Document:

samg-ex45_704.htm

Exhibit 4.5

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

Silvercrest Asset Management Group Inc. (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): the Company’s Class A common stock, par value $0.01 per share (the “Class A Common stock”). The summary below is not complete and is qualified in its entirety by reference to the Company’s second amended and restated certificate of incorporation and amended and restated bylaws, each of which is incorporated by reference as an exhibit to this Annual Report on Form 10-K. The terms of these securities also may be affected by the General Corporation Law of the State of Delaware (the “DGCL”).

Our authorized capital stock consists of 50 million shares of Class A common stock, par value $0.01 per share, 25 million shares of Class B common stock, par value $0.01 per share and 10 million shares of preferred stock, par value $0.01 per share. 

The number of outstanding shares of the registrant’s Class A common stock, par value $0.01 per share, and Class B common stock, par value $0.01 per share, as of December 31, 2019 was 9,329,879 and 5,031,017, respectively.  We had no shares of preferred stock outstanding as of December 31, 2019.   

Description of Class A Common Stock

Class A Common Stock

Voting Rights

Our Class A stockholders are entitled to one vote for each share held of record on all matters submitted to a vote of our stockholders. Our Class A stockholders are not entitled to cumulate their votes in the election of directors. Generally, all matters to be voted on by stockholders must be approved by a majority (or, in the case of election of directors, by a plurality) of the votes entitled to be cast by all holders of Class A common stock and Class B common stock present in person or represented by proxy, voting together as a single class. Except as otherwise provided by law, amendments to our second amended and restated certificate of incorporation must be approved by a majority of the combined voting power of all shares of Class A common stock and Class B common stock, voting together as a single class. However, amendments to our second amended and restated certificate of incorporation that would alter or change the powers, preferences or special rights of the Class A common stock, so as to affect them adversely, also must be approved by a majority of the votes entitled to be cast by the holders of the shares affected by the amendment, voting as a separate class. Notwithstanding the foregoing, any amendment to our second amended and restated certificate of incorporation to increase or decrease the authorized shares of Class A common stock must be approved by the vote of the holders of a majority of our shares of Class A common stock. Our Class B stockholders have the same voting rights as our Class A stockholders. 

Dividend Rights

Class A stockholders 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. Dividends consisting of shares of Class A common stock may be paid only as follows: (i) shares of Class A common stock may be paid only to holders of shares of Class A common stock and (ii) shares will be paid proportionately with respect to each outstanding share of our Class A common stock. 

Liquidation Rights

Upon our liquidation, dissolution or winding-up, or the sale of all, or substantially all, of our assets, after payment in full of all amounts required to be paid to creditors and to holders of preferred stock having a liquidation preference, if any, the Class A stockholders will be entitled to share ratably in our remaining assets available for distribution to Class A stockholders.

 

 

 

 

 

Other Matters

In the event of our merger or consolidation with or into another company in connection with which shares of common stock are converted into, or exchangeable for, shares of stock, other securities or property (including cash), common stockholders, regardless of class, will be entitled to receive the same kind and amount of shares of stock and other securities and property (including cash); provided that, if shares of Class A common stock are exchanged for or converted into shares of capital stock, the shares for which they are exchanged, or converted into, may differ to the extent that the shares of Class A common stock and the Class B common stock differ.

No shares of Class A common stock are subject to conversion or redemption or have preemptive rights to purchase additional shares of Class A common stock. There are no sinking fund provisions applicable to our Class A common stock. 

All the outstanding shares of Class A common stock are legally issued, fully paid and non-assessable. Holders of Class A common stock will have no liability for further calls or assessments and will not be personally liable for the payment of our debts except as they may be liable by reason of their own conduct or acts.

Exchanges of Class B units for Class A Common Stock and Registration Rights

Class B units of Silvercrest L.P. held by our principals are exchangeable for shares of our Class A common stock, on a one-for-one basis, subject to customary adjustments for share splits, dividends and reclassifications. 

