Company: ACTG
Filing Date: 2025-03-28
Form Type: PRE 14A
Source: 0000934549-25-000010
Chunk: 42

Company: ACACIA RESEARCH CORP
Filing Date: 2025-03-28
Form: PRE 14A
Chunk 42
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and regulations promulgated thereunder) apply for purposes of determining whether a Person indirectly owns stock and, thus, is a 4.899% stockholder under the Existing Protective Provisions. These rules attribute ownership of stock owned by estates, trusts, corporations, partnerships or other entities to the ultimate indirect owner thereof or to related individuals. Thus, prohibited transfers include not only sales to Persons whose resulting percentage ownership (direct or indirect) of our common stock would equal or exceed the 4.899% thresholds discussed above, but also (i) sales to Persons whose direct or indirect ownership of our common stock would by attribution cause another Person to exceed such threshold under the constructive ownership rules referenced above or (ii) transfers of interests in entities that directly or indirectly own our common stock that cause a Person to exceed such threshold under the constructive ownership rules referenced above.

The foregoing transfer restrictions may result in the delay or refusal of certain requested transfers of our common stock, or prohibit ownership (thus requiring dispositions) of our common stock.

Consequences of Prohibited Transfers. Under the Existing Protective Provisions, any attempted direct or indirect transfer that constitutes a prohibited transfer in violation of the Existing Protective Provisions would (i) in the case of a direct transfer, be void as of the date of the prohibited transfer as to the purported transferee or (ii) in the case of an indirect transfer, result in the ownership of the direct owner of our common stock being automatically reduced simultaneously with the transfer in the amount needed to comply with the 4.899% thresholds discussed above. Additionally,

• the purported transferee (or in the case of any indirect transfer, the direct owner) would not be recognized as the owner of the shares owned in violation of the Existing Protective Provisions (the “excess shares”) for any purpose, including for purposes of voting and receiving dividends or other distributions in respect of such excess shares, or in the case of options, receiving shares in respect of their exercise;

• upon demand, the purported transferee must transfer the excess shares to our agent, along with any dividends or other distributions paid with respect to such excess shares, our agent is required to sell such excess shares, and the net proceeds of the sale, after deduction of all costs incurred by the agent, will be transferred first to the purported transferee in an amount, if any, up to the cost incurred by the purported transferee to acquire such excess shares (or in the case of gift, inheritance or similar transfer, in an amount equal to the fair market