CATO CORP - Remuneration Information 2020

DEFR14A 1 catoproxy2019final.htm DEFINITIVE REVISED PROXY catoproxy2019final.htm - Generated by SEC Publisher for SEC Filing

UNITE D S T ATES

SE C URITIE S AN D E X CHANG E COMMISSION

Was h i n g t o n , D . C . 20549

SCHEDUL E 14A

P r ox y Statemen t Pu r suan t to Sec t io n 1 4(a ) o f t he Sec u r it ies Exchange A ct of 1934 ( A m e ndment N o. )

Fi l e d b y t he Re g ist r an t [ X]

Fi l e d b y a Pa r t y o the r t ha n t he Re g ist r an t [ ] C hec k t he ap p r o p r iat e bo x:

[ ] Preliminar y Prox y Statement

[ ] Confidential , fo r Us e o f th e Commissio n Onl y (a s permitte d b y Rul e 14a-6(e)(2))

[ X ] Definitiv e Prox y Statement

[ ] Definitive Additional Materials

[ ] Solicitin g Materia l Pursuan t t o §240.14a-12

Th e CAT O Corporation

(Nam e o f Regist r an t a s Specifie d In I ts C h arte r)

(Nam e o f Person(s ) Fil i n g Pr o x y Statement , i f o the r t ha n t he Re g i s t ra nt )

Paymen t of Fili ng Fe e (Chec k t he a p pr o priat e b o x): [ X ] N o fe e r equ i red.

[ ] F e e compute d o n t a bl e belo w pe r Exchang e Ac t Rule s 14a-6( i ) ( 1 ) a nd 0 - 11.

1) T i tl e o f eac h cla s s o f securit i e s t o whic h transactio n a p pli e s:

2) Aggregat e numbe r o f s e curitie s t o w h ic h t r ansacti on app l ies:

3) Pe r u ni t p ric e o r ot h e r un d er l yi ng val ue of t r ansacti on comp ut e d pu r suan t to E x chan ge A c t Rul e 0 - 1 1 (s e t fo r t h t he amo u n t o n whic h t h e f i lin g fe e i s calculate d an d stat e ho w i t w a s determined):

4) P r op o se d max i m um ag g re g at e valu e o f transaction:

5) T o ta l fe e pa i d :

[ ] F e e pai d p re v io u s ly w ith preliminar y mater i als.

[ ] Chec k b o x i f an y p ar t o f th e f e e i s o ff s e t a s p r ov i de d by Exc h ang e A c t R u l e 0-1 1 (a)(2 ) an d ide n tif y t h e fili ng fo r wh i c h t he of fs ett i n g f e e w a s p a id p r evi o usl y. I d ent i f y t h e p r evi o u s f i l in g b y registratio n statemen t numb e r, o r t h e F or m o r Sc he d u le an d th e dat e o f it s f i lin g.

1) A m o u nt Pre vi o u s l y Pa id :

2) F o rm , Sched u l e o r Re gis tra t io n S ta te m e nt No .:

3) Fi l in g Pa r ty:

4) Dat e F i led:

Explanatory Note

On April 9, 2020, due to a clerical error, an EDGAR filing by the Cato Corporation (the “Company”) that was intended to be a preliminary proxy statement filed as a “PRE 14A” submission was inadvertently filed as a “DEF 14A” submission. The Company corrected this error by refiling the initial submission later on April 9, 2020 as a “PRE 14A” submission. This EDGAR filing constitutes the Company’s filing of a definitive proxy statement. The Company will distribute and make available to its shareholders this definitive proxy statement. Due to the initial inadvertent filing of this proxy statement as a “DEF 14A” submission, the Company is technically unable to file this definitive proxy statement as a “DEF 14A” submission. Accordingly, the Company is filing this definitive proxy statement as a “DEFR14A” submission. However, this submission is not an amendment or revision of any prior definitive proxy statement or of the versions of this proxy statement filed on April 9, 2020, which are substantively identical to this definitive proxy statement.

A p r i l 2 0, 2 0 20

Dea r Shareholder:

T he A n nua l Meet i n g o f S hare h ol d e r s t o b e hel d a t th e Corporat e O f f i c e o f t h e C o m p any , 8 10 0 De n ma rk Road , Char l ot t e , No r th C aro l in a 2 8 27 3 on Thu r sday , Ma y 2 1, 2 0 2 0 a t 1 1 :0 0 A .M. , Easte rn Time.

T he No t ic e o f t he A n nua l Meeti ng of S ha r eh o lde rs an d P r ox y S tatemen t ar e attached . Th e matter s t o b e acte d upo n b y our shareholder s ar e s e t fort h i n t h e No t i ce of A n nua l Me e t in g of Share h ol d er s an d d i scusse d i n th e Pr o x y Statement.

We w ou ld a p p r eciat e yo ur s i gn i ng , dati n g , a nd ret u r n in g t o t he Compan y th e enclose d pr o x y car d in t h e enclose d p o stag e paid e n vel o p e o r v ot i n g o n li ne or telephonicall y a t you r earlies t con v e n ience.

Alt h ou gh w e s til l i n ten d t o h ol d t he An n ua l Meeti ng i n person , we ar e ac t ivel y mon i to r in g de v elo p me n t s re l ate d to t he co r ona v i r us ( CO V I D -1 9) an d a re s ensi t iv e t o t he p u bl ic h ealt h co n cern s an d th e protocol s tha t f ederal , stat e an d loca l government s m a y i m p ose. I n t h e even t tha t alternativ e arrangement s f o r ou r Annua l Meet i ng bec o m e r eq u ire d o r adv i sa b le , w e wil l a n n o unc e t h ese arrangement s a s promptl y a s prac t i cable , w h ic h ma y i n clu de h o ldi ng t h e meet i n g p ar t iall y o r so l el y b y mea ns o f remo te communication . P l e as e monito r o u r we bs it e a t ww w . ca t o f ash ion s. com/ i nf o /i n vesto r - r ela t io ns f or update d informatio n a nd chec k t h e websit e i n advanc e o f t h e m e e ting . Pleas e retai n you r 16-digi t contro l number , whic h ca n b e fou nd on y o u r pr o x y ca r d and on t he instruction s t ha t accompanie d you r prox y m aterials , a s thi s contro l numbe r wil l b e neces s ar y to facilitat e y ou r r emot e partic i pa t io n if th e meetin g for m a t i s changed.

S i nce r e l y y o u r s,

JO H N P. D . C AT O

C ha i r m an , Presi d en t a nd Chie f Executiv e Officer

81 0 0 D e nmark Road

P. O . Bo x 34216

Ch a rlotte , N C 28 2 34

(7 0 4) 5 54-85 1 0

The Cato Corporation

NOTIC E O F AN N UA L M E ETIN G O F SHAREHOLDE RS T O B E HEL D MA Y 21 , 20 20

T O TH E S HAREH O LDER S OF TH E CAT O CORPORATION

N ot ice i s h ere b y gi ven th at t he A n n u a l M eet in g of S ha reh o ld ers of T he Ca to C or p o r atio n ( th e “Compa n y” ) w i l l b e h el d on T h urs d ay , Ma y 2 1, 2 02 0 a t 11 : 0 0 A . M . , Eas t er n T i me , a t t he C orpo r at e O f fic e of t he Compan y, 8 10 0 D enmar k R oad , Cha r lo t te, N o r t h Ca r oli na 2 8 2 73 , fo r th e f o ll o wi ng pu r p o ses:

T o elec t a s Director s o f t h e Boar d P am e la L . Davies , Thoma s B . Henso n an d Brya n F . Kennedy , III , eac h f o r a t er m expiring i n 2 0 2 3 an d u nt il the ir successor s ar e elec t e d an d q u ali f ied;
T o approv e th e Company’ s Am e nde d an d Restate d Certificat e o f I nco r p o rat i o n t o p r o vi de th e Boa rd t he p o we r t o ado p t, ame nd o r re p ea l t he Compan y ’ s By - Laws , a s amende d (th e “Bylaws ” ) , al o n g wit h certai n tech n ica l cha n ges , t o al i g n wit h a ma j o r it y o f pu b li c compa n ies;
T o rat i f y t he B oar d ’ s p re vi o u s l y a d o pte d ame n d m en t s to th e B y laws , i ncl u di n g :

a. T o v es t th e C h airma n a nd Chie f Executiv e Office r wit h autho r it y to ap p oi nt ot h e r officer s an d reassig n du t ies , s imi l a r t o man y p u bl ic c o m p anie s (a d op t e d o n Janua ry 2 8, 1 9 93 );

b. T o a u th o r i z e t he Compa ny t o issu e uncertificate d s hare s , a s r eq u ire d b y Ne w Y o r k S t oc k E xcha n g e r ul e (a d o pte d o n Decembe r 6 , 2007) ; and

c. To chang e th e m aximu m day s i n advanc e o f a s tockholde r m eeti n g , d i vi d en d paymen t o r o t he r even ts tha t a r ecor d da te ma y be s e t f r o m n ot mo re t ha n fi f t y ( 5 0 ) da ys i n ad v anc e t o n ot m or e tha n s ixt y (60 ) day s i n advance , i n ac c ordanc e with De l awar e la w ( ad o pte d on Fe b rua ry 2 6, 2 0 09 ).

T o app r ov e t he C ompan y ’ s Ame n de d a nd Res t ate d By l aws;
T o app r ove , o n a n ad v iso ry bas i s , t h e Compa n y’ s execu t iv e c ompens a tion;
T o rat i f y t h e s electi on o f Pr icewate r h o useCo o per s LL P a s th e Company’ s independen t r egist e re d publi c accountin g fir m f or th e f i scal y ear e n d in g Jan u a r y 3 0 , 2 0 2 1 ;
T o consi d e r an d ac t u p o n s u ch o th er bu s i n e s s a s ma y properl y c o m e be f o re t h e An n ua l Meet i n g o r an y ad j ou r nmen t t h ere o f.

T he Boa rd o f D i rect o r s h a s f i xe d th e clos e of busi n es s o n Marc h 2 3, 20 20 a s th e reco rd dat e f o r de t ermi n a t io n o f s ha r eh o lde rs e n ti t le d t o n ot i c e of , a nd t o v o te , a t th e meetin g o r an y adjo u rnment s thereof.

T he f o r ego i n g i t em s o f b usines s a r e mor e f ull y d escribe d i n th e P rox y S tatemen t accom p anyin g thi s n otice . A s describe d i n the P r ox y S tatemen t, alt h ou gh o u r cu r re nt ce r ti f icat e o f i n co r po r ati on d oe s n o t inc l ud e a p ro v isio n p ro v id i n g o ur b oa rd of di r ecto rs t he powe r t o adopt , amen d o r repea l ou r Bylaws , s inc e th e tim e o f o ur i n it i a l pu b li c offeri ng i n 1 98 7, o ur B o ar d h a s amende d ou r Byla ws t o ef f ec t th e followin g changes:

● t o ves t th e Chairma n an d Chie f E x ecut i v e O ffice r w it h au t horit y to app o in t o t he r o f f i cer s an d reassi gn du t ie s ( ado p te d on Ja n ua r y 2 8 , 1 99 3 ) ;

● t o authoriz e th e Compan y t o issu e uncertificate d s hares , a s re q u i re d b y Ne w Y o r k Stoc k Exc h ang e r u l e ( ado p te d on Decembe r 6 , 2007) ; and

● T o chan ge th e d at e r ang e f o r s ett i n g a r eco rd d at e f r o m n ot m o re tha n f i ft y ( 5 0 ) no r le ss t h a n te n ( 1 0 ) day s p ri or to t he meeti ng or d at e fo r paymen t t o no t m o r e t h a n s i x t y ( 6 0) n o r le ss t ha n te n ( 10 ) da ys i n a d vanc e ( ad o pte d o n Feb r ua ry 2 6, 2 00 9 ).

Ou r B o ar d ha s d etermi n e d tha t i t i s i n th e bes t interes t o f th e Compa ny a nd o u r s toc k ho l de rs t o ra t if y, an d ha s a p p r ove d t he ratification of, ea c h of t hese B yla w amendment s in accordanc e w i th Sec t io n 2 0 4 of th e De l a w are General Corpor a tion Law (“DGCL” ) an d D elawar e commo n l a w . Th is no t ic e co ns ti t ute s t h e n otic e re q ui r e d to be gi v e n to o u r stoc k ho l der s un d e r S ect i o n 20 4 of t he D GC L i n c o nnect i o n wit h s uc h rat i fica t io n. U n de r S ecti on 20 4 of th e DGCL , whe n a m atte r i s s ubmit t e d f or ra t if i cati on a t a s t ock h ol d e r mee t in g, an y c l ai m t ha t a defectiv e corporat e ac t rati f ie d u nde r Sect i o n 2 04 i s vo id o r v oi d abl e d ue t o th e f ail u r e of authorization , o r tha t th e Delawar e Cour t o f Chancer y shoul d d e clar e i n it s discretio n tha t a ratific a t io n i n accordanc e wit h Section 2 0 4 o f t he DG CL no t b e e ffe c t iv e o r b e effectiv e on ly o n ce r tai n con d it i ons , mus t be b r o u gh t w i thi n 1 20 d ay s f ro m t h e va l ida t i on effectiv e time , whi c h w o u l d b e th e t i m e t he st o ckh o lder s a p pro ve th e ratification.

A lt h ou gh w e s ti ll in t en d t o ho ld th e A n nua l M eeti ng i n pe r son , w e ar e ac t i v e l y m o n it o ri ng d eve lo p m e n t s re late d t o t he c o r o nav i ru s (C O V I D- 1 9 ) an d a re s en si tiv e t o t he p ubl ic h ealt h co n cern s an d th e p r ot o col s t ha t f ederal , stat e an d loca l govern ments ma y i m p ose . I n t h e eve nt t h a t alternativ e arrangement s fo r o u r Annua l Meetin g becom e r equire d o r a d visa b le , w e wi ll an n ou n ce thes e arrangement s a s promptl y a s practicable , whic h ma y inclu de ho l di ng t he m eet i n g p ar t iall y o r s o lel y b y mean s o f remo te communication . P l e as e monito r o u r we bs it e a t ww w . ca t o f ash ion s. com/ i nf o /i n vesto r - r ela t io ns f or update d informatio n a nd chec k t h e websit e i n advanc e o f t h e m e e ting . Pleas e retai n you r 16-digi t contro l number , whic h ca n b e fou nd on y o u r pr o x y ca r d and on t he instruction s t ha t accompanie d you r prox y m aterials , a s thi s contro l numbe r wil l b e neces s ar y to facilitat e y ou r r emot e partic i pa t io n i f th e meetin g for m a t i s changed.

IMP O RTA NT N O TIC E R E G ARD I N G TH E A VAILABILIT Y O F PROX Y MATERIAL S F OR T HE AN N UA L M E ETIN G O F SHAREHOLDE RS T O B E HEL D ON MA Y 2 1 , 2 02 0:

Thi s Prox y Statem e nt , th e accompanyin g prox y card a n d T h e Cato C orp o ra t io n Annua l R ep o r t o n F o r m 10- K fo r t h e 201 9 fisca l yea r i s availabl e at :

www.catofashion s . com/i n f o /i n vestor-rela t io ns

B y Or d e r o f th e Boa rd o f D irec t o rs

Chr i sti n J . Re is che

A ssistan t Secretary

D ated : A p r i l 20 , 2 0 2 0

SHAR E HOLDE RS A RE URGE D T O SIG N AN D M AI L TH E E N CLOS ED P R O XY I N T H E EN C L O SE D P O ST A G E PAI D ENV E LOP E OR VOT E ONLIN E O R TELEPHONICALL Y T O ENSUR E A Q UO R U M A T TH E MEETING . THIS IS I MP O RT A N T WH ET H E R Y O U O W N FE W OR M AN Y S H A RE S. DE L A Y I N R ETUR NI N G Y O U R P R O X Y MA Y SU B JEC T TH E COMPAN Y TO ADDITIONA L EXPENSE.

The Cato Corporation

8 10 0 D enmar k R o a d C h ar l otte , No r t h Ca r o l in a 2 8 273

PROX Y STATEMENT

T h i s Pr ox y S tatemen t is f u r nishe d in con n ecti on wi th th e s ol i c i tat i o n o f p r ox i e s b y t h e Boa rd o f D i rec t or s ( t h e “Boar d ” ) o f T he C at o C o r p o r atio n ( th e “C o m p any” ) f o r us e a t th e A nn u a l Meet i n g o f S h areh o lde rs o f th e Compan y ( t h e “meeti n g” ) t o be hel d o n M a y 2 1, 2 02 0, a nd a t a ny ad j ou r nmen t or ad j ou r nmen ts t he r eof . T hi s Prox y Statemen t an d th e acc o mpanyin g prox y car d ar e first b ein g mai l e d t o sha r eho l der s o n or abo ut Ap r i l 2 0 , 2 02 0.

O nl y s ha r eho l de rs o f r ecor d a t t he clo s e of b u s iness on M arch 23 , 2 0 2 0 ar e enti t le d t o no t ic e of a nd to v ot e a t t h e meeti n g . As of M arc h 2 3, 20 2 0 , t he C o m pa ny ha d ou t s t and i n g an d ent i tle d t o v ote 2 1,88 1 , 6 3 8 s ha r e s o f Clas s A C o mmo n S toc k (“ C las s A S t o ck”) a nd 1,7 6 3,65 2 sh a r e s of Clas s B Comm on S t oc k ( “Clas s B Stoc k ”) . Ho l der s o f C las s A Stoc k a re e n ti t le d t o o n e vo te pe r s h ar e a nd h ol d er s of C l a s s B S t oc k a re en t it l e d t o te n vo t e s p e r sh are . H o lde rs o f Clas s A St o c k an d h o lde rs o f Clas s B S t oc k vo te a s a s i ng le clas s .

I n th e even t t ha t alternativ e a r rangement s fo r th e m eetin g bec o m e r equ i re d or ad v isable , w e wi ll announc e thes e arrangement s a s p r o m p tl y a s p rac ti cab le , w hic h m a y i n c l u d e ho l di ng t he mee t i n g pa r tia l l y o r s olel y b y mean s o f r emot e communication . P lease mo n it or ou r websi te a t www.cato f ashions.com/inf o / i nves t or - re l a t i o n s f o r u pda t e d in f o r m at i o n an d che c k th e websit e i n advanc e o f t h e meeti n g . P leas e r etai n yo ur 16 - di g i t con t ro l n u m b er , w h ic h ca n be f o un d o n y o u r p r ox y ca rd an d o n t he ins t ruc t io ns that accompanie d you r prox y m aterials , a s t hi s contro l numbe r wil l be necessar y t o fac i lita te y o u r remot e par t ici p ati on i f t he m ee t ing f o r m at is ch a n ge d.

Al l proxie s properl y execute d an d receive d prio r t o th e m eetin g wi ll b e vo t e d a t t h e mee t in g. I f a shareholde r s p ecifie s h o w t he p r o x y i s t o b e vo t e d on a ny of t h e b usines s to c o m e bef o r e th e meeting , t h e p rox y w il l b e vot e d i n accordanc e wit h s uch specification . If n o s pecificatio n i s m ade , t h e p r ox y wil l b e vo t e d F O R th e electio n o f nominee s P a m el a L . Davies , Thoma s B. H enso n a nd Br y a n F . K enne d y , I I I, FO R a p p r ova l of th e Compa n y’ s Amende d a nd Restate d Ce r ti f icat e o f I nco r p o rat i o n to expre s sl y authoriz e th e Boar d t o amen d t he Compa n y’ s Byla w s , a s amended , alon g wit h certai n technica l change s , FO R rat i fica t ion of t he B oa r d ’ s p re vi o u s l y a d o pte d ame n d m en t s t o t he B y law s, FO R approva l o f th e Company’ s Amende d an d Re s t ate d Bylaws, FO R t he r esol u ti on app r o v in g t h e Compan y ’ s execu t iv e compe ns ati on p r o g r am , an d FO R th e ra t if i cati on of PricewaterhouseCooper s LL P a s th e Company’ s independen t regist e re d p u bl ic a c c o u n tin g f i r m f or t h e y ear e n d in g J a n u ary 3 0, 2 0 2 1 . A p r o xy ma y be re v oke d a t a ny t im e p r io r t o it s e x erc i s e b y w r i tte n notic e t o th e S ecretar y o f t he Compa ny a t th e C o r p o r at e O f fice of t he C o m p any , b y exec u ti ng an d de l ive r in g a p r o xy wi th a l ate r da t e , o r by v o tin g i n pe r s on a t th e meeti n g.

If yo u pla n t o atte n d an d v o t e a t t h e m e e t in g an d yo ur s ha r e s a r e h el d i n t h e na me o f a b r oke r o r ot h e r n o m inee , p l ea s e b r i n g with y o u a p r ox y or le t te r f r o m th e b r o k e r o r n omine e t o co n f i r m y o u r ow n ersh ip o f sha r es.

I n accordanc e wit h applicabl e D elawar e la w an d th e Company’ s B y laws , th e h ol d er s o f a m aj o ri ty o f th e comb i ne d v ot i n g p o wer of Clas s A S t oc k an d C l as s B S t o ck presen t i n p erso n o r represente d by pr o x y a t t he m eeti ng wi ll c o nsti t ut e a qu o rum . A bsten t i o ns a nd b ro k e r n on - v o te s ar e c o un t e d f or p u r pose s o f dete r m i ni ng t he p r ese n c e o r a bs enc e o f a qu o r u m . Br o ke r no n - v ote s ar i s e when b ene f icia l s ha r eho l de rs d o n o t g i v e t hei r b anks , br o ke rs o r o t h e r n ominees ’ i nst r ucti o n s fo r vo t ing their shares a nd the b ank s , b r oke rs or ot h e r nomi n ee s d o no t ha ve au t ho r it y to v ot e t h e sh are s o n a m atte r becaus e th e m atte r i s n o t considere d routine . Th e onl y such r o u ti ne i te m on th e ba l lo t f o r w hic h uni ns tr u cte d b a n k s o r o the r n ominee s m a y v ot e i s th e r ati f icat i o n o f t h e s e l ecti on of PricewaterhouseCooper s LL P a s t h e Company’ s independen t registere d publi c accountin g firm.

Wit h regar d t o th e electio n o f d irectors , vote s m a y eithe r b e c as t i n fa v o r o f o r w i th h el d and , assumin g t he p r ese n c e o f a q uo r u m, d irector s wil l b e elec t e d by a p lural i t y o f t h e vo t e s cast . V ote s tha t ar e with h el d w i l l b e excl u de d en t ire ly fro m t he v ot e a n d w i l l ha ve no e f fec t o n th e o utc o m e o f th e e l ecti o n . Abs t ent i on s a nd b r o k e r n on - v o te s ar e no t cou n te d fo r p u r p ose s o f elect i o n o f di r ect ors. The a f f i rmati ve vo te o f 66 2 / 3 % o f t h e comb i ne d v o ti ng p o we r of t h e Clas s A S t oc k an d Clas s B St o c k en t itle d t o v o t e i s re q uire d t o a p p r ov e th e C o m p any ’s Amen d e d a nd Restate d Certificat e o f Inco r poration . T he affirmativ e vot e o f a majorit y o f th e combined v ot i n g p o we r of th e C l ass

A St o c k a nd Clas s B S t oc k ent i tle d t o v ot e i s r equ i re d t o r ati fy eac h of th e Boa r d ’s p r evi o usl y ad o pte d amendmen ts t o t he By l aws. Th e affirmativ e vot e of a major i t y of th e combine d votin g powe r of th e Clas s A S t oc k an d Clas s B Stoc k en t itle d t o v ot e i s r equ i red to app r ov e t he Compa n y ’s Amen d e d a nd R es t ate d Byla ws. Th e a f f i rmati ve v o t e o f a maj o ri ty of th e combine d v otin g powe r o f the C las s A S t oc k a nd Clas s B Stoc k prese nt i n p erso n o r r ep r esent ed by pro xy a t t he meet i n g a nd ent i tle d t o v o t e i s re q uire d t o app r o ve t h e n o n- b in d in g a d vis o r y v ot e o n t h e Compa n y’ s exec u ti ve c o m p e n sati o n . T he r atificat i o n of P r i cewaterhouseCooper s LL P a s the Company’ s indep e nden t registere d p ubli c accountin g fir m r equire s t h e a f fi rm ativ e vo te o f a m aj o ri ty of t h e c o m b ine d v o tin g p o w er of t h e Clas s A St o c k an d Clas s B St o c k p r esen t in pe r s on o r re p resen t e d b y pr o x y a t th e m eeti ng an d e n ti t le d t o vo t e . On any p r o posa l ot h e r tha n th e e l ecti on of d irec t o r s , a b s t ent i on s a nd b ro k e r no n -v o te s w i l l hav e t h e s am e effec t a s a vot e again s t t he p r o po sa l .

T he C ompan y w il l bea r t h e cos t o f thi s so l icita t io n i ncl u di ng t h e e x pens e o f pre p ar i ng , p r int i ng , an d m ai l in g t hes e p r oxy mate r ial s t o s ha r eh o lde r s . Th e Compan y w il l r eimbu r s e b ro k ers , dealers , bank s , an d othe r custo d ians , nominees , an d fiduciarie s f o r thei r reasonabl e expen s e s in for w ar d in g pr o x y s o lic i tati on mat e rial s t o beneficia l ow n er s o f t h e Company’ s Clas s A Stoc k an d Class B S t oc k an d sec u ri ng t hei r v o ti ng i n str u cti o ns . Th e Compa ny h a s als o retai n e d Ge o r g es o n , LL C . , a p ro xy so l ici t atio n f i rm , t o a s s i st in th e so l icita t io n of p r ox i e s f o r a fe e o f $9,5 0 0.0 0 p l u s r ea s ona b l e ou t - o f - poc k e t expe n s es.

T he in d epen d en t electi on i nspect o r ( s ) a p po i nte d f or t h e A n nua l Meet i n g wil l de t e r min e w het h e r or n o t a qu o ru m is p resen t and w il l t abu l at e v ote s cas t b y p r o xy o r i n per son at t h e An n u al Meet i ng.

The s e prox y material s ar e availab le i n P D F an d HTM L f o rma t a t w ww.cat o fash i ons.com/i n f o /i n vesto r - r elat i on s an d w i l l remain p o s t ed u nt il t he c o n c l us io n o f t h e m eet in g. I n f o r m at i o n on t he C ompan y ’ s we b s i te , h o w e v er , d o e s n o t f o rm a pa rt o f th is Pr oxy Statement.

SEC U RIT Y O WNE R SHI P O F CERT AIN OWNE RS A ND MA N AG E MENT

T he f ol l owi ng tab le set s fo r t h, a s o f M arc h 2 3, 2 0 20 , ce r tai n i nf o rmat i o n re g ard i n g t he o w ne r s h i p o f t h e o uts t andi ng s hare s of Clas s A Stoc k an d Clas s B Sto ck b y ( i ) eac h directo r an d nomin e e , (ii ) eac h perso n wh o i s know n b y th e Compan y t o o w n m or e th a n 5 % o f suc h stock , (iii ) e a c h execu t iv e o f f icer l i s ted i n t h e S ummar y Compen s atio n Table , an d (iv ) al l director s an d executiv e officers a s a g r o u p . U n les s o t her w is e i nd i ca t e d i n t h e f o o tn o te s be l ow , eac h s hareholde r name d ha s sol e votin g an d investm e n t p owe r w it h r espec t t o s u c h s ha r eho l de r ’ s sha r es . U nles s o the r wis e i nd i cated , th e addres s o f eac h s hareholde r li s te d belo w i s 810 0 Denmark R oad , Cha r lot t e , N o r th Car o lin a 2 8 2 7 3.

| | Shares
Beneficially Owned (1) — Class A Stock | Class B Stock | | | Percent — of Total |
| --- | --- | --- | --- | --- | --- |
| Name of
Beneficial Owner | Number | Percent of
Class | Number | Percent of Class | Voting Power |
| John
P. D. Cato (2) | 753,102 | 3.4 | 1,763,652 | 100.0 | 46.5 |
| John
R. Howe | 134,170 | * | -- | -- | * |
| M.
Tim Greer | 81,044 | * | -- | -- | * |
| Gordon
D. Smith | 73,479 | * | -- | -- | * |
| Thomas
B. Henson | 21,380 | * | -- | -- | * |
| Bryan
F. Kennedy, III | 17,588 | * | -- | -- | * |
| Thomas
E. Meckley | 19,392 | * | -- | -- | * |
| Bailey
W. Patrick | 20,392 | * | -- | -- | * |
| D.
Harding Stowe | 30,726 | * | -- | -- | * |
| Pamela
L. Davies | 6,724 | * | -- | -- | * |
| Theresa
J. Drew | 3,095 | * | -- | -- | * |
| All directors,
nominees and executive officers as a group
(11 persons) | 1,161,092 | 5.3 | 1,763,652 | 100.0 | 47.6 |
| BlackRock,
Inc. (3) | 3,546,735 | 16.2 | -- | -- | 9.0 |
| The
Vanguard Group, Inc. (4) | 1,421,951 | 6.5 | -- | -- | 3.6 |
| Wellington
Management Group, LLP, et al. (5) | 1,339,906 | 6.1 | -- | -- | 3.4 |
| Dimensional
Fund Advisors, LP (6) | 1,928,079 | 8.8 | -- | -- | 4.9 |

Les s tha n 1%

(1) I n clu d es th e v ested i n ter e s t o f executiv e officer s i n t h e C ompa n y ’s Emp l oye e St o c k O w ners h i p Pla n a nd Empl o ye e Stock Purchas e P lan . Th e aggregat e v este d amoun t credite d t o thei r a c c o un ts a s o f Ma r c h 23 , 20 20 wa s 10 1 , 2 4 7 sha r e s o f Clas s A Stock.

(2) Th e amo u n t s h o w n fo r Clas s A St o c k an d Clas s B Stoc k incl u de s 1 4 , 7 6 2 s h are s an d 3,00 0 s hares , respec t ive l y , hel d b y M r.

Ca t o’ s wi f e . M r . Ca to discla i m s beneficia l ownershi p o f share s h el d d i rect ly o r i n directl y by hi s w i fe.

(3) Base d on a n amen d e d Sched u l e 1 3G f ile d b y t hi s s ha r eho l de r w it h th e S ecu r it i e s a nd Excha n g e C o mmissio n o n or a b out Feb r uar y 3 , 2 02 0. T he ad d res s o f t h i s sha r e h ol d e r i s 5 5 Eas t 52 nd S t r eet , Ne w Yo r k , N Y 10 0 55 . Th is s h are h ol d e r r epo r t s s o le v o ti ng po w e r o v e r 3,4 7 1,56 5 of t he r epo r te d sha r es.

(4) Base d on a n amen d e d Sched u l e 1 3G f ile d b y t hi s s ha r eho l de r w it h th e S ecu r it i e s a nd Excha n g e C o mmissio n o n or a b out Feb r uar y 1 0 , 2 0 2 0 . Th e ad d res s of t h i s s h a r eh o lde r is 1 0 0 Va n gua rd Bl v d. , Mal v ern , Pe n nsy l van ia 1 93 5 5 . Th is sha r eho l der report s s hare d disp os iti ve powe r wi th res p ec t t o 1 9 , 9 9 3 of t he r ep o rte d sh are s an d sha r e d v o ti ng po w e r w i t h res p ec t t o 1,6 72 o f th e reporte d shares.

(5) Base d o n a n ame n de d Sched u l e 13 G f ile d by t h i s s h areh o lde r wit h th e S ecur i tie s an d Exc h ang e Commissio n on o r a b out Jan u ar y 8 , 2 02 0. Th e a d d r es s o f th is sha r eho l de r i s 2 8 0 Con g res s St r eet , B o s t on , M assach us ett s 0 22 1 0 . Th is sha r eho l de r re p or ts sha r e d d isp o s i ti ve p o we r o v e r a ll of t h e r ep o rte d s ha r e s an d s h are d v o ti ng p owe r w it h res p ec t t o 1,2 0 2,8 74 of t h e r epo r ted shares.

(6) Base d on a n amen d e d Sched u l e 1 3G f ile d b y t hi s s ha r eho l de r w it h th e S ecu r it i e s a nd Excha n g e C o mmissio n o n or a b out Feb r uar y 12 , 2 0 2 0. Th e a d dres s o f th is s h areh o lde r i s Bu i ld i n g O n e 63 00 Be e Cav e R o ad , Aust i n , T X 78 7 46 . Th e s ha r eho l der r epo r t s s o l e vo t in g p owe r ove r 1 , 8 4 5 , 0 4 6 o f t h e re p or t e d share s.

PROPOSA L 1 – ELECTIO N O F DIRECTORS

T he Boa rd o f D i rec t ors , cu r re n tl y cons i s t in g o f eig ht mem b ers , i s d ivi d e d i nt o thre e classe s wit h term s expirin g alternatel y o ve r a three-yea r period . T h e term s o f thre e incumben t directors , P am e l a L . Dav i es , Th o m a s B . He ns o n a nd B r ya n F . Ken n edy , I I I ex p ir e a t t hi s year’ s An n ua l Meeti n g . T he d irector s hav e bee n r ecommende d b y th e Corporat e Governanc e an d Nominatin g Committe e and n omina t e d b y th e Boa rd f or re - elect i o n an d t o s e r v e u nt il th e 202 3 Annua l Meetin g an d unti l the ir succes s o r s ar e electe d and q ual i f i e d. T he Co r p o rat e G ove r na n c e an d N omina t in g Comm i tte e r evie ws an d r ecomme n ds , an d t h e Boar d nominates , director candidate s i n accordanc e wit h th e Company’ s Bylaw s an d th e pol i cie s describe d belo w u nde r “ C orporat e Governanc e Matter s – Directo r Nominatio n C r iteri a an d Proces s .”

It is th e i nte n tio n o f t he pe r s o n s name d in t he p r ox y t o vo te f or P a m e la L . D avie s, Tho m a s B . He n s on an d B r ya n F. Ken n edy , I I I t o serv e unti l th e 202 3 Annua l Meetin g an d unti l thei r s ucces s or s ar e elec t e d a nd q u alifie d, e x cep t t o th e e x ten t aut h orit y t o so vote is w it h hel d w it h r espec t t o o ne or m or e n o m i nees . Sh o ul d a ny nomine e b e u n abl e t o s e r ve , w hic h i s no t a n tic i pated , th e p r o xy w il l be v ote d fo r th e electi on of a s ub s titut e nomine e selecte d b y th e Boar d o f Directors . T h e thre e nominee s s hal l be electe d b y a pl u ra l ity of t he v ot es o f C la s s A S toc k and Clas s B Stoc k v ot i n g a s a si n gl e class.

Th e director s recommen d tha t s ha r eho l der s v ot e FO R th e electio n o f Dr . D avie s an d Messrs . Hen s on an d Kenned y a s m e mbers of t he B oa r d of Di rec t o r s.

As di s cu ss e d i n t h e D i rect or N ominatio n Criteri a an d Proces s s ec t io n bel o w , th e B o ar d bel i eve s it s d irec t or s p o ss e s s a d ive rse a nd exte ns iv e bac k gr o u nd o f k no w led ge a nd bo th p r ofessi o na l an d l if e experienc e tha t ca n s u p p o r t g r o w th , eval u a te r is k an d p r o vi de s u fficie nt oversig ht t o t h e Com p any . Th e m ember s o f th e Boar d wer e selecte d b a s e d o n thei r pro f essiona l achievements , broad e x pe r ience , wisd o m , cha r ac t er , in t egr i ty , abi l it y to ma ke i nde p ende n t , a n alyt i ca l in q ui r ie s an d i n tel l igen t d ecisi o ns , s o u n d and mat u r e b u s i nes s j ud g me n t , a b ili ty t o u nderstan d t he b usi n es s e n v ir o nmen t an d a b ili ty t o co l lab o rat e i n a n effect i v e ma n ne r a t t he B oar d l evel . I n a d dit i on , in d iv i dua l director s wer e s electe d b a se d o n man y factor s including , b u t no t limite d to , th e following:

● Experienc e a t th e directo r an d e x ec u ti ve l eve l wi th pu b lic ly trade d a s wel l a s privat e companie s ;

● K no w led ge of an d e x per i enc e i n t he d evelo p me nt an d leasi ng o f c ommercia l rea l estate;

● Fi n ancia l ex p er t is e i ncl u di ng experienc e i n pub l i c accou n tin g; and

● K no w led ge of th e r etai l i n dus t ry.

I n particular , f o r eac h d irecto r identifie d below , th e B oar d b e lieve s tha t th e su m o f th e experie n ce , qua l if i catio ns, attrib u te s and s k ill s describe d b elo w in s u c h d irector’ s b i ograp h ica l informa t io n q ual i fie s tha t d irecto r fo r s e r vic e o n t h e Boa rd o f D i rec t ors.

Nominees

Informatio n wit h re s pec t t o eac h nominee , i ncludin g biographica l d at a fo r a t leas t th e las t f i v e y ear s , i s set f o r t h be l ow .

Dr. P a mel a L . Dav i e s , 63 , ha s bee n a directo r of th e C ompan y sinc e Ap r i l 20 1 8 . D r. Davie s wa s t h e P residen t o f Queens Uni v ersi ty o f Charl o tte , C h ar l otte , Nort h Carol i na , fro m 20 02 to 20 1 9 . P ri or t o t h at , sh e wa s Dea n of th e McCo ll S ch o o l o f Bus iness a t Queen s Univer s i t y o f Charlot te f r o m 2 0 0 0 t o 2 00 2. S he i s cu r re n tl y a d i rect or of t h e Y M CA , US A Sonoc o P roducts , Inc. , and A t r iu m Heal t h . S he wa s p r e v io us l y a d irec t o r of C h armin g S h op p e s f r om 1 99 8 t o 2 0 09 , C& D Techn o lo g ies , I nc . f r o m 19 98 t o 2 0 1 0, a nd Fam i l y D ol l a r St o res , Inc . f r om 2 00 9 t o 2 01 5. Th e B oar d co n c l ude d tha t Dr . Da v ie s i s q u alifie d t o s erv e a s a Boar d member b ase d on h e r back g r o un d i n b u sines s e d ucati on a nd Boa rd e x per ience with o ther r etailers a nd p u b li c companies , amon g othe r skil ls a nd attri b utes.

Th o ma s B . Henso n , 65 , ha s bee n a directo r of th e Compan y s i nc e Ma y 2 01 1. M r. He nso n is a l i cense d at t or n e y an d is a f ou n der a nd h a s ser v e d a s C E O o f A me r ica n S p i r i t M edia , LLC , w h ic h ow ns ne t work-affilia t e d t elev i s i o n stati o n s in t h e so u t h an d m i d-w est. M r . He ns o n p rac t ice d l a w a t t h e f i rm of R o bi ns on , B r adsha w & H in son i n Cha r lo t te , N o rt h Car o li n a , fr o m 19 80 t o 1 9 99 . M r. Henso n i s a n investo r i n seve r a l privatel y owne d rea l estate,

hospitalit y a nd leisur e relate d businesses . Mr . H enso n serve d o n t h e B o ar ds o f Por t ra it I nn o vat i on s fr o m 2 0 0 2 t o 20 1 7 , an d P ar k Ste r li ng Ban k f r om 2 0 0 6 t o 20 1 7 . Th e B o ar d co n clu d e d Mr . Hens on i s qual i f i e d t o ser ve a s a B oar d membe r b ase d on hi s expe r ie n c e i n electroni c an d prin t medi a a n d lega l experienc e wit h retai l companies , amon g othe r ski l l s a nd att r i b utes.