Anti-Takeover Effects of Delaware Law and Our Second Amended and Restated Certificate of Incorporation

Our second amended and restated certificate of incorporation and our amended and restated bylaws, contain provisions which may have the effect of delaying, deterring or preventing a future takeover or change in control of our company. These provisions include the following:

Issuance of Preferred Stock

Our board of directors is authorized to issue ten million shares of preferred stock and determine the powers, preferences and special rights of any unissued series of preferred stock, including voting rights, dividend rights, and terms of redemption, conversion rights and the designation of any such series, without the approval of our stockholders. As a result, our board of directors could issue preferred stock quickly and easily. The issuance of preferred stock with voting and conversion rights may adversely affect the rights of holders of our Class A common stock, including their voting power. Our board of directors could issue the preferred stock with terms calculated to delay or prevent a change in control or make removal of management more difficult.

Restriction on Stockholder Action by Written Consent

Our second amended and restated certificate of incorporation provides that stockholder action can be taken only at an annual or special meeting of stockholders and cannot be taken by written consent in lieu of a meeting.

Restriction on Stockholders’ Ability to Call Special Meetings

Our second amended and restated certificate of incorporation provides that, except as otherwise required by law, special meetings of our stockholders can only be called pursuant to a resolution adopted by a majority of our board of directors, a committee of the board of directors that has been duly designated by the board of directors and whose powers and authority include the power to call such meetings, or by the Chairman of our board of directors. Stockholders are not permitted to call a special meeting or to require our board to call a special meeting.

Advance Notice Procedures for Stockholder Proposals

Our amended and restated bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to our board. Stockholders at our annual meeting may only consider proposals or nominations specified in the notice of meeting, or brought before the meeting by, or at the direction of, our board of directors, or by a stockholder who was a stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has given to our secretary timely written notice, in proper form, of the stockholder’s intention to bring that business before the meeting.

 

 

Classified Board of Directors

Our board of directors is divided into three classes, Class I, Class II and Class III, with members of each class serving staggered three-year terms. Our second amended and restated certificate of incorporation provides that the authorized number of directors may be changed only by resolution of the board. Any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors.

Removal of Directors; Board of Directors Vacancies

Our second amended and restated certificate of incorporation and amended and restated bylaws provide that members of our board of directors may not be removed without cause. Our amended and restated bylaws further provide that only our board of directors may fill vacant directorships, except in limited circumstances. These provisions would prevent a stockholder from gaining control of our board of directors by removing incumbent directors and filling the resulting vacancies with such stockholder’s own nominees.

Amendment of Certificate of Incorporation and Bylaws

The DGCL provides generally that the affirmative vote of a majority of the outstanding shares of common stock entitled to vote is required to amend or repeal a corporation’s certificate of incorporation or bylaws, unless the certificate of incorporation requires a greater percentage. Our second amended and restated certificate of incorporation generally requires the approval of the holders of at least two-thirds of the voting power of the issued and outstanding shares of our capital stock entitled to vote in connection with the election of directors, to amend any provisions of our second amended and restated certificate of incorporation.  Our second amended and restated certificate of incorporation and amended and restated bylaws provide that the holders of at least two-thirds of the voting power of the issued and outstanding shares of our capital stock entitled to vote in connection with the election of directors have the power to amend or repeal our amended and restated bylaws. In addition, our second amended and restated certificate of incorporation grants our board of directors the authority to amend and repeal our amended and restated bylaws without a stockholder vote in any manner not inconsistent with the laws of the State of Delaware or our second amended and restated certificate of incorporation.

The foregoing provisions of our second amended and restated certificate of incorporation and amended and restated bylaws could discourage potential acquisition proposals and could delay or prevent a change in control. These provisions are intended to enhance the likelihood of continuity and stability in the policies formulated by our board of directors and to discourage certain types of transactions that may involve an actual or threatened change of control. These provisions are designed to reduce our vulnerability to an unsolicited acquisition proposal. The provisions also are intended to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our equity securities and, as a consequence, they also may inhibit fluctuations in the market price of our Class A common stock that could result from actual or rumored takeover attempts. Such provisions also may have the effect of preventing changes in our management, or delaying or preventing a transaction that might benefit you or other minority stockholders.

