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Item 5. Other Information

2024-05-30 compared with 2024-02-27 · 12 added, 132 removed, 20 unchanged (88% of the section changed)

Other Information

During the quarter ended January 26, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule

10b5-1 trading arrangement” (in each case, as defined in Item 408 of Regulation S-K).

Amendment and Termination of 2021 Rights Agreement and 2024 Rights Agreement

The information set forth below in this Item 5 is included herein in lieu of a Current Report on Form 8-K under Item 1.01 Entry into a Material

Definitive Agreement, Item 1.02 Termination of a Material Definitive Agreement and Item 3.03 Material Modification to Rights of Security Holders.

2024 Rights Agreement

On February 22, 2024, the Board of Directors of the Company

(the “Board of Directors”) unanimously determined to extend the Company’s shareholder rights plan for a further three-year term, subject to the approval of the Company’s shareholders at the Company’s upcoming 2024 annual meeting.

In connection

with this determination, the Board of Directors declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $0.01 per share and adopted a shareholder rights plan, as set forth in the

Rights Agreement dated as of February 27, 2024 (the “Rights Agreement”), by and between the Company and Equiniti Trust Company, LLC, as rights agent.

The dividend is payable on March 8, 2024 to the Company’s shareholders of record as of the close

of business on March 8, 2024.

The Rights Agreement is intended to replace the Company’s Rights Agreement, dated as of April 9, 2021 (the “2021 Rights Agreement”),

and it will become effective 5:00 p.m., New York City time, on February 27, 2024 (the “Effective Time”).

To facilitate the entry into the Rights Agreement, t he Board of Directors also approved an Amendment and Termination (the “Amendment”) to the 2021 Rights Agreement, which accelerates the expiration date of the 2021 Rights Agreement from the close of business on April 9, 2024 to immediately prior

to the Effective Time, at which time the 2021 Rights Agreement will expire and be of no further force or effect.

Other than extending the term, the Rights

Agreement makes no changes to the material terms and conditions of the 2021 Rights Agreement.

As it did previously in 2012, 2015, 2018 and 2021, the Board of Directors has adopted the Rights Agreement in response to the

persistent threat that a third party could accumulate a substantial, and potentially controlling, position in the Company through market purchases that do not reflect a control premium offered to all shareholders.

In making its decision, the

Board of Directors considered, among other factors, the strong support from the Company’s shareholders for the prior rights plans in those years.

In general terms, the Rights Agreement implements all of the same features and protective measures

of the 2021 Rights Agreement, imposing significant dilution upon any person or group that acquires 20% or more of the outstanding common stock of the Company without the approval of the Board of Directors.

The Rights Agreement will terminate

unless approved by shareholders at the Company’s 2024 annual meeting, and the Company’s Board of Directors and senior management intend to discuss the Rights Agreement with certain of the Company’s institutional shareholders during their

shareholder engagement efforts conducted closer to the Company’s fiscal year end.

The Board of Directors adopted the Rights Agreement in February 2024, rather than upon the natural expiration of the 2021 Rights Agreement in April 2024, for

administrative convenience, as the Board of Directors does not have a regularly scheduled meeting in April 2024.

Like the 2021 Rights Agreement, the Rights Agreement includes an exception for certain “qualifying offers” that would not cause the Rights to become

The qualifying offer exception in the Rights Agreement includes any all-cash, fully financed tender offer or any exchange offer of the common stock of the offeror meeting certain terms and conditions further described below (as well as

any combination of the two), in any case with such offer being made in respect of all outstanding shares of the Company’s common stock and held open for at least 60 business days.

This qualifying offer exception is designed to allow for bona fide

offers of cash and/or stock while still ensuring that all of the Company’s shareholders receive fair and equal treatment in the event of any proposed takeover of the Company and guarding against abusive tactics to gain control of the Company

without paying all shareholders a premium for that control.

A summary of the Rights Agreement follows.

This description is only a summary, is not complete, and should be read together with the entire Rights

Agreement, which has been filed as Exhibit 4.1 to this Quarterly Report on Form 10-Q.

A copy of the Rights Agreement is available free of charge from the Company upon request.

The Rights will initially trade with, and

will be inseparable from, the common stock.

The Rights are evidenced only by certificates or book entries that represent shares of common stock.