Brya n F . Kennedy , III , 62 , ha s b ee n a d i r e c t o r of th e Co m pa ny s inc e Au g u st 2 0 09 . Mr . Kenned y ha s s erve d a s th e North C aro l ina / Vi r gi n i a D i visi on P resi d en t f o r S ou th Stat e Ba nk s inc e t h e s al e o f P ar k Ste r l i n g C o r p ora t io n ( h ol d in g compan y f or P a r k Ste r li ng Bank ) t o Sou th Sta te Co r p o rat i o n o n N o vem b e r 30 , 2 01 7. P r i or to t h a t , M r . Ke n n e d y se rve d a s Pre s iden t o f P ar k Sterli n g B an k f r om 2 00 6 un t i l N o vembe r 20 17 an d w a s a membe r of i ts B o ar d f r o m 2 0 06 un t i l 2 01 0. M r. K enne dy als o se r ve d a s t he P r es i den t o f P ar k S t er l in g Co r p o rat i o n f r o m J anua ry 2 01 1 un t i l 2 01 7, an d carrie d t h e a d di t io n a l t i tl e of C h ie f Execu t iv e O ffic er o f Pa rk S t erl i n g Ban k f r o m Jan u ar y 2 00 6 u nt il Au g us t 2 0 10 . Mr . Ke nn ed y wa s th e N o rt h C aro l in a Ma r ke t Preside nt o f Re g io ns Ba n k, locate d i n Charlotte , Nort h Caroli n a , f r om Ja n ua ry 2 0 0 4 t o J an u ar y 2 0 06 . Th e B o ar d conc l ude d tha t M r. K enne dy i s q ual i fie d to se r v e a s a Boa rd membe r base d o n h is e x per i enc e i n ba n ki ng an d f ina n c e , am o n g o t he r sk i ll s an d at t r i bu t es.

Continuin g Directors

Informatio n wit h r e s pec t t o th e f i v e con t in u in g m em b er s o f t he B o ar d o f D irec t o r s , inc l udi ng bi o g r aph i ca l d at a f o r a t leas t t he las t fiv e years , i s se t f o r th belo w.

J o h n P . D. Ca t o , 6 9 , has been e m p lo y e d as a n office r o f th e Com p an y sinc e 1 9 8 1 a nd has b een a d irector o f the Company since 1 9 8 6 . Sinc e Ja n ua ry 2 0 0 4 , h e ha s s e r ve d a s C h airman , Pr es i den t an d C h ie f Execu t iv e Of f ice r. F r o m M a y 1 99 9 t o Jan u ar y 20 0 4 , he serve d a s President , V ic e Chair m a n o f th e Boar d an d Chie f Exec u tiv e Officer . Fro m J un e 199 7 t o M a y 1999 , h e s erve d a s Preside n t, Vic e Chairma n o f th e Boar d an d Chie f Operatin g O f f ice r . F rom A ug u s t 19 96 t o J u ne 1 99 7, h e s er ved a s V ic e Chairma n o f th e Board a nd C h ie f O p erat i n g Of f ice r. F r o m 1 9 8 9 t o 1 9 9 6 , h e mana g e d t he Compa n y ’s o f f - p r ic e concept , s ervin g a s Executiv e Vic e Pr e s ide n t a nd a s P r eside nt an d G e n era l M anage r o f t h e I t ’ s Fash i on ! conce pt f r o m 19 93 t o A u g u s t 1 99 6. M r. Ca to p r evi o usl y se r ve d a s a directo r o f Harri s Teete r S upermarke t s , I n c., f o r m erly Ru d di ck Co r po r ati o n . Th e Boa rd n omina t e d M r. Cat o b ase d o n hi s k no w led g e of al l aspec ts o f th e Compan y ’ s b usines s a nd h i s substa n tia l expe r ie n c e o n a nd c o nt r ib u ti o n s t o th e Compan y ’ s B o ard , amo ng o t h er s k ill s an d a t tr i bu t es.

Theres a J . Drew , 6 2, ha s b ee n a di r ecto r of t h e C ompan y sinc e Ma y 20 1 9 . Ms . D r e w w a s th e Managin g Partne r fo r th e Carolinas p rac t ic e of D elo i tt e L L P f r om 20 11 to 2 0 1 9 . P rev i ous l y , sh e se r ve d a s th e Managin g Partne r i n Sa n Diego , California , fro m 200 1 t o 2011 , an d a s th e P artne r in Cha r ge o f the Audit practice in P h o en i x , A r izo n a , f r o m 1 9 9 8 t o 20 0 1 . Ms . D r e w s t arte d he r ca r ee r w ith D elo i tt e in 1 9 79 , an d p r i m a r i ly s er v e d clie n t s i n th e r etail , manu f act u ri ng an d hos p ital i t y i nd u s trie s , and is licen s e d as a C ertified P u b li c A c c o u n t a nt . M s. D re w has serve d on th e Boar d o f Director s o f S o noc o P r od u ct s Compan y s i nc e 20 1 8 . M s . D r e w i s a t rus t ee of T he U n ive r s i t y o f No r t h Car o li na a t C h ar l ott e an d i s Cha ir of t h e B o ar d o f Di r ecto rs o f t he YMC A o f G r eate r C har l ot t e . T he Boar d nominate d Ms . Dre w base d o n he r experienc e i n publi c accou n ti n g , amo ng ot h e r ski l l s a nd attri b utes.

Thoma s E . Meckley , 75 , ha s bee n a directo r o f th e Compan y sinc e Ma y 2 0 09 . M r. M eckle y formerl y s erve d a s a consultan t t o A gi l it y Recove ry S ol u ti o ns , a n ons i t e m o bi le busi n es s c o nti n uit y so l uti o n s compa n y , f r om 2 00 5 th r ou gh Ma y 2 01 5. He w as employe d b y th e publi c accountin g f i r m of Erns t & Youn g L L P fr om 1 9 6 7 t o 20 05 an d se r ve d a s a Manag i n g Par t ne r of t he Charlotte , N ort h Carolina , offic e f r om 1 98 5 t o 1 99 5. M r. Meckle y p r evi o usl y s e r ve d on t he Boa rd o f T r ustee s o f Eliza b eth t own C olle g e , a l ibera l art s colle ge i n Pen n s y lva n ia . T he Boar d n o m i n ate d Mr . Meckle y base d o n hi s ex p erie n c e i n p u bl ic accou n ti n g, amo ng ot h e r ski l l s a nd attri b utes.

B a ile y W . P a trick , 58 , ha s bee n a directo r o f th e Comp a ny sinc e Ma y 2009 . S inc e Octo b e r 2 01 0, M r. Pat r ic k ha s bee n a M anag i n g Pa r tne r o f MP V P r ope r tie s LLC , f o r me r l y Mer r i f iel d P a t ric k Ve r m i ll i on , LLC , a p r iva t el y hel d compan y s pecial i zin g in rea l e s t at e brokerag e an d devel o pmen t serv i ces . Mr . Patric k se r ve d a s a Managin g Partne r o f Me r rifield Pat r ick f r om F e b r ua r y t o O cto b e r 2 01 0 an d P r es i den t o f B is se l l-Pat r ick , LL C f r o m 19 99 t o 20 1 0 , bo th p r edecesso r f i r m s t o Mer r i f iel d Pat r ic k Vermi l li o n, LLC , h o ld i n g v ari o u s o t he r posi t io ns wi th Bissel l -Pat r ic k s i n c e 19 8 4 . H e als o s e r ve s o n th e B oar d o f Di r ecto rs f or t he Car o li na T h rea d Trai l i n Charl o tte , N o r th Carol i na , a Truste e fo r t he Y M C A o f G reate r C h arl o tt e a nd T r uste e o f Queen s Univer s i ty . He p r ev io u s ly se rve d on

th e Boar d o f Director s o f Harri s T eete r S upermar k ets I n c., f o r m e r l y Ru d dic k C o rp o ra t io n. T he B o ar d n o mi n ate d M r. Pa t ric k based on h i s e x per i enc e in c o m m erc i a l rea l estat e leasin g an d develo p m e nt a nd e x p er ien ce ga in ed i n se r v i ce on o th er b oa rd s, a m on g other s k ill s an d a t tr i bu t es.

D. H ard i n g S tow e , 6 4 , ha s bee n a di r ecto r o f th e C o m p an y s i nc e Feb r uar y 20 0 5 . M r. S to we wa s t he Pr e s i den t an d C h ie f Executiv e Office r o f R.L . S tow e Mi l ls , I nc . f r o m 1 99 4 t o 2 0 09 . Mr . Stow e als o ha s bee n t h e Ch a irma n an d Chie f Executiv e Offic er o f Ne w S out h P izz a (Brix x W oo d F ire d P izza ) s inc e 1997 . Additi o nally , h e s e rve s a s th e Secretar y an d Treasure r of T he Stowe Fo u n d a t io n, Inc. , a s th e P r es i den t o f th e D anie l J. St o w e Bo t anica l Garden , an d a s t h e Vic e P r esiden t o f S eve n O ak s Farm F o u n d a t io n. T h e B oa r d c o nc lu d e d t hat M r . S to we i s q u a li f ie d t o serv e a s a Boa rd m embe r base d o n hi s e x pe r ienc e in s en i o r mana g eme nt an d lea d ersh ip posi t ion s wit h severa l companie s an d boards , amon g othe r s kil ls an d a t trib u tes.

T he f i v e c o nt i nu i n g membe rs o f t he B o a rd o f Di r ect o r s a re d i vide d i nt o tw o classe s w i t h cur r en t te r m s e x pi r i ng in 2 02 1 and 2022 . O n th e expiratio n o f eac h d irector’ s term , h i s o r he r su c cesso r i n offic e wil l b e electe d f o r a t h ree - yea r ter m. Th e t e r ms o f M essrs . Cat o, Meck l e y an d Patri ck exp i r e i n 2 02 1. Th e te r m s o f Ms. Dre w and M r . S to w e expire in 2022.

P R O POSA L NO . 2

APPROVA L OF A MEN D E D AN D R ESTATE D CERTIFICAT E O F I N C O R POR A TIO N TO PROVIDE TH E BOAR D TH E POWE R T O A DOP T, AM E N D O R REPEA L TH E BYLAWS

General

U nde r D e l awa re law , a c o r p ora t io n ’ s st o ckh o lde rs ha ve th e po w e r to ad o pt , amen d o r re p ea l t he co r po r ati o n ’s b yla ws. T he certificat e o f incorporatio n ma y al s o confe r tha t powe r concur r entl y o n t h e b oar d o f directors . P redece s so r version s o f the C o m p a n y ’ s Cert i fi cate of I nc or p o ra ti on dat e b ack t o 1 94 6. Ce r t a i n version s o f thes e predece s s or certific a te s o f i ncorporatio n include a pro v isio n a u th o riz i n g t he b oa rd t h e po w e r t o ad o pt , amend , o r r epea l th e Compa n y’ s By l aws . H o weve r, suc h a p r ov i s i o n wa s no t include d i n th e Compan y ’ s Cer t if i cat e o f I nco r p o rat i o n a s o f t h e t im e of th e C o mpa n y’ s i n it i a l pu b li c o f fe r in g in 19 8 7.

Ou r Boar d be l ieve s t h a t i t wa s th e i n ten t a t t he t im e o f t h e 1 9 8 7 i nit i a l p u bl ic o f f er i n g to p r ov i d e t he B oar d wi th t he p owe r to adopt , amen d o r repea l t h e Company’ s B y laws . Th e Bylaws , whic h w er e i ncl u de d wi th t he C o m p any ’s re g ist r ati on sta t eme nt f iled w it h t he S E C i n c o nnec t io n w i t h t h e C o m p any ’s 19 87 i nit i a l p ubli c o f fe r in g, inc l ud e a p r o vi s i on s ta t in g tha t eit h e r t h e s t o ck h o lde rs or t he B o ar d h av e aut h or i t y t o amen d t h e Byla w s.

S i nce t h e ti me of t he C o m pa ny ’s i n i t ia l p u bl ic o fferi n g , t h e B o ar d ha s amende d th e Bylaw s t o effec t th e followin g changes:

● t o ves t th e Ch a i rma n an d Chie f Executiv e Office r wi th au t ho r it y t o a p po i n t o the r o f fice rs an d r eass i g n d uties , s imila r t o m any p ub l i c compan i e s (a d o p te d o n Jan u ar y 2 8 , 1 99 3 );

● t o authoriz e th e Compan y t o issu e uncertificate d s hares , a s re q u i re d b y Ne w Y o r k Stoc k Exc h ang e r u l e ( ado p te d on Decembe r 6 , 2007) ; and

● to chan ge t he max i m um da ys i n a d vanc e o f a s toc k ho l de r meeti n g , d ivi d en d pa y m e nt o r o t he r event s tha t a r ecor d d at e may be s e t f ro m n o t m o re t h a n f i f t y ( 5 0) d ay s i n adva n c e t o n o t m or e t h a n s i x t y ( 6 0) da ys i n a d vance , consisten t wit h D e l aware l a w (ad o pte d on Fe b r u ar y 2 6, 2 00 9 ).

A mo re deta i le d d escri p ti on of t hes e amendmen ts pre v io u sl y a d op t e d b y t he Boar d is se t f o rt h i n P ro p osa l No . 4 (Ratifica t io n of B oar d ’ s Prev i ousl y Ad o pte d A me n dment s t o t he Byla w s ), a nd At t a c hmen t B con t ain s a m a r ke d ve rs io n of t he p r o visi o n s i n t he curren t Bylaw s a s modif i e d b y the s e amendment s .

D e s crip t i on o f the P ropose d Amendment

T he Boa rd bel i eve s i t is i n t h e bes t i n te r es t o f t h e s toc k ho l d e rs to p r ov i d e t he Boa rd th e p owe r t o a d op t, amen d o r r epea l o ur B yla w s . Th e p r o p ose d Amen d e d an d Restate d Cert i f i c a te o f Inc o r p ora t io n wo u l d a dd t he fo l lo w in g pr o vis i on , w h ic h i s co ns istent wit h w h a t t he Boar d belie v e s wa s t h e i n ten t a t t h e t im e o f th e 1 9 87 i n it i a l p u bl ic offerin g an d i s co n s is ten t wi th simila r provisions i n c l u d ed i n t h e ce rt i f i c a tes of inc o r p ora t io n of m o st pu b lic l y - t ra d e d compan i es:

THIRTEENTH . Th e Boar d o f D irecto rs i s expressl y e m powere d t o a d opt , amen d o r r epea l th e By-L a w s o f the C o r p o r ati on . T he s t ock h ol d er s s h al l als o h av e th e p o we r to ado p t , amen d o r r epea l t he B y-La ws o f th e C o rp o ra t io n; pr o vi d ed , h owe v er , tha t, i n a d di t io n t o a ny vo te o f th e ho l der s o f an y clas s o r s erie s o f st o c k of th e Co r po r at i o n re q ui r e d by la w o r b y t hi s A me n de d and Re s t ate d Certificat e o f Incorpo ra ti o n , such act io n by st o c k h older s s h al l req u ir e t he aff i rmati ve v ot e o f t he h ol d er s of a t le a s t a maj o ri ty o f t he v ot i n g po w e r o f a ll of th e t h en- o uts t and i n g sh a re s o f t h e ca p ita l stoc k of th e Co r po r ati on ent i tle d t o v o t e ge nerally in the election of directors, v o ti ng to g ethe r a s a sin g l e c l as s .

Attachmen t [A ] include s a marke d versio n o f th e C o m p any ’s c u r re n t Ce r ti f icat e o f I nc o r p ora t io n, a s pr o pose d to b e ame n de d and r estate d wit h th e p r o p ose d amendmen ts i ncl u ded . I n a d di t io n t o t he ne w pro v isio n t o g i v e th e B o ar d p owe r t o amen d t he Bylaws , t he Amende d an d Restate d Certificat e o f I n co r po r ati on incl u de s a numbe r of ot h e r t echn i ca l c h anges , w h ic h ar e p r i m a r i ly c l eanu p t o mak e consisten t th e us e o f defi n e d term s an d s imi l a r clarif y in g c h anges . A s mal l n u m b e r o f c h ange s tha t a re m o re s u bsta n tiv e a re e x pla i ne d be l ow:

● Th e d e l eti on o f t h e las t sente n c e in Articl e FOURTH , Sectio n (A) , w hic h s ta t e s t h a t al l issue d s hare s o f capita l s toc k a s o f t he d at e o f f i l in g t h e a m e n d m en t w i l l be r ecla ss i f ie d a s Cla ss A C o mmo n S tock , ha s bee n d elete d a s r eleva nt on ly t o t h e legacy ce r ti f icat e o f inc o rp o ra t io n a nd no t a p plica b l e f or pu r p o se s o f thi s amendment.

● Th e deletio n o f th e languag e i n Articl e TW E LFTH , S ectio n (A ) t h a t relate s t o th e initia l phase- i n o f t he C o m p any ’s c l assi f ied Boar d ha s bee n delete d a s n o l o nge r per t ine nt an d p o ten t iall y c o n f u s i n g .

● Th e a d di t io n of la n gua ge i n A r t icle T WE L FTH, S ection (B) to i n c lud e “newl y create d d irector s hips ” i n slot s tha t m a y be f il l e d o n th e Boa rd a nd c h ang i n g th e require d directo r v ot e fo r fillin g vacancie s an d newl y create d directorship s fro m t hree d irec t o rs t o a m ajo r i ty of di r ecto rs i s i nte n de d t o m a ke t h i s p ro v isio n co n sisten t w i t h th e w o r di ng in A rt i cl e I I I, S ec t io n 2 of t h e C o m p any ’s ex is ti ng B y laws , w hic h i s p r o pose d t o b e prese r v ed i n th e Compan y ’ s A me n de d an d Res t ate d Byla ws t h a t a re b ein g su b m i tte d f o r st o ck h olde r app r o v a l in P r o p osa l No . 4.

Reason s fo r th e Propose d Amendme n t s t o th e Certificat e o f Inco r poration

T he B o ar d be l ieve s tha t a p p r ova l o f th e Amen d e d a nd Restate d Ce r ti f icat e o f I nc o rp o ra t io n g i vi ng ou r B o ar d p owe r to ado p t, amen d an d repea l ou r Bylaw s i s c o n sisten t wit h t h e in t en t t o c o nfe r po w e r o n t h e Boa rd a t t h e tim e o f t he C ompan y ’ s ini t ia l publ ic o f f er i n g t o a d op t, amen d o r r epea l t h e Byla w s.

Th e Boar d als o b elieve s thi s p o w e r is sta n dar d amo ng pu b li c co m panies . Accordin g t o d at a fro m F actSet’ s SharkRepellent , a c o r p o r a te g o ver n anc e da t abase , b oa r d s o f di r ecto rs hav e a u th o r ity t o ame nd t he by l aw s wi t ho ut st o c k h o lde r app r o v a l a t mo re tha n 97 % o f th e companie s i t track s i n eac h o f th e S& P 500 , S& P 150 0 a nd Russel l 3 00 0 i nd i ces.

If th e Compan y ’ s Ce r ti f icat e o f I n co r po r ati on d oe s n ot c o nfe r p owe r t o ado p t , amen d an d repea l th e Byla ws up on t he b o ar d of d i r ecto r s , s toc k ho l de rs w o ul d n ee d t o approv e al l futur e amend m en ts t o t h e Byla w s , wh i c h wo u l d b e b u rde ns om e an d u nnecessa r y , an d i s a n inefficien t us e o f Co m pan y resources . Fo r example , by l aw s ty p ical ly co n tai n p r ov i s i on s p erta i ni ng to the inte r nal operation s of a compan y an d it s b oa rd , s u ch a s p r o vi s i o n s r e l at e d t o t he c o nd u c t o f b oa rd meet i ng s an d t h e app o in t m en t of o f f i cers. Seek i n g st o ckh o lde r ap p ro v a l o f eve ry cha n g e t o thes e t y pe s o f pr o vi si on s w o ul d b e cu m be rs o me a nd w o ul d in v ol ve s t ock h ol d er s i n day-to-da y aspe c t s o f th e Company’ s governanc e practic e s. Adoptio n of t h es e amen d me n t s wil l faci l itat e t h e Board’ s a b ili ty to efficientl y implemen t an d adap t corporat e policie s an d procedu r e s a s changin g circum s tance s m a y necessitate , w i th o u t h avi ng t o i ncu r t h e e x pens e an d de l a y of s o lic i ti ng p r o xie s an d vo t e s f r o m s t ock h ol d er s a nd ho l din g a m ee t in g o f o u r s toc k ho l ders . If t h is proposa l i s approved , th e powe r t h a t w il l b e con f er r e d u po n t he d i rect o r s wil l n ot d ives t o r limi t t he p o we r o f stoc k ho l der s t o ado p t, amen d o r repea l ou r Bylaw s .

Vot e Requiremen t an d Boar d Re c o m m endation

A pp r o v a l o f t h e p r op o se d Amende d an d Restate d Certificat e o f I n co r po r ati on re q ui r e s t h e af f irmat i v e vo te of s ix t y - s ix an d t w o- t hi r d s pe r ce nt ( 66 2/ 3 % ) o f t he c o m b ine d v ot i n g p o we r o f th e Clas s A St o c k an d Clas s B Stoc k e n tit l e d t o v o te . A b stent i on s and b r o ke r n on - v o te s w il l be c o un t e d a s p r ese n t f o r p u r po ses o f de t ermi n in g t h e prese n c e of a q uo r u m an d w i l l ha ve t he e f fec t of a vo te “against ” th e proposal.

Th e Boar d unani m ousl y propose s an d recommend s t ha t yo u vot e “ F O R ” a p p rova l o f th e p ropose d Ame n de d and Restate d Certificat e o f I ncorporatio n t o provid e ou r Boar d th e p o we r t o a d o p t, a m e nd o r repea l ou r Bylaws.

If t h e p r o p ose d Amen d e d an d Res t ate d Certificat e o f Incorporat ion is app r oved, it will become l egall y effecti v e u p o n t he f i li ng o f t h e Amende d a nd R es t ate d Cer t i f icat e o f I nco r po r at i o n wi th th e De l a wa r e S e c retary o f State. I f st o ckh o lde rs a p pr o v e th e p r op o s al, t h e Compa ny inte n d s t o mak e tha t f il i n g p r ompt ly afte r th e 2 0 2 0 A n nua l M e e t in g.

If t he p r o p ose d Amende d a nd R es t ate d Certificat e o f Incorporat i on i s n o t app r o v ed , a s d iscusse d abo v e , th e Compa ny w ill c o nt i nu e t o o pe r at e u n d e r th e By l aw s an d stoc k ho l der s w i l l nee d t o a p p r ov e an y f u t ur e amendmen t s .

P R O POSA L NO . 3

RATIFICATIO N O F TH E BOA R D’ S PREVIOUSL Y ADOPTED AMENDMENT S T O TH E BYLAWS

As p r evi o usl y discussed , s i n c e th e t im e o f th e Compan y ’ s 1 9 8 7 i n i tia l pu b li c o f f eri n g , t he Boa rd ha s a m en d e d t he By l aw s t o e f fec t t h e f o llo w in g c h anges:

● t o ves t th e Ch a i rma n an d Chie f Executiv e Office r wi th au t ho r it y t o a p po i n t o the r o f fice rs an d r eass i g n d uties , s imila r t o m any p ub l i c compan i e s (a d o p te d o n Jan u ar y 2 8 , 1 99 3 ) , th e “19 93 Amen d ment”);

● t o authoriz e th e Compan y t o issu e uncertificate d s hares , a s re q u i re d b y Ne w Y o r k Stoc k Exc h ang e r u l e ( ado p te d on Decembe r 6 , 2007) , th e “200 7 Amendment”) ; and

● to chan ge th e maximu m day s i n a d vanc e o f a s t oc k m eeti n g , div i d en d paymen t o r othe r event s t h at a r ecord date may be set f r om n ot m o re t ha n f i f ty ( 5 0) day s i n adva n c e t o n o t m o r e tha n sixt y (60 ) day s i n advance , consisten t wit h Delawar e law ( ad o pte d o n Feb r ua ry 2 6, 2 0 09 ), t he “ 2 00 9 Ame n dment”.

The s e amendment s wer e adopte d b y o u r B oar d, bu t wer e n o t a d o p t ed by t he s t o c k h ol de r s. O ur B oa r d h a s determine d tha t it i s i n th e bes t interest s o f th e Compa n y an d i ts st o ckh o lde rs to ra t i f y eac h of the s e Byla w amendment s i n accordanc e wit h S ectio n 20 4 o f th e DCG L an d Dela w ar e commo n law.

Sect i o n 20 4 o f t he D G C L al l ow s a D elawa re co r p o rat i on , by f ol l owin g s p ecifie d p rocedures , t o ra tif y a defecti ve corporat e act retroactiv e t o th e dat e th e defectiv e corporat e ac t w a s originall y t a k en . I f an y on e o r mor e o f t h e B y la w ame n dment s liste d a b o v e is rat i fie d b y stoc k hol d ers , t h i s ra t ificati on wil l b e r etr o acti ve t o th e d at e t he Boa rd ap p r o ve d t ha t B yla w ame n dment . Thi s Pr o x y Statemen t an d th e notic e provide d t o stoc k ho l de rs i n c o n n ec t io n w it h t h e ann u a l m ee t in g c o nsti t ut e th e notic e require d to b e g i v en t o o u r st o ckh o lde rs u nde r Sec t io n 2 0 4 o f t h e DG CL i n c o nnec t io n w it h th e ratificatio n o f t hes e By l a w ame n dments.

A ttac h m e nt [ B] t o th is P r ox y S tate m en t c o nta i n s a m a r ke d ve r s i o n o f t h e tex t o f eac h o f t he 199 3 Amendment , th e 2 007 A m e n dmen t an d th e 2 0 0 9 Amendmen t, s h ow i n g chan g e s t o t he res p ectiv e p r ov i s i on s o f th e Byla ws a ffecte d b y thes e a m endments. Eac h o f thes e amend m ent s i s explaine d i n m o r e detail belo w .

Pro p o s al 3 A: R a ti f ica t i on o f By l a w A men d ment v e st i ng p ow er i n C hairma n an d Chie f Executiv e O ffice r t o appoin t other officer s a n d reassig n duties . Th e 199 3 Amendmen t m ad e certai n chan ges t o t h e f i rst pa ra g r a p h of S ec t io n 1 o f A r t icl e V r elat i n g to the li s ting of o fficers that a re o r ma y b e ap p oin t e d t o th e B o ar d an d adopte d a ne w s econ d paragrap h t o ves t th e Chairm a n an d C h ief E x ecuti ve O f fice r “wi th th e a u th o ri ty t o a p po i n t s uc h o the r o f f icer s an d rea s sig n suc h d utie s a s h e ma y dee m app r o p ria te f r o m t i me t o t ime ” an d provide d tha t al l officer s serv e a t th e discretio n of th e Chairma n an d Chie f Exec u tiv e Offic e an d tha t th e Chairm an a nd C hie f E x ecut i v e O f fice r wo u l d kee p th e Boa rd i n f o rme d o f an y suc h appointment s an d change s a t r egula r Boar d m eetings . The B o a r d has ap pr o v ed t he ratifica t io n of th is Byla w am e n dmen t prev i ousl y a d op t e d b y t he B oar d.

Propo s a l 3B : Ratificatio n o f B yla w amendmen t authorizin g uncer t ificate d s hare s . Th e 200 7 Amendmen t wa s implemented in a re s p o n se t o a cha n g e i n N e w Yo rk Stoc k E x chan ge r u le t ha t r equ i re d l iste d compa n ie s t o p ro v id e i n the ir g o ver n in g d ocumen ts thei r stoc k b e issuabl e i n uncertificate d a s wel l a s certificate d f or m i n orde r to facilitat e participatio n i n th e Direc t Reg i s t ra t ion Pr og r a m . A c c o r d in g ly , t he a m e n d m en t to S ecti o n s 1 a nd 4 of A rt i cl e V I regardin g “C e r tificate s ” an d “Tran s fer s of Stock ” were r ev i se d t o i n clu de w or d in g t h a t c o ntemp l ate d an d aut h o r ize d t h e i s s uanc e o f u ncertificate d s har e s o f s tock . Th e Boar d ha s app r oved t h e ra t if ica tio n o f t h i s Byla w amend m en t p re v io u s ly ado p te d b y th e Board.

Pro p o s al 3 C: R at i f i c a t i o n o f B yl aw a men d ment ch a n gi ng t h e m a xi m u m a dvanc e perio d f o r whic h a reco r d d at e m ay be se t fr om f i f ty ( 50 ) t o six ty ( 60 ) d ays . Th e 200 9 Amendmen t increase d th e m a x i m u m ti me i n ad v a n c e o f a meetin g date , d iv i dend date , o r othe r event s tha t a r e cor d dat e coul d b e set f ro m w hat ha d p rev i ousl y bee n f if ty ( 5 0 ) d ay s i n A rt i cl e V I, Secti on 5 t o si xt y ( 6 0 da y s ) . T h e Boa rd h as a p p r ove d t h e rat i fi cat io n of t h i s B y la w a m endmen t p rev i ous ly ado p te d b y t h e Boa r d .

Ther e ma y b e uncertaint y regard i n g t h e va l idi ty a nd ef f ecti v enes s o f th e 1 99 3 Amendmen t, t h e 2 0 0 7 Amendmen t o r t h e 2 009 Amendmen t o r action s t ake n i n relianc e o n th e 199 3 Amendment , t h e 2 00 7 A men d me nt or th e 20 09 A m e n dme n t . Acc o r d in g ly , we ar e s u bmittin g thes e amendment s f o r ratificatio n b y th e stockho l d er s .

Vot e Requiremen t an d Boar d Re c o m m endation

Ratificatio n o f eac h o f thes e Byla w amendment s require s th e af f i rmati ve v ot e o f a maj o r i t y o f t he c o m b ine d v o ti ng powe r o f t he C las s A St o c k a nd C l as s B S t oc k enti t le d t o v ote . A bsten t io ns a n d b r o ke r no n - v ote s w il l b e co u nte d a s presen t fo r p u r p ose s o f d etermi n in g t h e prese n c e of a qu o r um an d wil l ha ve t h e effec t o f a vot e “against ” eac h proposal.

Th e Boar d unanimousl y propose s an d recom m end s tha t yo u v ot e “F O R ” a pprova l o f eac h proposa l d e s cribe d abov e to ratif y amend m ent s t o th e Bylaw s t ha t wer e previou s l y adopte d b y th e Board.

T he r ati f icat i o n of an y o n e o r m o r e o f th e Byla w amendm e n t s descr i be d ab o v e i s no t c o nd i ti o ne d o n t h e app r o v a l o f Pr o posal N o . 2 ( a p p r ova l o f t h e C o m p any ’s A m e n de d an d Res t ate d Cer t if i cat e of I nc o rp o ra t io n) or o n P r o p osa l N o . 4 (approva l o f the Company’ s Amende d an d Restat e d By l aws) . If t h e s t o ckh o lde rs appro ve P ro p o sal N o . 2 , b ut do n ot ap pr o v e P r o p o s al No . 4 o r o ne or m o re o f th e B y la w amen d me n t s p r evi o usl y a d op t e d b y th e B o ard , t he Boa rd ma y ado pt an y o r a ll s uc h n o n - r ati f ie d amendmen ts a ny tim e i n t he f ut u re . Also , i f t h e s t ock h ol d er s ra t if y o n e o r m o re of t he p rev i ous ly ado p te d By l a w ame n dment s descr i be d ab o v e, a ny s u c h rat i f i e d p r o visi o n s w il l b ecom e a par t of th e Compa n y’ s Byla ws, eve n i f t h e s t ock h ol d er s d o no t a p pr o v e P r op o sa l N o . 4 ( ap p r o va l o f t h e Amende d a nd Restate d B y laws).

T im e L i m i t a ti o n s o n Lega l C h a llenge s t o th e R a t i fic a t i ons

If s toc k ho l der s rat i f y an y Byla w amendmen t descr i be d abo v e , un d e r t h e D GC L an y clai m tha t (1 ) t h e r atifie d Byla w amendment is v o i d o r v oi d abl e d ue t o a fa i lu re of aut h o r izati o n , or ( 2) th e Delawar e Cour t o f Chancer y s h oul d d eclar e i n it s discretio n tha t t he rat i fica t io n o f tha t Byla w ame n dmen t no t b e effectiv e o r b e effect i v e o n l y on ce r tai n con d it i ons , m u s t b e b r o ug ht w i th in 1 20 d ays f r om t he t im e t h e s t ock h ol d er s app r o v e d tha t r ati f icat i on.

P R O POSA L NO . 4

APPROVA L OF A MEN D E D AN D R ES T ATE D B Y LAWS

General

O u r B o ar d ha s dete r m i ne d tha t it is i n t he b es t i n te r es ts o f t h e C ompan y an d o ur stoc k ho l der s t o app r o ve t he p r o p ose d Amended a nd Res t ate d B ylaw s o f th e C omp a ny . T h e s e amendment s ar e inten ded t o c o n f o r m t he By la w s t o w hat t he Boa rd be lie ves wa s t he o r i gi n a l i n ten t p r io r t o t he Compa n y ’s 19 87 i ni t ia l p ub l i c o f f eri ng t ha t t h e B o ar d hav e a u th o r i t y to amen d th e B ylaws , t o i n c l u de s u bstan t ial ly simila r versi o n s ( w it h chan g e s a s d i sc us se d below ) of t he 1 99 3 Ame n dment , 2 0 0 7 A m en d m e nt an d 2 00 9 Amendment adopte d b y th e Board , t o confor m th e Bylaw s t o th e Amende d an d Restate d Certificat e o f I ncorpor a t i o n t h a t i s a l s o b ein g s u b m i tted f o r s t ock h ol d e r app r o v a l pu r sua nt to P roposal No . 2 and to make certai n othe r cleanu p an d technica l change s .

S i nce t h e ti me of t he C o m pa ny ’s i n i t ia l p u bl ic o fferi n g , t h e B o ar d ha s amende d th e Bylaw s t o effec t th e followin g changes:

● t o authoriz e th e Compan y t o issu e uncertificate d s hares , a s re q u i re d b y Ne w Y o r k Stoc k Exc h ang e r u l e ( ado p te d on Decembe r 6 , 2007) ; and

A ttac h me nt [C ] to th is P r o x y Statemen t contain s a m arke d versio n of th e p r o p ose d Amende d a nd Restate d By l aw s s h ow i n g t he v ersi o n s of th e 19 93 A m e n dment , t h e 2 00 7 Amen d me nt a nd t h e 2 00 9 Amendmen t p ropose d t o b e include d i n th e Amende d and Re s t ate d Bylaw . Eac h o f thes e a m e n dment s i s expla i ne d i n mo re detai l below.

T he 19 93 A m e n dmen t mad e ce r tai n cha n ge s i n t h e f irs t para g ra ph o f S ecti on 1 of A rt i cl e V r elat i n g t o t h e l i s t in g o f of f ice rs t hat ar e o r m a y b e appointe d b y t h e B o ar d an d ad o pte d a ne w s ec o n d p ara gra ph t o vest t he C ha ir man an d Chie f Executiv e Offic e r “with t h e a u th o r i t y t o app o in t suc h ot h e r officer s an d reassig n s uc h d u tie s a s he ma y d ee m app r op r ia te f r o m t i m e t o time ” an d p r o v id ed tha t al l o fficer s serv e a t th e d i s c r eti on o f th e Cha i rma n an d C hie f Executiv e Office r an d th a t th e Chairma n an d Chie f Executi ve O f f ice r wo u l d kee p th e B o ar d i n fo r me d o f a ny s uc h app o in t m e n t s an d change s a t r egula r Boar d m eeti n gs . T he 1 9 9 3 A m e n dmen t is propose d t o b e carrie d f orwar d i n th e Amende d an d Re s t ate d Byl a w s w it h m i n o r ty p og r ap h ica l an d cosmeti c c h anges , excep t that t hi s p o we r w ou ld b e veste d so l el y i n t h e Chie f E x ecut i v e Offic er a s oppose d t o th e Chairma n a n d th e Chie f Exec u tiv e Office r an d w ou ld be q uali f ie d a s “su b jec t to t h e a u th o ri ty of th e B oar d , ” an d th e s t atemen t tha t officer s an d agent s s erv e a t th e discretio n o f t he C hie f E x ec u ti ve O f f ice r w ou ld b e limite d to th o s e o f f i cer s app o in t e d b y t he C h ie f Executiv e Officer.

T he 2 00 7 A me n dmen t wa s implemente d in a r espo n s e t o a Ne w Y or k St o c k E x chan ge r u le cha n g e tha t r equ i re d l i ste d compan i es to p r o v id e in t h e ir g ove r ni ng d o cument s t hei r s t oc k be issuab le i n uncertificate d a s wel l a s ce r tificate d f or m i n orde r t o fa c i l ita te p ar t icipa t io n in t h e D irec t Re g istrati on Program . Accordi n gl y, th e amendmen t t o S ection s 1 an d 2 o f Articl e V I regarding “Certificate s ” an d “ T ransfer s o f St o ck ” we re r evise d to inc l ud e w o r d in g t ha t co n templa t e d an d authorize d th e i s s uanc e of uncertificate d s hare s o f s tock . Th e 2 0 0 7 Amendmen t i s p r op o se d t o b e carrie d forw a r d in th e Amende d an d Re s t ate d Bylaw s with mi n o r t yp o gra p hica l an d cosmeti c change s .

Th e 200 9 Amendmen t increase d th e m aximu m t im e i n advanc e o f a meet i n g d ate , d iv i den d paymen t d at e o r ot h e r eve n t s tha t a recor d dat e coul d b e s e t fro m wha t ha d previousl y bee n fift y ( 50 ) d ay s i n A rt i cl e V I , S ecti on 5 to s i x t y ( 6 0 ) da ys. T he 2 009 Amendmen t i s propose d t o b e carr i e d f o r war d in th e Amen d e d an d Restate d Bylaw s wit h mino r ty p ographica l an d cosmeti c changes.

In ad d it i on , th e p r o p ose d Amende d a nd Restate d B y law s inc l ud e mino r technical , typographica l an d clarifyin g change s a s s hown in A ttachment [ C ] . A small nu m ber o f change s tha t ar e mor e sub s tantiv e ar e e x pla i ne d be l ow:

● Ma x imu m Numbe r o f Di r ecto r s : Th e m a x imu m numbe r o f di r ecto rs i n t he ra n g e tha t is to b e s e t b y reso l ut i o n o f th e B o ard p u r s ua n t t o A r tic le I I I, Se c t io n 1 ha s b een cha n g ed f r o m 12 t o 1 5 t o co n fo rm t o t he ex is ti ng Ce r ti f ica te o f I nco r p o rat i o n and the propo s ed Amended and Rest a t e d Cer t if i cat e o f I nco r p o rat i on.

● Chairman’ s Authorit y to Plac e Ne w Directo r in Differen t Class : Artic le I II , Secti on 2 ha s b ee n expa n de d t o p ermi t t he Chairma n o f th e Boar d t o p lac e a newl y el e cte d directo r or dir e cto r f i lli ng a v aca n c y i n t o a Clas s ot h e r t h a n t h e clas s of director s i n wh i c h th e newl y create d di r e ctor s hi p o r vacanc y occurred.

● Specia l Boar d Meetings : Articl e III , S ectio n 7 ha s bee n r evise d t o provid e tha t s pe c i a l boar d m eeting s m a y b e calle d o n 2 4 h ou rs’ n o ti ce (a s op p o sed t o 2 - 3 da y s) a n d t h at n o ti ce m a y be give n by tele p ho ne or electroni c tran s m ission.

● Meetin g Communications : Articl e III , S ectio n 1 0 regardin g Boar d m eeting s b y telephoni c conferenc e ha s bee n revise d t o moderniz e tha t provision.

● Committees : Articl e III , S ectio n 1 1 h a s bee n m odernize d f o r flexibilit y an d accurac y to remov e th e prescriptiv e name s of certai n committee s tha t ma y no t b e needed.

● C o m p ensati on o f Direct o rs : Arti c l e III , Sectio n 1 2 ha s bee n r evise d t o clarif y tha t e mploye e director s ar e no t compensate d for thei r service s a s directors , bu t m a y receiv e exp e n s e reimbursement s , an d tha t o utsid e direc t or s receiv e annua l o r meeting- ba s e d fees.

