Company: FOXX
Filing Date: 2025-11-21
Form Type: PRE 14A
Source: 0001213900-25-113635
Chunk: 32

Company: Foxx Development Holdings Inc.
Filing Date: 2025-11-21
Form: PRE 14A
Chunk 32
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 the Action. However, to avoid the cost and distraction of litigation, the directors of the board of the Company (the “Board”) determined that it was advisable and in the best interests of the Company and its stockholders to amend Article X of the Charter to read as set forth in Annex Bto this proxy statement (the “Amendment”) and to submit the Opportunity Waiver Limitation Amendment to the stockholders of the Company for approval with the recommendation of the Board. 23 Following the Board’s approval of the Opportunity Waiver Limitation Amendment on February 15, 2025, the Opportunity Waiver Limitation Amendment was proposed to the plaintiff in the Action. The plaintiff agreed that the proposed language mooted the claims, and on March 3, 2025, filed a notice of voluntary dismissal of the Action as moot, which the Court approved by order dated March 4, 2025. The notice also explained that the Opportunity Waiver Limitation Amendment will be submitted for a stockholder vote in connection with the upcoming Annual Meeting. Believing that the swift resolution of this Action was in the best interests of and benefit to the Company, and without admitting the allegations Plaintiff made in the Complaint, the Company agreed to pay $85,000 (the “Mootness Fee,” inclusive of a $500 service award to Plaintiff) to Plaintiff’s counsel to resolve the anticipated application by Plaintiff’s counsel for an award of attorneys’ fees and reimbursement of expenses. The Court has not and will not pass judgment on the Mootness Fee. Proposed Amendment If Proposal 3 regarding the Opportunity Waiver Limitation Amendment is approved by our stockholders, then Article X of the Certificate of Incorporation would be revised such that the waiver would be limited to cover only the Company’s directors who are not employees of the Company or its subsidiaries (the “non -employeedirectors”), and would be further limited to waive only “Excluded Opportunities.” An “Excluded Opportunity” is any investment or business opportunity, activity, transaction or matter relating to consumer electronics, mobile networks, communications or connectivity technology that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of any non -employeedirectors, unless such Excluded Opportunity is presented to, or acquired, created or developed by, or otherwise comes into the possession of such director in their capacity as a Company director. The form of the proposed amendments to Article X of the Certificate of Incorporation to effectuate the Opportunity Waiver Limitation Amendment, including