New Rights will accompany any new shares of common stock the Company issues after February 27, 2024

until the Distribution Date described below.

Exercise Price .

Each Right will allow its holder to

purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock (a “Preferred Share”) for $600 (the “Exercise Price”), once the Rights become exercisable.

This portion of a Preferred Share will give the

shareholder approximately the same dividend and liquidation rights as would one share of common stock.

Prior to exercise, the Right does not give its holder any dividend, voting, or liquidation rights.

Exercisability .

The Rights will not be exercisable until

10 days after the public announcement that a person or group has become an “Acquiring Person” by obtaining beneficial ownership of 20% or more of the outstanding common stock.

Certain synthetic interests in securities created by derivative positions — whether or not such interests are considered to be ownership of the

underlying common stock or are reportable for purposes of Regulation 13D of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) — are treated as beneficial ownership of the number of shares of the Company’s common stock equivalent

to the economic exposure created by the derivative position, to the extent actual shares of the Company’s common stock are directly or indirectly held by counterparties to the derivatives contracts.

Swaps dealers unassociated with any control

intent or intent to evade the purposes of the Rights Agreement are excepted from such imputed beneficial ownership.

The date when the Rights become exercisable is the “Distribution Date.” Until that date, the common stock certificates will also evidence the

Rights, and any transfer of shares of common stock will constitute a transfer of Rights.

After that date, the Rights will separate from the common stock and be evidenced by book-entry credits or by Rights certificates that the Company will mail to

all eligible holders of common stock.

Any Rights held by an Acquiring Person are void and may not be exercised.

Consequences of a Person or Group Becoming an Acquiring Person .

If a person or group becomes an Acquiring Person, all holders of Rights except

the Acquiring Person may, for $600, purchase shares of the Company’s common stock with a market value of $1,200, based on the market price of the common stock prior to such acquisition.

If the Company is later acquired in a merger or similar transaction after the

Distribution Date, all holders of Rights except the Acquiring Person may, for $600, purchase shares of the acquiring corporation with a market value of $1,200, based on the market price of the acquiring corporation’s stock prior to such

Notional Shares .

Shares held by affiliates and associates of an Acquiring Person, and

Notional Common Shares (as defined in the Rights Agreement) held by counterparties to a Derivatives Contract (as defined in the Rights Agreement) with an Acquiring Person, will be deemed to be beneficially owned by the Acquiring Person.

Preferred Share Provisions .

Each one one-hundredth of a Preferred Share, if issued:

will not be redeemable;

will entitle its holder to quarterly dividend payments of $0.01, or an amount equal to the dividend paid on one share of common stock, whichever is greater;

will entitle its holder upon liquidation either to receive $1.00 or an amount equal to the payment made on one share of common stock, whichever is greater;

will have the same voting power as one share of common stock;

if shares of common stock of the Company are exchanged via merger, consolidation, or a similar transaction, will entitle holders to a per share payment equal to the payment made on

one share of common stock.

The value of one one-hundredth interest in a Preferred Share should approximate the value of one share of common stock.

If the Rights Agreement is approved by the

shareholders at the 2024 annual meeting, the Rights will expire on February 27, 2027.

If shareholders do not approve the Rights Agreement, it will expire immediately following certification of the vote at the 2024 annual meeting.

The Board of Directors may redeem the Rights

for $0.01 per Right at any time before any person or group becomes an Acquiring Person.

If the Board of Directors redeems any Rights, it must redeem all of the Rights.

Once the Rights are redeemed, the only right of the holders of Rights will be to

receive the redemption price of $0.01 per Right.

The redemption price will be adjusted if the Company has a stock split or issues stock dividends of its common stock.

Qualifying Offer Provision .

The Rights would also not

interfere with any all-cash, fully financed tender offer, exchange offer of common stock of the offeror meeting certain terms and conditions further described below, or a combination thereof, in each case for all shares of the Company’s outstanding

common stock, remaining open for a minimum of 60 business days, and subject to a minimum condition of acceptance by a majority of the outstanding shares of the Company’s common stock and providing for a 20 business day “subsequent offering period”

after consummation (such offers are referred to as “qualifying offers”).