● D e s c r i p tio n o f O f fice r Ro l e s: Nu m er o u s S e c t io ns i n A r t i cl e V hav e b ee n r e v ise d an d m odernize d to p r o v id e ad d it i onal spec i f i c i t y i n office r t i tles , an d f lex i bil i t y i n th e descri p t ion of of f ice r d u ties , i n clu d in g s uc h du t ie s an d p o wer s a s p resc ri be d by t h e B oa rd . P o wer to a p po i n t a d di t io nal o f f i ce r s has b een co n ferre d on t he Ch i e f E x ec u ti ve Off i cer , ra t he r tha n j o int ly with th e Chairman , Chi e f Executiv e O ffice r a nd P resi d ent . A d di t io n a l ly , ge n de r -spec i fi c p r o no u n s s uc h a s “he ” an d “him ” have bee n remove d fro m t h es e d escri p tio ns.

● Amendments : Articl e IX , Sectio n 1 h a s bee n ame n de d t o con f o rm it t o t h e t er ms o f ne w A r tic le TH I R T EENT H o f t he C o m p any ’s p r o pose d A men d e d an d Resta t e d Cer t if i cat e of I nco r po r atio n tha t i s th e s u bjec t o f Proposa l No . 2.

R eason s f o r th e Propose d Amendment s t o the B y la ws

Th e Boar d believe s tha t t hes e pr o pose d amendment s r e f lecte d i n t he p r o p ose d A me n de d an d Res t ate d Bylaw s , w hic h giv e effect to t he 1 9 9 3 A m e n dment , t he 20 07 A m e n dmen t a nd t he 20 09 A m e n dme n t adopte d b y th e Board , w it h chan ges a s de s c r i b e d a b o v e, a nd mak e cer t ai n clea n u p a nd o t he r c h ange s desc r ibe d abo v e , a re consiste nt w i t h t h e in t en t to con f e r p owe r o n t he Boa rd a t t he t i me of th e Compan y ’ s 19 87 i ni t ia l p u b li c o f f er i n g t o ado p t , amen d or r e pea l t h e Bylaw s an d ar e consisten t w i t h th e Boar d ’ s ro le i n over s eein g th e day-to-da y asp e ct s o f th e Company’ s governanc e p ractice s an d f reshenin g th e Bylaw s f ro m tim e t o t im e t o r eflect changin g circumstances.

Vot e Requiremen t an d Boar d Re c o m m endation

A pp r o v a l of t h e A m e n de d an d Res t ate d Byla ws re q ui r e s th e af f i r mativ e vot e o f a majorit y o f th e comb i ne d vo t in g p o we r o f t he C las s A St o c k a nd C l as s B S t oc k enti t le d t o v ote . A bsten t io ns a n d b r o ke r no n - v ote s w il l b e co u nte d a s presen t fo r p u r p ose s o f d etermi n in g t h e prese n c e of a qu o r um an d wil l ha ve t h e effec t o f a vot e “against ” t he p r o posal.

Th e Boar d unani m ousl y propose s an d recommend s tha t yo u vot e “ F O R ” approva l o f th e Amende d a n d Res ta ted B y la ws.

If th e pr o pose d Amen d e d an d Restate d B y law s a re ap p ro v ed , t h e y wil l becom e le g all y effecti ve immedia t e ly u po n s toc k ho l der a p p r ova l.

A pp r o v a l of t he Amen d e d an d Restate d B y law s i s n o t con d it i one d on th e app r o v a l of P r o p osa l No . 2 ( ap p r o va l o f t he C o m p any ’s A m e n de d a nd Resta t e d Ce r ti f icat e o f I n co r po r ati o n ) o r on an y o f Pr op o s a l No s. 3A , 3 B, or 3 C ( ra t if i cati on o f th e B o ar d ’ s p r evi o u s l y a d op t e d ame n dment s t o t he B y laws ). If th e s toc k ho l de rs ad o p t P r o posa l N o. 2 , bu t do no t a p p r ov e th e Amen d e d a nd Restated B yla w s , t h e B o ar d ma y ad o p t an y o r al l of t h e p r o pose d ame n dment s r eflecte d in th e Amende d an d Restate d Bylaw s a t an y tim e in t h e f u tu r e . A l s o, i f t h e s t ock h ol d er s rat i f y o ne or m o r e o f t he p re v io u s ly a d o p te d Byla w amen d m e n t s d esc r i b e d in P r op o sa l N os . 3 A , 3 B , 3 C , a ny suc h r atifie d p ro v isio ns w il l becom e a p ar t of th e C o m p any ’s B y laws , eve n i f th e stoc k ho l de rs d o no t a p p r ov e t he Amende d an d Re s t ate d Bylaws.

P R O P OS A L 5 – A N O N -B I N D I N G AD V I SOR Y VOT E O N EXE C UTIV E COMPENSA TION

T he Boar d i s comm i tte d t o corp o rat e g overnan c e b e s t pra c tice s a n d recognize s th e s ignifican t interes t o f shareholder s i n executiv e compen s atio n matters . A s par t o f i t s comm i tme nt t o a “pa y fo r performanc e an d reten t io n” base d compensa t ion p hi l oso p hy , a nd a s requ i re d b y Sec t io n 1 4A of t h e S ecuritie s E x chan ge Act , t he Boa rd w il l h o l d a no n -b i nd i n g adv i s o r y vo te to a p p r ov e t h e compe n s a t io n o f ou r name d e x ecuti ve o f fice r s . A lt h o u gh t h i s v o t e i s ad v isor y an d is no t b in d in g o n t h e Boa r d , t he Compensatio n Committe e o f t h e Boar d wil l tak e int o accoun t th e outcom e o f th e vot e whe n co n siderin g futur e executive compensatio n decisions.

As d iscusse d i n th e Compe ns atio n Discussi on an d A nal y si s incl u de d in th is p r o x y sta t emen t, t h e Boa rd bel i eve s tha t t he cur r ent exec ut i v e co m pe n s at io n p r o g ram directl y link s executiv e compensatio n t o performanc e an d align s th e i nterest s o f executiv e off i cers w it h t hos e o f s h areh o lde r s . Fo r e x am p le:

● In 2 01 9, 7 4 % o f th e CE O ’ s t o ta l c o m p e ns ati on p o ten t ia l wa s pe r f o rmance - base d a nd 3 2% to 3 4% of t he NEOs ’, o the r than t h e CEO , t o t al c o m pe ns a t io n p ote n tia l was pe r f o r ma n ce- ba se d .

● N E O s h av e a n annua l incentiv e opp o r t un i t y t o ea rn a perce n tag e o f thei r bas e salaries . Th e CEO ’s i ncen t iv e o p po r tu n it y is 150 % of hi s ba s e s alar y an d al l othe r NEO’ s ha s a n i ncentiv e o p p o r tu n it y o f 7 5% o f the ir b as e salar y. Base d o n t he ac h ievemen t o f p re - establ is he d pe r f o rmanc e goals , th e pay o u t c a n ra n g e fr o m 0% - 10 0% o f t hi s ince n ti ve o p po r t u nit y. U n li ke man y in ou r pee r group , payout s canno t excee d th e annua l incenti ve o p p or t un i ty , s o t ha t ach i evemen t o f C ompany p er f o r manc e s u bsta n tial ly a b ov e p re-establishe d performanc e goal s d o e s no t resu lt i n pa y ou ts i n e x ces s o f th e a n nual i ncen t iv e o p po r tu n it y.

● We enc o ura ge l o ng - te rm s toc k o w nershi p b y executiv e officer s w i t h restricte d sto c k awar d featu r e s s uc h a s f iv e - yea r vesting wit h vest i n g no t be g in n in g u n ti l t he th i r d an n iversar y o f t he g r an t an d mea n in g fu l o w ne r s h i p req u i r eme n t s be f o re an y vested restricte d stoc k ma y b e sold.

● We d o n o t ha ve an y a g r eeme nt s wit h executiv e o fficer s tha t p ro v id e f or cas h se v e r anc e paymen ts u p o n te r m i nati on of emp l oymen t or i n co n nect i o n w i t h a chan ge i n c o nt r o l ( e. g., g o l de n pa r ac h u t es ) .

● Exec u ti ve o f fice rs d o n o t ea rn a ny ad d it i ona l ret i remen t i ncom e unde r an y supplementa l executiv e ret i remen t p la n or o t her emp l oye r f u n de d pe n s i on.

● Exec u ti ve o f fice rs ar e n ot p r o v ide d compensat i o n or pe r q u isite s s uc h a s c o m p an y f u n de d d efe r re d c o m p ensati o n , ho u sing allowances , reimburse d o r emplo y e r p ro v ide d pe rs ona l ai r t r avel , au t omob i l e all o wa n c e s or compan y funde d financial plannin g services.

● Executiv e officer s receiv e 401(k ) matchin g c ontributi o ns , prof i t s h ari ng c o ntri b uti o n s a nd g r o u p ter m l if e ins u ranc e simila r t o a ll elig i bl e empl o yee s (sometime s referre d t o herei n a s “assoc i ates” ) o f th e Company.

Fo r thes e reasons , th e Boar d recomme n d s t ha t sha r eho l der s v o t e i n fa v o r of th e fol l ow i n g res o lut i on:

“ R es o lve d, t ha t t he share h ol d er s ap p r o ve , o n a n on - b i ndi ng a d v i sor y b a s i s , th e compensatio n o f t h e name d ex e cutiv e officer s of T he Ca to Co r p o rat i on , a s d isclose d p u r s u an t to th e compe n satio n discl o s u r e r ule s o f th e S E C ( wh i c h discl o sur e s ha ll inc l ud e t he C ompensat i o n D i sc us s i o n an d A nal y s is, t he c o m p ensati on tab l es , an d an y relate d material).”

Th e abov e reference d disclosure s ap p ea r a t page s 2 0 t o 3 6 o f th i s Prox y S tatement.

Fo r th e reason s s tate d above , th e Boar d believe s th e compensat i on of ou r n ame d execu t iv e o f fice rs i s app r op r ia te and r ecommend s a v ot e F O R a p p r ova l of th is r esol u tio n.

ME E TING S AN D COMMITTEES

D u r in g t he f isca l y ea r ende d Feb r uar y 1, 20 2 0 , t he C o m p any ’s B o ar d o f D i rec t or s hel d f iv e meet i ngs . Th e Boa rd t yp i cally sc h edu l e s a m eetin g i n co n ju n cti on w it h th e Compan y ’ s A nn u a l Me etin g o f S ha r eho l de rs an d expec ts tha t al l di r ecto rs w i l l a t te n d th e Annua l Meetin g absen t a sche d ul e conflic t o r o the r va li d r eason . Al l director s attende d th e C ompan y ’ s 20 19 An n ua l Meet i ng.

T he Boa rd of D irec t o r s , p urs u an t to au t ho r i ty g r ante d i n th e C o mpan y ’ s By l aws , ha s estab l ishe d a s t and i n g Au d i t C o mmi t tee, Compensatio n Committe e an d Cor p orat e Governanc e an d Nominatin g Committee . Durin g th e fisca l y ea r ende d F ebruar y 1 , 2 020, t h e A u di t C ommi t te e hel d ni ne m eetings ; th e Compensatio n Commi t te e hel d t h r e e meet i ng s an d t h e Corporat e Governanc e and Nominatin g Committe e hel d thre e meetings.

A l l di r ecto rs at t ende d 1 0 0 % o f t he sched u le d Boa rd of D i r ecto rs m ee t in gs an d app l icabl e Comm i tte e meet i ng s d ur i n g fiscal 2 0 1 9 .

Audi t Committee

The Board of D irectors e s tabli s h e d th e Audi t Committe e i n acco r danc e w i t h S ec t io n 3 (a ) ( 5 8) ( A) o f th e Securitie s Exchang e Act of 19 3 4 , a s ame n de d (t he “Exchang e Act”) . Th e Audi t Committe e ass i s ts th e Boar d o f D i rect o r s in f ul f il l in g it s o vers i ght respo n sib i lit i e s r egar d in g t h e in t egr i t y o f t h e Compan y ’ s f i nan c i al s ta te m e n t s, t he C o m pa ny ’s co m p lia nce w i t h l egal a nd r e g u l a t o ry r eq u iremen t s , t he sa f egua r di ng o f t h e Compa n y’ s assets , t he in d ependence , q ualification s , an d p e r f ormanc e o f th e i n depe n dent a u di t o r s , t h e p er f ormanc e o f th e Compan y ’ s i nte r na l aud it f u n c t io n, th e Compan y ’ s i nte r na l con t r ol o v e r fi n ancia l re p o r ti ng a n d s u ch o the r matter s a s t he Committe e deem s appropriat e o r a s delegat e d t o t h e Commit t e e by t he Boa rd o f Di r ecto rs f r o m t im e t o t i m e . S ee “Corporat e Governanc e Matter s - Boar d o f Director s Ris k Managemen t Over s i ght ” belo w fo r th e Com m ittee’s role i n that p rocess. D u r in g t he f isca l y ea r ende d Feb r ua ry 1, 2 0 20 , t h e A ud it Comm it te e hel d nin e meetings . Th e Boar d of Di r ecto rs ha s dete r m i ne d that eac h m embe r o f t h e Audi t Committe e i s a n i ndependen t d i recto r i n accordanc e wit h th e independenc e requirement s o f t h e N e w York St o c k Excha n g e (“N Y S E” ). In add i ti o n , t h e Boa rd ha s d ete r m i ne d t h a t e ac h m e m be r of t he A ud it C o mmitte e meet s th e heightened standard s o f independenc e fo r aud it commi t te e membe rs u n de r t he Exchang e Ac t an d tha t eac h i s “financi a l l y literate ” i n accor d ance w it h th e r equ i rement s o f th e N YSE . N o membe r o f t h e A u di t C omm i tte e simultaneou s l y s erve s o n th e audi t committe e o f m or e than t w o o t he r p u bl ic compa n ies . Messrs . T h oma s E . Meck l e y ( Cha i r ), Thoma s B . H enso n, Br y a n F . K enne d y , I I I, an d Ms . The r es a J. D re w ar e t he m e m be rs of t he Au d i t C o m m it t ee . Th e B o ar d of D i rector s ha s determine d tha t Thoma s E . M e c kley , Thoma s B . H enso n, Br y a n F . Ke n ned y, I I I , an d The r es a J. Dre w q u ali fy a s au di t committe e f i nancia l ex p ert s wi t hi n th e m ea n in g o f S E C r u l e s. T he A u di t Committe e ope r ate s u nde r a Boa r d-a p p r ove d cha r te r, a cop y of whi c h i s avail a b l e on th e Company’ s web s it e at w ww.cat o fash i ons.com/i n f o /i n vesto r - r elat i ons . A dd i ti o na l i n f o r mat i o n conce r n i n g th e Au d i t C omm i tte e i s s e t f ort h b elo w under “P r op o sa l 6 – R ati f icati on o f I n d ependent Regi s t e re d P u b li c A c co u nt i n g Fi r m .”

Compensatio n Co m mittee

Th e Compensatio n Com m itte e as s esse s th e Company’ s overal l compe n s at io n p ro g ra ms a nd ph i lo s o p hie s. Th e Co mm it tee r ev i ew s an d a p p r oves , o n a n an n u al b a s i s , t he Co m pa n y’ s g oal s an d ob j ecti v e s f o r compensa t io n o f t h e C h ie f E x e c u ti ve O f fice r and evaluates the Chief Executive O f ficer’ s performanc e i n ligh t o f th o s e g o al s a nd ob j ecti v e s a t leas t an n uall y. Base d o n t hi s eval u ati o n, th e Compen s atio n Committe e deter m ine s an d report s t o th e Boar d th e Ch i e f E x ecut i v e O f fice r ’ s compensat i on , inc l ud i n g sala r y , i ncen t iv e b o nu s an d p er f ormance - base d eq u it y c o m p ensati o n.

Th e Compensatio n Committe e als o r eview s an d app r o v es , o n a n a n nua l bas i s , t h e e v alua t io n p r oces s a nd c o m p ensati on s t ruc t u re of th e C o m p any ’s o t he r execut i v e o f f icer s a nd e v aluate s t hos e othe r officers ’ perf o rmanc e a t l ea s t annually . Ba s e d o n this evaluation , th e Com p e n sati on Commit t e e determ i ne s an d rep o r ts t o t he Boa rd t h e o t he r e x ecut i v e o f f i cers ’ compensat i on , i n clu d i ng sa l ary , i ncen t iv e bo n u s a nd e q ui ty c o m p ensati o n . Th e Compensat i o n Committe e als o review s on a n annua l basi s an d re c o mmend s t o t h e Boa rd t h e f o rm an d amou nt o f di r ect or compensat i on . In add i ti o n , t he C o m p ensati on C omm i tte e g ra n t s r estr i cte d stoc k an d o t her award s t o a s sociate s o f th e Com p an y a nd it s s ubs i dia r ie s p u r suan t t o t h e Compan y ’ s bene f i t a nd incen t iv e compe ns a t io n p lan s a n d r ep o rt s suc h acti o n s t o t he Boar d o f Directors . S e e “Corporat e Governanc e Matter s - Boar d o f Director s Ris k Management Over s i ght ” belo w fo r th e Committee’ s r o l e i n tha t process.

Th e Compensatio n Committe e ha s th e powe r t o d elegat e it s autho r it y t o s ubcommittees . Th e c h ai r o f an y suc h s ubcommittee mus t repor t re g ularl y t o t h e ful l Compen s atio n Committee.

The Board of D irectors has det ermine d tha t eac h m emb e r o f th e C o m p e nsa ti on Co mm itt ee i s a n i nde pe nde nt di rec t or i n accordanc e wit h t h e independenc e requirement s o f th e NYSE . Unde r suc h rules , th e Boar d ha s rev i ewe d t h e s o u rc e o f compensa t ion o f ea c h committe e m embe r an d whethe r eac h m embe r i s affiliate d w i t h t h e C o m p any , a ny s u b sidia ry o f th e Compan y o r a n a f f i lia te of a s u b s i d i a r y of t he C o m pa ny .

T he C o m p ensat i o n C o mmit t e e h el d t hre e meeti n g s duri ng th e fisca l yea r e n de d F eb r ua ry 1 , 20 2 0 . T he C ompensat i o n Commit t ee operate s unde r a Board-approve d cha r te r, a c o p y of w h ic h is a v aila b l e o n t h e Compa n y ’s w ebsit e a t w ww.cat o fash i ons.com/i n f o /i n vesto r - r elat i ons . Messrs . D . Ha r di n g Stow e ( Cha i r ) an d Ba i le y W . Patr i c k an d Dr . Pame la D avie s a re t h e m e m b ers of t he C o m pe n sa ti on Co m m i tt ee.

Corporat e Governanc e a n d N omina t in g Commi t tee

Th e Corporat e Governa nce and N ominating Com m itte e reviews , evaluate s an d recommend s nominee s f or t he B oa r d of Di rec t o r s. In a d di t io n, t h e C o r p ora te Go ve r na n ce a n d No m i na ti ng C o m m it tee m o ni t o rs a nd e v aluate s t h e pe r formanc e o f th e director s o n a p er i od ic b a s i s , in d iv i dua l l y a n d collectively . Th e Committe e a l s o periodicall y review s t h e Compan y ’ s Go v er n anc e Gui d eli n es , Co de of C on d uc t a nd C o d e o f Eth i c s an d r ecomme n d s cha n ge s t o th e B o ar d o f Di rect o rs. T he Boa rd o f Director s ha s determine d t ha t eac h membe r o f th e Corporat e Governa n c e a nd N o m i nat i n g C o mmi t te e i s a n independen t d irecto r i n accordanc e wit h th e i ndependence r eq u iremen ts of t he NYSE . Th e C o r p ora te Go v erna n c e an d N om i nat i n g C o mmi t te e hel d t h r e e meet i ng s durin g th e fisca l yea r ended Fe b r ua ry 1, 2 0 2 0 . T h e Co r p o r a t e Go ve rn ance a n d No m i na tin g Co mm i t t e e ope r ate s u n de r a Boa r d-a p p r ove d cha r ter , a co py of w hich is avai l a b l e on t he Compan y ’ s we bs it e a t www.cat o fash i ons.com/ i nf o /i n vesto r - r ela t io n s . Messrs . B r ya n F. Ken n edy , I I I (C h air ), T h oma s B. H enso n, Ba i le y W. Pat r ic k an d D. H ar d in g S t owe , Ms . T here sa J. D r e w an d D r. P a m el a L Da v ie s ar e t h e m e m b er s o f t he Corporat e Governanc e a nd Nomi n ati ng Comm i ttee.

CORPORAT E GOV E RNANC E MATTERS

Corporat e Governanc e Guidelines

In f u r t hera n c e of it s l o ngsta n di ng goa l of p r ov i di ng ef f ectiv e g o ve r nanc e o f t he C o m p any ’s b usi n es s an d a f fai rs f o r t he b ene f i t of s h areh o lde rs, t h e B o ar d o f D i r ecto rs ha s app r o v e d C o rp o ra te Go v ernanc e Guideline s fo r th e Company . Th e Guideline s ar e availab le on th e C o m p any ’s w ebsit e a t w w w.cato f as h io n s.c o m / in f o/ i nvest o r - re l atio ns .

Directo r I ndependence

T he Boa rd o f D i rect o r s mad e a d e t ermi n atio n a s to t h e i nde p endenc e o f eac h o f it s members . Th e B oar d of Director s determined tha t eac h o f th e followin g Boar d member s i s independent : Dr . P a mel a L . Davies , Ms . Theres a J . D r ew , M r . Th o ma s B . He n s o n , M r. B rya n F. Ke nne d y , I I I, M r. Tho mas E . M ec k ley, M r. B ailey W. Pa t r i c k an d Mr . D . H ar d in g S to w e . Th e Boa rd dete r m i ne d tha t M r. J o h n P . D . Ca t o , a n empl o ye e of th e Compa n y , i s no t i nde p ende n t . Th e Boa rd mad e t h es e dete r minat i on s base d up on t h e def i ni t ion of a n “i nde pe nde nt d i r ec t o r ” set f o r th i n t h e N Y S E l i s t in g sta n dard s ( t h e “NYS E I n depe n denc e Tests”) . A d i rec t o r w il l be i nde p ende nt on ly if th e di r ect or ha s no mate r ia l re l ati o nshi p w it h t he C o m p any . F o r pu r pose s o f suc h de t ermina t io n, th e Boa rd must aff i rmati v el y d etermi ne whethe r a materia l r elationshi p exi s t s betwee n th e d irec t o r a nd t he Compan y. Th is d ete r mi n ati on i s i n additio n t o th e analysi s u nde r t he N Y S E I n d e pe n d e nce Tes t s a n d SE C Exchang e A c t Rule s 10A- 3 (fo r Au d i t C ommi t te e mem b ers) a nd 1 0 C- 1 ( f or Compe ns ati on Comm i tte e mem b ers ) a nd m u s t b e base d o n t h e ove r al l f act s a nd circum s t ance s s pecifi c t o that director.

In o r d e r t o a s si s t th e B o ar d i n m ak i n g d e t er m i n atio ns o f i nde p ende n ce , a nd co n s i s t en t w it h NY SE Independenc e Tests , a d irector wil l no t b e deeme d independen t if:

(1) Th e directo r i s , or ha s bee n withi n th e la s t thre e years , a n e m pl o ye e of t h e C o m p any , or a n immediat e famil y m embe r is , or ha s bee n wit h i n th e las t t h re e years , a n executiv e office r o f t h e Compa n y .

(2) Th e d irecto r h a s received , o r a n immediat e f amil y membe r h a s r eceived , durin g an y twelve-mont h perio d withi n th e last thre e years , m or e tha n $ 120,00 0 in d i rec t c o m p ensat i o n f r om t h e Compa n y , ot h e r t h a n d irec t o r an d committe e fee s and pe ns io n or o t h er f o r m s o f de fe r r e d c o m p ensati on f or p r io r se r v i c e ( pr o vi d e d suc h compe n s a t io n is n o t co n ti n gen t i n a ny way o n c o nt i nue d se r vice ).

(3) Th e d i rect o r o r a n i mm edia te f a m i l y m e m be r i s a cu r re n t pa r t ne r o f a f ir m t h a t i s th e Compa n y’ s i n terna l o r externa l au d itor; th e directo r i s a curren t emplo y e e o f suc h a fir m; th e directo r ha s a n immediat e famil y memb e r w ho is a cur r en t em p lo y e e of suc h a f ir m a nd p ers o nall y w o r ks o n th e C ompan y ’ s au d it ; o r t he d i rect or or a n i mm edia te fa m il y m e m b e r w a s wi t hi n t he las t thre e year s (bu t i s n o longer ) a p a r t ner o r e m pl o y ee of s uc h a f i rm an d pe rs ona l l y wo r ke d o n t h e C o m p any ’s a u dit w i th in tha t t i m e .

(4) Th e directo r or a n immediat e famil y m embe r is , o r h a s bee n withi n th e las t thre e years , em p loye d a s a n executiv e office r o f anothe r compan y wher e an y o f th e Company’ s pre s en t executiv e officer s a t th e s am e tim e serve s o r serve d on that company’ s compe n satio n c o mmi t tee.

(5) Th e d irecto r i s a curren t emp l oyee , or a n immediat e f amil y m embe r is a c u r r en t e x ecut i v e o f f i cer , o f a compan y tha t h a s mad e payment s to , o r r eceive d payment s from , th e Compan y fo r p r opert y o r service s in a n amoun t which , in an y o f th e last thre e f i s c a l years , exceed s th e greate r o f $ 1 mill i on , o r 2 % o f suc h o t he r compa n y ’s co ns oli d ate d g r os s reve n ues.

A dd i ti o nal l y , th e Boa rd of D i rect o r s de t ermine s an n ual ly an d a t s u c h t i m e t h a t a di r ecto r i s app o in t e d t o t h e Compensa t ion Committe e tha t th e m ember s o f th e Compensatio n Committe e quali f y a s “ou t s i d e d i r ecto r s ” u n de r S ecti on 16 2 (m ) o f t he I nte r nal R even ue C o d e (t he “ C ode”) , an d qualif y a s “Non-Employe e Directo rs” u nde r R u le 1 6 b -3 o f the Ex c ha n ge A c t.

Boar d Leader s hi p S t r u cture

M r . J o h n Cat o has se r ved i n t he c o m b ine d r ol e o f Ch a i r m an of th e Boar d o f Director s an d Chi ef E x ecutiv e Office r ( “CEO”) sinc e 2004 . Th e Boar d annuall y c o n s ide rs h is ef f ecti v ene ss i n bot h capacities . T he Boar d believe s tha t it s curren t governance s t ruc t u re p r ov i de s i n depe n den t Boa rd l eaders h i p w hi le de r iv i n g bene f i t fr o m hav i n g th e C E O ser ve a s th e Boa rd cha i r . Th is st ru cture p r o vi d e s a n op p o r tu n it y f or th e in d iv i dua l w i t h pr i ma ry resp o n s ib i li ty f o r manag i n g t he Compa n y’ s day - to - da y o p erat i on s i n a h i s t o ri cal l y v o l a t i l e in d u s t ry segmen t to chai r m e eting s of th e Boar d a s i t discuss e s ke y busines s an d strategi c is s u e s . Th e Boa rd also be lie ves ha vi ng t he p o s i t io ns c o m b ine d fac il i tate s th e i m p l e m e n tat i o n a nd execu t io n of b ot h t h e Compa n y’ s s h o rt - an d l on g -te rm s t rate g ie s wit h a sin g l e vis i on.

As Lea d I nde p ende nt D i r e c t o r, Mr . B r ya n Ken n edy , I I I a ss i s t s t he Boa rd i n p r o vi d in g in d epen d en t ove rs ig ht of t h e C o m p any ’s o pe r ati o ns , sho r t - a nd lo n g- t er m st rate g i c plan s an d t he C h ai r ma n an d CEO’ s p erformanc e an d com p ensati on am o n g ot h e r d u ties. Th e L ea d Independen t Director , t h r o u gh hi s r ol e a s cha ir of t he C or p o r at e Go v er n anc e an d N omina t in g Comm i ttee , als o manage s t h e proce s s o f annua l directo r self - assessme nt an d eva l uati on o f t h e Boar d a s a whole.

Executiv e Session s o f N on-Manage m en t Directors

N on - managemen t B o ar d m ember s m ee t wi t ho ut ma n ageme nt a t re g ula r l y s chedule d executiv e s e ssio n s . In ad d it i on , t o t he e x tent t ha t t h e g r o up o f n o n-mana g eme nt director s include s d irector s tha t a re no t independent , a t leas t onc e a yea r t her e wil l b e s c h eduled a n e x ecut i v e s essi on inc l ud i n g o n l y i n depe n den t d i rec t ors . T he Lea d I nde p ende nt D i r ecto r p resi d e s o v e r m eetin gs of th e n o n- ma na ge m e nt o r i n depe n d e n t d i rec to rs.

Boar d o f Directo r s Ri s k Manage m en t Oversight

As t h e Compa n y ’s p ri n cipa l go v e r n in g b od y, t h e Boa rd o f Di r ect o r s ha s th e ulti m at e respon s i bilit y fo r o v e rs eein g th e C o m p any ’s ris k m anagemen t practices . A s pa rt of it s o vers i gh t f u nct i on , t he B o ar d rev i ew s an d m on i to rs f i nanc i al , st r ategi c an d ope r ationa l risk t h r ou gh ann u a l an d pe r io d i c re v iew s wi th ma n agement.

Pu rs uan t t o i t s cha r ter , t he Au d i t C o mmi t te e ha s p r imar y r esp o nsib i lit y f or m o n itori ng f i nanc i a l re p or t in g ris k. As p ar t of i ts respo n sib i lit i es , th e C o mmit t e e review s wit h m anagemen t a nd th e in d epen d en t au d it o r s th e Compa n y ’s p o lic i e s i n r egar d to risk assessmen t an d managemen t an d asses s e s th e s tep s m anagemen t ha s t ake n t o m i nimiz e r isk s t o th e C ompan y. T he Commit t ee r eg u lar ly meet s w it h th e i nde p ende nt au d it or a nd mana g emen t, a s appropria t e , to r evie w sig n if i can t fi n a n cia l rep o r t in g issue s and j ud g me n t s ma de i n co n nect i o n w it h t h e p r epa r ati on o f th e C o m p a n y’s financial st a tements. The A udi t Committe e als o review s the e f fec t ive n es s an d i nteg r i ty o f t he C o m p any ’s f i n ancia l r epo r tin g proces s e s an d th e Company’ s interna l co n tro l s tr u ctur e ( i n clu d in g b ot h d i sc l o s u r e c o n tr o l s a nd p r oced u re s an d i n ter n a l con t r ol o v e r financia l r epo r ti n g ).

A s par t o f i ts o v ersig ht resp o nsib i li t ies , th e Boar d o f D i rect o r s rel i e s u p o n th e Compe n sa t io n C o m mit t e e t o m on i to r a nd assess th e Company’ s compensatio n poli c ie s an d pr a ctice s a s the y r e l at e to r is k ma n agemen t an d r i s k - t aki ng i ncen t ives . O n a n an n ua l basis, th e Committe e review s th e Compa n y ’ s c o m p ensati on po l icie s a nd pr a ctice s to determin e ho w i t compensate s an d incentivize s its associate s an d whethe r thes e p olicie s an d practice s creat e ri s ks t ha t ar e r eas o nab ly like ly t o h av e a materia l advers e effec t o n t he C o m p a n y.

Compensatio n Co m mitte e Interlock s an d Ins i d e r Participation

T he C o m p ensati on Comm i tte e consis ts o f Mess r s . D . H ard i n g Sto we an d Ba i le y W . P at r ic k an d D r . P amel a L . D avies . S in c e the be gi n ni ng of t he Co m pa n y ’s last fisca l year , n o membe r o f th e Co m p ensati on C o mmit t e e i s o r ha s bee n a n office r or employe e o f t he Compan y an d n o executiv e o ffice r o f th e Compan y serve d o n th e c ompensa t io n commit t e e o r b oar d of a ny compan y t h a t emp l oyed an y membe r o f th e C o mpany’ s Compensatio n Co m mittee or the Boa r d .

Cod e of Et h i c s an d Cod e of Bu s i n es s Cond u c t a n d Ethics

T he Compan y ha s ado p te d a w r i tte n Cod e o f Ethic s ( th e “Cod e o f Eth i cs” ) tha t app l ie s t o t he Compan y ’ s Ch i e f Exec u ti ve Office r (principa l executiv e off i cer) , Chie f F inancia l Office r (principa l f in a n cia l officer) , an d Controll e r (principa l accou n t in g o f f ice r ) . Th e C o m p an y h a s ado p te d a C o d e of B u s i nes s Co n duc t an d Et h ic s ( th e “C o d e o f Co n duc t ” ) tha t applie s to al l directors, officer s , an d associate s of th e Co m p an y. Th e Co de of Et h ic s a nd Cod e o f Conduc t ar e a v ailabl e o n th e Company’ s websit e at w ww.cat o fash i ons.com/i n f o /i n vesto r - r elat i ons , u n de r th e “Co r po r at e Governance ” caption . An y amend m ent s t o th e Cod e o f Ethics or Cod e o f C o nd u c t w it h res p e c t t o d i rec t or s o r execu t iv e o f fi c e rs w i l l b e d isclose d o n t he Compa n y ’s websi te p r ompt ly f o l lo w ing t h e da te o f s u c h amendmen t. In ad d it i on , an y wai v er s o f th e C o d e o f Eth i c s , o r wai v er s o f t he Cod e of C o nd u c t wi th r e s p ec t t o director s o r executiv e officers , wil l b e m ad e onl y b y th e Boar d or a designate d committe e thereof , an d w i l l b e d isclose d wi t hi n f o u r b u s i ne s s d ay s .

Ins i der Tr a d i n g a n d H e d g i n g P o l i c i es

T he C ompan y ha s es t abl i s h e d p o licie s p r o h ib i ti ng di r ecto r s , o f f icer s an d a s sociate s fro m purc h asi ng o r s e l li ng Cat o s ecurit i es whi le in p o s sessio n o f material , no n pu b li c i n f o rmati o n . T he C o m p an y als o h a s esta b lishe d po l icie s tha t acknowledg e Company associate s m a y b ecom e awar e of mate r ia l no n pu b li c in f o r mat i o n o f o t he r compan i e s i n th e c o urs e o f t h ei r ass o ciati on wit h Cat o. Al l directors , officer s an d associa tes a re p r o hi b ite d f r om p u r cha s in g or s elli ng securitie s o f ot h e r compan i e s w hi le t he y ar e in possession o f , o r awa re o f, s uc h in f o r m at i o n a nd f ro m passi ng s uc h i nf o rm a ti on o n t o o the r pe r s o n s o r enti t ie s wh o m i gh t pu r chas e o r s e ll t he securitie s o f suc h othe r companies.

In a d di t io n, no d i rec t or , o ff ice r or associa te o f th e C ompan y m a y enga ge i n a ny t r ansact i o n in w h ic h t he y ma y p r o fi t f r o m sho r t- t er m sp eculat i v e s win gs i n t h e valu e o f th e Company’ s securiti e s . T h i s p ro h ib i ti on incl u de s “s h or t sales ” (sel l in g b o r r owe d s ecurities to p rofi t i f th e m arke t p ric e of th e C o m p any ’s stoc k dec r eases ), “ p ut ” o r “ca l l ” o pti o n s ( pu b lic ly ava i labl e ri g ht s to s el l o r buy securitie s withi n a certai n p eri od o f tim e a t a s pecifie d price ) a n d he d gi ng or a ny o th er t y p e of de r i v a t i v e i ns tr u m e nt de s i g n ed t o mi n imiz e th e r i s k inhe r en t in ow n in g t h e Compan y ’ s stock.

Communication s wit h Directors

Al l i n teres t e d partie s ma y commu n icat e directl y wit h an y membe r or committe e o f th e Boa rd o f Di r ecto r s , o r an y g r o up of d irectors , b y writi ng t o: Cha ir o f th e C o r p ora te Go v erna n c e an d N o m i nat i n g C o m m i t tee , c /o O f fic e o f th e Corporat e S ecretary , T he C at o Co r po r ati o n , 8 10 0 De n ma rk Road , Cha r lo t te , N o rt h Ca r ol i n a 28 2 73 . D epen d in g on t h e s u bjec t m atte r, th e Cha ir o f t he C or p o r at e G o ve r nanc e an d N omina t in g Committee , w it h th e assis t a nc e o f th e Company’ s V ic e President , G enera l Counse l w ill d etermi ne w h e t he r t o f orwar d i t to t he directo r o r d i rect o r s t o wh om it i s ad d ressed , attemp t t o h and le th e i nq u ir y di r ectl y ( f o r e x a m p le , whe re i t i s a re q ue st f or i n f o r ma ti on a b o u t t he C o m p a n y or i t is a s t o ck- r ela t e d m a t ter ), or n ot f o r w ar d t h e co m m u nic ation if i t i s primar i l y commercia l i n n atu re o r i f i t re l ate s to a n impr o pe r or irrele v an t t o pic.

I f t h e s u bjec t m at t e r in v ol v e s a m atte r relat i n g t o a cc o un t in g, interna l accountin g control s o r auditin g matters , th e Vic e Pr e sident, Genera l Co u nse l or o t he r desig n ate d c o m p lia n c e o ffice r wi ll re p or t t he mat t e r to t he Chai r o f th e A ud it Comm i tte e a nd also , unless directe d otherwi s e b y th e Audi t Committe e i n cas e suc h office r i s s ubjec t of a complain t relatin g t o suc h m atters , advis e t h e C h ief Executiv e Office r an d Chie f F ina n c i a l Officer . Th e Audi t Commi t te e wil l d etermin e wha t action , i f an y, s ho u l d b e take n i n clu d ing investigatio n o f t h e m atte r i f n ece s sary . T he Offic e o f th e Co r porat e Secretar y an d Chai r o f t h e A u di t Comm i tte e w i l l i n vesti g at e the matter , i f n eces s ary , an d fil e a r epor t wit h t h e A udi t Committ e e . Th e Au d i t Comm i ttee , a t it s discreti o n , m a y d iscus s t he matte r w ith th e Boar d o f Director s .

Th e Vic e President , Genera l C ou n se l w i l l ma i nta in a l og of al l complaints , trackin g thei r receip t, investigation , an d resolut i on a nd wi ll p r epar e a pe r iod ic s u mmar y ther e of fo r th e Boar d o f D i r ec t o r s, a nd th e A u di t C ommittee , a s appropriate.

Directo r Nominatio n Criteri a an d Proce s s

Director s ma y b e nominate d by t he Boar d o f D irector s i n accord a nce w it h th e C o m pa ny ’s Byla ws or by s hare h ol de r s i n accordanc e wit h th e procedure s s p ecifi e d i n Arti c le II, Section 3 o f th e Company’ s Bylaws . T he Compa n y ’s Co r po r at e Governance a nd N omina t in g Commit t e e wi ll c o nside r al l nominees , includin g an y submi t te d b y s h are h ol d ers , f or th e Boar d o f D irector s . The assessme nt o f a nomi n ee’ s qua l if i cati o n s wi ll inc l ud e a r e v ie w of Boa rd of D i rect or q u ali f icat i on s a s descr i be d i n th e C o m p any ’s Corporat e Governanc e Guideline s .

