Document:

Exhibit 10.7

  

WARRANT HOLDER SUPPORT AGREEMENT

 

This WARRANT HOLDER
SUPPORT AGREEMENT (this “Agreement”), dated as of March 9, 2020, is made and entered into by and between Longfellow
Investment Management Co., LLC, a Massachusetts limited liability company (or an account or accounts for which it provides discretionary
investment advisory services) (together with its successors, the “Holder”), and Legacy Acquisition Corp., a
Delaware corporation (“Legacy”). Holder and Legacy shall be referred to herein from time to time collectively
as the “Parties”. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to
such terms in the Share Exchange Agreement (as defined below).

 

WHEREAS, Legacy
and Blue Valor Limited, a company incorporated in Hong Kong, entered into that certain Amended and Restated Share Exchange Agreement,
dated as of December 2, 2019 (the “Amended and Restated Share Exchange Agreement”), as amended by that certain
First Amendment to the Amended and Restated Share Exchange Agreement, dated as of the date hereof (the “Amendment,”
and the Amended and Restated Share Exchange Agreement as amended by the Amendment is referred to herein as the “Share
Exchange Agreement”);

 

WHEREAS, as of
the date hereof, the Holder is the record and Beneficial Owner (such record and Beneficial Ownership, to “Own”,
be the “Owner” of or be “Owned” by) of 200,000 Purchaser Warrants that were issued to investors
in Legacy’s initial public offering (the “Public Warrants”);

 

WHEREAS, the
Share Exchange Agreement provides that Legacy will use its reasonable best efforts to obtain the vote or consent of the holders
of at least 65% of the outstanding Public Warrants (the “Approval”) to amend that certain Warrant Agreement
between Legacy and Continental Stock Transfer & Trust Company, dated as of November 16, 2017 (as amended from time to time,
the “Warrant Agreement”), to provide, among other things, that each outstanding Purchaser Warrant shall no longer
be exercisable to purchase one-half share of Purchaser Common Shares for $5.75 per half-share (subject to adjustment as provided
in the Warrant Agreement) and instead shall be converted solely into the right to receive (i) if, at the Closing, the aggregate
gross cash in the trust fund established by Legacy for the benefit of its public stockholders and the proceeds received by Legacy
under the Subscription Agreements equals at least $225 million, $1.00 in cash or (ii) if, at the Closing, the aggregate gross cash
in the trust fund established by Legacy for the benefit of its public stockholders and the proceeds received by Legacy under the
Subscription Agreements is less than $225 million, $0.50 in cash (one-half of which shall be paid at the Closing) and 0.55 of a
Purchaser Common Share (the “Warrant Agreement Amendment”); and

 

WHEREAS, the
Share Exchange Agreement contemplates that the Parties will enter into this Agreement concurrently with the entry into the Amendment.

 

     

     

    

 

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

 

1. Representations
and Warranties. The Holder represents and warrants to Legacy that the following statements
are true and correct:

 

(a) The
Holder has the requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of the Holder. This Agreement has been duly and validly executed and delivered by
the Holder and constitutes a valid, legal and binding agreement of the Holder, enforceable against the Holder in accordance with
its terms.

 

(b) The
Holder is the Owner of 200,000 Public Warrants (the “Subject Warrants”) as of the date hereof, which constitutes
all of the warrants in Legacy held by the Holder and its Affiliates as of the date hereof. The Holder has valid, good and marketable
title to the Subject Warrants, free and clear of all Liens (other than Liens pursuant to this Agreement or any other Additional
Agreements and transfer restrictions under applicable Law or under the certificate of incorporation or bylaws of Legacy). Except
for this Agreement, the Holder is not party to any option, warrant, purchase right, or other contract or commitment that could
require the Holder to sell, transfer, or otherwise dispose of the Subject Warrants. Except as set forth in this Agreement, the
Holder is not a party to any voting trust, proxy or other agreement or understanding with respect to the voting of the Subject
Warrants and the Holder has sole voting power and sole dispositive power with respect to all Subject Warrants, with no restrictions
on the Holder’s rights of voting or disposition pertaining thereto and no Person other than the Holder has any right to direct
or approve the voting or disposition of any of the Subject Warrants.

