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<div id="a1" style="position:absolute;font-family:'Times New Roman';left:358px;top:57px;">UNITED STATES </div><div id="a3" style="position:absolute;font-family:'Times New Roman';left:272px;top:76px;">SECURITIES AND EXCHANGE COMMISSION </div><div id="a5" style="position:absolute;font-family:'Times New Roman';left:333px;top:94px;">WASHINGTON, DC 20549 </div><div id="a8" style="position:absolute;font-family:'Times New Roman';left:377px;top:130.9px;">FORM </div><div id="a8_5_3" style="position:absolute;font-family:'Times New Roman';left:418px;top:130.9px;"><ix:nonNumeric id="ID_0" name="dei:DocumentType" contextRef="FROM_Feb25_2025_TO_Feb25_2025_Entity_0000016160">8-K</ix:nonNumeric></div><div id="a13" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:346px;top:168px;">CURRENT REPORT </div><div id="a15" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:231px;top:186px;">Pursuant to Section 13 or 15(d) of the Securities Exchange<div 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<div id="a150" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:66px;top:57px;">Item 1.01<div style="display:inline-block;width:7px">&#160;</div>Entry into a Material Definitive Agreement. </div><div id="a155" style="position:absolute;font-family:'Times New Roman';font-weight:bold;font-style:italic;left:66px;top:88px;">Background</div><div id="a158" style="position:absolute;font-family:'Times New Roman';left:66px;top:119px;">Cal-Maine Foods, Inc. (&#8220;Cal-Maine Foods,&#8221; the &#8220;Company,&#8221; &#8220;we,&#8221; &#8220;us&#8221; or &#8220;our&#8221;)<div style="display:inline-block;width:2px">&#160;</div>has been controlled by members of the family </div><div id="a173" style="position:absolute;font-family:'Times New Roman';left:66px;top:134px;">of our<div style="display:inline-block;width:5px">&#160;</div>founder, Fred<div style="display:inline-block;width:5px">&#160;</div>R. 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LLC<div style="display:inline-block;width:5px">&#160;</div>ceasing to<div style="display:inline-block;width:5px">&#160;</div>have majority </div><div id="a257" style="position:absolute;font-family:'Times New Roman';left:66px;top:456px;">voting control of the Company, which in turn would result in the Company ceasing<div style="display:inline-block;width:2px">&#160;</div>to be a &#8220;controlled company&#8221; pursuant to the </div><div id="a259" style="position:absolute;font-family:'Times New Roman';left:66px;top:471px;">rules of The Nasdaq Stock Market. The Members indicated that they were willing to work with the Company towards achieving </div><div id="a260" style="position:absolute;font-family:'Times New Roman';left:66px;top:487px;">a smooth<div style="display:inline-block;width:2px">&#160;</div>transition. Before<div style="display:inline-block;width:2px">&#160;</div>giving effect<div style="display:inline-block;width:2px">&#160;</div>to any<div style="display:inline-block;width:2px">&#160;</div>potential sales,<div style="display:inline-block;width:2px">&#160;</div>if Daughters&#8217;<div style="display:inline-block;width:1px">&#160;</div>LLC were<div style="display:inline-block;width:2px">&#160;</div>to convert<div style="display:inline-block;width:2px">&#160;</div>its Class A<div style="display:inline-block;width:1px">&#160;</div>Shares into<div style="display:inline-block;width:2px">&#160;</div>Common </div><div id="a264" style="position:absolute;font-family:'Times New Roman';left:66px;top:502px;">Shares, Daughters&#8217; LLC&#8217;s total voting<div style="display:inline-block;width:5px">&#160;</div>power would decline<div style="display:inline-block;width:5px">&#160;</div>from 53.2% to<div style="display:inline-block;width:5px">&#160;</div>12.0% of the<div style="display:inline-block;width:5px">&#160;</div>voting power of<div style="display:inline-block;width:5px">&#160;</div>the Company&#8217;s then-</div><div id="a266" style="position:absolute;font-family:'Times New Roman';left:66px;top:517px;">outstanding Common Shares. The Class A Conversion would have no impact<div style="display:inline-block;width:5px">&#160;</div>on the Daughters&#8217; LLC&#8217;s economic interest in the </div><div id="a268" style="position:absolute;font-family:'Times New Roman';left:66px;top:533px;">Company, which would remain at 12.0%. </div><div id="a271" style="position:absolute;font-family:'Times New Roman';left:66px;top:563px;">As noted above, Mr. Baker has an interest in the Potential Portfolio Diversification<div style="display:inline-block;width:2px">&#160;</div>and, as a director, has an interest in certain of </div><div id="a274" style="position:absolute;font-family:'Times New Roman';left:66px;top:579px;">the potential<div style="display:inline-block;width:5px">&#160;</div>actions by<div style="display:inline-block;width:5px">&#160;</div>the Company to<div style="display:inline-block;width:5px">&#160;</div>address the Potential<div style="display:inline-block;width:5px">&#160;</div>Portfolio Diversification.<div 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style="display:inline-block;width:5px">&#160;</div>taken to </div><div id="a282" style="position:absolute;font-family:'Times New Roman';left:66px;top:625px;">address the impact of the Potential Portfolio Diversification on the Company and its stockholders. </div><div id="a286" style="position:absolute;font-family:'Times New Roman';left:66px;top:655px;">The Special Committee, among other things,<div style="display:inline-block;width:5px">&#160;</div>considered and determined that it was<div style="display:inline-block;width:5px">&#160;</div>in the best interests of<div style="display:inline-block;width:5px">&#160;</div>the Company and its </div><div id="a288" style="position:absolute;font-family:'Times New Roman';left:66px;top:671px;">stockholders for the Company<div style="display:inline-block;width:2px">&#160;</div>to facilitate the Members&#8217;<div style="display:inline-block;width:1px">&#160;</div>sale of their Common<div style="display:inline-block;width:2px">&#160;</div>Shares, including the Common<div style="display:inline-block;width:2px">&#160;</div>Shares underlying </div><div id="a289" style="position:absolute;font-family:'Times New Roman';left:66px;top:686px;">their Class A Shares, and manage the<div style="display:inline-block;width:5px">&#160;</div>loss of controlled company<div style="display:inline-block;width:5px">&#160;</div>status, in each<div style="display:inline-block;width:5px">&#160;</div>case, in an orderly<div style="display:inline-block;width:5px">&#160;</div>manner in compliance with </div><div id="a291" style="position:absolute;font-family:'Times New Roman';left:66px;top:701px;">legal requirements. </div><div id="a294" style="position:absolute;font-family:'Times New Roman';left:66px;top:732px;">On February 24, 2025,<div style="display:inline-block;width:5px">&#160;</div>the Special Committee<div style="display:inline-block;width:5px">&#160;</div>unanimously recommended to<div style="display:inline-block;width:5px">&#160;</div>the Board, 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the Third<div style="display:inline-block;width:2px">&#160;</div>Amended and Restated Certificate </div><div id="a307" style="position:absolute;font-family:'Times New Roman';left:66px;top:778px;">of Incorporation of the Company (&#8220;Restated Charter&#8221;),<div style="display:inline-block;width:2px">&#160;</div>to become effective upon filing with the<div style="display:inline-block;width:2px">&#160;</div>Delaware Secretary of State (the </div><div id="a310" style="position:absolute;font-family:'Times New Roman';left:66px;top:793px;">&#8220;Restated<div style="display:inline-block;width:5px">&#160;</div>Charter<div style="display:inline-block;width:5px">&#160;</div>Effective<div style="display:inline-block;width:5px">&#160;</div>Date&#8221;),<div style="display:inline-block;width:5px">&#160;</div>(ii) the Amended<div style="display:inline-block;width:5px">&#160;</div>and<div style="display:inline-block;width:5px">&#160;</div>Restated<div 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style="display:inline-block;width:5px">&#160;</div>in<div style="display:inline-block;width:6px">&#160;</div>the<div style="display:inline-block;width:6px">&#160;</div>Conversion Agreement<div style="display:inline-block;width:6px">&#160;</div>(the<div style="display:inline-block;width:6px">&#160;</div>&#8220;Daughters&#8217; LLC </div><div id="a323" style="position:absolute;font-family:'Times New Roman';left:66px;top:839px;">Amendment&#8221;).<div style="display:inline-block;width:5px">&#160;</div>The Conversion<div style="display:inline-block;width:1px">&#160;</div>Agreement, including<div style="display:inline-block;width:2px">&#160;</div>the documents<div style="display:inline-block;width:2px">&#160;</div>contemplated by<div style="display:inline-block;width:2px">&#160;</div>that agreement,<div style="display:inline-block;width:2px">&#160;</div>are referred<div style="display:inline-block;width:2px">&#160;</div>to collectively </div><div id="a325" style="position:absolute;font-family:'Times New Roman';left:66px;top:855px;">as the<div style="display:inline-block;width:6px">&#160;</div>&#8220;Transactions.&#8221;<div style="display:inline-block;width:8px">&#160;</div>At the<div style="display:inline-block;width:6px">&#160;</div>meeting at<div style="display:inline-block;width:6px">&#160;</div>which the<div style="display:inline-block;width:6px">&#160;</div>Board approved<div style="display:inline-block;width:6px">&#160;</div>the Conversion Agreement,<div style="display:inline-block;width:6px">&#160;</div>the Board<div style="display:inline-block;width:6px">&#160;</div>also unanimously </div><div id="a331" style="position:absolute;font-family:'Times New Roman';left:66px;top:870px;">approved and declared advisable the Restated Charter, and directed that it be submitted for stockholder approval by the majority </div><div id="a333" style="position:absolute;font-family:'Times New Roman';left:66px;top:885px;">written consent of stockholders. </div><div id="a336" style="position:absolute;font-family:'Times New Roman';left:66px;top:916px;">Thereafter, on February 25, 2025, the Conversion Agreement was<div style="display:inline-block;width:5px">&#160;</div>executed and delivered by<div style="display:inline-block;width:5px">&#160;</div>the Company and the<div style="display:inline-block;width:5px">&#160;</div>Stockholder </div><div id="a342" style="position:absolute;font-family:'Times New Roman';left:66px;top:931px;">Parties, and Daughters&#8217; LLC executed and delivered the majority written consent in lieu of a meeting of stockholders approving </div><div id="a344" style="position:absolute;font-family:'Times New Roman';left:66px;top:947px;">the Restated Charter (the<div style="display:inline-block;width:2px">&#160;</div>&#8220;Majority Written Consent&#8221;)<div style="display:inline-block;width:2px">&#160;</div>in accordance with Section 228<div style="display:inline-block;width:2px">&#160;</div>of the Delaware General<div style="display:inline-block;width:2px">&#160;</div>Corporation Law </div><div id="a349" style="position:absolute;font-family:'Times New Roman';left:66px;top:962px;">(the &#8220;DGCL&#8221;). </div></div>
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<div id="a355" style="position:absolute;font-family:'Times New Roman';left:66px;top:57px;">As requested by the<div style="display:inline-block;width:2px">&#160;</div>Board, Mr. Baker<div style="display:inline-block;width:2px">&#160;</div>plans to continue to<div style="display:inline-block;width:2px">&#160;</div>serve as Board<div style="display:inline-block;width:2px">&#160;</div>Chair at least until<div style="display:inline-block;width:2px">&#160;</div>the Company&#8217;s 2027 annual<div style="display:inline-block;width:2px">&#160;</div>meeting </div><div id="a358" style="position:absolute;font-family:'Times New Roman';left:66px;top:73px;">of stockholders. </div><div id="a361" style="position:absolute;font-family:'Times New Roman';left:66px;top:103px;">Contemporaneously with<div style="display:inline-block;width:5px">&#160;</div>the filing<div style="display:inline-block;width:5px">&#160;</div>of this<div style="display:inline-block;width:5px">&#160;</div>Current Report<div 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Roman';left:66px;top:195px;">Because the Restated Charter<div style="display:inline-block;width:2px">&#160;</div>has been approved by<div style="display:inline-block;width:2px">&#160;</div>the Board and by<div style="display:inline-block;width:2px">&#160;</div>the stockholder vote required<div style="display:inline-block;width:2px">&#160;</div>by law, the Company<div style="display:inline-block;width:2px">&#160;</div>will not </div><div id="a377" style="position:absolute;font-family:'Times New Roman';left:66px;top:211px;">be soliciting proxies or holding a meeting of stockholders to consider the Restated Charter. </div><div id="a380" style="position:absolute;font-family:'Times New Roman';font-weight:bold;font-style:italic;left:66px;top:241px;">Agreement Regarding Conversion </div><div id="a383" style="position:absolute;font-family:'Times New Roman';left:66px;top:272px;">The Conversion Agreement provides for the following: </div><div id="a386" style="position:absolute;font-family:'Times 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style="display:inline-block;width:5px">&#160;</div>Bylaws, which<div style="display:inline-block;width:5px">&#160;</div>include provisions<div style="display:inline-block;width:5px">&#160;</div>that align<div style="display:inline-block;width:5px">&#160;</div>with the<div style="display:inline-block;width:5px">&#160;</div>Restated Charter,<div style="display:inline-block;width:5px">&#160;</div>to </div><div id="a396" style="position:absolute;font-family:'Times New Roman';left:114px;top:351px;">become effective on the Restated Charter Effective Date; </div><div id="a398" style="position:absolute;font-family:'Times New Roman';left:90px;top:375px;">&#9679;</div><div id="a400" style="position:absolute;font-family:'Times New Roman';left:114px;top:375px;">The agreement by the Stockholder Parties not to convert any Class A Shares into Common Shares prior to the Restated </div><div id="a401" style="position:absolute;font-family:'Times New Roman';left:114px;top:391px;">Charter Effective Date; </div><div id="a403" style="position:absolute;font-family:'Times New Roman';left:90px;top:415px;">&#9679;</div><div id="a405" style="position:absolute;font-family:'Times New Roman';left:114px;top:415px;">The agreement by the Stockholder Parties that if<div style="display:inline-block;width:5px">&#160;</div>Daughters&#8217; LLC converts any Class A<div style="display:inline-block;width:2px">&#160;</div>Shares into Common Shares, it </div><div id="a406" style="position:absolute;font-family:'Times New Roman';left:114px;top:430px;">will simultaneously convert all (but not less than all) Class<div style="display:inline-block;width:2px">&#160;</div>A Shares into Common Shares (the &#8220;Class A<div style="display:inline-block;width:2px">&#160;</div>Conversion&#8221;); </div><div id="a412" style="position:absolute;font-family:'Times New Roman';left:90px;top:455px;">&#9679;</div><div id="a414" style="position:absolute;font-family:'Times New Roman';left:114px;top:455px;">After<div 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</div><div id="a419" style="position:absolute;font-family:'Times New Roman';left:114px;top:470px;">anniversary of<div style="display:inline-block;width:2px">&#160;</div>the Class<div style="display:inline-block;width:1px">&#160;</div>A<div style="display:inline-block;width:2px">&#160;</div>Conversion Date<div style="display:inline-block;width:2px">&#160;</div>(or, if<div style="display:inline-block;width:2px">&#160;</div>earlier, December 31, 2026),<div style="display:inline-block;width:2px">&#160;</div>certain registration<div style="display:inline-block;width:2px">&#160;</div>rights of<div style="display:inline-block;width:2px">&#160;</div>the Members </div><div id="a424" style="position:absolute;font-family:'Times New Roman';left:114px;top:485px;">to offer or sell Common Shares in a registered offering under the Securities<div style="display:inline-block;width:2px">&#160;</div>Act; and </div><div id="a426" style="position:absolute;font-family:'Times New Roman';left:90px;top:510px;">&#9679;</div><div id="a428" style="position:absolute;font-family:'Times New Roman';left:114px;top:510px;">The adoption by the<div style="display:inline-block;width:5px">&#160;</div>Stockholder Parties of an<div style="display:inline-block;width:5px">&#160;</div>amended and restated limited<div style="display:inline-block;width:5px">&#160;</div>liability company operating agreement of </div><div id="a429" style="position:absolute;font-family:'Times New Roman';left:114px;top:525px;">Daughters&#8217; LLC, which provides