As s peci f ie d i n A r tic le I I , S ecti on 3 o f t he C o m p any ’s By l aw s, n o tic e of a s ha r eho l de r nomi n ati on f o r a d i r ec t o r n o m i ne e to be considere d a t a n A nnua l Meetin g mus t b e i n writin g an d receiv e d b y th e Sec r e t ar y o f th e C o m p an y a t t he Compan y ’ s p ri n cipal e x ecut i v e o f f i ces , 8 1 0 0 D enmar k R oad , Charlotte , Nort h C a r olin a 2 82 7 3- 5 9 7 5 , n o la t e r t h a n 9 0 day s p r io r t o t h e an n ive r s a ry of t he precedin g year’ s A nnua l M eetin g (n o late r tha n F ebruar y 20 , 2 02 1 i n t he cas e o f t h e C o m p any ’s 2 0 2 1 An n ua l Meeti n g) . T he shareholder’ s notic e mus t als o se t forth , w it h r espec t t o an y directo r nominee , h i s or he r name , age , busines s an d residential addre s ses , principa l o c cupation , th e clas s an d numbe r o f share s o f t he Compan y ow n e d b y th e n ominee , t he nomi n ee’ s co n s e nt to b ein g name d i n t he p r ox y s ta t eme nt an d ser v in g i f elec t ed , a nd an y o the r i n f ormat i o n r equ i re d by th e p r o xy r u le s of t he Secu ri t i es a nd Exc h ang e C omm i ssi on p urs u an t to Re g ulat i o n 14 A o f th e E x chan ge Act . Th e n ot i c e m u s t als o i ncl u d e t he nam e an d add r es s of t h e nomi n ati ng share h ol d e r a s it appea rs on th e C o m p any ’s st o c k transfe r record s an d th e clas s an d numbe r o f share s of the C ompan y b enef i cial ly ow n e d b y t he n ominat i n g sha r eho l de r.

Th e Corporat e Governanc e an d N o m i nat i n g Commit t e e wil l s elec t qual i f i e d cand i date s an d r evie w i t s recommenda t io ns f o r n ominee s w it h th e f ul l Boa rd o f D i rect o rs . De p e n di ng on t he ti m i ng o f co n s i de r a t io n o f a cand i dat e an d s uc h o the r fac t or s a s i t d eem s ap p r o pr i ate , t h e Boar d o f Direc t or s wil l d e c i d e w h e t he r t o in v it e t he ca n di d at e t o j o i n t he Boar d o r t o s ta nd f or elect i o n a s a nomine e a t a n Annua l M eetin g o f t he Compa n y . Th e B o ar d bel i eve s t h a t g r eate r di v er s i ty l e a ds t o bet t e r co r p o rat e go v erna n c e a n d t ha t p ote n tia l n o m inee s s ho u l d p o ss e ss a d i ve r s e a nd exte ns iv e bac k g r ou nd o f kn o wle d g e an d bo th p r o f essi o na l a nd li fe expe r ie n ce tha t ca n s uppor t growth , evaluat e r is k a nd p r o vi de suffic i en t o versigh t t o t he Compa n y . N o m i nee s f o r directo r w il l b e s electe d o n t he b asi s o f t he di v ersi ty t he y b r i n g to t he Boa r d , o u tstan d in g ach i eveme nt in t h ei r pr o fessi o na l careers , broa d experience , wisdo m, charact e r, integrity , abilit y t o m a ke i nde pe nde n t , ana ly t i cal i n qu i rie s an d i nte l lige nt decis i ons , s o un d m at u r e b u s i nes s j ud g m ent, u n d e rs tan d in g of t he b u s in ess e nv i r o n me nt , wil l in g n ess to d e v o t e adequat e tim e t o Boar d d utie s an d abilit y t o collaborat e eff e ctively a t th e Boar d level . Th e Boar d furthe r believe s tha t eac h direct or s h o ul d hav e a b asi c u n ders t and i n g of ( i ) th e p r i nci p a l o p er a t i onal a nd f i nancia l o bjec t ive s a nd pla ns an d s t r ateg i e s o f t h e C ompan y, ( i i ) t he r es u lt s o f o p erat i on s an d f i nanc i a l c o nd i ti on o f t he C o m p a n y a n d of a ny s ig n i f i ca n t su b s id ia ri es or b u s ine ss se g me n t s , an d (i i i ) t h e re l ati ve s t and i n g of t he Compan y an d i t s bus i ness se g m e n t s in rela t io n to it s compet i tors.

Th e Boar d wil l h av e a majorit y o f d irec t o rs w ho mee t th e cr i ter ia f o r i nde p ende n c e r equ i re d by th e N Y S E . Th e C o rp o ra te G ove r na n c e an d N ominat i n g Commit t e e i s responsibl e fo r reviewi n g wi th th e Boa r d , o n a n an n ua l basis , t h e r eq u isit e s k il ls and charact e r istic s t ha t th e Boar d seek s i n B oar d m ember s a s wel l a s th e comp o s i ti on o f t h e Boar d a s a wh o le . T he B o ar d w il l also e v alua te o n a n a n nua l basi s whet h e r membe rs qua l i fy a s i n de p e n d e nt u n de r ap p licab le s tan d ar d s . D u r in g th e cou r s e o f a yea r, director s ar e expecte d t o infor m t he Boa rd of a ny m ate r ia l c h ange s i n thei r circumstance s o r relation s h ip s tha t m a y impac t th e ir d esig n atio n b y t he B o ar d a s in d epen d ent.

EQ UI T Y COMPENSATIO N P L A N INFORMA T ION

T he f o llo w in g tab le s et s f o rt h i n fo rm a t io n re g ar d in g th e sha r e s o f th e Co m p any’ s Clas s A Stoc k an d Clas s B Stoc k issuable u n d e r al l o f t h e Compan y ’ s eq u it y compe ns atio n plan s a s of Febr u ar y 1, 2 0 20:

| Plan Category | (a) Number of securities to be issued upon exercise of
outstanding options, warrants and rights | (b) Weighted-average exercise price of outstanding
options, warrants and rights | (c) Number of securities remaining available for future
issuance under equity compensation plans (excluding securities reflected in
column (a)) |
| --- | --- | --- | --- |
| Equity compensation
plans approved by security holders (1) | | | 4,258,876 |
| Equity compensation
plans not approved by security holders | -- | -- | -- |
| Total | -- | -- | 4,258,876 |

(1) This category inc l u d e s 4,1 9 2,66 7 s ha r e s o f C l as s A S t o c k a v ailabl e fo r futur e issuanc e und er T h e Ca to C o r p o ra tio n 2 01 8 I ncen t iv e Compensat i o n Pla n a nd 66,2 09 s h are s of Clas s A S t oc k availabl e fo r futur e issuanc e un der T he C a t o C o rp o r at io n 2 0 1 8 Empl o ye e S t oc k Purc h as e Plan.

2 0 1 9 EXECU T IV E COMPENSATION

Compensatio n Disc u ssio n an d Analysis

Overview of Compen s at i on Pr o g r am f or Named Executive Officers

Pa y f o r pe r fo r manc e an d r ete n ti o n , bo th a t t he co r po r at e an d in d ivi d ua l l evels , i s th e o ve r ri d in g ph i los o ph y beh i n d t he desig n o f th e compensatio n progra m fo r N a me d Executiv e Off i cer s (“NEOs ” – se e “Summar y C o m p ensati on Ta b le” ) a t Th e C at o C or p orati o n. T he Compe n satio n C o mmit t e e ha s es t abl i s h e d t hi s p hi l osop hy to m o t iva te supe r io r i nd i vi d ua l an d t ea m performanc e amon g the e x ecut i ves . T he element s of t h e c o m p ensati on p r o g ra m ar e designe d to r ewar d h i ghe r leve ls o f per f o r ma n ce , wh i c h t he C ompensat i o n C ommi t te e be l ieve s w il l attrac t an d re t ai n q ual i fie d an d hi g h- p er f o r m i n g e x ecut i ve s an d, in t u r n, r esul t i n i ncre ased productivit y an d m or e effectiv e executio n o f s t rategi c decisions , lea d in g ul t imatel y to main t ain i n g a c o m p eti t iv e e d g e w i th in t he retai l i nd u str y.

NEO s r e c eiv e a bas e salar y t ha t recognize s t h e v alu e of e x ecut i v e t alen t withi n th e retai l marketpla c e , an d t hes e s alaries g ene r all y inc r eas e a n nua l l y b ase d u p o n i nd i vi d ua l a nd Compa ny p er f o r ma n ce. Th e C o m p a ny al so pr o vi d e s N EO s wi th a n a n nual cas h ince n ti ve op p or t un i t y d esig n e d t o re w a rd ac h ievemen t o f a n nua l bu s ines s objective s , whi c h th e C o m p ensati on Commit t ee b elie v e s w i l l transla te i n t o l o ng-ter m shareho l de r v alue.

Th e Compan y grant s a n nua l eq u it y ince n ti ve award s t ha t a l lo w NEO s th e opportunit y t o accumula te l ong-term capital in t he f o rm o f C o m p an y stoc k, i n o r de r t o al i g n NEO s w it h s ha r eho l de r interest s an d encourage s rete n ti on t h r ou gh f ive - yea r ves t ing sc h edu l es , wit h vesti ng n o t b egi n ni ng u nt il yea r t h ree . Th e C o m p ensati on C o mmit t ee’ s i n ten t i s t o con t in ue inc l ud i n g ann u a l eq u ity i ncen t iv e a w ard s a s a n e l eme nt o f NE O c o m p ensati o n . Th e Compe n s atio n Committe e al s o impose s s tron g s toc k o wnership requirement s fo r equit y incentiv e award s whic h provid e t ha t al l lo n g - ter m i n cent i v e (“LT I ” ) el i gibl e associates , includin g NE O s, mus t c o nti n u e t o main t ai n a m u ltipl e o f t hei r b as e salarie s i n Compa ny s t oc k a f te r g i vi ng ef f ec t t o an y sal e o f veste d res t ri ct e d s t ock.

T he Compa ny mai n tain s a n o nq u alifie d deferre d c o m p e ns ati on p la n a s a compe t iti ve meas u r e tha t th e Compan y be l ieve s will assis t i n attracti ng an d retain i n g q u alifie d a nd hi g h-perform ing associate s an d t o allo w as s o c i ate s whos e abilit y t o contribu t e t o the Company’ s 401(k ) pla n ar e limite d u n de r d i s crimina t io n test i n g t o d efe r cu r re nt c o m p e ns ati o n . Th e p l a n i s g ene r all y ope n t o assoc i ate s in ma n agement , i ncl u di ng NEO s an d al l mem b er s o f t he B o ar d of Di r ecto r s . Th e Compa ny doe s no t mak e con t r i bu t io ns t o th e plan.

T he Compan y p r ov i de s it s N E Os w it h th e s am e cor e benefit s t ha t ar e offere d t o al l ful l - t im e sa l a rie d ass o ciates . NEO s d o not hav e employmen t o r chang e o f contro l agreement s ( se e “E x e c u ti ve A g reement s an d P o ten t ia l Pa y m en ts o n Termi n atio n or C h a n ge of Co n t r ol” ).

Say - o n -Pay and Say - on - Freq u ency Resu l t s

Th e Compensatio n Committe e reviewe d t he re su lt s o f t he n o n- b in d in g “say- o n - pay ” p r o posa l i n t h e f i sca l 2 0 1 9 p r o x y sta t eme n t, whic h wa s th e mo s t recen t advisor y “sa y o n p ay ” vot e b y th e S ha r e h ol d ers . A m aj o r i t y ( 6 6% ) o f ou r sh areh o lde rs w h o v o te d o n o u r “say -o n - pa y ” p r o p o sal a p p ro ved ou r e x ecut i v e compe n s a t io n a s d esc r i b e d i n o u r fisca l 2 01 9 Compensat i o n D iscussio n an d A nal y s is an d tabula r d isclosures . T he C o mpe n sati on C o mmit t e e di d n ot imp l eme nt cha n ge s a s a d i rec t resu lt o f t he vo t e . T he Compensa t ion C ommi t te e wil l re v ie w th e resu l t s o f t he v o t e at t he 20 20 A n n ua l M eetin g an d w i l l determ i n e if a ny c h ange s s h ou ld be m a de t o t he c o m p ensati on p r o g ram , a s a r es u l t of t he vo te o r ot h e r w i se . Th e Compe ns ati on Comm i tte e wil l a g ai n su b m it it s exec u ti ve c o m p ensati on p r og r a m t o a n on - bi n di ng share h ol d e r “say - on - pay ” a t t he 2 02 1 A nn u a l Meeti n g.

T he C o m p ensati on C ommi t te e ha s d ecide d t h a t t h e Compan y w il l h o l d a n adv i sor y v ot e o n t he compe n sati on of NEO s ann u ally u nt il t h e ne xt r equ i re d vo te o n th e f r eque n c y of s ha r eh o lde r v o te s o n executiv e compensation , w hic h w e expec t to occu r a t the C ompan y ’ s 20 23 An n ua l Meet i ng.

External Benchmarking for Named E x ecutive Officers

In r evie w in g th e N E O s ’ compe n s a t io n str u ctu r e , t h e Commit t e e r e l i e s on mul t ip le e x te r na l be n chmar k in g s o urces , inc l ud i n g ( 1 ) a c u stomize d p ee r g r ou p o f c o mpe t it o r s an d o the r reta il compan i e s w i th in a reaso n abl e re v enu e r ange , an d ( 2 ) we b - b ase d d at a t o stay a b reas t o f cur r en t c o m p ensati on practice s an d t o determin e geo g r aph ic c o s t of l i vin g di f fe r ences.

Pee r Group

I n 2 01 9, th e C o mmi t te e decide d t o maintai n th e sam e pee r grou p a s 2018 . T h e pee r grou p reflect s thos e comp a n ie s believe d t o be mos t compara b l e t o th e C ompan y base d on seve r a l fac t ors , i n clu d in g, f o r example , re v enue , marke t capi t alizat i on , n u m b e r of s tores, n umbe r o f em p lo y ee s a nd s ha r eho l de r s ’ eq u it y. In a d dit i o n to t h es e factors , th e C ompan y ha s chose n t o includ e companie s that recr u i t fro m a simi l a r can d idat e p o ol.

Ascen a Retai l Gro u p , Inc.	Cit i Tr e n d s, I nc .	R T W R eta il w in d s , I nc.
B uck le Inc.	Desti n atio n Mater n it y C o r p oration	S h o e Carn i va l Inc.
C hic os Fa s I nc	E x p r ess , Inc.	S ta ge St o res , I nc.
Th e Children’ s Plac e Reta il S t ores , Inc.	J . Jill , Inc.	S te in Mar t, I nc.
C hr i sto p he r & Ba n k s Co r p .

I n 2 020 , th e Committe e as s esse d an d de c i de d t o ad d thre e compa n ie s an d re m ov e t w o c o m p anie s f r om t h e pee r g r ou p a s desc ri bed a b o v e f o r 2 01 9. Des tin at io n Mate r ni ty Co r p o r a t i o n was r emove d f r o m th e g r o up f o ll o wi ng ba n k r up t c y f i lin g. T he Children’ s Plac e Retai l S tores , I nc . wa s remove d a s i t i s n o l o n g e r v i ewe d a s compa r able . F ra n cesca ’s Ho l di n g s Co r p. , Ti l ly ’ s , Inc., an d Zumiez , Inc . hav e bee n added , bas e d o n t he fac to rs de s c r i b e d abo v e.

As cen a Retai l G r o u p , I nc.	E x p re ss , Inc.	S ta ge St o res , Inc.
Buckl e Inc.	F rancesca’ s Hol d i n g s Co r p.	Ste in Mar t, I nc.
Chicos Fas Inc	J .
Jill, I nc.	T illy ’ s, Inc.
C hr is to p he r & Ba n k s Co r p .	R T W R eta il w in d s , I nc.	Z u m iez, I nc.
C it i Tre n ds , Inc.	S h o e Carn i va l Inc.

C ompeti t iv e Posit i on i n g o f Name d E xecutiv e Officers

T he CE O i s compa r e d t o t he i n dus t r y pee r g r o u p base d o n c o m p a t ib le t itl e m atch , whi le t h e o the r NEO s ar e c o m p are d t o r etail surve y m atche s base d up on j o b c o nte n t . Th e C o m mit t e e bel i eve s an n ua l e q ui ty awa r d s a l lo w i t to empl oy a l eve r a g e d p a y st r ategy f o r NEOs . Th e CEO ’s b as e s ala ry i n 201 9 comprise d approximatel y 2 6 % of h is ta r ge t t o ta l di r ec t co m pe n s a t io n, w h il e th e o t he r NE O s’ ba se sa l a r ies ra nge d f r om 4 3% t o 4 5 % o f t he i r t ar ge t t o ta l d i rec t compe n s a t io n. Th e CEO ’s bas e salar y in 20 20 wi ll compr ise a p p r ox i ma t el y 2 6% of h is t a r ge t t ota l d i r ec t com p ensat i on , wh i l e th e o t he r NEOs ’ bas e s alar i e s wil l c o m p ris e ap p ro x imatel y 4 5 % o f thei r targe t tota l d i r ec t compensat i on.

Targe t t ota l direc t compensatio n i s d efi n e d a s b a s e s a l a ry p lu s t arg e t annua l cas h incentiv e opp o r t un i t y p lu s ta r ge t ann u a l eq u ity o p p or t un i ty . F or 2 0 19 , to t a l di r ec t compensat i o n o f NEO s wa s be twee n t h e 25 th a nd 7 5 t h percentile s of th e appropriat e market . In 2020 , th e Committe e als o establish e d targe t t ota l direc t compe ns a t io n o f NEO s be t wee n t h e 2 5 t h a nd 7 5 t h pe r ce n t ile s o f t he a p propriat e mar k et.

T o ta l direc t c o m p ensati on fo r an y particula r N E O m a y f al l abov e or belo w t he p e r cen t ile s d iscusse d a b ove , d epen d in g u po n t he C ompan y ’ s f i nancia l per f o r ma n c e an d t he NEO ’s i n di v id u a l pe r f o rmance , experienc e i n t h e functio n and/o r tenur e wit h the C o m p a n y.

C ompo n ent s o f C o m p ensati on

O u r c o m p ensati on p r og r a m i s desi g ne d ar o u nd att r acti ng an d re ta in i n g ta l e n te d lea d ersh ip an d t o r ewa rd the m f o r ac h iev i n g key st rate g i c and f ina nc ia l m et r ic s. Th e c o m pe n sa ti on p r o gra m p r o v i de s a bas e s alary , a cas h incentiv e bonu s l inke d t o p re-tax , p r e- b o n u s i n c o m e t a r ge t s, a n d a lo n g-ter m equit y progra m designe d t o alig n exec u ti v es ’ i n teres ts wi th s hareho l de r in t erest s an d t he long- t er m pe r fo rm anc e o f th e C o m p any . Th e f o ll o wi ng tab le pr o vi d e s a s ummar y of compe n sa t io n compo n ents , ob j ec t ive s an d detai ls wit h respec t t o eac h co m ponen t fo r fisca l 2019.

C o m p e n s a t i o n C o m pon e n t O b j e c t i v e s a n d K e y F e a t u r e s H i gh li gh t s f o r F i s c a l 201 9
F I X ED	Ba s e S a l a r y * P r o v i d e s a pp r op r i a te f i xe d * I n f i s c a l 201 9 i n c r e a s e r e l a t e d to c a s h c o m p e n s a t i o n n e c e ss a r y C o r po r a te a nnu a l m e r i t i n c r e a s e . to a tt r a c t a n d r e t a i n exe c u t i v e s * R e f l e c ts po s i t i on ' s r e l a t i v e v a l u e i n t h e m a r k e t p l a c e , t he exe c u t i v e ' s s c op e a n d b r e a d th o f r e s pon s i b ili ty a nd i nd i v i du a l c on t r i bu t i o n
AT R I S K	* P r o v i d e s i n c e n t i v e f o r s ho r t- * E a r n e d a w a r d s f o r f i s c a l 2019 A nnu a l C a s h t e r m p e r f o r m a n c e a c r o s s w e r e t i e d to p r e - e s t a b li s h e d g o a l s I n c e n t i v e m u l t i p l e m e t r i c s f o r : * Fo c u s e s exe c u t i v e s o n * P r e - T a x , P r e - B onu s I n c o me a c h i e v i n g s p e c i f i c a nnu a l m e t r i c u t ili z e d to d e t e r m i n e f i n a n c i a l a n d op e r a t i n g r e s u l ts bonu s p a y ou t. a li g n e d w i th ou r bus i n e s s * B onu s p a y ou t n e v e r ex c ee ds s t r a t e g i e s 100 % o f i n c e n t i v e oppo r t un i t y . T o t h e ex t e n t t h a t t h e C o m p a n y ex c ee d s p e r f o r m a n c e
t a r g e t, a c on t r i bu t i o n i s m a d e to E SO P p r o g r a m f o r a l l qu a li f i e d e m p l o y ee s ( o v e r a g e 21 , w o r k e d 1 , 00 0 hou r s & e m p l o y e d o n l a s t d a y o f p l a n y e a r ) . * N on e o f ou r N E O s r e c e i v e d a g u a r a n t ee d bonu s f o r 2019 . * A nnu a l i n c e n t i v e B onu s p a y ou t p e r c e n t a g e b y y e a r oppo r t un i t i e s r a n g e f r o m 75 % a s f o ll o w s : to 150 % o f b a s e s a l a r y . Ba s e d 201 9 100% o n C o m p a n y p e r f o r m a n c e 201 8 90% a g a i n s t t h e p r e - e s t a b li s h e d 201 7 0% g o a l s p a y ou ts r a n g e b e t w ee n 201 6 0% 0 % a n d 100 % o f t h e a nnu a l i n c e n t i v e oppo r t un i t y . * U s e s P e r f o r m a n c e
m e a s u r e s w e b e li e v e a r e k e y d r i v e r s o f s h a r e ho l d e r v a l ue
AT R I S K	* P r o v i d e s i n c e n t i v e f o r l on g - * I n f i s c a l 2019 , a nnu a l e qu i ty L on g - T e r m E qu i ty t e r m p e r f o r m a n c e
t h r ou g h a a w a r d s to t h e N E O s c on s i s t e d o f I n c e n t i v e s v a r i a b l e m e t r i c t i m e - b a s e d r e s t r i c t e d s t o c k . * R e s t r i c t e d s t o c k v e s ts o v e r f i v e * L i n k s c o m p e n s a t i o n e a r n e d y e a r s , w i th t h r e e e qu a l a nnu a l
to t h e c r e a t i o n o f l on g - t e r m i n s t a ll m e n t s , b e g i nn i n g y e a r s h a r e ho l d e r v a l u e t h r ee . * A li g n s i n t e r e s ts o f m a n a g e m e n t w i th t ho s e o f * R e s t r i c t e d s t o c k a w a r d i s s ub j e c t s h a r e ho l d e r s to c on t i nu e d e m p l o y m e n t. * Suppo r ts r e t e n t i o n o f k e y t a l e n t

Annual Base Salary

T he C o mmi t te e b elie v e s t h a t annua l bas e s alarie s s houl d b e com p e t it i v e wi t hi n t h e reta il in d ustr y fo r jo bs o f sim i la r siz e and scop e i n orde r t o attrac t an d ret ain talented NEO s . B a se s a lar i e s s erv e a s t he f ou n dati on fo r a n nua l cas h i ncen t ive s ( d i s c u ss ed be l ow ), w hic h exp r es s i ncent i v e o p po r tu n ity a s a percent a ge o f annual b as e salary . NE O ba s e s alar y level s an d p o ten t ia l i n crease s ar e l i nked t o i ndividua l performa n ce . F urthermore , Compan y financia l performanc e i s a consideratio n whe n d e t ermin i n g sa l ar y b u dge t s , w hic h determin e annu a l salar y i n crease s f o r t h e NEO s an d o t he r mem b e rs o f management.

T he Committe e use s a f o r ma l j ob e v aluat i o n me t ho d ol o g y t o e v al u a te b o t h t h e i nte r na l an d exte r na l equi ty of th e N EOs ’ b ase sa l ar y le v els . I nte r na l e q ui ty i s consi d ere d in o r de r t o ensu re t ha t NEO s a re c o m p en s ate d a t a n appropriat e leve l r elativ e t o o t her member s o f executiv e m anagement , wh i l e e x ter n a l eq u it y i s a measu re o f h ow N E O compensa t io n compa r e s t o c o m p ensati on f o r comparabl e job s a t s imila r com p an i e s . Th e C o m m i t tee , wit h th e a ss i s t ance o f it s o u t s id e c o n s u l t a nt , i n t e n ds t o pe ri o di cal l y r e view th e Company’ s NE O position s t o a s ses s th e relativ e s i z e o f eac h posi t io n, s pecifical ly e v aluat i n g scop e o f resp o nsi b il i ties, c o m p lex i t y o f t h e r o le , an d i t s impac t on th e succes s o f t h e busines s . Onc e th e job s ar e v alue d i n depe n den t ly , th e nex t ste p is to compar e the m t o determin e relat i v e re l ati o nshi ps. Th e f i na l ste p the n relate s th e j o b evaluat i o n dat a t o market-base d pay o p p or t un i ties . In a d di t io n, t he Compa n y ’s re t ai l pee r g r o up p r o x y dat a i s r ev i ewe d ann u all y a s a n ot h e r me t ho d o f e v alua t in g th e NEOs ’ bas e salar y c o m p etit i veness.

B ase d up on i nd i vi d ua l p er f ormance , i n 2 0 1 9 t h e co n ti n ui ng NE Os receive d meri t increase s to thei r bas e s alarie s fro m 2 018 . The C E O receive d a n increas e o f 2.5 % o r $31,857 , whil e m e r i t increa ses f o r t h e o the r NEO s we r e 2 . 5% , ra n gi ng f r o m $ 8 , 9 3 0 t o $ 1 1 , 3 4 7. Ba s e s alar y represente d 23 % o f th e CEO’ s tota l compensatio n fo r 2 0 1 9 (as re p o rt ed in th e S u m m ar y Compensatio n T able) , and ranged f rom 41% to 43% for the th r ee NE O s .

A nn u al Cash I n centive Program

Pu rs uan t t o t he Compa n y ’s 20 18 I nce n ti ve Compe n sa t io n P la n (t he “Plan”) , whic h allow s fo r a variet y o f ca s h an d equity-based i n ce n t iv e awa r d s, th e C o m pa n y p ro v id es N EOs w it h a n n ual ca s h i n ce n ti ve o pp o r t un i tie s con d it i one d u p on achie v eme nt o f c o nso l idate d p re - tax , p re - bo n u s i n com e r elat i v e to a pre - establishe d ta r get , p ro v ide d t he Compa ny is p r o f itab l e . NEOs ’ an n ua l cash incentive s ar e determine d base d u p on tw o fact o rs : ( 1 ) th e de g re e t o w hic h th e o v era ll Compan y ’ s p r e- t ax , pre - b o nu s i n come performanc e targe t i s achi e ved , a n d ( 2 ) th e N E O ’ s i n di v id u a l performance . Th e Committe e believe s establishin g annua l consolid a ted pre-tax , pre-bonu s incom e target s focu s es N EOs on achieving pr o fita b ili ty t h r o ug h t op-l i n e re ve nu e g rowt h a nd marg in improvem e nt c o up l e d wi th expe nse managemen t.

NEO s hav e th e opportunit y t o ea rn a n a n n u a l ince n ti ve tha t i s a p ercentag e o f thei r ba s e s ala r y . Th e CEO ’s 2 01 9 m a x imum a n nua l incen t iv e o p p o rt u ni ty wa s s et a t 150% o f base s alary and ot h e r NEO s wa s s e t a t 7 5% . Base d o n pre-define d p erformance g oal s, pay o ut s ca n r an ge f r om 0% to a m a x i m u m of 1 00 % o f th is i ncent i v e o p po r t u nit y. U nl i k e m a ny o f ou r pee r gr o up , w e d o not allo w payout s t o excee d th e m a x imu m annua l incentiv e o pportuni t y , s o tha t achievemen t o f Compan y pe r f o rmanc e g o a l o v e r ta r get (ma xi m u m ) , d oes n o t res ul t in p a y o ut s i n excess of t he b on us p o te n tial . U n li ke m an y i n o f ou r pee r g r o up , w e ca p NE O a n nua l i n ce n t iv e p ay ou t a t t h e t o p e n d of the s e r anges , so tha t achieveme nt o f C o m p an y pe r f o rmanc e goa ls i n e x ces s o f t arge t r esult s in b r o ade r s h ar i n g t hr o u gh ad d iti o na l Compan y paymen ts un d e r i ts E SO P pro g ra m f or t he benefi t fo r al l q ual i fie d em p lo y ees (sometime s referre d t o herei n a s “as s o ciates” ) r athe r tha n enh a ncemen t o f NE O incentiv e pa y outs ; se e “ E mploye e Stock Ownership/Profi t S haring” . However , N EO s ma y receiv e les s tha n thei r maximu m p o tent i a l (a s wou ld n o rmall y b e calc u late d s o lely b ase d u po n Compa ny f ina n cia l p e r formance ) if thei r individua l p erformanc e doe s no t m ee t o bjectiv e goal s an d expectation s d urin g th e fisca l year . Th e Committ e e b el i eve s t h es e maximu m b o n us op p ortu n itie s pr o vi de suff i cien t m o ti v ati on fo r t he NEO s to s t ri ve t o increa s e con s olidate d ne t income.

Fo r fisca l 2 019 , th e Committe e establishe d a con s olidate d pre- t ax , pre-bonu s incom e targe t a s th e performan c e metri c f o r the t ar g e t a n n u a l cas h i ncen t ive . In ad d it i on , th e Commit t e e esta b l ishe d a t h resh o l d le v e l of profita b il i t y targe t f or t he p aymen t o f a 20% b o n u s ( t h e m i n i m u m ), a s wel l a s a ta r ge t f o r b on us pay m en t o f 1 00 % (th e m aximum) . F i s ca l 201 9 exceede d t a r ge t b y 58% , therefo re b o n u ses we re p a i d at 1 0 0 %. S i n c e b o n u s es ar e ca p ped at 1 00% , t h e Compan y in 2 01 9 c o nt r i b ute d $ 7 . 2 mi l li on to th e Em p lo y ee St o c k Ow n ersh ip P l a n (“ESOP” ) f or th e benefi t fo r al l qualifie d associates.

Fo r fisca l 2 020 , th e Committe e establishe d a con s olidate d pre- t ax , pre-bonu s incom e targe t a s th e performan c e metri c f o r the targe t annua l cas h incentive . Th e Committe e establishe d a targe t f o r t he pa y m e nt o f a 2 0 % b on us ( th e m i nimum) , a s we ll a s a ta r g et f o r bo n u s p aymen t o f 10 0% ( th e ma x imum).

Emp l oye e Stoc k O w ne r s h i p Pr o g r am/P r of it S h ar i ng

Th e Committe e believe s tha t ass o ciate s s houl d shar e i n th e p ro f i ts an d ow n ersh ip o f th e Compa ny an d h a s a n Emp l oye e Stock O wne rs hi p Pr og r a m ( ‘E S O P ”)/ Pr of it S h ari ng pla n. A ll a ss oc i ate s ar e a u tomat i call y enro l le d i f t h e y ar e ove r 21 , worke d a t least 1 , 0 0 0 h ou r s , an d a re em p loye d o n t he l a s t d a y o f t he p la n yea r. E ach y ear t he c o m pa n y c o n t r ib u te s 1% o f p r e- tax , p re -b o n us i n c ome to th e p l a n w hic h is co n t r ib u te d t o eve ry ass o ciate ’s i nd i vid u a l ES OP accou n t . Th e p l a n ha s a 5 - yea r v es t in g w it h 2 0% v es t in g each year.

As m a ny o f o u r pee r g ro u p , w e ca p NE O a n n u a l ince n ti ve p ayo ut at t he to p e nd o f th e i ncent i v e b o nu s r anges , s o that ac h ievemen t o f C o m p an y p er f o r ma n c e goals in e xcess of t arget r e sul ts in b r oade r s h ar i n g t h r o ug h a d di t io n a l Compa ny paymen ts und e r it s ESO P progra m fo r th e benefi t fo r al l qualifie d a s soc i ate s rathe r tha n enhancemen t o f N E O i n cent i v e pa y ou t s . W h e n t he C ompan y p er f o r m s ab o v e t he max i m um t a r ge t fo r an y g ive n year , a n y a d di t io n a l amou nt abo ve th e maximu m targe t i s contribute d to t h e ESOP/Profi t S h ari ng p l a n f o r d istrib u ti on t o al l associa t e s ’ accounts . Becaus e fi s ca l 201 9 exceede d th e m aximu m t arge t b y 5 8 %, t h e Co m p any c ont r i b ute d $ 7 . 2 M t o t he E S O P pr o g ram f or t he be ne f i t o f al l quali f ie d a s so c i ates.

L o ng - Term E q ui ty Ince n ti v es and O wne r ship R equ i rements

T he C o mmi t te e b elie v e s t h a t LT I equ i t y awa r d s o f f e r ba l anc e am o n g t he f ol l ow i n g g o al s of t he C o m p any ’s LT I st r ateg y:

● Incen t creatio n o f long-t e rm shareholde r value;

● Pr o m o t e re t enti on thro u g h t he five-yea r vestin g sc h edu le a nd f u ll-val ue n atur e of t he e q uit y awar d;

● Promot e ownershi p an d long-ter m capita l accumulatio n wit h full - valu e stoc k awards ; and

● Facil i tat e i m p r o ve d mar k et - comp e ti t iv e t ota l direc t c o m p ensati on b y ad d in g a n eq u it y comp o nen t t o th e NE O targe t tota l cash compensation.

Th e Committe e current ly g r ant s r estr i cte d st o c k t o NEO s o t he r t ha n th e CE O wit h a five-yea r ti m e - base d v es t in g req u i r eme n t, w it h 3 3% , 3 3% an d 3 4% o f t h e g ra nt v estin g on t h e th i rd , fo u r th a nd fift h an n iversarie s o f t he g r a n t da te, re spe c t ive l y , t o l i n k NEO c o m p ensati on w i t h creati on o f l o ng - te rm s ha r eh o lde r val u e , a l ig n managemen t f ocu s wit h shareholde r interest s an d increase rete n tio n o f k e y empl o yees . Th e C o mmit t e e bel i eve s t h a t rely i n g o n m ea n in g fu l s toc k o w ner sh i p r eq u ire m en ts wi th a r an ge o f 30 0%

6 0 0 % of b as e s a l ar y (de t ail s d is cusse d be l ow ), alo ng w i t h t i m e-base d vesti ng ( whe n cou p le d wit h t he ann u a l cas h i n cent i ve ) that d oe s n o t beg in u nti l t he t h ir d yea r, con t in u e s th e f i nancia l p e rformanc e incentiv e o f increasin g s toc k a p p r ec i at io n t h ro u g h h i gher n et

i ncome , co n ti n ue s to p r o m o t e o wnershi p an d l ong-ter m capita l accumulat i o n an d en h ance s t h e l on g - t e rm r etent i o n o f k e y associa t es

by i n creasi ng t he val ue of s ha r e s subjec t t o t h e time - base d vest i n g r eq u iremen t s . If a n N E O ter m inate s employme nt f or a ny reas o n , t h e LT I awar d i s f o rfeite d t o t h e exte nt it i s n o t veste d. Discreti o nar y e x cept i on s t o f o rfeit u r e m a y b e approve d b y th e Committee (e.g., upon no r mal r eti r ement ) .

T o enc o ura ge m anagemen t o w ners h i p o f Compa ny s t o c k a nd t hu s f urthe r a l ig n the ir interest s w it h s hare h ol d ers , t he Commit t ee als o establishe d meaningfu l s toc k o w ner sh i p req u i r e m en ts f o r L T I award s (i.e. , a recipien t c a n n o t s el l veste d s toc k unles s hi s / h er o wne rs hi p r equ i remen t i s ach i eve d an d ma i nta i ned , e x cep t fo r t h e paym e nt o f ta x exceptio n note d bel o w) . N EO s ( a s wel l a s o t he r LT I eligibl e associates ) ca n s ati s f y t h es e re q ui r eme n t s t h r ou gh o wne r shi p of s t oc k acqu i re d w i t h pers o na l fu n d s ( i n clu d in g t he e x erc i s e o f s t oc k o p ti o n s a nd st o c k h el d i n t h e Emp l oye e Stoc k Pu r chas e Pla n) o r by re t ain i n g veste d r estr i cte d stoc k.

Th e Company’ s curren t restricte d s toc k ownershi p r equirement s v ar y depen d in g up on p o s i ti o n . T he C E O ca n no t s e ll vested s t oc k u n les s h e con t in u e s t o o wn Compan y s t o c k wi th a fa ir m a r ke t va l u e e q ua l t o a t leas t 60 0% o f h i s t he n bas e s ala ry an d t he o t he r NEO s cann ot sel l v es t e d s toc k un l es s t h e y co n ti n u e t o o w n C o m pa n y st o c k w i t h a f ai r mar k e t va l u e equa l t o a t l eas t 30 0% of t he ir the n bas e salary . Th e singl e excep t io n t o th is ow n ersh ip r equ i remen t i s tha t u p t o 45 % o f vest i n g restricte d stoc k ma y b e sol d t o meet t a x l i abi l itie s associa t e d w i t h t h a t vest i ng . I n sett i n g t h es e o wne rs hi p req u i re m en t s, t h e Co m m i tt ee re lie d u p on p re vale nt d a t a from its o ut si d e

c o m p ensati on cons u ltan t r egardin g th e genera l m arket . Whil e th e C o m m i t te e c h o se to s e t t he CEO ’s o wne rs hi p r e q ui r e m en t hi g he r t ha n w ha t w a s mos t p reva l en t f o r th e ge n era l ma r ket , th e o the r NEOs ’ o wne rs hi p req u i r eme n t s w er e esta b lishe d b ase d up on t he m o st prevalen t multiple s i n t h e sur v ey . T he CE O h a s ach i eve d t he o wne r shi p r equ i rements.

LT I awar d target s ar e expresse d a s a percen t o f bas e salary–14 0 % f o r t he CEO , an d ra n g e f r om 5 0 % t o 6 0% fo r t he re m ai n in g thre e NEOs . Unde r th e Plan , th e numbe r o f restricte d share s gr a nte d t o NE Os an d o t he r eli g ib le associate s ar e d etermine d usin g t he rollin g averag e 90-da y pric e s e t w it h i n t he 30 d ay s pr i o r t o t h e Compensatio n Committe e m eetin g whe re t h e b r o ad - base d ann u a l L TI a w ar d is a p pr o ved . Thi s meth o do l og y s mo o the s f l uctua t io ns in stoc k price , whic h coul d otherw i s e s i gn i fica n tl y i m p ac t th e s ha re ca l cula t io n. In d iv i dua l pe r f o rmance , base d up on i np ut f r om th e CE O a n d /o r C o m pe n sa ti on C o m m i t tee , ca n adjus t fina l award p ayo u t s u p o r do w n.

At it s Marc h 2 0 19 meet i ng , th e Committe e g r ante d LT I awa r d s base d o n t he LT I awa rd ta r get s t o NEO s an d n o n - NEO s tha t a re subjec t t o five-yea r time-ba s e d v esti n g , wit h v es t in g n o t be g in n in g u nt il yea r t h re e an d p r ev i ou s l y describe d ownershi p requi r ements.

At it s Marc h 2 0 20 meet i ng , th e Committe e g r ante d LT I awa r d s base d o n t he LT I awa rd ta r get s t o NEO s an d n o n - NEO s tha t a re subjec t t o five-yea r time-ba s e d v esti n g , wit h v es t in g n o t be g in n in g u nt il yea r t h re e an d p r ev i ou s l y describe d ownershi p requi r ements.

St o c k o p ti on g r an ts u nde r t he P l a n cann ot h a ve exe r cis e p r ice s s e t a t les s tha n 100 % o f f ai r m a rke t valu e o f th e Company’ s st o ck o n gran t d ate . T h e P la n define s “fai r marke t value ” a s th e ave r ag e o f t h e hig h an d lo w shar e pric e o n th e g ran t date . Th e gran t da te f o r a l l b r oa d- based LTI awa r d s o ccu r s o n a p re - es ta b li s he d f u t u re dat e s e t by t he Co m m i ttee . Ho w ever , wit h i n g u ide l ine s estab l ished b y th e C ommittee , t h e CE O m a y m ak e L T I award s in th e cas e o f n e w hi r e s an d p r omot i on s n ot in v ol v in g N EOs , a nd th e Commit t ee sha l l ra t if y such a w a r ds p ro v ide d t h ey are c o n s i s t e n t w it h e s ta b lis h e d gu i deli n es.