 

(c) The
execution, delivery and performance by it of this Agreement and the consummation by the Holder of the transactions contemplated
hereby do not: (i) conflict with or result in any breach of any provision of the governing documents of the Holder, (ii) result
in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default or give rise to any
right of termination, cancellation or acceleration under, any of the terms, conditions or provisions of any note, bond, mortgage,
indenture, lease, license, contract, agreement or other instrument or obligation to which the Holder is a party or by which its
properties or assets may be bound, (iii) violate any Order or Law of any governmental Authority applicable to the Holder or
its Subsidiaries, or any of their respective properties or assets (including the Subject Warrants), as applicable, or (iv) result
in the creation of any Lien (other than Liens pursuant to this Agreement or any other Additional Agreements to which it is subject
or bound and transfer restrictions under applicable Law or under the certificate of incorporation or bylaws of Legacy) upon its
assets (including the Subject Warrants), except in the case of clauses (ii), (iii) and (iv) above, for violations which
would not reasonably be expected to materially impact, impair or delay or prevent the ability of the Holder to consummate the transactions
contemplated by this Agreement or have a material adverse effect on the ability of the Holder to perform its obligations hereunder.

 

    2

     

    

 

2. Agreements
of Holder.

 

(a) Voting.
The Holder hereby irrevocably and unconditionally agrees that from the date hereof, unless and until this Agreement is terminated
in accordance with its terms, the Holder shall affirmatively vote all Subject Warrants (or cause them to be voted) or, if applicable,
execute written consents in respect thereof, (i) for the adoption of the Warrant Agreement Amendment, (ii) against any action or
agreement (including, without limitation, any amendment of any agreement) that Holder knows would result in a breach of any representation,
warranty, covenant, agreement or other obligation of Legacy set forth in the Share Exchange Agreement, or of the Holder contained
in this Agreement, and (iii) against any agreement (including, without limitation, any amendment of any agreement), amendment or
other Legacy action that is intended or would reasonably be expected to prevent, impede, interfere with or delay obtaining the
Approval, consummating the Warrant Agreement Amendment or any of the other transactions contemplated by the Share Exchange Agreement.
Any such vote shall be cast (or such written consent shall be given) by the Holder in accordance with such procedures relating
thereto so as to ensure that such vote (or written consent) is duly counted, including for purposes of establishing and determining
that a quorum is present and for purposes of duly recording the results of such vote (or written consent). The Holder shall retain
at all times the right to vote all Subject Warrants in its sole discretion and without any other limitation on those matters other
than those set forth in this Section 2(a) that are at any time, or from time to time, presented for consideration to and for a
vote by the holders of Public Warrants generally.

 

(b) Exchange.
Unless this Agreement shall have been terminated in accordance with its terms, the Holder shall (i) as promptly as legally permissible
and in any event not later than the second (2nd) Business Day next following the effectiveness of the Warrant Agreement
Amendment, validly exchange (or cause to be exchanged) all of the Subject Warrants in accordance with the terms of the Warrant
Agreement Amendment, and (ii) not thereafter withdraw (or cause to be withdrawn) any Subject Warrants so exchanged; provided, further,
to the extent Legacy determines, in its sole discretion, that it is advisable to conduct a tender offer for the Purchaser Warrants
for the same consideration contemplated by the Warrant Agreement Amendment (the “Offer”) instead of obtaining
the Approval, the Holder shall (x) as promptly as practicable and in any event not later than the second (2nd) Business
Day following the commencement of such Offer, validly tender (or cause to be tendered) into the Offer all of the Subject Warrants,
pursuant to and in accordance with the terms of the Offer, and (y) not thereafter withdraw (or cause to be withdrawn) any Subject
Warrants so tendered pursuant to the Offer.

 

(c) Publication.
The Holder hereby consents to Legacy publishing and disclosing in the Purchaser SEC Documents the Holder’s identity and ownership
of Subject Warrants and the nature of the Holder’s commitments, arrangements and understandings pursuant to this Agreement.