for<div style="display:inline-block;width:5px">&#160;</div>certain changes to<div style="display:inline-block;width:5px">&#160;</div>permit Daughters&#8217; LLC to take<div style="display:inline-block;width:5px">&#160;</div>the actions provided<div style="display:inline-block;width:5px">&#160;</div>for in the </div><div id="a430" style="position:absolute;font-family:'Times New Roman';left:114px;top:540px;">Conversion Agreement. </div><div 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(or<div style="display:inline-block;width:5px">&#160;</div>over which such<div style="display:inline-block;width:5px">&#160;</div>Stockholder Party has </div><div id="a438" style="position:absolute;font-family:'Times New Roman';left:66px;top:602px;">voting discretion or<div style="display:inline-block;width:5px">&#160;</div>control as of<div style="display:inline-block;width:5px">&#160;</div>the applicable record<div style="display:inline-block;width:5px">&#160;</div>date) to be<div style="display:inline-block;width:5px">&#160;</div>present either in<div style="display:inline-block;width:5px">&#160;</div>person or by<div style="display:inline-block;width:5px">&#160;</div>proxy for quorum<div style="display:inline-block;width:5px">&#160;</div>purposes at </div><div id="a441" style="position:absolute;font-family:'Times New Roman';left:66px;top:617px;">any stockholders&#8217; meeting at which<div style="display:inline-block;width:5px">&#160;</div>directors of the<div style="display:inline-block;width:5px">&#160;</div>Company are elected,<div style="display:inline-block;width:5px">&#160;</div>and (ii) to vote,<div style="display:inline-block;width:5px">&#160;</div>or cause to<div style="display:inline-block;width:5px">&#160;</div>be voted, such<div style="display:inline-block;width:5px">&#160;</div>Common </div><div id="a444" style="position:absolute;font-family:'Times New Roman';left:66px;top:632px;">Shares and Class A Shares held by it (or over which such Stockholder Party has voting discretion or control) in favor of not less </div><div id="a446" style="position:absolute;font-family:'Times New Roman';left:66px;top:648px;">than three independent directors. </div><div id="a449" style="position:absolute;font-family:'Times New Roman';left:66px;top:678px;">The Transactions do not<div style="display:inline-block;width:5px">&#160;</div>require any Stockholder<div style="display:inline-block;width:5px">&#160;</div>Party to convert<div 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entirety by, the provisions of the </div><div id="a464" style="position:absolute;font-family:'Times New Roman';left:66px;top:755px;">Conversion Agreement, a copy of which is filed herewith<div style="display:inline-block;width:2px">&#160;</div>as Exhibit 99.1. </div><div id="a469" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:66px;top:786px;">Item 1.02<div style="display:inline-block;width:6px">&#160;</div>Termination of a Material Definitive Agreement. </div><div id="a475" style="position:absolute;font-family:'Times New Roman';left:66px;top:816px;">Pursuant<div style="display:inline-block;width:5px">&#160;</div>to the<div style="display:inline-block;width:6px">&#160;</div>Conversion Agreement,<div style="display:inline-block;width:5px">&#160;</div>that certain<div style="display:inline-block;width:5px">&#160;</div>Agreement Regarding<div style="display:inline-block;width:6px">&#160;</div>Common Stock,<div 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id="a499" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:66px;top:893px;">Item 5.01 Changes in Control of Registrant. </div><div id="a502" style="position:absolute;font-family:'Times New Roman';left:66px;top:924px;">(a)</div><div id="a504" style="position:absolute;font-family:'Times New Roman';left:90px;top:924px;">The Company has not experienced a change of control. </div></div>
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<div id="a508" style="position:absolute;font-family:'Times New Roman';left:66px;top:57px;">(b)</div><div id="a510" style="position:absolute;font-family:'Times New Roman';left:90px;top:57px;">As<div style="display:inline-block;width:5px">&#160;</div>described<div style="display:inline-block;width:5px">&#160;</div>in<div style="display:inline-block;width:5px">&#160;</div>Item 1.01,<div style="display:inline-block;width:5px">&#160;</div>if<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>Class A Conversion<div style="display:inline-block;width:6px">&#160;</div>occurs,<div style="display:inline-block;width:5px">&#160;</div>Daughters&#8217; LLC<div style="display:inline-block;width:6px">&#160;</div>will<div style="display:inline-block;width:5px">&#160;</div>no<div style="display:inline-block;width:5px">&#160;</div>longer<div style="display:inline-block;width:5px">&#160;</div>control<div style="display:inline-block;width:5px">&#160;</div>a<div style="display:inline-block;width:5px">&#160;</div>majority<div style="display:inline-block;width:5px">&#160;</div>of<div style="display:inline-block;width:5px">&#160;</div>the </div><div id="a515" style="position:absolute;font-family:'Times New Roman';left:90px;top:73px;">Company&#8217;s total voting power, and the<div style="display:inline-block;width:2px">&#160;</div>Company would no longer be a<div style="display:inline-block;width:2px">&#160;</div>&#8220;controlled company&#8221; under the rules<div style="display:inline-block;width:2px">&#160;</div>of The Nasdaq </div><div id="a516" style="position:absolute;font-family:'Times New Roman';left:90px;top:88px;">Stock Market.<div style="display:inline-block;width:3px">&#160;</div></div><div id="a519" style="position:absolute;font-family:'Times New Roman';left:66px;top:119px;">As described in<div style="display:inline-block;width:5px">&#160;</div>Item 1.01, the Conversion Agreement does<div style="display:inline-block;width:5px">&#160;</div>not require Daughters&#8217; LLC to<div style="display:inline-block;width:5px">&#160;</div>convert its Class A Shares<div style="display:inline-block;width:5px">&#160;</div>or to sell </div><div id="a524" style="position:absolute;font-family:'Times New Roman';left:66px;top:134px;">any shares of<div style="display:inline-block;width:5px">&#160;</div>the Company.<div style="display:inline-block;width:8px">&#160;</div>Therefore, there can be<div style="display:inline-block;width:5px">&#160;</div>no assurance that the<div style="display:inline-block;width:5px">&#160;</div>Class A Conversion will occur or,<div style="display:inline-block;width:5px">&#160;</div>if so, when it<div style="display:inline-block;width:5px">&#160;</div>will </div><div id="a527" style="position:absolute;font-family:'Times New Roman';left:66px;top:149px;">occur. 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The Restated<div style="display:inline-block;width:5px">&#160;</div>Charter provides for<div style="display:inline-block;width:5px">&#160;</div>the following<div style="display:inline-block;width:5px">&#160;</div>changes, among others,<div style="display:inline-block;width:5px">&#160;</div>to the<div style="display:inline-block;width:5px">&#160;</div>Company&#8217;s existing </div><div id="a558" style="position:absolute;font-family:'Times New Roman';left:66px;top:364px;">Second Amended and Restated Certificate of Incorporation,<div style="display:inline-block;width:2px">&#160;</div>as amended (the &#8220;Current Charter&#8221;): </div><div id="a563" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:395px;">Authorization of Undesignated Preferred Stock </div><div id="a566" style="position:absolute;font-family:'Times New Roman';left:66px;top:425px;">Under the Restated<div style="display:inline-block;width:2px">&#160;</div>Charter, the Board<div style="display:inline-block;width:1px">&#160;</div>will have the<div style="display:inline-block;width:2px">&#160;</div>authority, without further<div style="display:inline-block;width:1px">&#160;</div>action by the<div style="display:inline-block;width:1px">&#160;</div>stockholders, to authorize<div style="display:inline-block;width:1px">&#160;</div>the issuance </div><div id="a568" style="position:absolute;font-family:'Times New Roman';left:66px;top:441px;">by the Company of up to 10,000,000 shares of preferred stock, $0.01 par value per share (the &#8220;Preferred Stock&#8221;), in one or more </div><div id="a571" style="position:absolute;font-family:'Times New Roman';left:66px;top:456px;">series and to fix the rights, preferences,<div style="display:inline-block;width:2px">&#160;</div>privileges<div style="display:inline-block;width:6px">&#160;</div>and restrictions granted to or imposed<div style="display:inline-block;width:2px">&#160;</div>upon the Preferred Stock.<div style="display:inline-block;width:5px">&#160;</div>Any or all of </div><div id="a573" style="position:absolute;font-family:'Times New Roman';left:66px;top:471px;">these rights may be greater than the rights of our Common Shares or Class<div style="display:inline-block;width:2px">&#160;</div>A Shares. Under the Current Charter, the Company<div style="display:inline-block;width:2px">&#160;</div>is </div><div id="a575" style="position:absolute;font-family:'Times New Roman';left:66px;top:487px;">not authorized to issue preferred stock. </div><div id="a578" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:517px;">Classified Board </div><div id="a581" style="position:absolute;font-family:'Times New Roman';left:66px;top:548px;">The Restated Charter<div style="display:inline-block;width:5px">&#160;</div>provides for classification<div style="display:inline-block;width:5px">&#160;</div>of the Board,<div style="display:inline-block;width:5px">&#160;</div>pursuant to which<div style="display:inline-block;width:5px">&#160;</div>directors will be<div style="display:inline-block;width:5px">&#160;</div>divided into three<div style="display:inline-block;width:5px">&#160;</div>classes, as </div><div id="a583" style="position:absolute;font-family:'Times New Roman';left:66px;top:563px;">nearly equal<div style="display:inline-block;width:5px">&#160;</div>in number<div style="display:inline-block;width:5px">&#160;</div>as possible.<div style="display:inline-block;width:9px">&#160;</div>The directors<div style="display:inline-block;width:5px">&#160;</div>in Class I<div style="display:inline-block;width:5px">&#160;</div>will each<div style="display:inline-block;width:5px">&#160;</div>have a<div style="display:inline-block;width:5px">&#160;</div>term expiring<div style="display:inline-block;width:5px">&#160;</div>at the<div style="display:inline-block;width:5px">&#160;</div>first annual<div style="display:inline-block;width:5px">&#160;</div>meeting of<div style="display:inline-block;width:5px">&#160;</div>the </div><div id="a587" style="position:absolute;font-family:'Times New Roman';left:66px;top:579px;">stockholders following the effectiveness of<div style="display:inline-block;width:5px">&#160;</div>the Restated Charter.<div style="display:inline-block;width:8px">&#160;</div>The directors in Class II will<div style="display:inline-block;width:5px">&#160;</div>each have a term expiring<div style="display:inline-block;width:5px">&#160;</div>at the </div><div id="a590" style="position:absolute;font-family:'Times New Roman';left:66px;top:594px;">second annual<div style="display:inline-block;width:5px">&#160;</div>meeting of<div style="display:inline-block;width:5px">&#160;</div>the stockholders<div style="display:inline-block;width:5px">&#160;</div>following the<div style="display:inline-block;width:5px">&#160;</div>effectiveness of<div style="display:inline-block;width:5px">&#160;</div>the Restated<div style="display:inline-block;width:5px">&#160;</div>Charter.<div style="display:inline-block;width:8px">&#160;</div>The directors<div style="display:inline-block;width:5px">&#160;</div>in Class III<div style="display:inline-block;width:5px">&#160;</div>will </div><div id="a594" style="position:absolute;font-family:'Times New Roman';left:66px;top:609px;">each have a term expiring at the third annual meeting of stockholders following the effectiveness of the Restated Charter. </div><div id="a597" style="position:absolute;font-family:'Times New Roman';left:66px;top:640px;">At each annual<div style="display:inline-block;width:5px">&#160;</div>meeting of stockholders<div style="display:inline-block;width:5px">&#160;</div>of the Company<div style="display:inline-block;width:5px">&#160;</div>beginning with the<div style="display:inline-block;width:5px">&#160;</div>first annual meeting<div style="display:inline-block;width:5px">&#160;</div>of stockholders following<div style="display:inline-block;width:5px">&#160;</div>the </div><div id="a598" style="position:absolute;font-family:'Times New Roman';left:66px;top:655px;">effectiveness of the Restated Charter,<div style="display:inline-block;width:5px">&#160;</div>subject to any rights of<div style="display:inline-block;width:5px">&#160;</div>the holders of shares of<div style="display:inline-block;width:5px">&#160;</div>any class or series of<div style="display:inline-block;width:5px">&#160;</div>Preferred Stock, the </div><div id="a601" style="position:absolute;font-family:'Times New Roman';left:66px;top:671px;">successors of<div style="display:inline-block;width:5px">&#160;</div>the directors<div style="display:inline-block;width:5px">&#160;</div>whose term<div style="display:inline-block;width:5px">&#160;</div>expires at<div style="display:inline-block;width:5px">&#160;</div>that meeting<div style="display:inline-block;width:5px">&#160;</div>shall be<div style="display:inline-block;width:5px">&#160;</div>elected to<div style="display:inline-block;width:5px">&#160;</div>hold office<div style="display:inline-block;width:5px">&#160;</div>for a<div style="display:inline-block;width:5px">&#160;</div>term expiring<div style="display:inline-block;width:5px">&#160;</div>at the<div style="display:inline-block;width:5px">&#160;</div>annual </div><div id="a603" style="position:absolute;font-family:'Times New Roman';left:66px;top:686px;">meeting of stockholders held<div style="display:inline-block;width:5px">&#160;</div>in the third year<div style="display:inline-block;width:5px">&#160;</div>following the year of<div style="display:inline-block;width:5px">&#160;</div>their election and will<div style="display:inline-block;width:5px">&#160;</div>hold office until<div style="display:inline-block;width:5px">&#160;</div>their successors are </div><div id="a606" style="position:absolute;font-family:'Times New Roman';left:66px;top:701px;">duly elected and<div style="display:inline-block;width:2px">&#160;</div>qualified, subject to<div style="display:inline-block;width:2px">&#160;</div>such director&#8217;s earlier<div style="display:inline-block;width:2px">&#160;</div>death, resignation or<div style="display:inline-block;width:2px">&#160;</div>removal.<div style="display:inline-block;width:6px">&#160;</div>In the case<div style="display:inline-block;width:2px">&#160;</div>of any increase<div style="display:inline-block;width:2px">&#160;</div>or decrease, </div><div id="a609" style="position:absolute;font-family:'Times New Roman';left:66px;top:717px;">from time to time,<div style="display:inline-block;width:2px">&#160;</div>in the number of<div style="display:inline-block;width:2px">&#160;</div>directors of the Company,<div style="display:inline-block;width:2px">&#160;</div>the number of directors<div style="display:inline-block;width:2px">&#160;</div>in each class shall<div style="display:inline-block;width:2px">&#160;</div>be apportioned as nearly </div><div id="a611" style="position:absolute;font-family:'Times New Roman';left:66px;top:732px;">equal as possible.<div style="display:inline-block;width:7px">&#160;</div>No decrease in the number of directors shall shorten the term of any incumbent director. </div><div id="a614" style="position:absolute;font-family:'Times New Roman';left:66px;top:763px;">Upon the effective date of the Restated Charter, the Board will be classified into three classes, and it is expected<div style="display:inline-block;width:5px">&#160;</div>that the current </div><div id="a617" style="position:absolute;font-family:'Times New Roman';left:66px;top:778px;">directors will be apportioned into the three classes as provided below: </div><div id="a620" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:195px;top:809px;">Class </div><div id="a623" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:503px;top:809px;">Directors </div><div id="a625" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:86px;top:825px;">Class I</div><div id="a629" style="position:absolute;font-family:'Times New Roman';left:86px;top:840px;">(terms expiring at the 2025 Annual Meeting) </div><div id="a633" style="position:absolute;font-family:'Times New Roman';left:374px;top:825px;">Sherman L. Miller and Camille S.<div style="display:inline-block;width:6px">&#160;</div>Young </div><div id="a637" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:86px;top:863px;">Class II</div><div id="a641" style="position:absolute;font-family:'Times New Roman';left:86px;top:879px;">(terms expiring at the 2026 Annual Meeting) </div><div id="a644" style="position:absolute;font-family:'Times New Roman';left:374px;top:863px;">Max P. Bowman and Letitia C. Hughes </div><div id="a648" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:86px;top:902px;">Class III</div><div id="a652" style="position:absolute;font-family:'Times New Roman';left:86px;top:917px;">(terms expiring at the 2027 Annual Meeting) </div><div id="a655" style="position:absolute;font-family:'Times New Roman';left:374px;top:902px;">Adolphus B.<div style="display:inline-block;width:6px">&#160;</div>Baker, Steve W.<div style="display:inline-block;width:5px">&#160;</div>Sanders and James E.<div style="display:inline-block;width:5px">&#160;</div>Poole </div><div id="a659" style="position:absolute;font-family:'Times New Roman';left:66px;top:948px;">Pursuant to the Current<div style="display:inline-block;width:5px">&#160;</div>Charter, the Board is not<div style="display:inline-block;width:5px">&#160;</div>classified, and directors are elected<div style="display:inline-block;width:5px">&#160;</div>at each annual meeting to<div style="display:inline-block;width:5px">&#160;</div>serve for a term </div><div id="a662" style="position:absolute;font-family:'Times New Roman';left:66px;top:963px;">of one year and until their successors are duly elected and qualified. </div></div>
