Release”). The Release shall not be executed or delivered by Executive until on or after January 1, 2020. The Release shall be executed and delivered (and no longer subject to revocation) no later than the first payment date  of the awards contemplated in Section 3 hereof. After the Release has been executed and delivered, it shall not be subject to revocation except as specifically set forth in Section 3.a.iv of the Release. Failure to timely execute and return such Release or revocation thereof shall be a waiver by Executive of Executive’s right to payments due under this Agreement, which are not otherwise required by law. In addition, those payments shall be conditioned on Executive compliance with Section 8 and Section 9 of the Employment Agreement.

5.Termination of the Employment Agreement.  Subject to the survival provisions contained in the Employment Agreement and the Release, as of the Effective Time, the Employment Agreement shall terminate and shall no longer be in force and effect.

		
	6.
	Miscellaneous.

6.1.Governing Law.  This Agreement shall be construed under and enforced in accordance with the laws of the State of Ohio, without regard to the conflicts of law provisions thereof.

6.2.Assignment and Transfer.  The provisions of this Agreement shall be binding on and shall inure to the benefit of the Company and any successor in interest to the Company who acquires all or substantially all of the Company’s assets. Neither this Agreement nor any of the rights, duties or obligations of Executive shall be assignable by Executive, nor shall any of the payments required or permitted to be made to Executive by this Agreement be encumbered, transferred or in any way anticipated, except as required by applicable laws. All rights of Executive under this Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, estates, executors, administrators, heirs and beneficiaries.

6.3.Entire Agreement; Amendment.  Except as otherwise expressly provided herein, this Agreement constitutes the entire agreement between the parties hereto with regard to the subject matter hereof, superseding all prior understandings, term sheets and agreements, whether written or oral. This Agreement may not be amended or revised except by a writing signed by the parties.

6.4.Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and shall have the same effect as if the signatures hereto and thereto were on the same instrument.

[Remainder of Page Intentionally Left Blank]

    

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

Cedar Fair, L.P.

By: Cedar Fair Management, Inc., its General Partner

By:     /s/ Richard A. Zimmerman                
Name:    Richard A. Zimmerman                
Title:     President and Chief Executive Officer         
    

Cedar Fair Management, Inc.
    

By:      /s/ Richard A. Zimmerman                
Name:     Richard A. Zimmerman            
Title:     President and Chief Executive Officer         

Magnum Management Corporation
    

By:      /s/ Richard A. Zimmerman                
Name:     Richard A. Zimmerman            
Title:     President and Chief Executive Officer

EXECUTIVE
    

      /s/ Matthew A. Ouimet                
  Matthew A. Ouimet        
    
Date:   December 18, 2019                
    

[Signature Page]

Exhibit A 
Release
See attached.

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