 

(d) After
Acquired Securities. Any and all Purchaser Warrants as to which the Holder acquires Ownership after the date hereof and prior
to termination of this Agreement shall constitute Subject Warrants, as applicable, for all purposes of this Agreement.

 

3. Covenants.

 

(a) Subject
to the terms and conditions of this Agreement, the Holder hereby unconditionally and irrevocably agrees to take, or cause to be
taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate and make effective the
transactions contemplated by Section 2 of this Agreement.

 

    3

     

    

 

(b) From
the date hereof until the earlier of the Closing and the termination of the Share Exchange Agreement in accordance with its terms,
the Holder hereby unconditionally and irrevocably agrees that it shall not, without the prior written consent of Legacy, (i) sell,
offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose of or agree to
dispose of, directly or indirectly, or establish or increase a put equivalent position or liquidate or decrease a call equivalent
position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and regulations
of the Securities and Exchange Commission promulgated thereunder, with respect to any Subject Warrants Owned by it, (ii) enter
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
of any Subject Warrants or any securities convertible into, or exercisable, or exchangeable for, Subject Warrants Owned by it,
whether any such transaction is to be settled by delivery of such securities, in cash or otherwise, (iii) except as provided by
this Agreement, deposit any Subject Warrants into a voting trust or grant any proxies or enter into a voting agreement, power of
attorney or voting trust with respect to any Subject Warrants, or (iv) publicly announce any intention to effect any transaction
specified in clauses (i), (ii) or (iii).

 

(c) Until
any termination of this Agreement in accordance with its terms, the Holder shall promptly notify Legacy of the number of Purchaser
Warrants, if any, as to which the Holder acquires Ownership after the date hereof.

 

4. Termination.
This Agreement shall terminate, and have no further force and effect, if the Share Exchange Agreement is terminated in accordance
with its terms prior to the Closing.

 

5. Counterparts.
This Agreement may be executed and delivered (including by facsimile or other electronic transmission)
in one or more counterparts, and by the different Parties hereto in separate counterparts, each of which when executed shall be
deemed to be an original, but all of which taken together shall constitute one and the same agreement.

 

6. Successors
and Assigns. This Agreement shall be binding upon and inure solely to the benefit of the Parties hereto and their
respective successors and permitted assigns. This Agreement shall not be assigned by any Party (whether by operation of law
or otherwise) without the prior written consent of the other Party hereto. Any attempted assignment of this Agreement not in
accordance with the terms of this Section 6 shall be void.

 

7. Amendment.
This Agreement may not be amended or modified except by an instrument in writing signed by, or
on behalf of, all of the Parties hereto.

 

8. Governing
Law. This Agreement shall be governed by the internal law of the State of New York, without
regard to conflict of law principles that would result in the application of any law other than the law of the State of New York.

 

9. Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect
the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any such invalid
or unenforceable term or provision, the Parties intend that there shall be added as a part of this Agreement a provision as similar
in terms to such invalid or unenforceable provision as may be possible that is valid and enforceable.

 

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10. Notices.
Any notice hereunder shall be sent in writing, addressed as specified below, and shall be deemed
given: (a) if by hand or recognized courier service, by 4:00PM on a Business Day, addressee’s day and time, on the date of
delivery, and otherwise on the first Business Day after such delivery; (b) if by email, on the date that transmission is confirmed
electronically, if by 4:00PM on a Business Day, addressee’s day and time, and otherwise on the first Business Day after the
date of such confirmation; or (c) five (5) days after mailing by certified or registered mail, return receipt requested. Notices
shall be addressed to the respective Parties as follows (excluding telephone numbers, which are for convenience only), or to such
other address as a Party shall specify to the others in accordance with these notice provisions:

 

If
to Legacy:

Address:
1308 Race Street Suite 200 Cincinnati, Ohio 45202

Attention:
Darryl McCall

Telephone:
+1 (505) 820-0412

Email:
darrylmccall@legacyacquisition.com

 

with
a copy to:

DLA
Piper

Address:
1201 West Peachtree Street, Suite 2800, Atlanta, Georgia 30309-3450

Attention:
Gerry Williams

Telephone:
1 (404) 736-7891

 

Email:
Gerry.Williams@us.dlapiper.com

 

If
to the Holder:

Address:        Longfellow
Investment Management Co., LLC

20
Winthrop Square

Boston,
MA 02110

Attention:

Telephone:
617-695-3504

Email:
compliance@longfellowim.com

 

11. Entire
Agreement. This Agreement, the Share Exchange Agreement and the Additional Agreements constitute
the entire agreement among the Parties hereto with respect to the subject matter hereof, and supersede all prior and contemporaneous
understandings and agreements, both written and oral, with respect to such subject matter.

