Company: CULP
Filing Date: 2025-06-10
Form Type: 8-K
Source: 0000950170-25-084334
Chunk: 0

Company: CULP INC
Filing Date: 2025-06-10
Form: 8-K
Item: Item 1.01
Chunk 0
---
Item 1.01 Entry into a Material Definitive Agreement.

On June 6, 2025, Culp, Inc., a North Carolina corporation (the “ Company”), entered into a Cooperation Agreement (the “ Cooperation Agreement”) with 22NW Fund, LP, 22NW, LP, 22NW Fund GP, LLC, 22NW GP, Inc., Mr. Aron R. English, Mr. Bryson O. Hirai-Hadley and Mr. Alexander B. Jones (each, an “ Investor” and collectively, the “ Investor Group”). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Cooperation Agreement.

Pursuant to the Cooperation Agreement, among other terms, (i) the Company will renominate Mr. Jones to stand for election to the Board of Directors of the Company (the “ Board”) at the Company’s 2025 Annual Meeting of Shareholders (the “2025 Annual Meeting”) and the Company’s 2026 Annual Meeting of Shareholders (the “2026 Annual Meeting”), (ii) the Company will nominate Douglas Collier and Lynn Heatherton (the “ New Directors” and together with Mr. Jones, the “ Investor Group Designees”) to stand for election to the Board at the 2025 Annual Meeting and the 2026 Annual Meeting, (iii) the Company will establish a strategy committee of the Board, and (iv) the Company agrees that the number of authorized directors on the Board will not exceed eight (8) directors effective as of the 2025 Annual Meeting and seven (7) directors effective as of the 2026 Annual Meeting and thereafter will not be further increased prior to the termination date of the Cooperation Agreement, in each case without the Investor Group’s prior written consent.

The Investor Group has agreed to certain standstill provisions with respect to its actions with regard to the Company for the duration of the Standstill Period, which commenced on the effective date of the Cooperation Agreement and will end on the date that is the earlier of (i) thirty (30) calendar days prior to the expiration of the advance notice period for the submission by shareholders of director nominations (as set forth in the advance notice provisions of the Company’s bylaws, as amended) for consideration at the Company’s 2027 Annual Meeting of Shareholders and (ii) one hundred and twenty (120) calendar days prior to the first anniversary of the 2026 Annual Meeting. During the Standstill Period, the Investors