Nonqualified Defe r red C o m p ensat i on

Th e Compan y offer s certai n as s ociates , generall y m anagemen t le v e l an d abo v e , inc l ud i n g N EOs , an d a ll member s of t h e B o ard of D i rect o r s t he o pp o r t un i t y t o p art i cipa te in a no n qua l if i e d d e f er r e d compensat i o n p l an , w hic h is a n u nsecu r e d no n qua l if i e d defined contributio n plan . Th e D e ferre d C om p ensat i o n Pla n all o w s pa r tici p ant s to de f e r a max i m um of 5 0 % o f the ir bas e s ala ry a nd 1 0 0 % of a ny b o nuse s p aid , o r in re g a rd t o D irec t o r s , 10 0% o f th e fee s e arne d fo r boar d an d committe e s e rvices . Election s t o participat e i n the Deferre d Compensatio n Pla n an d th e p ercentag e o f compensatio n to de f e r ar e mad e b y par t ici p ant s o n a n ann u a l basis , pr i o r to t he b egi n ni ng o f th e yea r i n w h ic h th e compensat i o n i s ea r ned . Th e Compan y d oe s n ot c u r r ent ly m ak e an y con t ri b ut i on s to t h e D efe r r ed Compensatio n Plan.

Th e aggregat e balanc e o f eac h p articipant’ s accoun t consist s of amount s tha t hav e bee n deferre d b y th e p art i cipa nt p l u s ear n i n gs (o r minu s lo s ses) . I n accordanc e wit h ta x r equirement s , th e asset s o f th e Deferre d Compens a tio n P l a n ar e subjec t t o claim s o f o u r creditors . A ccoun t balance s ar e deeme d i nveste d i n accordanc e w it h i n vestmen t e l ecti o n s desi g nate d b y th e par t ici p ant . Invest ment o pt i o n tra n s f er s ma y be m ad e da i ly . Th e p la n o f f er s i n vestmen t o pt i on s s imi l a r to t h os e ava i labl e t o p articipant s i n t h e Comp a ny ’s 4 0 1 (k ) p l a n i n clu d in g f i xe d incom e f un d s , d omesti c a nd i n ter n ati o na l e q ui ty f un d s , b len d e d f un ds an d pre-allocate d lifestyl e f und investments . E arning s an d gain s o r lo s s e s on eac h deeme d inve s t men t ar e credite d o r d ebite d t o eac h participant’ s accoun t o n a m o n th ly ba sis bas e d o n th e ac t ual pe r f o r ma n ce of t he f u nd s i n w hic h th e participan t i s deeme d in v e s ted . Th e pa r tic i pan ts a re 10 0% v este d i n t h ei r c o nt r ib u ti o n s an d al l ea r ni n g s on th o s e c o nt r ib u ti o ns.

A “Rab bi T r ust ” w a s estab l ishe d t o pr o vi de a f u n di ng v ehicl e f or t h e n on q ual i fie d o b li g ati o n s t o t he partici p ant s a nd t hi s t ru st h ol ds l i fe i nsu r anc e po l icie s o n som e o f th e p l a n par t ici p ants . T he C o m p an y co n trib u te s cas h to thes e lif e insuranc e p o licie s in amo u nt s e q ua l to t he compensat i o n d efe r re d b y p la n p ar t icipa n ts . T he cas h valu e o f th e l if e ins u ranc e policie s i s allocate d a m ong f u n d s t h at ar e s i m i l ar t o t he f un ds o f fe r e d to p ar t icipa n t s a s i nves t me n t s u n de r t he p l an . D i s t r i bu t io ns f r o m t he p la n m a y b e ma de f r om t he cas h su r re n de r v alu e i n vestment s o r f r om Compa ny f u nd s .

Deferre d accoun t balance s ar e di s t ri b ute d t o th e pla n partici p ant s i n accordanc e wit h election s m ad e b y th e p articipan t a t th e t i me t h e d efe r ra l i s made , s u bjec t t o Sec t io n 4 09 A o f t he C o de . A partici p an t ma y elec t t o rece i v e d istrib u ti o ns , eit h e r in a lum p s um o r i n i nstal l m e n ts , u po n hi s o r he r terminat i o n of empl o yme nt w i t h t h e Company , disabili t y , death , a n unforeseeabl e emergenc y o r a chang e o f control , eac h o f th e las t tw o event s a s d efine d i n S e ctio n 409 A o f th e Code . A p articipan t m a y als o elec t to receive d istrib u ti o n s w h il e s ti ll empl o ye d by t he Compan y i f h e o r s he elect s t o hav e in-servic e o r ed u cati on d i s t ri b ut i ons , mad e a t a d ate specifie d b y th e participant.

B enef i ts a nd Perq u isites

T he Compan y p r ov i de s NE Os w it h co re bene f i ts o f f ere d t o i t s ot her full - time a s so c iates (e .g., medical , dental , vi s i o n care, prescriptio n drugs , basi c lif e ins u ra n ce , sh or t - t er m d i sa b il i ty , l o ng-ter m disab i li t y , 40 1 ( k ) , p r o f i t s h ar i ng , empl o ye e st o c k o wne rs hip p lan , an d emp l oye e stoc k p u r chas e plan ). T he C o m p an y d oe s n o t p r o v id e an y o the r p er q uisi t es , inc l ud i ng , f or example , cou n t ry c lub member s h ips , a irplan e u s ag e o r ca r allowances.

T he Commit t ee’ s o vera ll b ene f it s p hi l oso p h y f or NEO s f ocuse s on pr o vi d in g b as ic co re b enef i ts , w i t h NEO s u s i n g the ir own cas h compensatio n t o obtai n suc h othe r s ervice s a s the y indivi d u all y d etermi ne a p pr o priate.

Be nef i t s a nd p e r q ui si t es p ro v ide d t o th e NEO s ar e summarize d i n th e S ummar y Compensatio n Table . N o NE O received p er q uisi t e s i n 2 0 19 wit h a t o ta l va l u e equa l to o r g r eate r t ha n $10,000.

Executive Agreements and P o t e n t i al P a y m e n t s o n Te r m i na tio n or C ha n g e of C o nt r ol

T he Compa ny doe s n o t ha ve i n di v id u a l empl o ymen t ag r eeme n t s w i t h NEOs , a nd t h e C o m mi t te e d oe s n o t in t e nd t o comme n ce t hi s p ract i c e i n 2 02 0. No NE O ha s s pecifi c chang e o f contro l be ne fi ts o r p r o t ec ti on d if fe r ent fro m an y othe r s alarie d associat e. C han ge of co n t r o l t r eatmen t f o r N E Os w il l f ol l o w sta n dar d C omp a n y p ol i cie s a s o u tli n e d i n LT I awar d agreeme n t s an d t he Pla n ( see “Po t ent i a l Pa y men ts U po n Te r m i nati on o r C h an ge i n C on t ro l” b elo w ) .

Tax a nd Acco u nt i ng Imp l icat i ons

T he Committee , w it h t he ass is tanc e o f m anagem e n t , ha s considere d othe r ta x an d accountin g provi s ion s in developin g th e pay p r o g ra m s f or o ur N EO s , inc l ud i n g t h e CEO . T he s e i nc lu de t h e ac c o u nti ng t r eatmen t o f va r io us t y pe s o f e q ui t y - base d compensa t ion u n d e r F i nanc i a l Accou n ti ng S t anda r d s Boa rd Acco u nt i n g Stan d ard s Co d if i cati on T o pi c 7 1 8 , a s wel l a s th e overal l incom e t a x rul e s a p pl i cabl e t o var i ou s f orm s o f c o mpensation . Neverthele s s , th e f ocu s i n th e desi gn o f th e NE O c o m p ensati on p r o g ra m ha s bee n t o retai n an d m otivat e NEO s , no t t o achieve potential t a x, accoun t i n g o r o t he r r egu l ato ry a d va n tages . The r ef o re , w hi le t he Commit tee consider s th e potentia l deduc t ib i lit y o f award s an d accountin g con s ideration s a s a fa c t o r i n determinin g executiv e compensation , t he Committe e als o l ook s a t o the r factor s i n m akin g it s decisions , a s n ote d abo v e , an d reta i n s th e f lex i bi l it y t o awa rd compe n sat i o n that it d etermi n e s t o be co n s is ten t wi th t he g o al s o f th e Compan y ’ s executiv e compensatio n progra m eve n i f th e award s ar e not deductibl e fo r incom e ta x purpose s o r provid e favorabl e accoun t in g treatment.

E n gagement a nd Use of I n depe n dent C o m p ensat i on Co ns ulta n t s

Th e Compensatio n Committee’ s cha r ter p r o vi des t h e C o m m it tee wi th t h e au t ho r it y t o enga ge compensat i o n c o nsu l tant s ( and othe r advi s o rs ) a s i t deem s app r opriat e t o assis t w i t h t he p er f ormanc e o f it s du t ies.

T he Committe e ha s retaine d A on Hewitt , a n externa l compen s atio n co n s u lta n t , t o adv i s e th e C o m mi t te e o n exec u ti ve compensatio n i s sue s . A t th e directi on o f t he Co m m i ttee , A on He w it t adv i se d th e C ommi t te e w i t h c o m p arat i v e m arke t dat a b ase d o n analyse s of th e practice s of th e pee r grou p a s wel l a s ad v isin g o n t he c o m p osit i o n o f th e pee r g r ou p. A on H ewit t p r o v ide d g u id ance on in d ust ry bes t p r actice s an d ad v ise d t he C o mmi t te e on th e s t r uct u r e o f t h e execu t iv e compe n s a t io n p ro g ra m f or th e CE O an d o t her Sen i o r Exec u tiv e p o s i ti o ns . Th e c o nsul t ant ’s p r imar y co n tac t wi th management is t he S enior V i c e President , Huma n Resource s & Chie f L ega l Officer , wh o serve s a s t he l i a i s o n wi th o t h er mem ber s of management , a s needed . Int e ractio n wit h m anagemen t occurs mai n l y t o p r o vi de t he c o nsu l tan t wit h C o m p an y da ta a nd a b ette r u nde rs tan d in g of th e C o m p a n y ’s pay

policie s an d practices , whic h w i l l assis t t he m wit h th e consul t in g e n g a ge m e n t . T h e Co m p en s a t io n Com m i tte e ha s assesse d the i nde p ende n c e o f A on H ewi tt p u rsua nt to SE C r ule s a nd co n clu d e d t ha t no c o nf l ic t o f inte r e st e x i s t s t h a t w o ul d p r even t A on He w i tt fro m independentl y representin g th e Compen s a t io n C o m m i t t ee.

R ole of E x ec u ti v es in Esta b lis h ing C o m p ensati on

Member s o f m anagemen t ar e essentia l in p r o v id i n g i np ut t o t he Compensat i o n Comm i tte e t h r o ug h ou t th e y ea r c o nce r ni ng t he effectivene s s o f th e e x ecut i v e compensat i o n p ro g ram , s e l ectio n o f p erformanc e criteria , financia l p erformanc e of th e Company , and p er f o r ma n c e o f in d ivi d ua l e x ecut i ves . T he Chie f Execu t iv e O f f icer , Chie f Financia l Office r an d Senio r V ic e President , Human Re s o urce s & Chie f L ega l O ffice r ar e th e ke y m em b er s of ma n agemen t wh o advis e th e Committe e a nd suppl y neede d an d a ccurate i nformat i on . T he C o m mi t te e reg u lar ly in v ite s the m to atte nd C ommitte e meetings , participat e i n th e p resen t ati on o f m ater i als , and facil i tat e discussi o n s c o ncer n in g m anagement’ s perception s o f t h e executiv e compen s atio n program s an d ge n era l vie ws conce r n i n g a v ar i et y o f compe n s a t io n issues . A dd i ti o na l sen i o r m embe rs of m a nagemen t par t ici p at e i n meet i ng s a s re q ueste d by th e C o m mi t tee. H owe v er , t h e C o m mi t te e make s f i n a l d ec i sio ns conce r n i n g al l as p ect s o f NE O compe n s a t io n, incl u di ng t h e d esig n, st ruc t u re and l evel s o f NE O compensat i on , i ncl u din g s alar y increa s es , perfor m anc e measure s an d t arget s , varia b l e pa y target s a s a percen t o f b ase sa l aries , de t ermina t io n o f ann u a l i n c e n ti ve bo n u s pa y ou ts base d u p o n in d ivi d u al a nd C o m pa n y pe r f o r m a nce, a nd d ete r m ina t io n o f LT I awards.

Compensatio n Co m mitte e Report

T he C ompensat i o n C o mmit t e e o f t h e Boa rd o f Di r ect o r s o f t h e Compa ny ha s re v iewe d a nd disc u s se d t h e Compensa t ion D iscussio n an d A n alysi s req u i r e d b y I te m 40 2 ( b) of R e g ula t io n S - K wi th t he managemen t o f th e Compan y and , b ase d o n such r ev i e w an d d i sc us s i on , th e C o m p e ns ati on Comm i tte e rec o mmen d e d t o t he B oa r d of D i r ec t o r s th at t he C o m pe n sa t i o n Di scu s si o n a n d A nal ys i s b e i ncl u de d in t h i s P ro xy S ta t emen t an d, t h r ou gh i n co r po r ati on b y re f ere n c e f r o m t h i s Pro xy Statemen t, t h e C o m p any ’s A nn u a l Rep o r t o n Fo rm 1 0- K f o r th e yea r e n de d Febr u ar y 1, 2 0 20.

Compensation Committee Members:

D. Ha r d i n g Sto w e , Cha ir Baile y W . Patrick

Dr . Pamel a L . Davies

Su mm a r y Com p en sa ti on T a ble

| Name and
Principal Position | Year | Salary
($) | Bonus
($) | Stock Awards ($) (1), (2) | Option
Awards ($) | Non-Equity
Incentive Plan Compensation ($) (3) | All Other
Compensation ($) (4) | Total
($) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| John
P. D. Cato | 2019 | 1,298,165 | - | 1,643,782 | - | 1,959,194 | 370,307 | 5,271,448 |
| Chairman,
President & | 2018 | 1,266,502 | - | 1,015,168 | - | 1,720,267 | 281,346 | 4,283,283 |
| Chief
Executive Officer | 2017 | 1,235,612 | - | 1,306,255 | - | - | 260,569 | 2,802,436 |
| John
R. Howe | 2019 | 462,380 | - | 250,926 | - | 348,913 | 92,303 | 1,154,522 |
| Executive
Vice President & | 2018 | 451,103 | - | 309,926 | - | 306,362 | 58,753 | 1,126,144 |
| Chief
Financial Officer | 2017 | 440,100 | - | 199,402 | - | - | 45,217 | 684,719 |
| M.
Tim Greer | 2019 | 400,301 | - | 181,033 | - | 302,068 | 74,298 | 957,700 |
| Executive
Vice President | 2018 | 390,538 | - | 223,603 | - | 265,230 | 44,674 | 924,045 |
| Director
of Stores | 2017 | 381,013 | - | 143,863 | - | - | 34,753 | 559,629 |
| Gordon
D. Smith | 2019 | 363,911 | - | 164,564 | - | 274,607 | 70,845 | 873,927 |
| Executive
Vice President | 2018 | 355,035 | - | 203,268 | - | 241,119 | 42,105 | 841,527 |
| Chief
Real Estate & Store | 2017 | 346,375 | - | 130,780 | - | - | 32,975 | 510,130 |
| Development
Officer | | | | | | | | |

(1) Th e am o un ts sh o w n i n t h i s co l um n rep r esen t th e ag g rega te g ran t dat e fai r valu e of curren t yea r g rant s o f r estricte d share s of Cat o Clas s A Stock , a s compute d in accordanc e wit h F AS B AS C To p i c 7 1 8 . G ra n t s i n 2 0 1 7 an d 2 01 8 wer e mad e un d e r t he 201 3 Incentiv e Compensatio n Pla n ; G r ant s i n 2 0 1 9 w er e m ad e u nde r t he 20 18 I ncen t iv e C o m p ensatio n Plan . Grant s wer e not subjec t t o performanc e criteri a bu t ar e s ubjec t t o a five-yea r vesti ng sched u l e e x cep t f or Mr . Cato , wh o s e Ma y 1 , 2 01 7 g ran ts we re s u b jec t to a p er f o r ma n c e measur e an d th e five-yea r v e s tin g s chedule . P la n participant s hav e t h e r ig ht t o al l d iv i den ds durin g th e restricte d p erio d an d curren t yea r dividend s ar e inclu d e d un d e r Al l O the r C ompensat i on.

(2) Assump t io ns relate d t o t h e val u atio n of res t ric t e d s t oc k an d o pti o n s ar e inc o rp o ra t e d b y re f ere n c e to t h e f o ot n ote s o f t he C o m p any ’s f ina n cia l statemen ts i n i t s A nn u a l Rep o r t o n Fo rm 1 0 -K.

(3) Th e amo u nt s s how n i n th is c o lum n i n 20 19 co ns tit u t e th e cas h A nnua l Incentiv e op p ortunit y earne d b y eac h Name d Executive Office r b ase d on establishe d cri t er ia u n de r th e 2 01 8 I ncen t iv e C o m p ensati on Pla n; amou n t s s ho wn in 2 0 1 8 ar e b ase d on esta b lishe d criteri a un d e r t he 2 01 3 Incentiv e C o mpensatio n Pla n .

(4) Th e am o un ts sho wn i n thi s col u m n re p resen t amou n t s of C o m p a ny m a tc hi ng c o nt r i b uti o n s a nd p r o fi t s h ar in g c o n tr i bu t io ns t o th e Name d Executiv e O fficer’ s 401(k ) accounts , Compan y contribution s t o th e Name d Executiv e Officer’ s accoun t unde r the C o m p any ’s Emp l oye e St o c k O w ne r s hip Pla n (th e “ESOP”) , dividend s receive d durin g th e yea r b y th e Name d Executiv e Officer o n un v es t e d res t ric t e d s toc k a nd am o un ts i m p ute d to th e N ame d Executiv e Office r f o r l if e ins u ra n c e c o ve r ag e un d e r t he C o m p any ’s G r o u p Ter m L i f e I nsu r anc e pla n. Th e am o un t of 4 0 1 ( k ) matchin g contribution s w er e determine d accordin g to p r o v isio ns a s o utl i ne d i n th e Compa n y’ s 40 1 ( k) Pla n d o cument s a n d a s ap p ro v e d by th e C ompensat i o n Comm i ttee . Th e am o unt o f ESO P contribution s w er e determine d accordin g t o p rovision s a s o utl i ne d i n th e ES OP p l a n doc u m e n ts . Th e cumu l ati ve contribution s t o th e E S O P w er e determine d p ursuan t t o eac h ann u a l p erformanc e criteri a approve d b y th e Compensation C o mmit t e e u n de r t he 2 0 1 3 I n centi ve Compensatio n Plan . T he amou n t s imp u te d un d e r t h e G r o u p T e r m Lif e In s u ranc e pla n are calc u late d u nde r IR S gu i del i ne s a nd ar e base d o n lif e insuranc e coverag e o f tw o time s the annual s ala r y of th e Name d Executive Office r cappe d a t a c o v era ge l imi t o f $ 35 0 ,000 . Se e tabl e belo w fo r qua n ti f icat i o n o f 20 19 it e m s r epo r te d in th is co l umn.

Th e amoun t o f eac h co m ponen t o f Al l Othe r Compens a tio n fo r eac h Name d Executiv e Off i ce r i s a s follow s : F i scal 2 0 1 9 A l l Ot her Co m p ens a t io n

| | 401(k) Matching | E SOP | Impu t ed
Gr o up — T erm Life | Restricted Stock | T o t al All Other |
| --- | --- | --- | --- | --- | --- |
| | Contributi o ns | C o ntributions | Insura n ce
Cos t s | Dividends | C ompensation |
| Name | ( $) | ($) | ($) | ($) | ($) |
| J o h n P . D . Cato | 6 , 0 3 2 | 1 9 , 9 4 9 | 2,7 05 | 34 1 , 6 21 | 37 0 , 3 07 |
| Jo h n R . H ow e | 6 , 0 3 2 | 1 9 , 9 4 9 | 1 , 5 48 | 6 4 , 7 7 4 | 9 2 , 30 3 |
| M. Ti m G reer | 6 , 0 32 | 1 9 , 9 49 | 1,5 48 | 4 6 , 7 6 9 | 7 4,298 |
| G o r do n
D. Sm i t h | 6 , 0 32 | 1 9 , 9 49 | 2,3 76 | 4 2 , 4 8 8 | 7 0,845 |

Gr a nts o f P l a n -B as e d Award s i n F i s ca l 2019

Name	Grant Date	Threshold ($)	T a rget ($)	M aximum ($)	Target (#)	Ma x imum (#)	($) (3)
J o h n P . D . Cato	3 /2 5 /2 0 2 0	- 0-	1,9 5 9,194	1,9 5 9,194
	5/ 1 /2 0 19			- 0-	1 10,3 95	11 0 , 3 95	1,64 3 ,782
J o h n R . H owe	3 /2 5 /2 0 2 0	- 0-	3 4 8,913	3 4 8,913
	5/ 1 /2 0 19			- 0-	16,8 52	1 6 , 8 5 2	25 0 ,926
M. Ti m G reer	3 /2 5 /2 0 20	- 0 -	3 0 2,068	3 0 2,068
	5/ 1 /2 0 19			- 0-	12,1 58	1 2 , 1 5 8	18 1 ,033
G o r do n D. Sm i t h	3 /2 5 /2 0 20	- 0 -	2 7 4,607	2 7 4,607
	5/ 1 /2 0 19			- 0-	11,0 52	1 1 , 0 5 2	16 4 ,564

(1) Th e amou n t s sh ow n c o nsti t ut e t he cas h A nn u a l Ince n ti ve B o nu s potentia l fo r eac h Name d Executiv e Offic e r base d o n esta b lishe d criteri a un d e r t he 2 01 8 Incentiv e C o mpensatio n Plan .

(2) Th e amount s show n repre s en t C las s A restricte d stoc k award s u nde r t h e 20 18 I n cent i v e Compensat i o n Plan.

(3) Th e fai r m arke t valu e o f th e Co m pa n y’ s s to ck o n t h e g r ant d at e o f Ma y 1 , 201 9 a s trade d o n th e Ne w Y o r k S toc k Exc h ang e o n Ma y 1, 2 0 19 , wa s dete r m i ne d b y av erag i n g t he h ig h of t he d a y ($ 1 5.2 2) an d t he l o w o f th e da y ( $1 4 . 5 6 ).

Al l restricte d s toc k award s mad e d u r in g f i sca l yea r 20 19 we re o f Clas s A Stock . Al l o f t h e award s ar e subjec t to a five-year v esti ng re q uireme nt w i t h 3 3% , 33 % an d 34 % of t he g r an t v es t in g o n t h e t h i r d , fo u r th an d f i f t h a n ni v ersar i e s of t h e g r an t d ate, respectively . Th e u nveste d award s ar e s u bjec t t o forfeitur e i f th e name d executiv e t erminate s empl o ymen t wi th t h e C o m p any . Ea ch g ra n te e i s req u ire d t o ow n a c erta in m u lti p l e o f h i s bas e s a l a r y befor e bein g abl e t o s el l th e r e stricte d s tock . However , eac h g rantee ma y sel l u p t o 4 5% o f vesti ng res t ricte d stoc k t o mee t a s s ocia t e d ta x l iab i lit i es.

Ou t st a n d i n g E qu it y A wa rds a t 2 0 1 9 F i sc a l Ye a r- E n d

Stoc k Awards

	N umbe r of	Marke t Valu e of
	Share s o r Uni t s	Share s o r Units
	of Stock That	of Sto c k
That
	H ave N ot Ves t ed	Have Not Vested
Name	(#) (1)	( $) (2)
John P. D . Cato	27 5 , 0 25	4,41 1 , 4 01
J o h n R . H owe	5 1 , 5 76	82 7 , 2 79
M . Ti m Greer	3 7 , 2 28	59 7 , 1 37
G o r do n D. S m i t h	3 3 , 8 26	54 2 , 5 69

(1) A ll stoc k awa r d s s ho wn ar e r e stricte d s toc k grant s an d ar e C l as s A Stock . Th e r est r icte d share s ves t ove r fiv e year s wit h 33 % o f the shares ve s ting i n y e ars th re e an d f o u r an d 3 4 % v es t in g i n y ea r f ive . Th e expecte d r e s trict e d share s v estin g ove r th e nex t five yea rs is 2 0 % in 20 1 9 , 2 1 % i n 2 0 20 , 27 % i n 2 02 1, 2 0% i n 2 02 2 a nd 1 2% i n 2 02 3.

(2) Th e clo s in g mark e t valu e o f th e Compa n y ’s stoc k w a s $ 16.0 4 on th e las t t r ad i n g da y of th e fisca l year , Januar y 31 , 2020.

Optio n Exercise s an d Sto ck Ve s t e d i n Fisca l 2019

Stock A wards

	Number of	Value Reali z ed
	Share s Acquir e d	on Vesting
Name	on V esting ( #)	($) (1)
Joh n P . D . Cato	45,5 11	67 7 , 6 59
J o h n R . H owe	6,8 33	10 1 , 7 43
M . Ti m Greer	4,9 70	7 4 , 0 0 3
G o r do n D. S m i t h	4,5 01	6 7 , 0 2 0

( 1 ) Th e f ai r m a r ke t v alu e o f t he Compan y ’ s s toc k o n t h e vest i n g d at e o f M a y 1 , 2019 , a s trade d o n th e Ne w Yor k S toc k Exchange o n Ma y 1 , 2 01 9, wa s de t ermine d b y aver a g in g th e hi gh o f t h e da y ( $ 1 5 . 2 2 ) a n d t h e lo w of t he day ($ 1 4 . 5 6 ) .

Nonqualifie d Deferre d Comp e nsatio n fo r Fisca l 2019

Name	Ex e cutive		Aggr e gate		Aggre g ate
	Contribut i ons	Company	E arnings in	Ag g regate	B a l ance at
	in
Last FY	Cont r ibutions	Last FY	Withd r awals
/	Last FYE
	($)	in Las t FY	( $ )	Dis t ributions	($)
	(1)	($)	( 2 )	($)	(3)
Joh n P . D . Cato	—	—	—	—	—
J o h n R . H owe	2 2 9,772	—	1 7 8,0 27	—	2,21 8 , 0 54
M. Ti m G reer	1 2 6,394	—	1 0 6,9 67	( 22 4 , 5 06)	96 1 , 5 33
G o r do n D. S m i t h	—	—	—	—	—

(1) Represent s th e NEO’ s d eferral s t o th e Nonqualifie d Deferre d C o m p ensati on P l an . T h es e amo u n ts ar e include d i n th e Summary C o m p ensati on Ta b l e un d e r “Salary ” an d “No n -Eq u it y I ncen t iv e C o mpe ns ati o n ” o r b o th , a s a p plica b le.

(2) Thes e amount s ar e no t reporte d in th e Summar y C o m p ensati on T abl e a s th e earning s include d i n t hi s colum n ar e base d o n the investmen t option s s electe d b y t h e NEO , a nd d o n ot inc l ud e ab o ve-marke t o r pre f erentia l earnings.

(3) Fo r M r. Ho w e , $ 1 , 5 07,1 17 of th e agg r egat e bala n c e wa s rep o r t e d in a S u m mar y C o m p ensati on Ta b l e f o r p r evi o u s y ear s a nd f o r M r. G reer , $ 9 19,9 51 o f t he a g g r egat e ba l a n c e w a s r epo r te d in a Summa ry Compe ns ati on Ta b l e fo r p r evio us y ears.

Pleas e se e “C o m p ensati on D iscussio n an d A n alysi s – N o nq u ali f ie d Defe r re d Compe n sa t io n” f or a descri p ti on of t h e C o m p any ’s N on q ual i f i e d Deferre d Compensatio n Plan.

Potentia l Payment s Upo n Ter m i n a ti on o r Chang e i n Con t rol

U po n a ny c h ang e i n con t r o l , al l u n veste d rest r icte d st o c k a w ar ds woul d immediatel y ve s t. There f ore , i f an y chang e i n contro l h ad o ccu r re d o n Feb r ua ry 1 , 2 02 0, t he f o l low i n g ta b l e s h ow s th e n u m b e r o f s ha r e s t h a t wo u l d ha ve v ested a nd th e v a l ue of th ose s h ares fo r eac h NE O base d o n th e closin g marke t v alu e of th e Company’ s s t o c k o f $1 6 . 04 o n t h e las t t r ad i n g d a y o f th e f isca l yea r, J a n u ary 3 1 , 20 2 0.

| Name | Share s Tha t Would Have Vested Upon a C h ange i n
Cont r ol | Vesting
Value ( $ ) |
| --- | --- | --- |
| Joh n P . D . Cato | 27 5 , 0 25 | 4,41 1 , 4 01 |
| J o h n R . H owe | 5 1 , 5 76 | 82 7 , 2 79 |
| M . Ti m Greer | 3 7 , 2 28 | 59 7 , 1 37 |
| G o r do n D. S m i t h Chie f Executiv e O ffice r Pa y Ratio | 3 3 , 8 26 | 54 2 , 5 69 |

As r eq u ire d b y Secti on 9 5 3( b) o f th e Dodd-Fran k Wal l Stree t Refo rm an d Cons u m e r Pr otec t io n A ct , a nd I t e m 4 0 2 ( u ) of t he Securitie s an d Exchang e Commiss i o n ’ s Regu l ati on S - K , we a re p r o v id i n g th e f oll o wi ng in f o r ma t io n ab o u t t he r elati o nsh ip o f t he a n nua l t o ta l c o m p ensati on of o u r employee s an d th e annua l tota l compe ns a t io n o f M r. J o h n Cato , o ur Chie f Execu t iv e O f f ice r. T h e pa y rati o include d belo w is a r ea s onabl e estimat e calculate d i n a m anne r c o nsisten t w i t h SE C r u le s base d o n o ur p ay r ol l and employmen t record s an d th e met h odolog y describe d b elow . B e caus e th e S E C ru l e s f o r ide n ti f yi ng t he m ed i an - c o m p ensated employe e an d calculatin g th e pa y rat io base d on t h a t em p lo y ee’ s ann u a l t o ta l compensa t io n a l lo w c o m p anie s t o a d op t a v arie ty o f met h od o lo g ies , t o app ly ce r tai n excl u sio n s , a nd t o mak e r eason ab l e estimate s a nd assumpt i on s t ha t re f lec t t hei r compensa t ion practices , th e amoun t of compen s a tio n of th e median- c ompensate d emp l oye e an d t h e pa y r ati o r ep o rte d b y o t he r c o m p anie s ma y not be compa r ab le t o o ur es t ima t e s re p o r te d bel o w , a s o t he r compan i e s m a y hav e differen t employmen t a nd c o m pe n sa ti on p r act i ces an d ma y u t il i z e d if f ere nt me t ho d ol o gies , exclusions , esti m ate s an d assumption s i n calculat i n g t hei r o w n pa y r ati o s.

Fo r ou r fisca l y ea r ende d Feb r ua ry 1 , 20 20 (“ f isca l 2 0 19” ) th e to t a l compensat i o n o f th e Compa n y ’s Ch i e f Execu t iv e O f f i ce r o f

$ 5 , 2 7 1 , 44 8, as p re s e n t ed i n th e Summar y Compensatio n Table , wa s ap p r o ximatel y 5 07 t ime s th e t ota l compensa t io n o f t he Company’ s media n employe e o f $ 10 , 38 2 calculate d i n th e s am e ma n ner . Th e m edia n employe e i s a p art-tim e employe e an d was identifie d b y r e viewin g th e tot al cas h compensatio n fo r al l em p l o yees , exc l ud i n g t he C o m p any ’s C h ie f Execu t iv e O f f i ce r, w h o w ere employe d b y th e Compan y o n Decembe r 31 , 201 9. Al l o f th e Company’ s employee s wer e included , w h ethe r employe d o n a full-time or p art - time basis. Adju s t m ents wer e mad e t o annualiz e th e com p ensat i o n o f empl o yee s w h o wer e no t empl o ye d b y th e Compan y f o r th e entir e year . Afte r ide n ti f yi ng t h e m ed i a n emp l oye e b ase d on t ota l ca s h compensation , th e 20 19 a n nua l t o ta l c o m p ensati on was calculate d fo r th e media n empl o ye e u s i n g th e sam e meth o do l og y u se d fo r th e Company’ s Chie f Executiv e Office r a s presente d i n t he Summar y C o m p ensati on Table.

As add i tio n a l i n f o rmati o n , th e t ota l c o m p ensati on o f t he C ompan y ’ s Ch i e f Execu t iv e O f f ice r w a s a p p r ox i m ate ly 1 78 t i m e s t he t ota l compensat i o n of t h e Compa n y’ s m ed i a n f u ll - tim e em p lo y e e o f $29,61 1 calculate d i n th e s a me manne r a s t h e Chie f Executive Officer’ s tota l compen s ation . T h e m edia n full-tim e employe e i s a stor e manage r an d wa s identif i ed b y reviewing the total cash compensatio n fo r al l full-tim e e m ployees , excludin g th e Company’ s Chie f Executiv e Officer , wh o we re e m plo y e d on a f u l l- t i me basi s fo r th e entir e year.

FIS C A L YE AR 20 19 DIRE C TO R C O M P E NSATION

| Name | Fees Earned or P a id in C a sh ($) | S tock Awards ($) (1),
(2) | All Other C o mpensation ($) | Total
($) |
| --- | --- | --- | --- | --- |
| D r . Pamel a L . Da v ies | 6 7 , 5 00 | 4 0 , 0 80 | — | 10 7 ,580 |
| T h eres a J . D r e w | 4 7 , 5 00 | 4 0 , 0 80 | — | 8 7, 580 |
| T h oma s B . Henson | 7 5 , 0 00 | 4 0 , 0 80 | — | 11 5 ,080 |
| B rya n F . K enne d y , I I I | 8 3 , 0 00 | 4 0 , 0 80 | — | 12 3 ,080 |
| T h oma s E . Mec k ley | 8 8 , 0 00 | 4 0 , 0 80 | — | 12 8 ,080 |
| Ba ile y W . P at ri ck | 8 3 , 0 0 0 | 4 0 , 0 8 0 | — | 12 3, 08 0 |
| D. Ha r d i n g Sto we | 7 2 , 5 00 | 4 0 , 0 80 | — | 11 2 ,580 |
| E d war d I. W eisige r, Jr. | 2 3 , 0 00 | — | — | 2 3 ,000 |

(1) A ll stoc k awa r d s sho wn ar e s toc k g r an t s of Cl ass A S t oc k .

(2) Th e amoun t r epresent s th e f a ir m a r ke t va l u e o f 3,0 95 s hares , a s compute d i n accordanc e wit h F AS B AS C Topi c 718 , of the C o m p any ’s stoc k g r ante d o n J u ne 1 , 2 01 9, a s tra d e d on t he Ne w Yo r k S t oc k E x chan ge o n Ma y 31 , 2 01 9, an d w a s dete rm ined b y a v era g in g t h e hi gh o f t he d a y ( $ 13.5 7) an d t h e lo w of th e d a y ( $ 1 2 . 33 ).

Director s wh o ar e no t employee s of th e Compan y receiv e a f e e f o r the ir se r v i ce s o f $ 6 0,0 00 pe r year . E ac h non-employee directo r i s pai d $ 1,50 0 fo r attendin g eac h Boar d o f Director s m ee t in g an d eac h committe e meetin g schedule d o t he r tha n i n conjunctio n wit h a r egularl y s c h edule d B oar d of Director s meeting . Th e Committe e Chair s o f th e Corpor a te Governanc e and Nominatin g Committe e an d th e C o mpensatio n Committe e receiv e a n add i ti o na l $5,0 00 pe r y e a r. Th e C o mmit t e e Cha ir of t he A u dit Committe e receive s a n ad d itiona l $10,0 00 pe r year.

Th e Compensatio n Committe e appro v e d s toc k award s value d a t $50, 0 00 . T he n u m ber of s ha re s g r an te d on J u n e 1, 20 19 is d etermi n e d usi ng t h e ro l li ng averag e 90-da y pric e se t withi n th e 3 0 da ys p r io r t o th e Compe n satio n C o mmi t te e meet i ng . T he C ompan y bel i e v e s th is met h od o lo gy s moo t he s f l uct u atio n i n s t oc k p r i ce , w hic h cou ld ot h er w is e sig n if i cant ly impac t t h e s ha re calculation . Th e 90-da y averag e pric e wa s $16.1 6 an d wa s calcu l ate d usin g th e s toc k price s b etwee n Octobe r 25 , 2 01 8 an d F e b ruary 2 5 , 2 01 9. T h e res ul t in g 3 , 0 9 5 s hare s pe r Directo r wer e no t s u b j ec t t o v es t in g r equ i rement s o r an y o t he r rest r ic t io n s . T he Commit t ee i nte n d s t o gran t simila r s t oc k award s i n futur e years . Al l subs e q uen t grant s wil l b e e f fectiv e Jun e 1 eac h year.

Director s ar e reimburse d f or reaso n abl e ex p ense s incurre d i n atte n di ng di r ecto r meet i ng s an d c o m mit t e e meeti n gs.

CE R TAI N REL A TIO N SHIP S A ND R ELA T E D P E RSO N T R ANSA C TIO NS

R evie w, Approv al o r Ra t i f ica t io n o f Relate d Perso n Transactions

T he C o m p an y re v iew s al l re l ati o nshi ps an d t ransac t ion s i n w h ic h t he C o m pa n y a n d i ts d i r ec t o r s, executiv e officers , n ominee s o r b ene f icia l ow n er s of m o re t h a n 5% o f an y clas s o f t he Compa n y ’s s toc k o r thei r immediat e famil y m ember s hav e a direc t or indir ect materia l interest . Th e Company’ s interna l control s requir e th e Ch i e f F i nanc i a l O f f ice r t o re v ie w an d app r ov e al l s u c h r ela t e d pe r s o n tran s action s . Thereafter , th e Compa n y’ s Au d i t C o mmi t tee , i n acc o r d anc e w i t h it s charter , rev i ew s al l rela t e d perso n tra n sac t io ns r eq u ire d to b e discl os ed . Th e Re l a t e d Pe rs o n Pol i c y f or th e Co m pa ny i s se t fort h i n t h e Au d i t Commit t e e C h arter.

Relate d Perso n Tran s actions

D u r in g f isca l 20 1 9 , t h er e we re n o t r ansact i on s bet w ee n t h e C o m p an y an d an y r elate d pe rs o n t h a t m e t th e re q ui r eme n t s f o r d i sc l o s u re .

DELIQUEN T SECTIO N 1 6( a) BEN E F ICI A L OWNE R S HI P R E PORTI NG COMPLIA N CE

Sectio n 16(a ) o f th e Exchang e Ac t r equire s th e Company’ s direc t or s an d executiv e officers , an d person s wh o b eneficiall y own mo re tha n 1 0 % o f a r egiste r e d clas s o f t h e Compan y ’ s equ i t y s ecurit i es , t o f il e w i t h t he Securit i e s an d E x chan ge C ommissi on in i tial r ep o rt s of ow n ersh ip an d r epo r t s o f change s i n owner s h i p o f commo n share s an d othe r eq ui ty securit i e s of th e Company . Executi ve officer s , director s an d greate r tha n 10 % shareholder s ar e requ i r e d b y S E C r egu l a t io ns to f ur n is h t he Compan y wi th cop i e s of al l Sect i o n 1 6 (a ) f o r m s t h e y fi l e . T o th e C o m p any ’s k no w led g e , d u rin g th e f isca l yea r ende d F ebrua r y 1, 2 0 20 , a ll S ect io n 1 6 (a ) f i l in g requirement s applicabl e t o it s e x ecutiv e o fficer s an d director s an d an y grea t e r t h a n 1 0 % bene f icia l owner s w e r e m e t excep t tha t o ne Fo rm 4 wit h r es p ec t to o n e t r ansact i on , t h e an n ua l s t oc k g r an t t o n on-employe e directors , wa s f ile d lat e fo r eac h o f Dr . Davi e s, M r. H enso n, M r. Ke n ned y, Ms . D re w, M r. Meck l ey , M r . P at r ick , an d M r . Stowe.