 

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

 

	 	LEGACY:
	 	 
	 	LEGACY ACQUISITION CORP.
	 	 	 
	 	By:	/s/ Edwin J. Rigaud
	 	Name:	Edwin J. Rigaud
	 	Title:	Chairman and Chief Executive Officer
	 	 	 
	 	HOLDER:
	 	 
	 	Longfellow Investment Management Co., LLC
	 	 	 
	 	By:	/s/ Michelle Martin
	 	Name: 	Michelle Martin
	 	Title:	Vice President

 

 

6vrca-ex41_229.htm

Exhibit 4.1

DESCRIPTION OF VERRICA PHARMACEUTICALS INC. COMMON STOCK

The following description of the common stock of Verrica Pharmaceuticals Inc., or the Company, is a summary and does not purport to be complete. This summary is qualified in its entirety by reference to the provisions of the Delaware General Corporation Law, or the DGCL, and the complete text of the Company’s amended and restated certificate of incorporation, or certificate of incorporation, and amended and restated bylaws, or the bylaws, which are incorporated by reference as Exhibits 3.1 and 3.2, respectively, of the Company’s Annual Report on Form 10-K to which this description is also an exhibit. The Company encourages you to read that law and those documents carefully.

Common Stock

Authorized Capital Stock

The certificate of incorporation authorizes the issuance of up to 200,000,000 shares of common stock, $0.0001 par value per share, and 10,000,000 shares of preferred stock, $0.0001 par value per share. The Company’s board of directors may establish the rights and preferences of the preferred stock from time to time. 

Voting Rights

Each holder of common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. Under the certificate of incorporation and bylaws, common stockholders do not have cumulative voting rights. Because of this, the holders of a majority of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they should so choose.

Dividends

Subject to preferences that may be applicable to any then-outstanding preferred stock, holders of common stock are entitled to receive ratably those dividends, if any, as may be declared from time to time by the board of directors out of legally available funds.

Liquidation

In the event of the Company’s liquidation, dissolution or winding up, holders of common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of debts and other liabilities and the satisfaction of any liquidation preference granted to the holders of any then-outstanding shares of preferred stock.

Rights and Preferences

Holders of common stock have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable to the common stock. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely affected by, the right of the holders of shares of any series of preferred stock that we may designate in the future.

Anti-Takeover Provisions

Section 203 of the Delaware General Corporation Law

The Company is subject to Section 203 of the DGCL, which prohibits a Delaware corporation from engaging in any business combination with any interested stockholder for a period of three years after the date that such stockholder became an interested stockholder, with the following exceptions:

							
	
 
	
•
	
 
	
before such date, 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 interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining the voting stock outstanding, but not the outstanding voting stock owned by the interested stockholder, those shares owned (i) by persons who are directors and also officers and (ii) 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 after such date, the business combination is approved by the board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least 66 2⁄3% of the outstanding voting stock that is not owned by the interested stockholder.

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

							
	
 
	
•
	
 
	
any merger or consolidation involving the corporation or any direct or indirect majority-owned subsidiary of the corporation and the interested stockholder;

	
 
	
•
	
 
	
any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder (in one transaction or a series of transactions);

	
 
	
•
	
 
	
subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation or by any direct or indirect majority-owned subsidiary of the corporation of any stock of the corporation or of such subsidiary to the interested stockholder;

	
 
	
•
	
 
	
any transaction involving the corporation or any direct or indirect majority-owned subsidiary of the corporation that has the effect of increasing the proportionate share of the stock or any class or series of the corporation beneficially owned by the interested stockholder; or

	
 
	
•
	
 
	
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits by or through the corporation.

