Company: PENG
Filing Date: 2025-03-24
Form Type: PRE 14A
Source: 0001193125-25-060930
Chunk: 79

Company: Penguin Solutions, Inc.
Filing Date: 2025-03-24
Form: PRE 14A
Chunk 79
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 which will be February 1, May 1, August 1 and November 1, or such other record date designated by the Penguin Solutions Delaware Board as the record date for the payment of dividends that does not precede the date upon which the resolution fixing such date is adopted and is not more than 60 days prior to the applicable Dividend Payment Date. Dividends on shares of Penguin Solutions Delaware convertible preferred stock will accrue whether or not:

| • |     | there are funds legally available for the payment of those dividends; or |

| • |     | those dividends are authorized or declared. |

Without the prior written consent of the holders of at least two-thirds(2/3rds) of the then-outstanding shares of Penguin Solutions Delaware convertible preferred stock, Penguin Solutions Delaware will not be permitted to 51

declare or pay any dividend on any shares of Penguin Solutions Delaware other than shares of Penguin Solutions Delaware convertible preferred stock.

The foregoing sentence, however, will not prohibit (i) dividends on shares of Penguin Solutions Delaware common stock paid solely in
additional shares of Penguin Solutions Delaware common stock (provided that holders of shares of Penguin Solutions Delaware convertible preferred stock participate in such dividends on an as-converted basis)
or (ii) payment of cash in lieu of fractional shares issued upon conversion of options or convertible securities.

Making dividends
or other distributions to our stockholders, or redeeming or otherwise repurchasing shares of Penguin Solutions Delaware capital stock, including shares of Penguin Solutions Delaware convertible preferred stock, are all transactions that will be
subject to the limitations contained in our Credit Agreement. Consequently, our capacity to take any of these actions may be subject to dollar caps or may only be permissible if we are below leverage ratio thresholds. Our capacity for such
transactions may be further reduced during the continuance of certain events of default under the Credit Agreement. In addition, in the event of a default under the Credit Agreement, Penguin Solutions Delaware would be unable to borrow under the
revolving credit facilities and any amounts it had borrowed thereunder could become immediately due and payable. The agreements governing Penguin Solutions Delaware’s future debt instruments may also include restrictions on its ability to pay
dividends to holders or make redemptions of shares of Penguin Solutions Delaware convertible preferred stock.

Liquidation Preference

Upon any voluntary or involuntary liquidation, dissolution or winding up of Penguin Solutions Delaware’s affairs, before any distribution
or payment will be made to holders of Penguin Solutions Delaware common stock or any other class or series of Penguin Solutions Delaware capital