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<div id="a666" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:57px;">No Cumulative Voting in Director Elections </div><div id="a669" style="position:absolute;font-family:'Times New Roman';left:66px;top:88px;">Under the Restated Charter, cumulative voting in director elections will not be permitted. Cumulative voting,<div style="display:inline-block;width:2px">&#160;</div>which is permitted </div><div id="a671" style="position:absolute;font-family:'Times New Roman';left:66px;top:103px;">by the<div style="display:inline-block;width:5px">&#160;</div>Current Charter,<div style="display:inline-block;width:5px">&#160;</div>is a<div style="display:inline-block;width:5px">&#160;</div>process for<div style="display:inline-block;width:5px">&#160;</div>electing directors<div style="display:inline-block;width:5px">&#160;</div>that permits<div style="display:inline-block;width:5px">&#160;</div>each stockholder<div style="display:inline-block;width:5px">&#160;</div>to cast<div style="display:inline-block;width:5px">&#160;</div>a number<div style="display:inline-block;width:5px">&#160;</div>of votes<div style="display:inline-block;width:5px">&#160;</div>equal to<div style="display:inline-block;width:5px">&#160;</div>the </div><div id="a674" style="position:absolute;font-family:'Times New Roman';left:66px;top:119px;">number of<div style="display:inline-block;width:5px">&#160;</div>Board seats<div style="display:inline-block;width:5px">&#160;</div>up for<div style="display:inline-block;width:5px">&#160;</div>election, multiplied<div style="display:inline-block;width:5px">&#160;</div>by the<div style="display:inline-block;width:5px">&#160;</div>number of<div style="display:inline-block;width:5px">&#160;</div>votes attributable<div style="display:inline-block;width:5px">&#160;</div>to the<div style="display:inline-block;width:5px">&#160;</div>Company Shares<div style="display:inline-block;width:5px">&#160;</div>the stockholder </div><div id="a675" style="position:absolute;font-family:'Times New Roman';left:66px;top:134px;">owns. Those votes can then be allocated by the stockholder disproportionately to one or more candidates. </div><div id="a678" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:165px;">Removal of Directors by Stockholders Only for Cause </div><div id="a681" style="position:absolute;font-family:'Times New Roman';left:66px;top:195px;">Under the<div style="display:inline-block;width:2px">&#160;</div>Restated Charter,<div style="display:inline-block;width:2px">&#160;</div>subject to<div style="display:inline-block;width:2px">&#160;</div>the rights<div style="display:inline-block;width:2px">&#160;</div>of holders<div style="display:inline-block;width:2px">&#160;</div>of any<div style="display:inline-block;width:2px">&#160;</div>series of<div style="display:inline-block;width:2px">&#160;</div>Preferred Stock<div style="display:inline-block;width:2px">&#160;</div>with respect<div style="display:inline-block;width:2px">&#160;</div>to the<div style="display:inline-block;width:2px">&#160;</div>election of<div style="display:inline-block;width:2px">&#160;</div>directors, </div><div id="a684" style="position:absolute;font-family:'Times New Roman';left:66px;top:211px;">a director may be removed<div style="display:inline-block;width:2px">&#160;</div>from office by the stockholders<div style="display:inline-block;width:2px">&#160;</div>of the Company only for<div style="display:inline-block;width:2px">&#160;</div>cause and only by the<div style="display:inline-block;width:2px">&#160;</div>affirmative vote of the </div><div id="a686" style="position:absolute;font-family:'Times New Roman';left:66px;top:226px;">holders of at least a majority<div style="display:inline-block;width:5px">&#160;</div>of the voting power of<div style="display:inline-block;width:5px">&#160;</div>all then outstanding shares of capital stock<div style="display:inline-block;width:5px">&#160;</div>of the Company entitled to vote </div><div id="a689" style="position:absolute;font-family:'Times New Roman';left:66px;top:241px;">generally in the election of directors, voting together as a single class. The DGCL permits corporations with classified boards to </div><div id="a691" style="position:absolute;font-family:'Times New Roman';left:66px;top:257px;">include this<div style="display:inline-block;width:6px">&#160;</div>provision in<div style="display:inline-block;width:6px">&#160;</div>their charters.<div style="display:inline-block;width:5px">&#160;</div>The Current<div style="display:inline-block;width:6px">&#160;</div>Charter and<div style="display:inline-block;width:6px">&#160;</div>the Company&#8217;s<div style="display:inline-block;width:6px">&#160;</div>existing Amended<div style="display:inline-block;width:5px">&#160;</div>and Restated<div style="display:inline-block;width:6px">&#160;</div>Bylaws (the </div><div id="a692" style="position:absolute;font-family:'Times New Roman';left:66px;top:272px;">&#8220;Current Bylaws&#8221;)<div style="display:inline-block;width:6px">&#160;</div>are silent<div style="display:inline-block;width:6px">&#160;</div>with regard<div style="display:inline-block;width:6px">&#160;</div>to the<div style="display:inline-block;width:6px">&#160;</div>removal of<div style="display:inline-block;width:6px">&#160;</div>directors, and<div style="display:inline-block;width:6px">&#160;</div>therefore, pursuant<div style="display:inline-block;width:6px">&#160;</div>to the<div style="display:inline-block;width:6px">&#160;</div>DGCL, directors<div style="display:inline-block;width:6px">&#160;</div>may be </div><div id="a696" style="position:absolute;font-family:'Times New Roman';left:66px;top:287px;">removed, with or without cause, by the holders of a majority of the voting power. </div><div id="a699" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:318px;">Vacancies and Newly Created Directorships </div><div id="a702" style="position:absolute;font-family:'Times New Roman';left:66px;top:349px;">The Restated Charter provides that, subject<div style="display:inline-block;width:2px">&#160;</div>to the rights of holders of any<div style="display:inline-block;width:2px">&#160;</div>series of Preferred Stock with respect<div style="display:inline-block;width:2px">&#160;</div>to the election of </div><div id="a704" style="position:absolute;font-family:'Times New Roman';left:66px;top:364px;">directors, vacancies<div style="display:inline-block;width:6px">&#160;</div>occurring on<div style="display:inline-block;width:6px">&#160;</div>the Board<div style="display:inline-block;width:6px">&#160;</div>for any<div style="display:inline-block;width:6px">&#160;</div>reason and<div style="display:inline-block;width:6px">&#160;</div>newly created<div style="display:inline-block;width:6px">&#160;</div>directorships resulting<div style="display:inline-block;width:6px">&#160;</div>from an<div style="display:inline-block;width:6px">&#160;</div>increase in<div style="display:inline-block;width:6px">&#160;</div>the </div><div id="a706" style="position:absolute;font-family:'Times New Roman';left:66px;top:379px;">number of directors<div style="display:inline-block;width:2px">&#160;</div>may be filled<div style="display:inline-block;width:2px">&#160;</div>only by vote<div style="display:inline-block;width:2px">&#160;</div>of a majority<div style="display:inline-block;width:2px">&#160;</div>of the remaining<div style="display:inline-block;width:2px">&#160;</div>members of the<div style="display:inline-block;width:2px">&#160;</div>Board, although less<div style="display:inline-block;width:2px">&#160;</div>than a quorum, </div><div id="a708" style="position:absolute;font-family:'Times New Roman';left:66px;top:395px;">or by a sole remaining director, at any meeting of the Board and<div style="display:inline-block;width:2px">&#160;</div>not by the stockholders.<div style="display:inline-block;width:5px">&#160;</div>A person so elected by the<div style="display:inline-block;width:2px">&#160;</div>Board to fill </div><div id="a710" style="position:absolute;font-family:'Times New Roman';left:66px;top:410px;">a vacancy or newly<div style="display:inline-block;width:2px">&#160;</div>created directorship shall hold<div style="display:inline-block;width:2px">&#160;</div>office until the next<div style="display:inline-block;width:2px">&#160;</div>election of the class<div style="display:inline-block;width:2px">&#160;</div>for which such person<div style="display:inline-block;width:2px">&#160;</div>shall have been </div><div id="a712" style="position:absolute;font-family:'Times New Roman';left:66px;top:425px;">assigned by the Board and until such person&#8217;s successor shall be duly elected and qualified or until such director&#8217;s<div style="display:inline-block;width:5px">&#160;</div>earlier death, </div><div id="a714" style="position:absolute;font-family:'Times New Roman';left:66px;top:441px;">resignation or removal.<div style="display:inline-block;width:1px">&#160;</div>The Current Bylaws<div style="display:inline-block;width:1px">&#160;</div>contain a similar<div style="display:inline-block;width:2px">&#160;</div>provision, but do<div style="display:inline-block;width:1px">&#160;</div>not restrict the<div style="display:inline-block;width:2px">&#160;</div>power to fill<div style="display:inline-block;width:1px">&#160;</div>vacancies to the<div style="display:inline-block;width:2px">&#160;</div>Board </div><div id="a716" style="position:absolute;font-family:'Times New Roman';left:66px;top:456px;">and do not address vacancies occurring in a class of directors, as under the Current Charter the Board is not classified. </div><div id="a720" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:487px;">Amendments to Charter </div><div id="a723" style="position:absolute;font-family:'Times New Roman';left:66px;top:517px;">Pursuant to<div style="display:inline-block;width:5px">&#160;</div>the Restated<div style="display:inline-block;width:5px">&#160;</div>Charter, any<div style="display:inline-block;width:5px">&#160;</div>amendment to<div style="display:inline-block;width:5px">&#160;</div>the Restated<div style="display:inline-block;width:5px">&#160;</div>Charter will<div style="display:inline-block;width:5px">&#160;</div>require the<div style="display:inline-block;width:5px">&#160;</div>affirmative vote<div style="display:inline-block;width:5px">&#160;</div>of the<div style="display:inline-block;width:5px">&#160;</div>holders of<div style="display:inline-block;width:5px">&#160;</div>at </div><div id="a725" style="position:absolute;font-family:'Times New Roman';left:66px;top:533px;">least 66</div><div id="a726" style="position:absolute;font-family:'Times New Roman';font-size:8.64px;left:108px;top:532px;">2</div><div id="a727" style="position:absolute;font-family:'Times New Roman';left:112px;top:533px;">/</div><div id="a728" style="position:absolute;font-family:'Times New Roman';font-size:8.64px;left:116px;top:538px;">3</div><div id="a729" style="position:absolute;font-family:'Times New Roman';left:120px;top:533px;">% of the voting<div style="display:inline-block;width:5px">&#160;</div>power of all then outstanding<div style="display:inline-block;width:5px">&#160;</div>shares of capital stock of<div style="display:inline-block;width:5px">&#160;</div>the Company entitled to vote<div style="display:inline-block;width:5px">&#160;</div>generally in the </div><div id="a730" style="position:absolute;font-family:'Times New Roman';left:66px;top:548px;">election of directors, voting together as a single class.<div style="display:inline-block;width:8px">&#160;</div>In addition, so long as any Class A Shares are outstanding, the Company </div><div id="a733" style="position:absolute;font-family:'Times New Roman';left:66px;top:563px;">may not, without first obtaining the approval by vote or written consent in the manner provided by law of the holders of not less 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style="display:inline-block;width:6px">&#160;</div>outstanding,<div style="display:inline-block;width:5px">&#160;</div>voting<div style="display:inline-block;width:5px">&#160;</div>separately<div style="display:inline-block;width:5px">&#160;</div>as<div style="display:inline-block;width:5px">&#160;</div>a<div style="display:inline-block;width:5px">&#160;</div>class,<div style="display:inline-block;width:5px">&#160;</div>(i) alter<div style="display:inline-block;width:5px">&#160;</div>or<div style="display:inline-block;width:5px">&#160;</div>change<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>rights<div style="display:inline-block;width:5px">&#160;</div>or </div><div id="a746" style="position:absolute;font-family:'Times New Roman';left:66px;top:594px;">privileges of<div style="display:inline-block;width:5px">&#160;</div>Class A Shares, (ii) amend any<div style="display:inline-block;width:5px">&#160;</div>provision of the<div style="display:inline-block;width:5px">&#160;</div>section of the<div style="display:inline-block;width:5px">&#160;</div>Restated Charter designating<div style="display:inline-block;width:5px">&#160;</div>the special rights<div style="display:inline-block;width:5px">&#160;</div>and </div><div id="a749" style="position:absolute;font-family:'Times New Roman';left:66px;top:609px;">privileges<div style="display:inline-block;width:6px">&#160;</div>of<div style="display:inline-block;width:6px">&#160;</div>the<div style="display:inline-block;width:6px">&#160;</div>Class<div style="display:inline-block;width:5px">&#160;</div>A<div style="display:inline-block;width:5px">&#160;</div>Shares<div style="display:inline-block;width:6px">&#160;</div>affecting<div style="display:inline-block;width:6px">&#160;</div>the<div style="display:inline-block;width:6px">&#160;</div>Class<div style="display:inline-block;width:5px">&#160;</div>A<div style="display:inline-block;width:5px">&#160;</div>Shares<div style="display:inline-block;width:6px">&#160;</div>or<div style="display:inline-block;width:6px">&#160;</div>(3) effect<div style="display:inline-block;width:6px">&#160;</div>any<div style="display:inline-block;width:6px">&#160;</div>re-classification<div style="display:inline-block;width:6px">&#160;</div>or<div style="display:inline-block;width:6px">&#160;</div>re-capitalization<div style="display:inline-block;width:6px">&#160;</div>of<div style="display:inline-block;width:6px">&#160;</div>the </div><div id="a758" style="position:absolute;font-family:'Times New Roman';left:66px;top:625px;">Company&#8217;s outstanding capital stock. </div><div id="a761" style="position:absolute;font-family:'Times New Roman';left:66px;top:655px;">The<div style="display:inline-block;width:5px">&#160;</div>Current<div style="display:inline-block;width:5px">&#160;</div>Charter<div style="display:inline-block;width:5px">&#160;</div>contains<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>same<div style="display:inline-block;width:5px">&#160;</div>provisions<div style="display:inline-block;width:5px">&#160;</div>with<div style="display:inline-block;width:5px">&#160;</div>respect<div style="display:inline-block;width:5px">&#160;</div>to<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>special<div style="display:inline-block;width:5px">&#160;</div>voting<div style="display:inline-block;width:5px">&#160;</div>rights<div style="display:inline-block;width:5px">&#160;</div>of<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>Class A<div style="display:inline-block;width:5px">&#160;</div>Shares<div style="display:inline-block;width:5px">&#160;</div>described </div><div id="a762" style="position:absolute;font-family:'Times New Roman';left:66px;top:671px;">immediately above. 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The Current Charter is silent<div style="display:inline-block;width:5px">&#160;</div>with </div><div id="a795" style="position:absolute;font-family:'Times New Roman';left:66px;top:947px;">respect to<div style="display:inline-block;width:6px">&#160;</div>the ability<div style="display:inline-block;width:6px">&#160;</div>of<div style="display:inline-block;width:5px">&#160;</div>stockholders to<div style="display:inline-block;width:6px">&#160;</div>act by<div style="display:inline-block;width:6px">&#160;</div>written consent;<div style="display:inline-block;width:6px">&#160;</div>therefore, under<div style="display:inline-block;width:6px">&#160;</div>the DGCL,<div style="display:inline-block;width:6px">&#160;</div>stockholder action<div style="display:inline-block;width:6px">&#160;</div>may be<div style="display:inline-block;width:6px">&#160;</div>taken </div><div id="a796" style="position:absolute;font-family:'Times New Roman';left:66px;top:962px;">without a meeting, without prior notice<div style="display:inline-block;width:2px">&#160;</div>and without a vote, if a consent<div style="display:inline-block;width:2px">&#160;</div>or consents, setting forth the action so<div style="display:inline-block;width:2px">&#160;</div>taken, is signed by </div></div>