P R O P OS A L 6 — R ATI F IC AT I O N OF I N D EPE N DE N T REGISTERE D PUBL IC AC C O U NTIN G FI RM

Th e Audi t Committe e ha s s e lecte d P ricewaterhouseCooper s LL P a s in d epen d en t a u di t o r t o e x am i n e t he Compa n y ’s fi n ancial statement s f o r t h e f isca l yea r en d e d J a n uar y 3 0 , 2 0 21 . T h i s s electio n i s b ein g p resente d t o th e sha r eh o lde rs f o r the ir rat i f i c a tio n at t he Annua l M eeting . P rice w ater h ouseC o ope rs LL P aud i te d th e Compan y ’ s financia l statement s fo r t h e f isca l y ear s ende d J anuar y 31, 2 0 04 th r o u g h Feb r ua ry 1 , 20 2 0 . A re p resen t ati ve of P r i cewate r houseCooper s L L P i s expecte d t o atten d th e m eetin g, r espo nd to a p propriat e q u estio ns f r om shar e ho l der s prese nt a t th e meetin g a n d , if suc h r e p resen t ati ve d es i res , to mak e a s t atement . T he a f f i rmati ve vo te o f a majo r i ty o f th e vote s pre s en t o r represente d a t th e A nn u a l Meeti ng an d e n ti t le d t o v ot e by th e h ol d er s o f Class A St o c k an d Clas s B St o ck , vo t in g a s a singl e class , i s require d t o a p p r ov e t he p ro p o sa l .

Th e director s recommen d tha t s hareholder s vot e F O R th e propo s a l t o ratif y th e selec t i o n o f Pr icewate r h o useCo o per s L L P as t he C ompan y ’ s in d epen d en t au d itor.

Audi t Committe e Report

M anagemen t i s r es p o n s i bl e f o r t he Compa n y’ s inte r na l con t r o l s an d th e fi n ancia l re p o r tin g p r ocess . P ricewaterhouseCoopers LLP , th e Company’ s independen t registere d publi c accountin g fi r m , i s resp o nsib le f o r p er f o r m i n g a n i n depe n den t a u di t of t he Company’ s consolidate d financia l s tatement s i n accordanc e wit h s t a n da rd s of t h e P ub l i c Co m pa ny A c c o u n tin g O ve r s i g h t B oa r d (Unite d States ) (“PCAOB” ) an d issuin g a repor t thereon . Th e Au d i t Commit t ee , am o n g ot h e r thi n gs , i s resp o nsib le f o r m o ni t oring an d over s eein g thes e proce s se s a n d is directl y r es p onsi b l e f o r t he ap p oi n tment , compe ns atio n, retentio n an d ov er s ight o f the C o m p a n y ’ s in de pen de n t re g i s te r e d pu b li c accou n ti ng f i rm.

I n r ecommendin g t o th e Boar d o f Director s th e reappointmen t o f PricewaterhouseCooper s LLP , t he Au d i t C o mmi t te e t o o k i nto c o nsi d erat i o n a numbe r o f fac t o rs incl u di ng t h e le n gt h o f tim e Pri c ewaterhou s eCooper s LL P h a s b ee n engaged , th e qualit y o f the A ud it C o mmit t ee’ s d i sc us s i on s w it h r epresentative s o f Pricewat e rh o useCo o pe rs LLP , r epo r t s o f th e PCA OB on PricewaterhouseCooper s L L P, PricewaterhouseCooper s L L P fee s an d t h e p er f o r m a n c e o f t h e l ea d a u di t an d c o n s ul t in g pa r t n er s. U nde r SE C r ule s an d Pr i cewate r ho u seCoo p er s LL P p r actice , th e lea d engagemen t audi t partner , a s we ll a s co ns ult i n g pa r t n er , is each require d t o chang e ever y fiv e years.

T he p r imar y p u r p os e of t h e A u d i t Comm i tte e is t o assis t t h e B oar d of Director s i n f ulfil l in g i ts oversig ht r espo n sib i lit y f or sa f egua r d i n g t he C ompan y ’ s asse ts an d fo r th e i n teg r it y o f t he acc o un t in g a nd re p o r ti ng p r actice s o f th e Compan y a nd suc h oth e r dutie s a s directe d b y th e Board . As s e t fo r t h i n t h e A ud it Co m m i tte e Cha r ter , th e Au d i t Comm i tte e i s n o t resp o nsib le f o r co n d u cting a u di ts or p r epa r in g o r d ete r mi n in g whe t he r t h e Compa n y’ s f ina n cia l statement s ar e accurat e o r complet e o r con f or m wit h accoun t ing principle s generall y accepte d i n t h e Unite d State s of America . T he Company’ s independen t reg i stere d publi c accountin g fir m is r espo n sib le f or e x p r ess i n g a n o p in i o n o n t h e c o nf o rmi ty o f au d ite d financia l stat e m ent s t o accountin g principle s g enerall y ac c epted in the U nited Stat e s of A m e rica.

I n th e performanc e o f i t s o ver s igh t functio n an d i n accordanc e wit h i ts res p onsi b il i tie s u nde r i ts charter , th e Au d i t C omm i tte e has reviewe d an d discu s s e d t h e audite d financia l statement s fo r th e y ea r ende d F ebruar y 1 , 2 02 0 w it h m anagemen t an d th e independe n t regi s t ere d p ubli c accountin g fir m . T he Audi t Committe e als o di s cus s e d w it h m anagemen t an d th e independen t registere d public accountin g fir m th e adequac y of t h e Company’ s interna l controls , an d discusse d wit h m anagemen t th e effectivene s s o f the C ompan y ’ s d isclos u r e con t ro ls an d p roce d u r e s use d f or pe r io d i c p ub l i c r ep o rt i ng . T he A u di t C o m mit t e e reviewe d w it h t he i nde p ende nt re g istere d p u b li c accou n ti ng fir m t h ei r a u di t p l an s , a u di t sco pe an d i den t if i cati on o f au d i t r i sks . Th e Au d i t Commit t ee h a s d i scusse d w it h t he i n depe n den t r egiste r e d pu b li c accou n ti ng f ir m th e communication s require d b y th e PC A OB . In add i tio n, t he Audi t Committe e ha s receive d fro m th e independen t regi s tere d publi c accou n ti ng f i rm th e w r i tte n disc l osu r e s an d lette r r equ i r ed b y th e Ethic s an d Independenc e Rul e 35 26 ti t le d “C o m mu n icati on w i t h Audi t Committee s Concernin g Independence ” an d discu s sed wit h th e i ndependen t register e d publi c accountin g fir m t hei r i n d e p en d e n c e f r o m th e C o m pa ny an d it s m a n age m ent . Th e A u di t Committe e als o h a s con s i dere d w h e t her t h e i nde pe nde nt re g i s te re d publi c accountin g firm’ s p rov i sio n of non-audi t service s t o t he C ompan y is compa t ib le w it h t he a u di t o r ’ s in d epen d ence.

B ase d o n th e r evie ws a nd d i scussio ns men t io n e d ab o ve , th e A ud it Committe e recomm e nde d t o th e Boar d o f Director s tha t the a u di t e d f ina n cia l sta t eme n t s f or t h e y ea r en d e d Feb r ua ry 1 , 2 0 2 0 b e i ncl u de d in t he Compa n y ’s A nn u a l Re p or t t o s h are h olde rs a n d Ann u a l Rep o r t o n For m 1 0- K to th e Securitie s an d Exc h ang e Commission.

Audit Committee Member s :

T h oma s E . Mec k le y ( C hai r) Thomas B. H enson

B rya n F . K enne d y , I I I Theresa J . Drew

Audi t F ees

P r icewate r h o useCo o per s LL P au d ite d th e Company’ s consolidate d fi n ancia l s tatement s fo r t he fi s ca l year s ende d Februar y 1 , 2 0 20 an d F e b r u a ry 2, 20 1 9 . T he ag g rega te fee s pa id t o P r ice w a te r h ouseC o ope rs L L P f o r a ll p r o f ess i ona l se r v i ce s r ende r e d f o r f iscal y ear s ende d Feb r ua ry 1 , 2 0 20 an d Febr u ar y 2, 2 0 1 9 we r e :

| | F iscal Y ear
En d ed Februar y 1 , 2020 | Fiscal Year Ended F e bruar y 2 , 2019 |
| --- | --- | --- |
| A ud it Fee s ( 1) | $ 1 , 1 04,0 00 | $ 1,08 4 , 0 00 |
| Aud i t-Relate d Fee s (2) | 8,0 00 | 1 2 , 0 0 0 |
| Ta x Fee s (3) | 73,0 00 | 5 0 , 0 0 0 |
| A l l O t he r Fee s ( 4) | 3,0 00 | 3 , 0 00 |
| | $ 1 , 1 88,0 00 | $ 1,14 9 , 0 00 |

(1) “ Audi t Fees ” represen t fee s fo r profes s iona l s ervice s r endere d b y P ricewaterh o useCo o pe rs LL P f o r th e a u di t of o u r a n nual f ina n cia l sta t emen ts inc l ude d i n o u r A nn u a l Re p or ts o n Fo rm 1 0-K , th e r evie w o f financia l s tatement s i n clu d e d i n ou r Q u arte r ly Re p or ts o n F o rm 10 -Q an d an y serv i ce s n o rmall y p r o v ide d b y P r i c ewaterhouseCooper s LL P i n con n ec t i o n wi th s ta t ut o r y an d r egu l ato ry f i li n g s or en g ageme n ts.

(2) “ A udit -Re l a ted Fee s ” represen t fee s fo r as s uranc e a nd r elate d se r vice s re n de r e d b y P ricewaterhouseCooper s LL P t ha t are rea s onabl y relate d to th e perfo r manc e of t he aud it o r r ev i e w o f ou r financia l s tatement s a n d ar e no t reporte d unde r “ Audit Fee s . ” Audit-relate d fee s consis t o f fee s relate d t o ne w accountin g g u ida n c e t o be i m p lemente d in 20 19 an d 2 0 20.

(3) “ Ta x Fee s ” represen t fee s fo r profes s ion al s ervice s r endere d b y P ri c ewaterhou s eCooper s L L P fo r ta x complianc e relate d t o the f il i n g o f th e C o m p any ’s fede r a l i n com e ta x re t u r n , assista n c e wit h a f edera l incom e ta x a u dit , t a x advic e an d ta x planning relate d t o foreig n, stat e an d loca l tax.

(4) “ Al l Oth e r Fees ” repres e nt fee s pai d t o PricewaterhouseCooper s LL P fo r Genera l Accepte d A c countin g Practice s s oftware.

Polic y o n A udi t Co m mitte e Pre-Approva l o f Audi t an d P ermissibl e N on-Audi t Service s by th e I ndependen t Regi s tered Publi c Accounti n g Firm

T he A u di t C o mmi t te e is r es p ons i bl e f or th e app o in t m e n t , compe n satio n a nd ove rs ig ht of th e wo rk o f t h e i nde p ende nt r eg i s t ered p u b li c accou n ti ng f i rm . A s p ar t o f th is res p ons i bil i ty , th e Au d i t Co m m i tt ee i s r e q u i red t o p re -a p p r ov e t he a u di t a nd no n -a u di t service s p erforme d b y th e indepe n d e n t re g i s t e r ed p u bli c a c c o u n tin g f i r m i n o r de r to assu re tha t the y d o n o t i m p ai r t h e au d it o r ’s i nde p ende n c e f r o m t he Compa n y . Acc o r d in g ly , t he A u di t Comm i tte e ha s ad o pte d p r oced u re s an d co n di t io ns un d e r w hic h s erv i ces p r o po sed t o be pe r f o r m e d by th e i n depe n den t registere d publi c acc o un t in g f i rm mus t b e p r e - ap p r o ved.

Pursuan t t o t h i s p olic y, th e Au d i t Comm i tte e wil l co n side r an n ual ly an d ap p r o v e t h e te r m s o f t he aud it e n gagemen t. Any p r o pose d en g ageme nt rela t in g t o pe r m is s i bl e no n -a u di t s er v ice s mus t be presente d t o th e Audi t Committe e an d pr e - approve d o n a case-by-cas e basis . I n addition , p articula r cate g o r ie s o f pe r m i ssi b l e n on - aud it ser v ice s tha t ar e r ecu r ri ng ma y be p r e-ap p r o v e d by t he A ud it C o mmi t te e sub j ec t t o p r e-se t fe e limits . I f a categor y o f s er v ice s i s s o a p pr o ved , t he A u di t Comm i tte e wil l b e re g ularly upd a ted reg a rding the status o f those services a nd t he fees i n c u r red . T he A ud it C o mmi t te e r ev i e ws r equest s f or th e p r ov i s i o n o f au di t a nd n o n - aud it serv i ce s by t he C ompan y ’ s in d epen d en t r egis t ere d p ub l i c accou n ti ng f i r m an d d etermi n e s if t h e y s h o ul d be app r o ve d. S u ch r e q ue s ts co ul d be a p p r ove d eithe r a t a meetin g o f t h e Aud i t Commit t e e or up on app r o v a l o f t he C h ai r of th e A u di t C o m mi t te e, or an o the r m embe r of th e A u di t C ommitte e designate d b y th e Cha i r. If the Chair or h is d esignee app r o v e s a pe r m i ss i bl e no n -a u di t service , tha t deci s i o n i s require d t o b e presente d a t th e n ex t meeti ng o f t he A u d i t C o mmit t ee . P r i o r t o ap p r o vi ng an y se r v i ce s, the A ud it Comm i tte e cons i der s whe t he r t he p ro v isi on of s uc h ser v ice s is co n s i s t en t w i t h th e S E C ’ s r ule s o n au d it or in d epen d enc e a n d is c o m p ati b l e wit h m ai n tai n in g t he a u di t or’ s i nde p ende n ce . Al l of th e Compan y ’ s Au d it-Relate d Fees , Ta x Fee s a n d Al l Othe r F ees we r e p re -a p pr o ve d by th e A u di t C o m m it tee.

SHA R EHOLDE R P R OPOS A L S

Sha r eh o lde rs w h o i n ten d t o p r esen t p r o p osal s f or co n s i de r atio n a t nex t year’ s A nnua l Meetin g ar e a d vise d t h at , pu r suan t to ru l es of th e S ecur i tie s an d Excha n g e C ommissi o n , a ny s u c h p r o posa l m u s t b e receive d b y t h e S ecretar y o f th e Compan y a t th e Company’s principa l executiv e offices , 810 0 Denmar k Road , Charlotte , Nor t h Car o li na 2 8 27 3 - 5 97 5 n o la t e r t ha n th e clos e of bus i nes s on Decembe r 21 , 202 0 i f s uc h proposa l i s to b e con s i der e d fo r inclusio n in th e p r o xy s t ateme nt an d p r o xy app o in t m e nt fo rm r elat i n g to t ha t m eeti n g . On ly pe rs on s w h o h av e hel d bene f icia l l y or o f rec o r d a t leas t $ 2 , 0 0 0 i n m arke t v alue , o r 1 % o f th e combine d clas s of C las s A St o c k an d Clas s B St o ck , f o r a t l eas t o ne yea r o n t he da te th e prop o sa l i s su bmitte d an d w ho c o nt i nu e i n s u c h ca p acity t h r ou gh t h e meeti ng da te ar e e l ig i bl e to s u b m it p r o p osal s t o b e c o nside r e d f o r i n c l usi on i n th e Compan y ’ s p ro xy s ta t eme n t . In a d di t io n, th e Compa ny ma y di r ec t th e person s n ame d i n th e Company ’s A n nua l Meet i n g p r ox y t o exe r cis e d iscret i ona ry vo t ing a u th o r i t y t o vo te a g ains t a ny matte r, w it h ou t a ny d is c l osu re o f su c h ma t te r in t he C ompan y ’ s p r ox y s t atement , u n les s a s ha r eh o l d er provide s notic e o f t h e m atte r pu r suan t t o th e procedure s s pecif i e d i n A r ticl e I I, S ecti on 4 of th e Compa n y ’s By l aw s ( n o la t e r than Feb r ua ry 2 0, 2 0 2 1 i n t h e cas e o f th e Compa n y’ s 2 0 2 1 A n nua l Mee t ing) . Suc h notic e mus t be rece i ve d b y t h e S ecretar y o f the C ompan y a t th e Compan y ’ s pr i nci p a l e x ecut i v e o f f ice s a s d escri b e d a b ov e i n t h i s pa r ag r ap h no t la t e r t ha n ni n et y day s pr i o r t o t he anniversar y dat e of th e immed i atel y precedin g Annua l Meeting . T h e s hareholder’ s n otic e mus t se t f orth , a s t o eac h m atte r of b u s i ne s s p r op o s e d f o r c o n s i d era tio n, a b ri ef desc ri p ti on of th e bu si n ess de s i red t o b e b ro u g ht b e f o re t he A n n ual M eet in g a n d t he r eason s f or c o nd u cti ng s u c h b usi n es s a t t h e A nn u a l Mee t in g, th e nam e an d address , a s the y appea r o n th e Compan y ’ s s t oc k tra n s f er records , o f th e proposin g shareh o lde r, t he cla ss and n u m b er o f shares o f the Company’s stock b e neficiall y owne d b y th e propos i ng s h areh o lde r, a nd an y mater i a l in t e r es t o f t h e pr o p o s i n g sha r eh o l d er i n t h e p r op o s e d b u s i ne s s.

O T HE R MATTERS

T he Boa rd of D irec t or s of t h e C o m p an y k no ws o f n o mat t er s t h a t w i l l be p r ese n te d f o r co n s i de r ati on a t t h e m eeti ng o t he r than t hos e se t f o r t h in t h i s P r o xy Statement . However , i f an y o the r matter s ar e properl y presente d f or ac t io n, it i s t he in t e n ti on o f t he person s name d i n th e prox y t o vot e o n the m i n accordanc e wit h t he i r b est j ud g m e n t .

Fo r th e Boar d o f D i r ecto rs T HE C A T O C O R P ORAT I ON

C H RI S T IN J . RE I SC H E

A ssistan t Secretary

A p r i l 2 0, 2 0 20

A T TACHME NT A

AMENDED AN D RESTATE D CERTIFICAT E O F IN C O R POR A TION OF

TH E CAT O CORPO R ATION

T he Ca to C or p o r ati o n , a co r po r ati on o r gan i ze d a nd exist i n g u n de r th e law s of th e Stat e o f D elawar e (the “Corporation”) , hereby certifie s a s fol l ows:

1. Th e nam e o f t h e corporation Cor p o rat i o n i s “ Th e Ca to Corpor a t i o n ,” a nd t he name u n der w h i c h the corporation Corporatio n wa s or i gina l l y incorpor a te d i s “C a t o S t o res , Inc. ” T h e dat e of filin g i t s ori g ina l Certificat e of Incorporatio n wit h t h e Secretar y o f Stat e w a s Marc h 28 , 1946.

2. Th e tex t o f th e Amended an d R e s t ate d C ertificat e o f I ncorporatio n a s amende d o r s upplemente d heretofor e i s f urther amende d and r estate d hereb y t o rea d a s herei n se t fort h i n full :

F I RST . T he n am e o f t h e Co r po r at i o n is

TH E CAT O C ORPORATION

SECOND . It s registere d o ffic e i n th e S tat e o f Delawar e i s loca t e d a t 1 20 9 O ran ge St r eet , in t h e Cit y of Wilmi n gt o n , C o un ty of N e w C a s t le . Th e n am e an d add r es s o f it s resi d en t a g en t i s Th e Co r po r ati on T r us t C o m p any , 1 20 9 O r an ge S t ree t, W ilmi n gt o n , D elawa r e , 1 98 0 1.

TH IR D. Th e p u r p o se o f t h e c o r p o r a t i on C o r p ora t io n i s t o en ga g e i n an y lawfu l ac t o r activit y f o r whic h corporation s m a y be o r g anize d u nde r t h e Gene r a l Corporatio n La w o f Delaware.

F O URT H . ( A ) T he t o t a l nu m be r o f s ha res of a ll c las s es o f c a pit a l s t oc k w h ic h t he C o r p ora t io n s h al l ha ve t h e aut h or i t y t o is s ue is 6 5 , 1 0 0 , 00 0, c o n s is tin g o f :

(1) 5 0 , 0 0 0 , 00 0 s ha res of Cla ss A Co m m on S t o ck h av in g a pa r val u e o f $.0 3 1 /3 pe r sha r e,

(2) 1 5,0 0 0,00 0 sha r e s of Clas s B C ommo n St o c k hav i n g a pa r v alu e o f $ . 03 1/ 3 pe r sha r e , and

(3) 100,00 0 share s o f Preferre d Sto c k havin g a pa r valu e o f $1 0 0 . 00 p er s ha re.

T he issued s hares of the Co r po r ati o n ’s capi t al s t o ck a s of the dat e of fi l in g o f t hi s A m e n d m e nt sh al l be rec l a s si fie d a s s ha r e s of C l ass A C o m m o n S t o c k, wit h o u t a n y f u rt he r acti on req u i r ed by t h e holders thereof.

(B) Excep t t o t h e e x ten t ot h erw ise p r ov i de d b elo w, th e h ol d er s o f Cla ss A Co m m on S toc k an d th e C l a s s B Co m m on S toc k s hal l hav e th e s am e powers , d esignations , pref e r ence s an d p articipatio n right s an d privileges . Th e h o lde rs o f C l a ss A C o m m o n S t o c k and C las s B Commo n Stoc k sha ll hav e t he f ol l ow i n g speci f i c po w ers , designations , preferences , an d r e la t iv e partic i pati ng ri g ht s an d privileges:

(1) Eac h h o lde r o f Clas s A Comm on S t oc k s hal l be e n tit l e d t o on e ( 1 ) v o te p er sha r e o f Cla s s A Co m m on S t oc k s tan d in g i n hi s nam e o n th e transfe r b oo k s o f th e Corporation , an d eac h ho l de r of C l as s B Comm on Stoc k s h al l be ent i tle d t o te n ( 1 0 ) v ote s pe r shar e o f Clas s B Commo n S t oc k s t and i n g i n hi s n am e o n th e t ran s fe r book s of th e Cor p oration , wit h re s p ec t to each mat t e r t o b e v o te d u p on.

(2) T he h o lder s of Clas s A C o mmo n S t o c k a nd Clas s B C o mmo n S toc k sha ll h av e th e r i gh t t o vote , bu t no t a s s eparate cla s se s excep t t o t h e exten t req u i r e d b y la w o r a s o t her w is e p r o v ide d i n s u bsect i o n ( B ) (3 ) b elow , u po n al l mat t er s su b m i tted to th e stoc k ho l de rs o f th e Co r p o rat i on.

(3) In a d di t io n t o an y o t he r vo te re q ui r e d by l aw , t he Co r p o ra t i o n ma y no t al t e r or c h ange , by r i g hts , p r efe r ences, p r i vile g es , restric t io n s , di v ide nd ri g hts , v ot i n g p o we r o r ot h e r po w er s gi v e n to th e h o lde rs o f C las s A Commo n S t oc k and C las s B Comm on s t oc k p u rsua nt to th is Artic le F ourt h o the r t h a n b y t he a f fi rm ativ e v o t e of no t l ess t h an s ix t y - s ix a nd tw o t hird s ( 66 2 /3 ) perce nt o f al l t h e vo t e s en t itle d to b e vo t e d b y th e holder s o f eac h clas s o f stoc k t o b e adv e rsel y affected thereb y votin g a s a s eparat e class , e x c e pt t h a t th e Co r p o rat i o n m a y increas e th e tota l numbe r o f aut h or i ze d s hare s o f C las s A C ommo n S toc k o r Clas s B C ommo n S toc k tha t ma y b e i ss u e d b y th e cor p o r ati on b y th e af f irmat i v e v o t e o f a m ajo r i ty o f all t h e v ote s e n tit l e d to be vo t e d by t he h o lder s o f Clas s A Comm on S t o c k a nd Clas s B Comm on S t o c k v o ti ng t oge t her , wit h out re ga rd to class.

(4) Su b jec t t o th e r i gh ts o f a ny h ol d er s of P r efe r re d Stoc k, h ol de rs o f C l a ss A C o m m o n S toc k an d C l a s s B C o m m o n Stoc k shal l b e en t itle d to receiv e s uc h dividend s an d o t he r d i str i bu t io ns i n cas h , s t o ck o r p r o p ert y o f th e Corporatio n a s m ay b e d eclare d thereo n by th e Boar d o f Direct o r s fr om tim e to t im e o ut of asse ts o r f un ds o f t h e C o r p ora t io n le g all y ava i lab le t he r efo r; p r ov i ded , ho w eve r, t h at:

(a) N o cas h dividen d ma y b e dec l are d an d pai d o n t h e Clas s B C o mm on Stoc k u nles s a di v id e n d o f a n e qua l o r greater amoun t o f c a s h pe r shar e h a s bee n declare d an d pai d o n th e Clas s A Com m o n S tock.

(b) I n th e eve nt o f an y d iv i den d o r o the r dist r i b ut i o n p ayabl e in s toc k o f t h e Co r p o rat i on , o t he r t ha n P r e f er r e d St o ck, i ncl u di ng a dist r i b uti on p u rs uan t t o an y stoc k spl it or d iv i s i on , w hic h occ u r s a f te r th e in i tia l issuanc e o f Clas s B Co m m on St o c k b y t he Co r p o rat i on , on ly s h are s of Clas s A C o mmo n S toc k sha ll be d i str i bu t e d wit h r espec t t o Clas s A C o mmon St o ck , an d t he Co r p o rat i on ’s B o a rd o f Di r ect o rs , i n it s disc r e t io n, s hal l determin e whet h e r t o d istrib u t e share s o f Clas s A or Clas s B C ommo n S t o ck , in a n am o un t p e r s ha re eq u a l t o t he amoun t pe r s har e d istribute d wit h respec t t o th e Clas s A Com m o n S tock , wit h respec t t o Clas s B Commo n Stock.

(c) I n th e cas e o f an y combination , reclassificatio n o r recapital i zati on of t h e C las s A C omm on St o ck , t he s ha r e s of C la ss B C o m m o n s toc k s ha ll al so b e c o m b ine d, r ec l ass i f i ed o r reca p ital i ze d so tha t t he nu m be r of sh a r e s o f C l a s s B C omm on s t oc k o u tsta n di ng immed i atel y f o l lo w in g suc h c o m b ina t io n r eclassificatio n o r r ecapit a lizatio n shal l bea r the sam e r elati o nsh ip t o t he numbe r o f s ha r e s of C las s B Commo n St o c k outstandin g immediatel y p r i or to s uc h combi n ati o n, r eclassi f icati on o r r eca p ita l izati on a s t he numbe r o f s h are s o f Clas s A Commo n St o c k ou t stan d in g i mmed i atel y f o l lo w ing suc h combination , rec l as s i ficatio n o r recapitalizatio n bear s t o t he n u m b e r o f s ha r e s of C l a s s A Co m m on S toc k o uts t and i n g imme d iate ly pr i o r to s u c h combi n ati o n , r eclassi f icatio n o r recapi t alization.

(d) S h are s o f C l as s B Commo n st o c k ou t stand i n g a t a ny tim e s h al l n ot b e revers e sp li t o r combi n ed , w het h e r b y reclassification , reca p italizatio n o r otherw i se , s o a s t o d ecr e as e th e numbe r o f share s th er eo f issue d a nd ou t stan d ing unles s a t th e s am e tim e th e share s o f C la ss A Co m m on S toc k a re revers e spli t o r combine d so tha t th e n umbe r o f s hares of C l as s A C omm on S t oc k o utsta n di ng immediate ly f o ll o wi ng s uc h reclassificatio n o r recapitalizatio n shal l bea r th e s ame r elat i ons h i p t o t h e numbe r o f s ha r e s of Clas s A Comm on S t oc k outstan d in g immed i atel y p ri or t o s uc h reclassificati on or recapitalizatio n a s th e n umbe r o f s hare s o f Clas s B Commo n Sto c k o u tsta n di ng imme d iate ly f o ll o wi ng s uch reclassificatio n o r recapitalizati on bears to the number of sh are s of Clas s B Comm on S t oc k ou t stan d in g immediate ly pr i o r t o suc h recla s sifica t io n o r recapitalization.

(5) An y o uts t and i n g sha r e s of Clas s B Commo n Stoc k s h al l b e c on ve r ti b l e o n or af t e r J ul y 1 , 1 98 8 int o fu l l y pa id and n onassessabl e s h are s o f Clas s A Commo n S t oc k a t t h e o pt i o n o f the h o lde rs t he re of on a o ne s h a r e f or o n e sha r e bas i s. I n o r d e r f o r a s t ock h ol d e r t o ef f ec t an y s uc h c o nve rs io n; s uc h s t ock h ol d e r m us t furnis h t h e Corp o rat i o n wit h a wr i tte n not i c e of th e reques t fo r conversion , whic h no t ic e s h al l b e ad d resse d t o t he p r i nci p a l o f f ic e o f t h e Co r po r ati on o r t o t h e Co r po r at i on ’s des ig na tio n tr an s fer a ge nt , s h al l stat e th e numbe r of share s o f Clas s B C o mmo n S t o c k t o b e c o nve r te d i n t o sha r e s o f Clas s A Commo n S tock , shal l stat e th e n a m e o f th e p erso n (s ) i n w hos e n ame(s ) th e share s of Clas s A Commo n Stoc k ar e t o be regi s t ere d a n d s hal l b e accompa n ie d b y a certificat e o r certif i cate s representin g suc h s hare s , properl y endorse d an d r e a d y f or tran s f er . A conversio n s h al l b e d eeme d t o b e m ad e (an d th e holde r o f su c h s hare s s ha ll b e dee m e d t o b e th e h ol d e r o f rec o r d o f a n equa l numbe r o f share s o f Clas s A Commo n St o ck ) o n th e c l os e of b usines s of t h e d at e w h e n t he Co r p o rat i o n or tran s f e r agen t h a s receive d th e p re s crib e d w ritt e n n otice and r equire d certificat e o r certificates , properl y endor s e d an d read y fo r transf e r. Th e Corporatio n h e reby r eserves and shall at a ll tim e s reserv e an d kee p availa b l e o u t o f it s a u th o rize d an d u nissue d s h are s o f Clas s A Commo n St o c k, f o r th e p ur p ose s o f e f fec t in g c o n v e r sio n s u c h n u m b e r o f du ly aut h o r ize d s ha r e s of Clas s A Commo n Stoc k a s s hal l f r om t im e t o tim e b e s u f f icie nt t o e f f ect t he c o n v e rs io n o f al l o ut st a n di ng s ha r e s o f Cla ss

B C o mmo n S t ock.

(6) In t he e v en t o f a l i qu i dat i o n o r disso l uti on o f t h e Co r po ra ti o n , o r a wi n di ng u p o f it s af f ai r s , whe t he r v ol u nta ry or i nv o lu n ta r y , or a mer g e r o r c o nsol i dat i o n o f t h e Co r po r ati o n , afte r p aymen t o r p r o visi on f or paymen t o f t h e deb ts o r l iab i lit i es of th e Co r po r at i o n an d t he amou n t s t o w hic h h o lde rs of th e P r efe r re d Stoc k shal l b e ent i tle d, ho l der s o f Clas s A C o mmon Stoc k shal l b e entitle d t o receiv e o u t of th e ne t asset s o f th e C o rp o ra t io n, t he am o un t o f $ 1.0 0 p e r sha r e , p r i o r to any d ist r ib u ti on to be ma de w i t h respec t t o Clas s B C omm on S toc k. A f te r s uc h p aymen t o r p r ov i s i o n fo r suc h pa y me nt t o t he h ol d er s o f Clas s A Commo n Stoc k, t h e ho l de rs of Clas s A Commo n s t ock a n d t h e h o ld ers of Cla ss B Co mm o n S toc k s ha l l be e n ti t le d t o s har e rata b l y ( i.e. , a n equa l amo u n t o f asse ts f o r eac h s har e o f eithe r Cla s s A Commo n Stoc k o r Clas s B Common St o ck ) i n th e remai n in g asset s o f t he C or p orati o n.

(C) ( 1 ) N o pe r s o n h o ldi n g s h ares o f Cla s s B Co m m o n Stock of recor d (hereinafte r calle d a “Clas s B Holder” ) ma y transfer , and t h e Co r po r at i o n shal l n o t r egiste r t h e t r ansfe r o f , s u c h s ha r e s o f Clas s B C o mmo n St o ck , a s Clas s B C o mmo n Stoc k, w h ethe r by s ale, assi g nment , g i f t, b equest , a p po i ntmen t o r o the r w i s e , e x c e pt t o a Permitte d Transfere e (a s hereinafte r defined) . Shar e s of Cla s s B C o m m on S t oc k t ran sf er r e d t o an y p art y ot h e r t h a n a P e rm it t e d T r ansfere e (a s hereinafte r defin e d ) s hal l b e converte d i nt o share s of Clas s A Commo n S toc k a s provide d b y s u b s ect io n ( 4) o f th is S e ct io n (C) . A “ Permitte d Tra n sferee ” s hal l m ea n, wi th r espec t to each pe r s o n fr o m t i m e t o t i me s h o w n a s th e rec o r d h ol d e r o f sha r e s o f Clas s B C ommo n St o ck:

(a) In the Case of a Class B H older w ho is a natu ra l pe r son;

(i) anyA n y linea l d escendan t o f suc h Clas s B Holde r (th e Clas s B Holde r an d s u c h l inea l descendant s herein collectively ref e rr e d to as “Cla s s B H older ’ s F a mily Me m be r s” ) ;

(ii) Th e t r uste e of a t r us t ( inc l ud i n g a v o ti ng t rus t) p r i nci p all y f or t h e b enef it of suc h Clas s B Ho l de r and / o r on e o r mor e o f hi s o r he r P ermitte d Transferee s describe d in eac h s ub clau s e of t his clau s e ( a) o ther t han this subcl a use (ii), p r o vi d e d tha t s u c h t r u st m a y als o gran t a genera l o r s pecia l p o w e r o f app o in t m e nt t o o n e o r m o re o f s uc h Cla ss B H ol d er ’s F am i l y Membe rs an d ma y pe r m it tr u s t asset s t o b e use d t o pa y t axes , legacie s an d o the r o bl i gati o n s o f t he t r u s t o r o f th e e s ta t e s o f on e or m o re o f s uc h C la ss B Ho l der ’s F ami ly Membe rs paya b l e b y reaso n o f t h e dea th o f any of suc h Fam i l y Membe r s ;

(iii) A cor p orati on if al l o f t he outstandin g capita l s toc k o f s u c h c o rp o ra t io n w h ic h i s e n ti t le d t o vo te fo r t he electio n o f d irector s i s owne d by , o r a p art n er s h ip if al l o f t he partner s are , an d al l o f th e b eneficia l in t erest s i n t he pa r t ner sh i p are o w n e d by , t he C la ss B H ol der o r hi s o r he r pe rmitte d Tran s feree s determine d unde r thi s claus e (a), p r o vi ded tha t i f b y r eason o f a n y cha ng e i n t h e o w n e rs hi p of s u c h s t o c k or pa r tne rs hi p i n te r es t s , s uc h co r po r ati on or p ar t ners h i p w o ul d n o l o nge r qua l i fy a s a Permi t te d Tra n sfe r ee , al l share s o f Clas s B Commo n S t o c k t h e n hel d b y such c o r p ora t io n o r p ar t ners h i p s ha l l , u po n th e elec t io n o f t h e Co r p o rat i o n g i ve n by w r it t e n no t ic e t o s uc h cor p o r atio n or p ar t ners h ip , w it h ou t f u r t he r ac t b e converte d int o a lik e numbe r o f s hare s o f comm o n C l a s s A C o mmo n S tock e f fec t iv e up on th e dat e o f t he gi v in g of s u c h n ot i ce , an d s t oc k certificate s f ormerl y repre s entin g s u c h s hare s o f Class B C o mmo n s t o c k sh al l thereu p o n an d thereafte r b e deeme d to rep r esen t th e lik e numbe r o f shares o f common Class A C omm on St o ck ; and

(iv) Th e e s t at e o f suc h Cla s s B Holder.

(b) I n th e cas e o f a Clas s B Holde r holdin g share s o f Clas s B C ommo n Stoc k a s t r uste e pu r suan t t o a t r us t ( o the r than a t r u s t descr i be d i n claus e (c ) bel o w ), Permit t e d Tra n s f ere e m e an s ( i) an y pers on t r ansfe r r i n g C l as s B C o mmo n S t o c k t o suc h tr u s t an d ( i i ) an y P er m i tte d Tr a n sfere e o f an y suc h t rans fe r or d e t erm ine d p ur sua n t t o claus e (a ) above.

(c) I n th e cas e o f a Clas s B Holde r holdin g th e share s of Clas s B C o m m o n S t ock i n q ue s t io n as t r u s t ee pu rs u a n t to a t r u s t whic h wa s irrev o cabl e o n t he recor d d at e fo r d etermi n in g t he p erso ns t o w ho m t h e C las s B Comm on St o c k i s f irst is s u e d by th e Corporation , P ermitte d Transfere e mean s (i ) an y p erso n t o w ho m or f o r wh ose bene f i t pr i nci p a l ma y be d ist r ib u te d e i the r du r i ng o r a t th e e nd o f th e t er m o f s u c h t r u st w het h e r b y po w e r o f ap p oi n t m e nt o r ot h erwis e an d (ii ) any Permitte d Transfere e o f an y suc h perso n determine d pursuan t t o claus e (a ) above.

(d) I n th e cas e o f a Clas s B Holde r whic h i s a partnershi p o r c o r p ora t io n ac q ui r in g r eco rd an d b e neficia l ownershi p o f t h e sha r e s o f Clas s B Comm on S t oc k i n quest i o n u p o n i t s i ni t ia l issuanc e b y th e Corp o rat i on , P ermitte d Transfere e mean

( i ) an y p art n e r o f suc h p art n er s h i p , o r st o ckh o lde r o f s u c h co r po ra tion, as of the date of the initia l issuan c e o f th e share s of C las s B C o mmo n S t ock , an d ( ii ) an y Permi t te d T r a n sfe r e e of a ny suc h person , partner , o r s toc k ho l de r r efe r re d to in s u bcla u s e ( i ) o f thi s cla u s e ( d).

(e) In th e ca se of a C l a ss B Ho l de r w hic h is a cor p o r ati on o r pa r t n ershi p ( o t he r t h a n a c o r p ora t io n or pa r tne rs hip desc ri bed i n c l a use ( d ) a bo ve) holdin g recor d an d beneficia l o w ne rs hi p of t he s ha res of Cla ss B C o m m on S t o ck i n q uest i on , P erm i tte d Transfere e mean s (i ) an y per s o n transferri n g s uc h s ha r e s o f Cla ss B Co m m on S t oc k t o s uc h corpor a t io n o r partnershi p an d ( i i ) an y Permi t t ed Transfere e o f an y suc h t rans f er or dete r m i ne d unde r claus e (a ) above.

(f) I n th e cas e o f a Clas s B Holde r whic h i s th e est a t e of a decease d Clas s B Holder , o r whic h i s th e estat e of a b ank r u pt o r i n s o lve nt Clas s B H o lde r, w h ic h h o ld s rec o r d an d b eneficia l ownershi p o f th e share s of Clas s B Common Stoc k i n que s t ion , P ermitte d Transfere e mean s a permitte d T ransfere e o f s uc h deceased , bankrup t o r insolven t Clas s B Hol d e r a s d etermi n e d pursua nt to claus e (a ), ( b ), (c ), ( d ) or ( e ) above , a s th e ca s e ma y be.

