Company: PENG
Filing Date: 2025-05-02
Form Type: DEF 14A
Source: 0001193125-25-110748
Chunk: 86

Company: Penguin Solutions, Inc.
Filing Date: 2025-05-02
Form: DEF 14A
Chunk 86
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 dividend on, (ii) purchase, redeem or otherwise acquire, or (iii) otherwise make                                                                                                                                            
 any distribution with respect to, any shares of Penguin Solutions Delaware (other than Penguin Solutions Delaware convertible preferred stock), except for dividends on Penguin Solutions Delaware common stock paid solely in additional Penguin  
 Solutions Delaware common stock (provided, that the Penguin Solutions Delaware convertible preferred stock participate in such dividend on an as-converted basis); provided that no such consent                                                   
 shall be required for (x) purchases, redemptions, repurchases or other acquisitions of shares of Penguin Solutions Delaware common stock in connection with any employment contract, benefit plan or other similar arrangement with or for the     
 benefit of any one or more employees, officers, directors, managers or consultants of or to Penguin Solutions Delaware or its subsidiaries, (y) repurchases of Penguin Solutions Delaware common stock in cash provided the amount paid by Penguin 
 Solutions Delaware therefor does not exceed $20 million during any twelve month period; or (z) payment of cash in lieu of fractional shares issued upon conversion of options or convertible securities.                                           |

Notwithstanding any provisions to the contrary in the Penguin Solutions Delaware amended and restated certificate of incorporation or amended and restated bylaws, the holders of shares of Penguin Solutions Delaware convertible preferred stock will be permitted to act by written consent. In addition, for so long as SKT or its subsidiaries or affiliates together beneficially own Penguin Solutions Delaware convertible preferred stock (or Penguin Solutions Delaware common stock issued with respect thereto) representing at least 7.5% of the issued and outstanding shares of Penguin Solutions Delaware common stock, calculated on a fully-diluted basis, Penguin Solutions Delaware shall not, without the prior written consent or waiver of SKT or such subsidiaries or affiliates or the approval of the Penguin Solutions Delaware Board (including the vote or consent of each Investor Designee), incur, assume or otherwise become liable for Indebtedness (as defined in the Certificate of Designation) if, as a result thereof, the Total Leverage Ratio (as defined in the Certificate of Designation) would exceed 5.00 to 1.00 as of the last day of any fiscal quarter of Penguin Solutions Delaware. Listing We will not seek to list the Penguin Solutions Delaware convertible preferred stock in connection with the Transaction. Book-Entry Procedures Penguin Solutions Delaware convertible preferred stock will only be issued via book-entry to the applicable account(s) registered in the name of the holders thereof. Annual Stockholder Meetings Penguin Solutions Delaware’s amended and restated bylaws will provide