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<div id="a799" style="position:absolute;font-family:'Times New Roman';left:66px;top:57px;">the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take </div><div id="a801" style="position:absolute;font-family:'Times New Roman';left:66px;top:73px;">such action at a meeting at which all shares entitled to vote thereon were present and voted. </div><div id="a804" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:103px;">Special Meetings of Stockholders </div><div id="a807" style="position:absolute;font-family:'Times New Roman';left:66px;top:134px;">The Restated<div style="display:inline-block;width:5px">&#160;</div>Charter provides<div style="display:inline-block;width:5px">&#160;</div>that special<div style="display:inline-block;width:5px">&#160;</div>stockholder meetings<div style="display:inline-block;width:5px">&#160;</div>may be<div style="display:inline-block;width:5px">&#160;</div>called at<div style="display:inline-block;width:5px">&#160;</div>any time<div style="display:inline-block;width:5px">&#160;</div>only by<div style="display:inline-block;width:5px">&#160;</div>the Board<div style="display:inline-block;width:5px">&#160;</div>Chair or<div style="display:inline-block;width:5px">&#160;</div>by the </div><div id="a808" style="position:absolute;font-family:'Times New Roman';left:66px;top:149px;">Board.<div style="display:inline-block;width:7px">&#160;</div>The ability of stockholders to call special stockholder meetings is specifically denied. The Current Charter is silent with </div><div id="a810" style="position:absolute;font-family:'Times New Roman';left:66px;top:165px;">respect to calling special stockholder meetings, and the Current Bylaws provide that special stockholder meetings may be called </div><div id="a812" style="position:absolute;font-family:'Times New Roman';left:66px;top:180px;">by the Board<div style="display:inline-block;width:5px">&#160;</div>Chair, chief executive<div style="display:inline-block;width:5px">&#160;</div>officer, president, a<div style="display:inline-block;width:5px">&#160;</div>majority of the<div style="display:inline-block;width:5px">&#160;</div>Board, or by<div style="display:inline-block;width:5px">&#160;</div>stockholders owning a<div style="display:inline-block;width:5px">&#160;</div>majority in voting </div><div id="a814" style="position:absolute;font-family:'Times New Roman';left:66px;top:195px;">interest of the entire capital stock of the Company issued and outstanding and entitled to vote. </div><div id="a817" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:226px;">Indemnification </div><div id="a820" style="position:absolute;font-family:'Times New Roman';left:66px;top:257px;">Under the Restated Charter, the<div style="display:inline-block;width:2px">&#160;</div>Company will indemnify its directors<div style="display:inline-block;width:2px">&#160;</div>and officers to the fullest<div style="display:inline-block;width:2px">&#160;</div>extent authorized or permitted by </div><div id="a822" style="position:absolute;font-family:'Times New Roman';left:66px;top:272px;">the DGCL,<div style="display:inline-block;width:6px">&#160;</div>as now<div style="display:inline-block;width:6px">&#160;</div>or hereafter<div style="display:inline-block;width:6px">&#160;</div>in effect.<div style="display:inline-block;width:9px">&#160;</div>A director&#8217;s<div style="display:inline-block;width:5px">&#160;</div>right to<div style="display:inline-block;width:6px">&#160;</div>indemnification will<div style="display:inline-block;width:6px">&#160;</div>include the<div style="display:inline-block;width:6px">&#160;</div>right to<div style="display:inline-block;width:6px">&#160;</div>be paid<div style="display:inline-block;width:6px">&#160;</div>the expenses </div><div id="a824" style="position:absolute;font-family:'Times New Roman';left:66px;top:287px;">incurred in<div style="display:inline-block;width:5px">&#160;</div>defending or<div style="display:inline-block;width:5px">&#160;</div>otherwise participating<div style="display:inline-block;width:5px">&#160;</div>in any<div style="display:inline-block;width:5px">&#160;</div>proceeding in<div style="display:inline-block;width:5px">&#160;</div>advance of<div style="display:inline-block;width:5px">&#160;</div>its final<div style="display:inline-block;width:5px">&#160;</div>disposition, but<div style="display:inline-block;width:5px">&#160;</div>only if<div style="display:inline-block;width:5px">&#160;</div>that director </div><div id="a826" style="position:absolute;font-family:'Times New Roman';left:66px;top:303px;">presents to the<div style="display:inline-block;width:5px">&#160;</div>Company a written<div style="display:inline-block;width:5px">&#160;</div>undertaking to repay<div style="display:inline-block;width:5px">&#160;</div>that amount if<div style="display:inline-block;width:5px">&#160;</div>it shall ultimately<div style="display:inline-block;width:5px">&#160;</div>be determined that<div style="display:inline-block;width:5px">&#160;</div>the director is<div style="display:inline-block;width:5px">&#160;</div>not </div><div id="a828" style="position:absolute;font-family:'Times New Roman';left:66px;top:318px;">entitled to be indemnified.<div style="display:inline-block;width:3px">&#160;</div></div><div id="a831" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:349px;">Insurance </div><div id="a834" style="position:absolute;font-family:'Times New Roman';left:66px;top:379px;">Pursuant to the Restated Charter, the Company may purchase and maintain insurance on behalf of any<div style="display:inline-block;width:2px">&#160;</div>current or former director </div><div id="a836" style="position:absolute;font-family:'Times New Roman';left:66px;top:395px;">or officer against any liability asserted against that person to the fullest extent authorized or permitted by the DGCL. </div><div id="a839" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:425px;">Forum Selection </div><div id="a842" style="position:absolute;font-family:'Times New Roman';left:66px;top:456px;">The Restated Charter provides that,<div style="display:inline-block;width:5px">&#160;</div>unless a majority of the<div style="display:inline-block;width:5px">&#160;</div>Board, acting on behalf of<div style="display:inline-block;width:5px">&#160;</div>the Company, consents in 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style="display:inline-block;width:5px">&#160;</div>governed<div style="display:inline-block;width:5px">&#160;</div>by<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>internal<div style="display:inline-block;width:5px">&#160;</div>affairs<div style="display:inline-block;width:5px">&#160;</div>doctrine<div style="display:inline-block;width:5px">&#160;</div>of<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>State<div style="display:inline-block;width:5px">&#160;</div>of<div style="display:inline-block;width:5px">&#160;</div>Delaware<div style="display:inline-block;width:5px">&#160;</div>or<div style="display:inline-block;width:5px">&#160;</div>(v) any<div style="display:inline-block;width:5px">&#160;</div>other<div style="display:inline-block;width:5px">&#160;</div>action<div style="display:inline-block;width:5px">&#160;</div>asserting<div style="display:inline-block;width:5px">&#160;</div>an<div style="display:inline-block;width:5px">&#160;</div>&#8220;internal </div><div id="a868" style="position:absolute;font-family:'Times New Roman';left:66px;top:609px;">corporate claim,&#8221; as defined in Section 115 of<div style="display:inline-block;width:5px">&#160;</div>the DGCL, in all cases subject to<div style="display:inline-block;width:5px">&#160;</div>the court&#8217;s having personal jurisdiction over all </div><div id="a872" style="position:absolute;font-family:'Times New Roman';left:66px;top:625px;">indispensable parties named as defendants. </div><div id="a875" style="position:absolute;font-family:'Times New Roman';left:66px;top:655px;">The Restated Charter further provides that, unless a majority of the Board, acting on behalf of the Company, consents in writing </div><div id="a877" style="position:absolute;font-family:'Times New Roman';left:66px;top:671px;">to the selection of an alternative forum,<div style="display:inline-block;width:5px">&#160;</div>the federal district courts of the United States<div style="display:inline-block;width:5px">&#160;</div>of America will be the sole and exclusive </div><div id="a880" style="position:absolute;font-family:'Times New Roman';left:66px;top:686px;">forum for the resolution of any action asserting a cause of action arising under the Securities<div style="display:inline-block;width:2px">&#160;</div>Act. </div><div id="a883" style="position:absolute;font-family:'Times New Roman';left:66px;top:717px;">The foregoing description does not purport to be complete and is subject to, and qualified in its entirety by, the provisions of the </div><div id="a886" style="position:absolute;font-family:'Times New Roman';left:66px;top:732px;">Company&#8217;s Third Amended and<div style="display:inline-block;width:2px">&#160;</div>Restated Certificate of Incorporation, a copy of which is filed herewith as Exhibit 99.2. </div><div id="a891" style="position:absolute;font-family:'Times New Roman';font-weight:bold;font-style:italic;left:66px;top:763px;">Amended and Restated Bylaws </div><div id="a894" style="position:absolute;font-family:'Times New Roman';left:66px;top:793px;">As described in<div style="display:inline-block;width:2px">&#160;</div>Item 1.01, the<div style="display:inline-block;width:2px">&#160;</div>Restated Bylaws will<div style="display:inline-block;width:2px">&#160;</div>become effective when<div style="display:inline-block;width:2px">&#160;</div>the Restated Charter<div style="display:inline-block;width:2px">&#160;</div>becomes effective. The<div style="display:inline-block;width:2px">&#160;</div>Restated </div><div id="a896" style="position:absolute;font-family:'Times New Roman';left:66px;top:809px;">Bylaws contain changes that align<div style="display:inline-block;width:2px">&#160;</div>with the Restated Charter. In<div style="display:inline-block;width:2px">&#160;</div>addition, the Restated Bylaws provide<div style="display:inline-block;width:2px">&#160;</div>for the following changes, </div><div id="a898" style="position:absolute;font-family:'Times New Roman';left:66px;top:824px;">among others, to the Current Bylaws: </div><div id="a901" style="position:absolute;font-family:'Times New Roman';font-style:italic;left:66px;top:855px;">Advance Notice for Stockholder Proposals and Director Nominations </div><div id="a904" style="position:absolute;font-family:'Times New Roman';left:66px;top:885px;">The<div style="display:inline-block;width:5px">&#160;</div>Restated<div style="display:inline-block;width:5px">&#160;</div>Bylaws<div style="display:inline-block;width:5px">&#160;</div>establish<div style="display:inline-block;width:5px">&#160;</div>advance<div style="display:inline-block;width:5px">&#160;</div>notice<div style="display:inline-block;width:5px">&#160;</div>procedures<div style="display:inline-block;width:5px">&#160;</div>for<div style="display:inline-block;width:5px">&#160;</div>stockholder<div style="display:inline-block;width:5px">&#160;</div>proposals<div style="display:inline-block;width:5px">&#160;</div>to<div style="display:inline-block;width:5px">&#160;</div>be<div style="display:inline-block;width:5px">&#160;</div>brought<div style="display:inline-block;width:5px">&#160;</div>before<div style="display:inline-block;width:5px">&#160;</div>a<div style="display:inline-block;width:5px">&#160;</div>meeting<div style="display:inline-block;width:5px">&#160;</div>of<div style="display:inline-block;width:5px">&#160;</div>our </div><div id="a905" style="position:absolute;font-family:'Times New Roman';left:66px;top:901px;">stockholders, including<div style="display:inline-block;width:6px">&#160;</div>proposed nominations<div style="display:inline-block;width:6px">&#160;</div>of persons<div style="display:inline-block;width:6px">&#160;</div>for election<div style="display:inline-block;width:6px">&#160;</div>to the<div style="display:inline-block;width:6px">&#160;</div>Board.<div style="display:inline-block;width:8px">&#160;</div>At an<div style="display:inline-block;width:6px">&#160;</div>annual meeting,<div style="display:inline-block;width:6px">&#160;</div>stockholders may </div><div id="a906" style="position:absolute;font-family:'Times New Roman';left:66px;top:916px;">consider only<div style="display:inline-block;width:2px">&#160;</div>proposals or<div style="display:inline-block;width:2px">&#160;</div>nominations (i) specified<div style="display:inline-block;width:1px">&#160;</div>in the<div style="display:inline-block;width:2px">&#160;</div>notice of<div style="display:inline-block;width:2px">&#160;</div>the meeting<div style="display:inline-block;width:2px">&#160;</div>given at<div style="display:inline-block;width:2px">&#160;</div>the direction<div style="display:inline-block;width:2px">&#160;</div>of the<div style="display:inline-block;width:2px">&#160;</div>Board, or<div style="display:inline-block;width:2px">&#160;</div>as otherwise </div><div id="a911" style="position:absolute;font-family:'Times New Roman';left:66px;top:931px;">properly brought<div style="display:inline-block;width:2px">&#160;</div>before the meeting<div style="display:inline-block;width:1px">&#160;</div>at the direction<div style="display:inline-block;width:1px">&#160;</div>of the Board,<div style="display:inline-block;width:1px">&#160;</div>or (ii) submitted by<div style="display:inline-block;width:1px">&#160;</div>a stockholder<div style="display:inline-block;width:2px">&#160;</div>who is a<div style="display:inline-block;width:1px">&#160;</div>stockholder of<div style="display:inline-block;width:2px">&#160;</div>record </div><div id="a914" style="position:absolute;font-family:'Times New Roman';left:66px;top:947px;">at the time of<div style="display:inline-block;width:5px">&#160;</div>giving the notice provided<div style="display:inline-block;width:5px">&#160;</div>for in the Restated<div style="display:inline-block;width:5px">&#160;</div>Bylaws through the meeting<div style="display:inline-block;width:5px">&#160;</div>date, is entitled to<div style="display:inline-block;width:5px">&#160;</div>vote at the<div style="display:inline-block;width:5px">&#160;</div>meeting </div><div id="a917" style="position:absolute;font-family:'Times New Roman';left:66px;top:962px;">and complies with the advance notice procedures, including with respect to timing and content, set forth in the<div style="display:inline-block;width:2px">&#160;</div>Restated Bylaws.<div style="display:inline-block;width:7px">&#160;</div></div><div id="a920" style="position:absolute;font-family:'Times New Roman';left:66px;top:977px;">To be timely, stockholder notice of<div style="display:inline-block;width:2px">&#160;</div>proposals and nominations must be received<div style="display:inline-block;width:2px">&#160;</div>by the corporate secretary no later<div style="display:inline-block;width:2px">&#160;</div>than the close </div></div>