Section 203 of the DGCL

We are subject to Section 203 of the DGCL, an anti-takeover law. In general, Section 203 prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years following the date the person became an interested stockholder, unless (with certain exceptions) the “business combination” or the transaction in which the person became an interested stockholder is approved in a prescribed manner. Generally, a “business combination” includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. Generally, an “interested stockholder” is a person 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 voting stock. The existence of this provision could have anti-takeover effects with respect to transactions not approved in advance by our board of directors, such as discouraging takeover attempts that might result in a premium over the market price of our common stock.EX-4.1

 Exhibit 4.1 

AMENDMENT NO. 1 TO TAX BENEFITS PRESERVATION PLAN 

This AMENDMENT NO. 1 TO TAX BENEFITS PRESERVATION PLAN, dated as of March 5, 2020 (this “Amendment”), is made and
entered into by and between The Meet Group, Inc., a Delaware corporation (the “Company”), and Action Stock Transfer Corporation, as Rights Agent (the “Rights Agent”). Except as otherwise provided herein, capitalized
terms used but not otherwise defined in this Amendment shall have the meanings ascribed to such terms in the Tax Benefits Plan (as defined below). 

WHEREAS, the Company and the Rights Agent previously entered into that certain Tax Benefits Preservation Plan, dated as of
October 4, 2019 (the “Tax Benefits Plan”); 
 WHEREAS, the Company proposes to enter into an Agreement and
Plan of Merger (the “Merger Agreement”), with eHarmony Holding, Inc., a Delaware corporation (“Parent”), Holly Merger Sub, Inc., a Delaware corporation and a direct, wholly-owned subsidiary of Parent
(“Merger Sub”), and NCG NuCom Group SE, a European stock corporation, solely for the purpose of guaranteeing Parent’s obligations under the Merger Agreement as set forth therein, pursuant to which Merger Sub will be merged with
and into the Company, with the Company surviving as a wholly-owned subsidiary of Parent, on the terms and subject to the conditions set forth in the Merger Agreement (the “Merger”); 

WHEREAS, the Board of Directors of the Company has determined that, in connection with the execution of the Merger Agreement and in
accordance with the terms of the Merger Agreement, it is necessary and desirable to amend the Tax Benefits Plan such that the Tax Benefits Plan is rendered inapplicable to the Merger Agreement, the approval, adoption, execution, delivery, and/or
amendment of the Merger Agreement, the public announcement and/or disclosure by any person of the Merger Agreement or any of the transactions contemplated thereby, including, without limitation, the Merger, and the performance and/or consummation of
any of the transactions contemplated by the Merger Agreement, including, without limitation, the Merger, in each case as set forth in this Amendment; and 

WHEREAS, (i) Section 26 of the Tax Benefits Plan provides that the Company may, by action of the Board, in its sole
discretion, and the Rights Agent shall, if the Company so directs, prior to the Close of Business (as defined in the Tax Benefits Plan) on the tenth (10th) calendar day after the Stock Acquisition Date (as defined in the Tax Benefits Plan), and
except as otherwise provided in such Section 26, supplement or amend any provision of the Tax Benefits Plan in any respect without the approval of any holders of Rights or the Common Stock; (ii) as of the date hereof, a Stock Acquisition
Date has not occurred; (iii) pursuant to the terms of the Tax Benefits Plan and in accordance with Section 26 thereof, the Company has directed that the Tax Benefits Plan should be amended and supplemented as set forth in this Amendment
prior to the execution of the Merger Agreement; and (iv) pursuant to Section 26 of the Tax Benefits Plan, an appropriate officer of the Company has delivered a certificate to the Rights Agent stating that this Amendment complies with the
terms of Section 26 of the Tax Benefits Plan. 

 NOW, THEREFORE, in consideration of the foregoing and the mutual agreements set forth
in the Tax Benefits Plan and this Amendment, the parties hereto, intending to be legally bound, hereby agree as follows:
 1. Amendment to
Definition of “Acquiring Person.” The definition of “Acquiring Person” in Section 1(a) of the Tax Benefits Plan is amended by inserting the following as a new paragraph at the end of such section: 