(g) A n y em pl o y ee bene f i t p l an f or th e benefi t o f th e employee s o f t h e Co r po r ati on ( a “Plan” ).

(h) I n t he cas e o f a Clas s B Hol d e r w h ic h i s a Plan , Permitte d Transfere e include s an y beneficiar y o f suc h p la n to w ho m share s o f s t oc k o f t h e Co r po r at i o n ma y b e dist r ib u ted , bu t onl y a s suc h share s ar e distributable.

(2) N ot w it h s t and i n g an y th i n g t o t h e c o nt r ar y se t f or th here i n , a ny Clas s B H o lde r m a y p l edg e s uc h H o lde r ’ s s h are s of C las s B Commo n St o c k t o a p l edg e p u r suan t t o a bo na f i d e p l edg e of suc h s hare s a s coll a tera l s ecurit y f o r indebt e dnes s due to t he p led g e , p r o vi d e d tha t s u c h share s s h a l l no t b e transfer r e d t o o r registere d i n t h e nam e o f th e pledg e an d shal l remain s u bjec t t o t he p r o visi o n s of th is S ectio n (C) . I n th e even t o f f o r eclosu re or ot h e r s imila r act i o n b y t h e p led g e , s uc h p l edged s h are s of Clas s B Commo n stoc k ma y on ly be t rans f er r e d t o a Pe r mi t te d T r ans f ere e o f t he p l edg e o r converte d int o share s o f Co m mon S tock, as the pledg e ma y elect.

(3) Fo r pu r p o se s o f t hi s Sec t io n ( C):

(a) Th e re l ati o nshi p of an y p erso n t ha t i s de r ive d by o r t h r o u gh l ega l ad o pti on shal l be c o nside r e d a nat u ra l o n e.

(b) Eac h join t owne r o f share s o f Clas s B C om m o n S toc k shal l be c o nside r e d a “ c l ass C l as s B Ho l de r” of suc h sha r es.

(c) A mi n o r f or w ho m s ha r e s o f Cl a s s B Commo n St o c k a re he ld p u r s u an t t o a Un i f o r m G i ft s to M i no rs Ac t o r sim i lar l a w shal l b e co n side r e d a C las s B Holde r o f suc h shares.

(d) Unles s otherwis e s p ecified , th e ter m “person ” mean s bot h na t ura l p erso ns a nd lega l e n tit i es.

(e) Wi t ho ut der o gat i n g f r o m t he elec t io n co n fe r re d u p o n th e Co r po r ati on pu r suan t t o s ubc l aus e ( ii i) o f claus e (a) above , eac h r eferenc e t o a corporatio n shal l includ e an y succe s so r co r po r ati on r es u lt i n g f r om m er g e r o r co n s o li d ati on and eac h referenc e t o a pa r tnershi p shal l includ e an y successo r pa r t ne r s h i p r es u lt i n g f r o m th e deat h or w i th d rawa l of a p a r t n er.

(4) An y tra n sfe r of share s of Clas s B Comm on S toc k n o t permitt e d here u nde r shal l r esul t in th e co n ve r s i o n of t he tran s f eree’ s share s of Clas s B C om m on S t o c k i n t o sh a r e s o f Clas s A Co m m o n S tock , effectiv e a s o f th e dat e on which certificate s representin g suc h s h a re s ar e presente d fo r transfe r o n t he b oo ks o f t h e C or p o r ati o n . Th e Co r po r at i o n ma y, i n c o nnec t io n wi th p re p ari ng a l is t of s t o ck h ol d er s en t it l e d t o v o t e a t a ny meeti ng o f s t o ckh o lders , or a s a c o nd i ti on t o t he tran s f e r o r th e registratio n of

s h are s of Clas s B Commo n Stoc k o n t h e C o r p o r atio n ’ s bo o k s r eq u ir e t he f ur n ish i n g o f s uc h a f fi d avi ts o r o the r p ro of a s i t deem s necessar y t o establis h tha t an y per s on i s th e b eneficia l o wne r o f sh are s o f C las s B C o m mo n S t oc k o r i s a Pe r m i tted Transferee.

(5) S h are s of C l a ss B C o m m o n S toc k s h al l be re g i s tere d i n th e n ame s o f th e beneficia l owner s thereo f an d n o t i n “street” o r “nominee ” name . Fo r thi s purpose , a “beneficia l owner ” of a n y shar e s of Clas s B Commo n Stoc k shal l mea n a p erson w ho , or a n ent i t y w hic h possesse s t h e p owe r, e i the r sin g l y o r j oi n tl y, t o d irec t th e v ot i n g or d ispos i tio n o f s uc h sha r es . T he c o r p ora t io n Co r po r ati on s h al l no te o n t he ce r ti f icate s f o r s ha res o f C la s s B C o m m o n s toc k S t o ck t hat there are re s trictions o n th e transfe r an d regi s tra t io n of transfe r im p ose d b y Art i cl e F o u r th , Sect i o n C he r eo f.

(D) Th e Boar d o f Director s i s expressl y authorized , subjec t t o t h e l i m i tati o n s p r e s cri b e d b y law , t o pr o vi d e f o r t h e i ss uanc e o f t he Preferre d Stoc k in s eries , an d t o fi x b y resol u tio n or res o lu ti o ns p r o v idi ng f or th e issu e o f a n y s erie s th e numbe r o f share s included i n s u c h se r ie s an d t he d es i gna t io n s , relativ e powers , preference s an d r i gh t s , an d t he q ual i f i ca t io n s , l i m i t ati o n s or r es t ric t io ns t he re o f .

FIFTH . N o holde r o f share s of t h e capita l s toc k of an y clas s o f th e cor p o r ati o n Co r p o rat i o n sha ll ha ve an y p re - em p ti ve or preferentia l righ t o f subscriptio n t o an y share s of an y clas s o f stoc k o f th e cor p o r ati o n Co r p o rat i on , w het h e r n o w or h erea f ter a u th o r i ze d, o r t o an y b o n ds , debenture s o r othe r s ecuritie s con v er t ibl e in to stoc k o f an y class , a nd al l s uc h a d di t io n a l s ha r e s of s t ock , bo n ds , d e b ent u re s o r o the r sec u ri t ie s c o n v ert i bl e i n t o stoc k m a y b e issue d an d dispose d o f by th e Boa rd o f D irec t or s to su c h p er s o n o r pe rs on s a nd on s uc h te r m s a nd f o r s uc h con s i d eratio n (s o fa r a s m a y b e permit t e d by law ) a s th e Boar d of Directors , i n i ts a b s o lu te d i s cretion , ma y dee m advisable.

S I XTH . T he c o rp o ra t io n Co r po r ati on i s to hav e pe r pe t ua l exis t ence.

SEVENT H. Th e p r i vat e p r ope r t y o f t h e s t ock h ol d er s s h al l n ot be subjec t t o th e paymen t o f corporat e debt s t o an y extent whatever.

E I GHT H. Whe n eve r a c o m p r o m i s e o r arrangemen t i s propose d betwee n t h i s co r p o rat i on C o r p o r atio n a nd i t s c r edi t or s o r any c l as s of them , and / o r bet w ee n t h i s co r po r ati o n C o rp o ra t io n an d it s s toc k ho l de rs o r an y c l as s of t hem , a ny co u r t o f equ i tab le j u r i s dic t io n w i thi n t he S t a t e of Delawar e may , on th e applicatio n i n a summa ry wa y of thi s cor p o r ati on o r of a ny c r edi t o r o r stockholde r thereof , o r o n th e applicatio n o f an y receive r o r receiver s appointe d fo r t hi s corporation Corporatio n unde r the p r o visi o n s o f Secti on 2 91 of Ti t l e 8 of t h e D e l awa re Cod e o r o n t h e ap p lica t io n o f t r ustee s i n disso l ut i o n or of a ny r ece i ve r or receiv e r s appointe d fo r t hi s cor p oration Corporatio n unde r th e p ro v isio ns o f S ecti on 2 7 9 o f Titl e 8 of t h e Delawar e Co d e , orde r a meet i n g o f th e cre d it o r s o r clas s o f c r edi t o r s , and / o r o f th e stoc k ho l der s o r c l as s o f s t o ckh o lde rs of th is co r p o rat i on C or p o r a ti o n, a s th e cas e ma y be , t o b e summone d i n suc h m anne r a s t h e s ai d cou rt di r ects . If a majo r i ty in numbe r r ep r esenti ng th r ee- f o u rt h s in valu e o f t h e c r edi t o rs o r clas s of cred i to rs, and / o r o f t h e st o ckh o lde rs o r c l as s o f stoc k ho l de rs o f t h i s co r p o rat i on C or p o r ati o n, a s th e cas e ma y be , ag r e e t o a ny compr o m i s e o r a r ra n gemen t an d t o a ny reo r ga n izati on o f t h i s c o r p ora t io n Co r po r ati on as c o nseq u enc e o f su c h compr o m i s e or ar r angemen t, t he sa id compr o m ise or ar r angemen t a nd th e s ai d r eo r gan i zati on s h all , i f sa n ctio n e d b y th e co u r t to w h ic h t he sa id ap p licat i o n h a s b ee n ma d e , be bi n di ng o n a ll th e c r edi t o rs o r clas s of c r edi t ors , a n d / or on al l th e stoc k h o lder s o r c l as s o f s t o ck h ol d ers , o f thi s corp o r ati o n C o rp o ra t io n , a s t he cas e ma y be , a nd als o o n th is c o r p ora t io n Co r po r ati o n.

N I N T H. Meet i ng s of stoc k ho l der s m a y b e hel d w i th o ut o utsi de of t h e S ta te o f De lawa re, i f t he b y l a w s B y - La w s s o p r o v id e. T he b oo ks o f t h e co r p o rat i on C o r p o r atio n ma y b e ke pt (s u bjec t to an y pr o vis i o n co n tai n e d i n t h e stat u es Delawa re Gene r al C o rp o ra t ion Law ) o utsid e o f th e Stat e o f Delawar e a t s uc h plac e o r p lace s a s ma y b e fro m tim e t o tim e designate d b y th e Boar d o f D irectors or i n t h e by l aws By - La ws of th e co r p o rat i on C or p o r ati o n.

TENT H. T he p r ov i s i on s of thi s A m e nded and Re s t ate d C ertificat e o f I n cor p o r ati on sha ll n ot b e m o di f ied , r evised , al t ere d or amended , repeale d or re s cinde d i n w ho le o r i n p art , w i th o u t t h e af f i r ma t iv e v ot e o f s ix t y - s ix an d tw o -t h i r d s ( 66 2/ 3) p ercen t of t h e vo t e s t o w hic h t h e ho l de rs o f th e o u tstan d in g st o c k ar e en t itle d.

ELEVENTH . (A ) A directo r of th e C o rpor a t io n s h al l no t b e perso n a l l y l i abl e t o t h e Co r po r ati on o r it s s toc k ho l der s f or m one t ary damage s fo r breac h o f fiduciar y dut y a s a director , excep t fo r liabilit y ( i ) fo r an y b reac h of t h e director’ s dut y o f loyalt y t o t he C or p o r ati on o r it s s toc k ho l ders , ( i i ) f o r ac ts or omissi o n s no t in g o o d f ait h or w h ic h i n vo l v e in t ent i ona l misc o nd u c t o r a k no wi n g violatio n o f l aw , (iii ) unde r S ec t io n 17 4 o f t h e D elawar e Genera l C or p o r ati on Law , or ( i v) f o r an y t r ansacti on f r om w hic h t he d i r ecto r de r ive d a n imp r ope r pe rs ona l bene f it . I f t he Dela w ar e Ge n era l Cor p orati on La w i s amen d e d af t e r a p pr o va l by t he C or p o r ati o n’ s s t ock h ol d er s of t hi s Ar t icl e t o a u th o r i z e co r po ra t e ac t io n fur t he r elimi n ati ng o r l im i ti ng t h e perso n a l l i abi l i ty of Directors d irectors , t h e n t h e li ab ili ty o f a Direct o r d i rect or o f t h e Corporati on s h al l b e elimi n ate d o r l im i te d t o t he f ul l es t extent permitte d b y th e Delawar e Genera l Co r po r ati on La w, a s s o amen d e d.

An y repea l o r modificatio n o f the immediately preceding paragrap h th is S ect i on ( A) by t he s toc k ho l de rs o f th e C o r p ora t io n shall n o t adve rs el y af f ec t a ny r i g h t o r p r otect i o n o f a D i r ec t o r di r ecto r of t h e C or p orati on e x isti ng a t t he tim e of s u c h repea l o r mo d ificati o n.

(B) Eac h perso n wh o wa s o r i s mad e a part y o r i s t hreatene d t o be m ad e a par ty t o o r is o t he r wis e inv o lve d in an y acti o n , su i t o r proceeding , whethe r civil , c rim i nal , administrativ e o r investi g ativ e (hereinafte r a “proceeding”) , b y reaso n o f th e fac t tha t h e o r s he is or w as a d i r ec t o r , o f f ice r o r empl o ye e o f t he Co r p o rat i o n o r i s o r wa s s e r v i n g a t th e req u e st of th e Corporatio n a s a d irecto r, officer, emp l oye e or a g en t of an o the r co r po r at i o n or o f a pa r tne rs hi p, j oi nt ve n tu r e , t r u s t o r o the r enterprise , i ncludin g s ervic e wit h re s pect t o employe e benefi t plan s (hereinafte r a n “ i ndemnitee”) , whethe r t he ba s is of such proceeding is al l ege d actio n i n a n officia l capacit y as a director , officer , employe e o r a g e nt o r i n an y ot h e r capac i t y whil e s ervin g a s a director , o f ficer , employe e o r agent , shal l be i ndemn i fie d an d he ld h armles s b y t he Co r po r ati on to t h e f ul l es t exten t authorize d by th e Delaw a r e Genera l Corpor a tio n Law , a s t he sam e exist s o r m a y hereafte r b e am e nde d ( but , in th e cas e o f a n y such a m e n d me nt , o n l y t o th e e x te n t t hat s u ch a me n d m e nt p er m it s th e Corporatio n t o provid e broa d e r i n demni f icati on r ig h t s t h a n s uc h la w p er m it t e d t he Co r po r ati on to p r o v id e p ri or to s uc h amen d m e n t ), aga i ns t al l expe ns e , l i abi l it y a nd l oss ( inc l ud i n g attorneys ’ fees , judgments , f ine s , ERIS A excis e taxe s o r penal t ie s and amo u nt s pai d i n sett l eme n t ) reas o nab ly i ncu r re d o r s u ff e r e d b y suc h indemnite e i n connectio n therew i th , a nd su c h i ndemn i fica t ion s h al l c o nt i nu e a s t o a n i ndemni t e e w ho h a s cease d t o b e a d i r e ct o r, o f f ice r, emp l oye e o r agen t an d s h al l inur e t o th e benefi t o f t he i ndemn i tee’ s hei r s , exec u to rs an d admi n ist r ato r s ; p r o vi d ed , h o wever , that , excep t a s provide d i n paragraph Sectio n (C ) hereo f with respec t t o proceeding s to enforc e right s t o indemnification , t he Corp o rat i o n shal l in d em n if y a ny suc h indemnit e e i n connectio n w ith the a proceedin g (o r par t t hereof ) initiate d b y suc h indemnite e onl y i f suc h p roceedin g (o r par t t hereof ) wa s authorize d by th e B o ar d of D i r ec t o r s of th e Co r p o rat i on . T he r ig ht to in d e m n i f ica tio n c o nferre d in t hi s S ec t io n (B ) s h al l b e a co n trac t r ig ht an d shal l i n clu de t h e r ig ht to be pai d b y th e C or p o r ati on t he ex p ense s inc u r r e d i n defendin g an y s u c h p roceedin g i n advanc e o f it s f ina l di s pos i t io n (hereinafte r a n “advancemen t o f e xpe n s es” ); p r o v ide d, h owe v er , that , i f t h e Delawar e Genera l Corporatio n L a w require s , an a d vancemen t of expe ns e s i n cur r e d b y a n i n demni t e e i n h i s or he r cap a cit y a s a directo r o r office r (an d no t i n an y o the r cap a c i t y i n whic h servic e wa s o r is rendere d b y s u c h i ndemni t ee , incl u di ng wit h ou t limita t io n, serv i c e t o a n emplo y e e be n efi t pla n) s h al l be mad e o nl y up on de l ive ry t o th e C o rp o ra t io n o f a n un d erta k in g, by o r o n b ehal f o f suc h i n demni t ee , to re p a y al l amo u nt s s o a d v a nced if i t s h al l u lt i mate ly b e d etermi n e d b y fina l decisi on fro m wh i c h the re i s n o f u r the r ri g h t to appea l tha t suc h in d em n ite e i s n ot ent i tled to b e in d em n ifie d f or suc h ex p e n se s u nde r thi s Sectio n (B ) or o therwis e (hereinafte r a n “undertaking”).

(C) If a c laim u n d er p ara g ra ph Section (B ) of th is A rticle i s n o t p ai d i n f u l l b y t he C o r p ora t io n w ith in s i xt y d ay s afte r a wr i tten clai m ha s bee n receive d b y t h e corporation Corporation , excep t in th e cas e o f a clai m f o r a n advancemen t o f expenses , i n whic h case t h e ap p lica b l e pe r io d s h al l b e t wen ty days , th e i ndemn i te e ma y a t an y t im e t he r ea f te r b r in g s u i t aga i ns t t he Cor p orati on t o r e cove r the unp a i d amoun t o f th e claim . I f s ucce s sfu l in whol e o r i n par t i n a ny suc h su i t o r i n a s u i t b r o u gh t b y t he Co r po r ati on t o reco ver an a d vancemen t of ex p ense s p u rs u a nt t o t he t erm s of a n u n der t aki ng, t h e in d em n ite e shal l b e en t itle d to b e pai d als o t he e x pens e of p r o s ec u ti ng or defe n di ng s uc h su i t . I n ( i) an y s u i t br o ug ht by t h e i ndemn i te e t o en f o r c e a r i gh t t o in d em n i f icati on h ereu n de r ( b u t not in a s u it b r ou g h t b y t he i ndemn i te e to en f orc e a r i g h t t o a n a d v a ncemen t o f expenses ) i t shal l b e a d efe n s e t h a t, an d ( ii ) a ny s u i t by th e Corporatio n t o recove r a n ad v ancemen t o f expense s pursuan t t o t he term s o f a n u n d erta k in g, t h e C o rp o ra t io n shal l b e en t it l ed t o recove r suc h expense s upo n a fina l a d jud i cati on t h at , t he in d e m n ite e h a s no t m e t th e a p pl i cabl e s ta n da rd o f co n duc t se t f or th i n t he D elawa re Gene r a l Co r p o rat i o n Law . Nei t he r t h e fai l ur e of th e C o rp o ra t io n ( inc l ud i n g i ts B o ar d of D i rect o rs , i nde p ende nt legal counsel , o r it s s tockhol d ers ) to hav e m ad e a d etermi n ati on pr i o r to th e commenceme nt o f su c h s u i t t h a t in d emn i f i catio n of t he i ndemn i te e i s p r o pe r i n t he

circumstance s becau s e th e indemnite e ha s me t th e applicabl e s ta n da rd o f co n duc t se t fo r t h i n t h e D elawa re G enera l C o rp o ra t ion La w, n o r a n actua l dete r m i nati on b y th e C o rp o ra t io n (i n clu d in g it s Boa rd o f Di r ect o rs , i nde p ende nt le g a l cou n sel , or i ts s t ock h ol d ers ) tha t t he i ndemni t e e ha s no t m e t s uc h ap p lica b l e s ta n da rd of con d uct , s ha ll c r eat e a p r es u m p ti on t ha t th e in d em n i te e has n o t me t s u c h a p pl i cabl e s ta n dar d o f co n d u c t o r, i n t h e cas e o f suc h a s ui t b r ou g h t b y t h e i ndemni t ee , b e a de f ens e t o s uc h s u i t . I n a n y s u i t b r o u gh t by t he i ndemn i te e t o e n fo r c e a ri g h t to in d em n if i c ati on or a d vancement of ex p ense s h ere u nde r, or b y t h e Co r po r at ion t o recove r a n advanc e m en t o f expense s pursuan t t o t h e term s of a n u nde r ta k in g, th e bu r de n o f p r o vi ng tha t t he i n demni t e e i s not e n ti t le d t o be i ndemnifie d or t o suc h advancemen t o f expense s u n de r t hi s Sec t io n Ar t icl e o r o th e rwi s e shal l b e on th e Corporation.

(D) Th e r i gh ts t o in d em n i f icati on an d t o th e adva n ceme nt of expe n se s con f er r e d i n th is Sec t io n A r ticl e s hal l n ot be exc l usiv e o f a ny o the r r i gh t wh i c h an y pe r s on ma y ha ve o r he r e a f te r acqu i r e u nde r an y s t atu t e , t h i s Amen d e d and Restate d C ertificat e of Incorporation , by-law any By-La w , agreement , vot e o f stockholde rs or dis i nteres t e d di r ector s o r otherwise.

(E) T he Co r po r at i o n ma y mai n tai n i n s urance, a t its e xpense, to protec t itsel f an d an y directo r , officer , employe e o r agen t o f t he C or p o r ati on or a n ot h e r c o r p ora t io n, pa r tne rs hip , j oi nt v ent u re , trus t o r ot h e r enterpris e agai n s t a ny e x pense , lia b il i t y o r lo ss, w hether or no t t h e C o r p o r a t io n w ou ld h av e th e po w e r t o in d em n if y suc h p erso n aga i ns t s u c h expe n s e , l iab i li ty or los s u nde r t he D e l awa re G ene r a l Co r po r ati on La w.

(F) T h e C o rp o r at io n ma y , t o t h e ex t en t au t ho r ize d fr o m t im e t o t i m e b y th e B o ar d of D irec t ors , gran t r ig h t s t o i ndemn i fica t ion an d t o th e advancemen t o f expens e s , t o an y agen t o f th e Corpor at io n to t h e f u lles t ex t e nt o f t h e p r o visi o n s o f t h i s A r t icl e wit h respect to th e i n demni f icat i o n an d a d vancemen t o f expense s o f directors , officer s an d employee s of t he C o r p ora t io n.

TWELFTH . (A ) Th e Boar d o f D ir e ct o r s sh al l c o nsis t o f n ot les s t h a n f i v e ( 5 ) no r m o r e t ha n f i f tee n ( 15 ) m e m b er s an d s h al l be d iv i de d i nt o th r e e classe s a s n earl y eq u a l i n n umbe r a s p ossib l e . At t he ann u al m eeti ng of s toc k ho l ders in 1 9 87, t he di r ecto rs o f one class shall be elected f or a t erm of one year, the directo r s of the s e c ond class shall be ele c t ed for a term of two y e a rs, an d t he d i rec to rs of t he t hi rd cla ss Each directo r s hal l be electe d f o r a ter m of thre e year s . A t eac h a n nua l meetin g o f th e s tockhold e rs after the 1988 annual m eeting , t h e s uccessor s of th e director s of t h e clas s w h os e te r m s e x pi re i n tha t yea r s hal l b e electe d t o h old offic e fo r a ter m o f thre e year s , s o tha t t h e ter m o f offic e o f on e cla s s o f director s shal l expir e i n eac h year.

(B ) Vacancie s in and newly created directorships o n t h e Boar d o f D irector s ma y b e fille d b y a v ot e o f three a majorit y o f the director s the n i n office , althoug h l es s tha n a q uorum . D irecto rs s o electe d s hal l hol d o ffic e unt il th e ne xt electi on o f t h e clas s f or whic h suc h Directors director s s h al l hav e bee n c h ose n an d u nt il thei r s u cces s o r s shal l hav e b ee n electe d an d qualified.

THIRTEENTH. The Board of D irecto rs is expressly e m powered to a d opt, amend or r epeal the By-L a w s o f the C o r p o r ati on . T he s t ock h ol d ers s h all also h ave the p o wer to ado p t, amend o r r epea l t he B y-La ws of the C o rp o ra t io n; pr o vi d ed, h owe v er, tha t, i n a d di t ion t o a ny vo te of the ho l ders o f any class or s eries of st o ck of the Co r po r at i on re q ui r ed by law or b y t his A me n ded and Re s t ated Certificate of Incorpo ra ti o n , such act io n by st o c k h olders s h all req u ire t he aff i rmati ve v ote o f t he h ol d ers of a t le a st a maj o ri ty o f t he v ot i ng po w er o f a ll of the t h en- o uts t and i ng sh a res of t he ca p ital stock of the Co r po r ati on ent i tled to v o t e ge nerally in the election of directors, v o ti ng to g ether as a sin g le c l as s .

3. Th e a fo r esai d a mendmen t wa s d u l y adopte d in accordanc e wit h t he a p p l i ca b l e p r o vi s i o n s o f S ec t io n 24 2 a nd 2 45 o f th e Genera l Corporatio n La w o f th e S t at e o f Del a ware.

I N W I TNES S W HEREOF , the foregoing is executed by the Vice Pre s i d e nt o f t h e The Cato Cor p oration and attested b y the Assistant Secretary of t he Corporation has caused the Amend ed and Restated Certificate of Inc o rp o rat i on t o be e x ecu t e d

by_

, i ts

_ , t hi s 6 th da y of M a r ch , 19 8 7 2 0 20.

TH E CAT O CORPORATION

By:

A lan E . W iley

Executive Vice President Secretary

Chief Financi al and Administr a t i ve Officer

[name] [ t it l e]

ORIGINAL C E RTIFICATE OF INCORP O RATION FILED MARC H 28, 1946

ATT A CHMEN T B

A m end m ents to Cato Co r poration’s 19 87 Byl a w s Adopte d b y t h e Bo a r d o f Directors 199 3 Amendmen t 1

ARTICL E V

OF F I CERS

Sect i o n 1 . O f fice rs of t he C or p o r ati o n . Th e o ff icer s o f t h e corpo r ati o n C o rp o ra t io n s ha ll b e chosen b y co n s i st of such o ff icers as th e board Boar d o f directors and sha ll b e Di r ecto rs may f rom t ime t o time elect i n clu d ing wi t ho ut l imitat i ons , a C h airma n o f t he Boar d or , a President or both Ch i ef Executive O fficer, a Chief Fin a n cial Officer, a Chief Oper a ting Officer, a Chief Merchandi s ing Officer, a Chief Marketing Off i cer , a Vic e Chairma n o f th e Boa r d , a pre s i dent , a Secretary , a T reasurer and a Controller. T he b o ard of directors may also choose a V i ce President or , and such o ne or m ore Executive Vice pre s ident s , Senio r V ice-Pre s idents , and o ne or m or e and Vice Pre s idents with such v ice presidential design a tions, if any, as the Board m ay determine, and such Assistant V ice Pre s ident s , Assist a nt Secretaries , an d As s i s t an t Trea s urers , T wo as the B o ard of D i rect o r s may elect. A ny t wo ( 2) o r m ore of s uch office s m a y b e hel d b y th e sam e person , excep t th e office s of P resident presiden t an d Secretar y o r Assistant P resi d ent assistant p resi d en t a nd Ass istant Secretary assistant secretary.

The Chairman and C hief Executive Officer i s hereby v e s ted with the aut h o r ity t o app o in ts s u c h o ther o f f i cers a nd assign s uch duties a s he m ay d e e m appropria t e fr om t ime to time and it is further under s t ood that all officer s serve at d iscretion of the Chairman and Chief E x ecutive O fficer, and it is u n de r s t ood t hat the Cha i rman and Chief Executive Officer w il l kee p t h e B o ar d i n f o r m e d o f a ny such ap p oi n tments and cha n ges at t he re g ular b oa rd meet i ng.

1 A d op t e d b y t he B oar d on Janua ry 28 , 1 9 93.

200 7 Amendmen t 2 ARTIC LE VI

C E RTIFI C ATES SH A RE S O F STOCK

Sectio n 1 . Certificates . E v ery Sharesof stock in t he c o rp o ra t ion m ay b e certificated o r uncerti f icated a s p r ov i ded u nder t he G ene r a l C or p o r ati on Law of the S tate o f De l aware. Eac h h ol d e r o f st o c k in th e co r po r ati o n , u pon w ri t ten re q uest t o t he t r ans f e r agent of t he co r p o rat i on , s ha ll b e entitle d t o h av e a certificate , s ig n e d b y , o r i n t h e n am e of t h e co r p o rat i o n b y , th e P r es i den t p r e s i den t o r a Vice President vice vice presiden t an d th e Tr e asurer treasure r or an A s s i s tant Treasurer assistant t r ea s urer , o r th e S ecretary secretar y o r a n As s i stant Secreatry a s si s t ant sec r etar y o f th e co r p o rat i on , ce r ti f yi ng t he n umbe r o f sh are s ow n e d b y hi m i n t h e co r p o rat i on . I f t he c o r p o r a t io n shal l b e au t ho r ize d t o i s s ue m o r e t h a n o ne clas s o f s tock , o r m or e tha n on e s erie s o f an y c l ass , t he desig n ati o ns, preferenc e an d relative , partici p ati n g , o pt i ona l or ot h e r s pecia l r ight s o f eac h clas s o f s toc k or s erie s thereo f an d th e qua l ificati o ns, l imita t ion s or res t ric t io ns of suc k p re f erence s an d /o r r i gh ts s ha ll b e se t f o r th i n f ul l o r s ummariza t io n o n t he o r t h e bac k of t he certificat e whic h th e corporatio n shal l issu e t o represen t suc k class or series of stock , o r , i f uncertificat e d , in the n ot i c e required to be sent t o the registered owner t hereof i n accordance with D elawa re law ; provided , h owever , tha t ex c ep t a s o therwis e p rovide d in Sect i o n 2 0 2 of t he Gene r a l Co r p o ratio n La w o f D elaware , in lie u o f t h e f o r g oi ng r eq ui re m e nts, t he re may be set f o rth on t he f a c e or th e bac k of th e certificat e whic h th e corporatio n shal l i s su e t o represen t suc h clas s o r s erie s o f s tock , or in the case of u ncertificated st ock , i n t he no t i ce re q ui red t o be sent t o t he r e g is tere d o w n e r thereof , a s tatemen t tha t t h e corporati on wi ll f u r n is h wi t ho ut charg e t o eac h s tockholde r wh o so request s a cop y o f th e designations , preferences , an d relative , partici pa tin g op t io n or o t h er t o s pec i a l r i gh ts o f eac h clas s o f stoc k or e serie s thereo f an d th e qualificatio n s , limi t ati o n s or res t ric t io ns o f s uch p re fe re n ces a n d /or r i gh ts.

Sect i o n 4. T r ansfer of S t o ck . Up on s ur r en d e r t o th e corporation s o r th e t rans f e r age nt o f th e co r p o rat i o n of a cer t if i cat e f or s ha r e s dul y endor s e d o r accompanie d b y th e prope r evidenc e o f s uccess i o n , ass i gnmen t o r au t ho r it y t o t r ansfe r, i s s hal l b e t h e d ut y o f the corpor a t io n t o issu e a ne w cert i ficat e t o th e perso n entitle d thereto , canc el th e ol d certificat e an d r ec o r d t h e tra ns actio n u pon it s bo o ks. U pon a t r ans f e r of u nce r ti f icated s hares of s tock, the record o f such p erson’s stock shall be cancelled and shares s hall be transferred to t he p ers on e n tit l ed t hereto up on t h e is s u ance of a cer t ificate or an electronic transfer of su c h s ha r e s. A reco rd s h al l b e made o f each tr a nsfer and whenever a transfer shall be m ade for collat e ral sec u r i ty, and n o t a b s o lu t ely, it sha ll be so e x pressed in t h e e n tr y o f the transfer.

2 Adopte d b y th e Boar d o n Decembe r 6 , 2007.

200 9 Amendmen t 3 ARTIC LE VI

C E RTIFI C ATES SH A RE S O F STOCK

Sect i o n 5 . C losi ng o f Tra n s f er Bo o ks . Th e b o ar d o f d i r ec t o rs may c l os e t h e s o c k tra ns fe r b o o ks o f t h e c o r p ora t io n f o r a pe r iod no t exceedin g fifty sixty ( 60 ) da y s precedin g th e dat e o f an y mee t in g of th e s toc k ho l de r s , o r t h e d at e f or paymen t of an y d i vi d end , o r t h e d at e f o r t h e a l lotmen t o f r i g ht , or th e dat e whe n an y cha n g e o r conversio n or exchang e of capital stock shall go i nto eff e ct , o r f or a perio d o f no t exceedin g fifty s ixty ( 60 ) day s i n connectio n w i t h ob t ain i n g t he co ns en t o f s t o ckh o lde r fo r a ny pu r p o se . I n l i e u of c l osi ng th e st o c k t r ansfe r bo o k s a s afo r esaid , t he b oa rd o f di rec to rs m a y f i x in adva nce a da te , n o t exce e d in g fi f t y s i xt y (6 0) da ys precedin g th e dat e of an y meetin g o f s tockholders , or th e dat e f or t h e pa y m e nt o f an y di v ide n d , o r t he dat e f o r th e allo t m e nt o f r ig h t , or t h e dat e w he n a ny cha n g e o r conversio n o r exchang e o f capit a l stoc k s h al l g o in to ef f ect , o r a dat e i n con n ectio n wi th o b tai n ing suc h consent , a s a r ecor d dat e f or d etermi n ati on of t h e s toc k ho l de rs enti t le d to n otic e of , an d t o vo te a t an y s uc h meet i ng , an d any adjournmen t thereof , or en t itl ed t o r eceiv e paymen t o f an y suc h d ivi d end , o r t o an y su c h all o tmen t o f ri g hts , o r to exerc ise th e r i ght i n respec t o f an y suc h change , conversio n or exchang e c apita l st o ck , o r to g iv e s uc h conse n t , an d i n suc h cas e suc h s toc k h o lde rs an d o nl y s uc h st o ckh o lde rs a s s h al l b e s toc k ho l der s o f r ecor d on th e dat e so fi x e d s h al l b e ent i tle d t o s uc h n ot i c e o f a nd t o v o te a t s uc h meeting a nd any adjournment th e r eof , o r t o r eceiv e paymen t o f s uc h dividend , o r to receiv e s u c h allotmen t o f rights , o r t o exerc ise su c h ri g ht s, o r to gi ve su c h consent , a s th e cas e ma y b e , notwithsta n di ng an y t r ansfe r o f an y s t oc k o n t h e bo o k s of t he c o rp o r ation afte r an y suc h recor d dat e fixe d a s afor e said.

3 A d op t e d b y t he B oar d on Fe b r u ar y 2 6, 2 00 9.

ATTACHMENT C

STATE OF DELAWARE

AMENDED AND RESTATED BY-LAWS OF THE CATO CORPORATION

INDEX

ARTICLE I OFFICES

Section 1......... Registered Office 4

Section 2......... Other Offices 4

ARTICLE II MEETINGS OF STOCKHOLDERS

Section 1......... Location 4

Section 2......... Annual Meeting 4

Section 3......... Stockholder Nominations 4

Section 4......... Notice and Business to Be Conducted 5

Section 5......... Stock Ledger 5

Section 6......... Special Meetings 6

Section 7......... Notice of Special Meeting 6

Section 8......... Business at Special Meeting 6

Section 9......... Quorum 6

Section 10....... Vote 6

Section 11....... Proxies 6

Section 12....... Action Without Meeting 7

ARTICLE III DIRECTORS

Section 1......... Number 7

Section 2......... Vacancies 7

Section 3......... Powers 7

Section 4......... Chairman of the Board 7

MEETINGS OF THE BOARD OF DIRECTORS

Section 5......... Location 8

Section 6......... Regular Meetings 8

Section 7......... Special Meetings 8

Section 8......... Quorum 8

Section 9......... Action Without Meeting 8

Section 10....... Meeting by Conference Telephone Communications 8

COMMITTEES OF DIRECTORS

Section 11....... Committees 8

COMPENSATION OF DIRECTORS

Section 12....... Compensation 9

ARTICLE IV NOTICES

Section 1......... Writing 10

Section 2......... Waiver 10

ARTICLE V OFFICERS

Section 1......... Officers 10

Section 2......... Election 10

Section 3......... Other Officers 10

Section 4......... Salaries 11

Section 5......... Term 11

THE PRESIDENT

Section 6......... Duties President 11

Section 7......... Powers Vice Presidents 11

THE VICE PRESIDENTS 0

Section 8......... Duties Secretary 11

THE SECRETARY AND ASSISTANT SECRETARIES 0

Section 9......... Duties Assistant Secretaries 12

Section 10....... Assistant Secretaries Treasurer 12

THE TREASURER AND ASSISTANT TREASURERS

Section 11....... Duties Assistant Treasurers 12

Section 12....... Disbursement Controller 12

Section 13....... Bond 0

Section 14. Assistant Treasurer

CONTROLLER 0

Section 15. Duties

OFFICIALS AND AGENTS 0

Section 16. Officials and Agents

ARTICLE VI CERTIFICATES SHARES OF STOCK

Section 1......... Certificates 12

Section 2......... Facsimile Signatures 13

Section 3......... Lost Certificate 13

Section 4......... Transfers of Stock 13

Section 5......... Closing of Transfer Books 14

Section 6......... Registered Stockholders 14

ARTICLE VII RIGHT OF FIRST REFUSAL ON ESOP STOCK

ARTICLE VIII GENERAL PROVISIONS

Section 1......... Dividends 15

Section 2......... Reserves 15

Section 3......... Annual Statement 16

Section 4......... Checks 16

Section 5......... Fiscal Year 16

Section 6......... Seal 16

ARTICLE IX AMENDMENTS

Section 1......... Amendments 16

STATE OF DELAWARE AMENDED AND RESTATED BY-LAWS OF THE CATO CORPORATION

Article I

OFFICES

Section 1. Registered Office . The registered office in Delaware shall be in the City of Wilmington, County of New Castle, State of Delaware.

Section 2. Other Offices . The corporation may also have offices at such other places both within and without the State of Delaware as the board of directors may from time to time determine or the business of the corporation may require.

Article II

MEETINGS OF STOCKHOLDERS

Section 1. Location . Meetings of stockholders for any purpose may be held at such time and place, within or without the State of Delaware, as shall be stated in the notice of the meeting or in a duly executed waiver of notice thereof.

Section 2. Annual Meeting . The annual meeting of stockholders shall be held on such day in each year not earlier than March 10 nor later than June 15 and at such hour as shall be fixed by the board of directors. At such annual meeting the stockholders shall elect by plurality vote the successors of the class of directors whose term expires at such meeting for a term expiring at the annual meeting of stockholders held in the third year following the year of their election, and shall transact such other business as may have been properly brought before the meeting in accordance with Section 4 of this Article II.

Section 3. Stockholder Nominations . Only persons who are nominated in accordance with the procedures set forth in this Section 3 shall be eligible for election as directors. Nominations of persons for election to the board of directors of the corporation may be made at a meeting of stockholders by or at the direction of the board of directors or by any stockholder of the corporation entitled to vote for the election of directors at the meeting who complies with the notice procedures set forth in this Section 3. Such nominations, other than those made by or at the direction of the board of directors, shall be made pursuant to timely notice in writing to the Secretary of the corporation. To be timely, a stockholder’s notice shall be delivered to or mailed and received at the principal executive offices of the corporation not later than (i) with respect to an election to be held at an annual meeting of stockholders, ninety days prior to the anniversary date of the immediately preceding annual meeting, and (ii) with respect to an election to be held at a special meeting of stockholders for the election of directors, the close of business on the tenth day following the date on which notice of such meeting is first given to stockholders. Such stockholder’s notice shall set forth (a) as to each person whom the stockholder proposes to nominate for election or re-election as a director, (i) the name, age, business address and residence address of such person, (ii) the principal occupation or employment of such person, (iii) the class and number of shares of the corporation which are beneficially owned by such person and (iv) any other information relating to such person that is required to be disclosed in solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended (including without limitation such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected); and (b) as to the stockholder giving the notice, (i) the name and address, as they appear on the corporation’s books, of such stockholder and (ii) the class and number of shares of the corporation which are beneficially owned by such stockholder. At the request of the board of directors, any person nominated by the board of directors for election as a director shall furnish to the Secretary of the corporation that information required to be set forth in a stockholder’s notice of nomination which pertains to the nominee. No person shall be eligible for election as a director of the corporation unless nominated in accordance with the procedures set forth in this Section 3. The

chairman of the meeting shall, if the facts warrant, determine and declare to the meeting that a nomination was not made in accordance with the procedures prescribed by the by-laws, and if he should so determine, he shall so declare to the meeting and the defective nomination shall be disregarded.