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<div id="a923" style="position:absolute;font-family:'Times New Roman';left:66px;top:57px;">of business on<div style="display:inline-block;width:5px">&#160;</div>the 90th day,<div style="display:inline-block;width:5px">&#160;</div>and no earlier<div style="display:inline-block;width:5px">&#160;</div>than the 120th<div style="display:inline-block;width:5px">&#160;</div>day, prior<div style="display:inline-block;width:5px">&#160;</div>to the first<div style="display:inline-block;width:5px">&#160;</div>anniversary of the<div style="display:inline-block;width:5px">&#160;</div>date of<div style="display:inline-block;width:5px">&#160;</div>the preceding year&#8217;s </div><div id="a925" style="position:absolute;font-family:'Times New Roman';left:66px;top:73px;">annual meeting (unless the meeting date is significantly shifted as provided in the Restated Bylaws). </div><div id="a928" style="position:absolute;font-family:'Times New Roman';left:66px;top:103px;">At a special meeting, stockholders may<div style="display:inline-block;width:5px">&#160;</div>consider only business brought before the meeting<div style="display:inline-block;width:5px">&#160;</div>pursuant to the Company&#8217;s notice of </div><div id="a929" style="position:absolute;font-family:'Times New Roman';left:66px;top:119px;">the meeting, and if the notice<div style="display:inline-block;width:2px">&#160;</div>includes director elections, nominations may<div style="display:inline-block;width:2px">&#160;</div>be made (i) at the direction of<div style="display:inline-block;width:2px">&#160;</div>the Board or (ii) by any </div><div id="a935" style="position:absolute;font-family:'Times New Roman';left:66px;top:134px;">stockholder who is a stockholder of record at the time of giving the notice provided for in<div style="display:inline-block;width:5px">&#160;</div>the Restated Bylaws through meeting </div><div id="a937" style="position:absolute;font-family:'Times New Roman';left:66px;top:149px;">date,<div style="display:inline-block;width:5px">&#160;</div>is entitled<div style="display:inline-block;width:6px">&#160;</div>to vote<div style="display:inline-block;width:6px">&#160;</div>at<div style="display:inline-block;width:5px">&#160;</div>the meeting<div style="display:inline-block;width:6px">&#160;</div>and on<div style="display:inline-block;width:6px">&#160;</div>the election,<div style="display:inline-block;width:6px">&#160;</div>and complies<div style="display:inline-block;width:6px">&#160;</div>with the<div style="display:inline-block;width:6px">&#160;</div>advance notice<div style="display:inline-block;width:6px">&#160;</div>procedures, including<div style="display:inline-block;width:6px">&#160;</div>with </div><div id="a939" style="position:absolute;font-family:'Times New Roman';left:66px;top:165px;">respect to timing<div style="display:inline-block;width:2px">&#160;</div>and content, set<div style="display:inline-block;width:2px">&#160;</div>forth in the<div style="display:inline-block;width:2px">&#160;</div>Restated Bylaws.<div style="display:inline-block;width:5px">&#160;</div>To be timely,<div style="display:inline-block;width:2px">&#160;</div>stockholder notice of<div style="display:inline-block;width:2px">&#160;</div>a nomination must<div style="display:inline-block;width:2px">&#160;</div>be received </div><div id="a941" style="position:absolute;font-family:'Times New Roman';left:66px;top:180px;">by the corporate secretary no earlier than the close of business on the 120th day prior<div style="display:inline-block;width:2px">&#160;</div>to the special meeting and no later than the </div><div id="a943" style="position:absolute;font-family:'Times New Roman';left:66px;top:195px;">close of<div style="display:inline-block;width:5px">&#160;</div>business on<div style="display:inline-block;width:5px">&#160;</div>the later<div style="display:inline-block;width:5px">&#160;</div>of (i) the<div style="display:inline-block;width:5px">&#160;</div>90th day<div style="display:inline-block;width:5px">&#160;</div>prior to<div style="display:inline-block;width:5px">&#160;</div>the meeting<div style="display:inline-block;width:5px">&#160;</div>and (ii) the<div style="display:inline-block;width:5px">&#160;</div>tenth day<div style="display:inline-block;width:5px">&#160;</div>following the<div style="display:inline-block;width:5px">&#160;</div>day on<div style="display:inline-block;width:5px">&#160;</div>which public </div><div id="a948" style="position:absolute;font-family:'Times New Roman';left:66px;top:211px;">disclosure of the date of the meeting is first made by the Company. </div><div id="a951" style="position:absolute;font-family:'Times New Roman';left:66px;top:241px;">In addition,<div style="display:inline-block;width:5px">&#160;</div>stockholders may<div style="display:inline-block;width:5px">&#160;</div>consider a<div 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Roman';left:66px;top:594px;">the Board. The independent directors<div style="display:inline-block;width:5px">&#160;</div>may remove or replace<div style="display:inline-block;width:5px">&#160;</div>the lead independent director<div style="display:inline-block;width:5px">&#160;</div>from such position at<div style="display:inline-block;width:5px">&#160;</div>any time with </div><div id="a998" style="position:absolute;font-family:'Times New Roman';left:66px;top:609px;">or without<div style="display:inline-block;width:2px">&#160;</div>cause by<div style="display:inline-block;width:2px">&#160;</div>the vote<div style="display:inline-block;width:2px">&#160;</div>of a<div style="display:inline-block;width:2px">&#160;</div>majority of<div style="display:inline-block;width:2px">&#160;</div>the independent<div style="display:inline-block;width:1px">&#160;</div>directors present<div style="display:inline-block;width:1px">&#160;</div>at a<div style="display:inline-block;width:2px">&#160;</div>duly convened<div style="display:inline-block;width:2px">&#160;</div>Board meeting.<div style="display:inline-block;width:4px">&#160;</div>The independent </div><div id="a1000" style="position:absolute;font-family:'Times New Roman';left:66px;top:625px;">directors shall periodically consider whether and, if<div style="display:inline-block;width:2px">&#160;</div>so, when to rotate the position of lead<div style="display:inline-block;width:2px">&#160;</div>independent director, and may appoint </div><div id="a1002" style="position:absolute;font-family:'Times New Roman';left:66px;top:640px;">a<div style="display:inline-block;width:5px">&#160;</div>lead<div style="display:inline-block;width:5px">&#160;</div>independent<div style="display:inline-block;width:5px">&#160;</div>director<div style="display:inline-block;width:5px">&#160;</div>for<div style="display:inline-block;width:5px">&#160;</div>a<div style="display:inline-block;width:5px">&#160;</div>specified<div style="display:inline-block;width:5px">&#160;</div>term,<div style="display:inline-block;width:5px">&#160;</div>which<div style="display:inline-block;width:5px">&#160;</div>may<div style="display:inline-block;width:5px">&#160;</div>be<div style="display:inline-block;width:5px">&#160;</div>renewed.<div style="display:inline-block;width:5px">&#160;</div>Pursuant<div style="display:inline-block;width:5px">&#160;</div>to<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>Restated<div style="display:inline-block;width:5px">&#160;</div>Bylaws,<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>independent </div><div id="a1004" style="position:absolute;font-family:'Times New Roman';left:66px;top:655px;">directors will appoint a lead independent director, effective as of the Restated Charter Effective Date. </div><div id="a1007" style="position:absolute;font-family:'Times New Roman';left:66px;top:686px;">The foregoing description does not purport to be complete and is subject to, and qualified in its entirety by, the provisions of the </div><div id="a1009" style="position:absolute;font-family:'Times New Roman';left:66px;top:701px;">Restated Bylaws, a copy of which is filed herewith as Exhibit 99.3. </div><div id="a1014" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:66px;top:732px;">Item 5.07 Submission of Matters to a Vote of Security Holders. </div><div id="a1022" style="position:absolute;font-family:'Times New Roman';left:66px;top:763px;">On February 25, 2025, the Board<div style="display:inline-block;width:7px">&#160;</div>approved the Transactions, including approving and declaring advisable the Restated Charter, </div><div id="a1027" style="position:absolute;font-family:'Times New Roman';left:66px;top:778px;">and<div style="display:inline-block;width:7px">&#160;</div>directing<div style="display:inline-block;width:7px">&#160;</div>that<div style="display:inline-block;width:7px">&#160;</div>it<div style="display:inline-block;width:7px">&#160;</div>be<div style="display:inline-block;width:7px">&#160;</div>submitted<div style="display:inline-block;width:7px">&#160;</div>for<div style="display:inline-block;width:7px">&#160;</div>stockholder<div style="display:inline-block;width:7px">&#160;</div>approval<div style="display:inline-block;width:7px">&#160;</div>by<div style="display:inline-block;width:7px">&#160;</div>the<div style="display:inline-block;width:7px">&#160;</div>majority<div style="display:inline-block;width:7px">&#160;</div>written<div style="display:inline-block;width:7px">&#160;</div>consent<div style="display:inline-block;width:7px">&#160;</div>of<div style="display:inline-block;width:7px">&#160;</div>stockholders.<div style="display:inline-block;width:13px">&#160;</div>Also<div 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</div><div id="a1036" style="position:absolute;font-family:'Times New Roman';left:66px;top:824px;">of<div style="display:inline-block;width:7px">&#160;</div>amendments<div style="display:inline-block;width:6px">&#160;</div>to<div style="display:inline-block;width:7px">&#160;</div>the<div style="display:inline-block;width:7px">&#160;</div>Current<div style="display:inline-block;width:7px">&#160;</div>Charter,<div style="display:inline-block;width:7px">&#160;</div>no<div style="display:inline-block;width:7px">&#160;</div>additional<div style="display:inline-block;width:7px">&#160;</div>stockholder<div style="display:inline-block;width:7px">&#160;</div>vote<div style="display:inline-block;width:7px">&#160;</div>will<div style="display:inline-block;width:7px">&#160;</div>be<div style="display:inline-block;width:7px">&#160;</div>needed<div style="display:inline-block;width:7px">&#160;</div>to<div style="display:inline-block;width:7px">&#160;</div>approve<div style="display:inline-block;width:7px">&#160;</div>the<div style="display:inline-block;width:7px">&#160;</div>Restated<div style="display:inline-block;width:7px">&#160;</div>Charter.<div style="display:inline-block;width:7px">&#160;</div></div><div id="a1039" style="position:absolute;font-family:'Times New Roman';left:66px;top:839px;">Consequently, the Company will not be soliciting proxies or holding a meeting of stockholders to consider the Restated Charter. </div><div id="a1043" style="position:absolute;font-family:'Times New Roman';left:66px;top:870px;">Pursuant to Section 228 of the DGCL, Article II, Section 11 of the Current Bylaws and Section 14(c) of the Securities<div style="display:inline-block;width:2px">&#160;</div>Exchange </div><div id="a1052" style="position:absolute;font-family:'Times New Roman';left:66px;top:885px;">Act<div style="display:inline-block;width:6px">&#160;</div>of<div style="display:inline-block;width:6px">&#160;</div>1934,<div style="display:inline-block;width:6px">&#160;</div>as<div style="display:inline-block;width:6px">&#160;</div>amended<div style="display:inline-block;width:6px">&#160;</div>(the<div style="display:inline-block;width:6px">&#160;</div>&#8220;Exchange Act&#8221;),<div style="display:inline-block;width:7px">&#160;</div>and<div style="display:inline-block;width:6px">&#160;</div>the<div style="display:inline-block;width:6px">&#160;</div>regulations<div style="display:inline-block;width:6px">&#160;</div>promulgated<div style="display:inline-block;width:6px">&#160;</div>thereunder,<div style="display:inline-block;width:6px">&#160;</div>including<div style="display:inline-block;width:6px">&#160;</div>Regulation<div style="display:inline-block;width:6px">&#160;</div>14C,<div style="display:inline-block;width:6px">&#160;</div>a </div><div id="a1055" style="position:absolute;font-family:'Times New Roman';left:66px;top:901px;">Schedule 14C Information Statement will be filed with the SEC<div style="display:inline-block;width:2px">&#160;</div>and sent or given to the stockholders of the Company to<div style="display:inline-block;width:2px">&#160;</div>provide </div><div id="a1057" style="position:absolute;font-family:'Times New Roman';left:66px;top:916px;">prompt notice of the taking<div style="display:inline-block;width:2px">&#160;</div>of a corporate action by<div style="display:inline-block;width:2px">&#160;</div>written consent of stockholders to<div style="display:inline-block;width:2px">&#160;</div>the Company&#8217;s stockholders who<div style="display:inline-block;width:2px">&#160;</div>have not </div><div id="a1059" style="position:absolute;font-family:'Times New Roman';left:66px;top:931px;">consented in writing to such action. </div></div>
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<div id="a1064" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:66px;top:57px;">Item 7.01 Regulation FD Disclosure. </div><div id="a1067" style="position:absolute;font-family:'Times New Roman';left:66px;top:88px;">The Company also announced on February 25, 2025 that its<div style="display:inline-block;width:5px">&#160;</div>Board has approved a new $500 million share repurchase program. </div><div id="a1071" style="position:absolute;font-family:'Times New Roman';left:66px;top:103px;">The share repurchase program authorizes<div style="display:inline-block;width:2px">&#160;</div>the Company, in management&#8217;s discretion,<div style="display:inline-block;width:2px">&#160;</div>to repurchase Common Shares from time<div style="display:inline-block;width:2px">&#160;</div>to </div><div id="a1072" style="position:absolute;font-family:'Times New Roman';left:66px;top:119px;">time for an aggregate purchase<div style="display:inline-block;width:5px">&#160;</div>price up to $500<div style="display:inline-block;width:5px">&#160;</div>million (exclusive of any fees,<div style="display:inline-block;width:5px">&#160;</div>taxes, commissions or other expenses related<div style="display:inline-block;width:5px">&#160;</div>to </div><div id="a1076" style="position:absolute;font-family:'Times New Roman';left:66px;top:134px;">such repurchases),<div style="display:inline-block;width:5px">&#160;</div>subject to<div style="display:inline-block;width:5px">&#160;</div>market conditions<div style="display:inline-block;width:5px">&#160;</div>and other<div style="display:inline-block;width:5px">&#160;</div>factors. The<div style="display:inline-block;width:5px">&#160;</div>actual timing,<div style="display:inline-block;width:5px">&#160;</div>number and<div style="display:inline-block;width:5px">&#160;</div>value of<div style="display:inline-block;width:5px">&#160;</div>shares repurchased </div><div id="a1077" style="position:absolute;font-family:'Times New Roman';left:66px;top:149px;">under the program will be<div style="display:inline-block;width:2px">&#160;</div>determined by management in its<div style="display:inline-block;width:2px">&#160;</div>discretion and will depend on<div style="display:inline-block;width:2px">&#160;</div>a number of factors, including,<div style="display:inline-block;width:2px">&#160;</div>but not </div><div id="a1079" style="position:absolute;font-family:'Times New Roman';left:66px;top:165px;">limited to, the market price of the Common Shares and general market and economic conditions. </div><div id="a1082" style="position:absolute;font-family:'Times New Roman';left:66px;top:195px;">The Company expects to strategically and opportunistically repurchase shares from time to time through solicited or unsolicited </div><div id="a1084" style="position:absolute;font-family:'Times New Roman';left:66px;top:211px;">transactions in the<div style="display:inline-block;width:5px">&#160;</div>open market, in<div style="display:inline-block;width:5px">&#160;</div>privately negotiated transactions<div style="display:inline-block;width:5px">&#160;</div>or by other<div style="display:inline-block;width:5px">&#160;</div>means in accordance<div style="display:inline-block;width:5px">&#160;</div>with securities laws.<div style="display:inline-block;width:5px">&#160;</div>It is </div><div id="a1087" style="position:absolute;font-family:'Times New Roman';left:66px;top:226px;">also possible<div style="display:inline-block;width:5px">&#160;</div>that the<div style="display:inline-block;width:5px">&#160;</div>Company could<div style="display:inline-block;width:5px">&#160;</div>use a<div style="display:inline-block;width:5px">&#160;</div>portion of<div style="display:inline-block;width:5px">&#160;</div>its new<div style="display:inline-block;width:5px">&#160;</div>share repurchase<div style="display:inline-block;width:5px">&#160;</div>program to<div style="display:inline-block;width:5px">&#160;</div>repurchase some<div style="display:inline-block;width:5px">&#160;</div>of the<div style="display:inline-block;width:5px">&#160;</div>Members&#8217; </div><div id="a1088" style="position:absolute;font-family:'Times New Roman';left:66px;top:241px;">Common Shares<div style="display:inline-block;width:6px">&#160;</div>as<div style="display:inline-block;width:5px">&#160;</div>part of<div style="display:inline-block;width:6px">&#160;</div>the Potential<div style="display:inline-block;width:6px">&#160;</div>Portfolio Diversification.