“Notwithstanding anything in this Section 1(a) or this Agreement to the contrary, neither eHarmony Holding, Inc., a Delaware
corporation (“Parent”) nor Holly Merger Sub, Inc., a Delaware corporation and a direct, wholly-owned subsidiary of Parent (“Merger Sub”) nor any of their respective Affiliates or Associates, either individually or
together, shall be deemed to be or become an “Acquiring Person” solely by virtue of, or as a result of, (i) the approval, adoption, execution, delivery, and/or amendment of the Agreement and Plan of Merger, dated as of March 5,
2020, by and among the Company, Parent, Merger Sub and NCG NuCom Group SE, a European stock corporation (the “Merger Agreement”); (ii) the public announcement and/or public disclosure by any Person of the Merger Agreement or any of
the transactions contemplated thereby, including, but not limited to, the Merger (as defined in the Merger Agreement); and (iii) the performance and/or consummation of any of the transactions contemplated by the Merger Agreement, including,
without limitation, the Merger (the foregoing actions being referred to as the “Permitted Events”).” 
 2. Amendment
to Definition of “Beneficial Owner” and “Beneficially Own.” The definitions of “Beneficial Owner” and “Beneficially Own” in Section 1(d) of the Tax Benefits Plan are amended to add the following
sentence at the end of such section: 
 “Notwithstanding anything in this Section 1(d) or this Agreement to the contrary, neither
Parent nor Merger Sub, nor any of their respective Affiliates or Associates, either individually or together, shall be deemed to be a ‘Beneficial Owner’ of, or to ‘Beneficially Own,’ any Common Stock or other securities of the
Company solely by virtue of, or as a result of, any Permitted Event.” 
 3. Amendment to Definition of “Distribution
Date.” The definition of “Distribution Date” in Section 1(n) of the Tax Benefits Plan is amended to add the following sentence at the end of such section: 

“Notwithstanding anything in this Section 1(n) or this Agreement to the contrary, a Distribution Date shall not occur or be deemed to
have occurred solely by virtue of, or as a result of, any Permitted Event.” 
 4. Amendment to Definition of “Expiration
Date.” The definition of “Expiration Date” in Section 1(t) of the Tax Benefits Plan is hereby deleted in its entirety and restated to read as follows: 

““Expiration Date” shall mean the earliest of (i) the date on which all of the Rights are redeemed as provided in
Section 22; (ii) the date on which the Rights are exchanged as provided in Section 23; (iii) the consummation of a reorganization transaction entered into by the Company resulting in the imposition of stock transfer restrictions that the
Board, in its sole and absolute discretion, determines will provide protection for the Company’s Tax Benefits similar to that provided by this Agreement; (iv) the effective time of the repeal of

  
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Section 382 (but excluding the repeal or withdrawal of any Treasury Regulations thereunder), or any other change, if the Board determines, in its sole and absolute discretion, that this
Agreement is no longer necessary or desirable for the preservation of Tax Benefits; (v) such time that the Board determines, in its sole and absolute discretion, that this Agreement is no longer necessary to preserve the Tax Benefits;
(vi) the beginning of a taxable year of the Company to which the Board determines, in its sole and absolute discretion, that no Tax Benefits may be carried forward; (vii) such time that the Board determines, in its sole and absolute
discretion, prior to the time any Person becomes an Acquiring Person, that this Agreement and the Rights are no longer in the best interests of the Company and its stockholders; and (viii) immediately prior to the Effective Time (as defined in
the Merger Agreement), but only if the Effective Time shall occur.” 
 5. Amendment to Definition of “Stock Acquisition
Date.” The definition of “Stock Acquisition Date” in Section 1(nn) of the Tax Benefits Plan is amended to add the following sentence at the end of such section: 

“Notwithstanding anything in this Section 1(nn) or this Agreement to the contrary, a Stock Acquisition Date shall not occur or be
deemed to have occurred solely by virtue of, or as a result of, any Permitted Event.” 
 6. Amendment to Definition of
“Triggering Event.” The definition of “Triggering Event” in Section 1(uu) of the Tax Benefits Plan is amended to add the following sentence at the end of such section: 

“Notwithstanding anything in this Section 1(uu) or this Agreement to the contrary, a Triggering Event shall not occur or be deemed to
have occurred solely by virtue of, or as a result of, any Permitted Event.” 
 7. Amendment to
Section 11(a)(ii). Section 11(a)(ii) of the Tax Benefits Plan is amended to add the following sentence at the end of such section: 

“Notwithstanding anything in this Section 11(a)(ii) or this Agreement to the contrary, a Section 11(a)(ii) Event shall not occur
or be deemed to have occurred solely by virtue of, or as a result of, any Permitted Event.” 
 8. Amendment to
Section 29. Section 29 of the Tax Benefits Plan is amended to add the following sentence at the end thereof: 

“Nothing in this Agreement shall be construed to give any registered holders of the Right Certificates (and, prior to the Distribution
Date, the Common Stock) or any Person any legal or equitable right, remedy or claim under this Agreement solely by virtue of, or as a result of, any Permitted Event.” 

