Company: PENG
Filing Date: 2025-03-24
Form Type: PRE 14A
Source: 0001193125-25-060930
Chunk: 93

Company: Penguin Solutions, Inc.
Filing Date: 2025-03-24
Form: PRE 14A
Chunk 93
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 and officers’ liability insurance.

The limitation of liability and indemnification provisions in the Penguin Solutions Delaware amended and restated certificate of incorporation
and amended and restated bylaws may discourage stockholders from bringing a lawsuit against Penguin Solutions Delaware directors and officers for any breach of fiduciary duty. They may also reduce the likelihood of derivative litigation against
Penguin Solutions Delaware directors and officers, even though an action, if successful, might benefit Penguin Solutions Delaware and its stockholders. Furthermore, a stockholder’s investment may be adversely affected to the extent that Penguin
Solutions Delaware pays the costs of settlement and damages.

Investor Agreement

In connection with the Scheme of Arrangement, we expect that the existing Investor Agreement (the “Investor Agreement”), dated
December 13, 2024, by and between Penguin Solutions Cayman and Astra AI Infra LLC, a Delaware limited liability company and wholly-owned subsidiary of SKT (generally referenced together with SKT and its subsidiaries and affiliates in this
subsection as “SKT” for convenience) providing for certain rights and restrictions relating to SKT’s investment in Penguin Solutions Cayman’s convertible preferred shares will be assumed by Penguin Solutions Delaware such
that the existing rights and restrictions will apply in respect of SKT’s holdings of Penguin Solutions Delaware convertible preferred stock following consummation of the Transaction.

Standstill

The Investor Agreement
contains a standstill restriction that we expect, subject to certain exceptions, will, following the assumption of the Investor Agreement by Penguin Solutions Delaware, restrict SKT and its affiliates from acquiring additional Penguin Solutions
Delaware common stock or other securities exercisable into Penguin Solutions Delaware common stock, making tender offers or similar offers for shares of Penguin Solutions Delaware common stock, or engaging in certain other activities that could lead
to a change of control of Penguin Solutions Delaware, in each case without the approval of Penguin Solutions Delaware or the Penguin Solutions Delaware Board. The standstill will remain in place until the later of (i) December 13, 2025 or
(ii) 30 days after no Investor Designee (as defined in the Investor Agreement) serves on the Penguin Solutions Delaware Board.

Restrictions on Transfer

The Investor Agreement contains a “lock-up” period during which we expect,
following the assumption of the Investor Agreement by Penguin Solutions Delaware, neither SKT nor its affiliates will be permitted to dispose of their shares of Penguin Solutions Delaware convertible preferred stock or certain shares of Penguin
Solutions Delaware common stock acquired by them, in each case without the approval of a