<div style="display:inline-block;width:5px">&#160;</div>Any repurchases<div style="display:inline-block;width:6px">&#160;</div>from<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>Members would<div style="display:inline-block;width:6px">&#160;</div>require special </div><div id="a1089" style="position:absolute;font-family:'Times New Roman';left:66px;top:257px;">approval from the Special Committee. 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<div id="a1263" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:66px;top:57px;">Additional Information and Where to Find It </div><div id="a1266" style="position:absolute;font-family:'Times New Roman';left:66px;top:88px;">This<div style="display:inline-block;width:5px">&#160;</div>Current<div style="display:inline-block;width:5px">&#160;</div>Report<div style="display:inline-block;width:5px">&#160;</div>on<div style="display:inline-block;width:5px">&#160;</div>Form 8-K<div style="display:inline-block;width:5px">&#160;</div>is<div style="display:inline-block;width:5px">&#160;</div>being<div style="display:inline-block;width:5px">&#160;</div>made<div style="display:inline-block;width:5px">&#160;</div>in<div style="display:inline-block;width:5px">&#160;</div>respect<div style="display:inline-block;width:5px">&#160;</div>of<div style="display:inline-block;width:5px">&#160;</div>the Transactions<div style="display:inline-block;width:6px">&#160;</div>involving<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>Company<div style="display:inline-block;width:5px">&#160;</div>and<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>Stockholder </div><div id="a1271" style="position:absolute;font-family:'Times New Roman';left:66px;top:103px;">Parties.<div style="display:inline-block;width:10px">&#160;</div>Contemporaneously<div style="display:inline-block;width:5px">&#160;</div>with<div style="display:inline-block;width:5px">&#160;</div>the<div style="display:inline-block;width:5px">&#160;</div>filing<div style="display:inline-block;width:5px">&#160;</div>of<div style="display:inline-block;width:5px">&#160;</div>this<div style="display:inline-block;width:5px">&#160;</div>Current<div style="display:inline-block;width:5px">&#160;</div>Report<div 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id="a1276" style="position:absolute;font-family:'Times New Roman';left:66px;top:134px;">under the<div style="display:inline-block;width:6px">&#160;</div>Exchange Act.<div style="display:inline-block;width:9px">&#160;</div>When completed,<div style="display:inline-block;width:6px">&#160;</div>a definitive<div style="display:inline-block;width:6px">&#160;</div>Information Statement<div style="display:inline-block;width:5px">&#160;</div>will be<div style="display:inline-block;width:6px">&#160;</div>mailed or<div style="display:inline-block;width:6px">&#160;</div>delivered to<div style="display:inline-block;width:6px">&#160;</div>the Company&#8217;s </div><div id="a1277" style="position:absolute;font-family:'Times New Roman';left:66px;top:149px;">stockholders.<div style="display:inline-block;width:6px">&#160;</div>This Current<div style="display:inline-block;width:3px">&#160;</div>Report on Form 8-K is not a substitute for the Information Statement on Schedule 14C, or any other </div><div id="a1283" style="position:absolute;font-family:'Times New Roman';left:66px;top:165px;">document that the Company may file with the SEC or send to its stockholders in connection with the Transactions. </div><div id="a1286" style="position:absolute;font-family:'Times New Roman';left:66px;top:195px;">STOCKHOLDERS OF THE COMPANY<div style="display:inline-block;width:1px">&#160;</div>ARE URGED TO READ<div style="display:inline-block;width:1px">&#160;</div>ALL RELEVANT DOCUMENTS<div style="display:inline-block;width:2px">&#160;</div>FILED WITH THE SEC, </div><div id="a1287" style="position:absolute;font-family:'Times New Roman';left:66px;top:211px;">INCLUDING<div style="display:inline-block;width:7px">&#160;</div>THE<div style="display:inline-block;width:8px">&#160;</div>INFORMATION<div style="display:inline-block;width:8px">&#160;</div>STATEMENT<div style="display:inline-block;width:7px">&#160;</div>ON<div style="display:inline-block;width:8px">&#160;</div>SCHEDULE<div 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style="display:inline-block;width:2px">&#160;</div>may obtain copies<div style="display:inline-block;width:2px">&#160;</div>of all documents<div style="display:inline-block;width:2px">&#160;</div>filed by the<div style="display:inline-block;width:2px">&#160;</div>Company with the<div style="display:inline-block;width:2px">&#160;</div>SEC, free of<div style="display:inline-block;width:2px">&#160;</div>charge, at the<div style="display:inline-block;width:2px">&#160;</div>SEC&#8217;s </div><div id="a1295" style="position:absolute;font-family:'Times New Roman';left:66px;top:287px;">website,<div style="display:inline-block;width:6px">&#160;</div>www.sec.gov<div style="display:inline-block;width:6px">&#160;</div>or<div style="display:inline-block;width:6px">&#160;</div>from<div style="display:inline-block;width:6px">&#160;</div>the<div style="display:inline-block;width:6px">&#160;</div>Company&#8217;s<div style="display:inline-block;width:6px">&#160;</div>website<div style="display:inline-block;width:6px">&#160;</div>at<div style="display:inline-block;width:6px">&#160;</div>https://www.calmainefoods.com/sec-filings<div style="display:inline-block;width:6px">&#160;</div>or<div style="display:inline-block;width:6px">&#160;</div>by<div style="display:inline-block;width:6px">&#160;</div>contacting<div style="display:inline-block;width:6px">&#160;</div>the </div><div id="a1298" style="position:absolute;font-family:'Times New Roman';left:66px;top:303px;">Company&#8217;s Secretary in<div style="display:inline-block;width:5px">&#160;</div>writing or by<div style="display:inline-block;width:5px">&#160;</div>telephone at Cal-Maine<div style="display:inline-block;width:5px">&#160;</div>Foods, Inc., ATTN:<div style="display:inline-block;width:8px">&#160;</div>Max P. Bowman, Secretary,<div style="display:inline-block;width:5px">&#160;</div>1052 Highland </div><div id="a1304" style="position:absolute;font-family:'Times New Roman';left:66px;top:318px;">Colony Pkwy, Suite 200, Ridgeland, MS<div style="display:inline-block;width:6px">&#160;</div>39157, telephone number (601) 948-6813. </div><div id="a1309" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:66px;top:349px;">Item 9.01.<div style="display:inline-block;width:39px">&#160;</div>Financial Statements and Exhibits </div><div id="a1316" style="position:absolute;font-family:'Times New Roman';left:66px;top:379px;">(d)<div style="display:inline-block;width:7px">&#160;</div>Exhibits </div><div id="a1318" style="position:absolute;font-family:'Times New Roman';left:70px;top:395px;">Exhibit </div><div id="a1319" style="position:absolute;font-family:'Times New Roman';left:70px;top:410px;">Number </div><div id="a1322" style="position:absolute;font-family:'Times New Roman';left:195px;top:410px;">Description </div><div id="a1324" style="position:absolute;font-family:'Times New Roman';color:#0000FF;left:70px;top:427px;"><a href="exhibit991.htm" style="color:#0000FF;text-decoration:underline;">99.1</a></div><div id="a1327" style="position:absolute;font-family:'Times New Roman';color:#0000FF;left:195px;top:427px;"><a href="exhibit991.htm" style="color:#0000FF;text-decoration:underline;">Agreement<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>Regarding<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>Conversion<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>dated<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>February 25, 2025<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>by<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>and<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>among<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>Cal-Maine<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>Foods,<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>Inc., </a></div><div id="a1334" style="position:absolute;font-family:'Times New Roman';color:#0000FF;left:195px;top:442px;"><a href="exhibit991.htm" style="color:#0000FF;text-decoration:underline;">DLNL, LLC, and each member of DLNL, LLC</a></div><div id="a1336" style="position:absolute;font-family:'Times New Roman';color:#0000FF;left:70px;top:457px;"><a href="exhibit992.htm" style="color:#0000FF;text-decoration:underline;">99.2</a></div><div id="a1340" style="position:absolute;font-family:'Times New Roman';color:#0000FF;left:195px;top:457px;"><a href="exhibit992.htm" style="color:#0000FF;text-decoration:underline;">Third<span 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style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>Restated<span style="display:inline-block;width:6px;text-decoration:underline">&#160;</span>Charter </a></div><div id="a1341" style="position:absolute;font-family:'Times New Roman';color:#0000FF;left:195px;top:473px;"><a href="exhibit992.htm" style="color:#0000FF;text-decoration:underline;">Effective Date</a></div><div id="a1343" style="position:absolute;font-family:'Times New Roman';color:#0000FF;left:70px;top:488px;"><a href="exhibit993.htm" style="color:#0000FF;text-decoration:underline;">99.3</a></div><div id="a1347" style="position:absolute;font-family:'Times New Roman';color:#0000FF;left:195px;top:488px;"><a href="exhibit993.htm" style="color:#0000FF;text-decoration:underline;">Amended and Restated Bylaws to be effective on the Restated Charter Effective Date</a></div><div id="a1349" style="position:absolute;font-family:'Times New Roman';color:#0000FF;left:70px;top:503px;"><a href="exhibit994.htm" style="color:#0000FF;text-decoration:underline;">99.4</a></div><div id="a1353" style="position:absolute;font-family:'Times New Roman';color:#0000FF;left:195px;top:503px;"><a href="exhibit994.htm" style="color:#0000FF;text-decoration:underline;">Press Release issued by the Company on February 25, 2025</a></div><div id="a1359" style="position:absolute;font-family:'Times New Roman';left:70px;top:519px;">104 </div><div id="a1362" style="position:absolute;font-family:'Times New Roman';left:195px;top:519px;">Cover Page Interactive Data File (embedded within the Inline XBRL document) </div><div id="a1364" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:365px;top:549px;">SIGNATURES </div><div id="a1366" style="position:absolute;font-family:'Times New Roman';left:66px;top:565px;"><div style="display:inline-block;width:3px">&#160;</div></div><div id="a1368" style="position:absolute;font-family:'Times New Roman';left:66px;top:580px;">Pursuant to the requirements for<div style="display:inline-block;width:5px">&#160;</div>the Securities Exchange Act of 1934, the<div style="display:inline-block;width:5px">&#160;</div>registrant has duly caused this<div style="display:inline-block;width:5px">&#160;</div>report to be signed<div style="display:inline-block;width:5px">&#160;</div>on </div><div id="a1371" style="position:absolute;font-family:'Times New Roman';left:66px;top:595px;">its behalf by the undersigned hereunto duly authorized. </div><div id="a1374" style="position:absolute;font-family:'Times New Roman';left:66px;top:611px;"><div style="display:inline-block;width:3px">&#160;</div></div><div id="a1376" style="position:absolute;font-family:'Times New Roman';left:126px;top:611px;"><div style="display:inline-block;width:3px">&#160;</div></div><div id="a1378" style="position:absolute;font-family:'Times New Roman';left:425px;top:611px;"><div style="display:inline-block;width:3px">&#160;</div></div><div id="a1380" style="position:absolute;font-family:'Times New Roman';left:461px;top:611px;"><div style="display:inline-block;width:3px">&#160;</div></div><div id="a1383" style="position:absolute;font-family:'Times New Roman';left:126px;top:626px;"><div style="display:inline-block;width:3px">&#160;</div></div><div id="a1385" style="position:absolute;font-family:'Times New Roman';font-weight:bold;left:425px;top:626px;">CAL-MAINE FOODS, INC. </div><div id="a1393" style="position:absolute;font-family:'Times New Roman';left:70px;top:657px;">Date: </div><div id="a1395" style="position:absolute;font-family:'Times New Roman';left:126px;top:657px;">February 25, 2025 </div><div id="a1397" style="position:absolute;font-family:'Times New Roman';left:425px;top:657px;">By:<div style="display:inline-block;width:7px">&#160;</div></div><div id="a1400" style="position:absolute;font-family:'Times New Roman';left:461px;top:657px;">/s/ Max P. Bowman </div><div id="a1405" style="position:absolute;font-family:'Times New Roman';left:126px;top:689px;"><div style="display:inline-block;width:3px">&#160;</div></div><div id="a1407" style="position:absolute;font-family:'Times New Roman';left:461px;top:673px;">Max P. Bowman<div style="display:inline-block;width:3px">&#160;</div></div><div id="a1409" style="position:absolute;font-family:'Times New Roman';left:461px;top:689px;">Director, Vice President, and Chief Financial Officer </div></div>
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{"company-data": {"conformed-name": "CAL-MAINE FOODS INC", "cik": "0000016160", "assigned-sic": "0200", "organization-name": "08 Industrial Applications and Services", "irs-number": "640500378", "state-of-incorporation": "DE", "fiscal-year-end": "0531"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-38695", "film-number": "25664764"}, "business-address": {"street1": "1052 HIGHLAND COLONY PKWY", "street2": "SUITE 200", "city": "RIDGELAND", "state": "MS", "zip": "39157", "phone": "6019486813"}, "mail-address": {"street1": "1052 HIGHLAND COLONY PKWY", "street2": "SUITE 200", "city": "RIDGELAND", "state": "MS", "zip": "39157"}, "former-company": [{"former-conformed-name": "CAL MAINE FOODS INC", "date-changed": "19961018"}, {"former-conformed-name": "CHICKEN CHEF SYSTEMS INC", "date-changed": "19710315"}]}
8k20250225
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange
Act
Date of Report (Date of Earliest Event Reported):
February 25, 2025
Cal-Maine Foods, Inc.
(Exact name of registrant as specified in its charter)
Delaware
001-38695
64-0500378
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer Identification No.)
1052 Highland Colony Pkwy
,
Suite 200
,
Ridgeland
,
MS
39157
(Address of principal executive offices (zip code))
601
-
948-6813
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction
A.2 below):
☐
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value per share
CALM
The
NASDAQ
Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities
Act of
1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2
of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act.
☐
Item 1.01
Entry into a Material Definitive Agreement.
Background
Cal-Maine Foods, Inc. ("Cal-Maine Foods," the "Company," "we," "us" or "our")
has been controlled by members of the family
of our
founder, Fred
R. Adams, Jr.,
since its
founding and
since it
became a
public company.
In connection
with Mr. Adams'
estate planning
in 2018,
Mr. Adams' four daughters
and Adolphus B.
Baker, Chair
of the
Company's Board
of Directors
(the
"Board") and
Mr. Adams' son-in-law
(the "Members")
(and/or their
respective predecessors-in-interest),
took certain
actions,
including forming
DLNL, LLC,
a Delaware
limited liability
company ("Daughters' LLC" and
together with
the Members,
the
"Stockholder Parties"),
to enable
Mr. Adams' family to
continue to
own and
retain shares
of the
Company's Class A common
stock, $0.01 par
value per share
(the "Class A Shares"), and common
stock, $0.01 par
value per share
(the "Common Shares")
sufficient
to
maintain
majority
voting
control
of
the
Company
after
his
death
and
to
provide
for
the
long-term,
stable
and
consistent ownership and governance of the Company.
Mr. Adams passed away on March 29, 2020.
Daughters'
LLC holds 4,800,000 Class
A Shares,
representing 100% of the
outstanding Class A
Shares.
The Class
A Shares
have
ten votes per
share and are
convertible on a
share-for-share basis into
Common Shares, which
have one vote
per share.
Generally,
the Class A
Shares automatically convert to Common Shares upon transfer to persons not related to the family.
The outstanding Class
A Shares
currently represent approximately
52.0% of the Company's
total voting power.
In addition to the
Class A Shares, Daughters' LLC
also holds
1,087,956 Common Shares,
bringing the
total voting
power of
the shares
held by
Daughters' LLC to approximately
53.2%.
