Item 3.03. Material Modification to Rights
of Security Holders.
On December 21, 2022, the Board of Directors of
Clarivate Plc (the “Company”) declared a dividend of one preferred share purchase right (a “Right”)
for each outstanding ordinary share, no par value per share (the “Ordinary Shares”), of the Company. The dividend is
payable on January 1, 2023 (the “Record Date”) to holders of record as of the close of business on that date. The description
and terms of the Rights are set forth in a Tax Benefits Preservation Plan (the “Tax Benefits Preservation Plan”) between
the Company and Continental Stock Transfer & Trust Company, as Rights Agent (the “Rights Agent”).
The Board of Directors has adopted the Tax Benefits
Preservation Plan to protect the availability of the Company’s U.S. net operating loss carryforwards (“NOLs”) and certain
other U.S. tax attributes, which can be utilized in certain circumstances to offset future U.S. tax liabilities. The Company’s ability
to use these NOLs and other tax attributes would be substantially limited if it experienced an “ownership change” within the
meaning of Section 382 of the Internal Revenue Code, which could occur if “5% shareholders” (determined under Section 382)
increased their ownership of the Company’s Ordinary Shares by more than 50 percentage points over a rolling three-year period. The
Tax Benefits Preservation Plan is intended to reduce the likelihood of such an ownership change at the Company by deterring any person
or group that would be treated as a 5% shareholder from acquiring beneficial ownership, as determined for relevant tax purposes, of either
(i) 4.9% or more of the outstanding Ordinary Shares of the Company or (ii) 4.9% or more (by value) of the Company’s capital stock,
and deterring existing shareholders who currently meet or exceed this ownership threshold from acquiring additional Company stock. Acquisitions
of the Company’s outstanding 5.25% Series A mandatory convertible preferred shares are taken into account for purposes of these
ownership thresholds, determined on an as-converted basis in accordance with applicable U.S. securities laws or on the basis of the value
of such shares, as applicable. Any such person or group is an “Acquiring Person” within the meaning of the Tax Benefits
Preservation Plan. The Tax Benefits Preservation Plan should not interfere with any merger or other business combination approved by the
Board of Directors. A summary of the terms of the Tax Benefits Preservation Plan follows. This description is only a summary, and is not
complete, and should be read together with the entire Tax Benefits Preservation Plan, which has been filed as an exhibit to this Form
8-K.
Prior to the Distribution Date (as defined below),
the Rights will be evidenced by the certificates for and will be transferred with the Ordinary Shares, and the registered holders of the
Ordinary Shares will be deemed to be the registered holders of the Rights. After the Distribution Date, the Rights Agent will mail separate
certificates evidencing the Rights to each record holder of the Ordinary Shares as of the close of business on the Distribution Date,
and thereafter the Rights will be transferable separately from the Ordinary Shares. The “Distribution Date” generally
means the earlier of (i) the close of business on the 10th business day after the date of the first public announcement that
a person (other than the Company or any of its subsidiaries or any employee benefit plan of the Company or any such subsidiary) has become
an Acquiring Person and (ii) the close of business on the 10th business day (or such later day as may be designated by the
Board of Directors before any person has become an Acquiring Person) after the date of the commencement of a tender or exchange offer
by any person which would or could, if consummated, result in such person becoming an Acquiring Person.
Prior to the Distribution Date, the Rights will
not be exercisable to purchase Series B Participating Cumulative Preferred Shares, no par value per share (the “Preferred Shares”).
After the Distribution Date, each Right will be exercisable to purchase, for $42.00 (the “Purchase Price”), one one-thousandth
of a Preferred Share (subject to adjustment). The terms and conditions of the Rights are set forth in the Tax Benefits Preservation Plan,
attached hereto as Exhibit 4.1.
At any time after any person has become an Acquiring
Person (but before the occurrence of any of the events described in the second succeeding paragraph), each Right (other than Rights beneficially
owned by the Acquiring Person, its affiliates and associates) will entitle the holder to purchase, for the Purchase Price, a number of
shares of Ordinary Shares having an aggregate market value of twice the Purchase Price. The Tax Benefit Preservation Plan contains an
exception from the definition of an Acquiring Person for persons or groups who, immediately prior to the date of this initial announcement,
are beneficial owners of 4.9% or more of the Ordinary Shares or of the Company’s stock (as measured for tax purposes) then outstanding
to the extent such persons or groups do not acquire additional Ordinary Shares or additional stock of the Company (as measured for tax
purposes). The Board of Directors has the discretion to exempt any person or group from the provisions of the Tax Benefits Preservation
Plan.
At any time after any person has become an Acquiring
Person (but before any person becomes the beneficial owner of 50% or more of the outstanding Ordinary Shares or the occurrence of any
of the events described in the next paragraph), the Board of Directors may exchange all or part of the Rights (other than Rights beneficially
owned by an Acquiring Person, its affiliates and associates) for Ordinary Shares at an exchange ratio of one Ordinary Share per Right.
If, after any person has become an Acquiring Person,
(1) the Company is involved in a merger or other business combination in which the Company is not the surviving corporation or its Ordinary
Shares is exchanged for other securities or assets or (2) the Company and/or one or more of its subsidiaries sell or otherwise transfer
assets or earning power aggregating more than 50% of the assets or earning power of the Company and its subsidiaries, taken as a whole,
then each Right (other than Rights beneficially owned by an Acquiring Person, its affiliates and associates) will entitle the holder to
purchase, for the Purchase Price, a number of ordinary shares of the other party to such business combination or sale (or in certain circumstances,
an affiliate) having a market value of twice the Purchase Price.
The Board of Directors may redeem all of the Rights
at a price of $0.001 per Right at any time before any person has become an Acquiring Person.
The Rights will expire on the close of business
of October 31, 2023, unless earlier exchanged or redeemed.
For so long as the Rights are redeemable, the
Tax Benefits Preservation Plan may be amended in any respect. At any time when the Rights are no longer redeemable, the Tax Benefits Preservation
Plan may be amended in any respect that does not adversely affect Rights holders (other than any Acquiring Person, its affiliates and
associates), to cure any ambiguity or to correct any inconsistent provision of the Tax Benefits Preservation Plan.
Rights holders in their capacity as such have
no rights as a shareholder of the Company, including the right to vote and to receive dividends.
The Tax Benefits Preservation Plan includes antidilution
provisions designed to discourage efforts to diminish the effectiveness of the Rights.
Each outstanding Ordinary Share on the Record
Date will receive one Right. Ordinary Shares issued after the Record Date and prior to the Distribution Date will be issued with a Right
attached so that all Ordinary Shares outstanding prior to the Distribution Date will have Rights attached.
The foregoing description of the Tax Benefits
Preservation Plan is qualified in its entirety by reference to the full text of the Tax Benefits Preservation Plan, which is incorporated
herein by reference. A copy of the Tax Benefits Preservation Plan has been filed as Exhibit 4.1 to this Form 8-K.