9. Notice of the Effective Time. The Tax Benefits Plan is amended to add a new Section 37, which shall read in its entirety as
follows” 
 “Section 37. Notice of the Effective Time. The Company shall promptly notify the Rights Agent upon the
occurrence of the Effective Time (as defined in the Merger Agreement).” 

  
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 10. Termination. Notwithstanding anything to the contrary set forth herein, this
Amendment shall terminate and be of no further force or effect in the event of the termination of the Merger Agreement for any reason. 
 11.
Officer’s Certificate. By executing this Amendment below, the undersigned duly appointed officer of the Company certifies that this Amendment has been executed and delivered in compliance with the terms of Section 26 of the Tax
Benefits Plan and directs the Rights Agent to execute this Amendment. 
 12. Effect of Amendment. Except as expressly amended
herein, all other terms and conditions of the Tax Benefits Plan shall remain in full force and effect and otherwise shall be unaffected by virtue of this Amendment. The execution, delivery and effectiveness of this Amendment shall not, except
as expressly provided herein, constitute a waiver or amendment of any provision of the Tax Benefits Plan. Upon and after the effectiveness of this Amendment, each reference in the Tax Benefits Plan to “this Agreement,”
“hereunder,” “hereof” or words of like import referring to the Tax Benefits Plan, and each reference in any other document to “the Tax Benefits Plan,” “thereunder,” “thereof” or words of like import
referring to the Tax Benefits Plan, shall mean and be a reference to the Tax Benefits Plan as modified hereby. 
 13. Severability. If
any term, provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this
Amendment, and of the Tax Benefits Plan, shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 

14. Waiver of Notice. The Rights Agent and the Company hereby waive any notice requirement under the Tax Benefits Plan pertaining
to the matters covered by this Amendment. 
 15. Governing Law. This Amendment shall be deemed to be a contract
made under the internal substantive laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the internal substantive laws of such State applicable to contracts to be made and performed entirely within
such State, without giving effect to the choice of law or conflict of law principles thereof or of any other jurisdiction to the extent that such principles would require or permit the application of the laws of another jurisdiction; provided,
however, that all provisions of this Amendment regarding the rights, duties, and obligations of the Rights Agent shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts to be made and
performed entirely within such State, without giving effect to the choice of law or conflict of law principles thereof or of any other jurisdiction to the extent that such principles would require or permit the application of the laws of another
jurisdiction. 
 16. Binding Effect. This Amendment shall be binding upon and inure to the benefit of each party hereto, and
their respective successors and assigns. 
 17. Headings. Descriptive headings of the several sections of this Amendment are
inserted for convenience of reference only and shall not control or affect the meaning or construction of any of the provisions hereof. 

  
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 18. Counterparts. This Amendment may be executed in any number of counterparts
and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. In the event that any signature to this Agreement or any amendment hereto is
delivered by facsimile transmission or e-mail delivery of a portable document format (.pdf or similar format) data file, such signature shall create a valid and binding obligation of the party executing (or on
whose behalf such signature is executed) with the same force and effect as if such signature page was an original thereof. No party hereto may raise the use of such electronic execution or transmission to deliver a signature, or the fact that any
signature or agreement or instrument was transmitted or communicated through such electronic transmission, as a defense to the formation of a contract, and each party forever waives any such defense, except to the extent such defense relates to lack
of authenticity. 
 19. Effectiveness. This Amendment shall be deemed effective as of the date first written above, but such
effectiveness is contingent upon the execution and delivery of the Merger Agreement by the parties thereto. The Company shall notify the Rights Agent via electronic mail of such execution and delivery of the Merger Agreement promptly thereafter.

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
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 IN WITNESS WHEREOF, the Company and the Rights Agent have caused this Amendment No. 1
to the Tax Benefits Plan to be executed and delivered by its duly authorized officers or representatives as of the day and year first written above. 
  

			
	THE MEET GROUP, INC.
		
	By:	 	 /s/ Frederic Beckley

	Name:	 	Frederic Beckley
	Title:	 	General Counsel & EVP Business Affairs
	
	ACTION STOCK TRANSFER CORPORATION
		
	By:	 	 /s/ Justeene Blankenship

	Name:	 	Justeene Blankenship
	Title:	 	President

 [Signature Page to Amendment No. 1 to Tax Benefits Preservation Plan]

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