Company: ACTG
Filing Date: 2025-04-09
Form Type: DEF 14A
Source: 0000934549-25-000014
Chunk: 43

Company: ACACIA RESEARCH CORP
Filing Date: 2025-04-09
Form: DEF 14A
Chunk 43
---
 delay our ability to use our NOLs to reduce future income tax liability (including possibly resulting in NOLs generated prior to 2018 expiring before they can be utilized) and, therefore, significantly impair the value of our NOLs. A number of complex rules apply in determining whether an ownership change has occurred, including “constructive ownership” rules that generally attribute ownership of stock owned by estates, trusts, corporations, partnerships or other entities to the ultimate indirect owner thereof or to related individuals. Because of these rules, the Company cannot eliminate the possibility that an ownership change will occur even if the Existing Protective Provisions are extended. However, if no action is taken to extend the Existing Protective Provisions, we believe it is far more likely that we could experience an ownership change which would inhibit our ability to utilize our NOLs. For the reasons stated

<div align='center'>29</div>

above, our Board believes that approval of this proposal is in our best interests and the best interests of our stockholders.

#### Description
The following description of the Existing Protective Provisions is qualified in its entirety by reference to the complete text of Appendix A to this Proxy Statement. Appendix A reflects the Company’s Third Amended and Restated Certificate of Incorporation, which is currently in effect, marked to show the amendments that would be included in the A&R Charter to extend by three years the Expiration Date of the Existing Protective Provisions.

Prohibited Transfers . The Existing Protective Provisions generally prohibit any direct or indirect transfer of our common stock if the effect would be to: (i) increase the direct or indirect ownership of our common stock by any Person (as defined below) from less than 4.899% to 4.899% or more of our common stock; or (ii) increase the percentage of our common stock owned directly or indirectly by a Person owning or deemed to own 4.899% or more of our common stock. An indirect transfer of common stock that does not involve a transfer of our securities within the meaning of Delaware law may cause a Person to violate the Existing Protective Provisions. For example, a redemption of shares of common stock from other Persons could cause a non-redeeming Person to own common stock in excess of the ownership limit.

“Person” means any individual, partnership, joint venture, limited liability company, firm, corporation, unincorporated association or organization, trust or other entity or any group of such “Persons” having a formal or informal understanding among themselves to make