Section 4. Notice and Business to Be Conducted . Written notice of the annual meeting shall be given to each stockholder entitled to vote thereat at least 10 but not more than 60 days before the date of the meeting.

At an annual meeting of the stockholders, only such business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, business must be (a) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the board of directors, (b) otherwise properly brought before the meeting by or at the direction of the board of directors , or (c) otherwise properly brought before the meeting by a stockholder. For business to be properly brought before an annual meeting by a stockholder, the stockholder must have given timely notice thereof in writing to the Secretary of the corporation. To be timely, a stockholder’s notice must be delivered to or mailed and received at the principal executive offices of the corporation not later than ninety days prior to the anniversary date of the immediately preceding annual meeting. A stockholder’s notice to the Secretary shall set forth as to each matter the stockholder proposes to bring before the annual meeting (a) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (b) the name and address, as they appear on the corporation’s books, of the stockholder proposing such business, (c) the class and number of shares of the corporation which are beneficially owned by the stockholder and (d) any material interest of the stockholder in such business. Notwithstanding anything in the by-laws to the contrary, no business shall be conducted at any annual meeting except in accordance with the procedures set forth in this Section. The chairman of the annual meeting shall, if the facts warrant, determine and declare to the meeting that business was not properly brought before the meeting in accordance with the provisions of this Section, and if he should so determine, he shall so declare to the meeting and any such business not properly brought before the meeting shall not be transacted.

Section 5. Stock Ledger . The officer who has charge of the stock ledger of the corporation shall prepare and make, at least ten days before every election of directors, a complete list of the stockholders entitled to vote at said election, arranged in alphabetical order, showing the address of and the number of shares registered in the name of each stockholder. Such list shall be open to the examination of any stockholder, during ordinary business hours, for a period of at least ten days prior to the election, either at a place within the city, town or village where the election is to be held and which place shall be specified in the notice of the meeting, or, if not specified, at the place where said meeting is to be held, and at the election during the whole time thereof, and subject to the inspection of any stockholder who may be present.

Section 6. Special Meetings . Special meetings of the stockholders, for any purpose or purposes, unless otherwise prescribed by statute or by the certificate of incorporation, may be called by the President and shall be called by the President or Secretary at the request in writing of a majority of the board of directors, or at the request in writing of stockholders owning shares of the corporation’s capital stock entitled to a majority of the total number of votes entitled to be cast by the entire capital stock of the corporation issued and outstanding and entitled to vote. Such request shall state the purpose or purposes of the proposed meeting.

Section 7. Notice of Special Meeting . Written notice of a special meeting of stockholders, stating the time, place and purpose thereof, shall be given in accordance with Section 222 of the General Corporation Law of the State of Delaware to each stockholder entitled to vote thereat, at least ten days before the date fixed for the meeting.

Section 8. Business at Special Meeting . Business transacted at any special meeting of stockholders shall be limited to the purposes stated in the notice.

Section 9. Quorum . The holders of a majority of the total voting power of the capital stock of the corporation issued and outstanding and entitled to vote thereat, present in person or represented by proxy, shall constitute a quorum at all meetings of the stockholders for the transaction of business except as otherwise provided by statute or by the certificate of incorporation. If, however, such quorum shall not be present or represented at any meeting of the stockholders, the stockholders entitled to vote thereat, present in person or represented by proxy, shall have the power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present or represented. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally noticed.

Section 10. Vote . When a quorum is present at any meeting, the vote of a majority of the votes to which the holders of the stock having voting power, present in person or by proxy, are entitled shall decide any question brought before such meeting , unless the question is one upon which , by express provision of statute or of the certificate of incorporation, a different vote is required , in which case such express provision shall govern and control the decision of such question.

Section 11. Proxies . Each stockholder shall at every meeting of the stockholders be entitled in person or by proxy to the number of votes provided for in the corporation’s certificate of incorporation (or in a resolution of the board of directors fixing the powers, designations, preferences and relative, participating, optional or other special rights of a particular series of stock within any class thereof) for each share of the corporation’s capital stock having voting power held by such stockholder, but no proxy shall be voted on after three years from its date, unless the proxy provides for a longer period , and, except where the transfer books of the corporation have been closed or a date has been fixed as a record date for determination of its stockholders entitled to vote, no share of stock shall be voted at any election for directors which has been transferred on the books of the corporation within twenty days next preceding such election of directors. A duly executed proxy shall be irrevocable if it states that it is irrevocable and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. A stockholder may revoke any proxy which is not irrevocable by attending the meeting and voting in person or by filing an instrument in writing revoking the proxy or another duly executed proxy bearing a later date with the Secretary of the corporation. Voting at meetings of stockholders need not be by written ballot and need not be conducted by inspectors unless the holders of a majority of the outstanding shares of all classes of stock entitled to vote thereon present in person or by proxy at such meeting shall so determine.

Section 12. Action Without Meeting . Whenever the vote of stockholders at a meeting thereof is required or permitted to be taken in connection with any corporate action by any provisions of the statutes or of the certificate of incorporation, the meeting and vote of stockholders may be dispensed with if a consent in writing , setting forth the action so taken , shall be 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. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those stockholders who have not consented in writing.

Article III

DIRECTORS

Section 1. Number . The number of directors which shall constitute the whole board shall be fixed from time to time by resolution of the board of directors and shall not be less than 5 nor more than 12 15 . The directors shall be elected at the annual meeting of the stockholders, except as provided in Section 2 of this Article, and each director elected shall hold office until his successor is elected and qualified. Directors need not be stockholders.

Section 2. Vacancies . Vacancies and newly created directorships resulting from any increase in the authorized number of directors may be filled by a majority of the directors then in office, though less than a quorum. Any directors elected in accordance with the preceding sentence shall hold office for the remainder of the full term of the class of directors in which the directorship was created or the vacancy occurred and until his successor is duly elected and shall qualify, unless sooner displaced. The Chairman of the Board, at his discretion, may place a newly elected director, or a director filling a vacancy, into class other than the class of directors in which the directorship was created or the vacancy occurred.

Section 3. Powers . The business of the corporation shall be managed by its board of directors which may exercise all such powers of the corporation and do all such lawful acts and things as are not by statute or by the certificate of incorporation or by these by-laws directed or required to be exercised or done by the stockholders.

Section 4. Chairman of the Board . There shall be a Chairman and a Vice Chairman of the Board of Directors elected by the directors from their number at the board’s first meeting after the annual meeting of stockholders. The Chairman shall preside at all meetings of the board of directors and perform such other duties as may be directed by the board. He shall, in the absence or disability of the President, perform the duties and exercise the powers of the President, and shall perform such other duties as the board shall assign. In the absence of the Chairman, the Vice Chairman of the Board shall preside at a meeting of the board of directors.

MEETINGS OF THE BOARD OF DIRECTORS

Section 5. Location . The board of directors of the corporation may hold meetings, both regular and special, either within or without the State of Delaware.

Section 6. Regular Meetings . There shall be regular meetings of the board , which may be held on such dates and without notice or upon such notice as the board may from time to time determine. Regular meetings shall be held at the principal office of the corporation within the State of North Carolina or at such other places either within or without the State of North Carolina and at such specific time as may be fixed by the board from time to time. There shall also be a regular meeting of the board, which may be held without notice or upon such notice as the board may from time to time determine, after the annual meeting of the stockholders.

Section 7. Special Meetings . Special meetings of the board may be called by the Chairman of the Board or the President on not less than two or, in the case of notice given by mail, not less than three daysat least 24 hours’ notice to each director, either personally or , by telephone, by mail or by telegram. Specialelectronic transmission; special meetings shall be called by the Chairman of the Board, the President or Secretary in like manner and on like notice on the written request of at least four directors.

Section 8. Quorum . At all meetings of the board, a majority of the directors shall constitute a quorum for the transaction of business and the act of a majority of the directors present at any meeting at which there is a quorum shall be the act of the board of directors, except as may be otherwise specifically provided by statute or by the certificate of incorporation or these by-laws. If a quorum shall not be present at any meeting of the board of directors, the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present.

Section 9. Action Without Meeting . Unless otherwise restricted by the certificate of incorporation or these by-laws, any action required or permitted to be taken at any meeting of the board of directors or of any committee thereof may be taken without a meeting , if , prior to such action , a written consent thereto is signed by all members of the board or of such committee , as the case may be, and such written consent is filed with the minutes of proceeding of the board or committee.

Section 10. Meeting Communications. by Conference Telephone. Unless otherwise restricted by the certificate of incorporation, members Members of the board of directors or any committee designated by the board thereof may participate in the and act at any meeting of the such board or committee by means through the use of a conference telephone or similar other communications equipment by means of which all persons participating in the meeting can hear each other , and such participation in a the meeting pursuant to this Section 10 of Article III shall constitute presence in person at such the meeting. COMMITTEES OF DIRECTORS

Section 11. Committees . The board, by resolution, may designate from among its members an Executive Committee, a Finance Committee and other one or more committees, each consisting of one or more directors. Each such committee shall have all the authority of the board to the extent provided in such resolution, except as limited by law. No such committee shall exercise its authority in a manner inconsistent with any action, direction , or instruction of the board.

The board may appoint a chairman of the Executive Committee, the Finance Committee and of any other committee s who shall preside at meetings of the ir respective committees. The board may fill any vacancy in any committee and may designate one or more directors as alternate members of such committee , who may replace any absent member or members at any meeting of such committee. Each such committee shall serve at the pleasure of the board , but in no event beyond the board’s first meeting following the annual meeting of the stockholders .

All acts done and powers conferred by the Executive Committee or other a committee pursuant to the foregoing authorization shall be deemed to be and may be certified as being done or conferred under authority of the board.

A record of the proceedings of the Executive Committee and any other each committee shall be kept and submitted at the next regular meeting of the board.

At least one-third but not less than two of the members of any committee having more than two members shall constitute a quorum for the transaction of business by such committee and the vote of a majority of the members present at the time of the vote, if a quorum is present at such time, shall be the act of the committee. If a committee shall have only two members, a quorum shall not be present for the transaction of business unless both members are present at the time of the vote.

If a committee or the board shall establish regular meetings of any committee, such meetings may be held without notice or upon such notice as the committee may from time to time determine. Notice of the time and place of special meetings of any committee shall be given to each member of the committee in the same manner as in the case of special meetings of the board. Notice of a meeting need not be given to any member of a committee who signs a waiver of notice , whether before or after the meeting, or who attends the meeting without protesting, prior thereto or at its commencement, the lack of notice to him. Except as otherwise provided in these by-laws, each committee shall adopt its own rules of procedure.

COMPENSATION OF DIRECTORS

Section 1. Compensation . . The Directors who are also full-time employees of the corporation shall not receive any compensation for their services as directors but they may be paid their reimbursed for reasonable expenses , if any, of attendance at each meeting of the board of . All other directors and may be paidreceive either an annual fee or a fixed sum fee for each meeting attended, or both, and expenses of attendance at each , if any, at each regular or special meeting of the board of directors or a stated salary as director. No such payment ; provided, that nothing herein contained shall be construed to preclude any director from serving the corporation in any other capacity and receiving compensation therefor. Members of special or standing committees may be allowed such compensation for attending committee meetings , as may be determined by resolution of the board of directors.

Article IV

NOTICES

Section 1. Writing . Notices to directors and stockholders shall be in writing and delivered personally or mailed to the directors or stockholders at their addresses appearing on the books of the corporation. Notice to directors may also be given by telegram.

Section 2. Waiver . Whenever any notice is required to be given under provisions of the statutes or of the certificate of incorporation or of these by-laws, a waiver thereof in writing, signed by the person or persons entitled to said notice, whether before or after the time stated therein, shall be deemed equivalent thereto.

Article V

OFFICERS

Section 1. Officers . The officers of the corporation shall be chosen byconsist of such officers as the board of directors and shall bemay from time to time elect, including without limitations, a Chairman of the Board or , a President or bothChief Executive Officer, a Chief Financial Officer, a Chief Operating Officer, a Chief Merchandising Officer, a Chief Marketing Officer, a Vice Chairman of the Board, a President, a Secretary, a Treasurer and a Controller. The board of directors may also choose a Vice-President or , and such one or more Executive Vice Presidents, Senior Vice - Presidents , and one or more and Vice Presidents with such Vice Presidential designations, if any, as the Board may determine, and such Assistant Vice Presidents, Assistant Secretaries , and Assistant Treasurers . Two as the board of directors may elect. Any two (2) or more of such offices may be held by the same person , except the offices of President and Secretary or President and Assistant Secretary.

Subject to the authority of the board of directors, the Chief Executive Officer is hereby vested with the authority to appoint such other officers and agents and assign such duties as the Chief Executive Officer may deem appropriate from time to time and it is further understood that all such officers and agents serve at discretion of the Chief Executive Officer, and it is understood that the Chief Executive Officer will keep the Board informed of any such appointments and changes at regular board meetings.

Section 2. Election . The board of directors at its first meeting after each annual meeting of stockholders shall choose a President from among the directors, and shall choose a Secretary and a Treasurer, and may choose one or more Vice-Presidents, none of whom need be a member of the board .

Section 3. Other Officers . The board of directors may appoint such other officers and agents as it shall deem necessary who shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the board.

Section 4. Salaries . The salaries of all officers and agents of the corporation shall be fixed by the board of directors.

Section 5. Term . The officers of the corporation shall hold office until their successors are chosen and qualify. Any officer elected or appointed by the board of directors may be removed at any time, with or without cause, by the affirmative vote of a majority of the board of directors. Any officer may resign at any time by giving written notice thereof to the President or to the board, or by retiring or by leaving the employ of the corporation (without being employed by a subsidiary or affiliate) and any such action shall take effect as a resignation without necessity of further action. Any vacancy occurring in any office of the corporation shall be filled by the board of directors.

THE PRESIDENT

Section 6. President. Duties . The Unless otherwise determined by the board of directors, the President shall be the chief executive officer of the corporation, shall preside at all meetings of the stockholders and the board of directors , shall have general and active management of the business of the corporation and shall see that all orders and resolutions of the board of directors are carried into effect. He shall be ex officio a member of all standing committees and, in In the absence of the Chairman and the Vice Chairman of the Board, the President shall preside at all meetings of the board of stockholders and directors. Except as otherwise provided by these by-laws or any statute or regulation, the President shall have the authority to assign duties to other officers, employees and agents of the corporation, including the authority to designate other officers to execute instruments on behalf of the corporation without obtaining a resolution therefor from the board of directors. Section 7. Powers . He The President shall execute bonds, mortgages and other contracts requiring a seal, under the seal of the corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be expressly delegated by the board of directors to some other officer or agent of the corporation. The President shall have such other powers as the board of directors may from time to time prescribe.

THE VICE-PRESIDENTS

Section 8. Duties

Section 7. Vice Presidents . The Vice - President, or if there shall be more than one, the Vice - Presidents, in the order determined by the board of directors, shall, in the absence or disability of the President, perform the duties and exercise the powers of the President and shall perform such other duties and have such other powers as the board of directors may from time to time prescribe.

THE SECRETARY AND ASSISTANT SECRETARIES

Section 9

Section 8. Secretary . Duties . The Secretary shall attend all meetings of the board of directors and all meetings of the stockholders and record all the proceedings of the meetings of the corporation and of the board of directors in a book to be kept for that purpose and shall perform like duties for the standing committees when required. He The Secretary shall have charge of the record of stockholders required by law, which may be kept by any transfer agent or agents under his direction. He The Secretary shall give, or cause to be given, notice of all meetings of the stockholders and special meetings of the board of directors , and shall perform such other duties as may be prescribed by the board of directors or President , under whose supervision he the Secretary shall be. He The Secretary shall keep in safe custody the seal of the corporation and, when authorized by the board of directors, affix the same to any instrument requiring it and, when so affixed, it shall be attested by his signature or by the signature of an Assistant Secretary.

Section 9. Section 10. Assistant Secretaries . The Assistant Secretary, or if there shall be more than one, the Assistant Secretaries in the order determined by the board of directors, shall, in the absence or disability of the Secretary, perform the duties and exercise the powers of the Secretary and shall perform such other duties and have such other powers as the board of directors may from time to time prescribe.

THE TREASURER AND ASSISTANT TREASURERS

Section 11

Section 10. Treasurer . Duties . The treasurer Treasurer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the corporation and shall deposit all moneys and other valuable effects in the name and to the credit of the corporation in such depositories as may be designated by the board of directors. Section 12. Disbursement . He The Treasurer shall perform such other duties and have such other powers as the board of directors may from time to time prescribe. The Treasurer shall disburse the funds of the corporation as may be ordered by the board of directors, taking proper vouchers for such disbursements, and shall render to the President and the board of directors, at its regular meetings, or when the board of directors so require requires , an account of all his transactions as Treasurer and of the financial condition of the corporation.

Section 13. Bond . If required by the board of directors, he shall give the corporation a bond (which shall be renewed every six years) in such sum and with such surety or sureties as shall be satisfactory to the board of directors for the faithful performance of the duties of his office and for the restoration to the corporation, in case of his death, resignation, retirement or removal from office, of all books, papers, vouchers, money and other property of whatever kind in his possession or under his control belong to the corporation.

Section 14.

Section 11. Assistant Treasurers . The Assistant Treasurer, or if there shall be more than one, the Assistant Treasurers in the order determined by the board of directors, shall, in the absence or disability of the Treasurer, perform the duties and exercise the powers of the Treasurer and shall perform such other duties and have such other powers as the board of directors may from time to time prescribe.

CONTROLLER

Section 15

Section 12. Controller . Duties . The Controller shall , unless otherwise designated by the board of directors, be the chief accounting officer of the corporation and shall have control of all its books of account. He The Controller shall see that correct and complete books and records of account are kept as required by law, showing fully, in such form as he Controller shall prescribe, all transactions of the corporation, and he the Controller shall require, keep and preserve all vouchers relating thereto for such period as may be necessary. The Controller shall render periodically such financial statements and such other reports relating to the corporation’s business as may be required by the President or the board. He The Controller shall generally perform all duties appertaining pertaining to the office of controller of a corporation.

OFFICIALS AND AGENTS

Section 16. Officials and Agents . The President or his delegate may appoint such officials and agents of the corporation as the conduct of its business may require and assign to them such titles, powers, duties and compensation as he shall see fit and may remove or suspend or modify such titles, powers, duties or compensation at any time with or without cause.

Article VI

CERTIFICATES

SHARES OF STOCK

Section 1. Certificates . Every Shares of stock in the corporation may be certificated or uncertificated, as provided under the General Corporation Law of the State of Delaware. Each holder of stock in the corporation , upon written request to the transfer agent or the corporation, shall be entitled to have a certificate , signed by, or in

the name of the corporation by, the President or a Vice - President and the Treasurer or an Assistant Treasurer, or the Secretary or an Assistant Secretary of the corporation, certifying the number of shares owned by him in the corporation. If the corporation shall be authorized to issue more than one class of stock, or more than one series of any class, the designations, preference and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights shall be set forth in full or summarization on the face or the back of the certificate which the corporation shall issue to represent such class or series of stock , or, if uncertificated, in the notice required to be sent to the registered owner thereof in accordance with Delaware law; provided, however, that except as otherwise provided in Section 202 of the General Corporation Law of Delaware, in lieu of the foregoing requirements, there may be set forth on the face or the back of the certificate which the corporation shall issue to represent such class or series of stock, or, in the case of uncertificated stock, in the notice required to be sent to the registered owner thereof, a statement that the corporation will furnish without charge to each stockholder who so requests , a copy of the designations, preferences and relative, participating, option or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights.

Section 1. Facsimile Signatures . Where a certificate is signed (1) by a transfer agent or an assistant transfer agent or (2) by a transfer clerk acting on behalf of the corporation and a registrar, the signature of any such President, Vice - President, Treasurer, Assistant Treasurer, Secretary or Assistant Secretary may be facsimile. In case any officer or officers who have signed or whose facsimile signature or signatures have been used on any such certificate or certificates shall cease to be such officer or officers of the corporation, whether because of death, resignation or otherwise, before such certificate or certificates have been delivered by the corporation, such certificate or certificates may nevertheless be adopted by the corporation and be issued and delivered as though the person or persons who signed such certificate or certificates or whose facsimile signature or signatures have been used thereon had not ceased to be such officer or officers of the corporation.

Section 2. Lost Certificate . The board of directors may direct a new certificate or certificates to be issued in place of any certificate or certificates theretofore issued by the corporation alleged to have been lost or destroyed, upon the making of an affidavit of the fact by the person claiming the certificate of stock to be lost or destroyed. When authorizing such issue of a new certificate or certificates, the board of directors may, in its discretion and as a condition precedent to the issuance thereof, require the owner of such lost or destroyed certificate or certificates, or his legal representative, to advertise the same in such manner as it shall require and/or to give the corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the corporation with respect to the certificate alleged to have been lost or destroyed.

Section 3. Transfers of Stock . Upon surrender to the corporation or the transfer agent of the corporation of a certificate for shares duly endorsed or accompanied by proper evidence of succession, assignment or authority to transfer, it shall be the duty of the corporation to issue a new certificate to the person entitled thereto, cancel the old certificate and record the transaction upon its books . Upon a transfer of uncertificated shares of stock, the record of such person’s stock shall be cancelled and shares shall be transferred to the person entitled thereto upon the issuance of a certificate or an electronic transfer of such shares. A record shall be made of each transfer and whenever a transfer shall be made for collateral security, and not absolutely, it shall be so expressed in the entry of the transfer.

Section 4. Closing of Transfer Books . The board of directors may close the stock transfer books of the corporation for a period not exceeding fifty sixty (60) days preceding the date of any meeting of stockholders , or the date for payment of any dividend , or the date for the allotment of rights , or the date when any change or conversion or exchange of capital stock shall go into effect , or for a period of not exceeding fiftysixty (60) days in connection with obtaining the consent of stockholders for any purpose. In lieu of closing the stock transfer books as aforesaid, the board of directors may fix in advance a date, not exceeding fifty sixty (60) days preceding the date of any meeting of stockholders, or the date for the payment of any dividend, or the date for the allotment of rights, or the date when any change or conversion or exchange of capital stock shall go into effect, or a date in connection with obtaining such consent, as a record date for the determination of the stockholders entitled to notice of , and to vote at , any such meeting, and any adjournment thereof, or entitled to receive payment of any such dividend, or to any such allotment of rights, or to exercise the rights in respect of any such change, conversion or exchange of capital stock, or to give such consent, and in such case such stockholders and only such stockholders as shall be

stockholders of record on the date so fixed shall be entitled to such notice of and to vote at such meeting and any adjournment thereof , or to receive payment of such dividend, or to receive such allotment of rights, or to exercise such rights, or to give such consent, as the case may be , notwithstanding any transfer of any stock on the books of the corporation after any such record date fixed as aforesaid.

Section 5. Registered Stockholders . The corporation shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends, and to vote as such owner, and to hold liable for calls and assessments a person registered on its books as the owner of shares, and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of Delaware.

Article VII

RIGHT OF FIRST REFUSAL ON ESOP STOCK

All shares of stock of the corporation distributed by The Cato Corporation Employee Stock Ownership Trust (the “ Trust ”) shall be subject to a right of first refusal as follows:

Prior to any transfer of any such shares to a prospective third party transferee by the holder of the shares, those shares must first be offered for sale by written offer made concurrently to the Trust and to the corporation upon the same terms and at the same price as offered by or to the prospective third party transferee. Any such offer to the Trust and the corporation shall disclose the name of the prospective third party transferee and the price and terms offered by or to the transferee. The corporation shall have the first right to purchase all or part of the shares; to the extent the corporation shall not accept the offer to sell, the Trust may purchase all or part of the remaining shares. An acceptance by the corporation or the Trust of any such offer must be made in writing within 60 days following receipt of the offer by the corporation.

If the offer is not accepted by the corporation, the Trust, or both, then the proposed transfer may be completed within 6 months following receipt of the offer by the corporation, but only to the same prospective third party transferee and only upon the same terms and at the same price as originally offered to or by that prospective third party transferee. If the transfer is not completed within 6 months as described, the holder of the shares must comply once again with the procedures described in this Article VII before making any transfer of the shares.

The right provided in this Article VII shall apply to all shares distributed by the Trust, whether such shares are held by a participant in the Employee Stock Ownership Plan, his beneficiary or other person to whom such shares may have been distributed by the Trustee (or by any transferee or successor transferee of any of the foregoing unless the Trust and the corporation had failed to exercise any earlier right of first refusal with respect to such shares and such shares had been transferred to the prospective transferee in accordance with this Article VII). Unless the corporation shall waive its rights hereunder, a suitable legend regarding this right of first refusal shall be printed on each share certificate subject to such right, and the board of directors of the corporation may provide from time to time for such reasonable rules designed to facilitate the administration of such right as it shall deem appropriate.

The corporation and the Trust may in any instance waive the right of refusal granted to the corporation or the Trust by this Article VII. Any such waiver shall be made by a resolution of the board of directors directing that the legend referred to above shall not be included on any share certificates to be distributed by the Trust, and any such shares to which such direction applies shall thereafter be free forever of the first right of refusal contained in this Article VII.

Article VIII

GENERAL PROVISIONS

Section 1. Dividends . Dividends upon the capital stock of the corporation, subject to the provisions of the certificate of incorporation, if any, may be declared by the board of directors at any regular or special meeting, pursuant to law. Dividends may be paid in cash, in property, or in shares of the capital stock, subject to the provisions of the certificate of incorporation.

Section 2. Reserves . Before payment of any dividend, there may be set aside out of any funds of the corporation available for dividends such sum or sums as the directors from time to time, in their absolute discretion, think proper as a reserve or reserves to meet contingencies, or for equalizing dividends, or for repairing or maintaining any property of the corporation, or for such other purpose as the directors shall think conducive to the interest of the corporation, and the directors may modify or abolish any such reserve in the manner in which it was created.

Section 3. Annual Statement . The board of directors shall present at each annual meeting, and at any special meeting of the stockholders when called for by vote of the stockholders, full and clear statement of the business and condition of the corporation.

Section 4. Checks . All checks or demands for money and notes of the corporation shall be signed by such officer or officers or such other person or persons as the board of directors may from time to time designate.

Section 5. Fiscal Year . The fiscal year of the corporation shall end on the last Saturday closest to the last day in January of each year.

Section 6. Seal . The corporate seal of the corporation shall consist of two concentric circles between which is the name of the corporation and in the center of which is inscribed SEAL. The seal may be used by causing it or a facsimile thereof to be impressed or affixed or reproduced or otherwise.

Article IX

AMENDMENTS

Section 1. Amendments . These by-laws may be altered or repealed at any regular meeting of the stockholders or the board of directors or at any special meeting of the stockholders or of the board of directors if notice of such alteration or repeal be contained in the notice of such special meeting . Subject to the provisions of the certificate of incorporation of the corporation, the board of directors may adopt, amend or repeal the by-laws. The stockholders shall also have the power to adopt, amend or repeal the by-laws; provided, however, that, in addition to any vote of the holders of any class or series of stock of the corporation required by law or by the certificate of incorporation, such action by stockholders shall require the affirmative vote of the holders of at least a majority of the voting power of all of the then-outstanding shares of the capital stock of the corporation entitled to vote generally in the election of directors, voting together as a single class.

CLASS A C O MM O N STOCK

TH E CAT O CORPORATION

T HI S P ROX Y I S SOLICI T E D O N BEHA LF O F T H E BOAR D O F DIR E CTORS

Th e undersigne d hereb y appoint s Joh n P . D . Cat o a n d Christi n J. Reische , an d eac h o f t hem , w it h full powe r of substitution , attorney s an d proxie s t o appea r a n d vot e , as i ndicated on the rever s e s ide of t h is card, all o f t h e s hare s o f Clas s A Commo n S toc k of Th e Cat o Corporatio n t hat the undersigned would be e ntitled to vot e a t th e Annua l Meetin g o f Shareholder s of Th e Cat o Corporatio n t o be hel d o n Ma y 21 , 202 0 an d a t a ny and all adjournments thereof. The Board recommends a vote FOR t he following items:

PLEASE M ARK, S I G N AND DATE T H IS PR O XY AND RETURN IT PROMPTLY S O A S T O IN SU RE A Q U O R U M A T T HE M EE TI NG . T H IS I S IM PO R T A N T W H E T H E R Y O U O WN FE W O R MAN Y SHAR E S . D ELA Y I N R ETURNIN G YOU R PROX Y M A Y SUBJ E C T TH E C OMPAN Y TO ADDITI O NAL EXPENSE.

(Continue d an d t o b e sig ned on the rever s e side.)

ANNUAL MEETING O F SHAREH O LDERS O F

THE CATO CORPORATION

May 21, 2020

CLASS A C O MM O N STOCK

G O GREEN

e-Conse n t makes it e a sy to go pape r less. With e -Consent, you c a n q u ickly a c cess your proxy materi a l, statem e nts and other el i gible do c uments on l ine, while r e ducing c o sts, c lutter a n d paper waste. Enr o ll today via www.astfinanc i al.com to enjoy online access.

NOTICE OF INTERNET AVAIL A BILITY OF PROXY MATERIAL :

Th e Notic e o f Meetin g, p ro xy statemen t an d p r o x y card ar e availabl e a t www.cato f ashions.com/in f o/ p r o xy.c fm

Please sign, date and mail your vote authorization form in the envelope provided as soon as possible.

↓ Pleas e detac h alon g perforate d lin e an d mai l i n th e envel o p e p r o vided. ↓

TH E B O AR D O F DI R ECTOR S RECOMM E ND S A VOT E "FOR " TH E ELECTIO N O F DIRECTOR S AND " FOR" PROPOS A L S 2, 3, 4, 5 AND 6.

PLEASE SIGN, DA T E AND RETURN PRO M PTLY IN THE ENCLOS E D ENV E LOPE. PLEAS E MAR K YOU R VOT E I N BLU E O R BLAC K IN K A S SHOWN HER E ☒

ELECTI O N OF DIREC T ORS:

NOMI N EES:

To approve the C o mpany’s Amended and R e stated Certi f icate of Incorpo r ation to provide the B o ard the

FOR AGAINST A B S TAIN

☐ ☐ ☐

FO R AL L NOMINEE S ◯ Pa m ela L . Davies

◯ T h omas B. H enson

◯ Br y an F. K e nnedy, III

WITH H OLD A UTHORITY

FO R AL L NOMINEES

FO R AL L EXCEPT

(See instruc t ions be l ow)

power to adopt, amend or repeal the C ompan y ’s B y- Laws , a s a mende d ( t h e “ Bylaws”) , alon g wit h c e r tain tech n ical c hanges, to align with a m ajority of p ublic com p anies;

To rati f y t h e B oard’s previo u s ly adopted amen d ments t o th e Bylaws , includ i ng:

INSTRUCTIONS : To withhold auth o rity to vote for any individual nom i nee(s), mark “FOR A L L E XC E P T ” and fill in the cir c le next t o each nomin e e you wish to w ithhold, as shown here ⚫

a. To vest the C hair m an and Ch i ef Exec u tive Offic e r with a u tho r ity to appoint ot h er offi c ers and reassign duties, s i m ilar t o many public comp a nies (a d opted o n Janu a ry 28, 19 9 3);

b. T o a u thorize the Company to issue unc e rtificated s ha r es, as required by New Y o rk Stock Exch a nge r u le (a d opted o n Dec e mber 6, 2007); and

c. T o ch a nge the m aximum days in advance of a s tockholder me e t i ng, divid e nd pay m ent or oth e r ev e nts t h at a reco r d da t e m a y be s et from not more than fi f ty ( 5 0) days in advance to not m o re th a n s ixty (60) days in a dvance, in accord a nce w ith Dela w are l a w (a d opted o n Feb r uary 2 6 , 2009).

To approve the C ompany’s Amended and Restated Byla w s ;

To change the a ddress on your a c count, p l ease check the b ox at right and indicate your new ad d ress in the ad d ress space ab o ve. P l e ase note that chan g es to the registered name(s) on the acc o unt may not b e submitte d vi a thi s m e t hod.

T o a pprove , o n a n a d v isor y basis , t h e C ompany’s exe c utive c ompensation;

□ 6 . To ratify the selec t ion of P ricewate r houseCoopers LLP as the C o m pany’s indep e ndent registe r ed public acc o unting firm for the fisc a l year ending Janu a ry 30, 2021.

7 . To co n sider and act upon such oth e r business as m a y properly c o me before t he Annu a l Mee t ing or any adjourn m ent th e reof.

T HIS PRO X Y WHEN PROPER L Y E XECUT E D WILL BE VOTED I N THE M ANNE R DIRECTE D H ER E I N B Y TH E U N D ERSIGNE D SHARE H O LDER . IF N O DI R ECTION IS M A DE, T HIS PROXY WILL BE VOTED "FOR" P R OPOSAL S 2 , 3, 4 , 5, 6 AN D " F OR " EL E CTIO N O F A L L NO M INEE S F OR D I RECTOR.

T HE UNDE R S IGNED H E REBY ACK N OWLEDGES RECEIPT OF T HE A CCOMPA N YING NOTICE OF ANNUAL MEETING A ND PROXY STATEMENT A ND REVO K E S ALL PROXIES HERETOFO R E GIVEN B Y THE U NDERSIGNED.

Signature of Shareholder D a te: Signature of Sharehold e r D at e :

N ote:

P lease sign exactly as your n a me or names appe a r o n t his P roxy. W h en shares are held joint l y, each hol d er should sign. When s ignin g a s e x e cutor, a dministrato r , attorney, t rustee or g uardian, pl e ase gi v e fu l l title as such. I f t h e s ig n er is a corpo r ation, please sign full cor p orate name by duly authorized o fficer, givi n g full title as s u ch. If s i gner i s a partnershi p , please sign in partn e rship n a me by autho r ized p erson.

ANNUAL MEETING O F SHAREH O LDERS O F

THE CATO CORPORATION

May 21, 2020

CLASS A C O MM O N STOCK

PROX Y VO T IN G INSTRUC T IONS

INTERN ET - Access “ w w w.vo t epr o x y .c o m ” an d follo w the o n - s c r ee n ins t ruc t io ns o r s ca n t he Q R co de w i t h y o ur smartphone . Hav e you r prox y car d availabl e whe n yo u access t h e we b pa g e .

T ELEPHON E - Cal l t ol l -fre e 1 - 8 0 0-P R OXIE S ( 1 - 8 00 - 7 7 6-

9 4 3 7 ) in th e U nite d S ta t es or 1 - 7 1 8 - 92 1 -8 5 0 0 f r om f ore i gn c o un t r i e s f r o m an y t o uch - t o n e te l eph o n e a nd f o l lo w the i nst r uct i ons . H av e yo ur p r o xy car d availabl e whe n yo u call.

Vot e o nl i ne/ p ho ne u nt il 1 1 :5 9 PM E ST t h e da y b efo re th e meeting.

M A IL - Sig n, dat e an d mai l y o u r p r ox y car d i n t he en v e l ope p r o vi ded as s o on as p os s i ble .

IN PERS O N - Yo u ma y v o t e y ou r s ha r e s i n p erso n by attendin g th e Annua l Meeting.

GO GREE N - e-C o nsen t make s i t eas y to go p aper l ess . W ith e-Consent , yo u ca n q uickl y acces s you r p rox y m ateri a l, st ate m e n t s a nd o the r eli g ib le d o cu m ent s o nl i ne , wh i l e r educ i n g costs , clutte r an d pape r waste . Enrol l to d a y via www.astfinancial.co m t o enjo y onlin e access.

COMPANY NUMBER ACCOUN T NUM B E R

NOTICE OF INTERNET AVAIL A BILITY OF PROXY MATERIAL :

Th e Notic e o f Meetin g, p ro xy statemen t an d p r o x y card

a re avail a ble at www.catof a sh i o n s.com/ i n f o/i n vestor-relations

↓ Please detach along perforat e d line and mail in t h e env e lope p r ovided IF you are not voting via t e lephone or t h e Int e rnet. ↓

TH E B O AR D O F DI R ECTOR S RECOMM E ND S A VOT E "FOR " TH E ELECTIO N O F DIRECTOR S AND " FOR" PROPOS A L S 2, 3, 4, 5 AND 6.

PLEASE SIGN, DA T E AND RETURN PRO M PTLY IN THE ENCLOS E D ENV E LOPE. PLEAS E MAR K YOU R VOT E I N BLU E O R BLAC K IN K A S SHOWN HER E ☒

ELECTI O N OF DIREC T ORS:

NOMI N EES:

To approve the C o mpany’s Amended and R e stated Certi f icate of Incorpo r ation to provide the B o ard the

FOR AGAINST A B S TAIN

☐ ☐ ☐

FO R AL L NOMINEE S ◯ Pa m ela L . Davies

◯ T h omas B. H enson

◯ Br y an F. K e nnedy, III

WITH H OLD A UTHORITY

FO R AL L NOMINEES

FO R AL L EXCEPT

(See instruc t ions be l ow)

power to adopt, amend or repeal the C ompan y ’s B y- Laws , a s a mende d ( t h e “ Bylaws”) , alon g wit h c e r tain tech n ical c hanges, to align with a m ajority of p ublic com p anies;

To rati f y t h e B oard’s previo u s ly adopted amen d ments t o th e Bylaws , includ i ng:

a. To vest the C hair m an and Ch i ef Exec u tive Offic e r with a u tho r ity to appoint ot h er offi c ers and reassign duties, s i m ilar t o many public comp a nies (a d opted o n Janu a ry 28, 19 9 3);

b. T o a u thorize the Company to issue unc e rtificated s ha r es, as required by New Y o rk Stock Exch a nge r u le (a d opted o n Dec e mber 6, 2007); and

c. T o ch a nge the m aximum days in advance of a s tockholder me e t i ng, divid e nd pay m ent or oth e r ev e nts t h at a reco r d da t e m a y be s et from not more than fi f ty ( 5 0) days in advance to not m o re th a n s ixty (60) days in a dvance, in accord a nce w ith Dela w are l a w (a d opted o n Feb r uary 2 6 , 2009).

To approve the C ompany’s Amended and Restated Byla w s ;

T o a pprove , o n a n a d v isor y basis , t h e C ompany’s exe c utive c ompensation;

☐

To ratify the selec t ion of P ricewate r houseCoopers LLP

as the C o m pany’s indep e ndent registe r ed public acc o unting firm for the fisc a l year ending Janu a ry 30, 2021.

To co n sider and act upon such oth e r business as m a y properly c o me before t he Annu a l Mee t ing or any adjourn m ent th e reof.

T HIS PRO X Y WHEN PROPER L Y E XECUT E D WILL BE VOTED I N THE M ANNE R DIRECTE D H ER E I N B Y TH E U N D ERSIGNE D SHARE H O LDER . IF

N O DI R ECTION IS M A DE, T HIS PROXY WILL BE VOTED "FOR" P R OPOSAL S 2 , 3, 4 , 5, 6 AN D " F OR " EL E CTIO N O F A L L NO M INEE S F OR D I RECTOR.

Signature of Shareholder D a te: Signature of Sharehold e r D at e :

N ote: P lease sign exactly as your n a me or names appe a r o n t his P roxy. W h en shares are held joint l y, each hol d er should sign. When s ignin g a s e x e cutor, a dministrato r , attorney, t rustee or g uardian, pl e ase gi v e fu l l title as such. I f t h e s ig n er is a corpo r ation, please sign full cor p orate name by duly authorized o fficer, givi n g full title as s u ch. If s i gner i s a partnershi p , please sign in partn e rship n a me by autho r ized p erson.

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