The Members have
informed the Board
that they are
potentially interested in
diversifying their respective
financial portfolios (the
"Potential Portfolio Diversification"), including through
the potential sale of
all or a portion
of the Common Shares
underlying
the Class
A Shares
held by Daughters'
LLC, as most
of them have
become more focused
on their individual
estate planning efforts
and philanthropic
endeavors.
The Potential
Portfolio Diversification
could result
in Daughters' LLC
ceasing to
have majority
voting control of the Company, which in turn would result in the Company ceasing
to be a "controlled company" pursuant to the
rules of The Nasdaq Stock Market. The Members indicated that they were willing to work with the Company towards achieving
a smooth
transition. Before
giving effect
to any
potential sales,
if Daughters'
LLC were
to convert
its Class A
Shares into
Common
Shares, Daughters' LLC's total voting
power would decline
from 53.2% to
12.0% of the
voting power of
the Company's then-
outstanding Common Shares. The Class A Conversion would have no impact
on the Daughters' LLC's economic interest in the
Company, which would remain at 12.0%.
As noted above, Mr. Baker has an interest in the Potential Portfolio Diversification
and, as a director, has an interest in certain of
the potential
actions by
the Company to
address the Potential
Portfolio Diversification.
Because Mr. Baker's interests
may be
different
from
the
interests
of
the
stockholders
generally,
the
Board
authorized
a
special
committee,
consisting
solely
of
disinterested
independent directors
(the "Special
Committee"), to
consider what
corporate actions,
if
any, should
be
taken to
address the impact of the Potential Portfolio Diversification on the Company and its stockholders.
The Special Committee, among other things,
considered and determined that it was
in the best interests of
the Company and its
stockholders for the Company
to facilitate the Members'
sale of their Common
Shares, including the Common
Shares underlying
their Class A Shares, and manage the
loss of controlled company
status, in each
case, in an orderly
manner in compliance with
legal requirements.
On February 24, 2025,
the Special Committee
unanimously recommended to
the Board, and,
on February 25,
2025, the
Board
approved the
Agreement Regarding Conversion
(the "Conversion
Agreement"), by and among
the Company and the
Stockholder
Parties, including the documents contemplated
by that agreement, which include:
(i) the Third
Amended and Restated Certificate
of Incorporation of the Company ("Restated Charter"),
to become effective upon filing with the
Delaware Secretary of State (the
"Restated
Charter
Effective
Date"),
(ii) the Amended
and
Restated
Bylaws of
the
Company
("Restated
Bylaws"), to
become
effective
on
the Restated
Charter
Effective Date,
and
(iii) an
amendment and
restatement of
the
Daughters' LLC's
operating
agreement
to
permit
Daughters' LLC
to
take
the
actions
provided
for
in
the
Conversion Agreement
(the
"Daughters' LLC
Amendment").
The Conversion
Agreement, including
the documents
contemplated by
that agreement,
are referred
to collectively
as the
"Transactions."
At the
meeting at
which the
Board approved
the Conversion Agreement,
the Board
also unanimously
approved and declared advisable the Restated Charter, and directed that it be submitted for stockholder approval by the majority
written consent of stockholders.
Thereafter, on February 25, 2025, the Conversion Agreement was
executed and delivered by
the Company and the
Stockholder
Parties, and Daughters' LLC executed and delivered the majority written consent in lieu of a meeting of stockholders approving
the Restated Charter (the
"Majority Written Consent")
in accordance with Section 228
of the Delaware General
Corporation Law
(the "DGCL").
As requested by the
Board, Mr. Baker
plans to continue to
serve as Board
Chair at least until
the Company's 2027 annual
meeting
of stockholders.
Contemporaneously with
the filing
of this
Current Report
on Form
8-K, the
Company is
also filing
a preliminary
Information
Statement with the U.S. Securities and Exchange Commission ("SEC") regarding the Restated Charter and related matters.
The
Restated Charter will become effective upon filing with the Secretary
of State of the State of Delaware (the "Delaware Secretary
of State"),
which the
Company expects
to occur
on or
promptly after
the 20th
calendar day
following the
distribution of
the
definitive Information Statement to stockholders.
Because the Restated Charter
has been approved by
the Board and by
the stockholder vote required
by law, the Company
will not
be soliciting proxies or holding a meeting of stockholders to consider the Restated Charter.
Agreement Regarding Conversion
The Conversion Agreement provides for the following:
●
The approval by the Board, and approval by
Daughters' LLC
by majority written consent, of the Restated Charter,
to be
effective upon the Restated Charter Effective Date;
●
The approval
by the
Board of
the Restated
Bylaws, which
include provisions
that align
with the
Restated Charter,
to
become effective on the Restated Charter Effective Date;
●
The agreement by the Stockholder Parties not to convert any Class A Shares into Common Shares prior to the Restated
Charter Effective Date;
●
The agreement by the Stockholder Parties that if
Daughters' LLC converts any Class A
Shares into Common Shares, it
will simultaneously convert all (but not less than all) Class
A Shares into Common Shares (the "Class A
Conversion");
●
After
the
effective
date
of
the
Class A
Conversion
(the
"Class A
Conversion
Date"),
and
ending
on
the
12-month
anniversary of
the Class
A
Conversion Date
(or, if
earlier, December 31, 2026),
certain registration
rights of
the Members
to offer or sell Common Shares in a registered offering under the Securities
Act; and
●
The adoption by the
Stockholder Parties of an
amended and restated limited
liability company operating agreement of
Daughters' LLC, which provides for
certain changes to
permit Daughters' LLC to take
the actions provided
for in the
Conversion Agreement.
The Conversion Agreement
also provides
that, prior
to the
expiration of
the registration
rights, each
Stockholder Party
agrees
(i) to cause all
Common Shares and
Class A Shares held by such
Stockholder Party (or
over which such
Stockholder Party has
voting discretion or
control as of
the applicable record
date) to be
present either in
person or by
proxy for quorum
purposes at
any stockholders' meeting at which
directors of the
Company are elected,
and (ii) to vote,
or cause to
be voted, such
Common
Shares and Class A Shares held by it (or over which such Stockholder Party has voting discretion or control) in favor of not less
than three independent directors.
The Transactions do not
require any Stockholder
Party to convert
Class A Common Shares into Common
Shares or to
sell any
Common Shares.
As noted above, the registration rights provided to the Members pursuant to the Conversion
Agreement expire
on the 12-month anniversary of the Class A
Conversion Date (or, if earlier, December 31, 2026).
The foregoing description does not purport to be complete and is subject to, and qualified in its entirety by, the provisions of the
Conversion Agreement, a copy of which is filed herewith
as Exhibit 99.1.
Item 1.02
Termination of a Material Definitive Agreement.
Pursuant
to the
Conversion Agreement,
that certain
Agreement Regarding
Common Stock,
dated as
of
July 20, 2018,
by
and
among the Company and
the Members, among others,
which is filed as
Exhibit 10.1 to the Company's
annual report on Form 10-
K
for
the
fiscal
year
ended
June 1, 2024,
terminated
on
February 25, 2025,
upon
execution
and
delivery
of
the
Conversion
Agreement.
Item 5.01 Changes in Control of Registrant.
(a)
The Company has not experienced a change of control.
(b)
As
described
in
Item 1.01,
if
the
Class A Conversion
occurs,
Daughters' LLC
will
no
longer
control
a
majority
of
the
Company's total voting power, and the
Company would no longer be a
"controlled company" under the rules
of The Nasdaq
Stock Market.
As described in
Item 1.01, the Conversion Agreement does
not require Daughters' LLC to
convert its Class A Shares
or to sell
any shares of
the Company.
Therefore, there can be
no assurance that the
Class A Conversion will occur or,
if so, when it
will
occur. However, even if the
Class A Conversion occurs, it would represent a dissipation of control, not a
"change of control" in
the traditional sense because no other third party would be acquiring control. For example, the Class
A Conversion would not be
considered a "change of control" for purposes of the Company's incentive plan or outstanding equity grants.
The
description
of
the
Conversion Agreement
and
the
documents
contemplated
by
that
agreement
set
forth
in
Item 1.01
is
incorporated by reference into this Item 5.01.
Item 5.03 Amendments to
Articles of Incorporation or Bylaws; Change in Fiscal Year.
Third Amended and Restated Certificate of Incorporation
As described in
Item 1.01, the
Restated Charter will
become effective upon
filing with the
Delaware Secretary of
State, which
the Company expects to occur on or promptly after the 20th calendar day following the distribution
of the definitive Information
Statement to
stockholders. The Restated
Charter provides for
the following
changes, among others,
to the
Company's existing
Second Amended and Restated Certificate of Incorporation,
as amended (the "Current Charter"):
Authorization of Undesignated Preferred Stock
Under the Restated
Charter, the Board
will have the
authority, without further
action by the
stockholders, to authorize
the issuance
by the Company of up to 10,000,000 shares of preferred stock, $0.01 par value per share (the "Preferred Stock"), in one or more
series and to fix the rights, preferences,
privileges
and restrictions granted to or imposed
upon the Preferred Stock.
Any or all of
these rights may be greater than the rights of our Common Shares or Class
A Shares. Under the Current Charter, the Company
is
not authorized to issue preferred stock.
Classified Board
The Restated Charter
provides for classification
of the Board,
pursuant to which
directors will be
divided into three
classes, as
nearly equal
in number
as possible.
The directors
in Class I
will each
have a
term expiring
at the
first annual
meeting of
the
stockholders following the effectiveness of
the Restated Charter.
The directors in Class II will
each have a term expiring
at the
second annual
meeting of
the stockholders
following the
effectiveness of
the Restated
Charter.
The directors
in Class III
will
each have a term expiring at the third annual meeting of stockholders following the effectiveness of the Restated Charter.
At each annual
meeting of stockholders
of the Company
beginning with the
first annual meeting
of stockholders following
the
effectiveness of the Restated Charter,
subject to any rights of
the holders of shares of
any class or series of
Preferred Stock, the
successors of
the directors
whose term
expires at
that meeting
shall be
elected to
hold office
for a
term expiring
at the
annual
meeting of stockholders held
in the third year
following the year of
their election and will
hold office until
their successors are
duly elected and
qualified, subject to
such director's earlier
death, resignation or
removal.
In the case
of any increase
or decrease,
from time to time,
in the number of
directors of the Company,
the number of directors
in each class shall
be apportioned as nearly
equal as possible.
No decrease in the number of directors shall shorten the term of any incumbent director.
Upon the effective date of the Restated Charter, the Board will be classified into three classes, and it is expected
that the current
directors will be apportioned into the three classes as provided below:
Class
Directors
Class I
(terms expiring at the 2025 Annual Meeting)
Sherman L. Miller and Camille S.
Young
Class II
(terms expiring at the 2026 Annual Meeting)
Max P. Bowman and Letitia C. Hughes
Class III
(terms expiring at the 2027 Annual Meeting)
Adolphus B.
Baker, Steve W.
Sanders and James E.
Poole
Pursuant to the Current
Charter, the Board is not
classified, and directors are elected
at each annual meeting to
serve for a term
of one year and until their successors are duly elected and qualified.
No Cumulative Voting in Director Elections
Under the Restated Charter, cumulative voting in director elections will not be permitted. Cumulative voting,
which is permitted
by the
Current Charter,
is a
process for
electing directors
that permits
each stockholder
to cast
a number
of votes
equal to
the
number of
Board seats
up for
election, multiplied
by the
number of
votes attributable
to the
Company Shares
the stockholder
owns. Those votes can then be allocated by the stockholder disproportionately to one or more candidates.
Removal of Directors by Stockholders Only for Cause
Under the
Restated Charter,
subject to
the rights
of holders
of any
series of
Preferred Stock
with respect
to the
election of
directors,
a director may be removed
from office by the stockholders
of the Company only for
cause and only by the
affirmative vote of the
holders of at least a majority
of the voting power of
all then outstanding shares of capital stock
of the Company entitled to vote
generally in the election of directors, voting together as a single class. The DGCL permits corporations with classified boards to
include this
provision in
their charters.
The Current
Charter and
the Company's
existing Amended
and Restated
Bylaws (the
"Current Bylaws")
are silent
with regard
to the
removal of
directors, and
therefore, pursuant
to the
DGCL, directors
may be
removed, with or without cause, by the holders of a majority of the voting power.
Vacancies and Newly Created Directorships
The Restated Charter provides that, subject
to the rights of holders of any
series of Preferred Stock with respect
to the election of
directors, vacancies
occurring on
the Board
for any
reason and
newly created
directorships resulting
from an
increase in
the
number of directors
may be filled
only by vote
of a majority
of the remaining
members of the
Board, although less
than a quorum,
or by a sole remaining director, at any meeting of the Board and
not by the stockholders.
A person so elected by the
Board to fill
a vacancy or newly
created directorship shall hold
office until the next
election of the class
for which such person
shall have been
assigned by the Board and until such person's successor shall be duly elected and qualified or until such director's
earlier death,
resignation or removal.
The Current Bylaws
contain a similar
provision, but do
not restrict the
power to fill
vacancies to the
Board
and do not address vacancies occurring in a class of directors, as under the Current Charter the Board is not classified.
Amendments to Charter
Pursuant to
the Restated
Charter, any
amendment to
the Restated
Charter will
require the
affirmative vote
of the
holders of
at
least 66
2
/
3
% of the voting
power of all then outstanding
shares of capital stock of
the Company entitled to vote
generally in the
election of directors, voting together as a single class.
In addition, so long as any Class A Shares are outstanding, the Company
may not, without first obtaining the approval by vote or written consent in the manner provided by law of the holders of not less
than
66
2
/
3
%
of
the
total
number
of
Class A Shares
outstanding,
voting
separately
as
a
class,
(i) alter
or
change
the
rights
or
privileges of
Class A Shares, (ii) amend any
provision of the
section of the
Restated Charter designating
the special rights
and
privileges
of
the
Class
A
Shares
affecting
the
Class
A
Shares
or
(3) effect
any
re-classification
or
re-capitalization
of
the
Company's outstanding capital stock.
The
Current
Charter
contains
the
same
provisions
with
respect
to
the
special
voting
rights
of
the
Class A
Shares
described
immediately above. The Current Charter is otherwise silent with respect to
amendments; therefore, under the DGCL, except for
such special voting rights of the Class A
Shares, or as may otherwise be required by law, the Current Charter can be amended by
the approval of a
majority in voting interest
of the Common Shares
and Class A Shares issued and outstanding, voting together
as a group.
Amendments to Bylaws
Under the Restated Charter,
the bylaws of the
Company then in effect
may be amended by
the Board or the
affirmative vote of
the holders of at least 66
2
/
3
% of the voting power of all then outstanding
shares of capital stock of the Company entitled to vote
generally in the election of directors, voting together as a single class.
The Current Charter provides that the Board is authorized to amend the Company's
bylaws, and the Current Bylaws provide that
they may be amended by the
Board or by the stockholders by
the vote of the holders of
a majority in voting interest of
the capital
stock having voting power present in person or represented by proxy.
Stockholder Action by Written Consent
The Restated Charter specifically denies the
ability of stockholders to act by
written consent. The Current Charter is silent
with
respect to
the ability
of
stockholders to
act by
written consent;
therefore, under
the DGCL,
stockholder action
may be
taken
without a meeting, without prior notice
and without a vote, if a consent
or consents, setting forth the action so
taken, is signed by
the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take
such action at a meeting at which all shares entitled to vote thereon were present and voted.
Special Meetings of Stockholders
The Restated
Charter provides
that special
stockholder meetings
may be
called at
any time
only by
the Board
Chair or
by the
Board.
The ability of stockholders to call special stockholder meetings is specifically denied. The Current Charter is silent with
respect to calling special stockholder meetings, and the Current Bylaws provide that special stockholder meetings may be called
by the Board
Chair, chief executive
officer, president, a
majority of the
Board, or by
stockholders owning a
majority in voting
interest of the entire capital stock of the Company issued and outstanding and entitled to vote.