If an offer includes shares of common stock of the offeror, the Rights would not interfere with such offer if such consideration consists solely of freely-tradeable common

stock of a publicly-owned United States corporation;

such common stock is listed or admitted to trading on the New York Stock Exchange, Nasdaq Global Select Market or Nasdaq Global Market;

the offeror has already received stockholder approval to

issue such common stock prior to the commencement of such offer or no such approval is or will be required;

the offeror has no other class of voting stock outstanding;

no person (including such person’s affiliated and associated persons)

beneficially owns twenty percent (20%) or more of the shares of common stock of the offeror then outstanding at the time of commencement of the offer or at any time during the term of the offer;

and the offeror meets the registrant eligibility

requirements for use of a registration statement on Form S-3 for registering securities under the Securities Act of 1933, as amended, including the filing of all reports required to be filed pursuant to the Exchange Act in a timely manner during

the twelve (12) calendar months prior to the date of commencement, and throughout the term, of such offer.

In the event the Company receives a qualifying offer and the Board of Directors has not redeemed the Rights prior to the consummation of

such offer, the consummation of the qualifying offer will not cause the offeror or its affiliates or associates to become an Acquiring Person, and the Rights will immediately expire upon consummation of the qualifying offer.

After a person or group becomes an Acquiring

Person, but before an Acquiring Person owns 50% or more of the outstanding common stock of the Company, the Board of Directors may extinguish the Rights by exchanging one share of common stock or an equivalent security for each Right, other than

Rights held by the Acquiring Person.

Anti-Dilution Provisions .

The Board of Directors may

adjust the purchase price of the Preferred Shares, the number of Preferred Shares issuable and the number of outstanding Rights to prevent dilution that may occur from a stock dividend, a stock split, or a reclassification of the Preferred Shares

or common stock.

No adjustments to the Exercise Price of less than 1% will be made.

The terms of the Rights Agreement may be

amended by the Board of Directors without the consent of the holders of the Rights.

After a person or group becomes an Acquiring Person, the Board of Directors may not amend the Rights Agreement in a way that adversely affects holders of the

The foregoing summary does not purport to be complete and is qualified in its entirety by reference to the full text of the Rights

Agreement and the Amendment, copies of which are attached as Exhibit 4.1 and 4.2, respectively, to this Quarterly Report on Form 10-Q and is incorporated by reference herein.

During the quarter ended April 26, 2024, no director or officer of the Company adopted

or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408

of Regulation S-K).

INDEX TO EXHIBITS

Amended and Restated Charter of Cracker Barrel Old Country Store, Inc.

(incorporated by reference to Exhibit 3.1

to the Company's Current Report on Form 8-K filed under the Exchange Act on April 10, 2012 (Commission File No.

(incorporated by

reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed under the Exchange Act on April 10, 2012 (Commission File No.

Second Amended and Restated Bylaws of Cracker Barrel Old Country Store, Inc.

(incorporated by reference to

Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed under the Exchange Act on June 7, 2022)

Rights Agreement, dated as of February 27, 2024, between Cracker Barrel Old Country Store, Inc.

and Equiniti Trust Company, LLC, which includes the Articles of

Amendment to the Amended and Restated Charter as Exhibit A, the form of Right Certificate as Exhibit B, and the Summary of Rights to Purchase Preferred Shares as Exhibit C (filed herewith)

Amendment and Termination of Rights Agreement, dated as of February 27, 2024, between Cracker Barrel Old Country Store, Inc.

and Equiniti Trust Company, LLC (filed

(incorporated by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed under the Exchange Act on June 7, 2022)

Rights Agreement, dated as of February 27, 2024, between Cracker Barrel Old Country Store,

and Equiniti Trust Company, LLC, which includes the Articles of Amendment to the Amended and Restated Charter as Exhibit A, the form of Right Certificate as Exhibit B, and the Summary of Rights to Purchase Preferred Shares as Exhibit

C (incorporated by reference to Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q filed under the Exchange Act on February 27, 2024)

Amendment and Termination of Rights Agreement, dated as of February 27, 2024, between Cracker

Barrel Old Country Store, Inc.

and Equiniti Trust Company, LLC (incorporated by reference to Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q filed under the Exchange Act on February 27, 2024)

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith)

11 unchanged sentences

CRACKER BARREL OLD COUNTRY STORE, INC.

February 27, 2024

Pommells, Senior Vice President, Chief Financial Officer

February 27, 2024

Vaclavik, Vice President, Corporate Controller and

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 5. Other Information