In general, Section 203 defines an interested stockholder as an entity or person who, together with the person's affiliates and associates, beneficially owns, or within three years prior to the time of 

determination of interested stockholder status did own, 15% or more of the outstanding voting stock of the corporation.

Anti-Takeover Effects of Certain Provisions of the Certificate of Incorporation and Bylaws 

The certificate of incorporation provides for the Company’s board of directors to be divided into three classes with staggered three-year terms. Only one class of directors will be elected at each annual meeting of stockholders, with the other classes continuing for the remainder of their respective three-year terms. Because the Company’s stockholders do not have cumulative voting rights, stockholders holding a majority of the shares of common stock outstanding will be able to elect all of the Company’s directors. The certificate of incorporation and bylaws also provide that directors may be removed by the stockholders only for cause upon the vote of 66 2⁄3% or more of the Company’s outstanding common stock. Furthermore, the authorized number of directors may be changed only by resolution of the board of directors, and vacancies and newly created directorships on the board of directors may, except as otherwise required by law or determined by the board, only be filled by a majority vote of the directors then serving on the board, even though less than a quorum.

The certificate and incorporation and bylaws also provide that all stockholder actions must be effected at a duly called meeting of stockholders and will eliminate the right of stockholders to act by written consent without a meeting. The Company’s bylaws also provide that only the Chairman of the board, Chief Executive Officer or the board of directors pursuant to a resolution adopted by a majority of the total number of authorized directors may call a special meeting of stockholders.

The bylaws also provide that stockholders seeking to present proposals before the meeting of stockholders to nominate candidates for election as directors at a meeting of stockholders must provide timely advance notice in writing, and specifies requirements as to the form and content of a stockholder's notice.

The certificate of incorporation and bylaws provide that the stockholders cannot amend many of the provisions described above except by a vote of 66 2⁄3% or more of the Company’s outstanding common stock. 

The combination of these provisions could make it more difficult for the Company’s existing stockholders to replace the board of directors as well as for another party to obtain control of the Company by replacing the board of directors. Since the board of directors has the power to retain and discharge the Company’s officers, these provisions could also make it more difficult for existing stockholders or another party to effect a change in management. In addition, the authorization of undesignated preferred stock makes it possible for the board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change the Company’s control.

These provisions are intended to enhance the likelihood of continued stability in the composition of the board of directors and its policies and to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to reduce the Company’s vulnerability to hostile takeovers and 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 the Company’s shares and may have the effect of delaying changes in our control or management. As a consequence, these provisions may also inhibit fluctuations in the market price of the Company’s stock that could result from actual or rumored takeover attempts. The Company believes that the benefits of these provisions, including increased protection of its 

potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure the Company, outweigh the disadvantages of discouraging takeover proposals, because negotiation of takeover proposals could result in an improvement of their terms.

Choice of Forum

The certificate of incorporation provides that the Court of Chancery of the state of Delaware will be the exclusive forum for:

							
	
 
	
•
	
 
	
any derivative action or proceeding brought on the Company’s behalf;

	
 
	
•
	
 
	
any action asserting a breach of fiduciary duty;

	
 
	
•
	
 
	
any action asserting a claim against us arising pursuant to the DGCL, the Company’s certificate of incorporation or the bylaws; or

	
 
	
•
	
 
	
any action asserting a claim against the Company that is governed by the internal affairs doctrine.

The enforceability of similar choice of forum provisions in other companies' certificates of incorporation has been challenged in legal proceedings, and it is possible that, in connection with any action, a court could find the choice of forum provisions contained in the Company’s certificate of incorporation to be inapplicable or unenforceable in such action.

The Company’s certificate of incorporation provides that the federal district courts of the United States of America will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act.

 

Transfer Agent and Registrar

The transfer agent and registrar for the Company’s common stock is American Stock Transfer & Trust Company. The transfer agent's address is 6201 15th Avenue, Brooklyn, New York 11219.

Stock Exchange Listing

The common stock is listed on The Nasdaq Global Market under the trading symbol VRCA.

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