Indemnification
Under the Restated Charter, the
Company will indemnify its directors
and officers to the fullest
extent authorized or permitted by
the DGCL,
as now
or hereafter
in effect.
A director's
right to
indemnification will
include the
right to
be paid
the expenses
incurred in
defending or
otherwise participating
in any
proceeding in
advance of
its final
disposition, but
only if
that director
presents to the
Company a written
undertaking to repay
that amount if
it shall ultimately
be determined that
the director is
not
entitled to be indemnified.
Insurance
Pursuant to the Restated Charter, the Company may purchase and maintain insurance on behalf of any
current or former director
or officer against any liability asserted against that person to the fullest extent authorized or permitted by the DGCL.
Forum Selection
The Restated Charter provides that,
unless a majority of the
Board, acting on behalf of
the Company, consents in writing
to the
selection of
an alternative
forum, the
Court of
Chancery of
the State
of Delaware
(or, if
the Court
of Chancery
does not
have
jurisdiction, another state court located within the State of
Delaware or, if no state court located within the State of Delaware
has
jurisdiction, the
federal district
court for
the District
of Delaware),
will be
the sole
and exclusive
forum for
(i) any derivative
action or
proceeding brought
on behalf
of the
Company under
Delaware law,
(ii) any action
asserting a
claim of
breach of
a
fiduciary
duty
owed
by
any
current
or
former
director,
officer
or
other
employee
of
the
Company
to
the
Company
or
the
Company's stockholders,
(iii) any action
asserting a
claim against
the Company
or any
of its directors,
officers or other
employees
arising pursuant to
any provision of
the DGCL, the
Company's certificate of
incorporation or bylaws
(in each
case, as may
be
amended
from
time
to
time),
(iv) any
action
asserting
a
claim
against
the
Company
or
any
of
its
directors,
officers
or
other
employees
governed
by
the
internal
affairs
doctrine
of
the
State
of
Delaware
or
(v) any
other
action
asserting
an
"internal
corporate claim," as defined in Section 115 of
the DGCL, in all cases subject to
the court's having personal jurisdiction over all
indispensable parties named as defendants.
The Restated Charter further provides that, unless a majority of the Board, acting on behalf of the Company, consents in writing
to the selection of an alternative forum,
the federal district courts of the United States
of America will be the sole and exclusive
forum for the resolution of any action asserting a cause of action arising under the Securities
Act.
The foregoing description does not purport to be complete and is subject to, and qualified in its entirety by, the provisions of the
Company's Third Amended and
Restated Certificate of Incorporation, a copy of which is filed herewith as Exhibit 99.2.
Amended and Restated Bylaws
As described in
Item 1.01, the
Restated Bylaws will
become effective when
the Restated Charter
becomes effective. The
Restated
Bylaws contain changes that align
with the Restated Charter. In
addition, the Restated Bylaws provide
for the following changes,
among others, to the Current Bylaws:
Advance Notice for Stockholder Proposals and Director Nominations
The
Restated
Bylaws
establish
advance
notice
procedures
for
stockholder
proposals
to
be
brought
before
a
meeting
of
our
stockholders, including
proposed nominations
of persons
for election
to the
Board.
At an
annual meeting,
stockholders may
consider only
proposals or
nominations (i) specified
in the
notice of
the meeting
given at
the direction
of the
Board, or
as otherwise
properly brought
before the meeting
at the direction
of the Board,
or (ii) submitted by
a stockholder
who is a
stockholder of
record
at the time of
giving the notice provided
for in the Restated
Bylaws through the meeting
date, is entitled to
vote at the
meeting
and complies with the advance notice procedures, including with respect to timing and content, set forth in the
Restated Bylaws.
To be timely, stockholder notice of
proposals and nominations must be received
by the corporate secretary no later
than the close
of business on
the 90th day,
and no earlier
than the 120th
day, prior
to the first
anniversary of the
date of
the preceding year's
annual meeting (unless the meeting date is significantly shifted as provided in the Restated Bylaws).
At a special meeting, stockholders may
consider only business brought before the meeting
pursuant to the Company's notice of
the meeting, and if the notice
includes director elections, nominations may
be made (i) at the direction of
the Board or (ii) by any
stockholder who is a stockholder of record at the time of giving the notice provided for in
the Restated Bylaws through meeting
date,
is entitled
to vote
at
the meeting
and on
the election,
and complies
with the
advance notice
procedures, including
with
respect to timing
and content, set
forth in the
Restated Bylaws.
To be timely,
stockholder notice of
a nomination must
be received
by the corporate secretary no earlier than the close of business on the 120th day prior
to the special meeting and no later than the
close of
business on
the later
of (i) the
90th day
prior to
the meeting
and (ii) the
tenth day
following the
day on
which public
disclosure of the date of the meeting is first made by the Company.
In addition,
stockholders may
consider a
stockholder proposal
included in
the Company's
proxy materials
in compliance
with
Rule 14a-8 under the Exchange Act.
All proposals and nominations must also comply with all applicable legal requirements.
Director Eligibility
Under the Restated Bylaws, no person will be eligible for election as a director unless he or she has, within ten days following a
reasonable request, made himself or herself available to be interviewed by the Board (or any committee or other subset thereof).
Conduct of Meetings
Under the Restated Bylaws,
the Board Chair (or,
in his or
her absence, a
director or officer
appointed by the
Board) will act as
the chairperson of stockholder meetings.
The Board and the chairperson
of a stockholder meeting may
adopt rules, regulations
and procedures for the conduct of
that meeting, and the chairperson will
have the authority to convene and (for
any or no reason)
recess or adjourn that meeting.
Lead Independent Director
Pursuant to
the Restated Bylaws,
if the
Board Chair does
not qualify
as independent, the
independent directors shall
appoint a
lead independent director.
The lead independent director,
if any, shall
preside at all
executive sessions of
the Board, serve as
a
liaison to the
Chief Executive Officer
and other directors
not present at
executive sessions of
the Board regarding
topics discussed
in executive
session or
other matters
as may
be raised
from time
to time
by one
or more
independent directors, work
with the
Board Chair
and other
directors to
determine agenda
items for
Board meetings,
have the
power to
call meetings
of the independent
directors, and have such
other responsibilities, and perform
such duties, as may
from time to time
be assigned to him
or her by
the Board. The independent directors
may remove or replace
the lead independent director
from such position at
any time with
or without
cause by
the vote
of a
majority of
the independent
directors present
at a
duly convened
Board meeting.
The independent
directors shall periodically consider whether and, if
so, when to rotate the position of lead
independent director, and may appoint
a
lead
independent
director
for
a
specified
term,
which
may
be
renewed.
Pursuant
to
the
Restated
Bylaws,
the
independent
directors will appoint a lead independent director, effective as of the Restated Charter Effective Date.
The foregoing description does not purport to be complete and is subject to, and qualified in its entirety by, the provisions of the
Restated Bylaws, a copy of which is filed herewith as Exhibit 99.3.
Item 5.07 Submission of Matters to a Vote of Security Holders.
On February 25, 2025, the Board
approved the Transactions, including approving and declaring advisable the Restated Charter,
and
directing
that
it
be
submitted
for
stockholder
approval
by
the
majority
written
consent
of
stockholders.
Also
on
February 25, 2025, Daughters'
LLC delivered
the Majority
Written
Consent to
the
Company approving
the Restated
Charter.
Because the Majority Written Consent is sufficient to satisfy the stockholder vote requirement under the DGCL for the approval
of
amendments
to
the
Current
Charter,
no
additional
stockholder
vote
will
be
needed
to
approve
the
Restated
Charter.
Consequently, the Company will not be soliciting proxies or holding a meeting of stockholders to consider the Restated Charter.
Pursuant to Section 228 of the DGCL, Article II, Section 11 of the Current Bylaws and Section 14(c) of the Securities
Exchange
Act
of
1934,
as
amended
(the
"Exchange Act"),
and
the
regulations
promulgated
thereunder,
including
Regulation
14C,
a
Schedule 14C Information Statement will be filed with the SEC
and sent or given to the stockholders of the Company to
provide
prompt notice of the taking
of a corporate action by
written consent of stockholders to
the Company's stockholders who
have not
consented in writing to such action.
Item 7.01 Regulation FD Disclosure.
The Company also announced on February 25, 2025 that its
Board has approved a new $500 million share repurchase program.
The share repurchase program authorizes
the Company, in management's discretion,
to repurchase Common Shares from time
to
time for an aggregate purchase
price up to $500
million (exclusive of any fees,
taxes, commissions or other expenses related
to
such repurchases),
subject to
market conditions
and other
factors. The
actual timing,
number and
value of
shares repurchased
under the program will be
determined by management in its
discretion and will depend on
a number of factors, including,
but not
limited to, the market price of the Common Shares and general market and economic conditions.
The Company expects to strategically and opportunistically repurchase shares from time to time through solicited or unsolicited
transactions in the
open market, in
privately negotiated transactions
or by other
means in accordance
with securities laws.
It is
also possible
that the
Company could
use a
portion of
its new
share repurchase
program to
repurchase some
of the
Members'
Common Shares
as
part of
the Potential
Portfolio Diversification.
Any repurchases
from
the
Members would
require special
approval from the Special Committee. The Company expects that share repurchases under the program will be funded from one
or a
combination of
existing cash
balances and
future free
cash flow.
The share
repurchase program
does not
obligate the
Company
to repurchase any specific amount of shares, does not
have an expiration date, and may be suspended, modified
or discontinued
at any time without prior notice.
Cal-Maine
Foods
issued
a
press
release,
dated
February 25,
2025,
titled
"Cal-Maine
Foods,
Inc. Announces Agreement
with
Company's Founder's Family and Also Announces New $500 Million Share
Repurchase Program." A copy of the press release
is furnished herewith as Exhibit 99.4 and is incorporated herein by reference.
The information included
in this Item 7.01,
including Exhibit 99.4 furnished
herewith, is being
furnished and shall
not be deemed
to be
filed for purposes
of Section 18 of
the Exchange Act, or
otherwise subject to
the liabilities of
that section, nor
shall it be
deemed incorporated by reference into
any filing under the Securities Act of
1933, as amended, or
the Exchange Act, except as
shall be expressly set forth by specific reference in such filing.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain statements contained in this Current Report on Form 8-K may contain "forward-looking statements" within
the meaning
of Section 27A
of the
Securities
Act of
1933, as
amended, and
Section 21E of
the Exchange
Act.
Such forward-looking
statements
are
identified
by
the
use
of
words
such
as
"believes,"
"intends,"
"expects,"
"hopes,"
"may,"
"should,"
"plans,"
"projected,"
"contemplates," "anticipates," or
similar words.
Actual outcomes or
results could differ
materially from those
projected in the
forward-looking statements.
The forward-looking
statements are
based on
management's current
intent, belief,
expectations,
estimates, and projections
regarding the Company
and its industry.
These statements are
not guarantees of
future performance
and involve risks, uncertainties, assumptions, and other
factors that are difficult to predict
and may be beyond our
control.
The
factors that could cause actual results to differ materially from those projected in
the forward-looking statements include, among
others,
(i) the
risk
factors
set
forth
in
Part I
Item 1A
Risk
Factors
of
our Annual
Report
on
Form 10-K
for
the
year
ended
June 1, 2024, as well as those included in other reports we file from time to time with the SEC (including our Quarterly Reports
on Form 10-Q and Current
Reports on Form 8-K), (ii) the
occurrence of any event,
change or other circumstances
that could give
rise to the Board's decision to abandon
the Restated Charter or to the termination
of the Conversion Agreement,
(iii) the effect of
the announcement of the Conversion Agreement on the Common Shares' trading price, the ability of the Company to retain and
hire
key
personnel
and
maintain
relationships
with
its
customers
and
suppliers,
and
on
the
Company's
operating
results
and
business generally, (iv) the impact on the Common Shares' trading price of the sale or marketing, or potential sale or marketing,
of a significant number of
Common Shares as part of the
family's portfolio diversification, (v) the risks and
hazards inherent in
the shell egg business (including disease, pests, weather conditions, and potential
for product recall), including but not limited to
the current outbreak
of HPAI affecting
poultry in the
U.S., Canada and
other countries that
was first detected
in commercial flocks
in the
U.S. in
February 2022 and
that first
impacted our
flocks in
December 2023, (vi) changes
in the
demand for
and market
prices of shell eggs and
feed costs, (vii) our ability
to predict and meet
demand for cage-free and
other specialty eggs, (viii) risks,
changes, or obligations
that could result
from our recent
or future acquisition
of new flocks
or businesses and
risks or changes
that may cause conditions
to completing a pending
acquisition not to
be met, (ix) risks relating
to changes in
inflation and interest
rates, (x) our
ability to
retain existing
customers, acquire
new customers
and grow
our product
mix, (xi) adverse
results in
pending
litigation matters, and (xii) global
instability, including as a
result of the war
in Ukraine, the conflicts
in Israel and surrounding
areas and attacks on shipping in the
Red Sea.
Readers are cautioned not to place undue
reliance on forward-looking statements
because, while we
believe the assumptions
on which
the forward-looking statements
are based are
reasonable, there can
be no
assurance that these forward-looking statements will prove
to be accurate.
Further, forward-looking statements included herein
are only made as
of the respective dates
thereof, or if no
date is stated, as
of the date hereof.
Except as otherwise required
by law,
we disclaim any intent
or obligation to update publicly
these forward-looking statements, whether because
of new information,
future events, or otherwise.
Additional Information and Where to Find It
This
Current
Report
on
Form 8-K
is
being
made
in
respect
of
the Transactions
involving
the
Company
and
the
Stockholder
Parties.
Contemporaneously
with
the
filing
of
this
Current
Report
on
Form
8-K,
the
Company
is
also
filing
a
preliminary
Information Statement, containing the
information with respect to
the Restated Charter specified
in Schedule 14C promulgated
under the
Exchange Act.
When completed,
a definitive
Information Statement
will be
mailed or
delivered to
the Company's
stockholders.
This Current
Report on Form 8-K is not a substitute for the Information Statement on Schedule 14C, or any other
document that the Company may file with the SEC or send to its stockholders in connection with the Transactions.
STOCKHOLDERS OF THE COMPANY
ARE URGED TO READ
ALL RELEVANT DOCUMENTS
FILED WITH THE SEC,
INCLUDING
THE
INFORMATION
STATEMENT
ON
SCHEDULE
14C,
AS
WELL
AS
ANY
AMENDMENTS
OR
SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION
ABOUT THE TRANSACTIONS.
The Company's stockholders
may obtain copies
of all documents
filed by the
Company with the
SEC, free of
charge, at the
SEC's
website,
www.sec.gov
or
from
the
Company's
website
at
https://www.calmainefoods.com/sec-filings
or
by
contacting
the
Company's Secretary in
writing or by
telephone at Cal-Maine
Foods, Inc., ATTN:
Max P. Bowman, Secretary,
1052 Highland
Colony Pkwy, Suite 200, Ridgeland, MS
39157, telephone number (601) 948-6813.
Item 9.01.
Financial Statements and Exhibits
(d)
Exhibits
Exhibit
Number
Description
99.1
Agreement
Regarding
Conversion
dated
February 25, 2025
by
and
among
Cal-Maine
Foods,
Inc.,
DLNL, LLC, and each member of DLNL, LLC
99.2
Third
Amended
and
Restated
Certificate
of
Incorporation
to
be
effective
on
the
Restated
Charter
Effective Date
99.3
Amended and Restated Bylaws to be effective on the Restated Charter Effective Date
99.4
Press Release issued by the Company on February 25, 2025
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements for
the Securities Exchange Act of 1934, the
registrant has duly caused this
report to be signed
on
its behalf by the undersigned hereunto duly authorized.
CAL-MAINE FOODS, INC.
Date:
February 25, 2025
By:
/s/ Max P. Bowman
Max P. Bowman
Director, Vice President, and Chief Financial Officer